The old SPIRE system for export licensing is being slowly retired as the government switches to a new system.
The Export Control Joint Unit (ECJU) is bringing in a new system called Licensing for International Trade and Enterprise (LITE).
It’s estimated that £15bn worth of exports are ‘strategic’ in nature and so will likely need to use standard individual licenses, which will be the focal point of the new LITE system.
The ECJU said that a number of changes had been made including to the 2008 Export Control Order and updates to 13 open general licences. The most pertinent issue is technology updates, which could catch some traders unawares.
Schedule 3 has been updated to include new controls for some emerging technologies. This is an area of interest because a lot of new businesses that are bringing this new technology to market – that would normally come under dual use – may not be aware that their project can be licensable.
There have been updates to a couple of the open general export licences (OGELs).
OGEL 1 deals with re-transfers between Australia, Canada and UK, while OGEL 2 handles re-exports between Australia, Canada and the UK.
A re-transfer is defined as any change in the end user or end use, a temporary transfer to a third party or a release of technical information to a person who is a citizen or permeant resident of another country.
You already need to have prior approval before you can retransfer data, and you need to ensure that the company that you’re sending it to is also on the approved list, this also applies to re-exports under OGEL 2.
The US Senate is considering changes to legislation that would make transfers and trade between the US, UK and Australia flow more easily.
To take advantage of this, you have to be an approved vendor which is the major barrier for many companies at the moment.
If the US approves the move, UK traders will only need to have a UK OGEL in order to enjoy unrestricted trade for approved entities between the US and Australia.