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The Directorate General of Foreign Trade invites stakeholder comments on proposed amendments to procedures for export authorization for the stock and sale of SCOMET items. Relevant stakeholders must submit proposals and recommendations within ten days of the trade notice. The amendments revise the policy scope to allow exports from an Indian exporter to a foreign subsidiary, parent company, or original equipment manufacturer for subsequent transfer to ultimate end users.
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Government of India Ministry of Commerce and Industry Department of Commerce Directorate General of Foreign Trade
Dated: $12^{\text{th}}$ March, 2025 Vanijya Bhawan, New Delhi
Trade Notice No. 33/2024-25
To,
Subject: Inputs on Draft Amendments in Procedures for Export Authorization for "Stock and Sale" of SCOMET items -reg
Reference is drawn to Para 10.10 of Chapter 10 of the Handbook of Procedures (HBP) 2023, which outlines provisions for granting authorization for bulk export of SCOMET items from an Indian exporter to an entity abroad ('stockist') for subsequent transfer to the ultimate end users.
In line with Para 1.07A of FTP 2023, which provides for consultation with stakeholders during the formulation or amendment of Foreign Trade Policy, draft amendments to Para 10.10 of HBP 2023 have been formulated and are enclosed as an Annexure to this Trade Notice. This Directorate invites views, suggestions, comments, and feedback from relevant stakeholders, including exporters, industry associations, and experts on the proposed amendments.
Stakeholders are requested to submit proposals, recommendations, or inputs to this Directorate for examination within 10 days from the issuance of this Trade Notice. Submissions may be made via email to scomet-dgft@gov.in.
This Trade Notice is issued with the approval of the competent authority in accordance with the provisions of Para 1.07A of FTP 2023.
(Md. Moin Afaque) Joint DGFT
(Issued from F.No. 01/91/171/37/AM10/EC(S))
Annexure: Draft Public Notice for amendments in Para 10.10 of Handbook of Procedures
Public Notice No. /2024-2025 New Delhi, Dated the
Subject:- Amendments in Para 10.10 of Handbook of Procedures for issue of export authorization for "Stock and Sale" of SCOMET items
In exercise of the powers conferred under Paragraph 1.03 of the Foreign Trade Policy, 2023, the Director General of Foreign Trade, hereby makes amendments to Paragraph 10.10 (Stock and Sale) of the Handbook of Procedures (HBP) of the Foreign Trade Policy (FTP) 2023, with immediate effect.
"10.10 Issue of export authorization for "Stock and Sale" of SCOMET items
Application for grant of authorization for bulk export of SCOMET items (excluding Category 0, Category 3A401, Category 6 and transfer of technology under any category) from an Indian exporter to an entity abroad (hereinafter referred to as ‘Stockist’) for subsequent transfer to the ultimate end users shall be considered by IMWG, on the following conditions:
Applicability and scope of policy
a. Stockist refers to an entity abroad to whom the SCOMET items are originally exported by Indian Exporter. Stockist entity should be a subsidiary/principal (parent) company abroad of the Indian exporter. The stockist entity could also be an affiliate of the Indian Exporter, Indian or Foreign Original Equipment manufacturer(OEM)/Electronic Manufacturing Services (EMS)/Contract Manufacturer(CM)*.
* This could be considered based on additional documents submitted by the Indian company such as AEO certification, contract / agreement between the Indian company and its Original Equipment Manufacturer, etc.
For the purpose of this policy, EMS is defined "as a business service provided by companies that specialize in the manufacturing, assembly, testing, return, repair and sometimes design of electronic products for OEMs. These providers are responsible for assembling electronic components and devices based on the customer’s specifications, and the services are often provided at a cost-effective price compared to setting up internal manufacturing facilities."
b. Export shall be permitted from the Indian company (applicant exporter) to ‘Stockist’ entity on the basis of an End Use declaration from the ‘Stockist’, through the specified End User Certificate (EUC) for 'Stock & Sale' purpose;
Note: IMWG may relax the provisions of a. and b. above in certain cases, considering the description/end use/end user of the item.
Application for export to stockist abroad and transfer to end users in specific countries
c. The exporter shall submit application in prescribed proforma (ANF-10B) along with following documents from the stockist:
In-principle approval for export to the stockist, and, for sale by stockist within the country of the stockist, and, for re-export by stockist to end user in other countries
d. The application would be assessed for grant of authorization for export to the stockist, and, for grant of in-principle approval for re-export to specified countries of ultimate end use approved by the IMWG; e. No authorization would be required for transfer from the stockist to the ultimate end user(s) within the country of the stockist and for re-export to end users in such approved countries; f. Re-export to such approved countries would be subject to the export control regulations of the country of the stockist; g. Country would denote an independent sovereign entity which is a distinct national entity in political geography. Hence, transfers within an economic union or a customs union would not qualify as “same country transfers”;
Post-reporting for same country transfer and re-export to pre-approved countries by the stockiest
h. In case of sale/transfer by the stockist within the same country and for re-export/re-transfer to the end users in countries, for which, in-principle approval has been granted, the Indian exporter/licensee shall submit details of all such transfers to SCOMET Division of DGFT (Hqrs) in ANF-10B, including EUCs[Appendix-10J(i), 10J(ii) as applicable] from all ultimate end users and Bill of Entry into the ultimate destination countries(for export outside the country of stockist), within 3 months of every such transfer;
Application for re-export to other countries (other than pre-approved)
i. In respect of re-export/re-transfer of items from the stockist entity to the end users outside the country of the stockist, for which, in-principle approval has not been granted at the initial stage, the Indian exporter (stock and sale authorization holder) shall submit application for re-export/re-transfer to SCOMET Division in DGFT (Hqrs), in ANF 10B, through email (scomet-dgft@nic.in), after obtaining following documents from the stockist entity:
