Government issues new export regulations for defence firms

The Indian Government has recently eased several bureaucratic hurdles in export regulations and done away with a provision that demanded multiple assurances by foreign governments even for the sale of components and parts by Indian entities. The new set of rules for exports for both the private and public sector includes:

  •  Removal of the ‘ultimate end user’ certificate clause for parts and components of military equipments. Indian players will now need certifications only from the immediate buyer of the component and these measures would help make Indian suppliers more competitive. In the past, all parts supplied abroad needed assurances from multiple foreign vendors.
  •  The ministry has also mandated a definite time line of two to four weeks for the issuance of no objections certificates for defence exports.
  •  The defence ministry has opened up sectors like armoured equipment, weapon control systems, countermeasure equipment, engines, underwater detection devices and military software for export purpose. All these systems will need certification from only the immediate buyer, not the ultimate user.

Source: http://economictimes.indiatimes.com/articleshow/48181601.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

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