BIS Final Rule Removes Certain Export/Reexport License Requirements for India and Removes 6 Indian Entities From Entity List

The Bureau of Industry and Security (BIS) has issued a final rule, effective August 30, 2005, which implements the following:

The removal of license requirements for export and reexports of items controlled unilaterally by the U.S. for nuclear nonproliferation reasons to India; and

The removal of six Indian entities from the Entity List.

BIS notes that it is taking this action in order to implement the final phase of the Next Steps in Strategic Partnership (NSSP) between the U.S. and India.

Removal of Certain Unilateral Nuclear Nonproliferation Export and Reexport License Requirements for India

Specifically, this final rule excepts India from the export and reexport license requirements for items controlled unilaterally by the U.S. for nuclear nonproliferation reasons (i.e., items that are not subject to the Nuclear Suppliers Group regime) by amending 15 CFR 742.3(a)(2) and the Commerce Country Chart in 15 CFR Parts 738, Supplement No. 1.

Six Indian Entities Removed from Entity List

BIS is also removing the following six Indian entities from the Entity List in 15 CFR Part 744, Supplement No. 4:

Three Department of Atomic Energy entities:

Tarapur (TAPS 1&2)

Rajasthan (RAPS 1&2)

Kudankulam (1&2)

Three Indian Space Research Organization (ISRO) subordinate entities:

ISRO Telemetry, Tracking and Command Network (ISTRAC)

ISRO Inertial Systems Unit (IISU) Thiruvananthapuram

Space Applications Center (SAC), Ahmadabad

(The Entity List is a listing of foreign end users involved in proliferation activities. These entities have been determined to present an unacceptable risk of diversion to developing weapons of mass destruction or missiles used to deliver those weapons.)

Final rule expected to reduce number of license application for export/reexports to India. BIS anticipates that this final rule will reduce the number of license applications for exports and reexports to India by about 150 to 200 annually.

Other license requirements not removed by final rule. However, BIS notes that neither the removal of the unilateral nuclear nonproliferation license requirement nor the removal of the entities from the Entity List by this rule removes any other license requirements imposed by the Export Administration Regulations (EAR).

Among others, the end use license requirements of 15 CFR Part 744, including the license requirements for the nuclear end uses specified in 15 CFR 744.2, 744.5 and 744.6, and missile end use license requirements specified in 15 CFR 744.3 and 744.6, continue to apply.

This rule also does not affect license requirements related to entities that remain on the Entity List. For certain of those entities, a license is required for all items subject to the EAR; for others, a license is required for items with a classification other than (1) EAR99 or (2) where the third through fifth digits of the ECCN are 999.''

BIS contact - Eileen Albanese (202) 482-0436

BIS final rule (D/N 050822227-5227-01, FR Pub 08/30/05) available at http://a257.g.akamaitech.net/7/257/2422/01jan20051800/edocket.access.gpo.gov/2005/pdf/05-17241.pdf.