Trade Control Awareness

This course is mandatory for all MADG employees and should take approximately 30 minutes to complete (there is no time limit). The course includes questions that are scored - you will need to score 80% correctly in order to pass the course.

For any questions please contact [email protected]

Introduction

Introduction

Most of us recognise exports as any physical item shipped outside of the UK. This is correct but there is also many more instances where an export can occur. You need to understand that information and data can also be export controlled and that transfers of controlled material within the UK can also constitute an export.

Export controls can often be complex but compliance is vital. This course will help you understand the types of activities or transactions that might require an export approval and will help you to safely and compliantly carry out your role at MADG.

Remember: this course will only provide you with an awareness and whenever you feel some extra guidance is necessary when carrying out your role the Trade Control team are always on hand to help.

What are trade controls and why do they exist?

What are trade controls?

Trade controls are restrictions imposed by governments on the movement, transfer, use, re-export, re-transfer of certain goods, software and technical data, as well as restrictions on the provision of technical assistance.

Why do we have trade controls?

As a country we must comply with our obligations set out in several multilateral export control regimes that the UK is signatory to. These regimes ensure national and collective security by addressing Weapons of Mass Destructions (WMD), regional instability, internal repression and human rights violation concerns.

How is MADG impacted by trade controls?

To comply with trade control regulations MADG entities are required to obtain appropriate export approvals prior to exporting the items/information or prior to providing technical assistance.

What are trade controls?

  • Restrictions imposed by governments
  • Restrictions imposed by companies
  • Restrictions imposed by customers
  • Restrictions imposed by suppliers

Why do we have trade controls?

  • Trade Controls help prevent the proliferation of Weapons of Mass Destruction
  • Trade Control regulations are optional for UK companies who export
  • Trade Controls help MADG to import goods

Triggers for Control

The 4 Triggers of Control

These are known as the 4 triggers of control and each of these can trigger a requirement for a licence or other approval in order to export the item:

Product

Here are some examples of products that can be controlled:

A fighter jet is unsurprisingly a military item and therefore would appear on a control list and would be export-controlled.

Any item that is specifically designed for a military purpose or specifically designed for an item already listed on a control list will be export-controlled.

Any information such as manuals and reports which accompany a controlled item or which contain technical data about a controlled item will also be controlled.

Controlled information can also be exported intangibly by means of email, file sharing sites, web page downloads or even telephone conversations.


End-use

An example of who end-use controls work:

This example is extreme but imagine the same theory being applied in a more realistic scenario.

Imagine being approached by a new customer who wants to buy an aircraft part that we have in stock. They are reluctant to share with you why they want the part and from your research they are a brand new company who do not seem to own any aircraft. It is our responsibility to understand the end-use of an item before we export it.

End-user

We can screen all of our business partners against global sanctions lists by using the Dow Jones screening tool. Licences are held by the Trade Control team who can carry out this process for you and who can advise on any results found. This screening is compulsory for all new business partners and should be carried out at the earliest opportunity.

Destination

Sanctions and embargoes exist in many different forms and are determined by international  organisations such as the United Nations but can also be determined by individual governments. 

This results in varying regimes being adopted by different countries.

What are the 4 triggers of control?

The 4 triggers of control are product, end-use,  and destination. The item/product itself may be controlled. There are lists of  and if an item is listed it is controlled. The ultimate end-use of the item may make the item controlled as some end-uses are controlled regardless of whether the item itself is controlled. The end-user can be sanctioned or listed on terrorist lists and this could make the  controlled.

Which of the following items could potentially be controlled?

UK and US Export Regulations

UK Export Regulations

US Export Regulations

ITAR

EAR

What are the main differences between UK and US export regulations?

  • Put your answer option here
  • Put your answer option here

Match the terms with their definitions:

  • Define your key...
    Define your answer...
  • Define your key...
    Define your answer...

Match the shipment movement with the definition:

  • US Export
  • US Re-export

Which authority has jurisdiction over ITAR?

How does it affect me?

I am travelling abroad for business - what order should I do the following:

  • Alert export about my trip.
  • Book flights/accommodation etc.
  • Raise a despatch for any export controlled items or data I am taking (including laptops containing that data)
  • Collect export documentation for the export controlled items or data I am taking.
  • Set of on my trip!

Consequences of Non-Compliance

Consequences of Non-Compliance

Contacts and Feedback

Contact information:

If you need to get in touch with the Trade Control team they are located in ASC1 on the first floor. They can also be reached via the following:

Laurence Carey - Group Trade Control Manager - [email protected] - ext. 2497

Anna Dziuba - Trade Control Officer - [email protected] - ext. 3891

Ellie Wynne - Trade Control Officer - [email protected] ext. 2365

There are also Company Export Control Focals (CECFs) who act as the main point of contact for each MADG entity and their details can be found on the Trade Control intranet accessible via [email protected].

Please provide some feedback on this awareness session: