EU Export Control. December, Johan Dewachter

Transcription

1 EU Export Control December, 2015 Johan Dewachter

2 Presenter: Johan Dewachter 8 years experience in forwarding operations Works for BDP since years Project Operations Joined Center of Excellence Regulatory Compliance in May 2014 Located in Antwerp, BDP s European HQ

3 Agenda Compliance what & why Export Control - Different Parties - EU export control regime - What - License required exports - Types of export authorizations - EU sanctions and embargoes - EU transaction party screening End Note

4 Don t let this happen to YOU...

5 Compliance - What? Move data and goods around the world while meeting all European, Local and Company specific rules and regulations

6 Compliance - What? Not one single set of global trade rules! UN regulations international treaties and agreements EU regulations US regulations Regional regulations National regulation

7 Compliance Why? 9/11 (seizure of 4 aircrafts) Yemen Attack (placing hazardous device on an aircraft

8 Compliance Why? Increased cargo security and inspection practices Fight against drugs and terrorism National security International security Control the spread of arms and crime to safeguard security Avoid the proliferation of weapons of mass destruction...

9 Export Control Different Parties EU EU regulations National Authorities Need to provide enforcement of European regulations Need to provide penalty power Decision to approve or deny transfer is MS s responsibility In some cases, additional national controls are possible Ex: Military export controls remain national prerogative

10 Export Control Different Parties Business Focusing on procedures in place that ensure safety and security through the supply chain AEO, CTPAT, Known Consigner... Companies need to take over more activities from customs authorities Internal customs controls need to be in place Exporter is responsible for export

11 Export Control Different Parties Freight forwarder Continuing responsibility exporter does not relieve freight forwarder Distinction direct and indirect representation for customs matters Forwarder responsible for its own actions

12 Trade facilitation hand in hand with security Business needs to work in partnership with authorities to put in place good security practices. On authority side, customs authorities should then facilitate cargo consignments from the lower risk companies

13 Export Control- EU export control regime Dual Use Regulation May 2009no 428/2009 Catch all controls Military export controls EU sanctions and embargoes Types of export authorizations Types of export licenses available in the EU Export controls in practice

14 Export Control What All countries have a form of export control Export control can be different from one country to the next What is controlled How it is controlled How regulations are enforced Reporting and Record Keeping obligations

15 Export Control- Keep In Mind...: What is being exported Where is it being exported to Who will receive the item The end use of the item

16 Export Control What is controlled? Items for military use Dual Use Items Items included in an export shipment (equipment, materials, Parts, software, technology Arms

17 Export Control License Required Exports Dependent on an item s technical characteristics, destination, end user, end use... Why a license? Because certain products can be used to manufacture weapons of mass destruction. Other products as weapons, rockets, missiles etc need to be controlled, so that they don t fall into the hands of terrorists or other Import requirements country of destination

18 Export Control Dual Use Definition: Goods which can be used for both civil and military purposes, and shall include all goods which can be used for both non explosive uses and assisting in any way in the manufacture of nuclear weapons or other nuclear explosive devices. An item is controlled when listed in Annex I of the EU dual use regulation Applies to material, equipment, components, SW, technology abroad. Export Community goods leaving the EU customs territory

19 Export Control Dual Use Annex I ANNEX I List referred to in article 3 of this regulation LIST OF DUAL USE ITEMS This list implements internationally agreed dual-use controls including the Wassenaar arrangement, the Missile Technology Control Regime (MTCR), the Nuclear Suppliers Group, the Australia Group and the Chemical Weapons Convention Notes Definitions Acronyms and abbreviations Category 0: Nuclear materials, facilities and equipment Category 1: Special materials and related equipment Category 2: Materials Processing Category 3: Electronics Category 4: Computers CONTENTS Category 5: Telecommunications and information security Category 6: Sensors and lasers Category 7: Navigation and avionics Category 8: Marine Category 9: Aerospace and Propulsion

20 Export Control Dual Use Annex I Updated October 22nd,

21 Export Control Dual Use EU MS Free trade of dual use goods between EU Member States Exception: Some very sensitive items mentioned in attachment IV of the dual use regulation. An export license is necessary for these goods

