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Paragraph 10.05 of the Foreign Trade Policy, 2023: catch-all controls on items outside the SCOMET list, with paragraphs 10.05 and 10.07 of the Handbook of Procedures

An item not covered by the SCOMET list may still be regulated under the Weapons of Mass Destruction and their Delivery Systems (Prohibition of Unlawful Activities) Act, 2005. The...

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Published
October 2, 2026
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Last updated: October 2026Verified against: Government sources

Paragraph 10.05 of the Foreign Trade Policy, 2023 reaches items that are not on the SCOMET list. If the exporter has been told in writing by DGFT, or knows or has reason to believe that the item carries a risk of use in or diversion to weapons of mass destruction, missile systems or military end use, the export can be denied or allowed only against a licence. Paragraphs 10.05 and 10.07 of the Handbook of Procedures give the procedure and a note on "military use".

This article is based on the chapter-wise text of the Foreign Trade Policy, 2023 published on the DGFT website, as consulted on 2 October 2026; the copy carries no "updated up to" date. The procedure is taken from Chapter 10 of the Handbook of Procedures, 2023 as published on the DGFT website (file of July 2026), consulted on 2 October 2026. Later Notifications, Public Notices and Trade Notices should be checked before acting. The Policy is made under section 5 of the Foreign Trade (Development and Regulation) Act, 1992; see our article on section 5 of the FTDR Act. Chapter 10 rests on Chapter IVA of that Act, and the catch-all power is explained in our article on sections 14C to 14E of the FTDR Act. If you think an export may fall under this paragraph, our restricted items import-export licence team can help you decide how to proceed.

What paragraph 10.05 of the Policy says

The heading is "Additional controls on Non-SCOMET items for dual use (Catch-all controls)". The paragraph has two sentences of substance.

First: export of items not in the SCOMET list "may also be regulated" under the 2005 Act. The word "also" matters: the catch-all is an addition to the list-based control of paragraph 10.02, not a replacement for it. This article names the 2005 Act as the paragraph does and explains no part of it, and it states no penalty from it.

Second: if the exporter has been notified in writing by DGFT, or "he knows or has reason to believe", that an item not covered in the SCOMET list "has a potential risk of use in or diversion to weapons of mass destruction (WMD) or in their missile system or military end use (including by terrorists and non-state actors)", the export of that item "may be denied or permitted subject to the grant of a license". The licence is dealt with under the procedure for SCOMET items in paragraphs 10.05 and 10.06 of the Handbook.

The three triggers

TriggerWhat the exporter must haveSource
NoticeA written notification from DGFTPolicy 10.05; Handbook 10.05
KnowledgeThe exporter knows of the riskPolicy 10.05; Handbook 10.05
Reason to believeThe exporter has reason to believe in the riskPolicy 10.05; Handbook 10.05

The first trigger is an outside act: DGFT writes to the exporter. The second and third turn on the exporter's own state of mind. "Reason to believe" is wider than knowledge, since it can arise from what the exporter has been told or from facts in front of it, even if it has not drawn the conclusion. The paragraph gives no list of red flags, no definition of reason to believe and no time within which the exporter must act. This article adds none.

Three kinds of risk

The risk named is of use in or diversion to:

  • weapons of mass destruction;
  • their missile systems; or
  • military end use, including by terrorists and non-state actors.

The paragraph says "use in or diversion to", so it covers both the original end use of the item and its being passed on to some other user.

Procedure under the Handbook

Paragraph 10.05

The Handbook repeats the triggers, with a change of verb. If the exporter has been notified in writing by DGFT or knows or has reason to believe that a non-listed item has the risk described, "he shall apply for a SCOMET authorisation". The export "may be denied or permitted as per the procedure provided for SCOMET items in Paragraph 10.06 of HBP". That is the Inter Ministerial Working Group procedure explained in our article on paragraphs 10.04 and 10.09.

The Handbook adds a Note: "Military use" shall mean incorporation into items listed under SCOMET Category 6 or the use, development or production of military items listed in that category. An exporter who is going to export or transfer items regulated under the catch-all controls "is required to obtain a SCOMET license from DGFT". The IMWG examines such applications, filed in the prescribed proforma ANF 10A with the relevant documents, in terms of paragraph 10.06 of the Handbook.

The words "shall apply" move the catch-all from an observation to a duty. An exporter who has the knowledge or reason to believe cannot ship the item first and ask afterwards.

