PN 7/2017 IN FORCE

PN 7/2017

Reliability

In force — no superseding record on file.

Document text

(To be published in the Gazette of India Extraordinary Part-I Section- I)

Government of India Ministry of Commerce & Industry Department of Commerce Udyog Bhawan 28K KK Public Notice No. ° 7/2015-20 New Delhi, the |77 May, 2017

Subject:- SCOMET Export permission for ‘Stock & Sale’ purposes

In exercise of the powers conferred under Paragraph 1.03 of the Foreign Trade Policy, 2015-20, the Director General of Foreign Trade, hereby makes the following amendments ir Para 2.79A of the Handbook of Procedures, 2015-2020 with immediate effect:

The revised Para 2.79A would read as follows:

2.79A. Export permission for "Stock and Sale"

i) ‘Stockist’ refers to the entity abroad to whom the SCOMET items are originally exported by Indian principal/wholly owned subsidiary. The Stockist entity should be a subsidiary/principal company abroad of the Indian exporter.

ii) Applications for grant of authorization for export of SCOMET items for 'Stock & Sale' purpose shall be evaluated/considered by IMWG subject to the conditions pre scribed as under.

a) Application for Authorization for Export of SCOMET items for ‘Sto:k & Sale’ purpose to the Stockist
i. Export shall be permitted only from the principal company/the wholly owned subsidiary in India to their subsidiaries/principal company abroad on the basis of an End Use cum End User certificate (EUC) from the latter for 'stock & sale' purpos2s (as per Appendix 2S(iii)), when considered appropriate from the point of view of security and other critical considerations. The exhaustive list of countries to which exports wuld be done by the stockist needs to be indicated in the EUC for 'stock & sale' purposes. Documentary proof regarding relationship between exporter and stockist entity needs tc be submitted at the time of application.

tockist needs to be indicated in the EUC for 'stock & sale' purposes. Documentary proof regarding relationship between exporter and stockist entity needs tc be submitted at the time of application.

ii. The Stock & Sale Authorization holder would submit a statement o* exports made from India, inventory with the stockist and transfers made to final end-users as on December 31° of each calendar year by 31“ January of the following year. A ccnsolidated statement would be required to be submitted within a period of 3 months from the expiry of the Stock & Sale Authorization.
iii. | The items exported to the stockist entity under this authorization shculd be transferred to the final end-user within the validity period of the authorization. The authorization may be revalidated as per the procedure mentioned in para 2.80 of HBP.
iv. No applications for Authorization for Export of SCOMET items for ‘Stock & Sale’ purpose would be considered for items falling in Category 0, 1C and 6 of the SCOMET list.
v. No export Authorisation for “Stock & Sale’ purpose shall be issuec for ‘Technology’ in any category.
(b) Application for permission for re-export/re-transfer from ‘Stockist to Ultimate enduser(s) (i) Applications for re-export/re-transfer of items from the stockist entity to the end-user to be submitted to DGFT(Hq) as per ANF 2O(a) along with the fo lowing documents (hereinafter referred to as required documents): a) End-use/End-user certificate from each link in the supply chan as per Appendix2S (i)/2S(ii), as applicable

(a) along with the fo lowing documents (hereinafter referred to as required documents): a) End-use/End-user certificate from each link in the supply chan as per Appendix2S (i)/2S(ii), as applicable

b) Purchase orders/Invoices c) Technical specifications of the product to be transferred (cnly if there is any value addition in the product by the stockist)
- (ii) Re-transfer within the same country by the stockist:a) For any further transfer of these items by the stockist entity to whom the items are originally exported by Indian principal/wholly owned subsidiary) to entity (ies), including end users, in the same country, the former shall obtain the required documents from each link in the supply chain and forward the same to the Indian applicant/licensee for the purpose of submissior to DGFT(Hq) for seeking prior permission for such transfer. The IMWG may, however, relax this requirement of prior permission based on a Risk Assessment for such within same country sale/transfer.
- b) In case of same country sale/transfer by the stockist entity where IMWG has agreed to relax the requirement of prior permission, the requi-ed documents shall be submitted by the Indian applicant/licensee within 3 1 onths of any such transfer. In such case, no link in the supply chain should be an entity outside the country and items should remain within the country.

