Dual use & SCOMET items: How Indian exporters can strengthen compliance

India’s export ecosystem is evolving in step with global security frameworks, particularly in the context of dual-use and sensitive goods. These are items—ranging from advanced machinery to chemicals and encrypted software—that can serve both civilian and military purposes. Their misuse poses national and global security threats, which is why robust pre-shipment compliance is not only a regulatory requirement but a strategic imperative for Indian exporters.

Dual-use goods are materials, equipment, or technology with both civilian and military applications—many of which could potentially contribute to weapons of mass destruction (WMD). Sensitive goods, similarly, have implications for national security, environmental safety, and strategic interests.

India governs the export of such goods through the SCOMET list (Special Chemicals, Organisms, Materials, Equipment, and Technologies), which aligns closely with international control regimes including the Wassenaar Arrangement, Missile Technology Control Regime (MTCR), and Australia Group.

India’s Legal Backbone for Export Controls

 Indian exporters operate under a strong regulatory framework that includes:

• The Weapons of Mass Destruction and their Delivery Systems Act, 2005
• Foreign Trade (Development and Regulation) Act, 1992
• Customs Act, 1962
• Sector-specific regulations such as the Atomic Energy Act and Chemical Weapons Convention Act

Recent 2024 SCOMET updates have streamlined processes, such as expanding Global Authorization for Intra-Company Transfers (GAICT) and simplifying procedures for certain IT security products—making compliance both efficient and transparent.

Table 1: Key Elements of Effective Pre-Shipment Compliance