The announcement highlighted the fact that a new ‘Consolidated List’ (The document’s full title is the ‘Consolidated List of Strategic Military and Dual-Use Items that require Export Authorisation’) will be issued in due course to reflect the changes that will be valid from next month.

The current version of the Strategic List was issued in August 2023, meaning it’s a relatively short period until the list is updated further. The Consolidated List provides the reference point for exporters; although the title suggests Military and Dual-Use sections, other lists form the complete consolidated document. These include the Non-Military Firearms List, the Human Rights List, the UK Security and Human Rights List, and the UK Radioactive Source List.

The Dual-Use List is split into two separate Annexes. Annex I is the list where most items can be found, but the separate Annex IV, as the list confirms, ‘Annex IV is a sub-set of Annex I in which entries do not always cover the complete description of the item and related notes in Annex I. Only Annex I provides the complete description of the items.’ Therefore, cross-referencing the two Annexes may be required. In Annex I, look for a classification that states ‘[IV]’ as the reference to check Annex IV.

The Consolidated List also contains a section titled the UK Dual-Use List. The updated regulations contain three new entries: PL9013, PL9014, and PL9015. The March 12^th update confirmed that ‘The amendments to Schedule 3 of the 2008 Order introduce new controls on specific emerging technologies, which the UK, along with several like-minded countries, has committed to implement, to strengthen the national controls.’

This article focuses on PL9014, which highlights controls on Quantum Computers and related products, together with technology and software being controlled, which is required for the ‘development’ or ‘use’ of equipment.

Dual-Use Export Control classification requires a competent authority to classify the items’ inherent capability against the criteria detailed on the Consolidated List. This requirement is also relevant for PL9014, which has specifications for quantum computers, physical qubits, and other technical criteria to review.

Quantum computing (with advanced materials, goods, and technology) is already mentioned in UK Export Control legislation relating to UK Sanctions on Russia, which are prohibited unless approved by an ECJU licence. The European Union and the United States have implemented sanctions on Quantum Computing, supporting the ‘like-minded countries’ statement.

Categories 4 and 5 of the Dual-Use List will be relevant to exporters of computers and IT equipment. The Export Control (Amendment) Regulations 2024 advises that Council Regulation (EC) No 428/2009 is assimilated under the Retained EU Law (Revocation and Reform) Act 2023 and will be referred to as the ‘assimilated Dual-Use regulation.’

The assimilated Dual-Use list will modify decontrol relating to Note 2.e for commercial Cryptography Applications in Entry 5A002.a. To review this change in more detail, we would need to check against the relevant section in the Consolidated List and cross-check against the updates detailed in Export Control (Amendment) Regulations 2024, which is Statutory Instrument 2024 No.346.

We recommend downloading and retaining the current version of the UK Strategic List and using this to check the updates against the new version when it is published.

Let us look at one or two areas of the legislation relating to 5A002.a that is subject to updates.

The updated controls will omit ‘where that cryptographic capability is usable, has been activated, or can be activated by any means other than secure ‘cryptographic activation’ in entry 5A002.a. This will mean the updated section will read as follows: ‘Designed or modified to use ‘cryptography for data confidentiality’ having a described security algorithm’ as follows.’

The Technical Notes are under the duplicate entry, 5A002.a in Paragraph 1 omits ‘and performs any cryptographic function other than any of the following:’ This will mean the updated section will read as follows: ‘Technical Notes: 1 For the purposes of 5A002.a., 'cryptography for data confidentiality' means ‘cryptography’ that employs digital techniques.’

The section which details the list of items that 5A002.a does not control as items or specially designed components; therefore, it has also been updated, detailed as follows:  

For paragraph g. substitute with the following:

“g. Wireless ‘personal area network’ functionality implementing only published or commercial cryptographic standards

h. Cryptographic operations specially designed for and limited to banking use or money transactions, including the collection and settlement of fares or credit functions

i. Key management in support of and limited to functions and capabilities described in paragraphs a. to h. above; or

j. Cryptographic functions or capabilities that have not been activated or enabled and can only be activated or enabled by secure ‘cryptographic activation.’

N.B. For 'cryptographic activation token' items, see 5A002.b., 5D002.b. and 5E002.b.”

For Note 2.c to entry 5A002.a substitute with the following:

“c. Portable or mobile radio telephones designed for civil use, other than satellite telephones, that are not capable of any of the following:

1. Transmitting encrypted data directly to another radiotelephone or equipment (other than Radio Access Network (RAN) equipment) or
2. Passing encrypted data through RAN equipment (e.g., Radio Network Controller (RNC) or Base Station Controller (BSC))”

This article doesn’t provide a complete review of the updates. Still, it has been produced to highlight the changes to the controlled items, which will be reflected in an updated version of the consolidated list of strategic military and dual-use items that require export authorisation.

The new legislation updates the Consolidated List in readiness for the updated document to be published. Export Control compliance in the UK continues to evolve and change with the creation of OTSI, the implementation of the Office of Trade Sanctions, and the Customs Declarations Service for Exports, which will mean that CHIEF LIC99 no longer applies.  

If you are interested in exploring this topic further, you might find it worthwhile to consider the training courses and live clinics offered by Strong & Herd LLP: