DGFT Expands GAEC Scheme for Chemical Exports
The Directorate General of Foreign Trade (DGFT) has widened the scope of the General Authorisation for Export of Chemicals & Related Equipment (GAEC). This move simplifies export procedures for select chemicals listed in Appendix 10(N), allowing exporters to ship to additional countries without case-by-case approvals.
This step aligns India’s dual-use export control framework with global standards, while supporting ease of doing business in sectors like pharma, specialty chemicals, and research.
What Is the GAEC Scheme?
The GAEC is a general export licence mechanism introduced by DGFT to enable faster and compliant exports of certain dual-use chemicals and related equipment. It’s part of India’s commitment to international non-proliferation regimes such as the Australia Group.
Under GAEC:
- Exporters can ship items without individual authorisation
- Applicable only for chemicals listed in Appendix 10(N) of ITC(HS)
- Prior registration and adherence to end-use norms are mandatory
Key Update: More Countries Now Eligible
As per DGFT Public Notice No. 18/2025, the list of countries to which chemicals under Appendix 10(N) can be exported under the GAEC has been expanded.
📌 Earlier Scope
- Only a limited number of countries permitted under GAEC
✅ Now Expanded To
- Additional countries, including key trading partners aligned with international non-proliferation norms
This saves exporters from waiting for special clearances for each shipment, especially for low-risk, recurring transactions.
Why This Matters for Indian Exporters
The change significantly benefits:
- Pharmaceutical firms using controlled reagents
- Chemical manufacturers with global buyers
- Academic and R&D institutions
- E-commerce or B2B exporters handling lab or industrial chemicals
By broadening destination access, India is:
- Reducing compliance burden
- Enhancing export competitiveness
- Aligning with WTO and WCO trade facilitation commitments
Legal Basis: DGFT Notification & Appendix 10(N)
- Public Notice No. 18/2025 – DGFT.gov.in link
- Export of controlled chemicals is governed under Para 2.73A of FTP 2023
- Appendix 10(N) lists chemicals under control for GAEC
Note: Exporters still need to register under SCOMET, maintain records, and submit periodic reports as per DGFT guidelines.
Expert Tip: Simplify Compliance with Pre-Registration
Exporters must:
- Get GAEC registration before dispatch
- Maintain end-use certification and consignee details
- Ensure items are covered strictly under Appendix 10(N)
🔍 “Get your GAEC documentation right once, and avoid delays or detentions at ports,” says a senior EXIM consultant.
Summary
DGFT has expanded the GAEC scheme under Appendix 10(N), enabling Indian exporters to ship controlled chemicals to more countries without individual export approvals. This move simplifies compliance, supports ease of doing business, and aligns India with global non-proliferation standards.
FAQs
Q1. What is GAEC under DGFT?
GAEC allows general authorisation for exporting select chemicals under Appendix 10(N) without applying for each shipment.
Q2. What has changed now?
More countries have been added to the eligible export list under GAEC, reducing the need for individual clearance.
Q3. Is GAEC applicable to all chemicals?
No, only to those listed in Appendix 10(N) under SCOMET.
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