Where Industry and Security Intersect
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– Number of Indian companies on Entity List reduced from 159 to 2 primary and 14 subordinate entities.
– Licensing policy for nuclear and missile controlled items changed from “policy of denial” to case-by-case review.
– Agree to “discuss ways to stimulate bilateral high-technology commerce.”
– Commit to “broaden dialogue and cooperation” in the area of export controls.
– Establishes framework for discussing steps to stimulate bilateral high-technology commerce.
– Addresses the need to consider economic and systemic issues inhibiting high-technology trade and the need to engage in outreach and trade promotion on market opportunities.
– Recognizes the shared commitment to preventing the proliferation of sensitive goods and technologies.
– States that the “Government of India will cooperate with the Government of the United States in verifying Indian end users and end uses.”
– Discusses market access, tariff and nontariff barriers, and export controls.
– A public-private forum on U.S.-India trade and investment is convened under the auspices of the HTCG and includes presentations on the climate for U.S.-India trade and investment, and on financing innovation. The forum also includes breakout sessions on the information technology, defense technology, life sciences, and nanotechnology sectors.
– Parties continued discussions on market access, tariff and nontariff barriers, and export controls.
– A public-private forum, similar to the July forum in Washington D.C., held in Bangalore, India on November 19 to continue discussions on U.S.-India trade and investment.
– Computer technology and software also are eligible for certain license exceptions (e.g., License Exception TSR for “technology and software under restriction,” License Exception ENC for “encryption software and commodities”).
– More than 75 percent of encryption products are eligible for export to India under License Exception ENC, after a review, unless destined to a listed entity. A license is required only for technology and “non-retail” encryption products to certain government end-users.
– Exports of EAR99 items to end users on the Entity List require a license.
– During Fiscal Year 2003, approximately one third of the dual-use license applications processed for India were for EAR99 items. The United States approved approximately 83 percent of these applications.
– Such licenses are reviewed on a “case-by-case” basis and are not subject to a policy of denial.
– Such licenses generally are approved unless the export would make a material contribution to nuclear, missile, or chemical/biological programs of concern, or pose an unacceptable risk of diversion to such programs.
– There is a “presumption of approval” for applications to export EAR99 items to listed entities.
– Other applications are subject to a “case-by-case” review.
– The complete list of Indian end users identified on the Entity List.
– Specific missile programs of concern are listed in Supplement No. 1 to Part 740 of the Export Administration Regulations.
– Exports to Indian missile programs of concern will be denied.
– NOTE: There are numerous commercial space programs in India that may not pose a proliferation concern. The United States is committed to enhancing cooperation with Indian commercial satellite programs for the peaceful use of space.
– Items intended to ensure the safety of safeguarded civilian nuclear power facilities generally will be reviewed favorably.
– Exports of all EAR99 items – including “balance of plant” commodities – generally will be reviewed favorably for use in safeguarded facilities.
– Exports to specified unsafeguarded nuclear activities and nuclear weapons programs will be denied.
– A license is required for any export or reexport if at the time of export or reexport you know that the item will be used in the design, development, production, stockpiling, or use of chemical or biological weapons in or by India.
– License applications will be reviewed to determine if the export or reexport would make a material contribution to a program of concern.
Fiscal Year 2003 Export License Applications for India:
Approved: 619 ($57 million)
Denied: 72 ($15 million)
Returned Without Action: 229 ($36 million)
TOTAL: 920 ($108 million)
Estimated Total Fiscal Year 2003 U.S. Trade with India: approximately $4.8 billion.
Average license processing time: 41 days
– The United States requires a license for only a small percentage of overall trade with India. In both Fiscal Years 2002 and 2003, approximately one percent of all U.S. trade with India required an export license.
– For over five years, India has been among the top five countries for approved license applications. In Fiscal Year 2003, the United States approved approximately 90 percent of the applications that required an export license.
– Of the 229 cases that were returned without action in Fiscal Year 2003, 65 percent were returned to the applicant because the exports were eligible for shipment under a license exception or no license was required.
– Exporters that are uncertain about license requirements for India should contact the Office of Exporter Services to determine if an item intended for export requires the submission of a license application.