Select Indian companies allowed to import US technology without licence

Mumbai: The US will allow select companies in India and China to import sensitive technology without having import licences for individual articles.

"We have put in place an innovative mechanism, ''validated end user'' programme, or VEU. Through this programme, American companies will find it easier to export certain US products to customers that meet the security standards of a US government inter-agency review," US commerce secretary Carlos Gutierrez said.

"To be approved, companies will need to have a strong export compliance programme and a track record of using US high technology responsibly," he said at the Bureau of Industry and Security Conference on Export Controls and Policy.

The programme, put in place earlier this year, has been extended to India and China. The US had announced the approval of an initial group of five companies in China that have met the security requirements for this programme earlier this month, he said.

High-tech companies in the areas of electronics, avionics, aerospace, and life sciences have a lot to look forward to in terms of increased and easier exports to India. Super computer chip manufacturers such as Intel, aeronautics major Lockheed Martin and mid-western avionics major, Rockwell Collins are some companies that will benefit greatly.

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 newly introduced 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.

Applications can be made to the department of commerce in the US. The commerce department will work with the Government of India and private sector groups to effectively implement the VEU programme.

"The VEU programme for India will make transactions easier, faster and more reliable with customers that meet the security requirements of an inter agency review process, and help us exporters remain competitive in one of the fastest- growing markets for American companies," the commerce department said in a statement.

India''s growth has created new opportunities such as the outsourcing sector for US businesses. They can thus capitalise on those opportunities by eliminating individual licence requirements on exports of US controlled items to those customers in India who have a tack record of responsible use of such items.

The VEU programme has been introduced at a very opportune time. It would be further enhanced if the current negotiations on sharing nuclear power technology were successful.

With the US exports to India having increased by 66 per cent since 2004, the VEU programme will further increase US high-tech exports to India and also further align the economic and commercial ties between the two countries, he added.