DGFT updates the SCOMET List with recent policy changes

Source- This post on DGFT updates the SCOMET List with recent policy changes has been created based on the article “DGFT updates the SCOMET List with recent policy changes and updates in the multilateral export control regimes“ published in “PIB” on 4rd September 2024.

Why in News?

Recently, Directorate General of Foreign Trade (DGFT), Ministry of Commerce & Industry, has notified the updated SCOMET list for the year 2024.

About the SCOMET List

1. The Special Chemicals, Organisms, Materials, Equipment, and Technologies (SCOMET) list is India’s export control list, regulating the export of dual-use items, nuclear-related items, and military goods, including associated software and technology.

2. This list is maintained and updated by the Directorate General of Foreign Trade (DGFT), under the Ministry of Commerce & Industry, to align with international standards and national security interests.

3. The SCOMET list is a critical component of India’s strategic trade control framework, ensuring that exports comply with global non-proliferation objectives and prevent the misuse of sensitive technologies.

Role of the Directorate General of Foreign Trade (DGFT)

1. The DGFT is the primary government agency responsible for formulating and implementing India’s foreign trade policy.

2. It plays a crucial role in maintaining the SCOMET list and ensuring that India’s export control policies align with international agreements and national security requirements.

3. The DGFT oversees the licensing process for the export of items listed under SCOMET, working in coordination with other relevant government departments to assess risks and enforce regulations effectively.

Recent Changes to the SCOMET List

1. Updated SCOMET List for 2024: DGFT has released an updated SCOMET list, incorporating changes from multilateral export control regimes and stakeholder inputs.

2. New Licensing Authority for Category 6 Items: The Department of Defence Production (DDP) under the Ministry of Defence is now the licensing authority for Category 6 items (military goods), streamlining the export licensing process.

3. Strengthening Strategic Trade Controls: The update emphasizes strategic trade controls in line with the Foreign Trade Policy 2023, enhancing compliance and responsible export practices.

4. Facilitating Responsible Exports: Initiatives include an improved electronic platform for export licensing and more liberalized authorization policies for specific items like drones and dual-use chemicals.

5. Enhanced Regulatory Framework: The updated list is notified under Appendix 3 to Schedule 2 of the ITC (HS) Classification, governed by Chapter 10 of the Foreign Trade Policy 2023 and the Handbook of Procedures, under the Foreign Trade (Development & Regulation) Act, 1992.

UPSC Syllabus: Indian Economy