Export norms eased for specific defence items to certain countries through OGEL

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Published: October 25, 2019 5:00 PM

For getting the licences, it is mandatory for the applicant to have Import-Export certificate and to submit the quarterly & end of the year reports on all the transactions done under OGELs to DPP for examination and post-export verification said an MoD statement.

Export norm, specific defence item, OGEL, UAV, defence news, Open General Export Licences, defence newsComplete aircraft or complete unmanned aerial vehicles (UAVs) and any components specially designed or modified for UAVs are excluded under this licence.

In an effort to boost to defence exports and ease of doing business, the defence minister Rajnath Singh on Thursday approved the issuance of two Open General Export Licences (OGELs) for export of certain parts & components and intra-company transfer of technology to select countries.

According to a Ministry of Defence (MoD) statement, the OGEL is a one-time export licence and this will be granted to a company for a specific period (two years initially).

Following demands made by the exporters, the MoD, as well as all stakeholders, had extensive rounds of consultations before a decision was taken to formulate OGEL before taking it to the defence minister for approval. “This application for grant of OGEL will be considered by the Department of Defence Production (DPP) on a case-to-case basis..”

For getting the licences, it is mandatory for the applicant to have Import-Export certificate and to submit the quarterly & end of the year reports on all the transactions done under OGELs to DPP for examination and post-export verification said an MoD statement.

While there will be no exports to `Special Economic Zone’, countries, where items are allowed under the OGELs, include Belgium, France, Germany, Japan, South Africa, Spain, Sweden, UK, the US, Canada, Italy, Poland and Mexico.

Items allowed to be exported

Components of ammunition & fuse setting device without energetic and explosive material; firing control & related alerting and warning equipment & related system; and body protective items. Complete aircraft or complete unmanned aerial vehicles (UAVs) and any components specially designed or modified for UAVs are excluded under this licence.

Also, the Transfer of Technology to the countries is subject to the condition that the export is an intra-company transfer from an Indian subsidiary (applicant exporter) to its foreign parent company and/or to subsidiaries of the foreign parent company.

There has been sevenfold growth over the last two years and the defence exports have touched Rs 10,500 crore in 2018-19. According to the MoD this has been possible due to the reforms in the SOPs (Standard Operating Procedures) and introducing a portal for online clearance of applications. The processing time has been brought down significantly.

However, industry experts have projected an increase of almost threefold by 2024, adding, “it is achievable as the Indian private sector is now more active and is participating in various defence projects.”

An exporter can find details of the licences on defenceexim.gov.in website.

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