Export Compliance Obligations for Transactions between U.S. Companies and India to be Reduced

In the near future, trade between the U.S. and India will likely be simplified. Late last week, the Wassenaar Arrangement admitted India as a member (India’s membership will be formalized shortly), and the Australia Group is expected to admit India in the coming months. Both organizations are Multilateral Export Control Regimes that inform U.S. export regulations, including the Export Administration Regulations. After the Commerce Department publishes a notice of India’s membership in these organizations in the Federal Register, the changes will likely reduce the exports for which a specific authorization will be required, and will increase the availability of certain license exceptions under the EAR, including Additional Permissive Reexports (“APR”).