DGFT Notification: New Sanction Compliance for Dual-Use SCOMET Exports

The Directorate General of Foreign Trade (DGFT) has intensified its oversight of SCOMET (Special Chemicals, Organisms, Materials, Equipment, and Technologies) items. Manufacturers and exporters of high-tech and dual-use goods must now adhere to updated verification procedures to ensure products do not reach entities under international sanctions. As per DGFT Notification No. 17/2023 regarding the SCOMET list, exporters are required to maintain a robust Internal Compliance Program (ICP). ## What this means for exporters Exporters must verify the 'End-User' and 'End-Use' more rigorously than before. Failure to do so can lead to debarment and heavy penalties under the Foreign Trade (Development and Regulation) Act. The focus is specifically on items that have potential applications in both civilian and military sectors. We recommend conducting a thorough audit of your export portfolio against the latest SCOMET categories to avoid unintended violations. This systematic approach not only ensures legal compliance but also maintains your status as a reliable global trade partner. Exporters should utilize the DGFT portal for 'SCOMET Authorization' applications, ensuring all supporting documents like the End-Use Certificate (EUC) are authenticated by the appropriate authorities in the destination country. This move aligns Indian export controls with global regimes such as the Wassenaar Arrangement.