By Arun Kumar, IANS
Washington : The US has announced a new programme to allow American companies to sell high-tech dual-use products with potential military applications to pre-screened customers in India without an individual licence.
The new Validated End-User (VEU) programme for India will help facilitate and increase bilateral high technology trade while maintaining a secure US export control system, the US commerce department announced Tuesday.
Dual-use items have commercial uses, but also have conventional military and weapons of mass destruction applications.
The VEU programme for India will make transactions easier, faster and more reliable with customers that meet the security requirements of an interagency review process, and help US exporters remain competitive in one of the fastest-growing markets for American companies.
US exports to India have increased by 66 percent since 2004. The VEU programme could facilitate millions of dollars in additional US high-tech exports to India in such sectors as electronics, avionics, aerospace, and life sciences.
The percentage of total US exports to India requiring a commerce department licence has plummeted to less than one percent from 24 percent in 1999. As the world’s largest democracy and a strategic partner, India’s growth has created new opportunities for US businesses and workers, US Commerce Secretary Carlos M. Gutierrez said.
VEU will enable US companies to capitalise on those opportunities by eliminating individual licence requirements on exports of US-controlled items to certain customers in India with a track record of responsible use of such items.
“American exporters benefit from access to India’s market, and the Validated End-User builds upon the enormous progress made over the last six years in facilitating secure high-technology trade and investment while strengthening our cooperation on export controls,” said Gutierrez.
“This common-sense approach will make it easier for US companies to sell American products to pre-screened customers in India, while maintaining vigilance over US technologies.”
Announced by President George Bush in March 2006 and previewed by Secretary Gutierrez at the US-India CEO Forum last week, the VEU programme will increase US high-tech exports to India and further align economic and commercial ties between the two countries.
As India has taken significant steps to strengthen its non-proliferation regime — including the passage of the landmark Weapons of Mass Destruction Bill creating an export control system — the US has updated its policies towards India to reflect this progress.
“The VEU programme is a result of India’s progress in developing an effective export control system, and will ensure American companies are able to compete while giving companies in India enhanced access to US products,” Gutierrez added.
VEU for India was implemented through an update to the Export Administration Regulations in the Federal Register. India’s eligibility for this programme was facilitated through consultations with the Indian government at such forums as the US-India High Technology Cooperation Group, the commerce department said.
While US controls on exports to India have been eased over the past several years through such bilateral cooperation, VEU goes further by enabling licence-free exports to authorised companies in India with a record of responsibly using sensitive US technology.
Companies in India will apply for VEU status through the US commerce department which will continue to work with the government of India and private-sector groups to effectively implement the VEU programme for maximum benefit to both countries.
The department’s Bureau of Industry and Security (BIS) promotes continued US strategic technology leadership and advances national security, foreign policy and economic objectives by ensuring an effective dual-use export control and treaty compliance system.
While US export controls on many items have been removed in recent years, certain technologies such as advanced electronics still require an individual export licence for sale to India.
Under the VEU programme, such technologies would not require an individual licence if exported to a company approved as a “Validated End-User”. Any end-user in India is eligible to apply for this programme. In addition, US exporters may propose end-users for VEU status.
The US-India High Technology Cooperation Group (HTCG) was initiated as a result of a commitment between President Bush and Prime Minister Manmohan Singh to stimulate high-technology commerce between the two countries.
The HTCG is co-chaired by US Under Secretary of Commerce Mario Mancuso and Indian Foreign Secretary Shivshankar Menon and consists of senior representatives from each government.
The HTCG seeks to identify steps to create a favourable environment for high-technology trade and collaboration, while enhancing the security related to such trade.