10.12 — Issue of authorisations for repair/replacement of defective SCOMET items

An application for grant of an Authorisation for export/re-export of SCOMET items, as the case may be for (i) repair/replacement of imported item(s) abroad and return (ii) repair/replacement of indigenous SCOMET items (iii) return of items imported for repair at a repair facility in India and (iv) Authorisation for export of SCOMET items after repair in india (GAER) shall be made in prescribed proforma [ANF 10A] through online SCOMET portal along with other supporting documents, as prescribed in Appendix 10D, 10E, 10F and 10F(i), as applicable. The application shall be considered by Chairman IMWG, on fulfilment of the following conditions:

A. Authorisation for export of imported SCOMET items for repair/replacement :

• i. Conditions to be fulfilled:

  • (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[1] authorized by OEM);

1Agency can include’ Approved Repair Centre’ (facility approved by the original equipment manufacturer to repair the goods being exported under license).

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• (d) That the replacement or repair of defective/damaged items (whichever is applicable) is allowed under the conditions of import or contractual agreement;

• (e) No Export Authorisation would be granted if the initial export authorisation has been suspended, modified or revoked by the exporting country;

• (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;

• (h) The application is accompanied with relevant documents as prescribed in Appendix 10D;

• (i) Legal Undertaking on the stamp paper of Rs. 200/-, in prescribed proforma (Appendix 10K).

• ii. Applications for grant of authorisations for export to the entity from which it was imported or to the OEM (including agency authorized by OEM) shall be approved by Chairman IMWG, without any consultation with IMWG members. However, in cases of export to any other entity, approval will be granted by Chairman, IMWG after verification of the credentials of the foreign entity to which the item(s) are to be exported.

• iii. Return of item(s) after repair/replacement and post-reporting compliance:

  • (a) Exported items shall be brought back to India within 90 days repair is completed or item is replaced or within the extended time, as allowed by the DGFT;

  • (b) In case the defective/damaged item(s) cannot be imported due to any reason (beyond repair, testing failure analysis etc.), evidence of destruction in the importing country shall be submitted to DGFT within 90 days of export.

  • (c) In case time beyond 90 days is required for repair of imported defective/damaged item(s) before re-import, permission from DGFT shall have to be obtained in advance indicating detailed justification for seeking extension of time.

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• (d) Bill of Entry confirming the return back of such SCOMET item(s) to India shall be intimated by the licensee to the DGFT(Hqrs) in the prescribed proforma (Annexure-I of Appendix 10K), duly signed in ink and stamped by the authorised signatory.

B. Authorisation for re-export of indigenous SCOMET items after repair/replacement :

• i. Conditions to be fulfilled:

  • (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) That replacement/repair(whichever is applicable) is allowed under the conditions of export or purchase order or contractual agreement;

  • (f) No authorisation for re-export would be granted if the original licence has been suspended, modified or revoked.

  • (g) 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

  • (h) No ‘End Use’ and ‘End Use Certificate’ would be required; (i) The application is accompanied with relevant documents as prescribed in Appendix 10E;

  • (j) Legal Undertaking on the stamp paper of Rs. 200/-, in prescribed proforma (Appendix 10K).

• ii. Applications for grant of authorisations to export the replaced/repaired item(s) to/through the same entity(ies), as specified in the original SCOMET license, shall be approved by Chairman IMWG, without any consultation with IMWG members. However, in cases of export to/through a new entity (consignee), approval will be granted by Chairman, IMWG after verification of the credentials of the new foreign entity(ies) through which the item(s) are to be exported.

• iii. Return of item(s)after repair/replacement and post-reporting compliance:

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• (a) 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 (in case of replacement);;

• (b) In case the defective/damaged item(s)cannot be imported due to any reason (beyond repair, testing failure analysis etc.), evidence of destruction in the importing country shall be submitted to DGFT within 90 days of export of replacement;

• (c) Bill of Entry confirming the return back of such SCOMET item(s) to India shall be intimated by the licensee to the DGFT(Hqrs) in the prescribed proforma (Annexure-I of Appendix 10K), duly signed in ink and stamped by the authorised signatory.

