**Executive Summary:**
This Public Notice amends the Foreign Trade Policy 2015-20, specifically Paragraph 2.79A of the Handbook of Procedures, concerning the "Stock and Sale" of SCOMET items. The amendment revises the policy's applicability regarding exports from Indian subsidiaries of foreign companies to their foreign parent companies or other subsidiaries. It also allows for repeat order authorizations under the Stock and Sale policy. The changes are effective immediately as of January 17, 2023.
**Key Points / Main Content:**
* **Revised Applicability:**
* The policy now applies to exports from an Indian subsidiary of a foreign company applicant exporter to its foreign parent or another subsidiary of the foreign parent company.
* **Stock and Sale Authorization Conditions:**
* Applications for authorization for bulk export of SCOMET items (excluding specific categories and technology transfers) from an Indian exporter to a foreign entity (stockist) for transfer to end-users will be considered by the IMWG.
* **Stockist Requirements:**
* A stockist is a foreign entity to whom SCOMET items are initially exported by an Indian principal/wholly-owned subsidiary.
* The stockist should be a subsidiary/principal company abroad of the Indian exporter.
* **Application Procedure:**
* Exporters must submit an application in the prescribed format (ANF2O) with required documents from the stockist, including proof of corporate relationship, End-Use/End-User Certificate (EUC), list of countries for export, purchase orders/invoices, technical specifications, and Internal Compliance Program copy (if available).
* **Re-export and Transfer Conditions:**
* No authorization is needed for transfers from the stockist to end-users within the stockist's country and for re-export to approved countries.
* Re-exports to approved countries are subject to the export control regulations of the stockist's country.
* Transfers within an economic or customs union do not qualify as same-country transfers.
* **Post-Reporting Requirements:**
* For same-country transfers and re-exports to pre-approved countries, the Indian exporter must submit details of transfers, including EUCs, to the SCOMET Division of DGFT Hqrs within 3 months.
* **Re-export to Other Countries (Not Pre-approved):**
* For re-exports to countries not initially approved, the Indian exporter must apply to the DGFT Hqrs with specific documents from the stockist, including EUCs and technical specifications (if value added).
* **Repeat Orders:**
* Applications for repeat exports of the same SCOMET items to the same stockist and re-exports to approved end-users and countries will be considered by the Chairman of IMWG without consulting IMWG members.
* **Annual Reporting:**
* The Indian exporter must submit a statement of exports, transfers, and inventory by January 31st of the following year. Failure may result in penalties or authorization cancellation.
* **Validity and Revalidation:**
* Items exported under the authorization must be transferred to end-users within the authorization's validity period.
* Authorization can be revalidated as per the procedure in paragraph 2.80 of HBP.
**Impact Analysis:**
**Indian Exporters:**
* *Impact:* Revised policy expands opportunities for exports through foreign subsidiaries and streamlines the process for repeat orders.
* *Action Required:* Understand the revised applicability criteria, application procedures, and reporting requirements. Ensure compliance with the new regulations to avoid penalties.
**Foreign Stockists:**
* *Impact:* Policy clarifies the conditions under which they can receive and transfer SCOMET items, including re-export permissions.
* *Action Required:* Provide required documentation to Indian exporters for authorization applications and comply with local export control regulations for re-exports.
**Directorate General of Foreign Trade (DGFT):**
* *Impact:* Responsible for implementing and overseeing the amended policy.
* *Action Required:* Process authorization applications, monitor compliance, and enforce penalties for non-compliance.
Key Entities Referenced
Foreign Trade Policy 2015-20: A trade policy document referenced in the notification, governing foreign trade regulations.
Handbook of Procedures: A document providing detailed procedures related to the Foreign Trade Policy 2015-20.
DGFT: Directorate General of Foreign Trade, the organization issuing the notification and responsible for foreign trade regulations.
SCOMET: Special Chemicals, Organisms, Materials, Equipment and Technologies, relating to items that may be used for both civilian and military purposes. Policy amendments are regarding export of SCOMET items.
