S.O. (E) In exercise of powers conferred by Section 5 and Section 14 A of the Foreign Trade (Development & Regulation) Act, 1992 {FT(D&R) Act,1992} as amended in 2010, the Central Government hereby makes amendments to the list of specified goods, services and technologies, i.e. Special Chemicals, Organisms, Materials, Equipment and Technologies (SCOMET) that was notified vide Notification No.38 (RE-2010) /2009-2014 dated 31st March, 2011. Annexure to this notification will replace the existing ‘Appendix 3’ to Schedule- 2 of ITC (HS) Classification of Export and Import Items, 2009-14.

2. SCOMET Categories in which amendments have been made are as follows:-

(1) In Category 3A113, the existing entry has been numbered as “a”. After the entry against “a”, entry “b” has been inserted.

(2) In Category 3A201, after the entry against clause f, clause “g” has been inserted.

(3) In Category 3A301, for the word “spherical” the words “spherical or spheroidal” has been substituted.

(4) In Category 3A303, new entry has been added after the entry “Polybutadiene acrylonitrile (PBAN)”.

(5) In Category 3A306, some figures and words have been added after the letters “(HNF),”.

(6) In Category 3A310, after the entry against clause d; clauses “e”, “f ” and “g” have been inserted.

(7) In Category 3A401, after the entry against clause d, clause “e” has been inserted.

(8) In Category 3B007, after the word “machining”, the word “, extruding” has been added.

(9) Category 5A201, Category 5A206, and Category 5A217.c. have been substituted.

(10) In Category 5A217, after the entry against clause e, clause “f ” has been inserted.

(11) In Category 5B, after the entry against clause l, clause “m” has been inserted.

(12) In 5C007, the existing entry has been numbered as “1” after which entry “2” has been inserted.

(13) The entry in clause b of Category 5C010 has been substituted.

(14) Category 5C017 and Category 5C019 have been substituted.

3. Purpose of the notification: Annexure to this notification contains the amended ‘Appendix 3’ to Schedule- 2 of ITC (HS) Classification of Export and Import Items, 2009-14 which will replace the existing one.
 

Export of Special Chemicals, Organisms, Materials, Equipment and Technologies (SCOMET) listed below shall be permitted only against an export licence issued in this behalf unless export is prohibited or is permitted without licence subject to fulfillment of conditions, if any, as indicated under/against any specific category or item.

Provisions of Chapter IV A of the FT(D&R) Act,1992 as amended in 2010 shall apply to the goods, services and technologies specified in the list below.

Supply of SCOMET Items from DTA to SEZ

No export permission is required for supply of SCOMET items from DTA to SEZ. However, all supplies of SCOMET items from DTA to SEZ will be reported to the Development Commissioner of the respective SEZ by the supplier in the prescribed proforma (Annexure 1) within one (1) week of the supplies getting effected. An annual report of such supplies from DTA to SEZ shall be sent to SCOMET Cell, DGFT (Hqrs), Department of Commerce, Udyog Bhawan, Maulana Azad Road, New Delhi-110011, by the Development Commissioner (DC), SEZ in the prescribed proforma (Annexure 2) . Report by the DC, SEZ to be filed by 15th May of every financial year for the supplies effected during the preceding financial year.

Export of SCOMET Items from SEZ to outside the country

Export permission is required if the SCOMET items are to be physically exported outside the country from SEZ i.e. to another country (Refer Rule 26 of the SEZ Rules, 2006).

It is mandatory for all companies and their subsidiaries registered in India and all other business entities operating in India and involved in the manufacture, processing and use of Special Chemicals, Organisms, Materials, Equipment and Technologies (SCOMET) listed below to obtain permission of the Central Government before entering into any arrangement or understanding that involves an obligation to facilitate or undertake site visits, on-site verification or access to records/ documentation, by foreign Governments or foreign third parties, either acting directly or through an Indian party or parties. Requests for such permissions shall be considered in the manner in which requests for export/import licence are considered.

