Three documents worth reading to avoid ‘inadvertent non-compliance’

For people involved in export controls, keeping an eye on all the latest regulatory changes and developments is a must.

Geopolitical events have a genuine impact on the trade of controlled goods with Roger Arthey, chairman of the IOE&IT’s Export Control Profession, saying it is vital companies have up-to-date knowledge to avoid “inadvertent non-compliance”.

Three useful resources

On sharing three useful resources for industry professionals, which can be found below, Arthey said:

“These three items represent a wide range of topics relating to export control.  All of them are of general interest to export control professionals, and some may contain information that is important in helping them to avoid inadvertent non-compliance.”

1. Technical report on AI and Strategic Trade Controls

The first resource is a report from the Center for International and Security Studies at Maryland (US) titled ‘Artificial Intelligence and Strategic Trade Controls’.

The report – published in June 2020 – analyses the “threats, trade linkages and mechanisms, and policy options” posed by AI and Machine Learning.

It has been published amid ongoing discussions in the US about applying controls on AI and MI technologies and applications.

The report’s conclusion is that “the existing and potential security risks of AI/ML technologies and future research, development, and deployment should be urgently addressed” as “these developments are … likely to increase the potential for harmful use”.

You can read the full report here.

The Strategic Trade Research Institute (STRI) and Center for International and Security Studies at the University of Maryland (CISSM) are also holding a Webinar on “Artificial Intelligence (AI) Applications for Managing Export Controls and Sanctions Risks”.

The webinar will feature presentations from Carl Wöcke of Merlynn Technologies and Scott Jones of the Strategic Trade Research Institute.

It takes place on July 9, 15:00 BST and you can register to attend here.

2. US controls to countries including China

The US has also amended regulation for US goods which could have a ‘military end-use’ in China, Venezuela or Russia.

In April, the Bureau of Industry and Security (BIS) announced that it would expand licence requirements for exports, reexports, and transfers (in-country) of items intended for military end use or military end users.

It specifically added licensing requirements for exports to China to include ‘military end users’ as well as ‘military end use’ – meaning it is now controlling exports of certain goods to firms it deems to be backed by the Chinese military..

The amended rules took effect on 29 June and you can read a useful FAQ on what they mean for exporters here.

3. The Exporter Magazine

The latest on-line edition of ‘The Exporter Magazine’ includes a useful section listing recent trade compliance changes or developments on pages 58-59.

Updates include the report on UK sanctions by RUSI (Royal United Services Institute) – the world’s oldest independent think tank on international defence and security – and an amendment to EU sanctions against Syria.

You can view the magazine online here.