Executive Summary:
This notification announces amendments to Appendix 3 of Schedule 2 of the ITC HS Classification of Export and Import Items, 2012, concerning SCOMET (Special Chemicals, Organisms, Materials, Equipment and Technologies) items. The amendments are effective immediately, as of September 21, 2017, and relate to the classification and control of export and import items. The notification is issued by the Directorate General of Foreign Trade, Ministry of Commerce and Industry.
Key Points / Main Content:
Category Amendments:
* Category 2: The entry for microorganisms and toxins is updated, substituting the previous entry under Category 2H with "Genetic Elements and Genetically modified Organisms."
* Category 7: The entry for electronics, computers, and information technology is marked as "Reserved," replacing the previous entry and its subcategories (7A, 7B, 7C, 7D, and 7E).
SCOMET Glossary Additions:
* A definition for "Military use" is added, specifying its meaning in the context of SCOMET Categories 5D or 6, related to military items and their development/production.
Specific SCOMET Entry Changes:
* 2H: The entry for Genetically Modified Organisms is replaced with "Genetic Elements and Geneticallymodified Organisms," and associated criteria are defined, including specific genes, toxins, and technical notes on genetically modified organisms and pathogenicity.
* 3D0011 & 3D0012: Information regarding prefabricated repair assemblies and components that should be added after entries for each.
* 3D004: The entry for Toxic gas monitors and monitoring systems is substituted, detailing specifications for detectors, sensors, and software designed for chemical warfare agents or cholinesterase-inhibiting activity detection.
* 3D006: The entry for Fermenters is substituted, outlining capabilities for cultivation of microorganisms or live cells for production of viruses or toxins and components designed for fermenters.
* 3D014: Information is added regarding Nucleic acid assemblers and synthesizers.
* 4A007: The entry for Vacuum or other controlled atmosphere metallurgical melting and casting furnaces and related equipment is substituted, specifying characteristics for arc remelt, electron beam melting, and plasma melting furnaces, along with control systems and plasma torches.
* 4A032: An entry is added for Target assemblies and components for the production of tritium, including lithium-6 isotope targets and specially designed components.
* 5C013: The entry for Radiation Hardened microcircuits is substituted, detailing radiation hardening requirements and characteristics for analog-to-digital converters.
* 8A301b: Microwave or millimeter wave items are being substituted.
Impact Analysis:
Stakeholder: Exporters and Importers of SCOMET Items
Impact: Changes in classification and control of certain export and import items, potentially affecting licensing requirements and compliance procedures.
Action Required: Review current classifications of items being exported/imported, assess impact of changes, and ensure compliance with amended regulations.
Stakeholder: Regulatory Agencies (e.g., DGFT)
Impact: Enforcement and administration of the amended regulations, requiring updated procedures and guidelines.
Action Required: Update internal systems and procedures to reflect the changes, communicate the amendments to relevant stakeholders, and ensure effective enforcement.
Key Entities Referenced
Foreign Trade Development and Regulation Act, 1992: A law that provides the central government with powers regarding foreign trade.
Foreign Trade Policy 2015-2020: A policy document outlining the government's strategy for foreign trade.
ITC HS Classification of Export and Import Items, 2012: A classification system used for export and import items.
DGFT Notification No. 5/2015-20: A notification issued by the Directorate General of Foreign Trade (DGFT) on April 24, 2017.
DGFT Notification No. 13/2015-20: A notification issued by the Directorate General of Foreign Trade (DGFT) on June 28, 2017.
Directorate General of Foreign Trade: The organization issuing the notification and responsible for foreign trade regulation.
SCOMET: Special Chemicals, Organisms, Materials, Equipment and Technologies. It is related to export controls.
New Delhi: The location where the notification was issued.
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EXTRAORDINARY
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PART II—Section 3—Sub-section (ii)
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MINISTRY OF COMMERCE AND INDUSTRY
(Department of Commerce)
(DIRECTORATE GENERAL OF FOREIGN TRADE)
NOTIFICATION
New Delhi, the 21st September, 2017
No. 29 /2015-2020
Subject: Amendment in Appendix 3 (SCOMET items) to Schedule- 2 of ITC (HS) Classification
of Export and Import Items, 2012
S.O. 3087(E).— In exercise of the powers conferred by Section 5 and Section 14A of the Foreign Trade
(Development and Regulation) Act, 1992, as amended, read with Para 1.02 of the Foreign Trade Policy 2015-2020, the
Central Government hereby makes the following amendment, with immediate effect, in the Appendix 3 to Schedule -2 of
ITC (HS) Classifications of Export and Import Items as notified in DGFT Notification No. 5/2015-20 dated 24th April 2017
and No. 13/2015-20 dated 28.06.2017 : -
A. Under the heading “Items on the SCOMET List are organized in the following categories” :
(i) Category 2: Micro-organisms, toxins: The entry under Category 2H shall be substituted with the
following:
Genetic Elements and Genetically-modified Organisms’
(ii) Category 7 : Electronics, computers, and information technology including information security:
The entry against Category 7 containing sub-categories 7A, 7B, 7C, 7D and 7E and the entries relating
thereto shall be substituted with the with the following:
‘[Reserved]’
B. In the SCOMET Glossary after the definition of “Microprogram” and the entry relating thereto, the following
expression shall be inserted:-
‘ “Military use” shall mean incorporation into military items listed in SCOMET Categories 5D or 6 or for the
use, development, or production of military items listed in these categories’.