C. Authorisation for export of imported SCOMET items to same entity abroad, or any authorised entity after repair in India:

• i. Conditions to be fulfilled:

  • (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); or

Imported under a contract agreement between Indian exporter, entities of repair facility (if different from exporter)and entity abroad defining ‘Statement of Work (SOW)’/ ‘Scope of Work’ including conditions for undertaking repair in India;

• (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 agency[2 ] authorised by OEM);

• (c) The repair of defective/damaged items is allowed under the conditions of import or contractual agreement between Indian exporter, entities of repair facility (if different from exporter) and the entity abroad/OEM (including agency authorized by OEM)(name and address);

2Agency can include’ Approved Repair Centre’ (facility approved by the original equipment manufacturer to repair the goods being exported under license).

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• (d) There has been no change to the original characteristics/specifications of the SCOMET item(s) after repair;

• (e) No Export Authorisation would be granted when the initial export authorisation has been suspended, modified or revoked by country of import;

• (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;

• (g) No details of ‘End Use’ and ‘End Use Certificate’ would be required;

• (h) The application is accompanied with relevant documents as prescribed in Appendix 10F;

• ii. Applications for grant of authorisations for export to the entity from which it was imported or to the OEM (including agency authorized by OEM) shall be approved by Chairman IMWG, without any consultation with IMWG members. However, in cases of export to any other entity, approval will be granted by Chairman, IMWG after verification of the credentials of the foreign entity to which the item(s) are to be exported. All such authorisations shall be brought before IMWG in its subsequent meeting for confirmation of approval, on ex-post facto basis.

D. Authorization for export of same imported SCOMET items to Related entities[0] and Repair supply chain[1] in the foreign country under General Authorization for Export after Repair(GAER)

0Related entities mean Direct subsidiary / Foreign Parent of the Indian Company or another Subsidiary of the foreign parent of the Indian Company.

1Repair supply chain means (i) Authorized Vendor (ii) Original Equipment Manufacturer(OEM) with whom Indian company has a Master Service Agreement/Electronic Manufacturer Service agreement/Contract Agreement defining conditions of undertaking repair in India.

• A. Export of imported SCOMET items to the related entities[0] and repair supply chain[1] in the foreign country after repair in India will be allowed on the basis of a one-time General authorization for Export after Repair in India (GAER) subject to post reporting on quarterly basis issued by DGFT, subject to the following conditions:

  • 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

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agreement (MSA)/Electronic Manufacturer Agreement (EMS); or Imported under a contract agreement between Indian exporter, entities of repair facility (if different from exporter) and entity abroad defining ‘Statement of Work (SOW)’/ ‘Scope of Work’ including conditions for undertaking repair in India;

• b. The items are to be re-exported to only related entities[0] and repair supply chain[1 ] in the foreign country.

• c. The exporter is required to register and obtain General authorization for export after repair only once during the validity period. Subsequent export/re-export is subject to post reporting;

• d. The exporter is required to provide Bill of Entry for the imported item while applying for GAER for the first shipment.

• e. General authorization for export after repair shall be valid for a period of one year from the date of issue of General authorization subject to subsequent post reporting(s) within 30 days from the date of such export;

• f. Subsequent export would be allowed to the same entity and location to which the license has originally been issued. Note: Same entity would imply that (a) foreign buyer (b) consignee or intermediaries, if any (c) the end user are exactly the same for which authorisation has been issued to the applicant exporter.

• g. There has been no change to the original characteristics/specifications of the SCOMET item(s) after repair and no value addition has been done during the repair work;

• h. No Export Authorisation would be granted when the initial export authorisation has been suspended, modified or revoked by country of import;

• i. 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;

• j. No details of ‘End Use’ and ‘End Use Certificate’ would be required;

• k. GAER issued for specific item and specific entity (buyer/end user) shall not be applicable in case the re-export is of a different imported item or to a different entity or Authorised OEM. In such cases, either a new GAER authorization may be applied or application may be filed under Para 10.12(D) of HBP.

