DGFT Introduces Voluntary Disclosure Guidelines For SCOMET Export Violations
Date
1/17/2025 4:11:54 AM
(MENAFN- KNN India)
New Delhi, Jan 17 (KNN) The Directorate General of Foreign Trade (DGFT) has introduced new guidelines for the voluntary disclosure of violations related to SCOMET items, addressing concerns over dual-use technology exports.
The guidelines establish a formal process for companies to report non-compliance in the export of Special Chemicals, Organisms, Materials, Equipment and Technologies (SCOMET), which have both civilian and military applications.
Under the newly issued standard operating procedure, exporters are required to immediately notify the DGFT upon discovering and internally confirming any violations.
These infractions may include unauthorised exports or failures to meet mandatory reporting requirements. The framework provides for an inter-ministerial working group within the directorate to evaluate each disclosure on its individual merits.
The DGFT acknowledges that responsible exporters may inadvertently fail to comply with provisions under various regulatory frameworks, including the Foreign Trade Act, the Weapons of Mass Destruction Act, and the Customs Act.
The initiative aims to promote transparency and awareness among exporters while providing a structured approach to addressing compliance issues.
Following the submission of violation details, the working group will make recommendations to the DGFT, which may result in three possible outcomes: a notification that no further action is required, the issuance of a show cause notice, or an adjudication order if an adverse report is submitted.
This regulatory enhancement comes against the backdrop of increased international scrutiny of dual-use technology exports.
In April 2023, the United States imposed sanctions on multiple entities, including three Indian companies, for allegedly facilitating unauthorised trade and transfers of unmanned aerial vehicles (UAVs) to support Iranian military interests, particularly concerning Russia's military operations in Ukraine.
(KNN Bureau)
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