Inputs on Amendments for Export of SCOMET Items for ‘Testing and Evaluation’ purposes

Annexure: Draft Public Notice for amendments in Para 10.13 of Handbook of Procedures (To be Published in the Gazette of India Extraordinary Part-I Section-I) Government of India Ministry of Commerce & Industry Department of Commerce Directorate General of Foreign Trade Vanijya Bhawan, New Delhi Public Notice No. /2025-26 New Delhi, Dated , 2025

Subject: Amendment in Paragraph 10.13 of HBP 2023 – Export of SCOMET Items for ‘Testing and Evaluation’ purposes- reg S.O(E): In exercise of the powers conferred under Paragraph 1.03 & 2.04 of the Foreign Trade Policy

(FTP) 2023, as amended from time to time, the Director General of Foreign Trade (DGFT) hereby makes the following amendments in Paragraph 10.13 of Handbook of Procedures (HBP) 2023, with immediate effect - HBP Para Existing Text Revised Text

10.13(A) Title Authorisation for export of Authorization for export of indigenous/imported SCOMET item(s) indigenous/imported SCOMET item(s) for fordemo/display/exhibition/tender/RFP display/exhibition/tender/RFP/RFQ /NIT / RFQ/NIT abroad. abroad.

10.13(A).i Authorizations for export of items in Authorizations for export of items in SCOMET List (other than those under SCOMET List (other than those under Category 0, 1, 2 and 6 or ‘Technology’ or Category 0, 1, 2 and 6 or ‘Technology’ or ‘Software’ in any category) solely for ‘Software’ in any category) solely for purposes of (a) Demo (b) Display (c) purposes of (a) Display (b) Exhibition (c) Exhibition (d) Tenders/RFP/RFQ/NIT shall Tenders/RFP/RFQ/NIT shall be considered be considered by Chairman IMWG, on by Chairman IMWG, on the following

the following conditions: a-g conditions:

10.13.A.h. Legal Undertaking on the stamp paper of Legal Undertaking on the stamp paper (as Rs. 200/-, in prescribed proforma prescribed by the State Government from (Appendix 10K); where the Legal Undertaking is executed) in prescribed proforma (Appendix 10K);

10.13(A).ii. Return of item(s) and post-reporting Return of item(s) and post-reporting

compliance: compliance:

(a) Exported items shall be brought back (a) Exported items shall be brought back toto India within 90 days after the event India within 120 days after the event gets gets over or within the extended time, as over or within the extended time, as allowed by the DGFT; allowed by DGFT;

10.13(B) Authorisation for export of imported Authorisation for export of imported Title SCOMET items after participation in SCOMET items after participation in demo/display/exhibition/tenders/ demo/display/exhibition/tenders/testing/ev RFP/RFQ/NIT in India. aluation/RFP/RFQ/NIT in India.

10.13(B.a) The SCOMET item(s) were imported in The SCOMET item(s) were imported in India India for the purpose of for the purpose of demo/display/ demo/display/exhibition/tender/RFP/RFQ/exhibition/tender/testing/evaluation/ /NIT under a contract agreement RFP/RFQ/NIT under a contract agreement between Indian exporter and between Indian exporter and supplier/OEM supplier/OEM(including agency (including agency authorized by OEM);

authorized by OEM);

10.13(B.e) i. Proof of import of item(s): i. Proof of import of item(s):

Appendix 10H(i) a. Bill of entry containing details of the a. Bill of entry containing details of the items being exported after completion of items being exported after completion of Demo/Display/Exhibition/ Demo/Display/Exhibition/tender/ tender/RFP/RFQ/NIT; Testing/Evaluation/ RFP/RFQ/NIT.

b. Export License (if applicable) issued by b. Export License (if applicable) issued by the foreign country for original import of the foreign country for original import of the items to India; the items to India;

c. Documentary evidence and/or self- declaration confirming that the item imported for this purpose is either exempt from export licensing requirements in the country of origin or has complied with the license requirement for export to India.

Appendix - No technical value addition has been done 10H(iii)(g) during the testing and evaluation.

2. A new Paragraph 10.13(C) is inserted in the HBP 2023 as under:

10.13(C) Authorization for export of indigenous/imported SCOMET item(s) for Demonstration, Testing and Evaluation abroadAuthorizations for export of items in SCOMET List (other than those under Category 0, 1, 2 and 6 or ‘Technology’ or ‘Software’ in any category) solely for purposes of (a)Demonstration, (b) Testing, and (c) Evaluation shall be considered by Chairman IMWG, on the following conditions:

a. Such cases would be considered purely on temporary export basis for a specified time period. b. No end user certificate would be insisted upon in such cases. c. There shall not be any commercial transaction in the form of selling/buying/renting/leasing.

d. The number of item(s) should be commensurate with the nature of export items and the purpose for which the application is being made. e. There shall not be any exchange/disclosure of information which could lead to transfer of technology.

f. No export authorisation would be granted for UNSC sanctioned destinations or countries /entities of high risk, as assessed by the IMWG, from time to time. g. The application is accompanied with the following additional documents {depending on whichever is applicable as per Appendix 10G(i)}:

i. Proof of event (Demonstration, Testing and Evaluation) a. Justification for testing and evaluation of the item(s) along with proof of consent from respective agencies are to be submitted. (as applicable) b. Invitation letter/any other document (as applicable) to

authenticate: i. the event or purpose of participation. ii. schedule (in case dates not decided, probable time period). iii. specific location of event [venue, city, country etc.] ii. Proof of participation:

Documents confirming participation of applicant in the event (Demonstration/ Testing/ Evaluation) iii. An undertaking from the applicant firm:

An Undertaking on the letter head of the firm duly signed and stamped by the

authorized signatory stating: a. Purpose of export, details of invitee along with schedule and specific location of event b. Details of items to be exported for Demonstration, Testing and Evaluation, along with their SCOMET Category /Sub-category number(s), quantity and item description.c. that the exported items will be in the custody of the exporter during the entire period of export;

d. that the exported items shall be brought back to India within 120 days after the event gets over or within the extended time, as allowed by DGFT; e. that the Bill of Entry confirming the return back of the exported items to India shall be submitted to DGFT within 2 months of the date of import.

f. if the items are consumed or destroyed during demonstration, testing and evaluation, proof of the same from the testing/concerned agency will be submitted within 2 months of the date of destruction/consumption.

g. In case the items are consumed, then the Indian exporter shall submit the End User Certificate to that effect. h. No technical value addition is being done in the item during testing and evaluation.

(iv) Legal Undertaking signed and stamped in format Appendix 10K. h. No technical value addition of the export item will be allowed during testing and evaluation. i. Applications for grant of authorizations shall be approved by Chairman, IMWG after verifying the credentials of the event/organizer/testing or evaluation agency.

Effect of this Public Notice: Provision for Export of SCOMET Items for ‘Testing and Evaluation’ purposes is included under Para 10.13(C) of HBP 2023 with immediate effect.

Director General of Foreign Trade Ex-officio Additional Secretary to the Government of India E-mail: dgft@nic.in (Issued from F.No.01/91/180/18/AM-17/EC)