IMWG: Inter-Ministerial Working Group, a committee involved in considering applications for export authorizations of SCOMET items.
Santosh Kumar Sarangi: Director General of Foreign Trade, and Ex-Officio Additional Secretary, the signatory of the public notice.
New Delhi: The city where the notification was issued.
Appendix 2S: Reference to a section in the Handbook of Procedures related to End Use Certificate (EUC) requirements.
रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99
सी.जी.-डी.एल.-अ.-17012023-242028
xxxGIDHxxx
CG-DL-E-17012023-242028
xxxGIDExxx
असाधारण
EXTRAORDINARY
भाग I—खण्ड 1
PART I—Section 1
प्राजधकार स ेप्रकाजित
PUBLISHED BY AUTHORITY
स.ं 21] नई दिल्ली, मगं लवार, िनवरी 17, 2023/पौष 27, 1944
No. 21] NEW DELHI, TUESDAY, JANUARY 17, 2023/PAUSHA 27, 1944
ubZ fnYyh] 17 tuojh] 2023
.—fon's k O;kikj uhfr] 2015&2020 ds iSjk 1-03 ds rgr iznÙk
'kfDRk;ks a dk iz;ksx djrs gq,] egkfuns'kd] fons'k O;kikj ,rn~}kjk fon's k O;kikj uhfr ¼,QVhih½ 2015&20 dh izfØ;k iqLrd
¼,pchih½ ds iSjkxzkQ 2-79d ¼HkaMkj.k ,oa fcØh½ es a rRdky izHkko ls fuEufyf[kr la'kks/ku djrs gSaA
2- fon's k O;kikj uhfr ¼,QVhih½ 2015&20 dh izfØ;k iqLrd ¼,pchih½ ds iSjkxzkQ 2-79d dks izfrLFkkfir dj fuEukulq kj
i<k+ tk,xk%&
LdksesV enks a ¼Js.kh 0] Js.kh 3d 4001] Js.kh 6 vkSj fdlh Js.kh ds rgr izks|ksfxdh ds varj.k dk s NksM+dj½ dk s
Hkkjrh; fu;kZr ls fons'k fLFkr fdlh bdkbZ ¼ftls blds Ik'pkr~ ^^LVkWfdLV^ dgk tk,xk½ dks cYd fu;kZr dju s vkSj
rRi'pkr ~ vafre okLrfod iz;ksDrk dk s bls gLrkarfjr dju s ds fy, izkf/kdkj i= eatwj dju s ds fy, vkosnu ij
fuEufyf[kr “krksZa ds rgr vkbZ,eMCY;wth }kjk fopkj fd;k tk,xk%
411 GI/2023 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART I—SEC.1]
d- ^^LVkWfdLV^ fons'k eas ,slh bdkbZ dk s lanfHkZr djrk gS ftlds fy, LdksesV en ewy #i ls Hkkjr dh iz/kku@iw.kZ
LokfeRo okyh lgk;d dEiuh }kjk fu;kZr fd, tkr s gSaA LVkWfdLV bdkbZ dks Hkkjrh; fu;kZrd dh fons'k eas fLFkr
,d lgk;d@iz/kku dEiuh gksuk pkfg,(
[k- fu;kZr dh vuqefr Hkkjrh; eyw daiuh ¼vkosnd fu;kZrd½ ls mldh fon's kh lgk;d daiuh dk s ;k fon's kh daiuh
¼vkosnd fu;kZrd½ dh Hkkjrh; lgk;d daiuh ls mldh fon's kh eyw daiuh@fons'kh eyw daiuh dh vU; lgk;d
daiuh dk s vkSj LVkWfdLV ls] HkaMkj.k ,oa fcØh mís'; ds fy, fufnZ"V vafre mi;ksxdrkZ çek.ki= ¼bZ;wlh½ ds ek/;e
