1. Wassenaar Workshop, Vienna, 28 June 2016
Challenges in Export Control for Small States: The Experience of Iceland
Wassenaar Workshop, Vienna, 28 June 2016
ICELAND

2. Overview Legal approach Principal agencies
Principal exporters of controlled goods
Extensive international cooperation
Decision process
Challenges
Single market issue
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3. Legal Approach
Control of Services and Items that can have Strategic Significance Act 58/2010
Regulation on Export Control, both based on model laws and from neighbouring countries, implement:
EU Directive on Transfers of Defence Related Products 2009/43 (incl. Common Military List)
EU Comon Position on Control of Military Exports 2008/944
EU Regulation on Dual-Use Goods 428/2009
EU Aquis is translated and published in Icelandic
Must be read with and adaptive text in main Regulation because Iceland is not a EU Member
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4. Exceptions Temporary imports for repair, trade shows, training etc
Life saving equipment for crisis situations
Sporting equipment for private use
Certain transit items
Items for use on the national sea-bed
Items on board national ships and aircraft
Temporary exports for Icelandic Government use or repair
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5. Principal Agencies Customs National Police Copied all export licenses
Three types, individual, general and global export authorisations
Licenses issued by MFA Legal Department
Sporting weapons excluded, handled by local police commissioners, must consult with MFA on commercial sales
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6. Teledyne Gavia www.gavia.is
Gavia Defence
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7. Arctic Trucks www.defence-arctictrucks.com
High Mobility G270
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8. STAR ODDI www.star-oddi.com
DST microRF - temperature telemetry
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9. Flyware www.flyware.net
eLoadsheet
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10. Kögun advania.is
GSSG/RT - Radar Data Generation
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11. Aluminium Industry, Carbon Fibre
Rio Tinto Alcan – Capacity: mt p/a
Century Aluminium – Capacity: mt p/a
Alcoa – Capacity: mt p/a
Total: mt p/a
3rd largest producer Europe
11th largest producer World
1/3 of production by 2nd largest (Russia)
Capacity to produce high quality alloys
Plans to produce carbon fibre
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12. International Cooperation (incl. UNSC, OPCW, HCOC, FATF, etc.)
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13. Decision process Technical assessment
(may need outside consultants, bilateral cooperation)
Risk assessment
(challenge for small countries, cooperation important, open sources, embassies, private companies)
Political assessment
(based on risk assessment)
Minister for Foreign Affairs takes final decision for important exports
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14. Challenges Extensive international cooperation
Updating of export control lists
Technical and risk assessments
Non-membership to a regime such as Wassenaar means no access to denials lists, creating a proliferation risk
More limited possibilities for discussions and consultations with other countries to align policies
End-user controls can be problematic
Single market problem
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15. Single market issue
Iceland is part of the EU Internal Market through the EEA
The Intra-Community Transfers Directive simplifies transfers of Wassenaar listed items within the Single Market, which includes Iceland, Norway and Liechtenstein (no export license needed between certified companies)
The same applies for dual-use products for Norway and Liechtenstein and soon Iceland
There are no practical ways to control Wassenaar list items flowing to these countries
All EEA countries are potential exporters of Wassenaar list items produced within the EEA (EU/EEA among world’s top exporters)
Therefore participation in Wassenaar would reduce proliferation risks
(participation also helps market access, investments)
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16. See further: https://www.mfa.is/foreign-policy/export-control/
Thank you
Pétur Thorsteinsson
Export Control and Sanctions / Directorate of Legal and Executive Affairs
Tel (+354) / Cell (+354) /
Utanríkisráðuneytið / Ministry for Foreign Affairs
Raudararstig 25 / IS-150 Reykjavik / ICELAND /
Tel (+354) / Fax (+354) /
Disclaimer / Fyrirvari varðandi tölvupóst
ICELAND