DGFT Notifies inclusion of Paragraph 2.79C (D) in Handbook of Procedures of FTP to notify procedure for GAER

The Directorate General of Foreign Trade(DGFT) has notified Inclusion of Paragraph 2.79C (D) in the Handbook of Procedures of the Foreign Trade Policy (FTP) 2015-20 to notify the procedure for General Authorisation for Export after Repair in India (GAER) via issued public notice.

The Public Notice has provided, “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 amendment to Handbook of Procedures (HBP) of FTP 2015-20 for inclusion of new entry at Paragraph 2.79C (D) with immediate effect.”

After Sub Para 2.79C (C) of the HBP of FTP 2015-2020, a new entry shall be inserted as under:

“D. Authorization for export of same imported SCOMET items to same entity abroad under General Authorization for Export after Repair in India (GAER)”

A. Export of imported SCOMET items to the same entity abroad after repair in India will be allowed on the basis of a onetime General authorization for Export after Repair in India (GAER) subject to post reporting on quarterly basis issued by DGFT, subject to the following conditions:

a. The SCOMET items were imported to a designated/authorized repair facility in India for the purpose of repair under a contract agreement/Master Service agreement (MSA); or Imported under a contract agreement between Indian exporter, entities of repair facility (if different from exporter) and entity abroad defining ‘ Statement of Work (SOW)’/ ‘ Scope of Work’ including conditions for undertaking repair in India;

b. The items are to be exported to the same entity and location abroad from which the item(s) has/have been imported;

c. The exporter is required to register and obtain General authorization for export after repair only once during the validity period. Subsequent export/re-export is subject to post reporting;

d. The exporter is required to provide Bill of Entry for the imported item while applying for GAER for the first shipment.

e. General authorization for export after repair shall be valid for a period of one year from the date of issue of General authorization subject to subsequent post reporting(s) within 30 days from the date of such export;

f. Subsequent export would be allowed to the same entity and location to which the license has originally been issued. Note: Same entity would imply that (a) foreign buyer {b) consignee or intermediaries, if any (c) the end user are exactly the same for which authorisation has been issued to the applicant exporter.

g. There has been no change to the original characteristics/specifications of the SCOMET item(s) after repair and no value addition has been done during the repair work;

h. No Export Authorisation would be granted when the initial export authorisation has been suspended, modified or revoked by country of import;

i. 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;

J. No details of ‘End Use’ and ‘End Use Certificate’ would be required;

k. GAER issued for specific item and specific entity (buyer/end user) shall not be applicable in case the re-export is of a different imported item or to a different entity or Authorised OEM. In such cases, either a new GAER authorization may be applied or application may be filed under Para 2.79 C (C) of HBP.

B. Documents Required for GAER

1. Proof of import of the item(s):

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

b. Documentary proof and/or self declaration that the item exempted from license requirement or place under no license requirement for India.

c. Bill of Entry (first time)

2. Proof of obligation for repair of defective/damaged items:

Contract agreement and/or ‘Statement of Work (SOW)’ I Master Service agreement (MSA) between Indian exporter and with the entity abroad (from which the goods were imported initially) defining conditions for undertaking repair in India.

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