Date: 2018-07-03Category: Extra OrdinaryState: Union GovernmentCountry: India
The Foreign Trade Policy (FTP) 2015 20 amendments in Paragraph 2.74 and Para 2.79A of the Handbook of Procedures (HBP) of FTP 2015 20 with immediate effect.
Executive Summary:
This public notice, issued by the Directorate General of Foreign Trade on July 3, 2018, announces amendments to the Handbook of Procedures (HBP) of the Foreign Trade Policy (FTP) 2015-20. The amendments concern Paragraph 2.74, related to the Inter-Ministerial Working Group and Paragraph 2.79A, related to the Stock and Sale of SCOMET items, and take immediate effect.
Key Points / Main Content:
Amendment to Paragraph 2.74: Inter-Ministerial Working Group
* Revised Paragraph 2.74 addresses the applicability of provisions of relevant bilateral or multilateral agreements and arrangements to which India is a party or adherent.
* This includes, but is not limited to, the control lists of the Nuclear Suppliers Group, Missile Technology Control Regime, Australia Group (including its Warning List or Awareness Raising Guidelines), and Wassenaar Arrangement (including its Sensitive List and Very Sensitive List) as amended from time to time.
Amendment to Paragraph 2.79A: Stock and Sale of SCOMET Items
* Revised Paragraph 2.79A states that applications for authorization for export of SCOMET items for stock and sale purposes will not be considered for items falling in Categories 0 and 6 of the SCOMET list.
Effect of the Public Notice:
* Paragraph 2.74 of the HBP of FTP 2015-20 is amended to include the Warning List or Awareness Raising Guidelines of the Australia Group.
* Paragraph 2.79A of the HBP of FTP 2015-20 is amended to allow the export of Category 1C chemicals under the stock and sale policy, which was previously not permitted for export along with items under Categories 0 and 6.
Impact Analysis:
Exporters:
* Impact: Exporters of SCOMET items, particularly those dealing with items in Categories 0, 1C, and 6, are directly affected by the changes to export authorization rules for stock and sale purposes.
* Action Required: Exporters should review their practices regarding the export of SCOMET items and ensure compliance with the revised guidelines, especially concerning Categories 0, 1C, and 6 items.
Directorate General of Foreign Trade (DGFT):
* Impact: The DGFT is responsible for implementing and enforcing the amended policies related to export controls and must ensure that relevant procedures align with the updated guidelines.
* Action Required: The DGFT must update its internal procedures and communicate the changes to relevant stakeholders, including customs officials and export promotion agencies.
Inter-Ministerial Working Group:
* Impact: The group must account for the changes to include the Warning List or Awareness Raising Guidelines of the Australia Group.
* Action Required: The Inter-Ministerial Working Group should update internal procedures.
Key Entities Referenced
Foreign Trade Policy FTP 2015-20: A government policy related to foreign trade, spanning the years 2015 to 2020.
Directorate General of Foreign Trade: The organization responsible for managing and implementing foreign trade policies.
Handbook of Procedures: A document providing detailed procedures and guidelines for the Foreign Trade Policy.
Nuclear Suppliers Group: A multinational body concerned with reducing nuclear proliferation by controlling the export and re-transfer of materials that could be used for nuclear weapons development.
Missile Technology Control Regime: An informal political arrangement among states that seek to limit the proliferation of missiles and missile technology.
Australia Group: An informal forum of countries which, through the harmonisation of export controls, seeks to ensure that exports do not contribute to the development of chemical or biological weapons.
Wassenaar Arrangement: A multilateral export control regime that aims to promote transparency and greater responsibility in transfers of conventional arms and dual-use goods and technologies.
SCOMET: Special Chemicals, Organisms, Materials, Equipment and Technologies list - items controlled under export regulations.
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MINISTRY OF COMMERCE AND INDUSTRY
(Department of Commerce)
(DIRECTORATE GENERAL OF FOREIGN TRADE)
PUBLIC NOTICE
New Delhi, the 3rd July, 2018
No. 19 /2015-2020
Subject: Amendment to Paragraph 2.74 and Para 2.79A of the Handbook of Procedures of the Foreign Trade
Policy (FTP) 2015-20.
F.No. 01/91/171/37/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
2.74 and Para 2.79A of the Handbook of Procedures(HBP) of FTP 2015-20, with immediate effect:
The revised Paragraph 2.74 I (f) relating to 'Inter Ministerial Working Group' of the HBP of FTP 2015-20
would be substituted to read as under:-
‘Applicability of provisions of relevant bilateral or multilateral Agreements and Arrangements, to which India is a
party, or adherent. This is including but not limited to the control lists of the Nuclear Suppliers Group, Missile
Technology Control Regime, Australia Group (and its Warning List or Awareness Raising Guidelines) and Wassenaar
Arrangement (and its Sensitive List and Very Sensitive List) as amended from time to time'.
The revised Paragraph Para 2.79A (a)(iv) relating to "‘Stock and Sale’ of SCOMET items" the HBP of FTP
2015-20 would be substituted to read as under:-
‘No application for authorisation for export of SCOMET items for ‘stock and sale’ purpose would be considered for
items falling in Categories 0 and 6 of the SCOMET list’.
2. Effect of this Public Notice:
a. Paragraph 2.74 of the Handbook of Procedures of FTP 2015- 20 has been amended to include Warning List
or Awareness Raising Guidelines of Australia Group;
b. Para 2.79A of the Handbook of Procedures of FTP 2015- 20 has been amended to allow export of Category
1C chemicals under ‘stock and sale’ policy, which was earlier not permitted for export, alongwith items
under Category 0 and 6.
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.