C. For SCOMET entry “2H Genetically Modified Organisms” and the entry “2H001”, the following shall be substituted:-
‘2H Genetic Elements and Genetically-modified Organisms:6 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(ii)]
2H001 Any genetically-modified organism which contains, or genetic element that codes for:
(1) Gene(s) specific to virus, bacterium, fungus, parasites or plant pathogens listed in Categories
2A, 2B, 2C, 2D and 2G and which
a. in itself or through its transcribed or translated products represents a significant hazard
to human, animal or plant health, or
b. could endow or enhance pathogenicity
(2) Toxin(s) or their sub-unit(s) listed in Category 2F.
Technical note:
(1) Genetically-modified organisms include organisms in which the nucleic acid sequences
have been created or altered by deliberate molecular manipulation.
(2) Genetic elements include, inter alia: chromosomes, genomes, plasmids, transposons,
vectors, and inactivated organisms containing recoverable nucleic acid fragments, whether
genetically modified or unmodified, or chemically synthesized in whole or in part. For the
purposes of the genetic elements control, nucleic acids from an inactivated organism, virus, or
sample are considered recoverable if the inactivation and preparation of the material is intended
or known to facilitate isolation, purification, amplification, detection, or identification of
nucleic acid(s).
(3) Endow or enhance pathogenicity is defined as when the insertion or integration of the
nucleic acid sequence(s) are likely to enable or increase a recipient organism's ability to be
used to deliberately cause disease or death. This might include alterations to (not limited to)
inter alia: virulence, transmissibility, stability, route of infection, host range, reproducibility,
ability to evade or suppress host immunity, resistance to medical countermeasures, or
detectability.’
D. In SCOMET entry 3D001(1), the following shall be inserted after entry 3D001(1)(ii)(h):-
‘ (iii) Prefabricated repair assemblies and their specially designed components, that:
a. are designed for mechanical attachment to glass-lined reaction vessels or reactors that meet the
parameters above; and,
b. have metallic surfaces that come in direct contact with the chemical(s) being processed which are
made from tantalum or tantalum alloys’.
E. Existing SCOMET entry 3D001(2) shall be re-numbered 3D001(2)(i) and thereafter the following shall be
inserted:-
‘ (ii) Prefabricated repair assemblies and their specially designed components, that:
a. are designed for mechanical attachment to glass-lined reaction vessels or reactors that meet
the parameters above; and,
b. have metallic surfaces that come in direct contact with the chemical(s) being processed which
are made from tantalum or tantalum alloys ’.
F. SCOMET entry 3D004 shall be substituted as follows:-
‘ 3D004 Toxic gas monitors and monitoring systems, and their dedicated detecting components as follows:
detectors; sensor devices; replaceable sensor cartridges; and dedicated software for such equipment;
a. designed for continuous operation and usable for the detection of chemical warfare agents or
Category 1 chemicals at concentrations of less than 0.3 mg/m³; or
b. designed for the detection of cholinesterase-inhibiting activity.’
G. SCOMET entry 3D006 shall be substituted as follows:-
‘ 3D006 Fermenters
(1) Fermenters capable of cultivation of micro-organisms or of live cells for the production of
viruses or toxins, without the propagation of aerosols, having a total internal volume of 20 litres
or greater;
(2) Components designed for such fermenters, as follows:-
a. cultivation chambers designed to be sterilized or disinfected in situ;
b. cultivation chamber holding devices; or¹Hkkx IIµ[k.M 3(ii)º Hkkjr dk jkti=k % vlk/kj.k 7
c. process control units capable of simultaneously monitoring and controlling two or more
fermentation system parameters (e.g. temperature, pH, nutrients, agitation, dissolved
oxygen, air flow, foam control).
Technical Note:
Fermenters include bioreactors (including single-use (disposable) bioreactors), chemostats and
continuous-flow systems. ’
H. In SCOMET 3D014, the following shall be inserted:-
‘3D014 Nucleic acid assemblers and synthesizers, which are partly or entirely automated, and designed to
generate continuous nucleic acids greater than 1.5 kilobases in length with error rates less than 5% in a
single run.’
