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June 18, 2007 

United Kingdom to Conduct Review of Export Control Legislation

The U.K.'s Department of Trade and Industry (DTI) announced today that it is conducting a Post Implementation Review of the U.K.'s export control legislation that was enacted in 2004 under the Export Control Act 2002. The review is intended to determine:

  • Whether these new controls achieved their desired effect;
  • Whether the resulting impact upon business was proportionate and at an acceptable level; and
  • Whether any unintended or undesirable consequences – commercial or otherwise - have resulted
In addition, the DTI has issued several proposed changes to the U.K.'s export control regime and is seeking input on these proposals, including whether:
  • Trading by U.K. persons overseas should require a U.K. licence for a broader range of equipment than at present, including small arms and light weapons and providers of "ancillary services", such as transportation;
  • Tighter control should be applied to the production agreements under which U.K. companies use overseas companies or their own overseas subsidiaries to produce military equipment on their behalf for onward supply;
  • Whether the Military End-Use Control --under which goods which are not normally licensed can be deemed licenseable when exported for incorporation into military equipment which will be used in an embargoed destination -- should be extended to cover equipment that is complete when it leaves the U.K. and to destinations that are not subject to embargoes;
  • A pre-licensing registration system for U.K.-based arms traders should be introduced.
The DTI has issued a document containing these proposals and a detailed questionnaire for respondents to give their views and provide their input on these issues. Responses to the questionnaire are due on September 30, 2007 and the DTI intends to issue its own internal analysis by the end of this year.

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