The
Export Control Organisation (ECO) is part of Export Control and Non-Proliferation
Directorate (XNP) in DTI. ECO’s chief task is to process applications
for licences to export controlled military and dual-use goods and
technology from the UK. About 10,000 applications a year are processed,
together with around 3,000 “ratings”, i.e. advice to exporters about
whether a specific export needs a licence. Licences are approved
on the advice of FCO, MOD and, where sustainable development issues
are involved, DFID.
ECO has 150
staff and a running costs budget for 2003/4 of £5.329m. Administrative
support for finance and IT is provided by XNP directorate. An organisation
chart for the ECO is at Appendix 3 with a description of the functions
of each Unit.
The
Work of ECO
The
UK’s strategic export controls are based on national and international
commitments concerning transfers of conventional weapons, missiles,
chemical and biological weapons and nuclear-related goods and technology,
and components thereof. The commitments are enshrined in secondary
legislation in two control lists generally known as the Military List
(for goods/technology designed specifically for military use) and
the Dual-use list (for goods/technology which may have military or
civil application). Control lists are updated periodically to reflect
changes in these regimes. The UK also controls goods which are not
on the dual-use list but which may be used in connection with a WMD
programme. The current UK legislation dates from 1939 and will be
replaced by the Export Control Act 2002, which, with associated secondary
legislation, will be brought into force in April 2004.
Controlled
goods may not be exported, except with a licence issued by the Secretary
of State for Trade and Industry. DTI circulates licence applications
to FCO, MOD and DFID and issues or refuses licences on the basis of
their advice. Decisions are taken in accordance with the guidelines
and policy statements which HMG may issue from time to time. The
main current guidelines are the Consolidated EU and National Arms
Export Licensing Criteria. HM Customs and Excise enforce the licensing
regime and are responsible for prosecutions where breaches have occurred.
In
addition ECO administers controls on exports to destinations which
are subject to UN trade sanctions or EU/UK embargoes.
As
well as the core activities of processing licence applications and
ratings requests, ECO does the following:-
· provides
help for exporters, e.g. through a helpline, written guidance material,
a website, video (being updated) and programmes of seminars and workshops.
There are also two industry liaison groups
· enforces
compliance with the terms of “open” licences through regular company
visits
· records
data for the purpose inter alia of producing (with OGDs) the Government’s
Annual Report on strategic export controls
· participates
in work in the international regimes, updates the control lists, develops
new “open general” licences and contributes to export licensing policy
development in Whitehall
· participates
in FCO-led bilateral international outreach work to promote good export
licensing practice in other countries
· works
with OGDs on counter-proliferation activities
Performance
ECO’s work is covered
by a number of high-level targets that include both published targets
for the Government as a whole and internal ECO targets (see Appendix
2).
SIEL Applications
| SIELs |
2002 |
|
The
difference between the number of licences applied for and the
number issued or refused, is accounted for by applications that
were withdrawn or resubmitted, did not require a licence or
where processing had not been completed within the reporting
year.
*
approximate figure. |
| Applied
for |
11,000* |
|
| Issued |
8035 |
|
| Revoked
|
3 |
|
| Refused |
293 |
|
| Year |
Target |
1998 |
1999 |
2000 |
2001 |
2002 |
| Issued |
N\A |
9869 |
8967 |
8371 |
8092 |
8035 |
| Revoked
|
N\A |
6 |
8 |
16 |
8 |
3 |
| Refused |
N\A |
122 |
128 |
191 |
233 |
293 |
| Circulated
applications completed within 20 days |
70% |
52% |
57% |
57% |
60% |
59% |
| Applications
completed within the ECO’s internal processing target of 10
days |
80% |
----- |
75% |
78% |
80% |
76% |
Rating Service: Written Rating Requests
| Year |
Target |
1998 |
1999 |
2000 |
2001 |
2002 |
| Completed |
------ |
2356 |
2625 |
2209 |
2581 |
2987 |
| Circulated
applications
Completed within
20 Days |
90% |
85% |
64% |
51% |
56% |
51% |
| Un-circulated
applications
Completed within
10 days |
90% |
90% |
69% |
58% |
78% |
85% |
In addition rating
advice is provided to HM Customs and Excise, who made some 1133 requests
for advice in 2002 in respect of goods detained at ports.
