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 Denials for tangibles: 1 Prohibitions for intangibles: 0 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total Permits issued under Customs Act 614 587 514 621 2336 Permits issued under Defence Trade Controls Act 51 35 67 116 269

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

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 13E promote robust internal compliance programs graduated approach to addressing compliance breaches draft Compliance Policy Statement

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