Legislation

The Defence Trade Controls Bill 2011 will introduce provisions to strengthen Australia ’s export controls for defence and strategic goods, technology and services, and implement the Australia-United States Defence Trade Cooperation Treaty. The new provisions will introduce controls to govern brokering and the intangible transfer of technology.

The Customs Amendment (Military End-Use) Bill 2011 will also introduce a provision to strengthen export controls by amending the Customs Act 1901. The Customs Amendment (Military End-Use) Bill 2011 will include a power to prohibit the export of ‘non-regulated’ physical goods that may contribute to a military end-use that may prejudice Australia’s security, defence or international relations.

History

The Defence Trade Controls Bill 2011 and the Customs Amendment (Military End-Use) Bill 2011 were both introduced into Parliament on 2 November 2011 and passed by the House of Representatives on 21 November 2011.

The exposure draft of the Defence Trade Controls Regulations 2012 was released for public consultation from December 2011 to February 2012.

The Defence Trade Controls Bill 2011 has been referred to a Senate Committee, which has recommended that the Department of Defence undertake further consultation with the academic sector. The Senate Committee is due to report back to the Senate on 15 August 2012.

If you have any questions about the Bills or the Regulations, call the DECO hotline number on 1800 661066 and select option 2 to speak with the Treaty Implementation team.

 

Customs (Prohibited Exports) Regulations 1958, Regulation 13E

Australia controls the export of defence and dual use goods under the legal framework provided by Section 112, of the Customs Act 1901 and the Customs (Prohibited Exports) Regulations 1958, Regulation 13E. Exports of all items covered by Customs (Prohibited Exports) Regulations 1958, Regulation 13E requires an export permit or licence approved by the Minister for Defence or a delegate of the Minister.

The Customs Act 1901 provides penalties for persons and/or companies who unlawfully attempt to export controlled goods without a permit or licence. The unlawful export of controlled goods, as specified in the DSGL, constitutes a tier 2 offence and could be subject to a fine not exceeding 2,500 penalty units or imprisonment for up to 10 years, or both. In addition the goods as well as a conveyance used for the unlawful export of the goods may be seized and forfeited to the Commonwealth.

Weapons of Mass Destruction (Prevention of Proliferation) Act 1995 (WMD Act)

The object of this Act is to ensure, so far as the Constitution permits, that goods are not supplied or exported, and services are not provided, in circumstances where the goods will or may be used in, or the services will or may assist, the development, production, acquisition or stockpiling of weapons that are capable of causing mass destruction or missiles that are capable of delivering such weapons. The WMD Act provides for the control of items that do not appear on any existing control lists, but which could be used to contribute to the development of WMD. Goods or technology assessed as falling within the scope of the WMD Act require a permit which is issued by DECO.

The WMD Act imposes substantial criminal penalties for breaching the prohibitions on the supply of tangible and intangible goods and services that may contribute to a WMD program. Criminal penalties of up to eight years imprisonment can be imposed for breaching the WMD Act.

Charter of the United Nations Act 1945

The Charter of the United Nations Act 1945 relates to the UN Security Council Resolutions and the implementation of Sanctions. UN sanctions are:

In Australia, the administration of sanctions is the responsibility of the Department of Foreign Affairs and Trade. Sanctions can include arms embargoes, bans on the import / export of certain commodities’, travel sanctions, financial restrictions, civil aviation restrictions; and may also include down-grading or suspension of diplomatic ties.

Criminal Code Act 1995

Penalties apply for giving false information when applying for a permit or licence. Any person who makes a false or misleading statement in an application for a permit, licence or certificate may be prosecuted for an offence under Section 136.1 of the Criminal Code Act 1995 and, if convicted, face a maximum penalty 1 year imprisonment and/or a fine of $6 600 for an individual or $33 000 for a corporation.

Other Associated Legislation