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Export Controls

Dáil Éireann Debate, Wednesday - 19 January 2022

Wednesday, 19 January 2022

Questions (80, 81, 82)

Patrick Costello

Question:

80. Deputy Patrick Costello asked the Tánaiste and Minister for Enterprise, Trade and Employment the assessment criteria in relation to site inspections referenced on page 10 of the 2020 Report under the Control of Exports Act 2008; the extra security provisions for virtual inspections; the number of total inspections that took place; the number of inspections passed and failed; and if he will make a statement on the matter. [63429/21]

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Patrick Costello

Question:

81. Deputy Patrick Costello asked the Tánaiste and Minister for Enterprise, Trade and Employment the breakdown of the referrals to the Revenue Commissioners on page 10 of the 2020 Report under the Control of Exports Act 2008 by producer, country of destination; the rejection rate of these referrals; and the breakdown of the reasons for rejection. [63430/21]

View answer

Patrick Costello

Question:

82. Deputy Patrick Costello asked the Tánaiste and Minister for Enterprise, Trade and Employment the projected timeline for the completion of the review of terms and conditions for categories of export licences begun by his Department in 2020. [63431/21]

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Written answers

I propose to take Questions Nos. 80, 81 and 82 together.

The Department actively supports and participates in EU and global efforts to prevent the proliferation of weapons of mass destruction, to support regional security, to prevent terrorism and to protect human rights. It is the National Competent Authority in respect of Regulation (EU) 2021/821 of the European Parliament and of the Council setting up a Union regime for the control of exports, brokering, technical assistance, transit and transfer of dual-use items. The Department operates the highest standards of Export Controls, in accordance with EU law and international best practice.

‘Dual-use’ items are products and components, including software and technology, that can be used for both civil and military applications. The list of ‘Dual-use’ items subject to Export Control is set out in Annex 1 to Regulation (EU) 2021/821 . The bulk of ‘Dual-use’ exports from Ireland are mainstream business ICT products, both hardware and software, (networking, data storage, cybersecurity etc). They are categorised as ‘Dual-use’ items as a consequence of fact that they make use of strong encryption for data protection purposes.

My Department is also the National Competent Authority in respect of the Trade elements of EU Restrictive Measures i.e. trade sanctions.

The Programme for Government contains a clear commitment to the promotion of Human Rights through business practices and in particular, to rigorously scrutinise all applications for export licences for Dual-use items and Military equipment.

My Department administers controls on the export of Military equipment from Ireland, in accordance with the European Council Common Position 2008/944/CFSP defining common rules governing control of exports of military technology and equipment. The list of Military equipment subject to these controls is set out in the Common Military List of the European Union .

In keeping with the commitment in the Programme for Government, all applications for export licences are rigorously scrutinised by my officials, on a case-by-case basis, in accordance with the relevant legislation. Each application is reviewed against the eight assessment criteria set out in Council Common Position 2008/944/CFSP. Applications also reviewed against any EU Restrictive Measures, such as trade sanctions or arms embargoes, that may be in place in respect of the destination country.

The Department of Foreign Affairs has responsibility for Ireland’s international relations and global human rights. In this context, my officials seek the views of the Department of Foreign Affairs on all applications for ‘Dual-use’ and Military export licences.

Where appropriate, the Department also consults with Competent Authorities in other Member States.

The Office of the Revenue Commissioners may refer pending exports to the Department for a number of reasons: to clarify the details of an export licence presented with the goods as part of the export documentation; to verify that a licence has been properly authorised; or to confirm that a licence is not required.

The classification codes for ‘Dual-use’ items in the EU Regulation do not translate well to the Combined Nomenclature (CN) classification for goods, which underpins the operation of the harmonised Customs Union. A single CN code can apply to both controlled and uncontrolled goods. This can give rise to uncertainty as to whether goods presented at the point of departure from the Customs Union fall within the scope of Export Controls.

Revenue may also refer exports to known sensitive third countries for confirmation that the exports would not be in breach of EU trade sanctions.

In 2020 the Department received 165 referrals from Revenue with respect to exports to the following countries: Belarus, Russia, Zimbabwe, Libya, South Korea, United States, Syria, Myanmar, Yemen, Brazil, Pakistan, Sudan, Singapore, Zambia, Brazil, United Arab Emirates, Turkey & Canada. After investigation, all shipments were released. It is the long-standing policy of the Department not to release exporters’ details in order to respect exporters' commercial confidentiality and protect their security.

The purpose of a site inspection is to assess an exporter’s implementation of an Internal Compliance Programme (ICP). That is, its internal policies and procedures to ensure compliance with export controls and with the terms and conditions of licences. The assessment is carried out having regard to Commission Recommendation (EU) 2019/1318 on internal compliance programmes for dual-use trade controls This Recommendation identifies and sets out the core elements essential for an effective ICP.

EU Regulations require that exporters seeking an export authorisation implement an ICP in most circumstances. However, the Regulations do not provide for the certification of ICPs by Member States’ competent authorities, but rather require them to take into consideration the implementation of an ICP by the exporter when assessing licence applications. Therefore, the Department’s assessment of an exporter’s ICP during an inspection will inform the risk assessment for subsequent licence application by the exporter.

Virtual visits are conducted using industry standard, secure remote conferencing systems, which incorporate encryption and other security measures.

In 2020 Authorised Officers of the Department conducted 20 physical site visits and 25 virtual ones. Authorised Officers of the Department also conducted 35 outreach engagements in 2020.

The Department issues a range of export licences, pursuant to EU Regulations and the Control of Exports Act 2008. Licenses are issued subject to a set of Terms and Conditions regarding exports made under the licence. In 2020, the Department initiated a review the Terms and Conditions to ensure that they remain fit for purpose and are appropriate for the prevailing global security and human rights situation, and current business models (supply-chains, distribution channels etc). Following this review, in 2021 the Department introduced a new Global ‘Dual-use’ Licence with strengthened Terms and Conditions.

Work is underway within the Department to give the Terms and Conditions statutory footing and will bring forward legislation this year to provide an overarching legal framework for the introduction and revision of Terms and Conditions, along with robust powers of enforcement. The drafting of the Bill by the OPC is well advanced and it is my intention that the Bill will be published in Q1 2022, and my hope that it will be enacted before the end of 2022.

Question No. 81 answered with Question No. 80.
Question No. 82 answered with Question No. 80.
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