SCOMET stands for Special Chemicals, Organisms, Materials, Equipment and Technologies. It is required for goods which have dual-use and are delicate in nature such as electronics, certain chemical and military related technology. The SCOMET license is a mandatory authorization issued by the Directorate General of Foreign Trade (DGFT) under India’s Foreign Trade Policy. To ensure worldwide safety and accountable trade, Indian exporters must secure this license before shipments. Without a proper license, shipments can be detained, businesses charged, or export rights may get suspended.

The SCOMET list is categorized into 9 categories, including nuclear items, chemicals, micro-organisms, aerospace equipment, munitions, and advanced technologies. These include:

• Category 0: Nuclear materials, nuclear-related items.
• Category 1: Toxic chemicals and precursors.
• Category 2: Micro-organisms, toxins.
• Category 3: Materials, chemicals, micro-organisms, toxins.
• Category 4: Nuclear-related other items.
• Category 5: Aerospace systems, equipment, electronics, computers, telecom.
• Category 6: Munitions list.
• Category 7: Reserved.
• Category 8: Special materials, advanced technology items.

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SCOMET license is necessary for goods, technology or service is associated to the SCOMET list. Common instances are: 

• Export of Restricted Goods: Any commodity classified under the SCOMET list cannot be shipped without DGFT approval.
• Re-export of Restricted Goods: In case of goods which were imported earlier, re-exporting also requires a valid license.
• Technology Transfer: Includes sharing designs, blueprints, training, or software related to SCOMET items.
• Repair or return of goods: Items sent abroad for repair, calibration, or return also require approval.
• Exports to sensitive countries: Extra caution applies when trading with DGFT-listed sensitive nations.

• Exporter must have a valid IEC.
• Must file an online application with complete technical details of items.
• End-Use Certificate (EUC) from foreign buyer/importer is mandatory.
• Review by Inter-Ministerial Working Group (IMWG).
• Strict compliance with international treaties (e.g., Wassenaar Arrangement, MTCR).

Applying for a SCOMET license needs specific paperwork. Key documents include:

• IEC (Importer-Exporter Code).
• DGFT ANF-10A Application Form (for dual-use items and repair/replacement applications under SCOMET)
• Technical Specification and Technical Drawing of the product (datasheets, product details, specifications)
• End-Use Certificate (EUC) from buyer/end-user.
• Category-Specific Supporting Documents (depending on the Category of SCOMET item)

Applying for a SCOMET license in India entails exporters to follow a structured procedure. Exporters must follow each step carefully to escape rejection or unnecessary interruptions. Steps to apply

• Check Classification: The first step is to carefully verify whether your product falls on the SCOMET list, as exporting restricted items without appropriate classification can lead to serious compliance issues.
• Prepare Documentation: Collect all the required documents comprising End-Use Certificates, technical descriptions, purchase agreements, and company details to ensure your application fulfills DGFT’s strict analysis and approval needs.
• Online Application: Submit the ANF-10 A form, uploading every necessary document, technical detail, and compliance declaration to allow smooth submission and faster approval process.
• IMWG Review: Once submitted, your application will be reviewed by the Inter-Ministerial Working Group, which involves MoD, MEA, DRDO, ISRO, and other authorities to protect national security.
• Clarifications (If any): If the authorities request any further data, the applicant must promptly give clarifications or additional documents, avoiding any delays in the licensing process.
• Grant of License: After successful review and clearance by the IMWG, the DGFT issues the official SCOMET license, allowing the export strictly as per approved conditions.

Staying compliant with SCOMET regulations provides numerous benefits:

• Smooth exports: By getting the correct license, exporters can prevent unnecessary shipment delays, ensuring their products reach the destination without any additional costs or interruptions.
• Credibility with buyers: International buyers prefer to work with exporters who adhere with all trade standards, as this increases trust in long-term partnerships and ensures transparency in sensitive products transactions.
• No penalties: Compliance safeguards exporters from financial penalties, IEC suspension, blacklisting, or criminal charges, giving them peace of mind while engaging in international trade of restricted items.
• Global reputation: Adherence to licensing principles highlights an exporter's responsibility and moral practices, reinforcing their global reputation as a reliable and compliant supplier of high-value and sensitive products.

The validity of SCOMET license is typically for 24 months that is 2 years from the date of issue. Exporters are required to apply for renewal before the expiration of their license in order to continue the shipments of their items. In some cases, DGFT may require exporters to offer post-shipment reports or compliance updates to maintain full transparency and responsibility in international trade.

Penalties for Exporting SCOMET Items without Authorisation

Exporting restricted items without a legal license attracts strict penalties, including:

• Suspension or cancellation of IEC.
• Monetary fines under the FTDR Act, 1992.
• Blacklisting from future exports.
• Criminal liability in severe cases.

The DGFT charges a processing Cost of INR 1,000 for each SCOMET license application submitted through the online system, and INR 200 for application for amendment/ correction in the Authorization. However, the overall cost may increase depending on the number of products covered, complexity of documentation, and professional consultancy charges involved in preparing and filing the application.

Corpseed is a top consulting firm in India that offers expert regulatory, licensing, and compliance solutions to exporters handling sensitive and restricted goods. Obtaining a SCOMET license includes dealing with complex procedures, strict documentation, and multi-level scrutiny from government authorities. Our dedicated team ensures exporters navigate this process with confidence, speed, and accuracy, eliminating unnecessary delays and compliance risks.

• Specialized Advisory Support: Our team of compliance professionals, industry specialists, and legal experts work closely with businesses to interpret DGFT regulations and provide tailored guidance based on the specific product, end-use, and destination country.
• Simplified Licensing & Documentation: We assist in drafting technical descriptions, end-use certificates, purchase orders, and declarations with complete accuracy, ensuring faster approvals from DGFT.
• End-to-End Support: From identifying whether your item falls under the SCOMET list, to preparing the online ANF-2O application, coordinating with IMWG, and securing the final license, we manage the entire process for exporters.
• Regulatory Monitoring & Updates: DGFT frequently issues amendments, trade notices, and policy updates. We continuously monitor these changes and keep our clients informed with timely alerts, ensuring full compliance and avoiding risks of inadvertent violations.