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

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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