Provided that where obligations involving site visits, on-site verification or access to records/ documentation by foreign governments or foreign third parties are to be undertaken pursuant to a bilateral agreement or a multilateral treaty to which India is a party, the provisions of the relevant agreement or treaty shall apply.

Exporters are advised to refer to the relevant guidelines relating to the export of SCOMET items in the Handbook of Procedures (Vol.I), as issued from time to time.

Glossary: Expressions used in the SCOMET List have the following meanings:

“Accuracy” usually measured in terms of inaccuracy, means the maximum deviation, positive or negative, of an indicated value from an accepted standard or true value.

“Active flight control systems” are systems that function to prevent undesirable “aircraft” and missile motions or structural loads by autonomously processing outputs from multiple sensors and then providing necessary preventive commands to effect automatic control.

“Aircraft”: A fixed wing, swivel wing, rotary wing (helicopter), tilt rotor or tilt-wing airborne vehicle.

“Angular position deviation” means the maximum difference between angular position and the actual, very accurately measured angular position after the work piece mount of the table has been turned out of its initial position.

“Composite” means a “matrix” and an additional phase or additional phases consisting of particles, whiskers, fibres or any combination thereof, present for a specific purpose or purposes.

“Composite theoretical performance” (“CTP”) is a measure of computational performance given in millions of theoretical operations per second (Mtops), calculated using the aggregation of computing elements (CE).

“Contouring control” means two or more “numerically controlled” motions operating in accordance with instructions that specify the next required position and the required feed rates to that position. These feed rates are varied in relation to each other so that a desired contour is generated.

“CTP” is equivalent to “composite theoretical performance

“Designed or modified” describes equipment, parts or components which, as a result of “development,” or modification, have become endowed with specified properties that make them fit for a particular application.

“Development”: Activity related to all phases prior to “production” such as design, design research, design analysis, design concepts, assembly and testing of prototypes, pilot production schemes, design data, process of transforming design data into a product, configuration design, integration design, layouts.

“Digital computer” means equipment which can, in the form of one or more discrete variables, perform all of the following:

a. Accept data;

b. Store data or instructions in fixed or alterable (writable) storage devices;

c. Process data by means of a stored sequence of instructions which is modifiable; and

d. Provide output of data.

N.B.: Modifications of a stored sequence of instructions include replacement of fixed storage devices, but not a physical change in wiring or interconnections.

“Explosives”: Solid, liquid or gaseous substances or mixtures of substances which, in their application as primary, booster, or main charges in warheads, demolition and other applications, are required to detonate.

“Fibrous or filamentary materials” include:

a. Continuous “monofilaments”;

b. Continuous “yarns” and “rovings”;

c. “Tapes”, fabrics, random mats and braids;

d. Chopped fibres, staple fibres and coherent fibre blankets;

e. Whiskers, either monocrystalline or polycrystalline, of any length;

f. Aromatic polyamide pulp.

“Hybrid computer” means equipment which can perform all of the following:

a. Accept data;

b. Process data, in both analogue and digital representations; and

c. Provide output of data.

“Image enhancement” means the processing of externally derived information-bearing images by algorithms such as time compression, filtering, extraction, selection, correlation, convolution or transformations between domains (e.g., fast Fourier transform or Walsh transform). This does not include algorithms using only linear or rotational transformation of a single image, such as translation, feature extraction, registration or false coloration.

“Information security” is all the means and functions ensuring the accessibility, confidentiality or integrity of information or communications, excluding the means and functions intended to safeguard against malfunctions. This includes cryptography, ‘cryptanalysis’, protection against compromising emanations and computer security.

N.B.: ‘Cryptanalysis’: analysis of a cryptographic system or its inputs and outputs to derive confidential variables or sensitive data, including clear text.

“Insulation” is applied to the components of a rocket motor, i.e. the case, nozzle, inlets, case closures, and includes cured or semi-cured compounded rubber sheet stock containing an insulating or refractory material. It may also be incorporated as stress relief boots or flaps.

“Interior lining” is suited for the bond interface between the solid propellant and the case or insulating liner. Usually a liquid polymer based dispersion of refractory or insulating materials, e.g. carbon filled hydroxyl terminated polybutadiene (HTPB) or other polymer with added curing agents sprayed or screeded over a case interior.