by the Indian applicant/licensee within 3 1 onths of any such transfer. In such case, no link in the supply chain should be an entity outside the country and items should remain within the country.

c) Country would denote an independent sovereign entity vhich is a distinct national entity in political geography. Hence, transfers withir an economic union or a customs union would not qualify as “same country trans/ers”. (iii) Re-export outside the country by the stockist:- Application for re-export by the stockist entity to entity(ies) outside its country, shall be forwarded by the stockis: entity to the Indian applicant/licensee, with the required documents from all links in chain of supply for the purpose of submission to DGFT(Hq) for seeking prior permission for such transfer.

(iv) Applications for re-export/re-transfer of SCOMET items from the stockist entity to the end-user for repeat orders shall be considered by IMWG on automatic basis, subject to the condition that the product along with the technical specifications; the foreign buyer; the consignee or the intermediaries, if any; the end user; the end use and the country of destination, shall be the same as the earlier permission. 3. ANF 20(a), required for application for re-export/re-transfer of items from the stockist entity to the ultimate end-user, is being annexed with this Public Notice. 4. Appendix- 2S (iii), the format for the End use cum End User Certificate (EU) in case of export of SCOMET items for stock and sale purpose, is being annexed with this Public Noti-e.

ublic Notice. 4. Appendix- 2S (iii), the format for the End use cum End User Certificate (EU) in case of export of SCOMET items for stock and sale purpose, is being annexed with this Public Noti-e.

5; Effect of this Public Notice: The provision of SCOMET export authorizaticn for “Stock and Sale” has been clarified and the procedure to be followed when seeking permission for re-export/retransfer of SCOMET items by the stockist entity to the ultimate end-user has been freGee (AK.oT Director Gen »ral of Foreign Trade E-mail: dgft@nic.in

(Issued from F.No.01/91/162/40/AM12/EC(S)

APPLICATION FORM FOR APPROVAL FOR EXPORT OF SCOMET ITEMS FROM STOCKIST ENTITY TO END USER

==> picture [469 x 516] intentionally omitted <==

----- Start of picture text ----- 1.Applicant Details: iii. Address Flat/Plot/Block No. Street/Area/Locality State PIN Code iv.TeleNo. (1) Country Code Area Code Tel.No. Ce ee v. Fax No. Country Code Area Code Fax No. vi. E-mail address where authorisation to be sent E-mail (1) E-mail (2) 2. Details of SCOMET items in Appendix 3 to Schedule 2 of ITC (HS) Classifications of Export & Import Items applied for export: SCOMET | SCOMET | Description ITC (HS) Quant Total FOB Value Category Item No of Code No. | ity - In Rup2es i.e. 1B, export (if ——— ’ 1C, 2,3) item/s available) Foreign 4,5and7 including Currency technical specification ----- End of picture text -----

==> picture [461 x 536] intentionally omitted <==

----- Start of picture text ----- 3. Details of exports of stocked items made previously Approval No. & Details of items exported Qty Country to | DGFT’s (HQ’s) Date Category Description export | which F le Number ed exported 4.Shipment Details: i. Port of Lading/Shipment ii. Port of Discharge iii. Country to which item to be exported iv. Ultimate Destination Country 5. Purpose of Export i. Re-export of Stocked Items 6A.Foreign Buyer Details: Flat/Plot /Block No. oe Street/Area/Locality Country Postal Code Country Code Tel.No. —_ PTT No.

