The Hindu Business Line : Processing time for US licence for exports to India reduced

Mr Steven C. Goldman, (right) Director, Office of Non-Proliferation & Treaty Compliance, US Department of Commerce, with Mr Alexander Lopes, Director, US Deemed Exports, and Ms Ann K. Ganzer, Defence Trade Control Policy, US State Department, at the seminar on `Current and Prospective Opportunities for US-India High Technology Trade' in Hyderabad on Wednesday. - P.V. Sivakumar

Hyderabad , Sept. 20

How long does it take the US Commerce Department to process an export licence application from India?

The average time is 34 days. In fact, the duration has come down from 40-44 days, a couple of years ago. In comparison, an application from the UK takes 32 days, Israel, Russia and France 33 and Hong Kong & Taiwan 35.

Nearly 99 per cent of all items exported to India do not require a licence as of today. This is compared to about 7 per cent, prior to Indian's nuclear explosion in Pokhran in 1998. What gets denied, include sensitive dual use technology and items used for weapons of mass destruction or their means of delivery.

Giving this insight into the way the Indo-US trade works, especially in the high technology area, Mr Steven C. Goldman, Director, Office of Non-proliferation & Treaty Compliance, of the Commerce Department, said about $50 million in annual exports to India no longer require any export licence, as far as the Commerce Department is concerned.

In financial year 2005, the quantum of exports to India was of the order of $8 billion. Of this, a total of $11 million was turned down, which amounts to virtually nothing, Mr Goldman told an audience of industry, drawn from the public and private sector, at a seminar organised by the Federation of Indian Chambers of Commerce and Industry , here.

To progressively remove misconceptions, irritants and ensure free trade, two unique programmes have been launched — The US-India High-Technology Cooperation Group (HTCG) in 2002 and the Next Steps in Strategic Partnerships (NSSP) in 2004. Most high technology issues, dual-use technology exports are being discussed and ironed out through these, he said.

The HTCG is working in the areas of biotechnology, medical research and biopharmaceuticals to identify partnerships and reduce barriers to trade. The efforts of these two groups have also resulted in a progressive reduction in the list of banned entities of the Indian Space Research Organisation and nuclear related as well as removal of unilateral controls.

Post July 18 Indo-US Nuclear agreement, the Bush Government is working towards a change in US law to forge an energetic civilian nuclear partnership with India. There is considerable progress with the Indian side making many favourable moves, Mr Goldman said.

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