Supplementary memorandum from the Export
Group for Aerospace and Defence (EGAD)
REVIEW OF
THE EC REGIME
OF CONTROLS
OF EXPORTS
OF DUAL-USE
ITEMS AND
TECHNOLOGY
On Monday, 18 December the Commission released
its proposals for reform for the EU export control regime,
consisting of both a communication and a proposal for the recasting
and amendment of Regulation 1334/2000 and subsequent amendments
(these are the documents attached). In many aspects, the proposed
reforms are not as ambitious as the European business world would
have liked.
SUMMARY
— Transparency/Harmonisation
— Improved EU and national websites with
a "common entry point". (Communication, p 10)
— "Transparency" to be generally
dealt with under "administrative action" (Communication,
p 10)
— Enhanced use of the "pool of experts"
to ensure more uniform interpretation of Annex I (Communication,
p 10)
— Better information-sharing among member
states on national controls on denials
— Greater harmonisation of authorisation
forms (Article 10.1)
— No public circulation of authorisation
requirements
— Better information-sharing between member
states & the Commission on national controls on non-listed
items; (Article 4.6)
— Procedure for compulsory fast advice
by member states within a 20-day deadline (Article 4.8)
— Guidelines/best practices to further
improve information flows among member states and limit opportunities
for circumvention (Communication Annex IV (b) p 24.)
— Community General Export Authorisation
— No proposals for harmonisation of documentation
and procedures
— However, reporting is explicitly by notification
with the option of reporting after first use, as per the UNICE
position. (Article 6.1 (a))
— No new authorisations are proposed but
the Communication (Annex V p 25) lists possibilities for future
proposals for authorisations:
1. some chemicals under CWC to certain
CWC members
2. small quantity/value shipments
3. Wassenaar non-sensitive items to
certain Wassenaar members
— Intangible Technology Transfer
(ITT)
— Commission rejects UNICE proposal to
treat a multinational company as a single entity for the purposes
of controls on ITT (Explanatory Memorandum of Proposal for Regulation,
p 4)
— Clarification of the definition of ITT
to include "technical assistance" and transmission by
electronic means. (Article 2(b)iii)
— Clarification of record-keeping requirements
for ITT—nature, period transferred and destination (Article
16.2.iii)
— Clarification of reporting requirements
on forms—"if applicable for intangible transfers..."
added in several fields (Annnex III)
— For technologies developed with third
countries in the context of EU-financed research special EU-wide
controls are proposed (Article 23)
— Future guidelines may address harmonisation
of enforcement controls are proposed to address issues such as
technology transferred through company intranet. (Communication,
Annex IV (b) p 24)
— Future guidelines may seek to improve
implementation (Communication, Annex IV (b) p 24)
— Internal compliance programmes
— Proposal would oblige Member States to
"take into consideration" the existence of an ICP in
a company when deciding on a global authorisation (Article 8.2)
— New possibility for MS authorities to
stop goods in transit and, with reasonable grounds for suspicion,
take possession of them. (Article 3.4)
— Proposals would require brokers/suppliers
of intermediation services to apply for an authorisation only
in two cases:
1. where he/she is aware of a WMD end-use
for the product in question
2. where an MS authority has informed
him/her of risk of same. (Article 3.3)
February 2007
| 