. Purpose of Export i. Re-export of Stocked Items 6A.Foreign Buyer Details: Flat/Plot /Block No. oe Street/Area/Locality Country Postal Code Country Code Tel.No. —_ PTT No. (1) Pe |1I{ttt ttl | “TL in ----- End of picture text -----

vi. Export Order No. and date

‘

==> picture [402 x 630] intentionally omitted <==

----- Start of picture text ----- 6B.Consignee Details: Flat/Plot/Block No. ii. Street/Area/Localit Addres | y s City Postal Country Code Tele Country Code Area Code Tel.No. oone (1) PTT TTT LT No. re |TTTI {Util wre PE TT TTTLL 6C.End User Details: Flat/Plot /Block No. Street/Area/Localit ii. y Address City Postal Country Code Country Code Tel.No. lii Tele a iL No. (1) re tL it ttt itl we bape PETTITT ----- End of picture text -----

vi. End product for which the item of export will be used by the end user

vii. Purpose for which the end product will be utilized

viii. Is end user an entity of Government of destination country?
ix.Manufacturing/Business/ other activity of the end user

7.If applied for re-export on repeat basis under the same ‘Stock & Sale’ authorization for same product , same end use and to the same end user, please furnish:

j. Reference Number and date vide which earlier permission was granted
- of this application

Details of ‘Stock & Sale’ authorization under which item was ex ported:

For Use in DGFT office only (To be filled by the applicant).

9A. Application Submission Details (if submitted electronically):

==> picture [166 x 205] intentionally omitted <==

----- Start of picture text ----- |i,SubmissionDate of on Server _| Authority v. Application Fee submission details viz. Amount in Rupees, Demand Draft No./Electronic Fund Transfer No. and Date and the name & branch of the bank on which drawn 9B. Jurisdictional Regional Sale’ authorization: ----- End of picture text -----

1|/We hereby certify that:

DECLARATION/UNDERTAKING

(i) I/We hereby declare that the particulars and the statements made in this application are true and correct to the best of my / our knowledge and belief and nothing has been concealed or held there from.
(ii) /We fully understand that any information furnished in the application if fond incorrect or false will render me / us liable for any penal action or other consequelices as may be prescribed in law or otherwise warranted.
(iii) | 1/We undertake to abide by the provisions of the FT (D & R) Act, 1992, a; amended, the Rules and Orders framed there under, FTP, HBP, Appendices and Aayat N ryat Forms and ITC (HS).
(iv) 1/We hereby certify that:
- A. The entity for whom the application has been made have not been penalized under any of the following Acts (as amended from time to time): (i) The Customs Act, 1962, (ii) The Central Excise Act 1944, (iii) Foreign Trade (Development & Regulation) Act 1992, as amended, and (iv) The Foreign Exchange Management Act,1999
  - (v) The Conservation of Foreign Exchange, Prevention of Smuggling Activities Act, 1974 (vi)Weapons of Mass Destruction & their Delivery Systems (Prohibition of Unlawful Activities) Act, 2005
B. None of the Directors / Partners / Proprietor / Karta / Trustees of the company /firm /HUF/Trust, (as the case may be), is/are a Director(s) / Partner(s) / Pro orietor / Karta / Trustee in any other Company/ firm / entity which is on the Denied Entity L st (DEL) of DGFT or is in the caution list of RBI;

ase may be), is/are a Director(s) / Partner(s) / Pro orietor / Karta / Trustee in any other Company/ firm / entity which is on the Denied Entity L st (DEL) of DGFT or is in the caution list of RBI;

C. Neither the Registered Office of the company / Head Office of the firm / nor any of its Branch Office(s)/ Unit(s)/ Division(s) has been declared a defaulter and ha: otherwise been made ineligible for undertaking import / export under any of the provisions of the Policy;
D. We have neither obtained nor applied for issuance of an Importer Exporter Code Number in the name of our Registered / Head Office to any other Licensing Authority.
(v) | / We hereby declare that | / We have neither obtained nor applied for such benefits (including issuance of an Importer Exporter Code Number) in the name of our Registered / Head Office or any of our Branch(s) / Unit(s) / Division(s) to any other Regional Authority.
(vi) We have complied with the conditions of all previous licences / authorisations issued to us for export of SCOMET items and wherever required have duly intimated the 9/o DGFT, New Delhi along with documentary evidence regarding receipt of the items of export by the end-user within the stipulated time.

f SCOMET items and wherever required have duly intimated the 9/o DGFT, New Delhi along with documentary evidence regarding receipt of the items of export by the end-user within the stipulated time.

