The Directorate General of Foreign Trade (DGFT) has amended Para 10.12(D) of the Handbook of Procedures (HBP) 2023 to introduce a General Authorization for Export after Repair (GAER). This new framework allows Indian exporters to re-export imported SCOMET items to related entities and authorized vendors/OEMs after repair in India, under a one-time authorization with quarterly post-reporting instead of requiring fresh approvals for each shipment.

Key Points:

  1. Eligibility:
    • Applies to SCOMET items imported for repair in India under a contract/Master Service Agreement (MSA)/Electronic Manufacturer Service Agreement (EMS).p
    • Export permitted only to related entities (subsidiaries, foreign parent companies) or authorized vendors/OEMs.
  2. Authorization Process:
    • Exporters must obtain one-time General Authorization for Export after Repair (GAER) from DGFT.
    • Valid for one year, with post-reporting required on a quarterly basis.
    • First-time applicants must provide Bill of Entry for imported items.
  3. Re-export Conditions:
    • The itemโ€™s original specifications must remain unchanged after repair.
    • No value addition is permitted during repair.
    • The re-export must be to the same entity and location as per the original authorization.
  4. Documentation Required:
    • Import proof (Bill of Entry, Export Authorization from the foreign country, etc.).
    • Repair agreement between the Indian exporter and foreign entity/vendor.
    • Undertaking from the exporter confirming compliance with GAER conditions.
    • AEO Certification and Internal Compliance Programme (ICP) required for re-export to vendors/OEMs.
  5. Post-Reporting Requirements:
    • Exporters must submit shipment details (Bill of Entry, shipping bill, etc.) to DGFT on a quarterly basis.
    • Non-compliance may result in penalties or suspension of GAER.
  6. Restrictions:
    • GAER will not be issued for UNSC-sanctioned countries/entities or for military applications.
    • DGFT reserves the right to deny, suspend, or revoke GAER based on security or compliance concerns.

Effect of the Public Notice:

This amendment simplifies the export process for repaired SCOMET items, reducing procedural delays and eliminating the need for repeated approvals. Exporters can now undertake multiple re-exports under a single GAER authorization, ensuring greater ease of doing business while maintaining strict compliance measures.

Notification Reference: DGFT
Public Notice No.: 50/2024-2025
10/03/2025

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