Timetable for implementation
101. The Government currently proposes to allow a
12-week implementation period between publishing the proposals
relating to exports of goods and technology in their final form
and the law coming into force. It believes that this period of
time should allow industry to make "adequate preparations"
for the new controls.[108]
However, owing to "practicalities of processing licence applications"
for trade in military goods under the Trade in Controlled Goods
(Control) Order, the Government is proposing that there should
be a 6 month implementation period for this Order.[109]
Companies will be encouraged to submit applications as early as
possible to prevent the disruption of their business. The ECO
will aim to promote awareness and understanding of the new orders.
102. The DMELG does not believe that the proposed
three-month implementation period is sufficient for the introduction
of controls on intangible transfers of technology, because of
the need within industry for training, new IT hardware, and possible
reaccreditation with the Defence Security Standards Organisation
(DSSO) of the MoD.[110]
It has been suggested to us that a transitional period of a year
would be more appropriate.[111]
103. We would not wish the implementation of new
controls to be delayed for any longer than is necessary. But it
would equally be foolish to introduce the secondary legislation
before industry is ready to comply with it. We
recommend that the Government should ensure that transitional
periods for implementing secondary legislation under the Export
Control Act are not unduly protracted, but that it should also
consider representations from industry for a modest delay in implementation.
Government readiness
104. It might also be in the Government's own interests
to countenance a slightly longer lead-in time for the new legislation.
The Government does not have a good record in dealing swiftly
with export licence applications.[112]
Industry has frequently had cause to complain about the length
of time that it takes to acquire a licence. An ability to respond
at speed to licence applications will be even more important under
the new controls. Conventional export licences are often sought
once a commitment of some sort has already been made. New trade
and technology licences may be required at a much earlier stage,
when even slight delay is more likely to lose a potential client.
The Government claims in the consultation document that "it
is not anticipated that the introduction of new licensing requirements
should lead to significant delays in the processing of licences".[113]
If this proves to be true, it will be a welcome departure from
past experience.
105. The Government's preparations for the new controls
are based on its own assessments of how many new licence applications
and queries these controls will bring.[114]
If these assessments prove to have underestimated the volume of
increased bureaucracy, it follows that the Government's preparations
in terms of extra staff and resources are likely to be inadequateas
the Government is aware.[115]
106. The Government has recently been conducting
a review of the licensing process, and, according to the Secretary
of State, this is already producing improvements in efficiency
on the ground.[116]
We conclude that the efficient administration
of the new controls will be crucial to their success. We recommend
that the Government should ensure that it has sufficient surge
capacity to deal with unexpected demand for licence applications
and information, especially when the new controls are initially
introduced.
67 Ev 33 Back
68
Q 45; Ev 33-34 Back
69
Ev 33 Back
70
Ev 3-4, Qq 13, 16, 20 Back
71
Ev 34 Back
72
Consultation document, Partial Regulatory Impact Assessment, para
8.1, p A. 19 Back
73
Ev 53 Back
74
Ev 1, Q 3 Back
75
Consultation document, Trade in Controlled Goods (Control) Order,
section 4 (3), p G. 3 Back
76
Ev 1, Q 3 Back
77
paras 76-81 Back
78
Ev 7, Qq 31, 33 Back
79
Consultation document, para 3.7-3.8, p 16, and para 4.33, p 34 Back
80
Consultation document, para 3.7, p 16 Back
81
Consultation document, para 4.33, p 34 Back
82
Ev 22, Q 131 Back
83
Ev 40; Ev 48 Back
84
Ev 22, Q 131 Back
85
Consultation document, para 2.8, p 11 Back
86
Consultation paper, para 2.8, p 10 Back
87
Ev 7, Q 31 Back
88
Consultation document, Annex F, section 13 (2), p F. 11 Back
89
Ev 7, Q 32 Back
90
Ev 27, Q 156 Back
91
Ev 25-26, Qq 150-151; Ev 27, Q 156 Back
92
Ev 7, Q 31; Ev 25-26, Qq 150-151 Back
93
Ev 7, Q 32 Back
94
Consultation document, Annex F, section 13 (2) (c), p F. 11 Back
95
Ev 34 Back
96
Ev 9, Q 50 Back
97
Ev 34 Back
98
Ev 51 Back
99
Ev 53 Back
100
Ev 53-54 Back
101
Ev 51 Back
102
Consultation document, para 4.43, pp 36-37 Back
103
Ev 51 Back
104
Ev 48 Back
105
Ev 51 Back
106
Ev 5-6, Qq 23-27; Ev 8, Qq 41-45; Ev 34; Ev 50 Back
107
Ev 5, Q 23 Back
108
Consultation document, Partial Regulatory Impact Assessment,
para 6.29, p A. 18 Back
109
Consultation document, para 4.15, p 30 Back
110
Ev 35; Ev 8, Q 41 Back
111
Ev 8, Q 43 Back
112
Ev 29, Q 166 Back
113
Consultation document, Partial Regulatory Impact Assessment, para
8.7, p A. 20 Back
114
Consultation document, Partial Regulatory Impact Assessment, section
8, pp A. 19-20 Back
115
Ev 29, Q 166 Back
116
Ev 29, Qq 166-167 Back