Executive Summary:
This notification, issued by the Directorate General of Foreign Trade, amends Schedule 2 and Appendix 3 of the ITCHS Classification of Export and Import Items. It revises the list of special goods, services, and technologies under the SCOMET list. The notification comes into effect on May 1, 2017, and updates the licensing jurisdiction for various SCOMET categories.
Key Points / Main Content:
* **Amendments to ITCHS Classification:**
* Revisions are made to Table A of Schedule 2 and Appendix 3 of the ITCHS Classification of Export and Import Items.
* The existing Appendix 3 to Schedule 2 of ITC HS Classification of Export and Import Items, 2012, is replaced by the annexure to this notification.
* Serial No. 4 and 5 of Table A of Schedule 2 are substituted, relating to goods falling in multiple chapters and special chemicals/organisms/materials/equipment/technologies (SCOMET).
* **SCOMET List Updates:**
* Appendix 3 contains a list of specified goods, services, and technologies (SCOMET).
* The revised Appendix 3 is available on the DGFT website.
* **Specific SCOMET Category Changes:**
* Category 6 (Munitions List), previously reserved, is now populated. The Military Stores list from Notification No. 115RE201320092014 is rescinded.
* New Category 8 is added, titled "Special Materials and Related Equipment, Material Processing, Electronics, Computers, Telecommunications, Information Security, Sensors and Lasers, Navigation and Avionics, Marine, Aerospace and Propulsion."
* Amendments are made to Categories 1B and 1C. Category 1D ("Other Chemicals") is added.
* Category 2 is substituted with amended and new entries.
* Categories 3D001 to 3D005 are replaced by entries 3D001 to 3D015.
* Categories 3A201, 3A303, 3A309, 4A003, 4A007, 4A017, 4B006, 5A102, and 5A205 are substituted with amended and new entries.
* Category 7C is deleted.
* **Effective Date:**
* The notification takes effect on May 1, 2017.
Impact Analysis:
* **Exporters and Importers:**
* Impact: Need to comply with the updated SCOMET list and licensing requirements for export and import of specified items. The notification defines the licensing jurisdiction for various categories of the SCOMET list.
* Action Required: Review the revised Appendix 3, available on the DGFT website, and ensure compliance with the new regulations. Apply for necessary authorizations from relevant departments (Atomic Energy, Defence Production, DGFT) as per the updated guidelines.
* **Department of Atomic Energy:**
* Impact: Responsible for granting authorizations for the export of items specified in Category 0 of the SCOMET list and items specified under Note 2 of the Commodity Identification Note of the SCOMET list.
* Action Required: Process authorization requests in accordance with the Atomic Energy Act 1962 and related rules, regulations, and guidelines.
* **Department of Defence Production:**
* Impact: Governs the export of items specified in Category 6 of the SCOMET list (Munitions List), except those covered under Note 2 and 3 of Commodity Identification Note of the SCOMET list.
* Action Required: Adhere to the extant Standard Operating Procedure when processing export requests and issue authorizations as appropriate.
* **Directorate General of Foreign Trade (DGFT):**
* Impact: Responsible for implementing and monitoring the updated SCOMET list and issuing authorizations for export of items as specified in the notification.
* Action Required: Update internal procedures and systems to reflect the changes in the SCOMET list. Process authorization requests and issue public notices and circulars as needed.
Key Entities Referenced
Foreign Trade Development and Regulation Act, 1992: An act of the Indian Parliament that empowers the Central Government to make provisions for the development and regulation of foreign trade.
Foreign Trade Policy, 2015-2020: A policy document outlining the guidelines and objectives for India's foreign trade during the period 2015-2020.
Directorate General of Foreign Trade: A department of the Ministry of Commerce and Industry responsible for implementing the foreign trade policy of India.
ITC HS Classification of Export and Import Items: Indian Trade Classification based on Harmonized System; a classification system used to categorize goods for export and import purposes.
SCOMET: Special Chemicals, Organisms, Materials, Equipment and Technologies. It refers to a list of items whose export is regulated by the Indian government.
Atomic Energy Act 1962: An act of the Indian Parliament which regulates atomic energy in India
Department of Atomic Energy: A department under the direct charge of the Prime Minister of India, responsible for nuclear energy.
Department of Defence Production: A department within the Ministry of Defence, Government of India, responsible for defence production.
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MINISTRY OF COMMERCE AND INDUSTRY
(Department of Commerce)
(DIRECTORATE GENERAL OF FOREIGN TRADE)
NOTIFICATION
New Delhi, the 24th April, 2017
No. 5 /2015-2020
Subject: Amendment in Table A of Schedule 2 and Appendix 3 of ITC(HS) Classification of Export
and Import Items
S.O. 1285(E).—In exercise of the powers conferred by Section 5 and Section 14A of the Foreign
Trade (Development & Regulation) Act, 1992 (No.22 of 1992) read with Para 1.02 of the Foreign Trade
Policy, 2015-2020, as amended, and in supersession of DGFT Notification No. 38 (RE-2010) /2009-2014
dated 31st March, 2011, Notification no. 93(RE-2012)/2009-14 dated 6th January 2012, Notification No.
