International Law Advisory - BIS Makes Correction to India Export Regulation Revisions

  On Wednesday the United States Department of Commerce, Bureau of Industry and Security (“BIS”) revised its license review policy for exports to certain Indian entities, correcting errors made in its September 22, 2004 Federal Register notice.  See September 23, 2004 advisory from Steptoe & Johnson for a summary of the changes made in the initial Federal Register notice.  A copy of Wednesday’s notice, found at 69 Fed. Reg. 58049 (Sept. 29, 2004), is attached.  

The corrections made by BIS relate to certain shipments going to the “balance of plant” portion of Indian nuclear facilities (Rajasthan 1 & 2 and Tarapur 1 & 2) subject to International Atomic Energy Agency (“IAEA”) safeguards.  The September 22 Federal Register notice incorrectly indicated that BIS had established a presumption of approval for shipments of all items not controlled for nuclear proliferation (“NP”) reasons going to the “balance of the plant” portion of those facilities.  In Wednesday’s notice, BIS acknowledged that this was an error, and that it should have stated that the licensing policy for the “balance of the plant” portion of those facilities is a presumption of approval for all items not multilaterally controlled for nuclear proliferation (“NPI”) reasons.  

We will continue to keep you apprised of sanctions and export control developments.  If you have any questions, please feel free to contact Ed Krauland at 202.429.8083 or Meredith Rathbone at 202-429-6437.