• l. Certified / approved Internal Compliance Programme or demonstrating compliance to the ICP of the foreign company or ICP certified by the compliance manager of that company shall be mandatory[only for intra-company transfers].

• m. Authorized Economic Operator (AEO) Certification along with ICP compliance shall be mandatory. [for re-export to vendors/OEMs].

A. Documents Required for GAER

1. Proof of import of the item(s) :

• a. Export Authorisation (if applicable) issued by the foreign country for original import of the items to India;

• b. Documentary proof and/or self-declaration that the item exempted from license requirement or place under no license requirement for India.

• c. Bill of Entry (first time)

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2. Proof of obligation for repair of defective/damaged items :

Contract agreement and/or ‘Statement of Work (SOW)’/ Master Service agreement (MSA) between Indian exporter and with the entity abroad/ Direct subsidiary/Parent of the Indian Company or another subsidiary of the foreign parent of the Indian Company/Authorised Vendor/Original Equipment manufacturer having EMS agreement/Master service agreement/ contract with Indian Company from (which the goods were imported initially) defining conditions for undertaking repair in India

3. An Undertaking from the Indian exporter ;

An Undertaking from the applicant exporter (on the letter head of the firm duly signed and stamped by the authorized signatory) stating:

a. Details of imported items to be exported after repair along with their SCOMET Category /Sub-category number(s), quantity, item description and ECCN of foreign country (if available) ;

b. That item(s) are being exported to only related entities[0] and repair supply chain[1] in the foreign country (Direct subsidiary/Parent of the Indian Company or another Subsidiary of the foreign parent of the Indian Company/Vendor/Original Equipment manufacturer having contract with Indian Company) from which it was originally imported for repair and return purpose.

c. That there has been no change to the original characteristics/specifications of the item(s) after import and no value addition has been done during the repair work;

d. That the repair of defective/damaged items is allowed under the conditions of import or contractual agreement between Indian exporters and entities from which goods were imported.

e. That Shipping Bills and Bill of Entry into destination country of subsequent re-exports and any other information as sought by DGFT shall be submitted to DGFT on quarterly basis.

f. That items would not use for military applications or to develop, acquire, manufacture, possess, transport, transfer or use, chemical, biological, nuclear weapons or for missile capable of delivering such weapons.

4. Certified/approved Internal Compliance Programme or demonstrating compliance to the ICP of the foreign company or ICP

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certified by the compliance manager of that company. [only for intracompany transfers]

5. Authorized Economic Operator (AEO) Certification along with ICP compliance. [for re-export to vendors/OEMs]

C. Post reporting for re-export of items/software/technology under GAER

i. The Indian exporter shall submit post-shipment details of each transfer/consignment of exports of SCOMET items/software/technology under GAER to the SCOMET Division of DGFT (HQ), New Delhi, via e-mail (scomet-dgft@nic.in) or a procedure as prescribed by DGFT, on quarterly basis (March/June/September/December), by the end of subsequent month of each quarter, in respect of the exports made in the previous quarter.

ii. The post-shipment details shall include submission of Bill of Entry (wherever available), shipping bill details, valid export license copy within the timelines mentioned above.

iii. Failure to do so may entail imposition of penalty and/or suspension/revocation of GAER and action as per FT(D&R) Act.

D. Suspension / Revocation

GAER issued shall be liable to be suspended / revoked by the DGFT on receipt of an adverse report on proliferation concern or for non-submission of mandatory reports /documents within the prescribed timelines, or for non-compliance with the conditions of this Public Notice.

E. General conditions

i. GAER would not be issued in case of items to be used to design, develop, acquire, manufacture, possess, transport, transfer and/or used for chemical, biological, nuclear weapons or for missiles capable of delivering weapons of mass destruction and their delivery system;

ii. GAER would not be issued for countries or entities covered under UNSC embargo/sanctions or on assessment of proliferation concerns, or national security and foreign policy considerations, etc.;

iii. DGFT shall reserve the right to deny issuance of GAER or recall GAER.

F. Applications for grant of General authorizations for export to the same entity from goods were imported shall be approved by Chairman IMWG, without any consultation with IMWG members after the first export/shipment. In exceptional cases, consultation with IMWG may be done prior to issuance of GAER, in case required.

