Annex A
SUMMARY OF
GOODS AND
TECHNOLOGY CONTROLLED
FOR STRATEGIC
REASONS
Goods currently subject to control for strategic
reasons are as follows:
"Military list"
Military, security and para-military goods and
arms, ammunition and related material entered in Part III of Schedule
1 (known as the "Military list") to the Export of Goods
(Control) Order (EG(C)O) 1994 are subject to control. In addition,
certain explosive-related goods and certain vehicles are controlled
under groups 2 and 3 of Part I of Schedule 1 to the Order. This
Order is made under the Import, Export & Customs Powers (Defence)
Act 1939 and amended from time to time in response to policy or
technological developments. The UK controls the export of these
goods to all destinations in line with its participation in international
control regimes, including the Wassenaar Arrangement. The UK also
imposes national controls on the export of certain other military
and paramilitary goods.
Dual-use goods
Dual-use goods listed in Council Decision 94/942/CFSP
and in Schedule 2 to the Dual-Use & Related Goods (Export
Control) Regulations 1996 (DUEC) as amended are subject to control.
Council Regulation (EC) 3381/94 ("the EC
Dual-Use Goods Regulation"), together with Council Decision
94/942/CFSP established a Community regime for the control of
exports of dual-use goods, in accordance with member states' commitments
under the Wassenaar Arrangement, the Australia Group, the Nuclear
Suppliers Group, the Missile Technology Control Regime and international
obligations under the Chemical Weapons Convention. Under the Dual-Use
& Related Goods (Export Control) Regulations 1996, (DUEC)
as amended, the UK also imposes certain national controls, several
of which apply to certain destinations only.
A licence is not needed to export most dual-use
goods to other Member States but exporters have to register with
the Export Control Organisation (ECO) before making their first
export and they need to keep records of any such exports. However,
a licence is needed for the export of the most sensitive dual-use
goods to other Member States.
Other goods subject to the end-use control
Under the end-use control any other goods become
subject to control if the prospective exporter has been told or
knows or has grounds for suspecting that the goods would or might
be used in activities connected with weapons of mass destruction
or missiles for their delivery. The end-use of "catch-all"
control is set out in Articles 4.1 and 4.2 of the EC Dual-Use
Goods Regulation, and in Regulation 4(2)(b) and (c) of the DUEC.
Controls on the export of technology
The export of technology is controlled, principally
where it relates to the development, production or use of certain
goods in the lists of specifically controlled goods. In the context
of export controls, technology means specific information necessary
for the development, production or use of goods. This information
may take the form of such things as blueprints, plans, diagrams,
models, formulae, tables, engineering designs and specifications,
or manuals and instructions. Technology that is in the public
domain is not controlled (unless caught by the end-use control),
nor is basic scientific research nor (unless it is directly associated
with dual-use nuclear goods) is the minimum information needed
for patent applications. The technology subject to control is
detailed in the lists in the EG(C)O, the DUEC and the EC Council
Decision.
At present these controls apply only to technology
in tangible form; they do not apply to the transfer of technology
in an intangible form, eg by electronic mail, fax or orally. 25[24]
The White Paper on Strategic Export Controls published on 1 July
proposes that new primary legislation should give Government the
power to control the transfer of technology by intangible means.
The European Commission has also published a proposal to amend
the EC Dual-Use Goods Regulation to cover the transfer of technology
by electronic means.
Controls on transhipment
A transhipment licence may be required where
controlled products are exported when they have entered the UK
solely for transit to another country but most transhipments subject
to export control can be made under one of the Open General Transhipment
Licences in force (see Annex B), provided in all cases that the
relevant conditions are met. Where this is not the case an individual
transhipment or export licence is required.
Controls on the supply of goods (trafficking and
brokering)
The Import Export and Customs Powers (Defence)
Act 1939 does not give the Government the power to impose controls
on the involvement of persons in the UK or UK persons abroad in
arranging the supply of goods from one overseas country to another
(commonly referred to as trafficking or brokering). However, where
controls on the supply of military and dual-use goods (and—in
the case of comprehensive trade sanctions—all goods) are
required by a binding resolution of the United Nations Security
Council, ie in accordance with UN trade sanctions or arms embargoes,
such controls are implemented under the United Nations Act 1946.
New primary legislation would be required to take powers to control
the supply of goods in other circumstances, and this is one of
the issues covered by the White Paper.
24 In its response to the Trade and Industry Committee's
report on Export Licensing and BMARC, the then Government indicated
that it would give further consideration to the extent to which
it would be practical to require export licence applicants to
identify potential (ie as well as actual) uses of dual-use goods.
It subsequently consulted industry on this point when Form A was
being revised. Although industry concerns about the impracticality
of such a requirement led to the idea of including a clause about
potential end-use in Form A being dropped, a new version of Form
A, to be introduced shortly, will include a further question about
other details relating to the end-use. In addition, the language
in the explanatory notes to be provided with this form has been
strengthened to emphasise to applicants the importance of providing
comprehensive and accurate information on this point. The notes
will read "It is in your own interests to find out and provide
as much information as you can about end-use of the goods. This
is partly for your own protection and partly because end-use is
obviously a significant factor in our consideration of your application."
25 Intangible transfers may, however,
currently be affected by sanctions imposed in accordance with
UN resolutions. And in the case of technology developed under
Government contract, the Official Secrets Acts 1911 and 1989 may
apply. There may also be other obligations, eg copyright conditions
or contractual obligations which apply to the transfer of particular
technology. Back
| 
