India Publishes New Rules on SCOMET Exports to SEZs

In November 2021, India’s Directorate General of Foreign Trade (‘DGFT’) issued a public notice amending export authorisation requirements for the supply of SCOMET items from a Domestic Tariff Area (‘DTA) to Special Economic Zones (‘SEZ’). The notice amends Paragraph 2.76 of the Handbook of Foreign Trade Procedures.

The unamended text says: ‘No export authorisation is required for supply of SCOMET items from DTA to SEZ. However, all supplies of SCOMET items from DTA to SEZ will be reported to the Development Commissioner of the respective SEZ by the supplier in the prescribed proforma…within one week of the supplies getting effected.’

Under the amendment: ‘No export authorisation is required for supply of SCOMET items from DTA to SEZ/EOU [‘Export Oriented Units’]. Export authorisation is however required if the SCOMET items are to be physically exported outside the SEZ/EOU…i.e., to another country.’

Read more here: https://content.dgft.gov.in/Website/dgftprod/866b7474-ef7a-4cec-9abb-29908c58f7a6/PN%2032%20English.pdf