ls vafre mi;ksx ?kks"k.kk ds vk/kkj ij nh tk,xh
d- vkSj [k- mijksä dqN ekeyks a eas] en ds fooj.k@vafre mi;ksx@vafre mi;ksxdrkZ ij fopkj djr s gq,
vkbZ,eMC;wth çko/kkuks a eas NwV n s ldrk gSA
x- fu;kZrd LVkWfdLV ls fuEufyf[kr nLrkostks a ds lkFk fu/kkZfjr izi= ¼,,u,Q&2.k½ es a vkosnu izLrqr djsxk(
i. Hkkjrh; fu;kZrd vkSj LVkWfdLV ds chp dkWjiksjsV laca/k ds laca/k eas nLrkosth izek.k(
ii. ifjf'k’V 2/k ¼iii½ es a fons'k fLFkr LVkWfdLV bdkbZ ls okLrfod&iz;ksx@okLrfod iz;ksDrk izek.ki=(
iii. ns'kks a ¼bZ;wlh esa½ dh lwph ftlds fy, Hkkjr ls vk;kfrr enks a dks LVkWfdLV }kjk fu;kZr fd;k tk,xk(
iv. [kjhn vkns'k ¼vkn's kks½a@chtd ¼chtdka½s vFkok blds ,ot es a nLrkost(
v. mRikn ¼mRiknks½a dk rduhdh fofunsZ'ku(
vi. vkUrfjd vuqikyu dk;ZØe dh izfrfyfi ¼;fn vkosnd fu;kZrd@LVkWfdLV bdkbZ ds ikl gks½
?k- LVkWfdLV dks fu;kZr dju s gsrq izkf/kdkj i= iznku dju s rFkk vkbZ,eMCY;wth }kjk vuqeksfnr vafre okLrfod mi;ksx
gsrq fofufnZ’V ns'kks a dks iqu% fu;kZr gsrq lS)kafrd vuqeksnu iznku dju s ds fy, vkosnu dk vkadyu fd;k tk,xk(
M- LVkWfdLV ds ns'k ds vanj LVkWfdLV ls vafre okLrfod Ikz;ksDrk ¼iz;ksDrkvks½a dks gLrkarj.k dju s rFkk ,sl s vuqeksfnr
ns'kks a okLrfod iz;ksDrkvks a dks iqu% fu;kZr dju s ds fy, dkbs Z izkf/kdkj&i= visf{kr ugha gksxk(
p- ,sl s vuqeksfnr ns'kks a dks fd;k tkus okyk iqu% fu;kZr LVkWfdLV ds ns'k ds fu;kZr fu;a=.k fofu;eksa ds v/khu gksxk(
N- ns'k ,d Lor=a lkoZHkkSe bdkbZ dk s fu#fir djsxk tks jktuhfrd Hkwxksy esa ,d fof'k’V jk’Vªh; bdkbZ gSA vr% vkfFkZd
la?k ;k lhek “kqYd la?k ds Hkhrj gLrkarj.k ^mlh ns'k dks gLrkarj.k] ds #i eas ik= ugha gksxk(
t- ,d gh ns'k ds Hkhrj LVkWfdLV }kjk dh tku s okyh fcØh@gLrkarj.k rFkk mu ns'kks a tgka lS)kafrd vuqeksnu fn;k
x;k gS] eas okLrfod iz;ksDrkvks a dks iqu% fu;kZr@iqu% LFkkukUrj.k ds ekey s eas Hkkjrh; fu;kZrd@ykblsla /kkjh dh
Mhth,QVh ¼eq[;ky;½ ds LdksesV izHkkx dk s izR;sd ,sl s LFkkukarj.k ds 3 ekg ds Hkhrj vafre xarO; n'skks a ¼LVkWfdLV
ds n's k ds ckgj ds fu;kZr ds fy,½ eas izfof’V fcy ds lkFk lHkh vafre okLrfod iz;ksDrkvks a ls okLrfod iz;ksDrk
izek.ki= ¼bZ;wlh½ [ifjf'k’V 2/k ¼i½@2/k ¼ii½] tSlk ykxw gks] lfgr ,sl s fd, x, lHkh gLrkarj.kks a dk C;kSjk ,,u,Q
2.k ¼d½ es a izLrqr djuk gksxk(
>- LVkWfdLV ds ns'k ds ckgj LVkWfdLV bdkbZ ls okLrfod iz;ksDrkvks a dks enks a ds iqu% fu;kZr@iqu% LFkkukarj.k ftlds fy,
