The Director General of Foreign Trade (DGFT) has notified the procedure for general authorization for an export after repair in India (GAER).
However, the export of imported Special Chemicals, Organisms, Materials, Equipment, and Technologies (SCOMET) items to the same entity abroad after repair in India will be allowed on the basis of a one-time GAER subject to post-reporting on a quarterly basis issued by DGFT and the same is subject to various conditions.
Thus, the SCOMET items were imported to a authorized/designated repair facility in India for the purpose of repair under a contract agreement/Master Service agreement (MSA) and the items are imported under a contract agreement between the Indian exporter, the entities of the repair facility (if it is different from that of the exporter), and the entity abroad defining a Statement of Work (SOW) or Scope of Work, including conditions for undertaking the repair in India.
To the same entity the items are to be imported and the location abroad from which they have been imported. The exporter is required to register and to obtain general authorization for export after repair only once during the validity period. Consequently, re-export/export is subject to post-reporting.
It had been required by the exporter to provide a Bill of Entry for the imported item while applying for GAER for the first shipment.
Further, a general authorization for export after the repair is valid for one year from the date of issuance, subject to subsequent post-reporting (s) within 30 days of the date of such export.
The original specifications/characteristics of the SCOMET item(s) have not changed after repair, and no value addition has occurred during the repair work. No export authorisation would be granted when the initial export authorisation has been suspended, revoked or modified by the country of import.
A proof is required of import of the item and proof of obligation for the repair of defective or damaged items.
It had been issued by GAER of repaired imported SCOMET items is valid for one year from the date of issue and is subject to subsequent post-reporting (s) within 30 days of such export. Therefore, GAER cannot be re-validated in terms of Paragraph 2.80 of HBP of FTP 2015-20.
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