Executive Summary:
This Public Notice amends Para 10.12D of the Handbook of Procedures 2023, introducing a revised procedure for General Authorization for Export after Repair (GAER) of SCOMET items. It allows for a one-time GAER for exporting repaired SCOMET items to related entities and the repair supply chain in foreign countries, subject to post-reporting requirements. The authorization is valid for one year from the date of issue, with quarterly post-reporting due by the end of the subsequent month of each quarter.
Key Points / Main Content:
* **General Authorization for Export after Repair (GAER):**
* A one-time GAER is permitted for export of repaired imported SCOMET items to related entities and the repair supply chain in a foreign country.
* "Related entities" are defined as a direct subsidiary, foreign parent of the Indian company, or another subsidiary of the foreign parent.
* "Repair supply chain" includes authorized vendors and Original Equipment Manufacturers (OEM) with Master Service Agreements or Electronic Manufacturer Service agreements with the Indian company.
* **Conditions for GAER:**
* The SCOMET items must have been imported to an authorized repair facility in India under a contract agreement, Master Service Agreement, or Electronic Manufacturer Agreement.
* Re-export is limited to related entities and the repair supply chain in the foreign country.
* Exporters must register and obtain GAER once during the validity period, with subsequent exports subject to post-reporting.
* A Bill of Entry for the imported item is required when applying for GAER for the first shipment.
* GAER is valid for one year, subject to quarterly post-reporting within 30 days of export.
* Subsequent exports are allowed to the same entity and location.
* There should be no change to the original characteristics/specifications of the SCOMET items after repair, and no value addition.
* No Export Authorisation will be granted when the initial export authorisation has been suspended, modified or revoked by country of import; No Export authorisation will be granted for UNSC sanctioned destinations or countriesentities of high risk
* No details of End Use and End Use Certificate would be required
* GAER issued for specific item and specific entity buyerend user shall not be applicable in case the reexport is of a different imported item or to a different entity or Authorised OEM
* **Compliance Requirements:**
* Certified/approved Internal Compliance Programme (ICP) or demonstration of compliance to the ICP of the foreign company is mandatory for intracompany transfers.
* Authorized Economic Operator (AEO) Certification along with ICP compliance is mandatory for re-export to vendors/OEMs.
* **Required Documents for GAER:**
* Proof of import of items (Bill of Entry).
* Export Authorisation if applicable issued by the foreign country for original import of the items to India
* Documentary proof andor selfdeclaration that the item exempted from license requirement or place under no license requirement for India.
* Proof of obligation for repair (contract agreement, Statement of Work, Master Service Agreement).
* Undertaking from the Indian exporter with specific details and declarations.
* **Post-Reporting Requirements:**
* Indian exporters must submit post-shipment details quarterly to the SCOMET Division of DGFT HQ via email, including Bill of Entry (where available) and shipping bill details.
* Failure to submit reports may result in penalties, suspension, or revocation of GAER.
* **DGFT's Authority:**
* DGFT reserves the right to deny or recall GAER due to non-compliance or security concerns.
* **IMWG Review:**
* Authorizations will be brought before the IMWG for confirmation of approval on an ex-post facto basis.
Impact Analysis
* Indian Exporters of Repaired SCOMET Items:
* Impact: Benefits from a simplified export process with a one-time authorization, reducing the need for frequent approvals.
* Action Required: Register for GAER, comply with post-reporting requirements, ensure adherence to all conditions and maintain necessary documentation and compliance programs (ICP, AEO).
* Directorate General of Foreign Trade (DGFT):
* Impact: Responsible for implementing and monitoring the revised GAER procedure.
* Action Required: Process GAER applications, monitor post-reporting submissions, and ensure compliance with the policy.
Key Entities Referenced
Directorate General of Foreign Trade: The issuing authority for the public notice, responsible for foreign trade policy.
Foreign Trade Policy 2023: The governing policy document that provides the legal basis for the public notice.
Handbook of Procedures 2023: A supplementary document to the Foreign Trade Policy 2023, providing detailed procedures.
General Authorization for Export after Repair (GAER): A scheme that allows for the export of repaired SCOMET items under a general authorization, subject to certain conditions.
