Procedure to Apply SCOMET License

SCOMET license is one of the key compliance requirements of Indian SCOMET exporters. SCOMET policy tries to regulate the exportation of dual-use products (dual-use products having both civilian and military applications), like munitions, nuclear materials, software, and technology, via strict SCOMET policy regulations. For foreign trade, commercial organizations engaged in trade must possess a valid SCOMET license before shipping any item under the SCOMET list, according to DGFT regulations. SCOMET license application procedure, along with making a SCOMET declaration and adhering to the SCOMET declaration format, constitutes an addendum to export compliance for the controlled goods and technology. Being aware of SCOMET policy, requirement of SCOMET license, and proper procedure to file a SCOMET declaration forms the core part of an exporter's regulatory obligation, especially of enterprises aspiring for trouble-free, risk-free export of controlled goods.

What is SCOMET?

SCOMET is an acronym for Special Chemicals, Organisms, Materials, Equipment, and Technologies. SCOMET is India's national list of export controls with the aim of regulating sensitive items export in harmony with global non-proliferation and export control regimes. SCOMET policy guidelines are prepared under Chapter 10 of the Foreign Trade Policy (FTP) and the Handbook of Procedures (HBP) thereof.

All organizations with an intention to export items covered under the SCOMET category are compelled to acquire a SCOMET license from the respective licensing authority. This would encompass items for use in civilian as well as dual-use purposes, allowing regulated and secure international trade of sensitive material and technology.

SCOMET Categories

The SCOMET List is also divided into nine categories of goods from Category 0 to Category 8. Category 7 is temporarily reserved and not held by goods:

0. Nuclear material, nuclear-related other material, equipment and technology

1. Chemicals, chemical-related other chemicals

2. Micro-organisms, Toxins

3. Materials, Materials Processing Equipment and related Technologies

4. Nuclear-related other equipment and technology, not controlled under Category '0'

5. Aerospace equipment, including test and production equipment, and related Technology and specially designed components and accessories thereof

6. Munitions List

7. RESERVED

8. Special Materials and Related Equipment, Material Processing, Electronics, Computers, Telecommunications, Information Security, Sensors and Lasers, Navigation and Avionics, Marine, Aerospace and Propulsion.

Advance approval under a SCOMET license is in respect of some items in each category for export.

SCOMET Policy and Legal Framework

The SCOMET policy is India's contribution to international treaties like the Chemical Weapons Convention (CWC), Biological and Toxin Weapons Convention (BWC), Missile Technology Control Regime (MTCR), etc. The SCOMET list is structured in a manner that there are no commodities or technologies which are prohibitive in nature being employed in weapons of mass destruction or being categorized under undesirable state/non-state actors. SCOMET licenses are issued by Directorate General of Foreign Trade (DGFT) for all categories except nuclear and ammunition, which are dealt with by Department of Atomic Energy (DAE) and Department of Defence Production (DDP), respectively.

Step-By-Step Procedure to Apply for SCOMET License

Procedure for obtaining a SCOMET license is governed by certain well-established steps:

1. Identification and Classification: Make sure that the item, technology, or software belongs to any SCOMET category under SCOMET policy and Appendix 3 of ITC(HS). Proper classification is necessary for proper documentation.

2. Online Application: Make SCOMET license application online through DGFT's Export Management System (EMS) on as per the prescribed forms and upload all the documents like SCOMET declaration. Original End User Certificates can be forwarded in hard copy to DGFT HQ.

3. SCOMET Declaration: Put SCOMET declaration in the form as required, i.e., item use, supply chain, and non-transfer warranties.

4. End User Certificate (EUC): Attach an EUC with the importer, item detail, intended end-use, and peaceful use and non-diversion guaranties.

5. Supporting Documents: Attach technical write-ups, company registration, purchase orders, and conformity certifications wherever needed.

6. End-Use Analysis: DGFT's IMWG reviews the application on end-use, bonafide of the recipient, and treaty compliancy. NOCs or comments are provided within 30 days.

7. Issue of Licence: On acceptance, SCOMET licence is issued by DGFT.

Significance of SCOMET Declaration

SCOMET declaration is formal declaration of exporter for proper classification, peaceful usage, non-diversion, and overall supply chain for export good/technology. SCOMET declaration format generally consists of extensive usage, buyer/end-user details, assurances towards non-transfer, and compliance with DGFT's verification. SCOMET declaration in correct format allows easy examination and possible exemption from extensive scrutiny where normal goods or normal trade relationship exist.

Validity and Extension of SCOMET License

The validity of the SCOMET license is 24 months from the date of issue, and all such exports must be carried out within this period. But if additional time is required, the DGFT revalidates the SCOMET export authorization on merit for a period of six months at a time for an aggregate period of 12 months.

How SKMC Global Can Help?

• SKMC Global offers qualified regulatory solutions for all phases of SCOMET license application process:
• Classification of product/technology under SCOMET list or analogous SCOMET category.
• Preparation of SCOMET declaration and SCOMET declaration template in fulfilling the scrutiny by DGFT.
• Ease of navigation in preparation, scrutiny, and filing of SCOMET license application.
• Technical document guidelines, End-User Certificates, and in-house compliance programs.
• Communicating with DAE, DDP, or DGFT on a case of managing, e.g., SCOMET policy interpretations that are complex or sensitive.
• Tracking the status, updates, and re-validation needs of cases.

SKMC Global's compliance team help firms to export India's SCOMET policy and SCOMET license process securely—free from regulatory risk and providing hassle-free exports to the global market.

Conclusion

It entails serious planning, precise documentation, and precise compliance with the rules to get a SCOMET license. From classification right up to the arrangement to submit the SCOMET declaration within time, the exporters need to do every step in detail.

Acceptance of the SCOMET policy, professional counseling by SKMC Global, and maintaining compliance need not only ensure one being compliant with law, but also establishes integrity in international business. For international business in the present day, a valid SCOMET license is not only a regulatory requirement, but also international business competitiveness.