Programme for cashing new business opportunities
The Director General of Foreign Trade, Alok Vardhan Chaturvedi, has 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 in New Delhi on 18 April 2018, 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. fii-news.com
