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Brokering Arrangement Permit Frequently Asked Questions

How do I apply for a brokering permit?

You can submit an Application to Make a Brokering Arrangement to DEC. In order to be eligible to hold a permit to broker DSGL goods, software or technology, you must first be a registered broker.

A brokering arrangement application generally takes 15 working days to assess from when a completed application is received. This may be extended to 35 working days, and sometimes longer, if the application needs to be referred to other agencies.

An application may be for a particular arrangement or for more than one arrangement that includes brokering DSGL goods, software or technology from several suppliers. Permits can be valid for up to 5 years or longer if necessary. Where you need to broker regularly for the duration of a long term project, you may be granted a permit valid for the life of the project. The flexibility and validity period of permits will depend on the assessed risks and timeframes associated with the brokering activity. It is important to provide as much information as possible about your brokering activity in your application so that DEC can issue the most appropriate permit to suit your needs.

Can I still use brokering arrangement permits that are current, if my broker registration expires?

No. If your broker registration expires (and is not renewed) any permit that you hold will cease to be in force and cannot be used.

Can I apply for both a Broker Registration and a Brokering Arrangement Permit at the same time?

Yes.

Are there record keeping requirements?

Brokers must keep records for 5 years. Record-keeping requirements, as outlined in section 24 of the Defence Trade Control Regulation 2013, are:

Some brokering permits may require you to submit regular reports to DEC. The condition on the permit will list specific reporting requirements. It is important that you read your permit carefully and comply with all conditions listed on your permit. It is an offence to breach a condition of a brokering permit.

Under what criteria will my application for a brokering permit be assessed?

The Minister for Defence or an authorised delegate may issue a permit if they are satisfied that the activity would not prejudice the security, defence or international relations of Australia. Your application will be assessed using the criteria listed in Section 8 of the Defence Trade Controls Regulation 2013, which relate to national security, regional security, international obligations, human rights and foreign policy.

What happens if I broker Defence and Strategic Goods List (DSGL) goods, software or technology without a permit?

Defence uses a voluntary compliance model. Where the person is willing, and is attempting to do the right thing, Defence's response to non-compliance will generally reflect the level of cooperation displayed by the person and therefore responses will likely involve awareness raising initiatives to help reduce the risk of further non-compliance.

However, in situations of continued non-compliance Defence may take appropriate measures to address this including imposing more stringent conditions and requirements, revocation of permits, or the possible prosecution of offences.

The offence for brokering of Part 1 (Munitions List) DSGL goods, software and technology without a permit is up to ten years imprisonment or 2500 penalty units (equating to a fine of $450,000) or both. The main offence provisions under the Defence Trade Controls Act 2012 came into force on 2 April 2016. The offence provisions can not be applied retrospectively.

If you believe you have been non-compliant, we recommend you disclose this to DEC immediately. Voluntary disclosure demonstrates an intention to comply with export control obligations and is the basis for DEC's regulatory relationships.

We also have further information about establishing an internal compliance program which may be helpful.

What happens if I receive a notice to apply for a permit to broker Part 2 (Dual-Use) Defence and Strategic Goods List (DSGL) goods, software and technology?

If a notice is issued, the Minster or an authorised delegate will notify you in writing of the decision including the reasons for doing so, unless they reasonably believe that the disclosure of the reasons would prejudice the security, defence or international relations of Australia. The notice will specify the Part 2 (Dual-Use List) DSGL goods, software or technology and any destinations which will require a brokering permit.

The notice will remain in force until it is revoked or lapses.

It is an offence to broker Part 2 (Dual-Use List) DSGL goods, software or technology without a permit or contravene a condition of the notice, if you know the notice is in force. The penalty is up to ten years imprisonment or 2500 penalty units (equating to a fine of $450,000.00) or both.

Can a notice to apply for permits to broker Part 2 (Dual-Use List) Defence and Strategic Goods List (DSGL) goods, software or technology be revoked?

Yes, the Minister or an authorised delegate can revoke a notice to apply for permits to broker Part 2 (Dual-Use List) DSGL goods, software or technology depending on who issued the notice.