The DGFT (Directorate General of Foreign Trade) issued a clarification in its public notice on re-validation to export authorizations for SCOMET (Special Chemicals, Organisms, Materials, Equipment and Technologies) items. This public notice dates to 8th June 2020. This notice had stated that such re-validation is considered on merits for 6 months or at the most 12 months. It further stated that one of the main reasons for re-validation is to meet left-over export obligations in quantity or value terms.
Subsequent to the said notice, DGFT received numerous requests for re-validation to export authorizations issued for technology/ software transfer. It the industries contended that export of technology/ software is an ongoing and continuous process. They also asserted that such exports were within the terms and conditions agreed between the parties.
The DGFT therefore now categorically elucidates that export obligations cannot be quantified in terms of item/ value of exports in technology/ software authorizations. As a result, re-validation to such export authorizations will not be considered. This decision was arrived at after consultations with the Inter-Ministerial Working Group. The DGFT has conveyed this through its notification dated 31st August 2020.
However, with the aim of ensuring that the exports do not deteriorate, the DGFT will grant a single extension of six months as a one-time relief. This will apply to all SCOMET export authorizations involving technology transfer that expire by 30th September 2020. To avail of this facility, an application must be submitted to the DGFT in the prescribed format.
From now onwards, SCOMET export authorizations for transfer of technology/ software under any category will be valid only for 24 months or as per the period specified in the Handbook of Procedures of the Foreign Trade Policy of 2015-2020.