22 Export Control Catch all Items other than the ones mentioned in the EU list of Dual Use Items and Technologies (annex I dual use regulation) require an export authorization if: The authorities informed the exporter about the fact that the items are or may be intended For use in connection with weapons of mass destruction For a military end-use when the destination country is under an arms embargo For use as parts/components of military items from the military list previously exported without export authorization

23 Export Control Catch all (continue) The exporter was aware of any of the above uses he must notify its authorities which will decide if an export authorization is required Member States may adopt national legislation imposing an authorisation requirement if the exporter has grounds for suspecting weapon mass destruction related use

24 Export Control Military Export Controls These controls are a National prerogative, but each EU MS is obliged to implement and adhere to: The EU code of conduct on arms exports The list of controlled items as specified in the common military list of the EU

25 Military Export Controls Military export licenses are also necessary for transactions inside the EU National governments are allowed to impose additional national controls

26 Export Control Types of Export Authorizations

27 Types of export authorizations available in the EU: Dual Use

28 Types of military export licenses available in the EU

29 EU Sanctions and Embargoes Arms embargoes Sanctions against the proliferation of Weapons of Mass Destruction Economic and financial sanctions Restriction on admission (visa/travel ban) EU targeted sanctions as tool against terrorism

30 Arms Embargoes The UN as well as the EU and OSCE (Organisation for Security and Co-operation in Europe) have placed arms embargoes (arms, military equipment and equipment which might be used for internal repression) embargoes on certain countries. A list of these embargoes can be find in following database:

31 Restrictive Measures - Iran Export and import restrictions (on weapons, military equipment, dual use, essential equipment for Iran s oil, gas and petrochemical industry) Restrictions on investments Restrictions on transfer on gold, precious metals, diamonds, banknotes, coins and capital and financial services Maritime and aviation Freezing of funds and economic resources Latest update: JCPOA nuclear deal adopted by US & EU

32 Restrictive Measures North Korea Ban on export of goods and technology which could contribute to the programs of North Korea s nuclearrelated weapons, other weapons of mass destruction or ballistic missiles and related services Ban on purchase of goods and technology from North Korea Ban on exports of luxury goods to North Korea Freezing of funds and economic resources of persons, entities and bodies engaged in or providing support for these programs of North Korea

33 Restrictive Measures - Syria Arms embargo Ban on internal repression equipment Freezing of funds of certain persons and entities Oil embargo Withdraw technical assistance for European investment bank projects

34 Restriction Measures - Russia Embargo on arms and related material Dual use goods and technology if intended for military use Ban on imports of arms

35 Restrictive Measures - Overview An overview of restrictive measures per country can be find at following Link: This list is updated regularly

36 Export Control Transaction Party Screening Forbidden transactions with certain persons (entities and Individuals that: - Violate export regulations - Divert items to unauthorized users - Use items for prohibited activities - Are affiliated with sanctioned countries - Are drug traffickers or terrorists

37 Export Control Transaction Party Screening Useful Tool This site provides basic information of interest to EU Exporters (import duties, related taxes and documentary Import requirements applicable in export markets) List of all trade barriers affecting EU exports

38 Export Control Transaction Party Screening Useful Tool Step 1: Go to the exporters guide for import formalities Step 2: Select your target country by choosing from the options available in the drop down menu

39 Export Control Transaction Party Screening Useful Tool Step 3: Enter the product code

40 Export Control Transaction Party Screening Useful Tool Step 4: consult the list of applicable formalities and procedures: - Overview of import procedures - General requirements - Specific requirements

41 End Note Should you have a shipment, that causes you to have concerns regarding compliance with the Export Administration Regulations, or if you have other questions regarding export compliance, don t hesitate to contact BDP s Regulatory Compliance Center Of Excellence.

42 Please visit the BDP International website for a list of Import & Export 101 topics scheduled for 2015

43 Registration is required for each event. Upon successful registration, you will receive an with logon details If you wish to join our mailing list and receive invitations for future sessions, send an to:

44 Contact information Johan Dewachter Regulatory Compliance Executive Europe Phone: Mobile: johan.dewachter@bdpint.com Braderijstraat Antwerp Belgium To download today s presentation, please made note of the following link:

45 EU Export Control December, 2015 Johan Dewachter