SCOMET facilitation opens to 4-star and 5-star status holders; GAER now valid three years
TaxByKK · Compliance News · taxbykk.com2 Nov 2026
In short
DGFT has amended Chapter 10 of the Handbook of Procedures, 2023 so that exporters holding a valid 4-star or 5-star status holder certificate can use SCOMET authorisation-based facilitation that was earlier tied to AEO certification. This covers Stock and Sale, the General Authorisation for Export after Repair in India (GAER), and the general authorisations for telecommunication (GAET) and information security items (GAEIS). GAER is now valid for three years instead of one, with post-shipment reports due within 30 days from the end of each quarter. The change is effective immediately. In a separate notice of 3 November 2026, DGFT also changed how quality complaints and trade disputes are tracked.
- Authority
- Directorate General of Foreign Trade
- Public notice
- No. 37/2026-27 dated 2 November 2026 (and No. 38/2026-27 dated 3 November 2026)
- Type
- Public notice
- Effective from
- Immediately
- Amends
- Paras 10.10, 10.12, 10.15 and 10.17 of the Handbook of Procedures, 2023 (PN 37); para 8.04(iii) (PN 38)
- Law
- Paras 1.03 and 2.04 of the Foreign Trade Policy, 2023
What changed
| Item | Before | Now |
|---|---|---|
| Stock and Sale (para 10.10(c)(vii)), OEM/EMS/CM | Copy of AEO certificate | AEO certificate or valid 4-star/5-star status holder certificate |
| GAER re-export to vendors/OEMs (paras 10.12(D)(A)(m) and (B)(5)) | AEO certification with ICP compliance | AEO or valid 4-star/5-star status holder certificate, with ICP compliance |
| GAET and GAEIS (para 10.15) | AEO T2 certification of CBIC | AEO T2 or valid 4-star/5-star status holder certificate |
| GAER validity (para 10.12(D)(A)(e) and para 10.17 table) | One year; post-reporting within 30 days of each export | Three years; post-shipment reports within 30 days from the end of each quarter |
| Quality complaints and trade disputes (para 8.04(iii), PN 38) | Indian Missions take up the issue and update status online | Missions take up complaints filed by applicants or referred by FT Divisions; Missions and FT Divisions update action and status on the DGFT portal until disposal, visible to the complainant |
The notices do not say whether GAERs already issued for one year are extended automatically. All other conditions for each SCOMET route continue to apply.
Who it applies to
- Exporters of SCOMET items holding 4-star or 5-star status
- OEMs, EMS and contract manufacturers using Stock and Sale
- Firms re-exporting repaired SCOMET items
- Exporters and importers with quality complaints or trade disputes abroad
- Customs brokers, CAs and trade lawyers
What to do
- Status holders: check whether your 4-star or 5-star certificate is valid and use it in place of AEO for these SCOMET routes.
- GAER holders: move to quarterly post-shipment reports, due within 30 days from the end of each quarter.
- Ask DGFT whether an existing one-year GAER gets the three-year validity; the notice does not say.
- Track any quality complaint or trade dispute on the DGFT portal.
Reference
DGFT Public Notice No. 37/2026-27, 2 November 2026, Amendment to Chapter 10 of the Handbook of Procedures 2023 (SCOMET facilitation for 4-star and 5-star status holders; GAER validity); Public Notice No. 38/2026-27, 3 November 2026, Amendment to para 8.04(iii) (mechanism for resolving quality complaints and trade disputes).
Read the official PDF: DGFT Public Notice 37/2026-27 Read the official PDF: DGFT Public Notice 38/2026-27Written by TaxByKK from the official notification. Check the official text before you act on it.
Frequently asked questions
Can a 4-star or 5-star status holder use SCOMET general authorisations without AEO?
Yes, for Stock and Sale, GAER, GAET and GAEIS, subject to the other prescribed conditions.
How long is a GAER valid now?
Three years from the date of issue, with post-shipment reports within 30 days from the end of each quarter.
From when do these changes apply?
With immediate effect from 2 November 2026.