SCOMET facilitation opens to 4-star and 5-star status holders; GAER now valid three years

Authority DGFTDate 2 Nov 2026Type Public noticeSubject FEMA & Trade

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

ItemBeforeNow
Stock and Sale (para 10.10(c)(vii)), OEM/EMS/CMCopy of AEO certificateAEO 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 complianceAEO or valid 4-star/5-star status holder certificate, with ICP compliance
GAET and GAEIS (para 10.15)AEO T2 certification of CBICAEO 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 exportThree 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 onlineMissions 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

  1. Status holders: check whether your 4-star or 5-star certificate is valid and use it in place of AEO for these SCOMET routes.
  2. GAER holders: move to quarterly post-shipment reports, due within 30 days from the end of each quarter.
  3. Ask DGFT whether an existing one-year GAER gets the three-year validity; the notice does not say.
  4. 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).

DGFTSCOMETStatus holdersGAERExports
Read the official PDF: DGFT Public Notice 37/2026-27 Read the official PDF: DGFT Public Notice 38/2026-27

Written 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.