Home India Ministry of Commerce and Industry In exercise of the powers conferred by Section 5 and Section...
Date: 2019-04-24 Category: Extra Ordinary State: Union Government Country: India

In exercise of the powers conferred by Section 5 and Section 14A of the Foreign Trade Development and Regulation Act

Issued by Ministry of Commerce and Industry · Department of Commerce

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Executive Summary & Key Takeaways

Executive Summary: This notification amends Appendix 3 (SCOMET items) of Schedule 2 of the ITC (HS) Classification of Export and Import Items, 2018. It modifies the export policy for certain chemicals, specifically Chloropicrin: Trichloronitromethane and Methyldiethanolamine, with immediate effect from April 24, 2019. The amendment aims to streamline export procedures for State Parties to the Chemical Weapons Convention (CWC). Key Points / Main Content: SCOMET List Amendments: Existing entries for SCOMET items 1C004 and 1C016 in Category 1C are now marked as "Reserved." A new SCOMET entry 1E is inserted, pertaining to the export of specified chemicals. Export Policy for Specified Chemicals (Entry 1E): Exports to CWC State Parties: Allowed without export authorization, subject to post-export reporting. Reporting Requirements: Exporters must notify the National Authority (Chemical Weapons Convention), Ministry of External Affairs, Department of Chemicals & Petrochemicals, and DGFT within 30 days of export using the prescribed Aayat Niryat Form along with the End-Use Certificate (EUC). Delivery Documentation: A copy of the bill of entry into the destination State Party must be submitted to DGFT within 30 days of delivery. Exports to Non-CWC State Parties: Remain restricted and require export authorization. Additional Requirements for Non-CWC Exports: A copy of the bill of entry into the destination country must be submitted to DGFT within 30 days of export, and applications must include a government-signed End-Use Certificate (Appendix 2Sii). Impact Analysis: Exporters of Chloropicrin: Trichloronitromethane and Methyldiethanolamine: Impact: Benefit from relaxed export procedures to CWC State Parties, but must adhere to post-export reporting requirements. Exports to non-CWC State Parties remain restricted. Action Required: Comply with new reporting requirements for exports to CWC State Parties (notification within 30 days of export and submission of the bill of entry within 30 days of delivery). Continue to obtain export authorizations for non-CWC State Parties and provide the required documentation. Directorate General of Foreign Trade (DGFT): Impact: Responsible for overseeing the implementation of the amended policy and receiving post-export notifications and bill of entry copies. Action Required: Process notifications and bill of entry copies submitted by exporters, monitor exports of specified chemicals, and enforce compliance with the new regulations. National Authority, Chemical Weapons Convention; Ministry of External Affairs DISA; and Department of Chemicals & Petrochemicals: Impact: They must be notified of relevant exports. Action Required: No action specified.

Key Entities Referenced

Foreign Trade Policy 2015-2020: A policy document referenced in the notification regarding amendments to export/import regulations. Foreign Trade Development and Regulation Act, 1992: An act of the Indian Parliament that grants the Central Government powers to regulate foreign trade. ITC HS Classification of Export and Import Items, 2018: A classification system for export and import items, specifically its Schedule 2 and Appendix 3 (SCOMET items) are being amended. Directorate General of Foreign Trade: The organization responsible for implementing foreign trade policy in India. SCOMET: Special Chemicals, Organisms, Materials, Equipment and Technologies. It is related to export control of sensitive items. Chemical Weapons Convention: An arms control treaty prohibiting the development, production, stockpiling, and use of chemical weapons. Ministry of External Affairs: The Indian government ministry responsible for the country's foreign relations. Department of Chemicals and Petrochemicals: A department under the Ministry of Chemicals and Fertilizers in the Government of India.
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The existing entries against SCOMET entry 1C004 and 1C016 in Category 1C shall be substituted as under (changes made are in bold letters): S. No. SCOMET Entry Revised Policy 4. ‘1C004 (Reserved)’ 16. ‘1C016 (Reserved)’ 3. After the SCOMET entry 1D and the entries relating thereto, the following new SCOMET entry 1E shall be inserted as follows: ‘1E Export of Chemicals as specified below is allowed to State Parties to the Chemical Weapons Convention (CWC) without an export authorisation subject to the condition that the exporter shall notify within 30 days of export to the National Authority, Chemical Weapons Convention, Cabinet Secretariat; the Ministry of External Affairs (D&ISA); the Department of Chemicals & Petro-chemicals, and the DGFT of such exports in the prescribed format (Aayat Niryat Form) along with the End-Use Certificate (EUC) and submit to DGFT a copy of the bill of entry into the destination State Party within 30 days of delivery.¹Hkkx IIµ[k.M 3(ii)º Hkkjr dk jkti=k % vlk/kj.k 3 S. No. SCOMET Name of the Chemical Entry in CWC CAS Numbers ITC (HS) Entry Schedule 3 Codes 1. 1E004 Chloropicrin : Trichloronitro- 3A04 76-06-2 29049080 Methane 2. 1E016 Methyldiethanolamine 3B16 105-59-9 29221212’ Export of chemicals as specified above to States not Party to the CWC shall continue to be restricted and will be allowed only against an export authorisation, and in that case also exporters shall submit to the DGFT a copy of the bill of entry into the destination country within 30 days of export. Further, applications for export of chemicals in this category to countries not Party to the CWC shall be submitted along with a Government signed End-Use Certificate in the prescribed format [Appendix 2S(ii)]. 4. Effect of this Notification: The existing export policy of chemicals namely, Chloropicrin: Trichloronitro Methane and Methyldiethanolamine listed under Appendix 3 (SCOMET List) has been amended to allow export of these chemicals to State Parties to the Chemical Weapons Convention (CWC) without an export authorisation, on post reporting basis. [F.No. 01/91/171/37/AM10/EC] ALOK VARDHAN CHATURVEDI, Director General of Foreign Trade & Ex-officio Add. 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.

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