U.S. Dept of Commerce

Announcement on U.S.- India
Next Steps in Strategic Partnership
September 2004

The United States and India announced major progress in the Next Steps in Strategic Partnership (NSSP) initiative. Implementation of the NSSP will lead to significant economic benefits for both countries and improve regional and global security.

In January 2004, the United States and India agreed to expand cooperation in three specific areas: civilian nuclear activities, civilian space programs, and high-technology trade. In addition, the two countries agreed to expand our dialogue on missile defense. These areas of cooperation are designed to progress through a series of reciprocal steps that build on each other.

Since January, the two governments have worked closely together to conclude Phase One of the NSSP. This has included implementation of measures to address proliferation concerns and to ensure compliance with U.S. export controls.

These efforts have enabled the United States to make modifications to U.S. export licensing policies that will foster cooperation in commercial space programs and permit certain exports to power plants at safeguarded nuclear facilities. These modifications, including removing the Indian Space Research Organization (ISRO) Headquarters from the Department of Commerce Entity List, are fully consistent with U.S. Government nonproliferation laws, obligations, and objectives.

The United States and India will continue to move forward under the NSSP, and have a joint implementation group for this purpose. The progress announced today is only the first phase in this important effort, which is a significant part of transforming our strategic relationship.

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The specific modifications to U.S. licensing policies designed to expand U.S.-India civil space and civil nuclear cooperation and enhance bilateral high-technology trade will be:

      Removing the Indian Space Research Organization (ISRO) Headquarters, Bangalore from the Department of Commerce Entity List,¹ which will permit many dual-use items to be exported to ISRO Headquarters without an export license. The removal of ISRO Headquarters from the Entity List will facilitate U.S. exports to India’s civilian space program and encourage U.S. investment in the peaceful uses of space.

      Removing licensing requirements for low-level dual-use items (known as EAR99 and XX999 items) exported to ISRO subordinate entities that are on the Entity List. This change in licensing policy is expected to reduce the number of applications submitted for exports to ISRO subordinate entities by approximately 75-85 percent and reduce the total number of applications for all dual-use exports to India by approximately 20-25 percent.

      Applying a “presumption of approval” policy for all dual-use items not controlled by the Nuclear Suppliers Group (NSG), if intended for export to the “balance-of-plant” portion of an Indian nuclear facility subject to International Atomic Energy Agency (IAEA) safeguards. Permitting the export of all U.S.-origin items not controlled by the NSG to the “balance of plant” portion of safeguarded facilities will expand the scope of civilian nuclear cooperation between the United States and India.

These modifications will be reflected in amendments to the Export Administration Regulations scheduled to be published in the Federal Register this week.

¹The Entity List is located in Supplement No. 4 to Part 744 of the Department of Commerce Export Administration Regulations.