Defence Minister Shri Rajnath Singh on October 24, 2019 approved issuance of two Open General Export Licences (OGELs) for export of certain parts & components and intra-company transfer of technology to select countries.
Objectives
It will give a boost to defence exports and enhance ease of doing business.The application for grant of OGEL will be considered by Department of Defence Production (DPP) on a case-to-case basis.
Following a demand by the exporters, the DPP held extensive consultations with various stakeholders and formulated this OGEL policy and submitted for Raksha Mantri’s approval.
The countries allowed under the OGELs are: Belgium, France, Germany, Japan, South Africa, Spain, Sweden, UK, USA, Canada, Italy, Poland and Mexico. Export of items to a ‘Special Economic Zone’ is not permitted.
Conditions
For acquiring the licences, the applicant is mandatory to have Import-Export certificate. The quarterly & end of the year reports on all the transactions done under OGELs should be submitted to DPP for examination and post-export verification.
The items permitted under OGEL includes components of ammunition & fuse setting device without energetic and explosive material; firing control & related alerting and warning equipment & related system; and body protective items. Complete aircraft or complete unmanned aerial vehicles (UAVs) and any components specially designed or modified for UAVs are excluded under this licence.
The transfer of technology to the countries is subject to the condition that the export is an intra-company transfer from an Indian subsidiary (applicant exporter) to its foreign parent company and/or to subsidiaries of the foreign parent company.
What is Open General Export Licences ?
The OGEL is a one-time export licence to be granted to a company for a specific period (two years initially).
