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October 02, 2007 

BIS Adds India as Eligible Destination for VEU Program

The Bureau of Industry and Security (BIS) published a final rule in the Federal Register today adding India as an eligible destination for U.S. exports, reexports and transfers under the Authorization Validated End-User (VEU) system. As a result, U.S. companies will be able to export certain controlled commodities and technologies without a license to specific end-users in India, once the end-user is “validated” by the agency. The Authorization VEU may be used for commodity, software or technology exports that require a license, except those that are controlled for missile technology or crime control reasons.

India is the second country named as eligible under the VEU system. On June 19, 2007, BIS rolled out the new authorization scheme for “validated-end users” (VEUs) in eligible country destinations. Concurrently, the BIS designated China as the first eligible country. Although BIS has not announced any Authorized VEUs to date, it intends to do so in the near future.

In order to qualify for Authorization VEU status, an applicant must submit an application to BIS, which includes detailed
information about the prospective validated end-user. The specific information required is set forth in Supplement Number 8 to Part 748 of the Export Administration Regulations.

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