FATF Report: Dual-Use Cargo Seized by India

22 Jun 2025 GS 2 International Relations
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  1. Background of Seizure:

    • In February 2020, Indian Customs authorities seized a Pakistan-bound merchant vessel ‘Da Cui Yun’ at Kandla port, Gujarat.

    • The cargo contained autoclaves, a dual-use item (civilian and military applications).

  2. Use of Autoclaves:

    • Used in high-energy materials processing.

    • Crucial for insulation and chemical coating of missile motors.

  3. FATF Findings:

    • The shipment was misdeclared in documents.

    • The importer was linked to Pakistan’s National Development Complex (NDC) — a key organisation in Pakistan’s long-range ballistic missile programme.

  4. International Concern:

    • The item is listed in MTCR dual-use export control lists.

    • Export without clearance violates international non-proliferation norms.

  5. Broader FATF Warning:

    • Only 16% of countries show high effectiveness in countering Weapons of Mass Destruction (WMD) proliferation financing.

    • Urges better technical compliance and monitoring in public and private sectors.

MTCR: Missile Technology Control Regime

What is MTCR?

  • A voluntary export control regime established in 1987.

  • Aims to prevent the proliferation of missile and unmanned aerial vehicle technology capable of carrying a 500 kg payload for at least 300 km (i.e., WMD delivery systems).

  • Coordinates national export licensing efforts for sensitive items.

Membership:

  • Total Members: 35 countries (as of 2024)

  • Includes: USA, Russia, France, UK, Germany, Japan, South Korea, Australia, Brazil, etc.

India and MTCR:

  • India joined MTCR in June 2016.

  • Entry was facilitated with support from key Western powers, especially the USA.

Benefits for India:

  • Access to high-end missile technology.

  • Can export its own missile systems like BrahMos to other MTCR members.

  • Boosts India’s profile as a responsible nuclear power.

Pakistan and MTCR:

  • Pakistan is not a member of MTCR.

  • Faces export restrictions from MTCR members.

  • Its missile development is under international scrutiny, especially for links to China and North Korea.

Implications of Joining MTCR:

  1. Positive:

    • Access to dual-use and high-end missile tech.

    • Participation in norm-setting for global non-proliferation.

    • Opens path for entry into other export control regimes (NSG, Wassenaar, Australia Group).

  2. Obligations:

    • Must implement strict export controls.

    • Cannot sell or transfer sensitive missile technologies to non-compliant nations.



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