DGFT Revises Framework for Stock & Sale Authorization Of SCOMET Items

The Directorate General of Foreign Trade (DGFT) has has amended Paragraph 10.10 of the Handbook of Procedures (HBP) 2023, introducing a revised and more expansive framework for the export authorization of SCOMET (Special Chemicals, Organisms, Materials, Equipment and Technologies) items under the “Stock and Sale” model.

The amendment, issued under the Foreign Trade Policy 2023, allows Indian exporters to export SCOMET items (excluding Category 0, Category 3A401, and technology transfers) to entities abroad, termed “Stockists,” who will subsequently transfer these items to ultimate end users.

Expanded Definition of ‘Stockist’

The updated policy broadens the scope of eligible stockist entities. A stockist can now be:

• A subsidiary or parent company abroad,
• An affiliate of the Indian exporter,
• An Indian or foreign Original Equipment Manufacturer (OEM),
• An Electronic Manufacturing Services (EMS) provider,
• Or a Contract Manufacturer (CM).

This inclusion allows greater flexibility and opens avenues for Indian exporters to collaborate with global supply chain partners.

Simplified Export and Re-export Process

Under the new rules:

• Exports from India to stockists require submission of detailed documentation, including proof of relationship, technical specifications, and end-user certificates.
• Transfers within the same country as the stockist are treated as “same country transfers” and need no additional authorization.
• Re-exports to pre-approved countries require only post-reporting.
• Transfers to non-approved countries must go through a fresh approval process.

Importantly, the DGFT has also established streamlined processes for repeat orders, allowing for faster clearances under the supervision of the IMWG Chairman without full committee consultation.

Mandatory Compliance and Reporting

To maintain authorization validity, exporters must:

• Submit an annual report on inventory and transactions by January 31 each year,
• Ensure all items are transferred to end-users within the validity of the authorization period,
• And renew their authorization as per Para 10.20 of the HBP if required.

Notification Details

Public Notice No. OL /2025-2026

Date: 06/05/2025

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