Incoming Changes To The Export Control Order – What Does It Mean?

The Export Control Joint Unit (ECJU) recently announced significant amendments to the Export Control Order 2008, set to take effect from April 1, 2024.

These changes, outlined in the Export Control (Amendment) Regulations 2024, introduce updates to schedules governing military goods, software, and emerging technologies.

This announcement is particularly crucial for UK importers and exporters, as it impacts the licensing requirements for a wide range of dual-use items. In this blog post, we’ll delve into the details of these amendments, deciphering their implications and exploring what they mean for businesses navigating the complex landscape of international trade.

The Context

These recent amendments to the Export Control Order 2008 and Council Regulation (EC) No 428/2009 mark a significant milestone in the regulation of exports, transfers, brokering, and transit of dual-use items.

Under the Retained EU Law (Revocation and Reform) Act 2023, Council Regulation (EC) No 428/2009 has been assimilated and brought under the same umbrella: now referred to as “the assimilated Dual-Use Regulation.”

Scheduled to take effect on April 1, 2024, the Export Control (Amendment) Regulations 2024 (SI 2024 No. 346) introduce changes to:

• Schedule 2 of the 2008 Order, governing military goods, software, and technology
• Schedule 3 of the 2008 Order, governing dual-use goods, software, and technology

Additionally, amendments to Annex I of the assimilated Dual-Use Regulation reflect updates to the control lists, administered by various multilateral export control regimes.

Why Are Things Changing?

These regulatory adjustments signal a proactive approach by the ECJU to adapt to evolving security and technological landscapes, ensuring more robust controls over the export and transfer of sensitive goods and technologies.

At an individual level, understanding these changes is paramount for businesses involved in international trade. Compliance with export control regulations, alongside security mandates, are essential. It means the avoidance of penalties and maintenance of the integrity of global supply chains.

2008 Order: Amendments

The amendments to the 2008 Order are integral to maintaining robust export control measures and adapting to evolving security landscapes. Here’s a breakdown of the key changes:

Schedule 2 Amendments:

• Routine technical updates aligned with the Wassenaar Arrangement munitions list, as agreed in December 2023.
• Editorial amendments to Technical Notes in certain entries (e.g., ML4, ML7, ML8, ML9, ML14, ML17).
• Addition of a new decontrol note for a chemical in sub-entry ML8.d.
• Clarification of control scope for production equipment in sub-entries ML18. and ML18.b.

Schedule 3 Amendments:

• Introduction of new controls on specific emerging technologies, committed to by the UK and like-minded countries, to strengthen national controls.

According to the Department For Business & Trade notification, these amendments reflect the UK’s commitment to staying ahead of emerging threats and ensuring comprehensive controls over the export of sensitive technologies.

The Assimilated Dual-Use Regulation: Amendments

The amendments to the assimilated Dual-Use Regulation signify a proactive approach to aligning export controls with international standards and emerging threats. Here’s an overview of the key changes:

• Routine Technical Updates: Amendments to Annex I reflect routine technical updates to the Wassenaar Arrangement dual-use list and changes to control lists administered by other multilateral export control regimes (e.g., the Australia Group, Nuclear Suppliers Group, and the Missile Technology Control Regime), as agreed in December 2023.
• Editorial Amendments: Technical Notes and definitions in certain entries have been editorially amended for clarity and precision.
• Amendment of Control Parameters: Control parameters for some items, including those in Categories 3 and 8, have been amended to enhance control effectiveness.
• New Sub-Entry: A new sub-entry for iodine pentafluoride has been introduced in entry 1C011.e, reflecting evolving security concerns.
• Modification of Decontrol Note: Decontrol Note 2.e. for commercial cryptography applications in entry 5A002.a has been modified to address emerging cryptographic challenges.
• Minor Consequential Amendments: Minor consequential amendments have been made in entries PL5001.f and in 9E001 and 9E002 as a result of changes made in previous SIs.

A consolidated list of strategic military and dual-use items requiring export authorisation was published on 1st April 2024 to reflect the changes. Again, the amendments underscore the UK’s commitment to maintaining a robust export control regime, ensuring the responsible transfer of strategic military and dual-use items.

To comply with these regulations, exporters are encouraged to apply for a license using SPIRE, the online export licensing system, and consult guidance on applying for an export license.

Where To Turn If You Need Help

If you find yourself navigating the complexities of export control regulations and need assistance, there are resources available to support you.

The Export Control Joint Unit (ECJU), housed within the Department for Business and Trade, serves as a valuable point of contact. You can reach out to them via email at exportcontrol.help@businessandtrade.gov.uk, or by phone at 020 7215 4594.

For traders seeking more comprehensive support in operating seamlessly across borders, partnering with specialist and independent trade consultants like clearBorder is the best option.

Whether you require Export Control Compliance or UK-Ireland trading consultancy, clearBorder offers tailored solutions to meet your needs. Additionally, our range of training modules, including Border Ready Importing and Exporting, empowers your team with the knowledge and skills necessary to navigate international trade confidently.

Contact clearBorder today to explore how we can assist you in optimizing your trade operations.