In a move to facilitate controlled and compliant exports of sensitive items, the Directorate General of Foreign Trade (DGFT) on May 16 , 2025 , has amended Para 10.10 of the Handbook of Procedures (HBP) 2023, revising the framework for Stock & Sale Authorization of SCOMET items (Special Chemicals, Organisms, Materials, Equipment, and Technologies).
Key Highlights of the Revised Framework:
- Broadened Definition of Stockist:
Now includes not only subsidiaries or parent companies abroad but also Indian or Foreign OEMs, EMS providers, and Contract Manufacturers (CMs).
- Permitted Exports (with Restrictions):
- Categories Excluded: Category 0 (nuclear), Category 3A401, Category 6, and technology transfers under any category.
- Requires in-principle approval for re-export to countries other than the stockist’s own.
- Documentation & Compliance:
Exporters must submit:- Proof of corporate relationship with stockist
- End-use certificates
- Technical specifications
- Undertakings to avoid diversion to military or WMD uses
- Stockist registration documents
- Re-Export Policy:
- No further authorization required for re-export within pre-approved countries.
- For new countries, fresh application and IMWG review are mandatory.
- Reporting Obligations:
- Post-shipment reports must be submitted within 3 months for all in-country sales and re-exports.
- Annual inventory reports are due by January 31 each year.
- Repeat Orders Simplified:
Repeat exports to the same stockist and same approved countries can be processed without full committee review.
- Penalties for Non-Compliance:
Failure to report or misuse of authorization can lead to penalty or cancellation of the export license.
Impact of the Notification:
The revised procedure enhances export flexibility for Indian manufacturers while maintaining strict oversight on the end-use of sensitive dual-use goods. By expanding the definition of “stockist” and easing re-export rules (with proper monitoring), the DGFT aims to promote ease of doing business without compromising national security obligations.
The notice is effective immediately from May 16, 2025 and exporters are advised to comply with all new requirements under the amended Para 10.10 of HBP 2023.
