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U.S. Department of Commerce Establishes Favorable Export Control Policies for India

On January 19, 2017, the U.S. Department of Commerce’s Bureau of Industry and Security (“BIS”) published a final rule (the “Rule”) making two significant changes to U.S. export control policy with respect to India. First, the Rule establishes a more favorable licensing policy with respect to the export of most controlled items to India; second, it also expands the scope of an export license exemption program for eligible Indian entities. These changes immediately follow the United States government’s designation of India as a “Major Defense Partner” on June 7, 2016, as well as other changes BIS has made in recent years to ease export controls relating to India and strengthen the U.S.-India trading relationship. Together, these developments have established a very favorable export control policy with respect to India, which should allow both U.S. companies operating in India and Indian companies transacting with American counterparties to quickly and efficiently engage in an increased volume of trade. Continue

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