Government Expands Global Authorisation for Intra-Company Transfer of Dual Use Goods to 41 Countries

The government has broadened the scope of global authorisation for intra-company transfers to include more dual-use goods, such as specific software and technology items, across 41 countries. These dual-use goods, which have both industrial and military applications, fall under the SCOMET category, encompassing special chemicals, organisms, materials, equipment, and technologies.

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In a recent public notice, the Directorate General of Foreign Trade (DGFT) announced that the Global Authorization for Intra-Company Transfer (GAICT) policy now covers additional items. This expansion aims to facilitate the transfer of SCOMET items to designated countries like Russia, the UK, and the US. The policy change is intended to streamline exports and re-exports of these goods.

Expanded List of Dual-Use Goods

The revised list includes source code for hybrid integrated systems, certain processing equipment, and technology essential for developing or producing gas turbine engine components or systems. Additionally, it covers counter IED equipment and related devices, towed acoustic hydrophone arrays, materials designed to absorb electromagnetic radiation or intrinsically conductive polymers, and specific laminates.

The DGFT has also updated a provision in the Handbook of Procedures 2023 to reflect these changes. This amendment is part of ongoing efforts to simplify the export process for dual-use goods under the SCOMET category. By expanding the list of items eligible for intra-company transfer, the government aims to support industries involved in both civilian and defence sectors.

This policy adjustment is expected to benefit companies operating in multiple countries by easing the transfer of critical technology and materials. It underscores India's commitment to facilitating international trade while ensuring compliance with global security standards.