The Directorate General of Foreign Trade (DGFT), Ministry of Commerce and Industry, has announced significant amendments to Chapter 10 of the Handbook of Procedures (HBP), 2023, aimed at simplifying export authorisation procedures, reducing compliance requirements and promoting ease of doing business for eligible exporters dealing in Special Chemicals, Organisms, Materials, Equipment and Technologies (SCOMET) items.
The amendments have been notified through Public Notice No. 36/2026-27 dated November 02, 2026, issued in exercise of powers conferred under Paragraphs 1.03 and 2.04 of the Foreign Trade Policy (FTP), 2023, and have come into force with immediate effect.
SCOMET Export Facilitation Extended to 4-Star and 5-Star Status Holders
In a major policy relaxation, the DGFT has extended the existing SCOMET authorisation-based facilitation, previously linked to Authorised Economic Operator (AEO) certification, to eligible exporters holding valid 4-Star or 5-Star Status Holder Certificates, subject to fulfilment of other prescribed conditions.
The expanded eligibility covers four important export authorisation procedures under Chapter 10 of HBP, 2023:
- Stock and Sale: Under Paragraph 10.10(c)(vii), eligible exporters may furnish a valid 4-Star/5-Star Status Holder Certificate as an alternative to the AEO Certificate in the case of OEM/EMS/CM.
- General Authorisation for Export after Repair in India (GAER): Under Paragraphs 10.12(D)(A)(m) and 10.12(D)(B)(5), a valid 4-Star/5-Star Status Holder Certificate is recognised as an alternative to AEO certification, while compliance with the Internal Compliance Programme (ICP) continues to remain mandatory for re-export to vendors/OEMs.
- General Authorisation for Export of Telecommunication (GAET): Under Paragraph 10.15(I)(1)(b)(vi), a valid 4-Star/5-Star Status Holder Certificate has been permitted as an alternative to the AEO T2 Certification of CBIC.
- General Authorisation for Export of Information Security Items (GAEIS): Under Paragraph 10.15(II)(1)(b)(vi), exporters holding valid 4-Star/5-Star Status Holder Certificates are similarly eligible to meet the relevant certification requirement in place of AEO T2 Certification.
This amendment is expected to widen access to existing export facilitation measures for eligible recognised exporters without requiring them to obtain AEO certification solely to satisfy the amended certificate requirements.
GAER Validity Extended from One Year to Three Years
Another significant amendment relates to the validity period of the General Authorisation for Export after Repair in India (GAER).
Through amendments to Paragraph 10.12(D)(A)(c) and Serial No. 4 of the Table under Paragraph 10.17 of HBP, 2023, the DGFT has extended the validity of GAER from the existing one year to three years from the date of issuance.
The extended validity applies to GAER authorisations issued for the export of imported SCOMET items after repair in India, subject to compliance with prescribed reporting requirements and other applicable conditions.
The measure is aimed at providing greater operational flexibility to exporters engaged in repair and re-export activities by reducing the frequency of authorisation renewals.
Quarterly Post-Shipment Reporting Introduced under GAER
The DGFT has also rationalised the post-shipment reporting requirements applicable to GAER authorisations.
Under the earlier provisions, exporters were required to submit the prescribed post-export reports within 30 days from the date of each export.
Under the amended framework, exporters are required to submit post-shipment reports within 30 days from the end of each quarter, subject to the applicable conditions.
The revised quarterly reporting framework is expected to streamline compliance procedures and reduce repetitive reporting obligations for exporters undertaking multiple repair and re-export transactions.
Boost to Ease of Doing Business and India’s Repair and Re-Export Activities
The amendments represent an important step towards simplifying the regulatory framework governing SCOMET exports while retaining the prescribed compliance safeguards.
By recognising valid 4-Star and 5-Star Status Holder Certificates as alternatives to specified AEO certification requirements, the DGFT has expanded access to export authorisation facilitation for eligible exporters.
Further, the three-year validity of GAER authorisations and quarterly post-shipment reporting requirements are expected to improve business certainty, reduce procedural compliance and facilitate the export of imported SCOMET items after repair in India.
Effective Date and Legal Reference
The amendments have come into force with immediate effect from 2 November 2026, under DGFT Public Notice No. 36/2026-27 dated 2 November 2026, amending Chapter 10 of the Handbook of Procedures, 2023.
Key Takeaway: The DGFT’s latest amendments provide two major benefits to eligible SCOMET exporters: expanded authorisation-based facilitation for valid 4-Star and 5-Star Status Holders, and extension of GAER validity from one year to three years, along with a simplified quarterly post-shipment reporting framework. These measures are intended to promote ease of doing business and facilitate repair-related SCOMET exports from India.
The Public Notice can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2026/11/Public-Notice-No.-36-dated-02.11.2026-English.pdf
