Executive Summary:
This public notice announces amendments to Paragraph 2.72 b of the Handbook of Procedures (HBP) of the Foreign Trade Policy (FTP) 2015-2020, effective immediately. The amendment pertains to the inclusion of the definition of "Military use" in the context of catch-all controls in exports. It mandates exporters to apply for a SCOMET license if they are aware of potential risks related to items not covered in the SCOMET list.
Key Points / Main Content:
* **Amendment Details:**
* Paragraph 2.72 b of the HBP of FTP 2015-2020 is amended with immediate effect.
* The revised paragraph mandates that if an exporter is notified by DGFT, knows, or has reason to believe that an item not on the SCOMET list has potential use in weapons of mass destruction (WMD), missile systems, or military applications (including by terrorists and non-state actors), they must apply for a SCOMET license.
* Export of such items may be denied or permitted per the procedure for SCOMET items in Paragraph 2.73.
* **Definition of Military Use:**
* Military use includes incorporating items into SCOMET Categories 5D or 6, or using, developing, or producing military items listed in these categories.
* **Purpose of Amendment:**
* The amendment includes a definition of "Military use" related to catch-all controls in exports.
Impact Analysis:
* **Exporters:**
* Impact: Exporters must be vigilant about the potential end-use of items not explicitly listed in the SCOMET list, particularly regarding military applications or diversion to WMD or missile systems. Increased scrutiny of export items.
* Action Required: Apply for a SCOMET license if there is a known or suspected risk of the item being used for military purposes or diverted to WMD or missile systems, even if the item is not covered in the SCOMET list.
* **Directorate General of Foreign Trade (DGFT):**
* Impact: DGFT is responsible for enforcing the amended policy and processing SCOMET license applications related to items with potential military use.
* Action Required: Implement the amended policy, assess SCOMET license applications, and notify exporters when necessary.
Key Entities Referenced
Alok Vardhan Chaturvedi: Director General of Foreign Trade.
New Delhi: The location where the public notice was issued.
Foreign Trade Policy 2015-20: A policy document governing foreign trade, referred to as FTP 2015-20.
Handbook of Procedures: A document providing detailed procedures related to the Foreign Trade Policy (FTP). Abbreviated as HBP.
Directorate General of Foreign Trade: The agency responsible for managing foreign trade policy. Abbreviated as DGFT.
SCOMET: An acronym that refers to a list of items whose export is controlled due to their potential use in weapons of mass destruction or military applications.
Weapons of Mass Destruction: Refers to weapons with the potential to cause widespread devastation. Abbreviated as WMD.
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5809 GI/2017 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART I—SEC. 1]
MINISTRY OF COMMERCE AND INDUSTRY
(Department of Commerce)
(DIRECTORATE GENERAL OF FOREIGN TRADE)
PUBLIC NOTICE
New Delhi, the 21st September, 2017
No. 27 /2015-2020
Subject :— Amendment to Paragraph 2.72 (b) of the Handbook of Procedures of the Foreign
Trade Policy (FTP) 2015-20.
F. No. 01/91/171/73/AM10/EC.— In exercise of the powers conferred under Paragraph 1.03 of the Foreign
Trade Policy(FTP) 2015-20, the Director General of Foreign Trade (DGFT) hereby makes amendments in
Paragraph 2.72 (b) of the Handbook of Procedures (HBP) of FTP 2015-20 read with Public Notice No 4/2015-20
dated 24th April 2017, with immediate effect:
The revised Paragraph 2.72 (b) of the HBP of FTP 2015-20 would be substituted to read as under:-
‘(b) If the exporter has been notified in writing by DGFT or he knows or has reason to believe that an item
not covered in the SCOMET list has a potential risk of use in or diversion to weapons of mass destruction
(WMD) or in missile system or military use (including by terrorists and non-state actors), he shall apply for a
SCOMET license. The export of such an item may be denied or permitted as per the procedure provided for
SCOMET items in Paragraph 2.73.
Note: “Military use” shall mean incorporation into items listed in SCOMET Categories 5D or 6 or for the
use, development, or production of military items listed in these categories.’
2. Effect of this Public Notice:
Paragraph 2.72 (b) of the Handbook of Procedures of FTP 2015- 20 has been amended to include definition of
“ Military use’’ in the context of catch-all controls in exports.
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.