DGFT asks industry to implement internal compliance programme

Indian firm need to implement internal compliance programme (ICP) on export control as they seek business opportunities that have opened up following the country's entry into new multilateral export control regimes, DGFT said today.

ICP guides an organisation in establishing and maintaining trade compliance as also helping it plan as well as maximise international business.

It includes steps not only for finished products but also for licences, software and counter parties, as it is in these matters that most violations occur.

Director General of Foreign Trade, Alok Vardhan Chaturvedi said that while India's accession to global export control agreements has given rise to opportunities for industry, it cannot lose sight of its onerous responsibility in ensuring a safe and secure world.

Implementation of ICP by industry is an example of a best practice in discharging its responsibility, Chaturvedi said.

He pointed out that the ICP module should be used by industry as a template for creating its own ICP depending on whether a company is a large systems integrator or an SME.

He suggested that an institutional structure should be evolved by industry with an active To Do' list that must be monitored regularly.

He made the remarks while addressing the National Conference on Export Control organised by Ficci here.

The recently released draft Defence Production Policy envisages an export market of USD 50 billion by 2032. In a statement, Ficci said the industry feels that to achieve this target, the government of India needs to handhold and expedite the licensing process.

Ficci believes that once industry voluntarily puts in place checks and balances by adopting ICP, it could ask the government for any exemption or bulk licenses which the government would be in a better position to consider, it said.