Exim Regulations under Govt’s Terror Scanner
The government begins to review export and import restrictions to introduce security safeguards in the wake of increasing terror network.
NEW DELHI: In the wake of increasing threat from global terror networks, the government has started a comprehensive review of export and import restrictions spelt out in a host of legislations including the Special Economic Zones (SEZ) Act to introduce security safeguards. The move aims to prevent terror groups from exploiting global commerce in high technology products, specialty chemicals and biotechnology materials.
The review is significant as it also takes into account the potential flow of state-of-the art technology from countries like the US after the proposed civil nuclear cooperation agreement.
It is necessary to introduce checks especially in the case of dual-use technologies coming into the country, particularly from its nuclear technology partners like the US, so that they are not re-exported without government knowledge.
At a meeting on August 29, the government’s advisory committee on export control of dual-use items decided to review an existing limited restriction in SEZ rules for further tightening. The very generic provision — Section 18 (4)e of the 2006 rules — prohibits export of special chemicals, organisms, equipment and technology unless they fulfil the conditions in the ‘import trade control classification of export import items’.
The ministry of commerce will work with the ministries of defence, external affairs, chemicals and fertilisers, finance, and the departments of biotechnology, atomic energy, defence production and the cabinet secretariat to see how this could be strengthened, sources told ET.
The advisory panel is set to meet this weekend for further deliberations.
The government has also decided to amend a few provisions of the Foreign Trade (Development and Regulation) Act, 1992, in line with the Weapons of Mass Destruction Act, 2005. It will also harmonise its list of items that could be exported only under special licenses with an elaborate list maintained by a Vienna-based organisation of 40 nations called the Wassenaar Arrangement.
It promotes transparency and responsibility in the transfer of technology, dual-use goods and arms. The government has also decided to impose curbs on import of certain sensitive chemicals. It will be notified soon, said the source.
According to experts, the government’s efforts now focus on special chemicals as well as technology products like sensors and other devices that help in the delivery of weapons.
The country has a good track record in non-proliferation of nuclear technology despite having cultural relations and oil purchase deals with countries that the West describe as rogue nations. Besides, the elaborate bureaucratic procedures in the country per se act as a check for any shady deals amongst private traders, said an expert.
The review is significant as it also takes into account the potential flow of state-of-the art technology from countries like the US after the proposed civil nuclear cooperation agreement.
It is necessary to introduce checks especially in the case of dual-use technologies coming into the country, particularly from its nuclear technology partners like the US, so that they are not re-exported without government knowledge.
At a meeting on August 29, the government’s advisory committee on export control of dual-use items decided to review an existing limited restriction in SEZ rules for further tightening. The very generic provision — Section 18 (4)e of the 2006 rules — prohibits export of special chemicals, organisms, equipment and technology unless they fulfil the conditions in the ‘import trade control classification of export import items’.
The ministry of commerce will work with the ministries of defence, external affairs, chemicals and fertilisers, finance, and the departments of biotechnology, atomic energy, defence production and the cabinet secretariat to see how this could be strengthened, sources told ET.
The advisory panel is set to meet this weekend for further deliberations.
ADVERTISEMENT
The government has also decided to amend a few provisions of the Foreign Trade (Development and Regulation) Act, 1992, in line with the Weapons of Mass Destruction Act, 2005. It will also harmonise its list of items that could be exported only under special licenses with an elaborate list maintained by a Vienna-based organisation of 40 nations called the Wassenaar Arrangement.
It promotes transparency and responsibility in the transfer of technology, dual-use goods and arms. The government has also decided to impose curbs on import of certain sensitive chemicals. It will be notified soon, said the source.
According to experts, the government’s efforts now focus on special chemicals as well as technology products like sensors and other devices that help in the delivery of weapons.
The country has a good track record in non-proliferation of nuclear technology despite having cultural relations and oil purchase deals with countries that the West describe as rogue nations. Besides, the elaborate bureaucratic procedures in the country per se act as a check for any shady deals amongst private traders, said an expert.
ADVERTISEMENT
The government had recently decided to subject the export of 24 products known as the Australian group chemicals to greater scrutiny. It also plans to empower customs and port officials to intercept any suspicious consignment and require the exporter to seek a licence if the importer is suspected to have terrorist links.Download
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
