**Executive Summary:**
This Public Notice amends Paragraph 10.10 of the Handbook of Procedures 2023, concerning the "Stock and Sale" authorization of Special Chemicals, Organisms, Materials, Equipment and Technologies (SCOMET) items. The amendment broadens the definition of "Stockist" and outlines conditions for export authorization, transfer to end-users, and reporting requirements. It is effective immediately.
**Key Points / Main Content:**
* **Eligibility and Scope:**
* Authorizations for bulk export of SCOMET items (excluding Category 0, Category 3A401, Category 6, and technology transfers) to Stockists for transfer to end-users will be considered by the Inter-Ministerial Working Group (IMWG).
* A Stockist is defined as a subsidiary, principal, parent company, affiliate of the Indian exporter, Indian or Foreign Original Equipment Manufacturer (OEM), Electronic Manufacturing Services (EMS) or Contract Manufacturer (CM).
* **Application and Documentation:**
* Exporters must submit application ANF10B with specified documents from the stockist including:
* Proof of corporate relationship.
* End-Use Certificate (EUC) in Appendix 10J iii.
* List of countries for re-export.
* Purchase Orders/Invoices.
* Technical specifications.
* Internal Compliance Program copy (if available).
* AEO certificate copy (if OEM/CM/SCM).
* Undertaking regarding military end-use or WMD concerns.
* Corporate registration of stockist.
* **Approvals and Restrictions:**
* IMWG will assess applications for export authorization to the stockist and grant in-principle approval for re-export to specified countries.
* No authorization is needed for transfers within the stockist's country or re-exports to pre-approved countries, subject to local export controls.
* Transfers within an economic or customs union do not qualify as same-country transfers.
* **Reporting Requirements:**
* For same-country transfers and re-exports to pre-approved countries, the Indian exporter must submit details (ANF10B, EUCs, Bill of Entry) to the SCOMET Division of DGFT HQ within 3 months of each transfer.
* For re-exports to non-approved countries, a separate application (ANF 10B) with required documents (EUCs, Purchase Orders/Invoices, technical specifications) must be submitted to SCOMET Division.
* Repeat orders to the same stockist and end-users in pre-approved countries may be considered by the Chairman of IMWG.
* Annual reporting on exports, transfers, and stockist inventory is due by January 31st of each year.
* **Compliance and Validity:**
* Items must be transferred to final end-users within the authorization's validity period.
* Authorizations can be revalidated as per HBP guidelines.
**Impact Analysis:**
* **Indian Exporters:**
* *Impact:* Revised procedures for obtaining stock and sale authorization, including broadened eligibility and reporting requirements.
* *Action Required:* Ensure compliance with new documentation and reporting mandates, including thorough end-user verification and adherence to timelines.
* **Stockists (including Subsidiaries, Parent Companies, Affiliates, OEMs, EMS, CMs):**
* *Impact:* Expanded eligibility to act as stockists, but increased responsibility for providing necessary documentation and adhering to re-export regulations.
* *Action Required:* Provide necessary documentation to Indian exporters, maintain accurate records of transfers, and comply with local export control regulations for re-exports.
* **Directorate General of Foreign Trade (DGFT):**
* *Impact:* Amended procedures for processing stock and sale authorization applications, requiring assessment of new eligibility criteria and monitoring of reporting compliance.
* *Action Required:* Implement the revised guidelines, review applications based on the updated criteria, and monitor compliance with reporting requirements.
Key Entities Referenced
Directorate General of Foreign Trade: The issuing authority for the public notice and responsible for foreign trade policy.
Foreign Trade Policy 2023: The overarching policy framework under which the amendments are being made.
Handbook of Procedures HBP 2023: A document providing detailed procedures related to the Foreign Trade Policy; specifically, Paragraph 10.10 is amended.
SCOMET Items: Special Chemicals, Organisms, Materials, Equipment and Technologies; items subject to export controls.
IMWG: Inter-Ministerial Working Group, the body that considers applications for bulk export of SCOMET items.
End User Certificate EUC: A document from the end user certifying the intended use of the exported SCOMET items.
FT D R Act, 1992: Foreign Trade (Development and Regulation) Act, 1992, the law under which action can be taken for misdeclaration.
Stock Sale Authorization: The authorization required for exporting SCOMET items to a stockist for subsequent sale to end users.
