Exports of dual-use items may be curbed

The export of dual-use items is likely to be made more stringent with the government considering an amendment in the Foreign Trade Development and Regulation Act of 1992. Dual-use items are those that can be used for both peaceful and nuclear purposes.

Officials told Business Standard an amendment to the Act was under consideration to restrict the export of dual-use technology.

"At present, the scope of the Act is limited to dual-use goods or items. We now want the Act to include under its purview the export of technology also," an official said.

The fears of nuclear proliferation and instances like the one involving a top Pakistani scientist revealing official secrets had raised concerns in some government quarters that the present Act was not expansive enough to prevent the export of 'sensitive technology', which could be used to manufacture weapons of mass destruction.

Sources said a final decision on the issue would be taken only after wide-ranging consultations with concerned ministries and through consensus.

At present, the export of dual-use technology items is restricted to the items mentioned in the Scomet (Special chemicals, Organisms, materials, equipment and technologies) list.

The export of any item under the list requires a licence from the government and a certificate from the end-user specifying the purpose for which the item will be used.

In certain cases, the government also seeks a certificate counter-signed by the government of the importing country to state that the item is meant for peaceful purposes only.

As an added precaution, before granting further licence to an exporter, a bill of entry in respect of the last licence is sought to ascertain that the item has landed the intended country.

The Scomet list includes nuclear materials, toxic chemicals, micro-organisms, fungi, parasites, viruses, aerospace materials, equipment and related technologies.