DGFT Revises Export Framework for SCOMET Items Under ‘Stock and Sale’ Provision

New Delhi, May 17 (KNN) The Directorate General of Foreign Trade (DGFT) has issued public notice no. 04/2025-2026 revising the procedural framework under Para 10.10 of the Handbook of Procedures (HBP) 2023. 

The amendment broadens the approach for granting export authorisations related to the ‘Stock and Sale’ of Special Chemicals, Organisms, Materials, Equipment and Technologies (SCOMET) items.

Under the revised framework, Indian exporters may seek permission to export eligible SCOMET items to entities abroad, designated as ‘Stockists,’ for subsequent transfer to ultimate end users. 

The framework excludes items in Categories 0, 3A401, and 6, as well as technology transfers under any category.

The definition of "Stockist" has been expanded significantly to include subsidiaries, parent companies, affiliates, and Indian or foreign Original Equipment Manufacturers (OEMs), Electronic Manufacturing Services (EMS), and Contract Manufacturers (CM) under the Companies Act.

To obtain authorisation, exporters must submit applications in the prescribed ANF-10B format along with supporting documents including end-use declarations, proof of corporate relationship with the stockist, technical specifications, compliance program details, and in some cases, AEO certificates.

Transfers within the country of the stockist or re-export to pre-approved countries do not require further authorisation, although post-reporting of such movements is mandated within three months. 

For re-export to countries not initially approved, a fresh application with updated end-user and transaction documentation is required.

The revised norms also incorporate provisions for repeat orders, enabling simplified processing by the Chairman of IMWG without full committee consultation. Exporters must file annual reports detailing inventory status and stock movements as of 31st December each year.

Failure to comply with reporting obligations or diversion of sensitive items can lead to penalties or cancellation of authorisation under the Foreign Trade (Development & Regulation) Act.

(KNN Bureau)