Posted: 05 Mar. 2019 3 min. read

No Deal Brexit: New OGEL Published for Dual-Use Exports to the EU

The Department for International Trade published a new Open General Export Licence (OGEL) on 1st February 2019 to cover the export of controlled dual-use items to EU Member States after Brexit. The licence will come into force at 11pm on 29th March 2019, if the UK leaves the EU without a deal. 

Currently, trading controlled dual-use items within the EU does not require an export licence, as they are not considered exports until they are transferred outside the European Community. (The exception is those especially sensitive items subject to national controls and listed in Annex IV of the dual use regulation.

However, if the UK leaves the EU without a deal on 29 March 2019, an export licence will be required to transfer those dual-use items to EU member states from the UK. The purpose of this OGEL is to allow, subject to certain conditions, the export of these dual-use items from the UK to EU Member States and the Channel Islands after the exit date. Before using this licence, registration with the Export Control Joint Unit’s (ECJU’s) electronic licensing system, SPIRE, must be completed, stating where the records of exports or transfers will be kept and where the ECJU may inspect them.

When using the licence, it is a requirement that the records of all the exports under it must be maintained and retained for at least three years from the end of the calendar year in which the export takes place. The exporter must permit these records to be inspected and copied by the British authorities. Transactions may be subject to audit by ECJU compliance officers.

The record-keeping and audit requirements are obligations for organisations intending to trade dual-use items with the EU post-Brexit, and may be especially burdensome given that there were previously no such compliance requirements. This may prove challenging for organisations not previously familiar with the audit requirements and processes. Therefore, organisations involved in exporting to the EU must understand whether their products are included in the dual-use lists and, if so, the terms and conditions of the OGEL, register to use the licence before it comes into force, and put adequate compliance requirements in place.

To further understand how Brexit may affect your business, please contact our Regulatory Risk team.

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Julia Bell

Julia Bell

Senior Manager

As a Manager on the Global Export Controls & Sanctions team in London, Julia has worked on compliance-enhancing projects for clients in a variety of industries, including oil and gas, aerospace & defence, manufacturing and the technology, media and telecommunications industries. She is experienced in US, EU, UK, French, German and other EU Member State military, dual-use and sanctions regulations. Julia’s experience includes conducting trade compliance risk reviews and audits and assisting clients with the development of internal compliance programmes. She specialises in identifying areas of risk and opportunity in relation to management of trade sanctions, particularly in relation to US and EU sanctions on Russia and Iran. Julia has been involved in conducting ITAR audits in UK, France, Poland, and Brazil for non US Aerospace & Defense companies. Julia holds a degree in French and German and a Master of Arts from the University of Cambridge.

Ziyu Chin

Ziyu Chin

Manager

Ziyu Chin is a manager in Deloitte’s Global Export Controls & Sanctions team. She is a specialist in the export control laws and regulations of the United States, China, Hong Kong, Taiwan, Singapore and other Asia Pacific countries. She specialises in developing, implementing, assessing and advising on international trade compliance programs within multicultural environment; trade automation solutions for multi-jurisdiction compliance. Ziyu holds a Master’s degree in International Law from Fudan University, China, and a Bachelor’s degree in Law from National Taiwan University, Taiwan. Ziyu is fluent in Mandarin and English.