QUESTIONS AND ANSWERS
Q: Other than the ISRO Headquarters, will any other Indian entities be removed from the Department of Commerce Entity List?
A: Only ISRO Headquarters in Bangalore has been removed from the Entity List. The following subordinate entities will remain on the Entity List:
● ISRO Telemetry, Tracking and Command Network (ISTRAC);
● ISRO Inertial Systems Unit (IISU), Thiruvananthapuram;
● Liquid Propulsion Systems Center;
● Solid Propellant Space Booster Plant (SPROB);
● Space Applications Center (SAC), Ahmadabad;
● Sriharikota Space Center (SHAR); and
● Vikram Sarabhai Space Center (VSSC), Thiruvananthapuram.
Some ISRO subordinate entities, such as the ISRO Satellite Center, are not on the Entity List.
Q: What is the new export license application review policy for the ISRO subordinate entities listed on the Entity List?
A: It is now permissible to export many U.S.-origin items to ISRO subordinate entities listed on the Entity List without a license. Items classified as EAR99 or having a classification where the third through fifth digits of the Export Commodity Classification Number (ECCN) are “999," e.g. XX999, will no longer require a license for export or reexport to these listed entities, with the limited exception noted below. Items otherwise listed on the Commerce Control List will continue to require a license for export or reexport to these entities.
Also, U.S. end-use/end-user controls, known as “catch-all controls,” will remain in effect for all exports to these subordinate entities. For example:
● A license will still be required for any EAR99/XX999 item if the exporter knows, has reason to know, or has been informed by the Department of Commerce that the item will be used in a prohibited missile activity.
● Specifically, an exporter will still be required to submit a license application for items intended for use in India’s space launch vehicle (SLV) programs.
Q: What are EAR99/XX999 items?
A: EAR99 items are items subject to the export licensing jurisdiction of the Department of Commerce, but not elsewhere specified on the Commerce Control List (CCL). EAR99 items include many high-technology commodities used for commercial space programs.
XX999 items are a subset of formerly EAR99 items that were deemed to be potentially useful for nuclear proliferation activities in North Korea. These items were added to the CCL as separate categories (designated with Export Control Classification Numbers (ECCNs) ending in 999) and are controlled for anti-terrorism (AT) reasons. XX999 items do not pose a significant risk of diversion or material contribution concern for missile programs of concern.
Q: If I want to export an EAR99 and/or XX999 item(s) to a listed subordinate entity of the Indian Space Research Organization (ISRO), do I need to submit a license application?
A: The removal of EAR99/XX999 license requirements from the subordinate entities of ISRO listed on the Entity List eliminates the license requirement for exports and reexports of EAR99/XX999 items to those entities.
It should be noted, however, that the removal of EAR99/XX999 license requirements for these entities does not relieve exporters of their obligation to know their customers. Under Part 744 of the EAR, an export license is required even when it would not otherwise be necessary, if an exporter knows, has reason to know, or is otherwise informed by BIS that the item will be used in activities related to nuclear, chemical, or biological weapons, or missile delivery systems as described in part 744.
Q: Prior to the removal of EAR99/XX999 license requirements for the ISRO subordinate entities on the Entity List, BIS denied a license application for EAR99 items intended for export to one of these entities. Now that no license is required for those items, can I export the same items without a license?
A: An export license is no longer required for the export of EAR99/XX999 items to the ISRO subordinate entities listed on the Entity list, even where a previous license application for the same item was denied. However, as explained above, if you know, have reason to know, or are informed that the item you now intend to export to the listed entity will be used in activities related to nuclear, chemical or biological weapons, or missile delivery systems, as described in part 744 of the EAR, a license continues to be required.
For example, EAR99/XX999 items intended for use in ISRO’s space launch vehicle programs still require an export license.
Q: How will BIS process my license application if I submit a license to export an EAR99 and/or XX999 item to an ISRO subordinate entity?
A: Exporters should only submit a license application for the export of EAR99 and/or XX999 items to an ISRO subordinate entity if they know, have reason to know, or have been informed by the Department of Commerce that the item will be used in a prohibited nuclear, missile, or chemical or biological weapons activity. When such applications are submitted, BIS will review them under the license review polices set forth in part 744 of the EAR. For these exports, ISRO subordinate entities will be treated the same as other end users not listed on the Entity List.
Q: What is “balance of plant”?
A: “Balance of Plant” (BOP) refers to the part of a nuclear power plant used for power generation (e.g., turbines, controllers, or power distribution) as distinguished from the nuclear reactor.
Major balance of plant equipment includes, but is not limited to, items such as:
● High pressure turbines;
● Condensate pumps and motors;
● Main generators; and
Other examples of items now considered under a presumption of approval that could be used for BOP end-uses include:
● Back-up generators;
● Fire detection and suppression systems;
● Desktop computers;
● Radiation detection equipment; and
● Electronic test equipment.
Q. The September 22, 2003 Federal Register Notice states that the “presumption of approval” for items for the balance of plant portions of Indian safeguarded nuclear facilities applies to EAR99 items not controlled for Nuclear Proliferation reasons. What policy applies to non-NSG controlled items going to the balance of plant portions of Indian safeguarded nuclear facilities?
The license review policy for these transactions was misprinted. The correct licensing policy is “presumption of approval” for all items not controlled multilaterally for nuclear proliferation reasons (NP1) for use in the “balance of plant” (non-reactor related end uses) activities at nuclear facilities subject to International Atomic Energy Agency Safeguards. As such, license applications for exports of NP2-controlled items, which are items unilaterally controlled by the United States, to the “balance of plant” portions of safeguarded Indian facilities will be accorded a “presumption of approval.”
A second Federal Register notice clarifying this policy was published on Wednesday, September 29, 2004.
Q: Do the changes to the Entity List affect export license review policy for the subordinate entities of the Defense Research and Development Organization (DRDO)?
A: No. The changes announced in the Federal Register notice that remove ISRO Headquarters from the Entity List and revise license review policies for certain Indian entities do not affect license review policy for the listed DRDO subordinates. An export license continues to be required for all items listed on the Commerce Control List (CCL), including EAR99 and XX999 items. EAR99 items will be considered with a presumption of approval.