Executive Summary:
This notification amends Schedule 2 of the ITC (HS) Classification of Export and Import Items, specifically concerning the export of military stores. Effective immediately, it modifies Table A and its Export Licensing Note, updating the list of military stores that require a No Objection Certificate (NOC) from the Department of Defence Production for export. The changes aim to clarify export regulations for military items.
Key Points / Main Content:
Amendments to Export/Import Item Classification:
* Table A of Schedule 2 of ITC (HS) Classification is amended regarding goods falling in multiple chapters.
* Serial No. 4 in Table A is substituted with updated provisions for military stores.
Military Stores Export Policy:
* Export of specified military stores is free, subject to conditions in the "Nature of Restriction" column in Serial No. 4 of Table A.
* A No Objection Certificate (NOC) from the Department of Defence Production (DDP), Ministry of Defence, New Delhi, is required, following the DDP's Standard Operating Procedure (SOP) available on the Ministry of Defence website.
* The shipping bill must include the item's serial number as indicated in the Export Licensing Note of Table A (e.g., MS 001 a or MS 001 b).
* The shipping bill must also indicate the number and date of the NOC issued by the Department of Defence Production.
Updated Export Licensing Note:
* The existing Export Licensing Note of Table A is replaced with an updated list of military stores that are freely exportable under specific conditions.
* MS 001: Details armored or protective equipment, constructions, and components, including metallic/non-metallic armored plates, ballistic protection constructions, helmets, and body armor, adhering to military or comparable national standards.
* MS 002: Covers smoothbore weapons, other arms, automatic weapons, projectors, accessories, and components, including rifles, machine guns, mortars, anti-tank weapons, and signature reduction devices.
* MS 003: Includes bombs, torpedoes, grenades, mines (excluding anti-personnel mines), explosive devices, charges, related equipment, and accessories.
* MS 004: Specifies ammunition and fuze setting devices, including metal or plastic fabrications and safing/arming devices.
* MS 005: Details fire control, alerting, warning equipment, related systems, test, alignment, and countermeasure equipment.
* MS 006A: Covers vessels of war, surface or underwater, special naval equipment, and related components.
* MS 006B: Includes engines and propulsion systems for military use in MS 006A.
* MS 006C: Details underwater detection devices, controls, components, anti-submarine nets, and hull penetrators.
* MS 006D: Lists silent bearings and equipment specially designed for military use.
* MS 007: Includes military ground vehicles and components designed for military use, such as tanks, armored vehicles, and mine-protected vehicles.
* MS 008: Covers high-velocity kinetic energy weapon systems and related equipment.
* MS 009: Details imaging or countermeasure equipment designed for military use, including recorders, cameras, and infrared imaging equipment.
* MS 010: Specifies equipment for military training or simulating military scenarios, including simulators for firearm or weapon training.
* MS 011: Lists miscellaneous equipment, materials, and "libraries," including construction equipment, coatings for signature suppression, and mobile repair shops.
* MS 012: Includes 'Production' equipment and components specifically designed or modified for manufacturing items on the Military Stores List and related environmental test facilities.
* MS 013: Covers electronic equipment designed for military use, such as electronic countermeasure equipment and surveillance systems.
* MS 014: Details directed energy weapon (DEW) systems, countermeasure equipment, and test modules.
* MS 015: Includes software designed for military use or for the development, production, or use of listed equipment and materials.
* MS 016: Specifies the technology required for the development, production, operation, maintenance, or repair of items on the Military Stores List.
SCOMET Items Note:
* Some listed items may be dual-use SCOMET items.
* Exporters should consult the SCOMET LIST (Appendix 3 to Schedule 2 of ITCHS) to determine if an export license from DGFT is required.
Impact Analysis:
Exporters of Military Stores:
* Impact: Must adhere to the amended regulations for exporting military stores.
* Action Required: Obtain a No Objection Certificate (NOC) from the Department of Defence Production, ensure accurate item descriptions in shipping bills, and verify if items are dual-use SCOMET items requiring a DGFT license.
Department of Defence Production:
* Impact: Responsible for issuing No Objection Certificates (NOCs) for the export of military stores as per the updated regulations.
* Action Required: Follow the Standard Operating Procedure (SOP) for issuing NOCs and ensure the SOP is accessible on the Ministry of Defence website.
Directorate General of Foreign Trade (DGFT):
* Impact: Responsible for overseeing export regulations, including dual-use SCOMET items.
* Action Required: Enforce export licensing requirements for dual-use SCOMET items as identified in the SCOMET LIST.
Key Entities Referenced
Foreign Trade Development and Regulation Act, 1992 : An act of the Indian Parliament that empowers the Central Government to regulate foreign trade.
