Bloomberg Quotes Kevin Wolf on New Rules for Defense Exports to India

Bloomberg’s International Trade Daily has quoted Akin Gump international trade partner Kevin Wolf in the article “Expect Less Paperwork for Defense Exports to India,” which reports that, beginning August 3, U.S. exporters may ship an array of defense goods to India without licensing. The Commerce Department, the article says, has added India to the list of U.S. allies admitted into export control regimes authorizing exports, re-exports, and in-country transfers for sensitive technology.

U.S. companies, as the article notes, may export high-technology products with dual use in civilian and military sectors without a license as long as the items are not prized military or intelligence products of the United States. The products mostly consist of vehicles and engine components, such as wings, parachutes and aircraft tires. Items excluded from the license-free status include military products like the F-15 aircraft, missile launchers and bomb racks.

Wolf said the move is mainly a “technical” development, since more sensitive defense goods would still require export licenses.

“It’s a matter of convenience and reduces the amount of time, considerably, that it would take for a U.S. company to ship items that are controlled for exports,” Wolf pointed out, adding that a surge in defense exports to India is also unlikely, as “it will take time for companies, once the rule is published, to adjust to the new compliance requirements.”