International Trade Law News

Published by Jacobson Burton Kelley PLLC

The U.K. Parliament's Quadripartite Committee, which consists of members of parliament from the defense, foreign affairs, international development and trade and industry committees, has released a report containing their most recent examination of the U.K. Government's strategic export control system, including the roes of the Export Control Organisation (ECO) and HM Revenue and Customs (HMRC).

While the Committee concluded that "much has been achieved in the area of strategic export control" the Committee notes that "there is still a great deal to do." The following is a brief summary of some of the conclusions and recommendation made by the Quadripartite Committee in their report:

• Recommends that the U.K. Government work within the EU to maintain the arms embargo on the People's Republic of China.
• The Committe was "concerned to discover" that no U.K. agency appears to enforce the intangible transfer of technical information which may be in breach of strategic export controls. The Committee recommends that a review of the operation of such controls be included as part of the government's review of the operation of export control legislation in 2007.
• Citing specfic evidence, the report concludes that the U.K. Government's response to the challenge of the Internet as an arms emporium is too passive and fails to take account of the role it now plays in promoting and facilitating commerce and exports across the world. The report recommends that the U.K. Government produce a strategy for policing and monitoring potential breaches of export control by companies using the Internet to advertise and facilitate transactions.
• Concluded that within the defence industry there are contractors who, either through ignorance or deliberate intent, breach the rules on strategic exports and that the authorities need to seek out these breaches and the perpetrators. The Committee recommend that, as well as providing guidance and attending arms fairs, the U.K. Government actively seeks out breaches of export controls at arms fairs.
• Recommends that the U.K. Government publish details of the amounts paid for breaches of strategic export controls, with details of those who have agreed to pay.