BIS Final Rule Makes India Eligible for Authorization Validated End User
The Bureau of Industry and Security has issued a final rule, effective October 2, 2007, which amends 15 CFR 748.15(b) by adding India as an eligible destination for exports, reexports and transfers under Authorization Validated End-User (VEU).
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VEUs May Receive Certain Exports Without Individual Export Licenses
On June 19, 2007, BIS issued a final rule which created a new authorization for VEUs located in eligible destinations to which commodities, software and technology (except those controlled for missile technology (MT) or crime control (CC) reasons) may be exported, reexported or transferred without a license. Since the creation of this new authorization, China has been the only eligible destination.
(According to the BIS final rule, in order to be eligible for Authorization VEU, exporters, reexporters, and potential VEUs must adhere to various conditions and restrictions, including (partial list): (1) VEUs must be approved by the End-User Review Committee and listed in 15 CFR Part 748, Supplement 7; (2) requests for authorization as a VEU must be submitted as an advisory opinion request; (3) items obtained under authorization VEU may be used only for civil end-uses; (4) certifications must be obtained from the VEU prior to initial export/reexport regarding end-use and compliance with VEU requirements; (5) etc.
See ITT's Online Archives or 06/28/07 news, 07062815, for BP summary which highlighted BIS' final rule on the VEU program and noted that Authorization VEU may be exteneded to specific end-users in India at some point in the future.)
Authorization VEU Intended to Further Streamline U.S.-India Dual-Use Trade
BIS states that designating India as an eligible destination under Authorization VEU builds upon the advances made in the U.S.-India High Technology Cooperation Group (HTCG) and the Next Steps in Strategic Partnership (NSSP). According to BIS, excellent cooperation in these fora has enabled the U.S. to reduce controls on the export of certain dual-use items to India.
Authorization VEU is intended to further streamline U.S.-India trade in dual-use technologies. It will authorize the export, reexport and transfer of certain controlled U.S. technology without a license to end-users engaged in civilian end-uses in India who have demonstrated their ability to use sensitive items responsibly. As India continues to
demonstrate its commitment to harmonize its export controls with those of the major multilateral control regimes, BIS states that it anticipates that more end-users and items will be approved for Authorization VEU.
BIS contact - Michael Rithmire (202) 482-6105
BIS final rule (D/N 070824480-7482-01, FR Pub 10/02/07) available at http://a257.g.akamaitech.net/7/257/2422/01jan20071800/edocket.access.gpo.gov/2007/pdf/E7-19359.pdf.