Recommendations & Conclusions
46 items
1
Conclusion
First Joint Report - Developments in U…
Acknowledged
We are disappointed at the continued reluctance of the Government to offer the Foreign and International Trade Secretaries of State to provide us with oral evidence. This risks giving the impression that the Government do not attach the appropriate importance to parliamentary scrutiny of strategic export controls. While we appreciate …
Government response. The government acknowledged the committee's important scrutiny role and commitment to engagement, referencing a recent ministerial visit and regretting past scheduling issues, but did not commit to offering the named Secretaries of State for oral evidence or longer sessions.
2
Recommendation
First Joint Report - Developments in U…
Accepted
We acknowledge that the Annual Report contains a substantial amount of information that is helpful for our inquiries and that strategic export controls cover a wide range of areas so it is not always clear which specific topics will arise as our inquiry proceeds. However, it is regrettable that the …
Government response. The government notes the committee's expectations, highlighting that the Annual Report is substantive and that ECJU has already provided extensive written information throughout the inquiry to supplement it, suggesting current practices are sufficient.
3
Conclusion
First Joint Report - Developments in U…
Acknowledged
Whilst we welcome the information contained in the Strategic Export Controls Annual Report, stakeholders argue it is too descriptive of events and does not drill down sufficiently to provide qualitative or quantitative analysis of the data. We share stakeholders’ concerns about the transparency of information available on Open Licences, especially …
Government response. The government expresses gratitude for the committee's perspective and requests more specific input from stakeholders on how to improve data presentation in future publications. It also highlights that data on open licences is already available through its searchable database.
4
Recommendation
First Joint Report - Developments in U…
Deferred
We recommend that the Government improve the data that is available on Open Licences. The Government should publish data in the quarterly “pivot reports” on the precise equipment and quantities exported, the companies exporting the equipment and its intended destination, and each Strategic Export Controls Annual Report should include an …
Government response. The government states that current systems cannot provide precise equipment and quantity data for OIELs. It commits to considering what data would be most valuable for transparency when OIELs functionality is added to the new LITE system at a later …
5
Recommendation
First Joint Report - Developments in U…
Accepted in Part
We share our predecessor committees’ concerns over the continued delays in delivering the new LITE IT system. The rollout of the new LITE IT system must be progressed urgently. In response to our report the Government should set out a specific timeline for each stage of the transition and the …
Government response. The government stated that the LITE IT service is being progressed urgently and is a live, functioning service being delivered in phases. It committed to providing six-monthly updates on progress but did not provide a specific timeline for each transition …
6
Recommendation
First Joint Report - Developments in U…
Acknowledged
A new IT system should not reduce the amount of publicly available information. We seek assurances that the LITE system will enable greater transparency on Open Licences and include a public searchable database as exists under the current SPIRE system. To increase transparency on exports, the Government should enhance the …
Government response. The government states that a core design objective of the LITE system is to support transparency objectives and enable scrutiny of the licensing process by stakeholders, but it does not provide specific assurances on features like a public searchable database …
7
Conclusion
First Joint Report - Developments in U…
Acknowledged
We appreciate the hard and diligent work of ECJU staff during the Covid pandemic. We recognise that this has been a busy time for the ECJU, with COVID related delays causing additional difficulties.
Government response. The government appreciated the committee's recognition of ECJU staff's efforts during the COVID-19 pandemic and elaborated on how the unit maintained services and supported exporters during that challenging period.
8
Recommendation
First Joint Report - Developments in U…
Accepted
We welcome the decision to launch the ECJU Transformation Programme and the opportunity it provides to improve and reform the work of the ECJU and its relationships with stakeholders. However, given the duty of DIT to inform us of relevant developments, it is disappointing that the Department did not do …
Government response. The ECJU commits to providing the Committee with regular updates on its transformation and continuous improvement activities, establishing a new dedicated engagement team, and delivering a new stakeholder engagement strategy in 2023.
9
Recommendation
First Joint Report - Developments in U…
Accepted in Part
It is also disappointing that the Government has not published terms of reference outlining the aims and remit of the ECJU Transformation Programme. The Government should publish the terms of reference for the ECJU Transformation Programme, and provide us with six-monthly updates on the Programme, including progress on its intended …
Government response. The government declined to publish formal terms of reference, stating the Transformation Programme is internal and its aims were already communicated. However, it committed to providing the committee with regular updates on the transformation and its continuous improvement activities.
10
Recommendation
First Joint Report - Developments in U…
Accepted in Part
We welcome the consultation that has taken place with the unions. This must continue and the Government must ensure that they draw on the expertise of ECJU staff at all levels. We also welcome the customer survey of exporters. However, this engagement should go further We recommend that the Government …
Government response. The government stated the Transformation Programme is internal but committed to creating a new dedicated team and stakeholder engagement strategy in 2023 to establish formal mechanisms for consistent industry engagement. It did not commit to a broader public consultation.
11
Recommendation
First Joint Report - Developments in U…
Accepted
We are concerned by evidence regarding insufficient resources within the ECJU, particularly technical and specialist roles and Compliance Officers. The ECJU Transformation Programme should include a review of ECJU resources. Future editions of the Annual Report should include data on ECJU resources including staff levels by grade, post and parent …
Government response. The government acknowledged recruitment challenges but stated that ECJU has made positive progress in filling vacancies, recruiting specialist staff, and expanding its presence, implying existing measures address resource concerns without committing to a specific review or new reporting.
12
Recommendation
First Joint Report - Developments in U…
Not Addressed
It is important that an independent assessment takes place of whether the Transformation Programme achieves its intended outcomes. Therefore, we recommend that two years after completion of the Programme the NAO undertake a review of the structure, performance and value for money of the ECJU to ensure it is fit-for-purpose. …
Government response. The government's response details ongoing internal scrutiny by the Government Internal Audit Agency but does not commit to the recommended independent review by the National Audit Office two years after the programme's completion.
13
Conclusion
First Joint Report - Developments in U…
Acknowledged
We are concerned about the lack of consultation on the new Strategic Export Licensing Criteria. While we note that previous changes to the criteria have not Developments in UK Strategic Export Controls 45 been subject to formal consultation, we believe that the unique circumstances of the UK’s withdrawal from the …
Government response. The government notes the committee's conclusions regarding the lack of consultation on new Strategic Export Licensing Criteria and explains the rationale for the amendments made, citing alignment with international obligations and strategic objectives.
14
Conclusion
First Joint Report - Developments in U…
Acknowledged
We thank the Secretary of State for International Trade for writing to us setting out the background to the new Criteria. However, we would have appreciated prior notification and consultation on the changes. Prior scrutiny of, and consultation on, these changes with Parliament and stakeholders more widely, would have helped …
Government response. The government noted the committee's conclusion and explained that discussions about the changes to the Criteria only began late in 2021, leading to the decision to amend them without prior consultation.
15
Recommendation
First Joint Report - Developments in U…
Accepted in Part
In response to our report, the Government should set out which countries’ systems, from inside and outside the EU, that it considered when drafting the new Criteria. The Government should also explain the processes it has put in place to ensure continued cooperation with the EU on strategic export controls. …
Government response. The government stated it benchmarked against the US, Germany, France, and Sweden when developing its approach. However, it rejected the recommendation for an independent review as unnecessary and disproportionate, and did not explain processes for continued EU cooperation.
16
Recommendation
First Joint Report - Developments in U…
Deferred
We acknowledge that the EU arms control rules (other than the dual-use items) in Common Position 2008/944/CFSP are part of the CFSP, rather than trade policy, and could therefore have been included in an EU/UK foreign policy agreement but that the UK Government rejected such an agreement. However, we are …
Government response. The government acknowledges benefits from EU information sharing but defers any action, stating that future cooperation would be subject to broader UK-EU negotiations and could only take place in that context.
17
Recommendation
First Joint Report - Developments in U…
Accepted in Part
We welcome the increase in trained Compliance Inspectors mentioned in the 2021 Annual Report. In response to our report the Government should give further details of this increase in Inspectors, including the numbers of Inspectors employed, details of the work they are undertaking and how they are measuring the impact …
Government response. The government provides details of five current Compliance Inspectors and the recruitment of three more, stating their current focus on priority intelligence-led visits, but does not explain how they are measuring the impact of this change.
18
Recommendation
First Joint Report - Developments in U…
Not Addressed
We also welcome the internal review carried out by the Compliance Team in 2021 and changes made to the operating model to better assist the prioritisation of site inspections. We recommend that the 2022 Annual Report includes an analysis of the outcomes of this work.
