DGFT amends 'Stock and Sale' authorisation policy for SCOMET items 

According to the government sources, the move aimed at enabling ease of doing business reduces the need to apply for SCOMET licence if repeat orders are being done to parent/group companies.

As per the new changes, applications for grant of authorisation for bulk export of SCOMET items from an Indian exporter to an entity abroad for subsequent transfer to the ultimate end users shall be considered by IMWG. However, no authorisation needed for transfer from stockist to end user within stockist's country while re-export to end users in approved countries is subject to export control rules of stockist's country.

The notification further said that the Indian exporters will have to submit details of such transactions with DGFT with bill of entry within 3 months of transfer.  IMWG to consider export authorisations to allow re-export, re-transfer based on end use verification.

Country would denote an independent sovereign entity which is a distinct national entity in political geography. Hence, transfers within an economic union or a customs union would not qualify as “same country transfers”.

The Indian exporter (Stock & Sale Authorisation holder) shall submit a statement of exports made from India to the stockist, transfers made by the stockist to the final end-users and inventory with the stockist, as on 31st December of each calendar year, by 31st January of the following year. Failure to do so may entail imposition of penalty and /or cancellation of authorisation under the stock and sale policy, DGFT said.