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India becomes first South Asian country to get access to America's cutting-edge technology
In 2016, the US had recognised India as a major defence partner - a move which paved the way for country's STA-1 status. Both the countries had reached an understanding under which India would receive license-free access to a wide range of dual-use technologies.
The United States on Monday designated India as a Strategic Trade Authorization-1 (STA-1) country - a status that will allow the country to buy highly advanced and sensitive technologies from America. With such coveted designation, India will now be at par with the United States' closest allies and partners such as NATO.
In a statement, US Commerce Secretary Wilbur Ross said that this new designation reflects India's membership in three of the four multilateral export control regimes, as well the development of its national export control system.
"US companies will be able to more efficiently export a much wider range of products to Indian high technology and military customers. India's new status will benefit US manufacturers while continuing to protect its national security," he added.
STA Tier 1 treatment will expand the scope of exports subject to the Export Administration Regulations (EAR) that can be made to India without individual licenses. This regulatory change will enhance the bilateral defence trade relationship and result in a greater volume of US exports to India.
Currently there are 36 countries on STA-1 list. India is the only South Asian country to be on the list. Other Asian countries designated as STA-1 are Japan and South Korea.
According to Ross, STA-1 provides India greater supply chain efficiency, both for defence and for other high-tech products, that will increase activity with US systems, the interoperability of the systems, and will reduce time and resources needed to get licensing approved.
"We calculate that it will be a competitive advantage for the US, in terms of supplying those kinds of products to India. It looks as though over the last seven years, some USD 9.7 billion of products would have been affected, so it's a meaningful-sized number. And probably, it'll be much more than that because a lot of things they knew wouldn't be exportable, they didn't order from us," the US Commerce Secretary said.
In 2016, the US had recognised India as a major defence partner - a move which paved the way for India's STA-1 status. Both the countries had issued a joint statement saying, "Noting that the US-India defence relationship can be an anchor of stability and given the increasingly strengthened cooperation in defence, the US hereby recognises India as a Major Defence Partner."
Both the countries had reached an understanding under which India would receive license-free access to a wide range of dual-use technologies in conjunction with steps that India has committed to take to advance its export control objectives.
STA-1 designation authorises the export, re-export and transfer (in-country) of specified items on the Commerce Control List to destinations posing a low risk of unauthorised or impermissible uses.
Reacting to US' move, Indian Ambassador to the US Navtej Singh Sarna said: "It is a sign of trust not only in the relationship but also on India's capabilities an economy and as security partner, because it also presupposes that India has the multilateral export control regime in place, which would allow the transfer of more sensitive defence technologies and dual use technologies to India and without the risk of any proliferation."
US Commerce Secretary Ross yesterday said that India has partnered with the United States to improve its own export control regimes and has met most of the export control rules which the US thinks is useful.
https://www.businesstoday.in/curren...ica-cutting-edge-technology/story/280825.html
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License Exception Strategic Trade Authorization (STA)
A part of the ongoing Export Control Reform is the license exception Strategic Trade Authorization (STA). This type of U.S. Government authorization allows a controlled item to be exported under defined conditions without a transaction-specific license. The defined conditions for any license exception allow for an audit trail to ensure the U.S. Government’s ability to enforce the controls. Eligibility to ship under a license exception is not a de-control.
The STA permits the export of a defined set of items on the Commerce Control List to Allies and certain other friendly countries without a specific license. These items include certain dual-use items and certain less significant munitions items, predominantly parts and components. The STA Imposes enhanced compliance requirements by requiring foreign importers to certify in advance of receipt of STA-eligible items that they will abide by U.S. export control regulations, including the need to obtain a U.S. license to export or re-export outside of STA-eligible countries.
License Exception STA Decision Tool
The U.S. Department of Commerce, Bureau of Industry and Security (BIS) offers a tool to users of License Exception STA to help them determine if they are eligible to use and will be in compliance with License Exception STA. This tool serves as a checklist to identify and verify the key eligibility and compliance requirements of the license exception.
The STA exception is only relevant to exports, reexports, and transfers for which a license is required under the EAR. Thus, if the EAR does not impose an obligation to apply for and receive a license before exporting, reexporting, or transferring an item subject to the EAR, STA is not relevant to the transaction and this tool is not relevant to you.
By answering the questions on the site, Exporters will be able to determine whether they are eligible. Exporters should be familiar with certain terms in order to properly answer the questions. If you do not recognize or understand a term, click on it under the "Key Terms" section for its definition. If you need further clarification, please refer to the full Export Administration Regulations (EAR).
If your answers are consistent with the provisions of STA, you will continue to proceed through the tool. If one of your answers is not consistent with STA, the tool will prompt you to review the requirements of the EAR pertaining to license exception STA. If you are unable to answer a question, please review the regulations pertaining to license exception STA under § 740.20 of the EAR. Upon completing this tool, you will be able to print or review a summary of all of your answers.
This tool is for educational use to assist exporters in determining License Exception STA eligibility. Using this tool does not guarantee eligibility. It is important for all exporters to review the requirements of the EAR, specifically § 740.20.
http://www.customsinfo.com/industry-blog/license-exception-strategic-trade-authorization-sta
In 2016, the US had recognised India as a major defence partner - a move which paved the way for country's STA-1 status. Both the countries had reached an understanding under which India would receive license-free access to a wide range of dual-use technologies.
