Malcolm Budd BSc (Law) MCIPS Senior Export Control Manager - - PowerPoint PPT Presentation
Malcolm Budd BSc (Law) MCIPS Senior Export Control Manager (Corporate) Rolls-Royce plc 16 th August 2011 Why have Export Controls? Structure and Incorporation Penalties for Non-Compliance Military & Dual-Use Control Lists
Why have Export Controls? Structure and Incorporation Penalties for Non-Compliance Military & Dual-Use Control Lists Overview of UK Export Control Regulations Overview of US Export Control Regulations Other Significant Regimes How Export Controls Impact Purchasing Question & Answer Session Summary
Christopher Tappin, 64, of Orpington, Kent Accused of conspiring to sell parts for Iranian missiles, and is fighting extradition to the USA Mr Tappin said he believed he was exporting batteries for the car industry in the Netherlands. If convicted, he faces 35 years in prison.
The Iraqi Supergun and Matrix-Churchill Arms-to-Iraq affair concerned the uncovering of the government-endorsed sale of arms by British companies to Iraq.. Four directors of the British machine tools manufacturer Matrix Churchill were put on trial for supplying equipment and knowledge to Iraq. In 1992 the trial collapsed, as it was revealed that the company had been advised by the government
were eventually paid compensation As one of the other directors claimed to have been working for the British intelligence services, the Ministry of Defence advised Matrix Churchill on how to apply for export licences of materials that could be used to make munitions in such a way that would not attract attention.
Tools used by NATO and ‘friendly’ countries to ensure trade is conducted securely
and contributing to acts of aggression, cruelty or proliferation of WMD
The means by which governments control the movement of strategic goods and technology between countries and people which affect the security interests of national or international objectives of the country
All products and technologies are subject to:
Controls apply to:
Rolls-Royce data-strictly private
Rolls-Royce data-strictly private
International Agreements govern lists of Military & Dual
EU and National Governments incorporate these into law
National variations in application of Regulations National variations in perception of different destination
Company policy may enforce additional restrictions
Governments produce lists
production or use of goods or software elsewhere in ML
Items designed originally for commercial use but which
Does not mean ‘goods that are used in both Civil and
Any item or technology which you believe or know may be
Category 0 –Nuclear Materials, Facilities & Equipment 1 –Special Materials and Related Equipment 2 –Materials Processing 3 –Electronics 4 –Computers 5 –Telecommunications & Information Security 6 –Sensors & Lasers 7 –Navigation & Avionics 8 –Marine 9 –Aerospace & Propulsion Sub-Category A – Systems, Equipment & Components B – Test, Inspection & Production Equipment C – Materials D – Software E – Technology Regime Origin 0 –Wassenaar Arrangement 1– Missile Technology Control Regime 2– Nuclear Suppliers Group 3– Australia Group 4– Chemical Weapons Convention 6A203a Mechanical rotating mirror cameras, as follows, and specially designed components therefor: 1. Framing cameras with recording rates greater than 225000 frames per second. 2. Streak cameras with writing speeds greater than 0.5 mm ….. Item’s individual entry code
Exports
Controlled exports are illegal if there is no Export Licence
Specific information necessary for the development,
So an RFQ with a Technical Specification for a component,
US laws also control bill-of-material information
Export Control Organisation (ECO) in the
Advised by:
Further information is available on the ECO pages
Exports of Dual Use Goods & Technology not
Community General Export Authorisation EU001
‘Brokering’ ‘End Use’ Trade Controls Iran and other countries Licences may be amended, suspended or revoked
Governments require EUU to support all Licence
Suppliers & Customers becoming more aware!
EXPORT EXPORT
EXPORT
EXPORT
PHYSICAL MOVEMENT OF GOODS PHYSICAL MOVEMENT OF DATA ELECTRONIC TRANSFER OF DATA NOT AN EXPORT (generally) PHYSICAL MOVEMENT OF GOODS PHYSICAL MOVEMENT OF DATA ELECTRONIC TRANSFER OF DATA EXPORT
NOT AN EXPORT (generally) EXPORT
Department of State Arms Export Control Act International Traffic In Arms Regs (ITAR) U.S. Munitions List (USML) Governs: Military / Defense Items, Data & Services Department of Commerce Export Administration Act Export Administration Regulations (EAR) Commerce Control List (CCL) Governs: Everything Else (non-military & dual use) Department of State Department of State Arms Export Control Act International Traffic In Arms Regs (ITAR) U.S. Munitions List (USML) Governs: Military / Defense Items, Data & Services Department of Commerce Department of Commerce Export Administration Act Export Administration Regulations (EAR) Commerce Control List (CCL) Governs: Everything Else (non-military & dual use)
Controls the transfer of Goods, Technology, Software and
Controls items on the US Military List (USML) Advised by the Department of Defence Principle types of US ITAR Export Authorisations:
Controls the transfer of ‘Dual-Use’ and ‘Civil’ goods and
Controlled by the Export Administration Regulations (EAR)
* Red denotes nations known to be supporting terrorism.
US Export Controls are “extra-territorial” ITAR and EAR licences list the companies and organisations who
may access the goods and/or the technical information
ITAR
and EAR licences
specify whether technical information can be accessed by permanent employees only (i.e. not ‘contract labour’)
‘Nationality’ issues
technical information
The concept of “Deemed Export” and “Re-export”: Principle of De Minimis in EAR
EXPORT EXPORT
EXPORT
US Person (US Entity) US Person (US Entity) US Person (US Entity) Foreign Person (Non-US Entity) Foreign Person (Non-US Entity) Foreign Person (Non-US Entity)
(Known as Sublicensing)
NOT AN EXPORT EXPORT RE-EXPORT
Does the supplier understand Export Control?
Audit the supplier’s compliance processes
What is the sub-tier supply chain
2-speed supply chain? Corporate Services (IT, Reprographics, Document
What countries are you planning to source from? Know your Customer Chain:
Screening: Denied Countries, Companies or Persons What Supplier Export Licence restrictions may you be subject
What Licences do you need to send Technical Data under RFQ
What End User Undertakings may need to be obtained and
Provide the Supplier with the ‘Export Rating’ for the Goods
Determine the ‘Export Rating’ of the associated Technology Supplier to provide the ‘Export Rating’ of Goods/Technology
Every document issued should state the ‘Export Rating’ of the
Request Export Rating of proprietary products from Suppliers. Systems & repositories for collating ‘Export Rating’ data Manufacturing Plans, Quality Plans, Concessions, etc are all
Lead Time & Planning Management of Licence Conditions
All technology, regardless of medium
Ensure that you take only the technology required for the
Ensure that the required authorisations are in place to cover
the export of controlled technology prior to the trip
In the case of US ITAR-controlled technology, ensure all
IT security policy (China) Comply with local procedures before taking such equipment
Accessing controlled data held on a server from an overseas
destination is classed as an export.
Export compliance is business critical Export compliance is mandatory and embodied in law
Impact of US Export Controls All Purchasing staff are “Gatekeepers” to the supply chain Be aware when you making an export of hardware,
Be aware when you are talking to suppliers and contractors Always err on the side of caution Increasing compliance sought by Governments, customers
If you think you may need authorisation, STOP and ASK