Open General Export Licence

Open General Export Licence  Latest News

Recently, the Department of Defence Production, Ministry of Defence has undertaken a comprehensive set of reforms to simplify the Defence Export Standard Operating Procedure (SOP) and the Open General Export Licence (OGEL) framework.

About Open General Export Licence

• It was first introduced in 2019, following demands from exporters, to make defence exports easier.
• It is a standing one-time export authorization.
• It enables eligible exporters to self-generate export authorisations for multiple consignments of specified defence items, without seeking a separate authorisation for each consignment.
• OEGL Framework
  • The government has merged three existing OGEL SOPs covering major platforms and equipment, parts and components, and intra-company transfer of technology into a single framework.
  • Validity: OGEL validity has been increased from two to three years, reducing the frequency of renewals and associated compliance requirements.
  • Countries covered: OGEL coverage has been expanded from 41 to all countries, except negative/sensitive nations and those facing UN Security Council sanctions or arms embargoes.
  • A new provision facilitates Indian companies having long-term contracts or agreements with Foreign Original Equipment Manufacturers (FOEMs).
    • OGEL may be granted for eligible items and the particular FOEM, with validity aligned with the underlying contract or agreement, subject to prescribed conditions.
  • Expanded Coverage: The range of items covered under OGEL has been expanded, providing greater flexibility to eligible exporters.
    • The revised framework also permits civil-end-use exports of specified parts and components of small-calibre arms and protective equipment, further broadening legitimate international business opportunities.

Source: PIB

‹ ›