10.16 — General Authorisation for Export of Chemicals and related Equipment (GAEC) of SCOMET items

A. Procedure for grant of General Authorisation for Export of Chemicals and related equipment (GAEC)

• I. In respect of export/re-export of SCOMET items under the Categories / Sub Categories of 1C, 1D,1E, 3D001 and 3D004 (excluding software and technology), and those chemicals specified in the Appendix 10(N), to the specified countries mentioned in the Appendix 10(N), the applicant exporter shall submit an application for GAEC through online SCOMET portal and attach information in proforma –ANF-10A;

• II. The application would be reviewed/examined for the issuance of GAEC by Inter-Ministerial Working Group (IMWG) based on the submitted application and other supporting documents submitted by the applicant exporter in the prescribed proforma including;

  • a. Detailed description of the items that are intended to be exported under this authorisation with relevant technical details / specifications, such as model, part number, etc. to be provided (as applicable); In case of first intended export of items under the above Categories / Sub Categories, details of the entire supply chain (buyer, consignee, end user, etc.) of an intended export is to be provided. In case of previous exports of items under the above Categories / Sub Categories having been carried out, details of past exports including the EUC is to be provided.

  • b. Undertaking on the letterhead of the firm duly signed and stamped by the authorized signatory stating the following:

ried out, details of past exports including the EUC is to be provided.

• b. Undertaking on the letterhead of the firm duly signed and stamped by the authorized signatory stating the following:

  • i. Any on-site inspection will be allowed by the applicant exporter, if required by the DGFT or authorized representatives of Government of India;

pg.

• ii. The applicant exporter declares that the items that are intended to be exported shall not be used for any purpose other than the purpose(s) stated in the EUC and that such use shall not be changed nor the items modified or replicated without the prior consent of the Government of India. Further transfer/export/reexport under GAEC to the list of applicable countries specified in the Appendix 10(N) will be for civilian end use only;

• iii. The applicant exporter declares that subsequent to issue of export authorisation, if the licensee has been notified in writing by DGFT or if they know or has reason to believe that an item may be intended for military end use or has a potential risk of use in or diversion to weapons of mass destruction (WMD) or in their missile system, the exporter would not be eligible for GAEC for export of that/those item(s) and would apply separately to DGFT for a fresh authorisation in terms of regular policy.

• iv. Action will be taken against the exporter under FT (D & R) Act, 1992 for any mis-declaration.

• c. After issuance of GAEC authorisation and before actual export, the applicant exporter must ensure the following:

aken against the exporter under FT (D & R) Act, 1992 for any mis-declaration.

• c. After issuance of GAEC authorisation and before actual export, the applicant exporter must ensure the following:

  • i. They shall notify the relevant government authorities in the online portal of DGFT, within 30 days of such export in the prescribed format [Aayat Niryat Form ANF 10A along with the End-Use Certificate (EUC) in the prescribed proforma [Appendix 10J (i) or (ii), as per applicability] and a copy of the bill of entry into the destination country within 30 days of delivery at destination point.

  • ii. They have an agreement or a purchase order, excerpt of contract from entity (consignee / end user) receiving the items which states that the export is for a permitted use / an end use as declared in the EUC before actual export;

  • iii. They possess documents include the name, contact number and email id of the authority signing the EUC before actual export.

  • iv. Any subsequent transfer/export/re-export under GAEC to the list of applicable countries specified in the Appendix 10(N) is only for civilian end use

  • v. Additional details, if any sought by DGFT

pg.

• d. A declaration is to be submitted by the exporter on Letter Head duly signed and stamped stating that export shall only be done for civilian end use.

• e. A declaration from the Indian exporter stating that that the transfers/exports/re-exports in the entire supply chain would be only for eligible list of countries as provided in Appendix 10(N).

B. Post reporting for export / re-export of items under GAEC

• a. The Indian exporter shall submit post-shipment details of each export/ re-export of SCOMET items under the above Categories/ subcategories under GAEC, as mentioned above at II.c. (i) and within the timelines specified therein;

• b. Failure to do so may entail imposition of penalty and / or suspension/revocation of GAEC.

General Conditions & Exclusions

• a. GAEC 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;

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

• c. IMWG shall reserve the right to deny issue of GAEC without assigning any reason(s).

D. Post reporting for export / re-export of items under GAEC

• a. The Indian exporter shall submit post-shipment details of each export/ re-export of SCOMET items under the above Categories/ sub- categories under GAEC, as mentioned above at II.c. (i) and within the timelines specified therein;

• b. Failure to do so may entail imposition of penalty and / or suspension/revocation of GAEC.

E. General Conditions & Exclusions

a. GAEC 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;

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

• c. IMWG shall reserve the right to deny issue of GAEC without assigning

pg.

any reason(s).

F. Suspension / Revocation

GAEC 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 post-shipment details / reports / documents within the prescribed timelines or for non-compliance with the conditions of the proposed policy.