izkjafHkd pj.k es a dksbZ lS)kafrd vuqeksnu ugha fn;k x;k gS] ds ekey s eas Hkkjrh; fu;kZrd ¼Hk.Mkj.k vkSj fcØh izkf/kdkj
i= /kkjd½ LVkWfdLV bdkbZ ls fuEufyf[kr nLrkost izkIr dju s ds Ik'pkr~ bZ&esy ¼scomet-dgft@nic.in½ ds ek/;e ls
,,u,Q 2.k ¼d½ esa Mhth,QVh ¼eq[;ky;½ es a LdksEksV izHkkx dks iqu% fu;kZr@iqu% LFkkukarj.k gsrq vkosnu izLrqr djsxk(
i. ifjf'k’V 2/k ¼i½@2/k ¼ii½] tSlk ykxw gks ds vuqlkj vkiwfrZ J`a[kyk es a izR;sd fyda ls okLrfod
iz;ksDrk@okLrfod mi;ksx izek.ki=
ii. Ø; vkns'k ¼vkn's kks@a chtd ¼chtdks½a vFkok buds LFkku ij dksbZ nLrkost
iii. LFkkukarj.k gksus oky s mRikn dk rduhdh fofunZs'ku ¼dsoy rHkh tc LVkWfdLV }kjk mRikn eas dksbZ eYw ;
o/kZUk fd;k x;k gS½[भाग I—खण् ड 1] भारत का रािपत्र : असाधारण 3
¥- vkbZ,eMCY;wth okLrfod iz;ksDrk@okLrfod mi;ksx lR;kiu ds vk/kkj ij ,sl s iqu% fu;kZr@iqu% LFkkukarj.k vuqer
dju s gsrq fu;kZr izkf/kdkj i= ij fopkj djsxk(
V- leku LV‚fdLV bdkbZ dks leku LdksesV enks a ds fu;kZr ds fy, vkosnu] vkSj LV‚fdLV bdkbZ ls vafre ç;ksäkvks a dks
leku LdksesV enks a dk iqu% fu;kZr@iqu% LFkkukarj.k ¼LV‚fdLV bdkbZ ds n's k ds Hkhrj vkSj dsoy vafre vafre mi;ksx
oky s n's kks a eas tgka &lS)kafrd vuqeksnu çnku fd;k x;k gS½] ;kuh iqu% fd, tku s oky s v‚MZj] vkbZ,eMC;wth ds lnL;ks a
ds lkFk fdlh Hkh ijke'kZ ds fcuk vkbZ,eMC;wthds v/;{k }kjk fopkj fd;k tk,xkA
B- Hkkjrh; fu;kZrd ¼Hk.Mkj.k ,oa fcØh izkf/kdkj&i= /kkjd½ Hkkjr ls LVkWfdLV dks fd, x, fu;kZr] vafre okLrfod
iz;ksDrk dk s LVkWfdLV }kjk fd, x, gLrkarj.k rFkk izR;sd dSyaMs j o’kZ ds 31 fnlacj rd LVkWfdLV bdkbZ dh
eky&lwph dk fooj.k vxy s o’kZ dh 31 tuojh rd izLrqr djsxkA ,slk u dju s ij Hk.Mkj.k ,oa fcØh uhfr ds
varxZr tqekZuk yxk;k tk ldrk gS@izkf/kdkj&i= dks jí fd;k tk ldrk gS(
M- Hk.Mkj.k ,oa fcØh izkf/kdkj&i= ds varxZr LVkWfdLV bdkbZ dks fu;kZr dh xbZ enks a dks izkf/kdkj&i= dh oS/krk vof/k
ds vanj vafre okLrfod iz;ksDrk ¼iz;ksDrkvks½a dks gLrkarfjr fd;k tkuk pkfg, tSlk fd izfØ;k iqLrd ds iSjk 2-16
eas mYYks[k fd;k x;k gS(
<- izfØ;k iqLrd ds iSjk 2-80 eas mfYYkf[kr izfØ;k ds vuqlkj izkf/kdkj&i= dk iquoSZ/khdj.k fd;k tk ldrk gS(
fon's k O;kikj uhfr ¼,QVhih½ 2015&20 dh çfØ;k iqfLrdk ¼,pchih½ ds vuqPNsn 279d ds rgr ekStwnk ^^LV‚d vkSj
fcØh^^ uhfr dk s fon's kh daiuh ¼vkosnd fu;kZrd½ dh Hkkjrh; lgk;d daiuh ls mldh fon's kh eyw daiuh@fons'kh eyw
