Press Note 1 (2019) - FEMA - Press Note 1 (2019)

Government of India Ministry of Commerce Industry Department of Industrial Policy and Promotion (DIPP) Press Note No. 1 (2019 Series) 1. A. LIST OF DEFENCE ITEMS REQUIRING INDUSTRIAL LICENCE UNDER INDUSTRIES (DEVELOPMENT AND REGULATION) ACT, 1951 The list of Defence items as at Annexure-I, finalized by Department of Defence Production, Ministry of Defence, will require licence for manufacturing under Industries (Development and Regulation-IDR) Act, 1951. B. LIST OF ITEMS REQUIRING LICENCE FOR MANUFACTURING AND/OR PROOF TESTING OF ARMS AND AMMUNITIONS IN FORM-VII FROM DIPP AS PER POWERS DELEGATED TO SECRETARY, DIPP UNDER ARMS ACT, 1959 The list of arms and ammunitions as at Annexure-II, notified by MHA vide Notification No. S.O. 6203 (E) dated 14th December 2018 under Arms Act, 1959, as amended by MHA from time to time, will require licence for manufacturing and/or proof testing under Arms Act, 1959. 2. This is issued in supersession of Press Note No. 3(2014 Series) dated 26th June, 2014 of DIPP. (Ravinder) Joint Secretary to the Govt. of India No. 7(3)/2009-IP. VOL. IV, DATED January 01, 2019 ANNEXURE-I Defence Products List for which Ministry of Commerce Industry, Department of Industrial Policy and Promotion (DIPP) is the Licensing Authority under I(D R) Act, 1951 Sl.No . Category Defence items included (1) (2) (3) ( i ) Defence aircraft. 1. Military aircrafts including helicopters, lighter-than-air vehicle 2. Unmanned Aerial Vehicles (UAVs), Remotely Piloted Vehicles, autonomous programmable vehicles, unmanned lighter than air vehicle fitted with weapon, sensor and other payloads, defence communication frequency for military applications (including all variety of manned and unmanned airborne vehicles, target systems, loitering missiles, drones, balloons, blimps, aerostat, parachutes, paragliders, and their launchers, specially designed for military application). Note 1: Sl. No. 2 does not include UAV or Unmanned airship designed for controlled flight within or out of the direct natural vision of the operator and displaying any of the following characteristics. Maximum Endurance less than 01 hour provided they are not designed to take-off, stable controlled flight in wind gust equal to or exceeding 46.3 km/h (25 Knots). Note 2: Only Blimps, Balloons and aerostat relying on hydrogen or helium for their lift of ground are cover under this category. ( ii ) Warships of all kinds. 1. Vessels of war (surface or underwater), 2. Other surface vessels (Fitted with automatic weapons having a caliber of 12.7 mm or higher, Chemical Biological Radiological and Nuclear protection, active weapon countermeasure systems), 3. Special naval equipment, 4. Hull penetrators and connectors specially designed for military use; 5. Air Independent Propulsion systems (nuclear or conventional) designed for submarines. Note 1: 'Fitted' refers to at Sl. No. 2 above weapon mounts or structural strengthening for purpose of installing weapons, Note 2: For Sl. No. 2 Active Counter measure systems includes hull and superstructure designed to reduce radar cross section, mounted with thermal signature reduction devices, excluding those designed to increase overall power plant efficiency in reduce environment impact and excluding degaussing systems for reducing magnetic signature of whole vessel) Note 3: For Sl. No. 1 includes 'Unmanned Surface and Sub-surface vehicles designed for military use' ( iii ) Allied items of Defence equipment. 1. Electronic equipments specially designed for military use as follows; i. Electronic Equipment used for electronic counter measure (ECM) and electronic counter countermeasure (ECCM), surveillance, intelligence, Command and Control systems, ii. Jamming equipment, iii. Data processing, storage and transmission security equipment, identification and authentication equipment (including identification Friend or Foe and non-Cooperative Target Return Identification systems), iv. guidance and navigation equipment, v. Troposcatter-radio communication equipment and vi. Military Information Security assurance systems and equipment (like cryptographic devices including military Cryptographic key management and Cryptanalytic systems), vii. Communication equipment, frequency modules and secrecy devices. 2. Armoured or protective equipment as follows:- (a) Constructions of metallic or non-metallic materials, or combinations thereof, specially designed to provide ballistic protection for military systems (b) Body armour or protective garments of level III (NIJ 0101.06, July 2008 or national equivalent and above). (Note: Sl. No. (b) includes explosive reactive armour, and modified or equipped with any type of accessories; does not apply to equipment or helmet for user's own personal safety and docs not apply to conventional steel helmets) 3. 'Specialised equipment for military training' or simulators specially designed for training in the use of any firearm or weapon. 