Thursday, January 24, 2008

Export-import control over dual-use chemicals may ease

NEW DELHI: Expect the proposed export-import control over dual use chemicals to be less rigorous. The government is planning to bring down the number of chemicals in the list that it drew up a couple of months ago for strict export-import control. The present thinking in the government is that legitimate trade of these commercially important chemicals should not suffer where we do not have an international obligation to restrict them.

The Ministry of External Affairs and the Ministry of Chemicals had in November agreed to subject international trade in 24 products known as the Australian group of chemicals and many other items in the same class to greater scrutiny.

The Australian group, an association of countries, has a larger list of 63 items as chemical weapons precursors that need stricter licensing. The initial move was aimed at preventing the proliferation of dual use materials from India.

Now, the take of various government departments is all these chemicals should not be subjected to rigorous licensing norms. The chemical and fertiliser department has told the commerce ministry that only five chemicals from the initial list should be subjected to intense regulation. There is no legally binding international obligation on the part of the government to regulate all the chemicals, the department has argued.

While India is not a member of this association of nations called the Australia group, America is. The chemical industry, which is not in favour of any controls, will be asked to support their demand with data, government sources said.

The Ministry of External Affairs has, in the meantime, decided to move a proposal to the director general of foreign trade to introduce a system of intercepting consignments marked to certain customers. The plan is to draw up a list of ‘end users of concern’.

This will be based on global trends in proliferation of weapons of mass destruction, information from other countries and UN Security Council resolutions. The government will authorise the Customs department through a notification to stop any export consignment to these business houses.

Once intercepted, the exporter would be told that he should seek a licence to go ahead with the export. The move has implications for the export of chemicals and allied products, biotechnology materials and products of the aerospace industry.

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