OIEL applications
| Year |
1998 |
1999 |
2000 |
2001 |
2002 |
| Issued
or amended |
566 |
463 |
476 |
526 |
592 |
| Refused |
2 |
2 |
8 |
4 |
5 |
| Revoked |
0 |
1 |
1 |
0 |
0 |
Performance in 2002 and earlier
years was below the key target of finalising 70% of SIELs in 20 working
days. However ECO and OGD performance so far in 2003 has exceeded
this target. In addition there has been a significant reduction
in the number of cases which have been in the system for an extended
period pending a decision. In future there will be a renewed effort
to process appeals and ratings within the target periods.
Update on major ECO projects The Export
Control Act
The consultation on
the draft secondary legislation to be made under the Export Control
Act closed on 30th April. Analysis of the consultation
responses is underway and it is expected that the secondary legislation
will be laid before Parliament in October 2003. The timetable for
the coming into force of the Act after will be announced after careful
consideration of the responses to the consultation on the proposed
implementation periods.
Background to the Act: The Export Control
Act is the most comprehensive overhaul of the strategic export control
regime for over sixty years. Orders to be made under the Act will
introduce significant new controls, which will modernise and strengthen
the UK’s strategic export control regime. Significant new controls
on trafficking and brokering will help to prevent the UK from being
used as a base for irresponsible trade in arms which could contribute
to conflict or internal or external aggression. The Act also strengthens
the existing export control regime by giving the government new powers
to control the transfer of military technology by intangible means
and the provision of technical assistance. The Act increases transparency
and accountability by setting out the purpose for which export controls
may be imposed, and by providing for the formal parliamentary scrutiny
of secondary export control legislation.
JEWEL Project
The Government is committed
to improving the effectiveness and the efficiency of the export licensing
process. The JEWEL project (Joined-Up and more Efficient Working on
Export Licensing) is an internal review of processes seeking ways
in which the four principal Departments- DTI, FCO, MOD and DFID can
work together to make improvements.
The JEWEL Unit is responsible
for programme managing the review and will support any subsequent
implementation. The review is being taken forward by inter-departmental
teams tasked with looking at particular key aspects of the internal
process. The JEWEL unit provides support to these teams and is the
focal point for communication on the review. The key projects concern
IT, process flows and systems, liaison with exporters, performance
indicators and joint training and staff exchanges.
July 2003
APPENDIX 1: SUMMARY
OF MAIN LICENCE TYPES
Detailed below is a summary
of the main types of export licence. For full details of these licences
and other types, please refer to the ECO web site or help-line facility.
| Licence
Type |
Description |
| Standard
Individual Export Licences (SIELs). |
These
generally allow export of specified items in a specified quantity
to a specified consignee. |
| Open
Individual Export Licences (OIELs). |
These
are specific to an individual exporter and cover the multiple
export of specified items to a specified destination(s) and/or,
in some cases, specified consignees. |
| Open
General Export Licences (OGELs). |
These
allow the export of specified controlled items by any person,
removing the need for exporters to apply for an individual licence,
provided the items and destination are eligible and the conditions
are met. |
| Community
General Export Authorisation (CGEA) |
This
is the EU community equivalent of an OGEL. It allows the export
from the Community of a number of dual-use items. |
| Licences
to Sanctions Destinations |
Where
UN trade sanctions apply, there is no standard application form,
given the range of activities that may be controlled. Applicants
should first contact the ECO’s Sanctions Licensing Unit |
RATING ADVICE SERVICE
Rating
Advice Service |
This
service provides advice to exporters on whether or not a licence
is required in a particular instance. Normally requests for
such advice are dealt with through written correspondence. For
urgent enquiries technical advice can be provided orally over
the telephone. |
FURTHER
INFORMATION
| ECO
help-line facilities
Telephone
(020) 7215 8070
Fax
(020) 7215 0558
E-mail
ECO.help@dti.gsi.gov.uk |
The
help-line facility provides advice on export licence types as
well as general enquiries and details of other ECO services. |
| ECO
website
www.dti.gov.uk/export.control. |
Provides
access to information on the ECO’s services, current legislation
and other related topics |
Appendix 2:
PUBLISHED GOVERNMENT TARGETS
Government targets
for the work of the ECO are published in a Service and Performance
Code. A summary of these targets is provided below. For full details
of applicable conditions please refer to the Service and Performance
code.
