Defence Trade Controls Act Implementation experience to date

Defence Trade Controls Act – Implementation experience to date Tina Mathewson Assistant Secretary Defence Export Controls (DEC) Defence Industry Policy Division Strategic Policy and Intelligence Group

Overview • Defence Export Controls (DEC) – Who we are • Defence Trade Controls Act 2012 • Defence Export Controls - Current Trends • Engagement with Academic and Research Sector

Defence Export Controls (DEC) – Who we are • 35 staff • Regulate export of defence and strategic goods and technology – 5000 permits/advices/certificates per year • Legislation – Customs (Prohibited Exports) Regulations 1958 - controlled – Defence Trade Controls Act 2012 - controlled – Weapons of Mass Destruction Act 1995 – ‘catch all’ • International regimes (Australia Group, Missile Technology Control Regime, Nuclear Suppliers Group, Wassenaar) • Key Assessment Criteria

Defence Trade Controls Act 2012 • Regulates: – Intangible supply of controlled technology – Publication of controlled military technology – Brokering the supply of military goods and technology: • military goods, software and technology listed on the Defence and Strategic Goods List; and • tangible and intangible

Defence and Strategic Goods List Missile Technology Control Regime Australia Group Defence and Strategic Goods List (DSGL) = Chemical Weapons Convention Nuclear Suppliers Group Wassenaar Arrangement

Implementing the DTC Act • 2 year consultation with stakeholders – Strengthened Export Controls Steering Group – Outreach Programmes • Concerns from academic and research sectors • Amendment legislation • 1 year Implementation period • In force 2 April 2016

Legislation Review • DTC Act review provision: – Initially after 2 years (due April 2018) – Then every 5 years • The review process: – continued learning from stakeholders informed by experience – export controls are effective and balanced • Review process will commence in 2017

DEC - Current Trends • Total Applications received during FY 2015 -16 • Includes permits, in-principle approvals, Export Control Assessments and advice to Government agencies

DEC - Current Trends • Export application approvals delivered for FY 2015 -2016 Comparison: Tangible vs. Intangible 1 st Quarter 2 nd Quarter 3 rd Quarter 4 th Total Quarter Permits issued under Customs Act 614 587 514 621 2336 Permits issued under Defence Trade Controls Act 51 35 67 116 269 Denials for tangibles: 1 Prohibitions for intangibles: 0

DEC - Current Trends • Performance against mandated assessment timeframes for FY 2015 -16 1 st Quarter 2 nd Quarter 3 rd Quarter 4 th Quarter Average Non-sensitive applications assessed within 15 days 95% 94% 93% 83% 91% Sensitive/complex applications assessed within 35 days 92% 90% 89% 91% • Details available at: http: //www. defence. gov. au/Export. Controls/Statistics. asp

DEC - Current Trends • Usage of the DSGL Online Tool for FY 2015 -16

Applications from universities and researchers • Total of 174 applications for FY 2015 -16 – Tangible permits issued: 19 – Intangible permits issued: 20 – Export Control Assessments: 122 – Other (withdrawn, lapsed and in-principles): 13 • Low numbers due to 2 April 2016 start date

Engagement with the Academic and Research Sector • Assists the sector to comply with intangible technology controls • Approach includes: – nominating dedicated DEC points of contact – creating website scenario-based training – developing sector-specific guides

Case Study 1 • Institute was concerned regarding the export of a live culture of bacteria: – Part of an international research collaboration – Strain not listed on the DSGL – Goods have a WMD peripheral use – Other strains of bacteria are controlled • Sought advice from DEC: – Engaged with the institute – Assessed risk of posed by the export was low • End use, end user, destinations – Provided advice allowing export • Institute was able to export: – without delays – no intervention from the Australian Border Force

Case Study 2 • Research institute wanted to provide data to an international research institute as part of a research collaboration: – Included methods and results – Applied to DEC for an Export Permit • DEC: – Engaged with the institute – Assessed technology to be controlled under DTC Act – Provided permit within four days of receiving application • Institute was able to: – Provide data with supporting documentation from DEC – Complete research and collaboration without concern

Looking Forward • Ongoing legislative reviews – Customs (Prohibited Exports) Regulations 1958 – Review of DTC Act through 2017 / 2018 • DTC Act compliance framework – consistent with Regulation 13 E – promote robust internal compliance programs – graduated approach to addressing compliance breaches – draft Compliance Policy Statement

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