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Trade Update 1


Update regarding Export Controls for the past 6 months

Measures taken by the licensing authority, Directorate General of Foreign Trade (DGFT), Ministry of Commerce and Industry.

A. Introduction of Global Authorisation for Intra-Company Transfer (GAICT) vide Public Notice 20/2015-2020 dated July 24, 2019.

The GAICT will be granted for SCOMET items/software/technology, excluding items falling under Category 0, 1B, 1C, 3A401, 5 and 6, in respect of intra-company re-export of items imported against license exception granted by the export control licensing authority of the country of parent company.

The following conditions must be satisfied to be eligible for this application.

a. The re-export is an intra company transfer in the same group of companies (parent company/ subsidiaries of parent company) based on a Master Service Agreement/Contract.
b. The items to be re-exported has been imported into India against a License Exception which has been granted by the export control licensing authority of the country of parent company.
c. The Indian Exporter makes a declaration of end- use of the re-export, agrees to allow on-site inspection and furnishes an ICP or demonstrates compliance to the parent company’s ICP.
d. Post-shipment details of each transfer/ consignment of exports under GAICT must be made to the SCOMET division, DGFT by the end of subsequent month of each quarter, in respect of exports made in the previous quarter.

Subsequent re-export by parent company will be subject to export control regulation of that country.

The license will be valid for 3 years from issue of license, unless there exists a validity of license exception for the parent company or its subsidiaries or the validity of the Master
Service Agreement/ Contract expires first.