DGFT issues policy on re-validation to export authorization for SCOMET items

DGFT - export authorization - SCOMET items -Taxscan

The Director-General of Foreign Trade (DGFT) on Monday issued the policy on re-validation to export authorization for SCOMET items.

In response to NASSCOM’s representation to grant an automatic extension of export authorizations for SCOMET items (expiring between March and June 2020), the Directorate General of Foreign Trade (DGFT) has issued Public Notice 10/2015-20 on 8 June 2020.

After the issuance of the Public Notice the DGFT (Hars) has received a large number of requests from industry seeking re-validation to export authorization issued for technology/software transfer on the grounds that the export of technology/software is an ongoing and continuous process, and within the scope of the terms and conditions agreed to between the parties.

The issue has been examined in consultation with the Inter-ministerial Working Group and has been decided that export obligation can not be quantified in terms of item or value of exports in technology/software authorizations. Hence revalidation to such export authorizations need not be considered.

“However, taking into consideration that exports do not suffer, it has been decided to grant only one extension of six months, as a one-time relief in all SCOMET export authorization involving technology transfer (under any category of SCOMET) expiring by 30.09.2020, on submission of application in prescribed Performa to DGFT,” the notification said.

“Henceforth, the validity period of SCOMET export authorization for the transfer of technology/software under any category of SCOMET shall be twenty-four months only or validity period of export authorization allowed in terms of Para 2.16 of HBP of FTP 2015-20. No subsequent revalidation in such authorizations shall be permissible,” the DGFT said.

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