To be published in the Gazette of India Extraordinary Part-I, Section-|
Government of India
Ministry of Commerce and Industry
Department of Commerce
Directorate General of Foreign Trade
Public Notice No. OL /2025-2026
G*\May 2025
Subject :- Amendments to Para 10.10 of the Handbook of Procedures (HBP) 2023 — Revised Framework for
Stock & Sale Authorization of SCOMET Items -reg
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 amends Paragraph 10.10(Issue of
export authorisation for "Stock and Sale" of SCOMET items) of the Handbook of Procedures(HBP) 2023 with
immediate effect.
2. Para 10.10 of the HBP 2023 is amended as under:
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 3A401,
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:
Applicability and scope of policy
a. ‘Stockist’ refers to an entity abroad to whom the SCOMET items are originally exported by Indian Exporter.
The stockist entity should be a subsidiary/principal (parent) company abroad of the Indian exporter. The
stockist entity could also be an affiliate of the Indian Exporter, Indian or Foreign Original Equipment
manufacturer(OEM)/ Electronic Manufacturing Services (EMS)'/Contract Manufacturer(CM)’.
1 For the purpose of this policy, EMS is defined “as a business service provided by companies that specialize in
the manufacturing, assembly, testing, return, repair and sometimes design of electronic products for OEMs.
These providers are responsible for assembling electronic components and devices based on the customer’s
specifications, and the services are often provided at a cost-effective price compared to setting up internal
manufacturing facilities.”
? This could be considered based on additional documents submitted by the Indian company, such as AEO
certification, contract/agreement between the Indian company and its Original Equipment Manufacturer, etc.
b. Export shall be permitted from the Indian company (applicant exporter) to ‘Stockist’ on the basis of an End
Use declaration from the Stockist, through the specified End User Certificate (EUC) for 'Stock & Sale’
purposes;
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 stockists abroad and transfer to end users in specific countries
The exporter shall submit application in prescribed proforma (ANF-10B) along with the following
documents from the stockist:
Documentary proof regarding the corporate relationship between the Indian exporter and stockist;
End-use/End-user Certificate from stockist entity abroad in Appendix-10j (iii);
List of countries (in the EUC) to which the items imported from India would be exported by the stockist;
Purchase Order(s)/Invoice(s) or a document in lieu thereof;
Technical specifications of the product(s);
Copy of Internal Compliance Program (if applicant exporter/ stockist entity has one)
vii. Copy of AEO certificate (in case of OEM/CMS/CM).
viii. Undertaking on the letterhead of the firm duly signed and stamped by the authorized signatory stating
that, “The applicant exporter declares that subsequent to the issuance of export authorization, if the
licensee has been notified in writing by DGFT or if they know or has reason to believe that an item may be
intended for military end use or has a potential risk of use in or diversion to weapons of mass destruction
(WMD) or in delivery of their missile system, the exporter would not be eligible for Stock & Sale policy
for export of that/those item(s) and would apply separately to DGFT for a fresh authorization in terms of
regular policy”. Action shall be taken against the exporter under the FT (D & R) Act, 1992, for any mis-
declaration.
Copy of corporate registration/business registration or certificate of incorporation of stockist entities
in the destination countries.
In-principle approval for export to the stockist, for sale by the stockist within the country of the stockist, and
for re-export by the stockist to end users in other countries
The application would be assessed for the grant of authorization for export to the stockist and for gthe
rant of in-principle approval for re-export to specified countries of ultimate end use approved by the
IMWG;
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;
Re-export to such approved countries would be subject to the export control regulations of the country
of the stockist;
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 stockiest
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(HQ) in ANF-10B, including
EUCs[Appendix-10J(i), 10J(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)
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 inDGFT (HQ), in ANF 108, 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-10J(i) /10J(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. !MWG shall consider export authorizations for allowing such re-export/re-transfer based on end-use/end-
user verification;
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
|. 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 10.17 of HBP;
n. The authorization may be revalidated as per the procedure mentioned in paragraph 10.20 of HBP;
Effect of this Public Notice: Paragraph 10.10 of the HBP has been amended to revise the provisions for the Stock
& Sale Authorization of SCOMET Items, broadening the definition of ‘Stockist’ to include Indian or Foreign
Original Equipment manufacturer(OEM)/Electronic Manufacturing Services (EMS)/Contract Manufacturer(CM).
ates
Director General of Foreign Trade
Ex-officio Additional Secretary, Government of India
E-mail: dgft@nic.in
(Issued from F.No. 01/77/171/73/AM25/EC(S))