| Performance
Issue |
Target |
SIEL
Processing |
Substantive
response within 20 working days of receipt of application to
70% of applications1.
Note: Most SIELs
applications require circulation to other Government Departments. |
| Rating
Service:
Written enquiries |
Where
consultation with other Government Departments is not required,
full response within 10 working days of receipt of request. |
| Where
consultation with other Government Departments is required,
full response within 20 working days of receipt of request. |
| Rating
Service:
Telephone enquiries |
Oral
response within 24 hours of receipt of request. |
| Appeals
against refusal for a SIEL application |
A
decision on appeals within 30 working days of receipt of all
relevant information from the applicant.
Note: The appeal
must be submitted within 28 working days of the date of the
refusal letter. |
| Responding
to complaints |
To
provide a substantive response to written complaints within
15 days of receipt. |
ECO HIGH LEVEL TARGETS
| 1 |
ECO
turnaround time for SIEL applications:
80%
of applications processed in 10 working days. |
| 2 |
ECO
turnaround time for OIEL applications:
80%
of applications processed in 30 working days. |
| 3 |
Government
turnaround time for SIEL applications:
70%
of applications1 processed in 20 working days. |
| 4 |
Government
turnaround time for SIEL applications:
90% of applications processed
in 60 working days and 100% within 120 working days. |
| 5 |
Absence
of material errors in the assessment of the requirement for
an export licence (“rating”) – 100%. |
| 6 |
ECO
substantive input to Annual Report on Strategic Export Controls,
completed for previous year by end of March (this excludes
final checks, proof-reading etc). |
| 7 |
No
material errors found in Annual Reports on Strategic Export
Controls. |
| 8 |
ECO
turnaround time for rating requests: complete 90% of non-circulated
Ratings within 10 working days. |
| 9 |
Government
turnaround time for rating requests: complete 90% of circulated
Ratings within 20 working days. |
| 10 |
To
provide a decision on appeals within 30 working days from receipt
of all the relevant information from the appellant. |
Appendix 3: ECO
STRUCTURE AND ORGANISATION
Appendix 3: ECO STRUCTURE
AND ORGANISATION (continued)
The functions and
responsibilities of the ECO’s operational units are summarised below.
| Unit
/ sub-Units |
Activities
and Responsibilities |
| LICENSING
GROUP
SIELs Unit
OIELs Unit
Compliance Unit
Sanctions &
Casework
Licensing Unit
Licence Reception,
Storage and
Retrieval
Business Support
Unit
Business Development
Unit
JEWEL Unit |
Licensing
Group processes all export licenses received by the ECO from
UK exporters. The Group is split into the following Units:
Responsible
for processing SIEL applications for military and dual-use goods.
Responsible
for processing OIEL applications for military and dual-use goods.
Responsible
for the Code of Practice for Export Control and auditing exporter
compliance with open export licence conditions and OGEL registration.
Responsible
for processing licence applications to sanctions destinations.
The Unit also has responsibility for handling complex SIEL applications,
some policy and legal work and processing exporter appeals against
licence application refusals.
