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Export Controls on Shipments to India Relaxed

Friday, January 23, 2015
Sandler, Travis & Rosenberg Trade Report

The Bureau of Industry and Security has issued a final rule that, effective Jan. 23, removes license requirements for exports to India of certain items controlled for crime control and regional stability reasons. BIS states that this rule helps to fulfill a November 2010 bilateral commitment to strengthen the global nonproliferation and export control framework and “realize the full potential of the strategic partnership between the two countries.”

According to BIS, this rule removes India from CC columns 1 and 3 and RS column 2 on the Commerce Country Chart in Supplement No. 1 to Part 738 of the Export Administration Regulations because the government of India has taken appropriate steps to ensure that the specific U.S.-origin items controlled for CC and RS reasons are not reexported from India without a license. However, a license requirement remains for items controlled under Export Control Classification Numbers 6A003.b.4.b and 9A515.e for RS column 2 reasons when destined to India.

As a conforming change, this rule adds India to 740.2(a)(4)(i) to identify India as one of the countries or organizations for which the restrictions on license exceptions due to license requirements described in section 742.7 (crime control and detection) do not apply. This status also broadens the availability of license exceptions under the EAR for items exported to India.

In addition, BIS is amending the EAR to establish a filing requirement in the Automated Export System for items exported to India, regardless of value, that fall under an ECCN on the Commerce Control List in Supplement No. 1 to Part 774 for which CC columns 1 and 3 and RS column 2 are listed as reasons for control. BIS is also amending section 758.6 by adding new paragraph (c) requiring a notation on the invoice, bill of lading, air waybill or other export control document that accompanies the shipment from its point of origin in the United States to the ultimate consignee or end-user in India. This notation will indicate the ECCNs of items for which CC columns 1 or 3 or RS column 2 reasons for control are listed, that they are destined to India, and that BIS authorization may be required for reexport of the items.

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