Paragraphs 10 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Two short paragraphs of Chapter 10 of the Foreign Trade Policy, 2023 deal with special cases of SCOMET items. Paragraph 10.06 says no export authorisation is needed to supply SCOMET items from the Domestic Tariff Area (DTA) to a Special Economic Zone (SEZ) or Export Oriented Unit (EOU), but the supply must be reported, and an authorisation is needed to send the items out of the country from there. Paragraph 10.07 says imported SCOMET goods cannot be exported, even from a customs bonded warehouse, without an authorisation.
Supply of SCOMET items from the DTA to an SEZ or EOU needs no export authorisation, but the supplier must report the supply to the Development Commissioner within one week (paragraph 10.06). Physical export out of the country from the SEZ or EOU does need an authorisation. Imported SCOMET goods cannot be exported, even from a customs bonded warehouse, without an authorisation unless specifically exempted (paragraph 10.07). The Handbook adds an annual report by 15th May (10.03) and a route for returning imported items to the same foreign entity or its OEM (10.14).
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 (section 5 of the FTDR Act), and Chapter 10 rests on Chapter IVA of the Act, explained in our article on sections 14A and 14B. For authorisation questions, see our restricted items import-export licence service.
Paragraph 10.06: supply from the DTA to an SEZ or EOU
The paragraph has three statements.
- "Export authorisation is not required for supply of SCOMET items from DTA to SEZ/EoU."
- "All supplies" of SCOMET items from the DTA to an SEZ or EOU "will be reported to the Development Commissioner (DC) of the respective SEZ/EoU by the supplier in the prescribed performa within one week of the supplies getting effected."
- Export authorisation "is, however, required if the SCOMET items are to be physically exported outside the country from SEZ/ EOU, i.e. to another country". The paragraph adds that Rule 26 of the SEZ Rules, 2006 "may be referred". This article does not explain that Rule.
The result is a two-stage structure. The first stage, supply into the zone or unit, is inside the country and needs a report. The second stage, export out of the country, is the point of control, and it needs an authorisation. The report in the first stage is made by the supplier. The reporting does not replace the authorisation for the second stage.
Paragraph 10.07: export of imported SCOMET items
"Imported goods covered under the SCOMET list are not permitted for export, even from the Customs bonded ware house, without an export authorization, unless specifically exempted." The paragraph does not distinguish between goods imported long ago and goods imported recently, and it does not say how an exemption is shown. The customs procedure for bonded warehouses is explained in our guide on customs bonded warehouse types and procedure. The SEZ side of customs procedures is covered in our article on SEZ customs procedures for import and export.
Procedure under the Handbook
Paragraph 10.03: supply from the DTA to an SEZ or EOU
Paragraph 10.03 of the Handbook repeats paragraph 10.06 of the Policy and adds the reporting detail.
| Item | What the Handbook says |
|---|---|
| No authorisation | No export authorisation is required for supply of SCOMET items from the DTA to an SEZ or EOU |
| Physical export | An export authorisation is required if the items are to be physically exported outside the country from the SEZ or EOU, to another country; Rule 26 of the SEZ Rules, 2006 is to be referred |
| Supplier's report | To the Development Commissioner of the respective SEZ or EOU, in the prescribed proforma (Annexure 1 to Appendix 3 to Schedule 2 of ITC(HS)), within one week of the supplies getting effected |
| Annual report | By the Development Commissioner to DGFT (Hqrs), in the prescribed proforma (Annexure 2 to Appendix 3), by 15th May of every financial year, for supplies from the DTA to the SEZ or EOU in the preceding financial year |
The annexures are named as the paragraph names them and are not described. The supplier's duty and the Development Commissioner's duty are separate: the supplier reports within a week; the Development Commissioner reports once a year to DGFT.
Paragraph 10.14: return of imported items to the same foreign entity or its OEM
Paragraph 10.14 of the Handbook is about imported SCOMET items that go back to the foreign entity from which they were imported or to its OEM (original equipment manufacturer), including agencies authorised by the OEM, for reasons such as obsolescence of technology of imported items, cancellation of order by the Indian buyer or end user, or items dead on arrival. It ties to the type of authorisation in paragraph 10.08(vii) of the Policy, explained in our article on paragraph 10.08. The Chairman of the IMWG considers the application if these conditions are met.
- (a) The export is only to the entity from which the items were imported or to the OEM (including agencies authorised by the OEM).
- (b) No details on "End Use" and no "End Use Certificate" are required.
- (c) No export authorisation is granted for destinations sanctioned by the United Nations Security Council, or countries or entities of high risk as assessed by the IMWG from time to time.
- (d) The application is accompanied by the documents in Appendix 10I, including proof of obsolescence or cancellation of order and an undertaking from the applicant firm. The Appendix is named only.
- (e) Re-export or return for these reasons is allowed under the conditions of import or contractual agreement.
Applications for export to the entity from which the item was originally imported, or to the OEM, are approved by the Chairman IMWG "without any consultation with IMWG members". For return to an entity other than the OEM, approval is granted by the Chairman after verification of the credentials of the foreign entity. All such authorisations are brought before the IMWG at its next meeting for confirmation of approval on an ex-post facto basis.
Paragraph 10.14 of the Handbook is the procedure behind the Policy's rule in paragraph 10.07 that imported SCOMET goods need an authorisation to leave: for a return to the supplier, the Handbook offers a shorter route than the full application.
An example
Vega Machines Private Limited, an invented manufacturer, supplies a SCOMET item from its factory in the DTA to an EOU unit nearby. No export authorisation is needed, but Vega reports the supply to the Development Commissioner in the prescribed proforma within one week. The EOU later wants to send the item abroad: that physical export needs an authorisation, under paragraph 10.06. Separately, Vega imported another SCOMET item that was dead on arrival and wants to return it to the foreign supplier. Under paragraph 10.14 of the Handbook it applies with the documents in Appendix 10I, and the Chairman of the IMWG can approve without consulting the members, if the conditions are met.
Need help with SCOMET supplies or returns?
Reports to the Development Commissioner and applications for the return of imported items have to be filed on time and in the right proforma. Our restricted items import-export licence team can prepare them with you.
Key takeaways
- Paragraph 10.06: no export authorisation for supply from the DTA to an SEZ or EOU; supplier reports to the Development Commissioner within one week.
- Export outside the country from the SEZ or EOU needs an authorisation.
- Paragraph 10.07: imported SCOMET goods cannot be exported, even from a customs bonded warehouse, without an authorisation unless specifically exempted.
- Handbook 10.03: annual report by the Development Commissioner to DGFT by 15th May.
- Handbook 10.14: return of imported items to the same foreign entity or its OEM, approved by the Chairman IMWG on stated conditions.
Read next
- Paragraph 10.08 of the Foreign Trade Policy, 2023: types and validity of SCOMET authorisations
- Paragraph 10.05 of the Foreign Trade Policy, 2023: catch-all controls on non-SCOMET items
- SEZ setup, benefits and compliance
- SCOMET export controls and the catch-all provision
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.