SCOMET: Special Chemicals, Organisms, Materials, Equipment and Technologies. Items whose export is regulated.
Internal Compliance Programme (ICP): A program required for certain exporters, demonstrating compliance with export regulations.
Authorized Economic Operator (AEO): An operator certified by customs for compliance and security standards.
New Delhi, Delhi: Location of Vanijya Bhawan, the office of the Directorate General of Foreign Trade.
(To be published in the Gazette of India Extraordinary Part-I, Section-l)
Government of India
Ministry of Commerce & Industry
Department of Commerce
Directorate General of Foreign Trade
Vanijya Bhawan, New Delhi
Public Notice No. 50/2024- 2025
LO March 2025
Subject:- Amendment to Para 10.12(D) of the Handbook of Procedures 2023 — Revised
Procedure for General Authorization for Export after Repair (GAER)
S.O(E) : In exercise of the powers conferred under Paragraphs 1.03 and 2.04 of the Foreign
Trade Policy 2023, as amended from time to time, the Director General of Foreign Trade
hereby inserts a new entry at Paragraph 10.12(D) under the Handbook of Procedures(HBP)
2023 with immediate effect.
2. Para 10,12(D) of the HBP 2023 is amended as under:
D. Authorization for export of same imported SCOMET items to Related entities® and
Repair supply chain’ in the foreign country under General Authorization for Export after
Repair(GAER)
Related entities mean Direct subsidiary / Foreign Parent of the Indian Company or another
Subsidiary of the foreign parent of the Indian Company.
‘Repair supply chain means (i) Authorized Vendor (ii) Original Equipment Manufacturer(OEM)
with whom Indian company has a Master Service Agreement/Electronic Manufacturer Service
agreement/Contract Agreement defining conditions of undertaking repair in India.
. Export of imported SCOMET items to the related entities and repair supply chain’ in the
foreign country after repair in India will be allowed on the basis of a one-time General
authorization for Export after Repair in India (GAER) subject to post reporting on quarterly
basis issued by DGFT, subject to the following conditions:
. The SCOMET items were imported to a designated/authorized repair facility in India for the
purpose of repair under a contract agreement/Master Service agreement (MSA)/Electronic
Manufacturer Agreement (EMS); orlmported under a contract agreement between Indian
exporter, entities of repair facility (if different from exporter) and entity abroad defining
‘Statement of Work (SOW)’/ ‘Scope of Work’ including conditions for undertaking repair in
India;. The items are to be re-exported to only related entities® and repair supply chain‘ in the
foreign country.
The exporter is required to register and obtain General authorization for export after repair only
once during the validity period. Subsequent export/re-export is subject to post reporting;
. The exporter is required to provide Bill of Entry for the imported item while applying for GAER
for the first shipment.
. General authorization for export after repair shall be valid for a period of one year from the
date of issue of General authorization subject to subsequent post reporting(s) within 30 days
from the date of such export;
Subsequent export would be allowed to the same entity and location to which the license has
originally been issued. Note: Same entity would imply that (a) foreign buyer (b)
consignee or intermediaries, if any (c) the end user are exactly the same for which
authorisation has been issued to the applicant exporter.
. There has been no change to the original characteristics/specifications of the SCOMET item(s)
after repair and no value addition has been done during the repair work;
. No Export Authorisation would be granted when the initial export authorisation has been
suspended, modified or revoked by country of import;
No Export authorisation would be granted for UNSC sanctioned destinations or
countries/entities of high risk, as assessed by the IMWG, from time to time;
No details of ‘End Use’ and ‘End Use Certificate’ would be required;
GAER issued for specific item and specific entity (buyer/end user) shall not be applicable in
case the re-export is of a different imported item or to a different entity or Authorised OEM. In
such cases, either a new GAER authorization may be applied or application may be filed under
Para 10.12(D) of HBP.
Certified / approved Internal Compliance Programme or demonstrating compliance to
the ICP of the foreign company or ICP certified by the compliance manager of that
company shall be mandatory. [only for intra-company transfers].
. Authorized Economic Operator (AEO) Certification along with ICP compliance shall be
mandatory. [for re-export to vendors/OEMs].
