By Harsh Ashar January 17, 2025

SOP for Voluntary Disclosure of Non-Compliance/Violations related to Export of SCOMET Items and SCOMET Regulations.

The Directorate General of Foreign Trade (DGFT) has announced new Standard Operating Procedures (SOPs) for voluntary disclosure of non-compliance or violations related to the export of SCOMET (Special Chemicals, Organisms, Materials, Equipment, and Technologies) items and regulations. This initiative encourages exporters to self-report any past violations to help improve trade compliance and avoid penalties.

1. Types of Violations Covered:

Exporting SCOMET items without prior authorization.
Export to UNSC-sanctioned entities without knowledge
Unauthorized access or provision of technical data.
Failure to comply with reporting and record-keeping requirements.

2. Procedure for Voluntary Disclosure:

Exporters must notify DGFT immediately after discovering a violation and submit details within 30 days.
Documentation required includes export licenses, shipping documents, contracts, and more.

3. Mitigating Penalties:

The Inter-Ministerial Working Group (IMWG) may reduce penalties if the violation was reported voluntarily and cooperatively.
Factors considered include the nature of the violation, cooperation with investigations, and improvements to internal compliance processes.

This voluntary disclosure process helps businesses rectify past errors while promoting a culture of compliance. DGFT will evaluate each case on its merit and determine appropriate action.