Commerce to Ease Export Controls on Certain Shipments to India

The Commerce Department will reduce the number of military and high-tech items that will require licenses for export to India, Secretary Wilbur Ross announced July 30. India will be moved into Tier 1 of the Strategic Trade Authorization license exception program. "STA Tier 1 treatment, comparable to NATO allies, will expand the scope of exports subject to the Export Administration Regulations (EAR) that can be made to India without individual licenses," Commerce said. It estimated that there was $9.7 billion worth of exports to India over the last seven years that required licenses and would no longer require licenses under the new classification.

Benjamin Schwartz, head of defense and aerospace for the U.S.- India Business Council, said the reclassification could be published in the Federal Register as soon as Aug. 3, but if not then, it would likely be done sometime the next week. "If you look at the overall number of exports that went from the United States to India last year, about half of them would be affected by this re-classification," he said, as purchases of spy planes or Apache helicopters would no longer require an export license. He said $2.1 billion worth of exports last year were covered by licenses.

Schwartz said the council is pleased with the decision. "It's a recognition that India has built a robust export-control system, and the U.S. has faith in that regulatory system," he said.