Government – Industry Relations in a Nutshell Introduction by Nineta Bãrbulescu Head of Romania National Agency for Export Controls -Prepared for the 17 th Annual Conference Globalization of Export Controls London, November 15-17, 2004

ANCEX, November 15-17, 2004 Globalization of Export Controls, London Conference 2 Building Government Outreach to Industry  WHY ?  WHEN ?  HOW ? Brief summary of Romanian practice

ANCEX, November 15-17, 2004 Globalization of Export Controls, London Conference 3 W H Y ? 1.Export Controls is designed to be implemented by Industry 2.Regulating, surveillance and observing export controls belong to Governments 3.The necessity of a common language for the entire export controls community 4.To create and amplify a correct/ read it honest, desirable/ motivation within Romanian companies 5.A linkage of Industry to the global fight against terrorism

ANCEX, November 15-17, 2004 Globalization of Export Controls, London Conference 4 W H Y ? 6.A living proof of the Government willingness to include industry perspective in developing all aspects of the national export control system 7.A bad behavior in Export Controls may affect the reputation of the companies 8.The violation of Export Controls regime => retrieval / losing the export privileges and the partners trust 9.Customizing the export controls within national corporate culture 10. To improve Export Controls awareness within key-industry sectors

ANCEX, November 15-17, 2004 Globalization of Export Controls, London Conference 5 W H E N ? In due time  Government Outreach to Industry – GOI - should be built as a distinct building block within Export Controls system  GOI is an heterogeneous community so its construction is an evolving process, usually younger than export controls history  Unfortunately, only few applicable histories  Practice proves it is built during maturity / development phase  Government and Industry do have separate approaches and priorities (national security versus money, security versus financial power and influence)  However, legality is the common ground  In due time means inter alia the accumulation of: 1. Strong Political Will 2. Licensing Expertise 3. Enforcement Capabilities  It could also mean the necessity of stringent adaptation of an Export Controls system to the current challenges  GOI is a proof of an advanced Export Controls system

ANCEX, November 15-17, 2004 Globalization of Export Controls, London Conference 6 W H E N ? Romanian Practice – 2 Living Histories 1.In Romania, Government Outreach to Industry was built as a separate block of Export Controls Building after the Accumulation Stage - (i.e. the Youth of Export Controls: ) GOI is currently the strategy and the essential tool - incentive for the Development stage (since January 2001) 2.GOI was build as a separate block of CWC implementation from the Awareness Phase (before the entry into force of the CWC) (Romania ratified CWC in 1994 and in 1997 adopted Law 56 for the CWC implementation, amended in 2003) For CWC topics, GOI was specially designed for both authorities and companies Since 2001, the transparency principle was implemented and furthermore developed

ANCEX, November 15-17, 2004 Globalization of Export Controls, London Conference 7 ROMANIA EXPORT CONTROLS - A COOPERATIVE SYSTEM REGULATIONS CWC INSPECTIONS AND DECLARATIONS INTERNATIONAL COOPERATION ENFORCEMENT P O L I C Y INTERAGENCY COOPERATION LICENSING PROCEDURES GOVERNMENT OUTREACH TO INDUSTRY EXPORT CONTROLS FORMS EXPORT CONTROLS IN -HOUSE COOPERATIVE SYSTEM

ANCEX, November 15-17, 2004 Globalization of Export Controls, London Conference 8 H O W ? some things about the physiognomy of the GOI relationship  Observing appropriate lessons learned  Free and friendly access to laws and regulations  Several channels of communications built on distinct levels of competence and responsibilities within companies 1. Management / 2. Executive / 3. Point of contact  Meetings 1.Multilateral – conferences, workshops 2.Hands - on – focused to one particular issue/ goal 3.Open and close doors  Learning the common interpretations of the laws and regulations and the new trends  Surveying and observing the uniform implementation of the laws and regulations  Due diligence in supporting companies when submitting sensitive cases  Interlocking with other competent agencies (if necessary)

ANCEX, November 15-17, 2004 Globalization of Export Controls, London Conference 9 H o w ? Romanian Practice POLICY and TRANSPARENCY  2 Web sites: and  National Focal Point  Collection of 45 Export Controls Country Profiles (Policies and Practices)  IT products and Guidelines  2 Reports on Romanian Arms Export Controls for and 2002 (Romanian, English and electronic versions)  Ancex President Guidelines for Managers  Studies, interviews, public awareness and the beginning of a dedicated Romanian doctrine COMMUNICATION National / Thematic Conferences and Seminars  I st National Conference - April Export Controls Regime in Romania  Oct Arpechim Plant - The CWC Implementation in Romania  Nov EXPOMIL; seminar - Policy & Practices in Control of Sensitive Items  March 2002 – Recent Development in Dual Use Export Controls  April 2002 OPCW – 5 Years of International Cooperation  II nd National Conference - Sept Ten Years of Export Controls System in Romania  Febr Implementation of Internal Control Program  May Recent Developments  Nov.2003 – New Dual Use Legislation  March 2003, Interagency Cooperation in Export Controls  July 2004 – Implementing EU control lists of dual use items  III rd (September 25-26, 2003) and IV th National Conferences (Sept.28-29, 2004) – Learning Transparency Regional Meetings and On - Site Visits  IAR Brasov, Aerostar Bacau and Arpechim Piteşti  2002 – Cernavoda Plant  2003 – Romtehnica, Romaero, Condor, ProOptica  MFA Mizil Open Doors  2002 – Pre-Licensing Procedure (April) - Post Delivery Control (May)  2003 – Learning dialogue with journalists

ANCEX, November 15-17, 2004 Globalization of Export Controls, London Conference 10 H o w ? Romanian Practice ENFORCEMENT  a new approach of Enforcement and Law Observance: strengthening the preventive dimension  a new culture of law compliance focused on knowledge and bona fidae  proliferation of best effective practices to relevant companies  improving the CHANNELS OF COMMUNICATION = dialogue between authorities and companies  Programs of Awareness and Warning Programs – specially designed for the benefit of Export Control people within companies – focused on items (machine tools, baring, chemicals ) and activities (CWC declarations and OPCW inspections)  Mutual transparency and predictability for Government – Industry relationship INTERNATIONAL COOPERATION  Its crucial for lessons applied  A better profile within 4 major Export Control Regimes Romania participates thereto – NSG, ZC, AG, WA, HCOC  ANCEX built a network of cooperation with similar agencies by exchange of views and experience during bilateral consultation with officials from USA, UK, Germany, Poland, Hungary, France, Netherlands, Israel, Japan, Norway and Bulgaria  AS AN EXAMPLE :Regional Nonproliferation and Export Control Enforcement Workshop, Bucharest, June 12-14, 2002 – representatives from 11 countries in our region

ANCEX, November 15-17, 2004 Globalization of Export Controls, London Conference 11 Government – Industry Relations in a Nutshell  Enforcing the balance between Export Controls Compliance and Economic Opportunity  A cooperative bridge ANCEX - Companies  Lessons Learned from International Cooperation  Proliferation of Best Effective Practices END PRODUCT of ANCEX PROGRAM An advanced National Export Control System effective and efficient means: - the highest standards of probity, integrity and conduct - responsiveness to Government - bona fidae, ethical behavior and accountability - a culture of compliance - institutionalization of Export Control inside the corporate culture

ANCEX, November 15-17, 2004 Globalization of Export Controls, London Conference 12 Working News! The Government Outreach to Industry never ends nethertheless The GOI development and maturity is supportive and it is the necessary ground for -modernization of any export controls -adapting and coping to globalization of risk phenomena.