Executive Summary:
This notification, issued by the Directorate General of Foreign Trade on February 17, 2017, amends the export licensing requirements for military stores. It revises Category MS007 within the ITCHS classification to exclude "soft-skinned vehicles" from the list of military stores requiring a No Objection Certificate (NOC) from the Department of Defence Production for export purposes. The amendment takes immediate effect.
Key Points / Main Content:
* **Amendment of Export Licensing Note:**
* Category MS007 in the Export Licensing Note of Table A of Schedule 2 of ITCHS Classification of Export and Import Items is substituted.
* MS007 now includes specific military ground vehicles and components designed or modified for military use, such as tanks, armed vehicles, amphibious vehicles, recovery vehicles, and mine-protected vehicles.
* **Exclusion of Soft-Skinned Vehicles:**
* Vehicles that are neither armored nor intended to be modified as armored vehicles in the future ("soft-skinned vehicles") are excluded from Category MS007.
* **Purpose of the Notification:**
* To amend Category MS007 in the Export Licensing Note of Table A of Schedule 2 of ITCHS Classification of Export and Import Items.
* To remove soft-skinned vehicles from the requirement of obtaining a NOC from the Department of Defence Production for export.
Impact Analysis:
* **Exporters of Military Stores:**
* Impact: Exporters of military stores, specifically those dealing with "soft-skinned vehicles," will no longer be required to obtain a NOC from the Department of Defence Production.
* Action Required: Exporters should take note of the amended classification and ensure their exports align with the new regulations, specifically regarding "soft-skinned vehicles."
* **Department of Defence Production:**
* Impact: The Department of Defence Production will no longer be responsible for issuing NOCs for the export of "soft-skinned vehicles."
* Action Required: Update internal procedures to reflect the change in NOC requirements for military stores exports.
Key Entities Referenced
Foreign Trade Policy, 2015-2020: A policy governing foreign trade, referenced in the context of amendments and regulations.
Foreign Trade Development and Regulation Act, 1992: An act governing the development and regulation of foreign trade, mentioned as the source of powers exercised by the Central Government.
Directorate General of Foreign Trade: The issuing authority for the notification, under the Ministry of Commerce and Industry.
Ministry of Commerce and Industry: The ministry under which the Department of Commerce and the Directorate General of Foreign Trade operate.
New Delhi: Location of issuing authority, Directorate General of Foreign Trade, Delhi, India
Ajay Kumar Bhalla: Director General of Foreign Trade, the signatory of the notification.
ITCHS Classification of Export and Import Items: A classification system for export and import items, specifically Schedule 2 and Table A, which are being amended.
Department of Defence Production: The department from which a No Objection Certificate (NOC) is required for the export of certain military stores.
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MINISTRY OF COMMERCE AND INDUSTRY
(Department of Commerce)
(DIRECTORATE GENERAL OF FOREIGN TRADE)
NOTIFICATION
New Delhi, the 17th February, 2017
No. 38/2015-2020
Subject:- Amendment in the list of Military Stores requiring NOC for export purposes
S. O. 520(E).—In exercise of the powers conferred by Section 5 read with Section 3(2) of the Foreign Trade
(Development & Regulation) Act, 1992, as amended, read with Para 1.02 and Para 2.01 of the Foreign Trade Policy,
2015-2020, as amended from time to time, the Central Government hereby makes the following amendment in the
Export Licensing Note of Table A of Schedule 2 of ITC(HS) Classification of Export and Import Items with immediate
effect:
1. Category MS 007 in the Export Licensing Note of Table A of Schedule 2 of ITC(HS) Classification of Export
and Import Items stands substituted as follows:-
“MS007: 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.
Note: MS007 does not include soft skinned vehicles i.e. the vehicles which are neither armoured nor
intended to be modified as an armoured vehicle in future”
2. Effect of this notification:
This notification seeks to amend Category MS 007 in the Export Licensing Note of Table A of Schedule 2 of
ITC(HS) Classification of Export and Import Items thereby excluding ‘Soft Skinned Vehicles’ from the purview
of the list of Military Stores requiring NOC from Department of Defence Production for export purposes.
[ F. No. 01/91/171/73/AM14/EC]
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.