4. Imaging or countermeasure equipment, as follows, specially designed for military use:- (a) Recorders and image processing equipment; (b) Image intensifier equipment including interactive environment systems; (c) Infrared or thermal imaging equipment; (d) Imaging radar sensor equipment; (e) Countermeasure or counter-countermeasure equipment. ANNEXURE-II List of items requiring Licence for Manufacturing and/or Proof testing of Arms and Ammunitions in Form-VII from DIPP as per powers delegated to Secretary, DIPP under Arms Act, 1959 Sl. No . Category of arms and ammunition Defence items included (1) (2) (3) ( i ) Tanks and other armoured fighting vehicles. (a) Battle tanks, Armoured personnel Carriers (APC) and Infantry Combat Vehicles (ICV) (b) Military vehicles fitted with mountings for arms or equipment for mine laying or the launching of munitions (c) Other ground vehicles manufactured or fitted with materials or components to provide Ballistic protection to level III (NIJ 0108.01, September 1985, or comparable national standard or above) with mountings for arms or equipment for mine laying specially designed for military use. Note 1.- For Sl. No. (b) Includes vehicles fitted with mounting for arms or equipment for mine-laying or for launching of bombs, torpedoes, rockets. missiles, other explosive charges and related equipment and accessories. Note 2.- For Sl. No. (c) Transmission to provide drive to both front and rear wheels simultaneously, Gross Vehicle Weight Rating greater than 4500 kg. ( ii ) Arms and ammunitions and allied items of defence equipment; other than small arms of caliber 12.7 mm and above as defined under clause (51) of sub-rule (1) of rule 2 of the Arms Rules, 2016. (i) Multi barrel rocket, machine guns, guns, rocket, cannon and missile systems -used on land, ships and shore based and airborne applications. (ii) Howitzers, mortars, anti-tank weapons, projectile launchers, military flame throwers, rifles, recoilless rifles. (iii) Ammunition and fuze setting devices, as follows:- (a) safing and arming devices, fuzes, sensors and initiation devices; (b) submunitions including bomblets, minelets and terminally guided projectiles. (iv) Bombs, torpedoes, grenades, smoke canisters rockets. mines, missiles, depth charges, demolition- charges, demolition-devices, demolition kits, aircraft missile protection systems, pyrotechnic devices, cartridges and simulators (i.e. equipment simulating the characteristics of any of these items specially designed for military use). (v) Energetic materials and related substances includes all explosives like primers, boosters, initiators, igniters, detonators, smoke bomb, colour signals, propellants and pyrotechnics, oxidizers, binders, plasticisers, monomers, additive coupling agents, precursors and other related ammunition. (vi) High velocity kinetic energy weapon systems. (vii) Directed Energy Weapon systems, related or countermeasure equipment as follows:- (i) Multi barrel rocket, machine guns, guns, rocket, cannon and missile systems -used on land, ships and shore based and airborne applications. (ii) Howitzers, mortars, anti-tank weapons, projectile launchers, military flame throwers, rifles, recoilless rifles. (iii) Ammunition and fuze setting devices, as follows:- (a) safing and arming devices, fuzes, sensors and initiation devices; (b) submunitions including bomblets, minelets and terminally guided projectiles. (iv) Bombs, torpedoes, grenades, smoke canisters , rockets, mines, missiles, depth charges, demolition- charges, demolition-devices, demolition kits, aircraft missile protection systems, pyrotechnic devices, cartridges and simulators (i.e. equipment simulating the characteristics of any of these items specially designed for military use). (v) Energetic materials and related substances includes all explosives like primers, boosters, initiators, igniters, detonators, smoke bomb, colour signals, propellants and pyrotechnics, oxidizers, binders, plasticisers, monomers, additive coupling agents, precursors and other related ammunition. (vi) High velocity kinetic energy weapon systems. (vii) Directed Energy Weapon systems, related or countermeasure equipment as follows:- a) laser systems specially designed for, destruction or effecting mission, abort of a target including laser systems with specialized elements and derivatives thereof; (b) particle beam systems (not including wave-length less than 1150nm) capable of destruction or effecting mission-abort of a target; (c) high power Radio-Frequency systems capable of destruction or effecting mission-abort , of target; (d) equipment specially designed for the detection or identification of, or defence against, system at (a) and (c) above. Note 1.- Sl. Nos. (i) and (ii) does not apply to weapons for slaughter of animals, seismic testing ; projectile launchers of range less than 500m. Note 2.- Sl. No. (iii) does not apply to ammunition crimped without projectile, dummy ammunition (with pierced powder chamber) and cartridge designed for signaling, bird scaring.