37(RE-2012)/2009-14 dated 14th March 2013, Notification no. 26(RE-2013)/2009-14 dated 3rd July 2013,
Notification No. 56 (RE-2013)/2009-2014 dated 12th December 2013, Notification no. 115 (RE-2013)/2009-
2014 dated 13th March 2015, Notification No. 116(RE-2013)/2009-14 dated 13th March 2015, Notification
No. 05/(2015-2020) dated 29th April 2016 and Notification no. 38/(2015-2020) dated 17th February 2017,
except as respects acts done before such supersession, the Central Government hereby makes the following
amendments in Table A of Schedule 2 and Appendix 3 of ITC(HS) Classification of Export and Import Items.
Annexure to this notification will replace the existing ‘Appendix 3’ to Schedule 2 of ITC (HS) Classification
of Export and Import Items, 2012.
2. Serial No. (S. No.) 4 and 5 of the Table A of Schedule 2 of ITC (HS) Classification of Export and Import
Items is substituted as under:—
Goods falling in more than one Chapter of ITC (HS) Classification
“4 - - - -
5 Any Special Chemicals, Organisms, Prohibited/ a. Exports would be governed as per the
chapter Materials, Equipment & Restricted conditions indicated in Appendix-3 of
Technologies (SCOMET) items as this Schedule.
specified in Appendix-3 of this b. Export of items specified in Category
Schedule. 0 of the SCOMET list is governed by
the extant provisions of the Atomic
Energy Act 1962 as amended and rules,
regulations, guidelines and resolutions
issued under the said Act. Unless
otherwise prohibited, export may be
permitted against an authorization
granted by the Department of Atomic
Energy.
c. Export of items specified under the
Note 2 of the ‘Commodity
Identification Note’ of the SCOMET
list would be permitted against an
authorization granted by the
Department of Atomic Energy.
d. Export of items specified in Category
6 of SCOMET list (Munitions List),
(except those covered under Note 2 and
3 of Commodity Identification Note of
the SCOMET list) is governed by the
extant Standard Operating Procedure
issued by the Department of Defence
Production in the Ministry of Defence.
Unless prohibited, export may be
permitted against an authorization
issued by the Department of Defence
Production.4 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(ii)]
e. Export of items specified in
Categories 1, 2, 3, 4, 5, 7 and 8 of the
SCOMET list is governed by the
notifications, public notices and
circulars issued under the Foreign
Trade (Development and Regulation)
Act 1992 as amended. Unless otherwise
prohibited (including the items covered
under Note 4 of the Commodity
Identification Note of the SCOMET
list), export of such items may be
permitted against an authorization
issued by the DGFT. ”
3. ‘Appendix 3’ to Schedule- 2 of ITC (HS) Classification of Export and Import Items, 2012 contains the
list of specified goods, services and technologies, i.e. Special Chemicals, Organisms, Materials,
Equipment and Technologies (SCOMET). Annexure to this notification contains the revised ‘Appendix
3’ and the same is also available in the DGFT’s website www.dgft.gov.in.
SCOMET Categories in which amendments have been made are as follows:-
a) SCOMET Category 6 titled ‘Munitions List’ that was hitherto ‘Reserved’ has been populated. The
Military Stores list notified vide Notification No. 115(RE-2013)/2009-2014 dated 13th March 2015
stands rescinded.
b) A new SCOMET Category 8 titled ‘Special Materials and Related Equipment, Material Processing,
Electronics, Computers, Telecommunications, Information Security, Sensors and Lasers,
Navigation and Avionics, Marine, Aerospace and Propulsion’ has been added.
c) In SCOMET Category 1B and 1C, amendments have been made. SCOMET Category 1D titled
‘Other Chemicals’ has been added.
d) SCOMET Category 2 has been substituted with amended and new entries.
e) SCOMET Categories 3D001 to 3D005 have been substituted by entries 3D001 to 3D015.
f) Categories 3A201, 3A303, 3A309, 4A003, 4A007, 4A017, 4B006, 5A102, 5A205 have been
substituted with amended and new entries.
g) SCOMET Category 7C has been deleted.
4. This notification shall come into force on the 1st of May, 2017.
5. Effect of this notification: Annexure to this notification contains the revised ‘Appendix 3’ to Schedule-
2 of ITC (HS) Classification of Export and Import Items which will replace the existing Appendix 3.
This notification has the effect of carrying out updates to the SCOMET list and defining the licensing
jurisdiction for various categories of the SCOMET list.
[F. No. 01/91/171/37/AM10/EC(S)]
AJAY KUMAR BHALLA, Director General of Foreign Trade
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.