Concerned Industry - How To Reach Them Werner Haider EXPORT CONTROL OF DUAL-USE ITEMS AND ARMS: INDUSTRY OUTREACH (Sofia, May 2006)

Controlled Exports  Controlled/Listet by „Control–List“ (Military or Dual-Use or other)  Not listed but caught by „catch all - controls“  Brokering  Technical Assistance

Types of Exporters ?

 Producer of controlled goods  Dealer dealing with controlled goods  Producer of decontrolled goods  Dealer dealing with decontrolled goods  Persons (tech. assistance,brokering) Which Industry could be object to Export Controls ?

Producer / Dealer of controlled goods For export an appropriate licence is necessary

Producer of decontrolled goods ? de- controlled item consisting of:

Producer of decontrolled goods ? controlle d item consisting of as an impact to the „General Note“ to the Control list. principle element

General Note to the Control List 2. The object of the controls contained in this Annex should not be defeated by the export of any non-controlled goods (including plant) containing one or more controlled components when the controlled component or components are the principal element of the goods and can feasibly be removed or used for other purposes.

General Note to the Control List N.B.: In judging whether the controlled component or components are to be considered the principal element, it is necessary to weigh the factors of quantity, value and technological know- how involved and other special circumstances which might establish the controlled component or components as the principal element of the goods being procured.

General Note to the Control List There is no difference between new and used goods

Export of controlled Spareparts Border spare parts a licence is needed

Export of controlled Spareparts Conclusion controlled parts / components are subject to export control even when used in decontrolled items and exported earlier („embedded“) without a licence

Catch all Controls Border Information by licence Authority Export regarding „catch all-clause“ needs a licence (if not vorbidden by authority)

Catch all --- excerpt / analogously only ! … authorisation shall be required for the export of dualuse items not listed in the control lists, if the exporter has been informed by the competent authorities… that the items in question are or may be intended, in their entirety or in part, for use in connection with the development, production, handling, operation, maintenance, storage, detection, identification or dissemination of chemical, biological or nuclear weapons or other nuclear explosive devices or the development, production, maintenance or storage of missiles capable of delivering such weapons. Catch all Controls

Catch all --- excerpt / analogously only ! …authorisation shall also be required for the export of not listed dual-use items, if the country of destination is subject to an arms embargo …….and if the exporter has been informed by the competent authorities ….that the items in question are or may be intended, in their entirety or in part, for a military end-use…. Catch all Controls

in-country obligation suppliers should inform their customers if the objective goods are subject to export controls (or not)

Regardless if controlled or decontrolled exports, the exporter, producer, dealer,etc. should be informed about export control regulations, know the goods he deals with, have in mind the catch-all-clause and take care of a “red flag list”. Conclusion

 No detailed enduse information.  The product's capabilities do not fit the buyer's line of business,  The item ordered is incompatible with the technical level of the country of destination.  The customer is willing to pay cash for a very expensive item when the terms of sale would normally call for financing.  The customer has little or no business background.  The customer is unfamiliar with the product's performance characteristics but still wants the product. red-flag-list

 Routine installation, training, or maintenance services are declined by the customer.  Delivery dates are vague, or deliveries are planned for out of the way destinations.  A freight forwarding firm is listed as the product's final destination.  The shipping route is abnormal for the product and destination.  Packaging is inconsistent with the stated method of shipment or destination.  When questioned, the buyer is evasive and especially unclear about whether the purchased product is for domestic use, for export, or for reexport. red-flag-list

Field

via customs customs uses risk indicators

 Exporter  Country of Destination  Consignee / Enduser  Commodity  other risks indicators  spot checks / targeted  mobile customs  common actions presence of licensing authority and police customs - risk indicators

aim reach exporters before export of controlled goods takes place

 Customs  Concurrence (when applying: are there some other exporters involved?)  Intelligence service  Chamber of commerce Search instruments

 Exportpromotion  Media  Internet  Foreign authorities  Exhibitions  Business partners also in third countries Search instruments

 Law  Homepage  Chamber of Commerce  Carriers  Customs  Seminars  Business partners How to reach them

Outreach to Industry Checklist  Maintain a website  Circulate information – newsletter  Provide guidance material  Hold seminars and workshops  Participate in seminars  Allow exporters to talk to licensing officers  Help to install internal compliance programmes

Outreach to Industry Checklist  Make feedback on the service possible  Inform “export promotion”  Brief companies  Contact the chamber of commerce  Inform SMEs and start-ups  Inform higher education

END Thank You for Your kind Attention Werner Haider Ministry of Economics and Labour Stubenring Wien Tel.: +43/1/71100/2335