To mark the recent launch of the Chartered Institute of Export & International Trade’s Export Control Advisory Practice, we’re considering the significance of these measures: their purpose, relevance and how businesses can adhere to them.
In an era of heightened geopolitical tension and conflict, countries are more frequently revising their rules on how military goods, and those that could serve a military purpose, are traded. This requires businesses to be up-to-speed and responsive, with strong internal systems in place to make sure they comply with these rules.
Their importance
Export controls are rules applied by governments to control the overseas sale and movement of certain goods, technology and information. These rules are important because they help prevent weapons, sensitive technology or harmful items from falling into the wrong hands. They also make sure countries follow international laws and agreements.
Companies that trade internationally must adhere to export controls to avoid legal consequences, fines and reputational damage. Breaking these rules, even by accident, can lead to serious problems, such as losing access to key markets or being banned from trading altogether.
AUKUS and export controls
One agreement from which many UK export controls are derived, affecting many businesses in sectors including defence, nuclear, manufacturing, marine and technology, is AUKUS – a security deal between Australia, the UK and the US.
Created in 2021, it aims to enhance defensive capabilities in the Indo-Pacific, especially with China’s growing power in the region. It focuses on sharing advanced technologies, like nuclear-powered submarines, artificial intelligence and cyber tools.
Because AUKUS involves high-tech and sensitive information, export controls have grown in importance. They ensure dangerous technologies don’t end up in the wrong hands and protect goods like military equipment and dual-use goods (items with both civilian and military uses). Export controls also ensure countries follow international agreements, such as the Nuclear Non-Proliferation Treaty.
The sharing of nuclear-powered submarine tech is significant for Australia’s defence, given that it’s a country without nuclear weapons. Strict controls are required to make sure this technology is only used for peaceful and safe purposes, meaning that AUKUS partners must create strong laws and systems to manage this sharing process.
By following export control rules, partners can build trust and avoid risks. Although governments and industry must also cooperate to ensure these rules don’t disrupt legitimate trade. In this way, AUKUS demonstrates how countries can work together to balance innovation with security.
What can you do?
To trade compliantly and avoid falling foul of export controls, many businesses build an Internal Compliance Programme (ICP). An ICP acts as a company guidebook for following export control rules. It documents internal processes, including practical steps employees must take to check whether products need a licence, to train new joiners on export rules and to ensure accurate recordkeeping.
An accurate, regularly updated ICP can help businesses avoid mistakes, improve efficiency and build trust with partners and governments. This protects their business and helps make the world a safer place.
Chartered Institute support
The Chartered Institute has a suite of tailored products to support your business to trade controlled items compliantly. These are brought together under our new Export Controls Advisory Practice.
You can receive different levels of guidance depending on your organisation’s needs, from an international trade surgery, designed to troubleshoot operational concerns and queries, through to a session of strategic insights, offering executive-level advice on optimising your compliance.
These sessions will be delivered by one our trade and customs advisors, with expertise in handling controlled goods honed through years of industry experience.
