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Uncertainty over sanctions hits US exports to India and Pak

Exports to India and Pakistan are being delayed by US customs because of uncertainty over the commerce department's regulations in the wake of their nuclear tests, reports the Journal of Commerce, quoting industry sources.

The daily quoted export consultant Paul Divecchio as having said that the holdups apparently stem from a lack of co-ordination between customs and commerce departments over recent guidelines for implementing sanctions on exports of dual-use goods to the two countries.

While the commerce department has issued interim guidelines for export licensing, customs agents have been taking extra precautions with shipments to India and Pakistan, resulting in delays at the airport.

It says exports have reportedly been stopped at JFK International Airport in New York and delayed in Boston and Los Angeles for questions. The items have included high-tech goods as well as industrial products like pumps and valves.

This suggests that the sanctions are affecting exports that may go beyond licensing rules.

The daily says the problems are the result of a commerce department statement last month that officials plan to publish an expanded list of Indian and Pakistani government and private entities that are engaged in nuclear and missile entities. It also, most likely, will deny licences for sale to the military, except for common use items.

In the meantime, customs has started holding up exports to government agencies that the commerce department has cleared, Divecchio added.

Now, customs has reportedly been scrutinising shipments that are yet to appear on the commerce department list. The United States has so far included only seven names in its list for India and Pakistan.

UNI