Tomorrow, the Commerce Department’s Bureau of Industry and Security (BIS) will ease certain US export controls on India, as part of the US commitments under the India–US Joint Statement of June 7, 2016, which recognized the United States and India as Major Defense Partners. BIS is amending the Export Administration Regulations (EAR) to establish a general licensing policy of approval for exports or reexports to or transfers within India of items subject to the EAR and controlled only for National Security (NS) or Regional Stability (RS) reasons. Items subject to the EAR include items shipped from the United States or items reexported from a third country to India with more than 25% U.S.-origin content. The NS and RS controls include some of the most sensitive items on the control list, which underscores the significance of this development from both a national security and a commercial perspective. It is important to note that licensing requirements generally still apply to these exports and reexports to India, but now BIS will be generally inclined towards granting these license requests, which should open up a significant new market for companies operating in these sectors.
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Global Defense Developments
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