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Implement Internal Compliance Programmes on export control: DGFT The move will help to cash in on new business opportunities
Apr 18, 2018
NEW
DELHI, 18 April 2018: The Director General of Foreign Trade, Mr. Alok Vardhan
Chaturvedi, today called upon industry to adopt and
implement internal compliance programmes (ICP) on export control as it scouts
for new business opportunities that have opened up following India���s entry into
new multilateral export control regimes.
While
inaugurating FICCI's 2nd National Conference on Export
Control and launching FICCI's ICP module for
Indian industry, Mr. Chaturvedi said that while India's accession to global
export control agreements has given rise to opportunities for industry, it
cannot lose sight of its onerous responsibility in ensuring a safe and secure
world.
"Implementation
of ICP by industry is an example of a best practice in discharging its
responsibility", he said, adding that the ICP module should be used by industry
as a template for creating its own ICP depending upon whether a company is a
large systems integrator or an SME. He suggested that an institutional
structure should be evolved by industry with an active 'To Do' list that should
be monitored regularly.
The
recently released draft Defence Production Policy envisages an export market of
US$ 50 billion by 2032. Industry feels that to achieve this target, the
Government of India needs to handhold and expedite the licensing process.
FICCI
believes that once industry voluntarily puts in place checks and balances by
adopting ICP, it could ask the government for any exemption or bulk licenses
which the government would be in a better position to consider.
The
FICCI Export Control Compliance Manual 2018, which has templates for
large, medium and small industries as per their needs, is an attempt to
combine best practices in internal compliance policies and procedures to
safeguard organisations from exporting unauthorized items and consequently
damaging the reputation of their firms and of the country, in addition to
facing export penalties. Companies looking to enter these strategic sectors can
benefit from the growing goodwill accrued to India must align themselves to the
rules laid down by the Government of India under the guidelines for SCOMET
(Special Chemicals, Organisms, Materials, Equipment &
Technology) items for the export of dual-use commodities, software, and
technology.
The
ICP guides an organisation in establishing and maintaining trade compliance and
further helps in planning and maximising international trade. It includes
steps, in varying capacities, for not only finished products but also for
licences, software and counter parties, as it is in these matters that most
violations occur.
The
conference was also addressed by Mr. Alexander Lopes, Office of
Non-Proliferation and Treaty Compliance, BIS, US Department of Commerce; Dr.
Pankaj Sharma, Joint Secretary, Ministry of External Affairs; Mr. Dilip Chenoy,
Secretary General, FICCI; Mr. Vaibhav Gupta, Director, MKU Ltd.; Cmde Mukesh
Bhargava (Retd.), Member of Board, L&T Defence and Vice Chairman, L&T
and Mr. Ashok Kanodia, Chairman, Precision Electronics Ltd.
The conference deliberated on topics such as 'India's Membership to Multilateral Export Control Regimes & Implication on Indian Industry', 'Best Practices in Internal Compliance - Importance of ICPs to Stem Export Control Violations','Role of Export Control in Creating Secure Supply Chains' and 'Technology Transfer and Export of Intangibles'.