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U.S. final rule eases restrictions on defense exports to India

U.S. final rule eases restrictions on defense exports

A final rule from the Bureau of Industry and Security (BIS) of the U.S. Commerce Department amends the Export Administration Regulations (EAR) and eases restrictions on certain defense exports to India.

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With the final rule [PDF 222 KB] (as published in the Federal Register), BIS formally recognized and implemented India’s membership in the Wassenaar Arrangement. 

Further, BIS removed India from Country Group A:6 and placed it in Country Group A:5—this step provides the benefit of greater availability of License Exception Strategic Trade Authorization (STA) for exports and re-exports to, and transfers within India under the EAR. This action befits India’s status as a “major defense partner” and recognizes the country’s membership in three of the four export control regimes: 

  • Missile Technology Control Regime (MTCR)
  • Wassenaar Arrangment (WA)
  • Australia Group (AG)

The final rule is another in the series of rules that implement reforms to which the United States and India have mutually agreed to promote global nonproliferation, expand high technology cooperation and trade, and ultimately facilitate India’s full membership in the four multilateral export control regimes (Nuclear Suppliers Group, MTCR, WA, and AG). 

The effective date for the final rule is 3 August 2018.

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