DGFT Notifies Amendment in Procedures for GAICT of SCOMET Items including Software and Technology

The Directorate General of Foreign Trade (DGFT) vide Public Notice No. 14 /2015-20 dated 13th June 2022 notifies Amendment in Paragraph 2.79F in the Handbook of Procedures of the Foreign Trade Policy (FTP) 2015-20 to lay down the procedure for Global Authorization for Intra-Company Transfer (GAICT) of SCOMET items/software/technology.

The Notification is Given Below:

In exercise of the powers conferred under Paragraph 1.03 of the Foreign Trade Policy (FTP) 2015-20, the Directorate General of Foreign Trade (DGFT) hereby makes amendments in Paragraph 2. 79 F to Handbook of Procedures (I-IBP) of FTP 2015-20 with immediate effect.

2. Existing entry at sub-Para 2.79F of the IIBP of FTP 2015-20 shall be substituted as under:

“Para 2.79F – Global Authorisation for Intra-Company Transfers (GAICT) of SCOMET Items/ Software/Technology

A. Scope and Eligibility: Pre-export authorization will not be required, for export and/or re-export of SCOMET items including software and technology under SCOMET Category 8 (except items listed in Annexure-I), subject to the following conditions:

i. where the export is an Intra-company transfer from the Indian parent company (applicant exporter) to its foreign subsidiary company or from the Indian subsidiary of foreign company (applicant exporter) to its foreign parent/another subsidiary of foreign parent company and;

Note: in case of third party involvement in the supply chain, the end user has to be a foreign parent I another subsidiary of foreign parent company or a subsidiary company of Indian company.

ii. where the transfer fulfils the conditions mentioned at (a) to (f) below:

a. The items/software/technology to be exported/re-exported is based on a Master Service Agreement / Contract between the Indian parent company/Indian subsidiary of foreign company and foreign subsidiary of Indian company/foreign parent company of Indian subsidiary for carrying out certain services but not limited to design, encryption, research, development, delivery, validation, calibration, testing, related services, etc.;

Note 1: As a result of the service carried out by the Indian exporter in case of re­export, the items/ software/technology should not undergo change in classification.

Note 2: The list of services mentioned above is illustrative, not exhaustive. However, the final decision to approve a GAICT authorization lies with the relevant authority.

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