Changes to U.S and Indian export controls expected to increase trade of dual-use items

U.S. and Indian export controls expected to increase trade of dual-use itemsThe U.S. and Indian governments announced changes to their countries’ export controls that are expected to affect manufacturers seeking to trade dual-use items, i.e. items that can be used for both commercial and military purposes, between the two countries. Electronics, including certain printed boards and their associated intellectual property (IP) such as chemical formulas, purchase orders containing specifications and printed board artwork are all examples of regulated dual-use items.

The changes to the U.S. export control system with India are expected to increase trade of dual-use items with India. According to a statement by the White House, “The United States will ‘realign’ India in its dual-use export control regulations to reflect India’s status as a strategic partner, effectively treating India similarly to other close allies and partners. This realignment will remove India from categories within the dual-use regulations that connote India as a ‘country of concern.” Electronics companies are expected to be positively impacted by these changes.

The White House statement added, “…India will harmonize its national control list with the multilateral regimes and incorporate re-export controls on certain U.S.-origin items to address the potential transshipment of these items” to third-party nations. The change to Indian export controls may assist in preventing the unauthorized release of previously U.S.-controlled items.

Before this change in U.S. policy, the outdated U.S. export control system with India impeded the U.S. electronics industry’s ability to compete internationally and export with Indian based companies. U.S. businesses exporting controlled items must navigate a complex and arduous interagency license application process frustrating many potential international buyers of U.S. electronics and technology. Rather than negotiate cumbersome regulations to purchase products or designs regulated by U.S. export controls, customers outside the U.S. are able to purchase dual-use items from the global marketplace. Multinational electronics companies are also affected by dual-use export controls requiring companies to obtain a license for exporting their own designs for controlled dual-use technology to their overseas facilities.

The White House and Indian government have not released a timetable for when these changes will be implemented. IPC will continue to update its members on changes to export controls.

To learn more about U.S. export controls and how they affect the electronics industry please visit www.ipc.org/export-controls.

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