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.
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:
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.
© 2019 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
KPMG International Cooperative (“KPMG International”) is a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.