Responsible
for the receipt, acknowledgement and importation onto the ECO’s
databases of all new SIEL and OIEL applications together with
their off-site storage and subsequent retrieval. The Unit is
also responsible for contacting exporters holding temporary
licences to seek confirmation of the return of the goods to
the UK.
Is
the focal point for the collation of statistics relating to
LG’s need to answer Parliamentary Questions and for the Annual
Report on export controls.
Responsible
for continuous improvement activities associated with licensing
processing, ECO improvement projects and some cross XNP activities.
Responsible for
programme managing the JEWEL review. |
| POLICY,
COMMUNICATIONS AND ENFORCEMENT GROUP
Policy Unit
Communications
Unit
Enforcement
Unit |
Policy,
Communications and Enforcement Group comprises three main sub-Units.
The
Unit is responsible for: pursuing DTI objectives in policy issues
and legislation relating to strategic export controls and sanctions
affecting trade; ensuring that current legislation and Open
General Export Licences (OGELs) meet HMG’s obligations without
burdening business unduly. The Unit is also responsible for
co- ordinating responses to the Quadripartite and other select
committees, Parliamentary Questions and Open Government casework,
including ad hoc requests for export licensing information from
other Government Departments, MPs or others.
The
Unit is responsible for organising seminars and awareness events,
Export Control publications, training materials, the ECO’s internet
site and Subscription Service.
The
unit also supports the FCO on bilateral export control outreach
to other countries. The Unit is responsible for running the
ECO telephone Help-line and deals with general enquiries received
by fax, letter and e-mail. In addition the Unit has responsibility
for the formal complaints procedure.
EU
is responsible for collating information on end users of goods
(particularly those who may be engaged in weapons of mass destruction
programmes or who are in countries which are the subject of
military embargoes) and ensuring that it is applied to the licensing
and rating processes. It therefore takes a close interest in
information about breaches or likely breaches of export controls
and liaises closely with other Government Departments. It works
with HM Customs and Excise and occasionally the Police, on investigations
into breaches of export controls and on preparing export control
prosecutions. The Unit also works with companies and trade
associations to improve their awareness of the weapons of mass
destruction end use control |
| TECHNOLOGIES
UNIT
TU Operations
TU Specialists
TU Administration
and Support |
TU
comprises a multi-disciplinary team of engineers and scientists.
It is an in-house resource that provides expertise on export
control legislation, which is largely technologically based
and covers a broad range of technologies. TU is split into two
sub-Units:
Responsible
for contributing to the development of Export Control Goods
lists in international fora and advising on their incorporation
in to legislation. TU Specialists also work closely with and
provide advice to TU Operations in the interpretation of export
controls and advise on some technical issues.
Responsible
for providing administrative support to TU Operations with respect
to SIELs, the Rating Service and enquiries from HM Customs and
Excise. |
| The
EXPORT CONTROL ACT IMPLEMENTATION TEAM |
The
ECAIT’s role is to implement the Export Control Act 2002. The
team is responsible for developing the policy and administrative
arrangements for the implementation of the new controls to be
introduced under the Act on trafficking and brokering in military
equipment (trade), the electronic transfer of military technology,
transfer by any means of technology relating to weapons of mass
destruction (WMD) and missiles capable of their delivery, and
the provision of WMD technical assistance.
The
team is responsible for managing the consultation process on
the draft secondary legislation, finalizing the secondary legislation
with lawyers, preparation of the Regulatory Impact Assessment,
devising new means of administering the new controls, co-ordinating
and informing the work of colleagues in XNP and OGDs in preparing
for the introduction of the new controls, and the provision
of guidance and awareness raising in XNP, colleagues in Business
Relations and with industry. The team is also responsible for
laying the statutory guidance on the exercise of licensing powers
before Parliament.
The
team’s duties also include briefing Ministers, OGDs and colleagues
on issues relating to the Export Control Act, responding to
the recommendations of the Quadripartite Committee on the secondary
legislation and dealing with Parliamentary Questions, Ministerial
and treat official correspondence and ad hoc enquiries on the
ECA from industry and others. |
