Internal Compliance Programme Draft for SCOMET Items – Inputs Invited.

In a key move towards enhancing national security and trade compliance, the Directorate General of Foreign Trade (DGFT) has issued a Trade Notice inviting feedback on the Draft Management System Requirements for Internal Compliance Programme (ICP) for dual-use (SCOMET) items. This step aligns with the growing global emphasis on responsible exports of sensitive goods and technologies.

Why Internal Compliance Programme (ICP) Matters.

An Internal Compliance Programme (ICP) is a structured framework of internal policies, controls, and procedures that companies put in place to ensure compliance with export control laws and regulations. ICPs are especially critical for businesses involved in the manufacture, trade, or export of dual-use goods—items that can be used for both civilian and military purposes.

With rising international obligations and domestic regulatory reforms, having an effective ICP is no longer optional—it is a mandatory requirement.

Legal Context: HBP 2023 and FTP 2023.

The requirement for ICP submission arises from the General Authorization Policies under Chapter 10 of the Handbook of Procedures (HBP) 2023. Exporters applying for authorizations under this chapter must submit:

• A signed and stamped ICP document (by the company’s compliance manager),
• An ICP Checklist confirming the presence of necessary controls and practices.

To standardize the ICP framework, the DGFT—in consultation with the Bureau of Indian Standards (BIS)—has drafted a comprehensive guideline that outlines Management System Requirements for ICP implementation.

Stakeholder Engagement under FTP 2023.

As per Para 1.07A of the Foreign Trade Policy (FTP) 2023, which mandates stakeholder consultation before policy amendments, DGFT has now opened the draft ICP document for public review and feedback.

This participatory approach ensures that the policy remains practical, transparent, and in sync with the operational realities of the industry.

Submit Your Feedback

DGFT has invited views, suggestions, and comments from all relevant stakeholders, including:

• Exporters of dual-use goods
• Industry associations
• Compliance experts and legal professionals
• Trade and manufacturing organizations

Deadline: Within 10 days from the issuance of the Trade Notice
Email ID: scometdgft@gov.in

What Should an Effective ICP Include?

While the draft details are in the annexure to the Trade Notice, a strong ICP generally includes:

• Appointment of a Compliance Manager
• Maintenance of accurate records of controlled transactions
• Procedures for screening customers and destinations
• Training programmes for employees
• Internal audit and corrective mechanisms
• Well-documented escalation and reporting structure

Conclusion

The issuance of the draft ICP guideline is a proactive step towards ensuring that India’s export ecosystem remains compliant, transparent, and globally competitive. Exporters dealing in dual-use goods should take this opportunity to shape the future of export control regulations by submitting informed feedback.

By institutionalizing Internal Compliance Programmes, Indian exporters not only demonstrate regulatory accountability but also gain credibility and trust in international markets.