Government response. The response reiterates the number of Compliance Inspectors and their current focus, failing to address the recommendation to include an analysis of the outcomes of the Compliance Team's work in the 2022 Annual Report.
19
Conclusion
First Joint Report - Developments in U…
Accepted in Part
We are concerned by the increase in recent years of the numbers of companies found to be non-compliant after a revisit and the lack of information given in the Annual Reports on specific companies and countries for findings of non-compliance. This raises questions over the effectiveness of compliance visits. (Paragraph …
Government response. The government defends its robust compliance approach and states the effectiveness of visits is demonstrated by reduced non-compliance on revisits. It also commits to reviewing the methodology of reporting in future Annual Reports to better demonstrate visit effectiveness, partially addressing …
20
Recommendation
First Joint Report - Developments in U…
Acknowledged
In response to our report, the ECJU should give greater detail and analysis on the reasons identified for companies being found to be non-compliant, especially after a revisit. This analysis should also be included in future editions of the Annual Report as part of efforts to improve transparency.
Government response. The government explains that GDPR and confidentiality restrictions limit the release of identifying information but commits to considering how best to present information in future Annual Reports to improve transparency of the compliance process within these constraints.
21
Recommendation
First Joint Report - Developments in U…
Accepted
Providing exporters with training will always improve compliance results and make the compliance visit process run more smoothly, particularly when companies do not export regularly. We recommend that the Government actively encourage more peer-to-peer, trade bodies or ECJU Awareness training opportunities.
Government response. The government commits to developing a new engagement strategy to actively seek more peer-to-peer, trade body, and ECJU Awareness training opportunities, including restarting face-to-face events, providing training courses, and improving digital resources.
22
Recommendation
First Joint Report - Developments in U…
Accepted in Part
We are also troubled by the concerns expressed regarding the level of technical knowledge within ECJU and the reported reduction in technical experts accompanying compliance officers on compliance visits. We recommend that the ECJU ensure that technical experts accompany compliance inspectors on a greater number of visits and that the …
Government response. The government states that ECJU plans to reintroduce technical experts attending in-person compliance audits where beneficial, but does not explicitly commit to a greater number or a review of overall expertise levels within the Transformation Programme.
23
Recommendation
First Joint Report - Developments in U…
Accepted
We welcome HMRC’s increase in resources for Customs A/B. In response to our report, HMRC should set out how it will measure the impact and effectiveness of these increased resources.
Government response. The government accepted the recommendation, outlining that HMRC will use existing management information tools to measure the impact of increased Customs A/B resources, including case numbers, resolutions, and border interventions, with this data to be provided in annual submissions.
24
Conclusion
First Joint Report - Developments in U…
Accepted
Given the apparent low level of strategic exports and sanctions prosecutions, especially in recent years, we are disappointed that when we asked if the Government had any plans to review the effectiveness of the relevant legislation, they simply stated that enforcement was a matter for HMRC. HMRC are responsible for …
Government response. The government states that export control legislation is already kept under regular review to ensure effectiveness and that ECJU will continue to work closely with HMRC on enforcement, implying no new action is needed despite the committee's concerns.
25
Recommendation
First Joint Report - Developments in U…
Accepted
We can find no explanation for the lack of published data on convictions for export controls violations, especially as this information has been provided to us in written evidence when requested. We recommend that the data provided to us on individual convictions on export controls/customs violations should be included in …
Government response. The government accepted the recommendation and committed to HMRC providing convictions data for export control violations for inclusion in future Annual Reports.
26
Recommendation
First Joint Report - Developments in U…
Rejected
We have noted the record compound settlement agreed in early 2022 and understand the issues surrounding the public disclosure of further information relating to such settlements. However, we see no reason why data such as the name of the company, the item being exported and the destination, cannot be provided …
Government response. The government rejects the recommendation to provide private data on settlements and steps to recover unlicensed goods, citing disclosure protocols under the Commissioners for Revenue and Customs Act 2005.
27
Recommendation
First Joint Report - Developments in U…
Acknowledged
Despite the Government undertaking to examine the possibility of establishing a system of post-shipment verification for UK exports, no progress appears to have been made. While we fully understand the pressures of, and the need to respond Developments in UK Strategic Export Controls 47 urgently to, the Covid pandemic, the …
Government response. The government acknowledges the value of post-shipment verification and is continuing to explore how it might undertake PSV activity in the future, promising an update when available.