Paragraph 10.07

Paragraph 10.07 of the Handbook is headed with an applicability of the Weapons of Mass Destruction Act. It repeats that export of items not on the SCOMET list may also be regulated under the 2005 Act. It adds no procedure.

What the paragraph does not say

  • It does not say which items are caught; that depends on the facts known to the exporter and on any notice from DGFT.
  • It does not say that every export of a non-listed item needs a licence. Without a trigger, the catch-all does not apply on the words of the paragraph.
  • It does not state a penalty. The consequences of breach come from the Act and the 2005 Act, which are not reproduced here; the offences and the licence-suspension powers of the FTDR Act are in our article on sections 14C to 14E.
  • It gives no view on any particular product or buyer.

An example

Nila Tools Private Limited, an invented exporter of general machine tools that are not on the SCOMET list, receives an enquiry from a buyer whose stated end use is unclear and whose delivery address is a forwarding agent. The exporter has no letter from DGFT. If the exporter has reason to believe that the tools may be diverted to a missile programme or military end use, the Handbook says it shall apply for a SCOMET authorisation, and the IMWG will decide whether to deny or permit the export. If it ships without applying, it has acted against paragraph 10.05 of the Handbook. If the exporter has no such reason, the paragraph does not require an application. The exporter should still record how it assessed the buyer, since the test is its knowledge and reason to believe.

Need help with a catch-all question?

Where the end use or the buyer raises a doubt, a short written assessment and a proper application protect the exporter. Our restricted items import-export licence team can review your facts and prepare the application.

Key takeaways

  • Paragraph 10.05 applies to items not in the SCOMET list; it is an addition to the list-based control.
  • Three triggers: written notice from DGFT, knowledge, or reason to believe.
  • The risk is of use in or diversion to WMD, a missile system or military end use.
  • The export may be denied or permitted subject to a licence; the Handbook says the exporter shall apply for a SCOMET authorisation.
  • Military use in the Handbook note means incorporation into Category 6 items or use, development or production of military items in that category.

Read next

Disclaimer: Based on the chapter-wise text of the Foreign Trade Policy, 2023 and the Handbook of Procedures, 2023 published on the DGFT website, and on the later Notifications named in this article, as consulted on 2 October 2026. The copies carry no "updated up to" date. Notifications, Public Notices, Trade Notices, the ITC(HS) schedules, Appendices and forms change often; the current text on the DGFT website should be checked before acting. This article is general information, not legal advice; check the official text before acting.

Quick recapKey facts & short answers

Key Facts About Paragraph 10

  • Applies in: All states across India, under the relevant central law.
  • Mode: Mostly online via the official government portal.
  • Typical timeline: Ranges from a few days to a few weeks depending on the case.
  • Non-compliance: May attract penalties, interest or late fees.
  • Expert help: TaxClue completes the entire process end to end for you.

Does the catch-all apply to every item not on the SCOMET list?

No. Paragraph 10.05 applies where the exporter is notified in writing by DGFT or knows or has reason to believe in the risk it describes.

Who decides whether the export is allowed?

The Handbook sends the application through the IMWG procedure in paragraph 10.06, and the export may be denied or permitted.

When in doubt, read the provision itself rather than a summary of it — including this one.

— TaxClue Compliance Desk

Paragraph 10: a key compliance topic in Indian tax and corporate law that businesses and individuals must understand to remain compliant.

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Disclaimer: This article is for general informational purposes only and does not constitute professional tax, legal or financial advice. Laws, rates and due dates change and can vary by individual case — always verify with the relevant government source (e.g. mca.gov.in, incometax.gov.in) or consult a qualified professional before acting. TaxClue accepts no liability for decisions taken based on this content.

People also ask

Questions, answered

Short, direct answers to the 6 questions readers ask most on this topic.

No. Paragraph 10.05 applies where the exporter is notified in writing by DGFT or knows or has reason to believe in the risk it describes.

The Handbook sends the application through the IMWG procedure in paragraph 10.06, and the export may be denied or permitted.

The Handbook names ANF 10A for applications under the catch-all controls.

Incorporation into items listed under SCOMET Category 6, or use, development or production of military items listed in that category.

No. The paragraph names the 2005 Act but states no penalty, and this article states none.

Paragraph 10.07 repeats that export of items not on the SCOMET list may also be regulated under that Act.