Foreign Trade Policy, 2009-2014 : The export-import policy announced by the government, effective for the period 2009-2014.
ITC HS Classification of Export and Import Items : Indian Trade Classification (Harmonized System), which is based on the Harmonized Commodity Description and Coding System (HS), used for classifying goods in export and import trade.
Ministry of Commerce and Industry : The Indian government ministry responsible for formulating and implementing foreign trade policy.
Department of Commerce : A department within the Ministry of Commerce and Industry, Government of India.
Department of Defence Production, Ministry of Defence, New Delhi : A department responsible for defence production under Ministry of Defence, requiring No Objection Certificate (NOC) for export of military stores.
Director General of Foreign Trade : Head of Directorate General of Foreign Trade responsible for implementing foreign trade policy.
New Delhi : Capital of India. Place where notification regarding export policy of military stores was published.
See Full Document Text
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EXTRAORDINARY
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MINISTRY OF COMMERCE AND INDUSTRY
(Department of Commerce)
NOTIFICATION
New Delhi, the 13th March, 2015
No. 115 (RE – 2013)/2009-2014
Subject: Export of Military Stores.
S.O. 754(E).— In exercise of the powers conferred by Section 5 of the Foreign Trade (Development &
Regulation) Act, 1992 (No. 22 of 1992) read with Para 1.3 of the Foreign Trade Policy, 2009-2014, as amended, the
Central Government, with immediate effect, hereby makes the following amendments in Table A of Schedule 2 of
ITC(HS) Classification of Export and Import Items.
2. Serial No. (S. No.) 4 of the Table A of Schedule 2 of ITC (HS) Classification of Export and Import Items is
substituted as under:¹Hkkx IIµ[k.M 3(ii)º Hkkjr dk jkti=k % vlk/kj.k 5
TABLE A
Goods falling in more than one Chapter of ITC (HS) Classification
S.No. Chapter Item Description Policy Nature of Restriction
4 Any Military Stores as specified Free (i) No Objection Certificate (NOC) shall be
Chapter in Export Licensing Note obtained from the Department of Defence
of Table A Production, Ministry of Defence, New Delhi as
per the provisions of Standard Operating
Procedure (SOP) of Department of Defence
Production, as available on the website of
Ministry of Defence.
(ii) The description of item in the Shipping Bill
shall prefix the Serial No. of the item indicated
in Export Licensing Note of Table A viz. MS
001 a or MS 001 b ........ or as the case may be.
(iii) The Shipping Bill shall indicate the number
and date of NOC of Department of Defence
Production.
3. The existing Export Licensing Note of Table A is substituted as under:
Export Licensing Note of Table A
List of Military Stores
The following military stores are freely exportable subject to the conditions mentioned in the “Nature of
Restriction” against Serial No. (S. No.) 4:
MS 001. Armoured or protective equipment, constructions and components, as follows:
a. Metallic or non-metallic armoured plate, manufactured to comply with a military standard or
specification; or suitable for military use.
b. Constructions of metallic or non-metallic materials, or combinations thereof, specially designed to
provide ballistic protection for military systems, and specially designed components therefor.
c. Helmets manufactured according to military standards or specifications, or comparable national
standards, and specially designed components therefor (i.e., helmet shell, liner and comfort pads).
d. Body armour or protective garments and components therefor namely soft body armour or
protective garments, manufactured to military standards or specifications, or to their equivalents,
and specially designed components therefor.
e. Body armour or protective garments and components therefor namely hard body armour plates
providing ballistic protection equal to or greater than level III (NIJ 0101.06, July 2008) or national
equivalents.
MS 002. The following smooth-bore weapons, other arms and automatic weapons, projectors and accessories and
specially designed components therefor:
a. Rifles, guns and combination guns, handguns, machine guns, sub-machine guns and volley guns;
howitzers, cannon, mortars, anti-tank weapons, projectile launchers, military flame throwers, rifles,
recoilless rifles, smooth-bore weapons and signature reduction devices therefor, detachable cartridge
magazines and mountings, weapons sights and weapon sight mounts; specially designed for military
weapons /stores.
b. Weapons using caseless ammunition.
c. Detachable cartridge magazines and mountings specified for military use, sound suppressors or moderators,
special gun-mountings, optical weapons sights and flash suppressors, for arms specified by 2.a. and 2.b.
above.
d. Smoke, gas and pyrotechnic projectors or generators, specially designed or modified for military use.6 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(ii)]
MS 003. Bombs, torpedoes, grenades, smoke canisters, mines (except anti-personnel mines), depth charges, other
explosive devices and charges and related equipment and accessories and specially designed
components therefor for military use.
MS 004. Ammunition and fuze setting devices and specially designed components therefor including:
a. Metal or plastic fabrications such as primer anvils, bullet cups, cartridge links, rotating bands and
military stores metal parts.
b. Safing and arming devices, fuzes, sensors and initiation devices.
