Defence Export Controls (DEC) assess all allegations of non-compliance to determine the level of action required. If a breach is reported, Defence will hold the details in strict confidence.
Defence works with individuals and companies to identify the causes of non-compliance and assists them put measures in place to prevent future recurrences.
DEC can assist with compliance obligations for the new offences under the Defence Trade Controls Act 2012, which can be accessed via the MADE portal including:
- Compliance Self-Audit: Audits allow exporters to monitor the rate of compliance under Australia’s export control laws. To assess their level of compliance, entities can voluntarily conduct a self-audit by using the Compliance Self-Audit Checklist. If via the completion of a Self-Audit, a suspected, potential or actual breach of Australia’s export control laws is identified, a Voluntary Disclosure Report should be completed.
- Voluntary Disclosure Report: Defence encourage stakeholders to submit a Voluntary Disclosure Report for any suspected non-compliance in relation to the export of controlled goods, technology or services.
Assessment and response
Defence may consider the following factors in responding to the disclosure:
- whether the entity came forward with a timely, accurate and comprehensive disclosure
- whether the non-compliance was deliberate intent, negligent or due to a lack of understanding
- risks to Australia’s national interest and international obligations arising from the non-compliance
- whether the non-compliance was an isolated event or a recurring issue
- any export and compliance history, including commitment to internal compliance procedures of an appropriate standard.
Defence’s preferred approach to managing non-compliance is one of prevention. However, in some circumstances, Defence may initiate more formal corrective measures, including:
- outreach and education
- formal warning letters
- new and/or more restrictive conditions on permits (including broker registrations)
- revocation of permits and broker registrations.
Referrals to enforcement agencies
Defence may also refer severe or repeated cases of non-compliance to enforcement agencies together with recommendations for investigations, inspections and other possible punitive action.