Law on dual-use technology likely

Export, import rules to be changed

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The official said a final view on who would pilot the legislation would be taken soon, but added it was likely to be the external affairs ministry or the home ministry.

The export of dual-use technology items, at present, is restricted to items mentioned in the SCOMET (special chemicals, organisms, materials, equipment and technologies) list.

The SCOMET list includes nuclear materials, toxic chemicals, micro-organisms, fungi, parasites, viruses, aerospace materials, equipment and related technologies.

An exporter has to apply for a licence from the government, and obtain a certificate from the end-user, specifying the purpose for which the item will be used.

In certain cases, the Centre also seeks a certificate counter-signed by the government of the importing country, stating that the item is for peaceful purposes only.

As an added precaution, before granting further licence to an exporter, a bill of entry in respect of the last licence is sought to ascertain that the item entered the intended country.

The commerce and industry ministry is planning to enhance the scope of the FTDR Act to include the export of "dual-use technology". The Act in its present form is limited to dual-use goods or items only.

The ministry also proposes to substitute the FTDR Act with a new Bill which will bring services within its ambit, and allow special safeguard measures, including reimposition of quantitative restrictions in case of a surge in imports of a product. Officials said the Bill would not be tabled in the ongoing Budget session of Parliament.

According to officials, introduction of the new Bill to replace the FTDR Act has been delayed as Commerce and Industry Minister Kamal Nath is keen to discuss the aspects of the new Bill with the recently constituted board of trade headed by Kumaramangalam Birla.

The FTDR Amendment Bill, introduced in April 2001, had been referred to a related standing committee. The report of the committee was later considered by a committee of secretaries in August 2004. The matter was also referred to the Planning Commission for consideration.

Moving ahead

• The items will be taken out of the purview of the Foreign Trade Development and Regulation Act
• It is likely that the legislation would be formulated by the external affairs ministry or the home ministry
• The export of dual-use technology items, at present, is restricted to items mentioned in the special chemicals, organisms, materials, equipment and technologies list