SCOMET – Export – Permission of Government before entering into agreements
DGFT has amended Appendix 3 of Schedule 2 of ITC (HS) Classification of Export and Import Items, 2004-2009.
It is now made mandatory for all companies and their subsidiaries registered in India and all other business entities operating in India and involved in the manufacture, processing and use of Special Chemicals, Organisms, Materials, Equipment and Technologies ( SCOMET ) to obtain permission of the Central Government before entering into any arrangement or understanding that involves an obligation to facilitate or undertake site visits, on-site verification or access to records/ documentation, by foreign Governments or foreign third parties, either acting directly or through an Indian party or parties. Requests for such permissions shall be considered in the manner in which requests for export/import licence are considered.
Provided that where obligations involving site visits, on-site verification or access to records/ documentation by foreign governments or foreign third parties are to be undertaken pursuant to a bilateral agreement or a multilateral treaty to which India is a party, the provisions of the relevant agreement or treaty shall apply.
DGFT Notification No. 122 (RE-2008)/2004-2009, Dated: August 19, 2009