DGFT Ammends Policy related to General Authorisation for Export of Chemicals and related Equipment (GAEC)
DGFT released a Public Notice No: 15/2023 amending Para 10.16(A) of the Handbook of Procedures 2023 and Notification No: 12/2023 amending Para 10.08(ix) of the Foreign Trade Policy 2023 which is specifically related to General Authorisation for Export of Chemicals and related Equipment (GAEC). Please find below the analysis of the same:
Amendment in Para 10.16(A) of Handbook of Procedures 2023:
Existing Paragraph | Revised Paragraph |
10.16 General Authorisation for Export of Chemicals and related Equipment (GAEC) of SCOMET items
A. Procedure for grant of General Authorisation for Export of Chemicals and related equipment (GAEC)
I. In respect of export/re-export of SCOMET items under the Categories /Sub Categories of 1C, 1D, 1E, 3D001 and 3D004 (excluding software and technology), the applicant exporter shall submit an application for GAEC through online SCOMET portal and attach information in proforma -ANF 10 A;
10.16 A.(II) b. (ii) The applicant exporter declares that the items that are intended to be exported shall not be used for any purpose other than the purpose(s) stated in the EUC and that such use shall not be changed nor the items modified or replicated without the prior consent of the Government of India.; | 10.16 General Authorisation for Export of Chemicals and related Equipment (GAEC) of SCOMET items
A. Procedure for grant of General Authorisation for Export of Chemicals and related equipment (GAEC)
I. In respect of export/re-export of SCOMET items under the Categories / Sub Categories of 1C, ID, 1E, 3D001 and 3D004 (excluding software and technology), and those chemicals specified in the Appendix 10(N). to the specified countries mentioned in the Appendix 10(N). the applicant exporter shall submit an application for GAEC through online SCOMET portal and attach information in proforma-ANF-10A;
10.16 A.(II) b. (ii) The applicant exporter declares that the items that are intended to be exported shall not be used for any purpose other than the purpose(s) stated in the EUC and that such use shall not be changed nor the items modified or replicated without the prior consent of the Government of India. Further transfer/export/re-export under GAEC to the list of applicable countries specified in the Appendix 10(N) will be for civilian end use only;
10.16.A.(II)c.(iv) Any subsequent transfer/export/re-export under GAEC to the list of applicable countries specified in the Appendix 10(N) is only for civilian end use.
Para 10.16.A.(II)d A declaration is to be submitted by the exporter on Letter Head duly signed and stamped stating that export shall only be done for civilian end use.
Para 10.16.A.(II)e A declaration from the Indian exporter stating that that the transfers/exports/re-exports in the entire supply chain would be only for eligible list of countries as provided in Appendix 10(N). |
Analysis: As per the public notice; a new category of chemicals was added in Appendix 10(N) and list of applicable countries against these new categories of chemicals were updated in the same. The Appendix 10(N) lists specific SCOMET items category-wise and its relevant applicable countries for export. DGFT notified that the items intended to be exported shall not be used for any other purpose other than stated in the End User Certificate (EUC). The revised public notice also added a new para 10.16A.(II)c.(iv), which states that transfer/export/re-export under GAEC to the list of countries specified in newly added Appendix 10(N) will be for civilian end use only.
Amendment in Para 10.08(ix) of the Foreign Trade Policy 2023:
Existing Paragraph | New Paragraph |
10.08(ix) General Authorization for export of Chemicals and related equipments (GAEC) except software and technology: Export of chemicals (Excluding Software and Technology) listed in lC, lD, 3DOOI and 3D004 sub-categories is allowed to Australian Group( A G) countries and those listed in IE sub-category allowed for export to State Parties to the Chemical Weapons Convention (CWC) on the basis of a onetime General authorization for export of Chemicals and related equipment (GAEC) issued by DGFT with one time validity of 5 years subject to the post export reporting of all the exports done under the authorisation. | 10.08(ix) General Authorization for export of Chemicals and related equipment (GAEC) except software and technology:
Export of Chemicals (excluding Software and Technology) for export to specified countries as listed in Paragraph 10.16 of Handbook of Procedure is allowed on the basis of a onetime General Authorization for Export of Chemicals and related equipment (GAEC) issued by DGFT with one time validity of 5 years subject to the post export reporting of all the exports done under the authorisation. |
Analysis: The revised Paragraph 10.08(ix) provides clarification regarding the export of chemicals, which is permitted for specific countries outlined in Paragraph 10.16 of the Handbook of Procedure (HBP) 2023. This export is allowed through a one-time General Authorization for Export of Chemicals and related equipment (GAEC) issued by the DGFT, with a validity period of 5 years. Additionally, it is mandatory to report all exports made under this authorization after the export has taken place.
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