A licensing decision and a missing document create different obstacles to a transaction. The Bureau of Industry and Security's January 19 publications address one through an India approval policy and the other through scheduled Hong Kong documentation conditions. Comparing the mechanisms is useful; ranking the two destinations' economic openness from these rules would go beyond the evidence. [2017-00439][2017-00446]

India's policy generally favors approval of applications for items controlled only for National Security or Regional Stability reasons, including 600-series items. The specified uses and routes include civil or military use in India, ultimate Indian-government use, Country Group A:5 reexports or return to the United States. Nuclear, missile and chemical or biological weapons activities remain excluded. Favorable consideration is not an exemption from needing authorization. [2017-00439][2017-00446]

Hong Kong's scheduled April 19 requirement concerns BIS-license and license-exception shipments with National Security, Missile Technology, Nuclear Nonproliferation column 1, or Chemical and Biological Weapons controls. A covered shipment into Hong Kong needs a covering import-license copy valid at shipment or a government no-license statement. A covered reexport from Hong Kong needs the corresponding export document or statement. [2017-00439][2017-00446]

Public no-license statements may be reused while accurate, a concrete feature of the documentary mechanism rather than proof of lower costs. India's rule was effective January 19; Hong Kong's conditions remained prospective. Both documents come from BIS. Neither measures transactions gained, delays reduced or competition improved, so any claim about a commercial response would require evidence beyond the regulatory design. [2017-00439][2017-00446]

Source documents

  1. Amendments to the Export Administration Regulations Implementing an Additional Phase of India-U.S. Export Control Cooperationhttps://www.govinfo.gov/content/pkg/FR-2017-01-19/html/2017-00439.htm
  2. Support Document Requirements With Respect to Hong Konghttps://www.govinfo.gov/content/pkg/FR-2017-01-19/html/2017-00446.htm