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BIS Final Rule Implements Initial "Next Steps in Strategic Partnership" with India

The Bureau of Industry and Security (BIS) has issued a final rule, effective September 22, 2004, which implements the following three initial steps that the U.S. has agreed to take under the "Next Steps in Strategic Partnership" (NSSP) with India:

  1. ISRO Headquarters removed from Entity List - this final rule removes the Indian Space Research Organization (ISRO) Headquarters, Bangalore from the Department of Commerce's Entity List (supplement 4 to 15 CFR Part 744).
  2. Certain export license requirements removed - this final rule removes the export license requirements for items subject to the Export Administration Regulations (EAR) having a classification of EAR 99 or a classification where the third through fifth digits of the Export Commodity Classification Number (ECCN) are 999, e.g., xx999, for the seven ISRO subsidiaries listed on the Entity List; and
  3. Presumption of approval established - this final rule establishes a presumption of approval for all items not controlled for nuclear proliferation reasons going to the "balance of plant" portion of Indian nuclear facilities subject to the International Atomic Energy Agency safeguards (Rajasthan 1 & 2 and Tarapur 1 & 2).

(According to BIS, balance of plant refers to the part of a nuclear power plant used for power generation (e.g., turbines, controllers, or power distribution) to distinguish it from the nuclear reactor.)

BIS also notes that this final rule makes one clarification to 15 CFR 744.1 in order to make clear the longstanding interpretation that information regarding the Entity List published in the Federal Register is intended to inform the public, not simply to inform exporters.

BIS contact - Eileen Albanese (202) 482-0436

BIS final rule (D/N 040713207-4207-01, FR Pub 09/22/04), available at http://a257.g.akamaitech.net/7/257/2422/06jun20041800/edocket.access.gpo.gov/2004/pdf/04-21303.pdf