Source · Select Committees · Committees on Arms Export Controls
Recommendation 19
19
Accepted in Part
We are concerned by the increase in recent years of the numbers of companies found...
Conclusion
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 62) 46 Developments in UK Strategic Export Controls
Government Response Summary
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 the committee's concern about information.
Government Response
Accepted in Part
HM Government
Accepted in Part
ECJU take its compliance requirements seriously and takes a robust approach. It undertakes intelligence and risk profiling with a focus on new exporters, exporters with previous compliance concerns, or where engagement with HMRC and Border Force suggests an audit would be appropriate. To mitigate compliance risks ECJU compliance team works closely with HMRC so that any appropriate follow up enforcement action can be properly considered by them. This intelligence led and priority focused audit approach will therefore naturally lead to higher rates of non-compliance being found, especially in routine compliance visits. The effectiveness of such compliance visits is demonstrated by the significant reduction in non-compliance during revisits: an 86% reduction in 2019 and 2021, and 88% reduction in 2020. ECJU will also review the methodology of reporting in future Annual Reports to better demonstrate the effectiveness of these visits. The purpose of compliance visits is not only to ensure compliance with open export/trade licence terms and conditions, but to also educate and inform companies on UK export control issues, recent changes to open licences and legislation, improvements to record keeping processes to facilitate responsible exports and provide general awareness on UK export controls.