Nasscom's Comments on the Draft Approach Paper on ITT Control Mechanism

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Nasscom's Comments on the Draft Approach Paper on ITT Control Mechanism

Devika Agarwal

@DevikaAgarwal

June 13, 2019

Public Policy

1042

Recently, MeitY circulated a draft Approach Paper on Intangible Technology Transfer (ITT) Control Mechanism. Nasscom submitted its comments on the draft Approach Paper to MeitY based on the inputs received from its members.

In its submission, Nasscom has stated that the draft Approach Paper has generally adopted the international approach towards regulating export of dual use technology. The recommendations made by Nasscom are geared at further aligning the export control laws and regulations in India with the multilateral export control regimes and global best practices.

Nasscom made the following recommendations:

1. ‘Bulk licences’ for multiple value chains should be introduced.

2. Individual licences should contain authorisation for all transactions related to a single supply chain.

3. ‘Foreign technology licence’ for export of foreign technology should be introduced, which should not require submission of EUC by the exporter.

4. The de minimis approach should be followed for export controls.

5. The export licensing norms should be relaxed for companies with strong internal compliance programme (ICP).

6. There should be licence exemptions based on mass market criteria and validated end user (VEU).

7. The list of permitted countries under the draft Open General Export Licence (OGEL) should be widened to include countries which have implemented export controls in their national laws.

8. Liability in cases of transfer of technology (ToT) involving multiple parties should be specified.

9. Post export monitoring measures should be specified taking into account challenges related to extra-territorial jurisdiction.

10. The SCOMET List classification should be India specific and SCOMET List definitions should be harmonised with the WA List.

11. Additional obligations on the industry with respect to the proposed export control management system (ECMS) should be clarified.

12. The government should focus on outreach and ITT awareness, especially for SMEs.

13. There should be strict export control compliance obligations on academic institutes and research organisations, including implementation of ICP, reporting and screening.

14. Additional VPN requirement, if any, should be clarified.

15. Additional visa vetting requirements, if any, should be clarified.

The full submission is enclosed.

MeitY intangible technology transfer ITT export controls

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Devika Agarwal