US export control laws to benefit India |
The US has made necessary changes in its export control laws that would benefit India by facilitating smoother transfer of technologies and arms to it. The new rule that makes necessary changes in the export control laws "creates a presumption of approval" for Indian companies seeking to import Commerce Department-controlled military items, except Weapons of Mass Destruction-related goods. This means that only under the rarest circumstances will India be denied licenses. Mukesh Aghi, president of US India Business Council (USIBC) is pleased that India`s status as a `Major Defence Partner` is being translated into tangible regulatory reform. The new rule also amends the law so that companies will not need a license at all after becoming a Validated End User (VEU). Indian and US companies operating in India can seek VEU status for both civil and military manufacturing, and by doing so, they do not need to obtain individual licenses. This makes it far more convenient to build a global supply chain and react quickly to changing market conditions, explained Benjamin Schwartz, USIBC`s Director for Defence and Aerospace. Over 810 licenses representing some USD 5 billion in trade in the last half decade have been granted for goods covered under this new rule.
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