Applicability of scomet notifications on indian sw companies


Dear Learned Friends,

This has reference to the notification Nos. 38 (RE-2010)/2009-2014, dated March 31, 2011 {FT(D&R) Act, 1992}, Notification No. 27 Dated 7th September, 2007 & Notification No.122 Dated 19th August, 2009 issued by DGFT that has triggered concerns on its applicability to captive R&D software centres in India whose personnel have sought evaluation, risk and impact analysis of these notifications on SW companies in order not to breach Indian national export control regulation.


Please help me analyze any impact of the regulation on R&D exports / technology transfer defined under Hardware / Software / Equipment CPTE


Since these notifications are currently operational and effective, the steps for every Hardware, Technology, software in connection with products and / or equipment requires re-evaluation by software (SW) companies in general. This also seems to be the case for every information stored at servers located in India and forseen to be down loaded by its overseas holding/parent company employees. Hence, non-compliance of the notifications if applicable to the entire software industry is best avoided.


In order to enable me complete my research on this topic, I seek your valuable inputs on the following:


a) Mention of generic terms such as "Electronics, Computers, Information Technology including Information Security" in the notifications, which is universally applicable to all companies under IT sector/industry seems to imply applicability of these notifications across all software companies in India. Is this a correct assessment ?


b) If not, is there a mechanism through which companies can seek exemption from these notifications ?


c) Alternately, does the above notifications apply only to those companies that are actively engaged in developing weapons or weapons related technology ?


d) Is there a ready reckoner of Companies registered in India that are covered under these notifications ?


I have sought clarifications on this subject from my few known personal contacts and DGFT officials itself without success. Without any better alternative, I seek your early valuable response for which I will be immensely grateful.


Thanks and regards,


Attached File : 1034370161 scomet 31st march 11.docx downloaded 61 times



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