DGFT Public Notice No.50/2024-2025; 10th March 2025 Summary of the Amendment to Para 10.12(D) of the Handbook of Procedures 2023 Revised Procedure for General Authorization for Export After Repair (GAER).

[YAGAY andSUN]

DGFT Public Notice No.50/2024-2025; 10th March 2025

The Government of India, through the Directorate General of Foreign Trade (DGFT), has announced an amendment to Para 10.12(D) of the Handbook of Procedures (HBP) 2023 with immediate effect. This amendment introduces a revised procedure for General Authorization for Export After Repair (GAER) for SCOMET (Special Chemicals, Organisms, Materials, Equipment, and Technologies) items that are imported into India for repair and subsequently re-exported to related entities and repair supply chains abroad.

Key Highlights of the Revised Procedure:

1. General Authorization for Export After Repair (GAER):
   • GAER allows exporters to re-export SCOMET items to related entities (such as a subsidiary or parent company abroad) and authorized vendors or Original Equipment Manufacturers (OEMs) after repair in India, based on a one-time authorization, subject to quarterly post-reporting.
   • This procedure applies to items that are imported under an agreement for repair and whose characteristics are unchanged post-repair, with no value added during the repair.
2. Eligibility and Conditions:
   • The repair must be carried out under an agreement (Master Service Agreement, Electronic Manufacturer Service agreement, etc.), and the items can only be exported to related entities or authorized vendors.
   • The exporter is required to register for GAER once and then report subsequent exports/re-exports.
   • SCOMET items must not be used for military applications or in the development of weapons of mass destruction.
3. Post-Reporting Requirements:
   • Exporters must submit post-shipment details of each re-export to the DGFT on a quarterly basis, including Bill of Entry, shipping bill details, and export license copy.
4. Documentation Requirements:
   • Proof of import, contract agreements, and an undertaking from the exporter detailing the SCOMET items, the repair agreement, and the export conditions are required for applying for GAER.
   • An Internal Compliance Programme (ICP) or Authorized Economic Operator (AEO) Certification is mandatory for certain cases (e.g., intra-company transfers or re-exports to vendors/OEMs).
5. Suspension/Revocation:
   • GAER may be suspended or revoked if the exporter fails to comply with reporting requirements, or if there are concerns regarding proliferation or national security.
6. Special Conditions:
   • GAER will not be issued for re-exports to countries/entities under UN sanctions or those associated with proliferation concerns.
   • The DGFT reserves the right to deny or recall GAER based on national security or foreign policy considerations.

Importance of the Amendment:

This amendment to Para 10.12(D) of the HBP 2023 is significant because it simplifies and streamlines the procedure for re-exporting SCOMET items that are repaired in India, particularly for related entities and authorized vendors. By introducing a one-time GAER authorization with quarterly post-reporting instead of requiring fresh approvals for each shipment, the process becomes more efficient and less bureaucratic. This change will likely help businesses in managing their international supply chains more effectively and reduce delays in re-exporting repaired items. Furthermore, it ensures compliance with national and international security regulations by providing oversight and monitoring through post-reporting.

Effect of the Public Notice:

• The revised provisions will reduce the administrative burden on exporters by allowing for multiple re-exports under a single GAER while maintaining strict control through post-reporting.
• It ensures that SCOMET items are used in compliance with India's foreign policy and security regulations, thus enhancing the protection of sensitive technologies.

This amendment reflects the Government of India's commitment to facilitating smoother trade procedures while safeguarding national and international security interests.