28
Conclusion
First Joint Report - Developments in U…
Acknowledged
We do not envisage a UK post-shipment system as replacing the need for stringent checks and robust application of the licensing criteria at the application stage. Rather such a system should be seen as complementary to the pre-licence checks and equally important as even with the best pre-licence systems, there …
Government response. The government recognizes the value of post-shipment verification as a complement to pre-licensing checks and is continuing to explore how it might undertake PSV activity in the future and will provide an update to the Committees as soon as it …
29
Recommendation
First Joint Report - Developments in U…
Acknowledged
While recognising that it is not practicable to carry out post-shipment verification for all exports, we recommend that the Government instigate a pilot programme by 2025 of post-shipment verification. This should include on-site inspections to examine the resource implications and potential benefits of post-shipment verification. We agree with our witnesses …
Government response. The government is continuing to explore how it might undertake post-shipment verification activity in the future and will provide an update to the Committees as soon as it is in a position to do so.
30
Recommendation
First Joint Report - Developments in U…
Acknowledged
We welcome the inclusion of an export controls section in the FCDO’s annual Human Rights and Democracy Report. However, consideration of human rights should also be better mainstreamed into future Strategic Export Controls Annual Reports. We recommend that future Strategic Export Controls Annual Reports demonstrate, by including examples, how the …
Government response. The government will consider how future Strategic Export Controls Annual Reports can best demonstrate how it takes the list of human rights priority countries into account in licensing decisions and exercising export controls, without compromising national security or commercial confidentiality.
31
Conclusion
First Joint Report - Developments in U…
Accepted
We note the high-level of concern that exists regarding exports to Saudi Arabia and her coalition partners of items that may be used in the conflict in Yemen. This conflict is tragic and we call on all sides to give renewed urgency to finding a solution. It is of the …
Government response. The government has learned lessons from the Court of Appeal judgment and has taken steps to improve the mechanisms for sharing information and intelligence between departments that make up the ECJU; it assesses all export licences for Saudi Arabia and …
32
Recommendation
First Joint Report - Developments in U…
Rejected
By the end of 2022, the Government should commission an independent examination of whether the Mills Review outcomes have been successfully implemented and have led to the intended outcomes. It is vital lessons are learned so as to not see a repeat of this in respect of other countries of …
Government response. The government does not believe that a further independent examination of the Mills Review outcomes is necessary or proportionate, citing the full review of extant licences to Saudi Arabia overseen by senior officials and legal counsel following the Court of …
33
Recommendation
First Joint Report - Developments in U…
Accepted
We are concerned that previous exports to Saudi Arabia may demonstrate an inconsistency in the application of the previous Consolidated Criteria. In response to our report the Government should set out its reasons for deeming that such exports are not in breach of the Criteria. The Government should also set …
Government response. The government states that all export licence applications are assessed on a case-by-case basis against the Consolidated Criteria, and that the new Strategic Export Licensing Criteria provide a robust framework for assessing export licence applications to Saudi Arabia.
34
Recommendation
First Joint Report - Developments in U…
Acknowledged
We commend the UK Government for voting in favour of renewing the mandate of the Group of Experts on Yemen. However, we are alarmed that the majority of international delegates voted to end the mandate. We urge the Government to seek to work with international partners to reverse this decision …
Government response. The Government welcomes the commendation for its vote and notes the alarm that the mandate failed, stating they continue to work with international partners to explore alternative ways to ensure continued monitoring and reporting on the human rights situation in …
35
Conclusion
First Joint Report - Developments in U…
Acknowledged
While we fully support the Government prioritising the evacuation of people over the repatriation of equipment, we are concerned about reports of military items that are now in the hands of adversaries following the withdrawal of coalition forces from Afghanistan. We support the decision to remove Afghanistan as a permitted …
Government response. The government acknowledges the concerns about military items in the hands of adversaries in Afghanistan and notes the committee's support for removing Afghanistan as a permitted destination for Open General Export Licences.