(vii) | / We undertake to abide by the provisions of the FT (D & R) Act, 1992, as amended, the Rules and Orders framed there under, FTP, HBP and ITC (HS) and submit all requisite documents to the 0/o DGFT (SCOMET Section), failing which I/We shall \e liable to action under FT (D & R) Act, 1992 as amended or rules and orders made thee under, and the Customs Act, 1962.

(viii) | hereby certify that | am authorised to verify and sign this declaration as pe! Paragraph 9.6 of the Policy.

==> picture [378 x 202] intentionally omitted <==

----- Start of picture text ----- Signature of the Applicant Flat/Plot/Block No. Official Street/Area/Locality Address State PIN Code Telephone Country Code Tele No. ----- End of picture text -----

APPENDIX- 2 S(iii) END USE CUM END USER CERTIFICATE IN CASE OF EXPORT OF SCOMET ITEMS FOR STOCK AND SALE PURPOSE

PART 1: PARTIES CONCERNED

(a) Name of Exporter in India (b) Name of Stockist entity (c) Address ofthe Stockist entity

(d) Details of relationship between exporter and stockist (e) Specific Location where the items will be held in stock/assembled (if different from (c))

Fn (f) Exhaustive list of countries to which goods are to be transferred on receipt of orders:

eee NE Te PART 2: ITEMS (goods, software, technology) (a) Description ofthe item(s) (e.g. Name ofModel, Class, Type, Serial Number ==

PART 3: DECLARATION

a) The item(s) indicated in PART 2 will be used as capital equipment/ component / raw material / other use (s2lect one) for a ee
b) Awe certify that the above-mentioned items (as detailed in the referenced purchase order) shall not be used for any purpose other than the purpose(s) stated above and that such use shall not be changed nor the items modified or replicated wit 1out the prior consent ofthe Government of India. Post shipment verification shall be allowed if required by the Government of India, iis may be applicable.
c) The stockist shall not himself, or through another, cause the items, or replicas, or derivatives thereof to be r transferred / sold without the consent ofthe Government of India, to any party within (country ofthe stockiest entity) or outside it.
d) We further certify that the goods are intended for stock to be held against future orders and that the consent ofthe Government ofIndia will be obtained for any transfer to end-users in the countries mentioned in Part 1(f) above. We undertake t 1at we shall follow the conditions laid down in the export authorization granted to entity at 1(a) above by the Government of Indi:
e) /Wealso certify that the above items imported by us shall not be used to develop, acquire, manufacture, possess, transport, transfer or use, chemical, biological, nuclear weapons or for missiles capable of delivering such weapons.

ems imported by us shall not be used to develop, acquire, manufacture, possess, transport, transfer or use, chemical, biological, nuclear weapons or for missiles capable of delivering such weapons.

f) Ive also certify that all the facts contained in this certificate are true and correct to the best ofmy knowled ze and belief and that I/we do not know ofany additional facts that are inconsistent with this certificate.

Sign here:

==> picture [20 x 16] intentionally omitted <==

----- Start of picture text ----- Date: ----- End of picture text -----

==> picture [184 x 12] intentionally omitted <==

----- Start of picture text ----- (Signature of authorised signatory ofthe stockist) ----- End of picture text -----

Name:

(add name of signatory in capitals) Address: Email:

Designation:

Telephone number:

[To be submitted on the letterhead of the stockist entity. Any additional sheetsmust be signed by the same person who signs this form. ]

Verbatim extracted text (OCR/PDF). Older scans and tables may show extraction artifacts — verify against the original for anything you act on.

Analysis

No analysis generated for this document yet (analysis runs over brief docs + on-demand). Run build_analysis.py --ids 13644 --apply.