SCOMET EXPORT CONTROL

Quick Reference Guide for Indian Exporters

This guide provides a practical reference on India's SCOMET (Special Chemicals, Organisms, Materials, Equipment and Technologies) export control regime — the framework governing exports of dual-use goods, technologies, and items with potential weapons of mass destruction (WMD) applications. SCOMET compliance is a mandatory legal obligation for all Indian exporters of controlled items.

1. What Is SCOMET?

SCOMET refers to Special Chemicals, Organisms, Materials, Equipment and Technologies — a classification system used by India to control the export of items that have potential dual-use applications (i.e. legitimate civilian uses as well as potential military, nuclear, biological, chemical, or radiological weapons applications).

The SCOMET regime is administered by the Directorate General of Foreign Trade (DGFT) under the Foreign Trade Policy (FTP) and is implemented through the ITC(HS) Schedule 2 (Export Policy). The export of any item listed on the SCOMET control list requires a SCOMET export licence from DGFT before the item can be exported from India.

SCOMET is India's equivalent of:

The EU Dual Use Regulation (Regulation (EU) 2021/821)

The US Export Administration Regulations (EAR) administered by BIS

The Wassenaar Arrangement control lists

India is a member of most multilateral export control regimes: the Missile Technology Control Regime (MTCR), the Wassenaar Arrangement, the Australia Group (AG — chemical and biological weapons precursors), and the Nuclear Suppliers Group (NSG). SCOMET aligns with the control lists of these regimes.

2. SCOMET Control List Structure

The SCOMET control list is set out in Appendix 3 to Schedule 2 of the ITC(HS) and is organised into eight categories:

3. Items Not Requiring a SCOMET Licence

Not all items with potential dual-use applications require a SCOMET licence. The following are generally not controlled:

Items listed in ITC(HS) Schedule 2 as "Free" (i.e. free to export without a licence) — the majority of goods.

Items that are controlled only when in a specific concentration, purity, or configuration — general-purpose industrial chemicals below the control threshold do not require a licence.

Technology that is in the public domain (publicly available without restriction) — "basic scientific research" is generally excluded.

Technology that is the minimum necessary for patent applications.

The key test is whether your specific item, in its specific form and at the specific quantity being exported, is listed on the SCOMET control list (Appendix 3 to ITC(HS) Schedule 2). If in doubt — check with DGFT or seek a classification ruling.

4. When Is a SCOMET Licence Required?

A SCOMET licence from DGFT is required if:

The item to be exported is listed on the SCOMET control list (Appendix 3 to ITC(HS) Schedule 2).

The item, though not on the SCOMET list, will be used (or is known to be intended for use) for a controlled purpose — this is the "catch-all" provision.

The exporter has been informed by DGFT or CBIC that a SCOMET licence is required for a specific export.

The item is being exported to a country subject to a UN Security Council arms embargo or a country to which India has imposed bilateral export restrictions.

The catch-all provision (Item 4) is particularly important: even if an item is not on the SCOMET list, if the exporter knows or suspects that the item will be used in connection with WMD development, missile programmes, or military applications in the destination country, the exporter must apply for a SCOMET licence before export.

5. How to Apply for a SCOMET Licence

Determine whether your item is listed on the SCOMET control list — search the ITC(HS) Schedule 2 Appendix 3 or contact DGFT for a classification guidance.

If a licence is required, file the SCOMET licence application on the DGFT online portal (dgft.gov.in) using Form AAYAAT NIRYAAT — 1 (ANF 2L for SCOMET).

The application must include: description of the item (technical specifications, quantity, value); end-user details (name, address, intended use); end-use certificate / end-user statement from the importing party; details of any re-export restrictions required; and supporting documents (purchase order, commercial invoice, technical specification).

DGFT reviews the application — for sensitive items, the application is referred to an inter-ministerial committee (Department of Defence, Ministry of External Affairs, DRDO, DAE, and DGFT).

Processing time: approximately 30–90 days depending on the item sensitivity and completeness of the application. Urgent cases can be expedited with justification.

If approved, the SCOMET licence specifies: the items permitted; the quantity; the destination country and end-user; any conditions (e.g. no re-export without prior approval); and the validity period (typically one year).

Export must occur within the licence validity period. Any partial export must be endorsed on the licence by customs.

6. End-User Certificate (EUC) and End-Use Monitoring

For controlled items, DGFT will typically require the foreign buyer to provide an End-User Certificate (EUC) — a declaration by the buyer confirming:

The buyer's identity and address.

The intended end-use of the goods.

That the goods will not be re-exported to a third country without prior written approval from the Government of India.

That the goods will not be used for any purpose contrary to India's export control obligations.

For nuclear materials (Category 0), India requires Government-to-Government assurances as a condition of export. For other sensitive categories, the EUC from the buyer is generally sufficient.

Post-shipment end-use verification: DGFT and the Ministry of External Affairs may conduct post-shipment end-use visits or require reports from the buyer confirming the goods are being used as stated in the EUC. Indian exporters must cooperate with any such verification.

7. SCOMET Red Flags — Indicators of Diversion Risk

Indian exporters should be alert to the following indicators that a proposed export may involve diversion to an unauthorised end-use or end-user:

Buyer is unfamiliar with the technical application of the goods or the intended use is implausible given their business.

Buyer is located in a country known for procurement of WMD-related items or subject to UN/India sanctions.

Buyer requests unusual payment terms — e.g. cash, untraceable payment methods, or through a third country.

Order quantity is unusual — far exceeding the quantity a legitimate buyer in that sector would normally require.

The item has no obvious civilian application, or the civilian application claimed is implausible.

Buyer is unwilling to provide an end-user certificate or end-use information.

Buyer requests that the item be consigned to a different party or shipped to a different country from the stated destination.

Buyer requests removal of technical markings, manuals, or safety features.

If any red flag is present, the exporter must pause the transaction, escalate to their compliance officer, and consider whether to seek a SCOMET licence even if the item is not listed on the control list (catch-all provision). Exporting in the face of known red flags without a licence is a criminal offence under the Foreign Trade (Development and Regulation) Act 1992.

8. Penalties for SCOMET Violations

Failure to obtain a required SCOMET licence, making false statements in a SCOMET application, or knowingly exporting controlled items to prohibited end-users can result in:

Suspension or revocation of the IEC (Importer Exporter Code).

Monetary penalties under the Foreign Trade (Development and Regulation) Act 1992.

Criminal prosecution under the Weapons of Mass Destruction and their Delivery Systems (Prohibition of Unlawful Activities) Act 2005 — which carries imprisonment of up to 10 years and/or fines.

Denial of future export licences and export privileges.

Reputational damage and potential debarment from government contracts.

9. SCOMET Compliance Checklist

Doc 60 — SCOMET Export Control Quick Reference Guide — Neutral Template