Recently, the DGFT has sought to amend and streamline few of the entries in the SCOMET List [Appendix 3 to Schedule 2 of ITC (HS)], definition in the Glossary to the SCOMET list and the Handbook of Procedures 2015-2020 (“HBP”). Key amendments have been captured in this bulletin as below:
Key Amendments
- The phrase “military use” which has been abundantly used in the SCOMET List and was not earlier defined has now been defined in the Glossary vide Notification No. 29/2015-2020 dated 21.09.2017 as under:
“Military use” shall mean incorporation into military items listed in SCOMET Categories 5D or 6 or for the use, development, or production of military items listed in these categories”
- Para 2.72(b) of the HBP had been inserted to introduce a catch all provision to regulate the export of non-SCOMET items. It provided that where the exporter knows or has reason to believe that such items may inter alia have military end use, then the exporter is obligated to approach the DGFT. The coverage of the provision appeared very wide and created confusion, especially in the absence of any guidelines. However, this provision has been streamlined with the amendment of the phrase “military end use” to “military use” and the introduction of the aforesaid definition of “military use” (also in the Glossary to the SCOMET list) as a Note to Para 2.72(b) of the HBP vide Notification No. 27/2015-2020 dated 21.09.2017.
Amendment to SCOMET Categories / Entries
The following tabular representation briefly captures the amendments to the SCOMET Categories / entries:
| SCOMET Category / Entry (un amended) | Amendment |
| Category 2H Genetically Modified Organisms | This category is now known as “Genetic elements and genetically modified organism”. Accordingly, the sub-category 2H001 has also been appropriately modified. |
| Category 3D Chemical and biomaterial manufacturing and handling equipment and facilities: | - A new entry 3D001(1)(iii) has been inserted to cover specified prefabricated repair assemblies and their specially designed components. - Entry 3D004 dealing with toxic gas monitors and monitoring systems and their dedicating detection components and Entry 3D006 dealing with fermenters have been amended. - Entry 3D014 which was earlier reserved has now been populated with the entry covering specified nucleic acid assemblers and synthesizers. |
| Category 4: Nuclear-related other equipment and technology, not controlled under Category 0 | - Entry 4A007 dealing with Vacuum or other controlled atmosphere metallurgical melting and casting furnaces and related equipment have been amended - A new entry 4A032 has been inserted which deals with specified target assemblies and components for the production of tritum. |
| Category 5: Aerospace systems, equipment including production and test equipment, related technology, and specially designed components and accessories therefor. | - Entry 5C013 has been amended to include specified analogue-to-digital converters usable in rocket systems. |
| Category 7: Electronics, computers, and information technology including information security | This category earlier containing sub-categories 7A (Electronics), 7B (Electronic test equipment), 7C (reserved), 7D (Information technology including information security), 7E (reserved) would now be completely ‘Reserved’. In other words, Category 7 would not contain any specific entry. |
| Category 8A3: Electronics (Systems, Equipments and Components)
| Entry 8A301b dealing with microwave and millimeter wave items have been amended. |
Disclaimer: The information provided in this update is intended for informational purposes only and does not constitute legal opinion or advice. Readers are requested to seek formal legal advice prior to acting upon any of the information provided herein. This update is not intended to address the circumstances of any particular individual or corporate body. There can be no assurance that the judicial/ quasi judicial authorities may not take a position contrary to the views mentioned herein.