“Isolated live cultures” includes live cultures in dormant form and in dried preparations.

“Isostatic presses” mean equipment capable of pressurising a closed cavity through various media (gas, liquid, solid particles, etc.) to create equal pressure in all directions within the cavity upon a workpiece or material.

“Laser”: An assembly of components which produce both spatially and temporally coherent light that is amplified by stimulated emission of radiation.

“Linearity” (usually measured in terms of non-linearity) means the maximum deviation of the actual characteristic (average of upscale and downscale readings), positive or negative, from a straight line so positioned as to equalise and minimise the maximum deviations.

“Matrix” means a substantially continuous phase that fills the space between particles, whiskers or fibres.

“Measurement uncertainty” is the characteristic parameter which specifies in what range around the output value the correct value of the measurable variable lies with a confidence level of 95 %. It includes the uncorrected systematic deviations, the uncorrected backlash and the random deviations.

“Microcircuit”: A device in which a number of passive and/or active elements are considered as indivisibly associated on or within a continuous structure to perform the function of a circuit.

“Microprogrammes”: A sequence of elementary instructions maintained in a special storage, the execution of which is initiated by the introduction of its reference instruction register.

“Missiles” means complete rocket systems and unmanned aerial vehicle systems.

“Modified” in the context of “software” describes “software” which has been intentionally changed such that it has properties that make it fit for specified purposes or applications. Its properties may also make it suitable for purposes or applications other than those for which it was “modified.”

“Monofilament” or filament is the smallest increment of fibre, usually several micrometres in diameter.

“Monolithic integrated circuit” means a combination of passive or active ‘circuit elements’ or both which:

a. Are formed by means of diffusion processes, implantation processes or deposition processes in or on a single semiconducting piece of material, a so-called ‘chip’;

b. Can be considered as indivisibly associated; and

c. Perform the function(s) of a circuit.

N.B.: ‘Circuit element’ is a single active or passive functional part of an electronic circuit, such as one diode, one transistor, one resistor, one capacitor, etc.

“Neural computer” means a computational device designed or modified to mimic the behaviour of a neuron or a collection of neurons, i.e., a computational device which is distinguished by its hardware capability to modulate the weights and numbers of the interconnections of a multiplicity of computational components based on previous data.

“Numerical control” means the automatic control of a process performed by a device that makes use of numeric data usually introduced as the operation is in progress.

“Optical integrated circuit” means a “monolithic integrated circuit” or a hybrid integrated circuit, containing one or more parts designed to function as a photo sensor or photo emitter or to perform (an) optical or (an) electro-optical function(s).

“Precursors”: Speciality chemicals used in the manufacture of explosives.

“Pressure transducers” are devices that convert pressure measurements into an electrical signal.

“Production” means all production stages (e.g., product engineering, manufacture, integration, assembly (mounting), inspection, testing, quality assurance);

“Production equipment”: Tooling, templates, jigs, mandrels, moulds, dies, fixtures, alignment mechanisms, test equipment, other machinery and components therefor, limited to those specially designed or modified for “development” or for one or more phases of “production”.

“Production facilities”: Equipment and specially designed “software” therefor integrated into installations for “development” or for one or more phases of “production”.

“Programmes”: A sequence of instructions to carry out a process in, or convertible into, a form executable by an electronic computer.

“Propellants”: Substances or mixtures that react chemically to produce large volumes of hot gases at controlled rates to perform mechanical work.

“Public domain” means a domain that has no restrictions upon dissemination of information within or from it; the existence of any legal rights to the intellectual property in that information does not remove the information from being in “public domain”.

“Radiation hardened”: Means that the component or equipment is designed or rated to withstand radiation levels which meet or exceed a total radiation dose of 5 x 103 Gy or 5 x 105 rads (Si).

“Required”: As applied to “technology”, refers to only that portion of “technology” which is peculiarly responsible for achieving or exceeding the controlled performance levels, characteristics or functions. Such “required” “technology” may be shared by different products.

