UK Export Control Organisation (ECO) Updates

Posted on: 27/04/2012

The UK Export Control Organisation has issued 3 new notices to Exporters in February 2012

A.  Amendment to OGEL (International Non-Proliferation Regime Decontrols: Dual-Use Items)

B.  Announcement of Suspension Mechanism for processing of licence applications in countries experiencing a sharp deterioration in security or stability

C. UK Response to the EU Green Paper on Export Licensing conditions across the member states

A. 10th February 2012: Notice to Exporters 2012/10 - Amendment to Open General Export Licence (International Non-Proliferation Regime Decontrols: Dual-Use Items)

The Export Control Organisation, part of the Department for Business, Innovation & Skills (BIS) has amended the Open General Export Licence (International Non-Proliferation Regime Decontrols: Dual-Use Items).

1.1       This OGEL provides licensing coverage for those items that have been decontrolled by international regimes and for which EU legislation has not yet been updated. This revised OGEL takes account of additional agreements by international regimes to decontrol certain items in 2011.

1.2 This licence also permits the export of certain components for mass market items containing cryptography, which although have yet to be decontrolled by international regimes, will be very useful for some companies.

Details of licence amendments

2 The specific amendments to the licence include:

• Plasma enhanced Chemical Vapour Deposition (CVD) equipment often used in the manufacture of semiconductors.
• Certain production equipment for fibrous and filamentary materials or products, for example carbon fibre.
• Body armour designed to provide protection from knife, spike, needle or blunt trauma only.

Republishing of amended licence

3. The amended licence is dated 9 February 2012 and will enter into force on 16 February 2012.

B. Notice to Exporters 2012/09 - BIS Secretary of State announces Suspension Mechanism for processing of licence applications in countries experiencing a sharp deterioration in security or stability

Overview

1.    In light of events in the Middle East and North Africa (Arab Spring), the Foreign Secretary led a review of defence and security export policy.  The Foreign Secretary announced the findings of the reviews on 13th October 2011 which concluded there were no fundamental flaws with the UK Strategic Export Licensing system.  There were, however, a few areas identified where the system required further strengthening.  Business Secretary Vince Cable’s announcement on 7th February included a package of proposals developed by FCO and BIS to further strengthen the Export Licensing system including:

1.1       A mechanism to allow the immediate suspension of licence applications being processed to countries which experience a sharp deterioration in security or stability;  the suspension mechanism will not cover extant licences. 

1.2 A commitment to continue to work to improve public information on defence & security exports including increased transparency of export licensing decisions

Background

2. The new suspension mechanism, in place as of 07 February 2012, will enable the Export Control Organisation to suspend (at short notice) the processing of licence applications to countries experiencing a sharp deterioration in security or stability. 

In addition to these proposals, the Business BIS Secretary also announced a number of proposals to improve the transparency about the workings of the export licensing system:

2.1       A provision will be inserted into all open export licences requiring the exporter to report periodically on transactions undertaken under these licences.  This information will be made publically available.

2.2       The Export Control Organisation will consider making public certain additional information contained in licence applications than is currently disclosed in the Government’s Annual and Quarterly reports.  We will explore ways of making this additional information public while protecting any sensitive material

2.3       The appointment of an independent person to scrutinise the Export Control Organisation’s licensing process.  The role of this independent auditor would be to confirm that the process undertaken as part of the decision making process has been followed

The full text of the Ministerial Statement can be found HERE

C. Notice to Exporters 2012/08 - UK Government publishes formal response to the European Commission Green Paper on the dual-use export control system .

The Green Paper on the dual-use export control system of the European Union: ensuring security and competitiveness in a changing world was published by the European Commission on 30 June 2011 as a public consultation exercise.

The Green Paper can be downloaded from: http://trade.ec.europa.eu/doclib/docs/2011/june/tradoc_148020.pdf

The aims of this consultation process are to gather views on:

• the detailed provisions of the current dual-use export control framework in order to prepare the review of the system
• the progressive reform of the EU dual-use export control system in order to adapt it to the rapidly changing circumstances of the modern world.

The Green Paper includes a broad summary of export controls (Part 1) and details of the current EU dual-use export control system (as set out in Council Regulation No 428/2009) (Part 2). Part 3 seeks to start a debate on the possible evolution of EU dual-use controls.     Read the full RESPONSE HERE

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