Directorate General of Foreign Trade ( DGFT ) has issued Public Notice No. 36/2015-20 dated the 27th September, 2019 to substitute Para 2.79C of the Handbook of Procedures, 2015-2020 relating to “Issue of authorizations for repair/replacement of SCOMET items” in order to notify the procedure for repair/replacement of SCOMET items with immediate effect.
Key Points of the Public Notice are:
1. DGFT has prescribed the following conditions required to be fulfilled for Authorization for export of imported SCOMET items for repair/ replacement as mentioned below –
a) The SCOMET items were imported to India and are to be exported for the purpose of repair and replacement, on being defective;
b) There has been no change to the original characteristics/specifications of the SCOMET item(s);
c) The SCOMET items are to be exported to the same entity from which they have been imported or to the OEM (including, agency’ authorized by OEM);
d) No Export Authorisation would be granted if the initial export authorisation has been suspended, modified or revoked by the exporting country;
e) 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; and
f) No ‘End Use’ and ‘End Use Certificate’ would be required.
2. DGFT has prescribed the following conditions required to be fulfilled for Authorization for re-export of indigenous SCOMET items after repair/ replacement as mentioned below –
a) The SCOMET items manufactured in India, were exported and brought back to India for repair or being replaced, on being found defective/damaged;
b) The items are to be re-exported after repair/replacement to the same entity to which the item(s) were originally exported by the applicant exporter;
c) There has been no change to the original characteristics/specifications of SCOMET item(s);
d) That the defective/damaged item(s) has/have already been brought back or would be brought back to India within 90 days of its replacement (if applicable);
e) No authorization for re-export would be granted if the original licence has been suspended, modified or revoked
f) 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; and
g) No ‘End Use’ and ‘End Use Certificate’ would be required;
3. DGFT has inserted subsection (C) below subsection ( B) of Para 2.79 of the Handbook of Procedures, 2015-2020 relating to the Authorization for export of imported SCOMET items to same entity abroad, or any authorised entity after repair in India. It has also laid down the conditions required to be fulfilled for Authorization for re-export of indigenous SCOMET items after repair/ replacement which are mentioned below –
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);
b) The items are to be exported to the same entity abroad from which the item(s) has/have been imported or to the OEM (including agency2authorised by OEM)
c) There has been no change to the original characteristics/specifications of the SCOMET item(s) after repair
d) No Export Authorisation would be granted when the initial export authorisation has been suspended, modified or revoked by country of import
e) No details of ‘End Use’ and ‘End Use Certificate’ would be required.
Please note : For the documents required to be submitted along with for obtaining Authorisation in each of the cases mentioned under Para 2.79 of the Handbook of Procedures, 2015-2020 has been prescribed in the attached Public Notice.
Source: Directorate General of Foreign Trade
