India Eases Export Norms for Dual-Use Goods: DGFT

New Delhi, Jan 30 (PTI) The government is working to liberalise export norms for certain products, which have dual-use, like chemicals for companies with proven track records, a senior official said on Tuesday.

Director General of Foreign Trade (DGFT) Santosh Kumar Sarangi said that dual-use goods and technologies are sensitive, and if they go into the wrong hands of non-state actors, it can cause serious disruptions globally.

A small group of rebels in Yemen have disrupted the global trade as they are attacking foreign commercial ships with drones and missiles.

"We are working with the industry, with the ministry of external affairs, and with the customs to ensure that a whole lot of sectors are liberalised for those companies which have proven track record of responsible use and responsible exports," Sranagi said here at the 'National Conference on Strategic Trade Controls'.

It was organised by the DGFT and the external affairs ministry here.

Dual use implies the usage of these goods and technologies in military applications or its use in nuclear, chemical or biological weapons of mass destruction (WMD), along with their civilian or industrial applications.

These goods are categorised under the SCOMET list. Special Chemicals, Organisms, Materials, Equipment and Technologies (SCOMET) items require licensing for trade as they are under the strategic trade control regime of the world.

The day-long conference focussed on issues like showcasing India's export control system; preventing the proliferation of WMD and their delivery systems by strengthening the export control system, and facilitating dialogue between the government authorities and industry stakeholders.

Sarangi also said that there is a need to develop an internal system which makes responsible use of high-end technologies or correct usage of SCOMET items by complying with the guidelines.

He added that the industry has helped the government in getting the processes streamlined and simplified for the trade of these goods.

Over the years, India has liberalised general authorisations for drones, repeat order for stock and sale policy, global authorisations for intra-company transfer and general authorisation for the export of chemicals.

Speaking at the event, Commerce Secretary Sunil Barthwal said that trade and commerce have been disrupted due to various issues which have cropped up along the Suez Canal route due to misuse of high-end goods and technologies.

Barthwal said that technologies like AI (artificial intelligence) can be used for the betterment of mankind if it is used properly, but if they get into the wrong hands, they can also bring devastation.

"We have seen how drones which can be used in agriculture for improving productivity can be used for war kind of purposes," he said, adding, "India is working on how we can bring out a policy which can address the issues which may crop up because of the use of AI."

The secretary said that a balancing approach is required for trade in these SCOMET items.

There is always an apprehension that these technologies should not get into the wrong hands and therefore at national and international levels, there are policies, frameworks and institutions, which look into the issues.

"We want free trade to grow but we also want to ensure that free trade should not become an instrument of mass destruction or terrorism," Barthwal said.

Joint Secretary in the External Affairs Ministry Muanpuii Saiawai said that exports of dual-use goods and technology could play a key role in increasing the country's exports.

However, she added that export control of these goods and technology is a challenging area to implement in the context of technology transfers in view of its intangible nature.

During the thematic sessions of the conference, the government officials provided detailed presentations and highlighted various aspects of India's Strategic Trade Control system, including the legal and regulatory framework, the steps taken to streamline the SCOMET policy and licensing processes, the enforcement mechanism and supply chain compliance programmes related to the export of dual-use goods and technologies.

A handbook on India's Strategic Trade Controls prepared by the DGFT was also released.

It outlines various aspects related to India's SCOMET policy, application process, documentary requirements, FAQs and the process for obtaining the authorisation for all categories of such goods.

The Foreign Trade Policy 2023 recognised the critical role of the control system and streamlined the policy and procedures related to SCOMET in one place for ease of understanding and compliance by the industry.

The focus is on streamlining policies to facilitate the export of dual-use, high-end goods and technologies while ensuring regulatory compliance and our security considerations.