Dual Use Export Sanctions - India/Pakistan

Dual-use Export Control Sanctions
India and Pakistan
November 13, 1998
Revised: November 16, 1998

We expect the Federal Register to publish a rule on November 19 that will amend the Export Administration Regulations (EAR) to implement the Administration's sanctions on India and Pakistan. The rule will codify those sanctions implemented in June that included a licensing policy of denial for exports and reexports of items controlled for nuclear nonproliferation and missile technology reasons to India and Pakistan, with limited exceptions. Additionally, the rule will add certain Indian and Pakistani government, parastatal, and private entities to the Entity List set forth in the EAR.

A prohibition is imposed on exports and reexports to certain government, parastatal, and private entities in India and Pakistan determined to be involved in nuclear or missile activities. With respect to subordinates of listed entities in India and Pakistan, only those specifically listed in Supplement No. 4 to part 744, Entity List, are subject to the restrictions and policies set forth in this section. The addition of entities to Supplement No. 4 to part 744, Entity List, does not relieve you of your obligations under General Prohibition 5 in §736.2(b)(5) of the EAR: You may not, without a license, knowingly export or reexport any item subject to the EAR to an end-user or end-use that is prohibited by part 744 of the EAR. You are urged to use the guidance in Supplement No. 3 to part 732 of the EAR, BXA’s ‘Know Your Customer’ Guidance and Red Flags when exporting or reexporting to India and Pakistan.

The list of Indian and Pakistani entities to be added to the Entity List is divided into three PDF files. [Provided here in HTML] These files are:
Government entities determined to be involved in nuclear or missile activities
Parastatal and private entities determined to be involved in nuclear or missile activities
Government entities determined to be involved in military activities

Certain Government, Parastatal, and Private Entities in India and Pakistan Determined to Be Involved in Nuclear or Missile Activities Will Be Included in Supplement No. 4 to this Part 744 (Entity List) on November 19, 1998. These entities are ineligible to receive exports or reexports of items subject to the EAR without a license. Exports and reexports of all items subject to the EAR to listed government, parastatal, and private entities require a license. A license is also required if you know that the ultimate consignee or end-user is a listed government, parastatal, or private Indian or Pakistani entity, and the item is subject to the EAR.

No License Exceptions are available to these entities, except those applicable to items listed in §740.2(a)(5) of the EAR, which remain available to such entities when intended to ensure the safety of civil aviation and safe operation of commercial passenger aircraft.

License review standards for government entities determined to be involved in nuclear or missile activities. Applications to export or reexport items controlled for NP or MT reasons to listed government entities will be denied, except items intended for the preservation of safety of civil aircraft, which will be reviewed on a case-by-case basis; and computers, which will be reviewed with a presumption of denial. All other items subject to the EAR to these listed entities will be reviewed with a presumption of denial.

License review standards for parastatal and private entities determined to be involved in nuclear or missile activities. Applications to export or reexport items controlled for NP or MT reasons to certain parastatal and private entities will be denied, except items intended to ensure the safety of civil aviation and safe operation of commercial passenger aircraft, which will be reviewed on a case-by-case basis; and computers, which will be reviewed with a presumption of denial. All other items subject to the EAR to these listed entities will be reviewed with a presumption of denial. Except for items controlled for NP or MT reasons, exports or reexports to listed parastatals and private entities with whom you have a preexisting business arrangement will be considered on a case-by-case basis, with a presumption of approval in cases where neither the arrangement nor the specific transaction involves nuclear or missile activities and the exports or reexports are pursuant to that arrangement. The term "business arrangement" covers the full range of business agreements, including general contracts, general terms agreements (e.g., agreements whereby the seller delivers products under purchase orders to be issued by the buyer), general business agreements, offset agreements, letter agreements that are stand-alone contracts, and letter agreements that are amendments to existing contracts or other agreements. The terms of the preexisting business arrangement policy may also apply to the longstanding continued supply of a particular item or items from the exporter to the entity even when there is no current agreement between the firms. BXA, in conjunction with other agencies, will determine eligibility under the preexisting business arrangement policy. In order to be eligible under the policy, you must provide documentation to establish such an arrangement. The documentation should be provided at the time you submit a license application to export or reexport items to any listed parastatal or private entity.

Certain Military Entities in India and Pakistan Will Be Included in Supplement No. 4 to this Part 744 (Entity List) on November 19, 1998. These entities are ineligible to receive exports or reexports of all items subject to the EAR having a classification other than EAR99 without a license. Exports and reexports of all items subject to the EAR having a classification other than EAR99 to listed military entities require a license. A license is also required if you know that the ultimate consignee or end-user is a listed military Indian or Pakistani entity, and the item is subject to the EAR having a classification other than EAR99.

License review standards for military entities. Applications to export or reexport items controlled for NP or MT reasons to listed military entities will be denied, except items intended to ensure the safety of civil aviation and safe operation of commercial passenger aircraft, which will be reviewed on a case-by-case basis; and computers, which will be reviewed with a presumption of denial. All other license applications will be reviewed with a presumption of denial.

Saving Clause. Shipments of items removed from License Exception or NLR authorizations as a result of this regulatory action that were on dock for loading, on lighter, laden aboard an exporting carrier, or en route aboard a carrier to a port of export on [DATE OF PUBLICATION -- likely November 19, 1998] pursuant to actual orders for export to that destination in India or Pakistan, may proceed to that destination under the previous License Exception or NLR authorization provisions so long as they have been exported from the United States before [4 Weeks after Date of Publication -- likely December 17, 1998]. Any such items not actually exported before midnight [4 Weeks after Date of Publication -- likely December 17, 1998], require a license in accordance with this regulation.

November 16 Revision: Initially, we divided the list of entities to be added to Supplement 4 to EAR Part 744, the Entity List, into two files for presentation on this web site. That division, however, caused confusion. Accordingly, we have taken the same names and divided them among three files. Those files are:

Government entities determined to be involved in nuclear or missile activities
Parastatal and private entities determined to be involved in nuclear or missile activities
Government entities determined to be involved in military activities

The rule that the Federal Register will publish on November 19 will set out the entire Entity List in a convenient table format. Once the Entity list is republished, you should consult the version that appears in the Federal Register.

ENTITY LISTS

CONTENTS

INDIAN GOVERNMENT ENTITIES INVOLVED IN NUCLEAR OR MISSILE ACTIVITIES

PAKISTANI GOVERNMENT ENTITIES INVOLVED IN NUCLEAR OR MISSILE ACTIVITIES

INDIAN PARASTATAL AND PRIVATE ENTITIES INVOLVED IN NUCLEAR OR MISSILE ACTIVITIES

PAKISTANI PARASTATAL AND PRIVATE ENTITIES INVOLVED IN NUCLEAR OR MISSILE ACTIVITIES

INDIAN GOVERNMENT ENTITIES INVOLVED IN CONVENTIONAL MILITARY ACTIVITIES

PAKISTANI GOVERNMENT ENTITIES INVOLVED IN CONVENTIONAL MILITARY ACTIVITIES