daiuh dh vU; lgk;d daiuh dk s fu;kZr ds fy, uhfr dh ç;ksT;rk dk s la'kksf/kr dju s vkSj HkaMkj.k ,oa fcØh uhfr ds
rgr iqu% vkns'k izkf/kdkj i= dh vuqefr iznku dju s gsrq la'kksf/kr fd;k x;k gSA
larks"k dqekj lkjaxh] Ekgkfuns'kd]fons'k O;kikj
,oa inus vij lfpo
MINISTRY OF COMMERCE AND INDUSTRY
(Department of Commerce)
(DIRECTORATE GENERAL OF FOREIGN TRADE)
PUBLIC NOTICE
New Delhi, the 17th January, 2023
No. 51/2015-2020
Subject:-Amendments in Para 2.79A of Handbook of Procedures for issue of export authorization for "Stock
and Sale" of SCOMET items.
F. No. 01/91/171/37/AM10/EC(S).—In exercise of the powers conferred under Paragraph 1.03 of the
Foreign Trade Policy, 2015-20, the Director General of Foreign Trade, hereby makes amendments to Paragraph 2.79A
(Stock and Sale) of the Handbook of Procedures (HBP) of the Foreign Trade Policy (FTP) 2015-20, with immediate
effect.
2. The paragraph 2.79A of the Handbook of Procedures (HBP) of the Foreign Trade Policy (FTP) 2015-20 is
substituted to read as under:
“2.79A Issue of export authorization for "Stock and Sale" of SCOMET items
Application for grant of authorization for bulk export of SCOMET items (excluding Category 0, Category
3A4001, Category 6 and transfer of technology under any category) from an Indian exporter to an entity abroad
(hereinafter referred to as ‘stockist’) for subsequent transfer to the ultimate end users shall be considered by IMWG,
on the following conditions:4 THE GAZETTE OF INDIA : EXTRAORDINARY [PART I—SEC.1]
Applicability and scope of policy
a. ‘Stockist’ refers to the entity abroad to whom the SCOMET items are originally exported by Indian
principal/wholly owned subsidiary. The Stockist entity should be a subsidiary/principal company abroad of the
Indian exporter;
b. Export shall be permitted from the Indian parent company (applicant exporter) to its foreign subsidiary company
or from the Indian subsidiary of foreign company (applicant exporter) to its foreign parent/another subsidiary of
foreign parent company and; on the basis of an End Use declaration from the stockist, through the specified End
User Certificate (EUC)for 'stock & sale' purpose;
Note: IMWG may relax the provisions of a. and b. above in certain cases, considering the description/end use/end user
of the item.
