Revised Defence Export Standard Operating Procedure (SOP) and Open General Export Licence framework (OGEL)

About Revised Defence Export Standard Operating Procedure (SOP) and Open General Export Licence framework (OGEL)

• The revised Defence Export Standard Operating Procedure (SOP) has been released by Department of Defence Production, Ministry of Defence.
• It is for making India a reliable, competitive and trusted global defence manufacturing and export partner and advancing the objectives of Make-in-India and Aatmanirbhar Bharat.
• It seek to reduce procedural requirements, facilitate faster access to international markets and enable Indian defence companies to respond more effectively to global business opportunities, while ensuring that national security considerations remain fully safeguarded.
• SOP content:
  • Stakeholder consultation has been dispensed with for exports of non-lethal defence items to most destinations, while appropriate safeguards have been retained for sensitive countries.
  • Stakeholder consultation has been dispensed with for exports of all items for international tenders and exhibitions.
    • This enables Indian companies to showcase their products and pursue international opportunities more expeditiously.

About Open General Export Licence framework (OGEL)

• The OGEL is a standing one-time export authorisation that enables eligible exporters to self-generate export authorisations for multiple consignments of specified defence items, without seeking a separate authorisation for each consignment.
• It provides greater flexibility while reducing repetitive procedural requirements.
• It provides exporters with a common and simpler framework.
• Three existing OGEL SOPs covering major platforms and equipment, parts and components, and intra-company transfer of technology have been consolidated into one unified OGEL SOP.
• Features:
  • OGEL validity extended: OGEL validity has been increased from two to three years, reducing the frequenacy of renewals and associated compliance requirements.
  • Coverage: It has been expanded from 41 to all countries, except negative/sensitive nations and those facing UN Security Council sanctions or arms embargoes.
  • A new provision facilitates Indian companies having long-term contracts or agreements with Foreign Original Equipment Manufacturers (FOEMs).
    • OGEL may be granted for eligible items and the particular FOEM, with validity aligned with the underlying contract or agreement, subject to prescribed conditions.
  • The range of items covered under OGEL has been expanded, providing greater flexibility to eligible exporters.
  • The revised framework also permits civil-end-use exports of specified parts and components of small-calibre arms and protective equipment. This will further broaden the legitimate international business opportunities.