36
Recommendation
First Joint Report - Developments in U…
Accepted
While the priority should always be the safety and evacuation of people, we seek assurances that the Government plans for the risk of military items falling into the hands of adversaries when undertaking operations, especially when planning the withdrawal from conflict zones. In response to our Report, the Government should …
Government response. The government recognizes the importance of planning for the risk of military items falling into the hands of adversaries and states it has robust mechanisms in place, including risk assessments, contingency planning, and close coordination with allies, and that lessons …
37
Recommendation
First Joint Report - Developments in U…
Accepted
We welcome the Government’s swift action on exports to Hong Kong following the Chinese Government’s decision to impose a National Security Law there. This illustrates how an export control system should work; by being adaptive to changing circumstances and the heightened danger of such exports being used for internal repression. …
Government response. The government welcomes the Committees’ support for its swift action on exports to Hong Kong and will use this as an example of best practice and examine the lessons that can be learned for situations where the response has not …
38
Conclusion
First Joint Report - Developments in U…
Accepted
We welcome the Government’s action in October 2019 to not grant further export licences to Turkey for items that might be used in military operations in Syria. However, we are concerned that no information was given on action taken in respect of exports for which licences had already been granted.
Government response. Following the 2019 announcement regarding exports to Turkey, the government suspended all extant export licenses for items that might be used in military operations in Syria and conducted a thorough review, revoking some licenses and seeking assurances for others.
39
Recommendation
First Joint Report - Developments in U…
Accepted
In response to our Report, the Government should set out the steps it took in respect of licences already granted prior to the October 2019 announcement. In the interest of transparency, the Government should also provide details of the additional assessments that were made and the factors taken into account …
Government response. Following the 2019 announcement regarding exports to Turkey, the government suspended all extant export licenses for items that might be used in military operations in Syria and conducted a thorough review, revoking some licenses and seeking assurances for others.
40
Recommendation
First Joint Report - Developments in U…
Accepted
We welcome the sanctions put in place following the annexation of Crimea in 2014 and the invasion of Ukraine in 2022. However, it is unacceptable that the EU sanctions legislation in 2014 included a prior contracts clause permitting licences where the export concerned the execution of an obligation arising from …
Government response. The government will ensure that future sanctions legislation does not include a prior contracts clause, to prevent the export of goods that could be used to undermine security or violate international law.
41
Recommendation
First Joint Report - Developments in U…
Accepted
We are very concerned about continuing reports of UK components being found in Russian systems. In response to our report, the Government should set out the actions it is taking, in conjunction with allies. to close down Russia’s ability to acquire replacement foreign-made components that are critical to its systems. …
Government response. The Government states it is already taking robust action, in conjunction with allies, to close down Russia’s ability to acquire replacement foreign-made components, including strengthening export controls and working with industry.
42
Recommendation
First Joint Report - Developments in U…
Deferred
We acknowledge that the decisions regarding the sanctions imposed on Russia in 2014, that made the export of specified equipment for use in the oil industry in Russia subject to a licence, were made at an EU level. However now the UK has left the EU, in response to our …
Government response. The government will respond to this recommendation in a classified annex.
43
Recommendation
First Joint Report - Developments in U…
Deferred
We accept the Government’s assertion that it keeps all licences under review and that they have the power to suspend, refuse or revoke licences as circumstances require. However, we also accept the considerable and longstanding concerns over arms exports to Israel especially where they might be used in the Occupied …
Government response. The government will respond to this recommendation in a classified annex.
44
Conclusion
First Joint Report - Developments in U…
Acknowledged
The quickening pace of technology advancements and the expected changes in the character of conflict will require swift and holistic action to ensure that the current international approach to technology governance remains fit-for-purpose. (Paragraph 134) 50 Developments in UK Strategic Export Controls
Government response. The government notes the committee's conclusion regarding technology governance and states that discussions about changes to the Criteria began in late 2021, leading to amendments aligning them with international legal obligations and strategic export objectives.
45
Recommendation
First Joint Report - Developments in U…
Rejected
The Government should review the impact of technological change and the evolution of the character of conflict and in its response to this report outline what changes it believes are necessary to make to current international agreements and arrangements on the control of the military and dual-use items. The Government …
Government response. The Government believes its export control policy is effective and efficient, and does not consider an independent review necessary or proportionate.
46
Recommendation
First Joint Report - Developments in U…
Deferred
The rapid advancement of new technologies such as spyware is a major challenge for export control regimes. Given the Government’s assertion that it is inappropriate to move intrusion software and related licensable goods and technology into Category A of the UK’s trade controls system, in response to our report the …
Government response. The government will respond to this recommendation in a classified annex.