1. 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

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

3. 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 controlled
Defence Trade Controls Act controlled
Weapons of Mass Destruction Act 1995 – ‘catch all’
International regimes (Australia Group, Missile Technology Control Regime, Nuclear Suppliers Group, Wassenaar)
Key Assessment Criteria

4. 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

5. 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

6. 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

7. 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

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

9. DEC - Current Trends
Export application approvals delivered for FY
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

10. DEC - Current Trends
Performance against mandated assessment timeframes for FY
Details available at:
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%

11. DEC - Current Trends
Usage of the DSGL Online Tool for FY

12. Applications from universities and researchers
Total of 174 applications for FY
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

13. 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

14. 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

15. 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

16. 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

17. Defence Export Controls
Questions?