Application for export to stockist abroad and transfer to end users in specific countries
c. The exporter shall submit application in prescribed proforma (ANF-2O) along with following documents from the
stockist:
i. Documentary proof regarding corporate relationship between the Indian exporter and stockist;
ii. End-use/End-user Certificate from stockist entity abroad in Appendix-2S (iii);
iii. List of countries (in the EUC) to which the items imported from India would be exported by the stockist;
iv. Purchase Order(s)/Invoice(s) or a document in lieu thereof;
v. Technical specifications of the product(s);
vi. Copy of Internal Compliance Program (if applicant exporter/ stockist entity has one)
In-principle approval for export to the stockist, and, for sale by stockist within the country of the stockist, and,
for re-export by stockist to end user in other countries
d. The application would be assessed for grant of authorization for export to the stockist, and, for grant of in-
principle approval for re-export to specified countries of ultimate end use approved by the IMWG;
e. No authorization would be required for transfer from the stockist to the ultimate end user(s) within the country of
the stockist and for re-export to end users in such approved countries;
f. Re-export to such approved countries would be subject to the export control regulations of the country of the
stockist;
g. Country would denote an independent sovereign entity which is a distinct national entity in political geography.
Hence, transfers within an economic union or a customs union would not qualify as “same country transfers”;
Post-reporting for same country transfer and re-export to pre-approved countries by the stockist
h. In case of sale/transfer by the stockist within the same country and for re-export/re-transfer to the end users in
countries, for which, in-principle approval has been granted, the Indian exporter/licensee shall submit details of
all such transfers to SCOMET Division of DGFT (Hqrs) in ANF-2 O(a), including EUCs[Appendix-2S (i) /2S(ii),
as applicable] from all ultimate end users and Bill of Entry into the ultimate destination countries(for export
outside the country of stockist), within 3 months of every such transfer;
Application for re-export to other countries (other than pre-approved)
i. In respect of re-export/re-transfer of items from the stockist entity to the end users outside the country of the
stockist, for which, in-principle approval has not been granted at the initial stage, the Indian exporter (stock and
sale authorization holder) shall submit application for re-export/re-transfer to SCOMET Division in DGFT
(Hqrs), in ANF 2O(a), through email (scomet-dgft@nic.in), after obtaining following documents from the stockist
entity:
(i) End-use/End-user Certificate from each link in the supply chain as per Appendix-2S (i) /2S(ii), as applicable;
(ii) Purchase Order(s)/Invoice(s) or a document in lieu thereof ;
(iii) Technical specifications of the product to be transferred (only if there is any value addition in the product by
the stockist)
j. IMWG shall consider export authorizations for allowing such re-export/re-transfer based on end use/end user
verification;[भाग I—खण् ड 1] भारत का रािपत्र : असाधारण 5
Repeat Order cases
k. Applications for export of same SCOMET items to same stockist entity, and re-export/re-transfer of same
SCOMET items from the stockist entity to the end-users (within the country of stockist entity and only the
countries of ultimate end use where in-principle approval has been granted), i.e. repeat orders, shall be considered
by Chairman IMWG, without any consultation with IMWG members;
Annual reporting on inventory of the stockist and transfers/re-exports
l. The Indian exporter (Stock & Sale Authorization holder) shall submit a statement of exports made from India to
the stockist, transfers made by the stockist to the final end-users and inventory with the stockist, as on 31st
December of each calendar year, by 31st January of the following year. A failure to do so may entail imposition of
penalty and /or cancellation of authorization under the stock and sale policy;
m. The items exported to the stockist entity under the stock and sale authorization should be transferred to the final
end-user(s) within the validity period of the authorization as in paragraph 2.16 of HBP;
n. The authorization may be revalidated as per the procedure mentioned in paragraph 2.80 of HBP;
3. Effect of this Public Notice:
The existing "Stock and Sale" policy under Paragraph 2.79A of the Handbook of Procedures (HBP) of the Foreign
Trade Policy (FTP) 2015-20 has been amended to revise the applicability of the policy for export from the Indian
subsidiary of foreign company (applicant exporter) to its foreign parent/another subsidiary of foreign parent company
and allow repeat order authorization under the Stock and Sale policy.
SANTOSH KUMAR SARANGI, Director General of Foreign Trade
& Ex-Officio Addl. Secy.
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.