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