Export Policy for Civilian Drones Eased! How It Will Help You?

In a significant move to promote the export of high-tech items, the Directorate General of Foreign Trade (DGFT), Ministry of Commerce and Industry, has announced the liberalization and simplification of the policy for the export of Drones/UAVs intended for civilian end uses from India. This decision aligns with the emphasis placed on facilitating exports of cutting-edge technologies, including Drones/UAVs, in India's Foreign Trade Policy 2023. The revised policy also takes into account India's international obligations concerning non-proliferation.

Drone Export Control Regime Simplified

Until now, all types of drones/UAVs fell under the restricted category for export, controlled by the SCOMET (Special Chemicals Organisms Material Equipments and Technology) list, specifically Category 5B. This list includes items that have the potential for both civilian and military applications, necessitating specific regulations. Exporting such drones required an SCOMET license, creating challenges for the industry, particularly when exporting drones with limited capability intended solely for civilian use.

Addressing Industry Challenges

Following extensive consultations with stakeholders, including soliciting public and industry comments, the SCOMET policy governing drones/UAVs for civilian use has been amended through DGFT Notification No. 14, dated June 23, 2023. The amendment aims to simplify and liberalize the export policy for drones/UAVs. Under the revised policy, drones/UAVs that do not fall under the specified categories in the SCOMET list, have a range of 25 km or less, deliver a payload of no more than 25 kgs (excluding software and technology), and are exclusively intended for civilian end-use, will now be subject to the General Authorization for Export of Drones (GAED). This onetime general license will be valid for three years.

Reducing Compliance & Promoting Ease of Doing Business

With this policy change, drone manufacturers/exporters holding the GAED Authorization will no longer need to apply for an SCOMET license for each similar export shipment intended for civilian purposes within the three-year validity period. Instead, they will be required to fulfill post-reporting and other documentary requirements. This reduction in compliance obligations will streamline the export process for the industry, fostering ease of doing business and facilitating increased drone exports from India. Furthermore, the policy change aims to position India as a global manufacturing hub for drones/UAVs, encouraging startups and new manufacturers in this field to scale up and explore international markets.

Expanding Market Access & Driving Economic Growth

The liberalization of export controls on drones will enable Indian drone manufacturers to access larger global markets and compete on a broader scale, ultimately stimulating economic activity. By facilitating the export of drones/UAVs, this policy change encourages innovation and technological advancements in the drone/UAV industry, potentially boosting the sector's growth.

General Authorization for Export of Drones (GAED)

The DGFT has also notified the detailed procedure for the General Authorization for Export of Drones (GAED) specifically meant for the export of drones/UAVs for civilian use through DGFT Public Notice No.19, dated June 23, 2023. Interested parties can find the comprehensive guidelines on the DGFT website.

The liberalization and simplification of the policy for the export of drones/UAVs for civilian end uses from India marks a significant step toward promoting India as a global manufacturing hub in this sector. By reducing compliance burdens and streamlining the export process, the policy change is expected to encourage the growth of the drone/UAV industry, foster innovation, and drive economic activity.