MS 005. The following fire control, and related alerting and warning equipment, and related systems, test and
alignment and countermeasure equipment, specially designed for military use, and specially designed
components and accessories therefor:
a. Weapon sights, bombing computers, gun laying equipment and weapon control systems.
b. Target acquisition, designation, range-finding, surveillance or tracking systems; detection, data
fusion, recognition or identification equipment; and sensor integration equipment.
c. Countermeasure equipment including detection equipment specified by para 5a or 5b.
d. Field test or alignment equipment, specially designed for items specified by para 5a, 5b or 5c.
MS 006A. Vessels of war (surface or underwater), special naval equipment, accessories, components and other
surface vessels specially designed or modified for military use.
MS 006B. Engines and propulsion systems, specially designed for military use in MS 006A and components
therefor.
MS 006C. Underwater detection devices, controls and components therefor; Anti-submarine nets and anti-torpedo
nets; Hull penetrators and connectors that enable interaction with equipment external to a vessel, and
components therefor, specially designed for military use.
MS 006D. Silent bearings, components therefor and equipment specially designed for military use.
MS 007. Military Ground vehicles and components specially designed or modified for military use including:
a. Tanks and other military armed vehicles and military vehicles fitted with mountings for arms or
equipment for mine laying or the launching of munitions.
b. Armoured vehicles.
c. Amphibious and deep water fording vehicles.
d. Recovery vehicles and vehicles for towing or transporting ammunition or weapon systems and
associated load handling equipment.
e. Mine-protected vehicles.
MS 008. High velocity kinetic energy weapon systems and related equipment and specially designed
components therefor.
MS 009. Imaging or countermeasure equipment, specially designed for military use, and specially designed
components and accessories therefor including:
a. Recorders and image processing equipment;
b. Cameras, photographic equipment and film processing equipment;
c. Image intensifier equipment;
d. Infrared or thermal imaging equipment;
e. Imaging radar sensor equipment;
f. Countermeasure or counter-countermeasure equipment, for the equipment specified above.
MS 010. Specialised equipment for military training or for simulating military scenarios, simulators specially
designed for training in the use of any firearm or weapon and specially designed components and
accessories therefor.¹Hkkx IIµ[k.M 3(ii)º Hkkjr dk jkti=k % vlk/kj.k 7
MS 011. Miscellaneous equipment, materials and "libraries" and specially designed components therefor
including:
a. Construction equipment specially designed for military use.
b. Fittings, coatings and treatments, for signature suppression, specially designed for military use.
c. Field engineer equipment specially designed for use in a combat zone.
d. Equipment and material, coated or treated for signature suppression, specially designed for military use,
other than those specified elsewhere in the military stores.
e. Mobile repair shops specially designed or 'modified' to service military equipment.
f. Field generators specially designed or 'modified' for military use.
g. Containers specially designed or 'modified' for military use;
h. Laser protection equipment (e.g., eye and sensor protection) specially designed for military use.
i. "Fuel cells", specially designed or 'modified' for military use.
MS 012. The following 'Production' equipment and components:
a. Specially designed or modified 'production' equipment for the 'production' of products specified
by the Military Stores List, and specially designed components therefor;
b. Specially designed environmental test facilities and specially designed equipment therefor, for the
certification, qualification or testing of products specified by the Military Stores List.
MS 013. Electronic equipment specially designed for military use such as electronic countermeasure and
electronic counter-countermeasure equipment and specially designed components therefor, including
jamming and counter-jamming equipment, frequency agile tubes and transmitter block, electronic
systems or equipment designed either for surveillance and military intelligence or counteracting such
surveillance and monitoring, underwater counter measures and automated command and control
systems.
MS 014. Directed Energy Weapon (DEW) systems related to counter measure equipment and test modules
specially designed for military use and specially designed components therefor.
MS 015. Software especially designed or modified for military use or for the development, production or use of
equipments, materials listed in this Military Stores list.
MS 016. Technology required for the development, production, operation, installation, maintenance, repair,
overhaul or refurbishing of items specified in this Military Stores list.
NOTE: Some of the items listed above may be of dual use (SCOMET items) depending upon their specifications and
specific end uses. Hence, the exporters may also refer to SCOMET LIST [Appendix 3 to Schedule 2 of ITC(HS)
Classification of Export & Import Items] for determining whether the item requires export license from DGFT.
4. Effect of this notification:
The list of military stores that requires NOC from Department of Defence Production for export has been
notified.
[F. No. 01/91/171/73/AM14/Export Cell]
PRAVIR KUMAR, Director General of Foreign Trade
Printed by the Manager, Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.