Guidelines for Export Of Chemicals Under GAEC

The Directorate General of Foreign Trade (DGFT), vide a Trade Notice No. 30/2021-22 dated January 13, 2022, issued guidelines for submission of online application for one-time Registration for SCOMET license and Post-reporting requirements for Export of chemicals under General authorization for Export of Chemicals (GAEC) and related equipment with effect from January 19, 2022.

For more details on DGFT's New SCOMET Module, click here

SCOMET license

SCOMET item is an acronym for Special Chemicals, Organisms, Materials, Equipment, and Technologies, and these are dual-use items that can be used for both civilian and military applications. India's Foreign Trade Policy regulates the Export of items on the SCOMET list. The exporter must obtain a license from the Directorate General of Foreign Trade, Ministry of Commerce, to export SCOMET.

One-time Registration for obtaining a General SCOMET license

The one-time Registration for obtaining a General SCOMET license is required to be obtained from DGFT for Export under General authorization for Export of Chemicals and related equipment (GAEC) separately for each Category/Sub-Category. This will provide the Exporters a Unique Authorization/License number for the Export of Chemicals (Under 1C, 1D, 3D001, and 3D004) to any end-user in 42 specified countries and 1E chemicals to Chemical Weapon Convention (CWC) signatory parties.

Prescribed Date to Submit Application

All applications for one-time Registration for obtaining a GAEC SCOMET license are required to be filed and submitted through DGFT's online portal with effect from 19.01.2022

Validity Period of SCOMET license

GAEC issued for export / re-export of SCOMET items (excluding software and technology) shall be valid for five years from the date of issue of GAEC subject to subsequent post reporting(s) every quarter to be reported within 30 days from the last quarter; GAEC cannot be revalidated in Paragraph 2.80 of HBP of FTP 2015-20.

Post reporting of Export of chemicals under GAEC

Post Reporting of Export of chemicals under General authorization for Export of Chemicals and related equipment (GAEC) permitted to specified countries is also required to be filled through DGFT online post-reporting module for exports with effect from 19.01.2022 Failure to do so may entail the imposition of a penalty and suspension/revocation of GAEC.

General Conditions and Exclusions

GAEC would not be issued in case of items to be used to design, develop, acquire, manufacture, possess, transport, transfer, and use for chemical, biological, nuclear weapons or for missiles capable of delivering weapons of mass destruction and their delivery system; GAEC would not be issued for countries or entities covered under UNSC embargo or sanctions list or on assessment of proliferation concerns, or national security and foreign policy considerations, etc.; IMWG shall reserve the right to deny the issue of GAEC without assigning any reason(s).

Application Procedure

All applicant exporters seeking GAEC authorization for SCOMET items are advised to follow the below-mentioned guidelines.

Apply online by navigating to the official website of DGFT website from the service tab click on the Export Management Systems option.
The link will redirect to the new page; select the License for SCOMET exports option.
The link will redirect to a new page by clicking on Apply for New Authorization. Click on the Fresh Export under GAEC.

Post-reporting for Export under GAEC

Apply online for post-reporting for Export under GAEC by navigating the DGFT website.
From the Services option, click on the Export Management System, and the link will redirect to a new page.
By clicking on the License for SCOMET exports, the user can apply for the Post-reporting of the issued SCOMET Export Authorization.

Import Export Code

The Import Export Code is a primary document that is necessary for commencing Import-export activities. For exporting or importing any goods or services the IE code is to be obtained.IEC has numerous benefits for the growth of the business. Certainly, you cannot ignore the necessity of IE code registration as it is mandatory. You can apply for an Import Export code through IndiaFilings and obtain it within 6 to 7 days.