Records are important in showing an audit trail of each activity that occurs under a permit, or under an exemption/exception. Accurate record keeping is fundamental to Australia's defence export controls legislative framework.
Obligations
Records must be retained for 5 years from the date of supply of the export, under the Defence Strategic Goods List (DSGL). These records must be retained in accordance with section 58 of the Defence Trade Controls Act 2012 (DTC Act).
Defence can request a copy or production of records for inspection and retain these records under sections 58–61 of the DTCA.
Records must be kept for activities conducted:
- under a permit issued under section 11 of the DTCA
- under any DTCA exemption/exception
- by approval holders who are Approved Australian Community members for the purposes of the Australia-US Defence Trade Cooperation Treaty.
Additional obligations may apply for pre-notification requirements when using the AUKUS exemption (i.e. licence-free environment) to conduct an export under reg 13E of the Customs (Prohibited Exports) Regulations 1958, or a supply under s10 of the DTC Act.
Failure to retain or produce records upon request (as required under the DTCA) may be an offence.
Record keeping
Obligations may arise depending on the type of activity, items or permit conditions.
The DTCA and Defence Trade Controls Regulation 2013 do not prescribe the form the records must take, only the information that records must include.
Organisations (exporters)
Permits require record keeping for:
- a description of the DSGL item supplied or DSGL services provided
- name of person(s) to whom the DSGL goods or technology were supplied, or services provided
- dates of activity
- unique identifier of permit.
Exemption/exception require record keeping for:
- a description of the DSGL item supplied or DSGL services provided
- country in which the DSGL goods, technology, or services were received.
Ensure the Export Declaration Number and Defence Export Controls permit numbers are recorded against the organisation’s activities, even if they’re conducted through a shipping agent.
For multi-shipment permits, record the number of items exported or supplied each time. This also ensures managing the quantity against the approved permit quantity.
All exporters lodging an Export Declaration must retain commercial documentation for 5 years as per the Customs Act 1901.
Brokers
Persons who hold a permit for brokering under section 16 of the DTC Act must maintain certain records, including:
- a description of the DSGL goods or technology
- the unique identifier of the permit under which the broker arranged a supply
- the name of any person the broker arranges to supply DSGL goods or technology
- place at which the DSGL goods or technology are to be received by that person
- the date of any arrangement made under the permit
- the place the DSGL goods, technology and services were supplied from.