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Compliance

Policy Objectives

The effect of Defence Trade Control policy is to encourage trade and a heightened scrutiny of controlled exports to ensure industry compliance with domestic legislation. Policy also dictates that Australia must meet with its international obligations. The objective of this policy is to ensure that a governing framework of export controls is implemented fairly and rigorously and to expected standards.

Fundamentals of Compliance

In the case of the export industry, a fully effective compliance program is based on a simple premise which is that Industry participants:

are educated and made aware of the rules for compliance;
are given the opportunity to comply with those rules;
those people are monitored for their compliance with the rules; and
if they do not comply, they are appropriately sanctioned.

The Compliance Continuum

Compliance Aims and Objectives

Through its compliance activities, DECO aims to ensure the exporting community complies with their obligations in the export of controlled and/or unlisted goods.

To do this, DECO through consultation with key stakeholders, has constructed and continues to deliver compliance programs for relevant industry sectors that are well reasoned and targeted to high compliance risk areas.

No aspect of the compliance continuum is mutually exclusive, each function relies on the other so as to achieve industry compliance with relevant legislation, licensing and permit conditions and Australian commitments to the aims of International Regimes. To make sure that DECO satisfies legislative requirements, there are three key objectives and these are:

Industry Education and Awareness

Provide the Exporter with education and awareness of relevant legislation and detail their obligations so that they can fully comply with those requirements;

Monitor Industry for their Compliance

Continuously monitor for industry compliance in the exportation of defence and dual-use goods that may assist a weapons of mass destruction program.
Implement effective and timely management of information.

Law Enforcement

Conduct enquiries into alleged instances of non-compliance and where necessary, enforce relevant legislation.

Compliance Strategies

DECO has two key strategies to carry out its Compliance activities and these are to Maximise Voluntary Compliance and Create an Effective Deterrence.

Strategy 1
Maximising Voluntary Compliance

Demonstrate the benefits of export control measures by providing adequate information and education;
Engage key stakeholders in compliance planning on an Industry and National level and in the development of the legislative framework;
Implement complementary compliance programs across all industry sectors;
Demonstrate the capacity to rapidly adapt compliance programs in response to changing circumstances;
Allocate compliance funding sufficient to achieve optimal compliance;
Continually monitor and report on effectiveness; and
Ensure that export control laws are administered and enforced fairly, reasonably and cost effectively.

Strategy 2
Creating Effective Deterrence

Deliver the optimal mix of compliance functions appropriate for each industry sector;
Utilise Risk Management principles in compliance planning;
Implement cost effective strategies for maximising detection of offences;
Continually monitor and report on effectiveness; and
Maintain the effectiveness and integrity of compliance staff through advanced training, processes and accountable decision making.

Compliance Model

DECO uses the following compliance model to assist in responding to and working with Industry in partnership. DECO values Industry participation in programs designed to assist with legislative compliance.

Internal Compliance Programs used by the Australian Export Industry - A Guide

Any good business practice aims to increase profits whilst remaining within the law and conducting business in an ethical manner. To assist the Export Industry, DECO has prepared this guide for all Exporters to:

streamline company export control business practice;
ensure that exports comply with Australian law;
ensure the Australian Export Industry does not inadvertently contribute to a proliferant state’s weapons program; and
avoid adverse or critical media attention as a result of poor internal export control procedures that may result in a tarnished business reputation and business losses.

Business Practices

Corporate Governance concerning export controls may require adjustment to current business processes and organisational culture. Below are some areas for consideration when developing an internal company export control system.

Establish a policy and standardise procedures so as to avoid violation of export-related laws and regulations and damage to the company;
Maintain transparent decision-making and responsibilities for exports;
Ensure that an 'export - responsible' executive is appointed to centralise control for ensuring policy compliance by the company and its employees or agents;
Develop regular contact between company export control officials and DECO;
Develop a company charter outlining principles for controlling the export of your company's products and services; and
Conduct in-house training in the new company export control procedures and policies for all staff.

Developing policies and implementing them will take time and effort and so DECO personnel are available to assist in terms of advice and training. Developing an export controls awareness within your company makes business sense.

Example Only

Your Company

Export Control Principles

As a company we attach a high priority to the goal of non-proliferation of weapons and their delivery systems over commercial interests.
All company employees will actively assist in the achievement of these non-proliferation goals. Relevant employees will learn, and strictly abide by, applicable national and international export control legislation and requirements.
Even if a particular export is legal, this company will neither directly nor indirectly supply commodities, technology or services if the company knows or has reason to believe that such items will be used by the customer or end-user for the development or production of Weapons of Mass Destruction or their delivery systems. This policy applies to states that:
- are not signatories to the Non- Proliferation Treaty or an equivalent international treaty; or
- do not have in place full-scope IAEA safeguards or if there is any doubt about their implementation; or
- are 'sensitive' for other reasons.
This company will exercise the same restraint domestically, if the firm has reason to believe that its products are to be diverted to nuclear weapons projects in sensitive countries.
The company will maintain regular contact and consultation with government agencies connected with export policy to track countries and goods of concern. In the event of any doubt about a transaction, this company will contact responsible agencies for information and advice. If concerns continue about the end-use of an item, this company will not export it.