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July 10, 2000

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More controlled items exported to India: US

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The export of previously controlled US items to India have increased since the mid-March reduction in the number of entities subject to sanctions, R Roger Majak, assistant secretary of commerce for export administration, said today.

"Our rate of licence denials jumped to nine per cent during fiscal 1999 (ending September 30, 1999) -- up considerably from prior years when it was between two and three per cent. I am pleased to report that in the first nine months of this fiscal year, denials have dropped back to around four per cent," Majak told a conference reviewing the operation of the export administration regulations.

"The major reason for both the increase and the recent drop, he said, "can be summarized in one word -- India."

Most of the denials in 1999, he said, are attributed to the India sanctions, and most of those were for export administration regulation items and items not otherwise requiring a licence.

"The trimming we did of the sanctioned entities list earlier this year, and the adoption of a presumption of approval," he said, "has enabled us to approve more applications for India....

"While the four percent is still higher than our previous norm, it is a significant drop, especially given that our policy revision was only made a few months ago, in mid-March."

PTI

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