The United States on Wednesday slapped punitive sanctions on an Indian company and an Indian national for alleged export of material used to manufacture chemical and biological weapons to Iraq in violation of US law regarding such sales to the Saddam Hussein regime.

State Department spokesman Richard Boucher identified the Indian company as NEC Engineers Private Ltd and the individual as Hans Raj Shiv.

Boucher said that the penalties were imposed against NEC, which he said is 'an entity originally based in India but also operating in the Middle East and Eurasia', and Raj Shiv, 'previously residing in India, but last believed to be in the Middle East' pursuant to the Chemical and Biological Weapons Control and Warfare Elimination Act of 1991.

He said the sanctions were imposed on this entity and individual 'for knowingly and materially contributing to Iraq's chemical and biological weapons program'.

"The penalties are specific to the named entity and individual," Boucher noted and emphasized "They do not extend to India or the Indian government."

"The Indian government has been conducting its own investigation into the activities of NEC and affiliated companies, has taken steps to try to prevent further proliferating exports and has arrested two principals of the company."

"Unfortunately, NEC and Shiv have shifted operations to other locations," he said.

Boucher said it was hoped that Washington's actions 'will support the steps that India's taking and will encourage other governments to take similar steps'.

Asked if he could provide any details of what these entities had shipped to Iraq, he said he was not in a position to 'tell you more from our side', but noted that "It has been widely reported in the Indian press about the Indian government's investigation of NEC and that it sent ten shipments containing titanium vessels, filters, titanium centrifugal pumps, atomized and spherical aluminum powder and titanium anodes to Iraq."

Boucher, however, said he was not in a position to say if these items had arrived in Iraq.

He also refused to say what the Iraqis could produce with the type of materials that were allegedly shipped to Baghdad by these entities. "I don't think I'm in a position to go into that at this point, but it relates to chemical and biological weapons."

The sanctions against these entities, published in the federal register, said they were imposed under the US Arms Export Control Act and includes a ban on imports into the US of items produced by NEC Engineers Private Ltd and Shiv and also prevents them from doing any business with the US government.

In July, the state department had imposed penalties on Shiv for allegedly selling chemical and germ warfare agents to Iraq and Iran under a law that prohibits such exports.

At the time, Shiv was listed, along with nine Chinese companies and individuals, as having violated the 1992 Iran-Iraq Arms Nonproliferation Act and the Chemical and Biological Weapons Control and Warfare Elimination Act of 1991.