UK overhauls export control licensing regime and tightens controls on exports to China

The UK government is setting out substantial revisions to its licensing criteria for strategic export controls, which, it says, will henceforth be known as ‘the Strategic Export Licensing Criteria’. The changes come following a government review of the UK export control regime.

In a statement to Parliament, Anne-Marie Trevelyan, Secretary of State for International Trade, said that the eight criteria will be applied ‘with immediate effect to all licence decisions (including decisions on appeals) for export, transfer, trade (brokering) and transit/transhipment of goods, software and technology subject to control for strategic reasons (referred to collectively as “items”); and to the extent that the following activities are subject to control, the provision of technical assistance or other services related to those items.’

Amongst the criteria are: a principle that the UK government will take into account ‘The behaviour of the buyer country with regard to the international community, as regards in particular its attitude to terrorism and transnational organised crime, the nature of its alliances and respect for international law;’ and ‘The compatibility of the transfer with the technical and economic capacity of the recipient country, taking into account the desirability that states should achieve their legitimate needs of security and defence with the least diversion for armaments of human and economic resources.’

In addition, she said, the government will be ‘taking steps to enhance the Military End-Use Control,’ in effect, expanding the scope of the ‘catch-all’ control.

Trevelyan said, ‘Currently, the control can only be applied to the export of otherwise non-controlled items which are intended for use as components in, or production equipment for, military equipment in an embargoed destination. This does not allow us to fully address threats to national security, international peace and security, and human rights arising from the use of non-listed items by the military, police or security forces, or entities acting on their behalf, in an embargoed destination.

‘We will therefore be amending the definition of “military end-use” to remove this limitation. The control would only be applied where the Government informs the exporter that the proposed export is or may be intended for a military end-use in an embargoed destination. To minimise the impact on legitimate trade, there will be exemptions for medical supplies and equipment, food, clothing and other consumer goods.’

And, she said, the review ‘also concluded that there were anomalies and inconsistencies within the UK’s export control regime. As a result of this review, China will be added to the list of those destinations subject to military end-use controls.’

The change to the military end-use control and addition of China to the military end-use control list would, she said, come into force in Spring 2022.

https://questions-statements.parliament.uk/written-statements/detail/2021-12-08/hcws449