. Documents Required for GAER
1. Proof of import of the item(s):
. Export Authorisation (if applicable) issued by the foreign country for original import of the items
to India;
. Documentary proof and/or self-declaration that the item exempted from license requirement or
place under no license requirement for India.
Bill of Entry (first time)
. Proof of obligation for repair of defective/damaged items:
Contract agreement and/or ‘Statement of Work (SOW)’/ Master Service agreement (MSA)
between Indian exporter and with the entity abroad/Direct subsidiary/Parent of the IndianCompany or another subsidiary of the foreign parent of the Indian Company/Authorised
Vendor/Original Equipment manufacturer having EMS agreement/Master service
agreement/ contract with Indian Company from (which the goods were imported initially)
defining conditions for undertaking repair in India
An Undertaking from the Indian exporter;
An Undertaking from the applicant exporter (on the letter head of the firm duly signed and
stamped by the authorized signatory) stating:
Details of imported items to be exported after repair along with their SCOMET Category /Sub-
category number(s), quantity, item description and ECCN of foreign country (if available) ;
That item(s) are being exported to only related entities? and repair supply chain’ in the
foreign country (Direct subsidiary/Parent of the Indian Company or another Subsidiary
of the foreign parent of the Indian Company/Vendor/Original Equipment manufacturer
having contract with Indian Company) from which it was originally imported for repair and
return purpose.
That there has been no change to the original characteristics/specifications of the item(s) after
import and no value addition has been done during the repair work;
That the repair of defective/damaged items is allowed under the conditions of import or
contractual agreement between Indian exporters and entities from which goods were imported.
That Shipping Bills and Bill of Entry into destination country of subsequent re-exports and any
other information as sought by DGFT shall be submitted to DGFT on quarterly basis.
That items would not use for military applications or to develop, acquire, manufacture,
possess, transport, transfer or use, chemical, biological, nuclear weapons or for missile
capable of delivering such weapons.
Certified/approved Internal Compliance Programme or demonstrating compliance to the
ICP of the foreign company or ICP certified by the compliance manager of that
company. [only for intra-company transfers]
Authorized Economic Operator (AEO) Certification along with ICP compliance. [for re-
export to vendors/OEMs]
Post reporting for re-export of items/software/technology under GAER
i. The Indian exporter shall submit post-shipment details of each transfer/consignment of exports
of SCOMET items/software/technology under GAER to the SCOMET Division of DGFT (HQ),
New Delhi, via e-mail (scomet-dgft@nic.in) ora procedure as prescribed by DGFT, on
quarterly basis (March/June/September/December), by the end of subsequent month of each
quarter, in respect of the exports made in the previous quarter.
i. The post-shipment details shall include submission of Bill of Entry (wherever available),
shipping bill details, valid export license copy within the timelines mentioned above.
Failure to do so may entail imposition of penalty and/or suspension/revocation of GAER and
action as per FT(D&R) Act.Suspension / Revocation
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the prescribed timelines, or for non-compliance with the conditions of this Public Notice.
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done prior to issuance of GAER, in case required.
G. All such authorizations shall be brought before IMWG in its subsequent meeting for
confirmation of approval, on ex-post facto basis.
E G vpf e r ef n o ne e c dc r e ot a d rl uo s rf /A e ut Osth Ei h Ms o f s r orP i azu fab m ttl euii rlo c tn ri epN pf lo o aert i i rE c r ixe e np: -o Ier nP x dt pa i or aa ra f t ug t s ner r da ep SR rh e C p aO1 a 0 i M o. r nE1 e2 T( -( G t D iA) miE etRo e)f am . usH t T hB othP roe i z2 ar r0 te e2 ilv3 oai nt s eh e wdda i s tp herb no qte v i ue i t an is rei t so ea n rm ls ae y n sn pdtd or se e tad a -um rtlt ehio po n ora e rl i tl zt io h e nw e d g
instead .of requiring fresh approvals for each shipment.
’ we
pa aahles
(Santosh Kumar Sarangi)
Director General of Foreign Trade
& Ex-officio Additional Secretary to the Government of India
E-mail: dgft@nic.in
Issued from File No. 01/91/180/1 8/AM-17/EC(S)