1. www.eu-outreach.info EU-Thailand Cooperation in Export Control Catch-all controls Ms. Carmen Kovac, M.Sc., Slovenia carmen.kovac@gov.si

2. EU-Thailand Cooperation in Export Control 2 Reasons for Catch-all controls  To have better control system  To be able to control goods and technologies not on control lists  More targeted and monitored controls  End–use and end-users focused controls  Additional tool for authorities / companies  Greater awareness of industry about sensitive exports

3. EU-Thailand Cooperation in Export Control 3 History of Catch-all controls  The USA and Germany introduced the catch-all system in 1991,  the EU introduced the catch-all clause in 1995  Between 2002 and 2007, the four main multilateral export control regimes all added similar catch-all clauses to their guidelines.

4. EU-Thailand Cooperation in Export Control 4 EU legal basis and scope of use Article 4 of the Dual-Use Regulation (Council Regulation (EC) No 428/2009 of 5 May 2009 setting up a Community regime for the control of exports, transfer, brokering and transit of dual-use items) Non - listed items intended for:  WMD end-use  military end-use in embargoed destination  use as parts or components of illegally exported military items, listed in the national list

5. EU-Thailand Cooperation in Export Control 5 Catch - all - not always  In each case of use, the authorities  must send a ‘catch-all warning’ to the exporter specifying the grounds for the licensing requirement  Furthermore, an exporter who is aware that an item he or she plans to export is or may be intended for one of those uses must notify the authorities, which can decide whether to impose a licensing requirement  Possibility for EU Member State (EU MS) to impose an authorisation requirement if the exporter has grounds for suspecting the catch all use

6. EU-Thailand Cooperation in Export Control 6 To impose a C atch - all When  Authority  gets a specific information on an export or a project of concern  determines sensitive countries of destination  gets a notification from exporter which needs further assessment  customs has blocked a specific transaction,… How  Contacting the exporter and asking to apply for a licence  Issuing immediate denial in emergency case

7. EU-Thailand Cooperation in Export Control 7 End use : End user role in C atch- all  information that the items in questions which are going to third countries may be used in connection with the proliferation activities of nuclear weapons, biological or chemical weapons, or missiles; or military end-use in countries under arms embargo. The authorities should notify the exporter The exporter should notify/apply for a licence

8. EU-Thailand Cooperation in Export Control 8 End use : End user  information that the End-user of the goods or technologies in question will be involved in, is involved in or has been involved in the development, manufacture, use and storage of nuclear, biological or chemical weapons, or missiles; or military end-use in countries under arms embargo. The authorities should notify the exporter The exporter should notify/apply for a licence *not necessary when, considering usage or type of transaction, the said goods or technologies are clearly not going to be used in the development etc. of WMD /military use, even if the end-user conditions apply

9. EU-Thailand Cooperation in Export Control 9 Risk assessment and techniques  Unacceptable risk of use or diversion  Plausibility of the stated end use (profile of the end user, quantity, volume,..)  % potential of misuse  Information about the end-user  Existing denials  Sensitivity of country of destination

10. EU-Thailand Cooperation in Export Control 10 Risk management and techniques  Gathering and exchanging information before and after decision on catch-all  Interagency cooperation (esp. licensing office, customs, intelligence,…)  International cooperation, denials lists  Exchange of best practices  Industry awareness

11. EU-Thailand Cooperation in Export Control 11 Dealing with C atch-all in Slovenia  Dual use controls – Ministry of Economy  Not to broaden the scope of licences  Work on industry awareness raising  Encourage exporters to contact MoE ahead for preliminary opinion (“hypothetical application process” with as much info as possible but no end-use statement required)  Consider sensitive destinations  Use intraministerial commission to gather the information  Notify exporter on the decision

12. EU-Thailand Cooperation in Export Control 12 Decision on C atch-all Classification for decision on catch -all:  Further information is needed:  More information on the end-user and connection with projects of WMD or military end-use in countries under arms embargo  More information on the product and its functionality

13. EU-Thailand Cooperation in Export Control 13 Examples (1) Case No 1 of non-listed item  Chemical manufacturing facilities, equipment and components (laboratory equipment) with lower performance than in 2B350.  Sensitive End-user in a country of concern.  Decision “Catch-all” and a probable “catch-all denial”  Denial and Notification of denial to the EU and EU Member States

14. EU-Thailand Cooperation in Export Control 14 Examples (2) Case No 2 of non-listed item  Pumps with special flow-rate but not all surfaces made of special material as in 2B350.i.  The End-user not sensitive  Decision NO ”catch-all”

15. EU-Thailand Cooperation in Export Control 15 Examples (3/1) Case No 3 of not listed item  Aluminium alloy in round bars with anultimate tensile strength less than 460 MPa, outside diameter > 75 mm (ref. 1C202.a).  The end-user sensitive in a country of concern.  Further information needed

16. EU-Thailand Cooperation in Export Control 16 Examples (3/2) Case No 3 of non-listed item ( cont. )  Q: Could the end user further harden aluminium alloy to reach higher ultimate tensile strength?  Decision: “catch-all” imposed, n otification of exporter to apply for a licence  Assessment by intraministerial commission  A: “not possible” established  Licence granted

17. EU-Thailand Cooperation in Export Control 17 Examples (4/1) Case No 4 of non-listed item  “Preliminary opinion”  Joule- Thomson cryogenic cooling system with larger bore diameter than controlled (6A002d.2.b:JT mini coolers having bore (outside) diameters of less than 8mm)  Physics laboratory in country of concern for WMD  Stated end use: for testing of IR detectors at cryogenic temperatures of around 80K

18. EU-Thailand Cooperation in Export Control 18 Examples (4/2) Case No 4 of non-listed item ( cont. )  Ministry of Economy asked exporter if he is aware or suspects that the item will be used in connection with WMD  Intraministerial commission checked “hypothetical application” with info on country, end user, plausibility of end use, functionality of the product, possible upgrade, potential misuse..  Checked existed denials  Decision: No “catch all” - exporter notified

19. EU-Thailand Cooperation in Export Control 19 Catch all ! Thank you for your attention !