Government notifies SOP for voluntary disclosure of SCOMET export violations

New Delhi: The government has issued guidelines for voluntary disclosure of non-compliance or violations in exports of SCOMET items, according to a notice.

Special chemicals, organisms, materials, equipment and technologies (SCOMET) items are dual-use goods, which are used for both civilian and non-civilian purposes.

"Standard operating procedure (SOP)/guidelines for voluntary disclosure of non-compliance/violations related to export of SCOMET items and SCOMET regulations is hereby notified," the Directorate General of Foreign Trade (DGFT) has said in a public notice.

The types of violations included exports of these goods without prior authorisation or failure to comply with reporting requirements.

It said the disclosure cases would be placed for an inter-ministerial working group in the directorate to consider the applications.

As per the guidelines, this group would consider each case on its merit.

The DGFT said that there may be occasions where responsible exporters, did not comply with the export control provisions of the Foreign Trade (Development and Regulation) Act, the Weapons of Mass Destruction and their Delivery Systems (Prohibition of Unlawful Activities) Act, and the Customs Act.

It encourages voluntary disclosures of failure to comply with the export control provisions and supports raising awareness among the exporters to avoid any non-compliance incidents.

As per the norms, a firm has to notify the DGFT immediately after a violation is discovered and confirmed internally. The exporters would have to submit all the details of such violations to the directorate.

After considering the disclosures, the working group would make recommendations to the DGFT either to inform the exporters that no further action is warranted; or to issue a show cause notice; or to issue an adjudication order on submission of an adverse report, the notice added.

Last year in April, the US slapped sanctions on over a dozen companies, individuals and vessels, including three from India, for facilitating illicit trade and UAV transfers on behalf of the Iranian military.

The US Department of Treasury has said that these companies, individuals and vessels have played a central role in facilitating and financing the clandestine sale of Iranian unmanned aerial vehicles (UAVs) to Russia's war in Ukraine.