DGFT: The DGFT has announced a draft amendment to the Foreign Trade Policy (FTP) 2023 and the Handbook of Procedures (HBP) 2023 to include provisions for the export of SCOMET items for Testing and Evaluation purposes. (28.04.2025)

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DGFT

The DGFT has announced a draft amendment to the Foreign Trade Policy (FTP) 2023 and the Handbook of Procedures (HBP) 2023 to include provisions for the export of SCOMET items for Testing and Evaluation purposes. This amendment is intended to regulate the temporary export of SCOMET items for demonstration, testing, and evaluation abroad.

Key points from the amendment include:

  1. Purpose and Scope:
    • The amendment expands the scope of Paragraph 10.13 of HBP 2023, adding provisions for the export of SCOMET items for testing and evaluation, alongside demonstration and exhibition purposes.
  2. Authorization Process:
    • The export of SCOMET items for testing and evaluation will be authorized by the Chairman IMWG (Inter-Ministerial Working Group) based on specific conditions. These conditions include:
      • No commercial transactions (sale, rent, lease, etc.) involved.
      • No technology transfer or exchange of sensitive information.
      • Temporary export of items for a defined period, with return expected within 120 days or as extended.
      • No technical value addition during the testing/evaluation phase.
  3. Document Requirements:
    • Proof of event (e.g., invitation letters, event details) and undertakings from the exporter confirming compliance with conditions, including the return of items and no commercial use during testing.
    • Legal undertakings and proof of non-consumption or destruction of items during the evaluation will be required.
  4. Exclusions and Restrictions:
    • Export authorization will not be granted for destinations subject to UN Security Council sanctions or high-risk entities.
    • No technical value addition is allowed during testing and evaluation.
  5. Stakeholder Consultation:
    • The DGFT has sought inputs from stakeholders (including exporters, industry associations, and experts) on the draft amendments. Stakeholders are invited to submit their suggestions within 10 days of the issuance of this notice.
  6. Implementation:
    • The amendments will be implemented immediately upon final approval, making the provision for the export of SCOMET items for testing and evaluation purposes effective in the updated HBP 2023.

[Trade Notice No. 03/2025-26 dated 23.04.2025]