Washington: The US has put in place a mechanism that would enable select companies in India and China to import sensitive technology from America, without requiring to have import licenses for individual articles.
“We have put in place an innovative mechanism, Validated End User Programme, or VEU. Through this programme, American companies will find it easier to export certain US products to customers that meet the security standards of a US government inter-agency review,” US Commerce Secretary Carlos Gutierrez has said.
“To be approved, companies will need to have a strong export compliance programme and a track record of using US high technology responsibly,” he said at the Bureau of Industry and Security Conference on Export Controls and Policy.
The Programme was created earlier this year, and eligibility has been extended to India and China. Earlier this month, the US had announced the approval of an initial group of five companies in China which have met the security requirements for this programme, he said.
“This important step advances our strong desire to compete in these fast-growing markets and the need to maintain our national security interests” he added.
Last month, the US Commerce department announced a new programme to increase Secure High-Tech Trade with India.
“The VEU programme for India will make transactions easier, faster and more reliable with customers that meet the security requirements of an inter agency review process, and help US exporters remain competitive in one of the fastest- growing markets for American companies,” the Department of Commerce had said in a statement.
Under Secretary of Commerce for Industry and Security Mario Mancuso said the VEU for India has to be seen in the context of the impressive and progressively improving economic engagement between India and the United States over the last several years.
“In 1999, roughly a quarter of US exports to India required a licence. Today, that figure is around 1%, ” he said.