The United States on Monday designated India as a Strategic Trade Authorization-1 (STA-1) country - a status that will allow the country to buy highly advanced and sensitive technologies from America. With such coveted designation, India will now be at par with the United States' closest allies and partners such as NATO.
In a statement, US Commerce Secretary Wilbur Ross said that this new designation reflects India's membership in three of the four multilateral export control regimes, as well the development of its national export control system.
"US companies will be able to more efficiently export a much wider range of products to Indian high technology and military customers. India's new status will benefit US manufacturers while continuing to protect its national security," he added.
STA Tier 1 treatment will expand the scope of exports subject to the Export Administration Regulations (EAR) that can be made to India without individual licenses. This regulatory change will enhance the bilateral defence trade relationship and result in a greater volume of US exports to India.
Currently there are 36 countries on STA-1 list. India is the only South Asian country to be on the list. Other Asian countries designated as STA-1 are Japan and South Korea.
According to Ross, STA-1 provides India greater supply chain efficiency, both for defence and for other high-tech products, that will increase activity with US systems, the interoperability of the systems, and will reduce time and resources needed to get licensing approved.
"We calculate that it will be a competitive advantage for the US, in terms of supplying those kinds of products to India. It looks as though over the last seven years, some USD 9.7 billion of products would have been affected, so it's a meaningful-sized number. And probably, it'll be much more than that because a lot of things they knew wouldn't be exportable, they didn't order from us," the US Commerce Secretary said.
In 2016, the US had recognised India as a major defence partner - a move which paved the way for India's STA-1 status. Both the countries had issued a joint statement saying, "Noting that the US-India defence relationship can be an anchor of stability and given the increasingly strengthened cooperation in defence, the US hereby recognises India as a Major Defence Partner."
Both the countries had reached an understanding under which India would receive license-free access to a wide range of dual-use technologies in conjunction with steps that India has committed to take to advance its export control objectives.
STA-1 designation authorises the export, re-export and transfer (in-country) of specified items on the Commerce Control List to destinations posing a low risk of unauthorised or impermissible uses.
Reacting to US' move, Indian Ambassador to the US Navtej Singh Sarna said: "It is a sign of trust not only in the relationship but also on India's capabilities an economy and as security partner, because it also presupposes that India has the multilateral export control regime in place, which would allow the transfer of more sensitive defence technologies and dual use technologies to India and without the risk of any proliferation."
US Commerce Secretary Ross yesterday said that India has partnered with the United States to improve its own export control regimes and has met most of the export control rules which the US thinks is useful.
https://www.businesstoday.in/curren...ica-cutting-edge-technology/story/280825.html
-------------------------------------------------------------------------------------------------------
License Exception Strategic Trade Authorization (STA)
A part of the ongoing Export Control Reform is the license exception Strategic Trade Authorization (STA). This type of U.S. Government authorization allows a controlled item to be exported under defined conditions without a transaction-specific license. The defined conditions for any license exception allow for an audit trail to ensure the U.S. Government’s ability to enforce the controls. Eligibility to ship under a license exception is not a de-control.
The STA permits the export of a defined set of items on the Commerce Control List to Allies and certain other friendly countries without a specific license. These items include certain dual-use items and certain less significant munitions items, predominantly parts and components. The STA Imposes enhanced compliance requirements by requiring foreign importers to certify in advance of receipt of STA-eligible items that they will abide by U.S. export control regulations, including the need to obtain a U.S. license to export or re-export outside of STA-eligible countries.
License Exception STA Decision Tool
The U.S. Department of Commerce, Bureau of Industry and Security (BIS) offers a tool to users of License Exception STA to help them determine if they are eligible to use and will be in compliance with License Exception STA. This tool serves as a checklist to identify and verify the key eligibility and compliance requirements of the license exception.
The STA exception is only relevant to exports, reexports, and transfers for which a license is required under the EAR. Thus, if the EAR does not impose an obligation to apply for and receive a license before exporting, reexporting, or transferring an item subject to the EAR, STA is not relevant to the transaction and this tool is not relevant to you.
By answering the questions on the site, Exporters will be able to determine whether they are eligible. Exporters should be familiar with certain terms in order to properly answer the questions. If you do not recognize or understand a term, click on it under the "Key Terms" section for its definition. If you need further clarification, please refer to the full Export Administration Regulations (EAR).
If your answers are consistent with the provisions of STA, you will continue to proceed through the tool. If one of your answers is not consistent with STA, the tool will prompt you to review the requirements of the EAR pertaining to license exception STA. If you are unable to answer a question, please review the regulations pertaining to license exception STA under § 740.20 of the EAR. Upon completing this tool, you will be able to print or review a summary of all of your answers.
This tool is for educational use to assist exporters in determining License Exception STA eligibility. Using this tool does not guarantee eligibility. It is important for all exporters to review the requirements of the EAR, specifically § 740.20.
http://www.customsinfo.com/industry-blog/license-exception-strategic-trade-authorization-sta
