DGFT Clarification on Validation period of export authorizations for SCOMET items

Government of India
Ministry of Commerce and Industry
Department of Commerce
Directorate General of Foreign Trade

New Delhi dated 31st August 2020

Trade Notice No. 26/2020-21

To

1. RAs of DGFT
2. Trade Bodies
3. Members of Trade

Subject: Policy on re-validation to export authorizations for SCOMET items, by DGFT Hqrs – Clarification – reg.

In terms of DGFT’s Public Notice No. 10/2015-20 dated 8th June 2020 [Para 2.20(b) of HBP of FTP 2015-20], re-validation to export authorizations for SCOMET items is considered on merits by the DGFT(Hqrs) for six months at a time and maximum upto twelve months. One of the main grounds for considering revalidation to export authorizations is to meet left over export obligation in quantity or value terms.

2. Subsequent to issue of the said Public Notice, the DGFT (Hqrs) has received a large number of requests from industry seeking re-validation to export authorization issued for technology/software transfer on the grounds that export of technology/software is ongoing and continuous process, and within the scope of the terms and conditions agreed to between the parties.

DGFT Clarification on Validation period of export authorizations for SCOMET items

3. The issue has been examined in consultation with Inter-ministerial working Group and has been decided that export obligation can not be quantified in terms of item or value of exports in technology/software Hence revalidation to such export authorisations need not be considered. However, taking into consideration that exports do not suffer, it has been decided to grant only one extension of six months , as a one time relief in all SCOMET export authorisations involving technology transfer (under any category of SCOMET) expiring by 30.09.2020, on submission of application in prescribed Performa to DGFT(hHrs).

4. Henceforth, validity period of SCOMET export authorizations for transfer of technology/software under any category of SCOMET shall be twenty four months only or validity period of export authorization allowed in terms of Para 2.16 of HBP of FTP 2015-20. No subsequent revalidation in such authorizations shall be permissible.

5. This issues with the approval of Competent Authority.

(Sanjay Kumar Tiwari)

Dy. Director General of Foreign Trade

[Issued from File No. 01/77/180/03/AM20/EC(S) – E-file No 18113)]