“Resolution” means the least increment of a measuring device; or on digital instruments, the least significant bit.

“Roving” is a bundle (typically 12-120) of approximately parallel ‘strands’.

N.B.: ‘Strand’ is a bundle of “monofilaments” (typically over 200) arranged approximately parallel.

“Settling time” means the time required for the output to come within one-half bit of the final value when switching between any two levels of the converter.

“Signal processing” means the processing of externally derived information-bearing signals by algorithms such as time compression, filtering, extraction, selection, correlation, convolution or transformations between domains (e.g., fast Fourier transform or Walsh transform).

“Software”: A collection of one or more “programmes”, or “micro-programmes”, fixed in any tangible medium of expression. However, unless otherwise provided for against any item on the SCOMET List, the List does not control “software” which is either in the public domain or is generally available to the public by being :

a. Sold from stock at retail selling points without restriction, by means of:

1. Over-the-counter transactions;

2. Mail order transactions; or

3. Telephone call transactions; and

b. Designed for installation by the user without further substantial support by the supplier.

“Space qualified”: Products designed, manufactured and tested to meet the special electrical, mechanical or environmental requirements for use in the launch and deployment of satellites or high altitude flight systems operating at altitudes of 100 km or higher.

“Stability” means the standard deviation (1 sigma) of the variation of a particular parameter from its calibrated value measured under stable temperature conditions. This can be expressed as a function of time.

“Specially designed” qualifies the description of equipment, parts, components or “software” which, as a result of “development”, have unique properties that distinguish them for certain predetermined purposes. For example, a piece of equipment that is “specially designed” will only be considered so if it has no other function or use. Thus a piece of manufacturing equipment that is “specially designed” to produce a certain type of component will only be considered such if it is not capable of producing other types of components.

“Tape” is a material constructed of interlaced or unidirectional “monofilaments”, ‘strands’, “rovings”, “tows”, or “yarns”, etc., usually preimpregnated with resin.

N.B.: ‘Strand’ is a bundle of “monofilaments” (typically over 200) arranged approximately parallel.

“Technology” means, except as otherwise provided for against any item in the SCOMET List, information (including information embodied in “software”) other than information in the “public domain”, that is capable of being used in:

a. the development, production or use of any goods or software;

b. the development of, or the carrying out of, an industrial or commercial activity or the provision of a service of any kind.

Explanation: When technology is described wholly or partly by reference to the uses to which it (or the goods to which it relates) may be put, it shall include services which are provided or used, or which are capable of being used, in the development, production or use of such technology or goods.

“Tow” is a bundle of “monofilaments”, usually approximately parallel.

“Toxins” means toxins in the form of deliberately isolated preparations or mixtures, no matter how produced, other than toxins present as contaminants of other materials such as pathological specimens, crops, foodstuffs or seed stocks of “microorganisms”.

“Unmanned Aerial Vehicle” (“UAV”) means any aircraft capable of initiating flight and sustaining controlled flight and navigation without any human presence on board.

“Usable in,” “usable for,” “usable as” or “capable of” qualifies the description of equipment, parts, components, materials, technology or “software” which are suitable for a particular purpose. There is no requirement that the equipment, parts, components, technology or “software” should have been configured, modified or specified for that particular purpose. (Contrast with “specially designed” – see above).

“Use” includes operation; installation (including on site installation); maintenance; repair; overhaul; refurbishing.

“Vaccine” is a medicinal product in a pharmaceutical formulation licensed by, or having marketing or clinical trial authorisation from, the regulatory authorities of either the country of manufacture or of use, which is intended to stimulate a protective immunological response in humans or animals in order to prevent disease in those to whom or to which it is administered.

“Yarn” is a bundle of twisted ‘strands’.

N.B.: ‘Strand’ is a bundle of “monofilaments” (typically over 200) arranged approximately parallel.

Items on the SCOMET List are organized in the following categories.
 

(Anup K. Pujari)

Director General of Foreign Trade
dgft@nic.in

[Issued from File No. 01/91/171/26(1)/AM-11/Export Cell(SCOMET)]