I. SCOMET entry 4A007 shall be substituted as follows:-
‘Vacuum or other controlled atmosphere metallurgical melting and casting furnaces and related equipment,
as follows:-
a. Arc remelt furnaces, arc melt furnaces and arc melt and casting furnaces having both of the following
characteristics:-
1. Consumable electrode capacities between 1000 and 20000 cm³; and
2. Capable of operating with melting temperatures above 1973 K (1700 °C);
b. Electron beam melting furnaces, plasma atomisation furnaces and plasma melting furnaces, having
both of the following characteristics:
1. A power of 50 kW or greater; and
2. Capable of operating with melting temperatures above 1473 K (1200 °C);
c. Computer control and monitoring systems specially configured for any of the furnaces specified in
4A007.a. or 4A007.b;
d. Plasma torches specially designed for the furnaces specified in 4A007.b.having both of the following
characteristics:-
1. Operating at a power greater than 50kW; and
2. Capable of operating above 1473 K (1200°C);
e. Electron beam guns specially designed for the furnaces specified in 4A007.b.operating at a power
greater than 50kW. ’
J. After the SCOMET entry 4A031 and the entry relating thereto, the following entry shall be inserted :-
‘4A032 Target assemblies and components for the production of tritium as follows:-
a. Target assemblies made of or containing lithium enriched in the lithium-6 isotope specially
designed for the production of tritium through irradiation, including insertion in a nuclear reactor;
b. Components specially designed for the target assemblies specified in 4A032.a.
Technical Note:
Components specially designed for target assemblies for the production of tritium may include
lithium pellets, tritium getters, and specially-coated cladding.’
K. SCOMET entry 5C013 shall be substituted as follows:-
‘ 5C013
a. Radiation Hardened microcircuits usable in protecting rocket systems, unmanned aerial vehicles
and cruise missiles against nuclear effects (e.g. electro-magnetic pulse (EMP), X-rays,
combined blast and thermal effects);
b. Analogue-to-digital converters, usable in the systems specified in 5A, having any of the
following characteristics:
1. Designed to meet military specifications for ruggedised equipment; or
2. Designed or modified for military use and being any of the following types:
(i) Analogue-to-digital converter "microcircuits", which are "radiation hardened" or
have all of the following characteristics:
a. Rated for operation in the temperature range from below -54◦C to above
+125◦C; and
b. Hermetically sealed;
or8 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(ii)]
(ii) Electrical input type analogue-to-digital converter printed circuit boards or
modules, having all of the following characteristics:
a. Rated for operation in the temperature range from below -45◦C to above
+80◦C; and
b. Incorporating "microcircuits" specified in 5C013.b.2.(i)’
L. The SCOMET entry against Category 7 containing sub-categories 7A, 7B, 7C, 7D and 7E and the entries relating
thereto shall be substituted with the with the following:
‘[Reserved]’
M. SCOMET entry 8A301 b shall be substituted as follows:-
‘ 8A301b Microwave or millimetre wave items, as follows:-
Technical Notes
1. For purposes of 8A301.b, the parameter peak saturated power output may also be referred to
on product data sheets as output power, saturated power output, maximum power output, peak
power output, or peak envelope power output.
2. For purposes of 8A301.b 1, 'vacuum electronic devices' are electronic devices based on the
interaction of an electron beam with an electromagnetic wave propagating in a vacuum circuit
or interacting with radio-frequency vacuum cavity resonators. 'Vacuum electronic devices'
include klystrons, travelling-wave tubes, and their derivatives.
3. 'Vacuum electronic devices' and cathodes, as follows:-
Note 1: 8A301.b 1 does not apply to 'vacuum electronic devices' designed or rated
for operation in any frequency bands and having all of the following:-
a. Does not exceed 31.8 GHz; and
b. Is "allocated by the ITU" for radio-communications services, but not
for radio-determination.
Note 2: 8A301.b.1 does not apply to non-"space-qualified" 'vacuum electronic
devices' having all of the following:
a. An average output power equal to or less than 50 W; and
b. Designed or rated for operation in any frequency band and having
all of the following:-
1. Exceeds 31.8 GHz but does not exceed 43.5 GHz; and
2. Is "allocated by the ITU" for radio-communications services,
but not for radio determination.”
2. Effect of this Notification:-
Appendix 3 (SCOMET items) to Schedule - 2 of ITC (HS) Classification of Export and Import Items, 2012 has
been amended.
[F. No. 01/91/171/73/AM10/EC]
ALOK VARDHAN CHATURVEDI, 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.