National Conference on Strategic Trade Controls (NCSTC) Highlights:
- January 31, 2024
- Posted by: OptimizeIAS Team
- Category: DPN Topics
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National Conference on Strategic Trade Controls (NCSTC) Highlights:
Subject: Economy
Section: External sector
Organizers:
DGFT (Directorate General of Foreign Trade), Ministry of Commerce & Industry, in collaboration with the Ministry of External Affairs and other government agencies, conducted the NCSTC.
Format and Participation:
- NCSTC was organized in a new format with larger international participation and the involvement of various Indian government organizations, industry stakeholders, academia, and research institutions.
- The conference took place at Vigyan Bhawan, New Delhi.
India’s Strategic Trade Control:
- India regulates the exports of dual-use (industrial and military) goods, software, and technologies under the SCOMET (Special Chemicals, Organisms, Materials, Equipment, and Technologies) list.
- SCOMET list is notified by DGFT under the Foreign Trade Policy.
Objectives:
- The conference aimed to emphasize the importance of effective strategic trade controls and showcase India’s legal and regulatory system.
- Focus on exchanging best practices, sharing information, and preventing the proliferation of Weapons of Mass Destruction (WMD) and their delivery systems.
Handbook Release:
- DGFT released a Handbook on India’s Strategic Trade Controls, providing clarity to the industry on SCOMET policy, application process, documentation requirements, FAQs, and authorization processes.
Foreign Trade Policy 2023:
- Recognized the critical role of India’s Strategic Trade Control system and streamlined policies for ease of understanding and compliance by the industry.
- Emphasizes India’s commitment to multilateral non-proliferation export control regimes and international conventions.
Foreign Trade Policy (FTP) 2023 Overview:
Introduction:
- Launched by the Ministry of Commerce and Industry.
- Effective from April 1, 2023.
Export Target:
- Sets a target of $2 trillion for exports of goods and services by 2030.
Aim of FTP 2023:
- Enhance competitiveness in global markets.
- Promote sustainable development.
- Make India a leader in key sectors.
- Leverage technology for export competitiveness.
Key Approach – 4 Pillars:
- Incentive to Remission.
- Export promotion through collaboration.
- Ease of doing business and reduction in transaction cost.
- Focus on Emerging Areas – E-Commerce, SCOMET policy.
Major Features:
- Process Re-Engineering and Automation:
- Focus on export promotion through automated IT systems.
- Simplifies access to export benefits, especially for MSMEs.
- Towns of Export Excellence:
- Designation of new towns for priority access to export promotion funds.
- Boosts handlooms, handicrafts, and carpets exports.
- Recognition of Exporters:
- Exporter firms recognized with ‘status’ based on performance.
- Promotes skilling and training for a skilled manpower pool.
- Promoting Export from Districts:
- Partnerships with State governments for Districts as Export Hubs (DEH).
- Accelerates grassroots trade ecosystem development.
- Streamlining SCOMET Policy:
- Emphasis on export control compliance for dual-use items.
- Enhances access to high-end goods and technologies.
- Facilitating E-Commerce Exports:
- Intent and roadmap for e-commerce hubs.
- Addresses payment reconciliation, bookkeeping, returns policy.
- EPCG Scheme Facilitation:
- Rationalization of the Export Promotion of Capital Goods (EPCG) Scheme.
- Addition of Green Technology products to reduce export obligations.
- Advance Authorization Scheme (AAS):
- Extended to the export of the Apparel and Clothing sector.
- Promotes domestic manufacturing in the textile sector.
- Merchanting Trade:
- Allows merchanting trade of restricted and prohibited items.
- Promotes financial centers as major merchanting hubs.
- Amnesty Scheme:
- One-time Amnesty Scheme for exporters unable to meet obligations.
- Caps interest payable at 100% of exempted duties.
Previous Trade Policy (FTP 2015-20):
- Merged schemes into Merchandise Export from India Scheme (MEIS).
- Incentives for Special Economic Zones and Status Holders.
- Introduced Quality Complaints and Trade Disputes resolution chapter.
- Mid-term review expanded MEIS and SEIS scope and extended validity of Duty Credit Scrips.
Export Control of Dual-Use Items –
Definition of Dual-Use Items:
- Products, technologies, materials, or equipment with both civilian and military applications.
- Primarily designed for civilian purposes but can be used for military or prohibited purposes.
Examples:
- Precursor chemicals like sarin gas.
- Components such as centrifuges.
Regulation in India:
- DGFT prepares a specialized SCOMET (speciality chemicals, organisms, materials, equipment, and technologies) list.
- Regulation under India’s Foreign Trade Policy.
Foreign Trade Policy Emphasis:
- Focus on expediting the SCOMET licensing process.
- Ensures trade of sensitive and dual-use goods in compliance with international regimes.
UNSCR 1540 (United Nations Security Council Resolution 1540):
Purpose:
- Adopted in 2004 by the United Nations Security Council.
- Aims to prevent the proliferation of weapons of mass destruction (WMDs) and their means of delivery.
Focus Areas:
- Requires all UN member states to implement and enforce measures to prevent the proliferation of WMDs.
- Emphasizes non-proliferation of nuclear, chemical, and biological weapons.
Key Features:
- Calls on states to establish and enforce effective measures to control the proliferation of WMDs.
- Encourages cooperation in areas of science, technology, and capacity-building.
Monitoring and Reporting:
- Establishes a committee to monitor and facilitate the implementation of the resolution.
- States are required to submit reports on their efforts to implement the resolution.