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G. All such authorizations shall be brought before IMWG in its subsequent meeting for confirmation of approval, on ex-post facto basis.

10.13 Issue of export authorisations for demo/display/exhibition/tenders/ RFP/RFQ/NIT of SCOMET items An application for grant of an Authorisation for (i) export of indigenous/imported SCOMET item(s) for demo/display/exhibition/ tenders/RFP/RFQ/NIT purposes abroad; and (ii) export of SCOMET item(s) imported for participation in demo/display/exhibition /tenders/RFP/RFQ/NIT in India, shall be made in prescribed proforma [ANF 10A] through online SCOMET portal along with other supporting documents, as required in the prescribed proforma. The application shall be considered by Chairman IMWG, on fulfilment of the following conditions:

(A) Authorisation for export of indigenous/imported SCOMET item(s) for demo/display/exhibition /tender/RFP/RFQ/NIT abroad

• i. Conditions to be fulfilled: Authorisations for export of items in SCOMET List (other than those under Category 0, 1, 2 and 6 or ‘Technology’ or ‘Software’ in any category) solely for purposes of (a) Demo (b) Display (c) Exhibition (d) Tenders/RFP/RFQ/NIT shall be considered by Chairman IMWG, on the following conditions:

  • (a) Such cases would be considered purely on temporary export basis for a specified time period;

  • (b) No end user certificate would be insisted upon in such cases;

  • (c) There shall not be any commercial transaction in the form of selling/buying/renting/leasing;

  • (d) The number of item(s) should be commensurate with the nature of export items and the purpose for which the application is being made;

  • (e) There shall not be any exchange/disclosure of information which could lead to transfer of technology;

  • (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;

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• (g) The application is accompanied with relevant documents as prescribed in Appendix 10G;

• (h) Legal Undertaking on the stamp paper of Rs. 200/-, in prescribed proforma (Appendix 10K);

• (i) Applications for grant of authorisations shall be approved after verifying the credentials of the event/organizer;

• ii. Return of item(s) and post-reporting compliance:

  • (a) Exported items shall be brought back to India within 90 days after the event gets over or within the extended time, as allowed by the DGFT;

  • (b) Bill of Entry confirming the return back of such SCOMET item(s) to India shall be intimated by the licensee to the DGFT(Hqrs) in the prescribed proforma (Annexure-I of Appendix 10K) duly signed in ink and stamped by the authorised signatory.

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(B) Authorisation for export of imported SCOMET items after participation in demo/display/ exhibition/tenders/RFP/RFQ/NIT in India

Application for grant of authorisation for export of imported SCOMET items (other than those under Category 0, 1, 2 and 6 or ‘Technology’ or ‘Software’ in any category) to the entity from which it has been originally imported or to its OEM (including agency authorized by OEM), after Demo/Display/ Exhibition/tender/RFP/RFQ/NIT, shall be considered by Chairman IMWG, on the following conditions:

• a) The SCOMET item(s) were imported in India for the purpose of demo/display/exhibition/tender/RFP/RFQ/NIT under a contract agreement between Indian exporter and supplier/OEM(including agency authorized by OEM);

• b) The export should only be to the entity from which the item(s) has/have been imported or to the OEM (including agency authorized by OEM);

• c) No details on ‘End Use’ and ‘End Use Certificate’ would be required;

• d) 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;

• e) The application is accompanied with relevant documents as prescribed in Appendix 10H;

• f) Applications for grant of authorisations for export to the entity from which it was originally imported or to the OEM (including agency authorized by OEM) shall be approved by Chairman IMWG, without any consultation with IMWG members.

• g) However, in cases of export to an entity other than the original supplier or OEM (including agency authorized by OEM), approval will be granted by Chairman, IMWG after verification of the credentials of the foreign entity to which the item(s) are to be exported.

• h) All such authorisations shall be brought before IMWG in its subsequent meeting for confirmation of approval, on ex-post facto basis.

Note :

RFP refers to Request for Proposal; RFQ refers to Request for Quotation and NIT refers to Notice Inviting Tender.

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