The Export Control (Amendment) (No. 2) Order 2012

7.  After article 28 (registration with the Secretary of State), insert—

“Certificates (European military items)

28A.— (1) For the purposes of Article 9(1) of the defence-related products Directive, the Secretary of State is empowered to grant certificates to recipients established in the United Kingdom of European military items under authorisations granted by competent authorities in other member States.

(2) Before granting a certificate, the Secretary of State must establish the reliability of the recipient undertaking and in particular its capacity to observe limitations on the export of European military items which are received under an authorisation granted by a competent authority in another member State. The recipient’s reliability must be assessed according to the following criteria—

(a) proven experience in defence activities, taking into account in particular—

(i) the undertaking’s record of compliance with export restrictions including any relevant court decisions;

(ii) any authorisation held by the undertaking to produce or market European military items;

(iii) the employment of experienced management staff by the recipient;

(b) relevant industrial activity in European military items within the EU and in particular capacity for system or sub-system integration;

(c) the appointment of a senior executive as the dedicated officer personally responsible for exports and transfers;

(d) the provision of a written undertaking, signed by the senior executive referred to in sub-paragraph (c), that the undertaking will take all necessary steps to observe and enforce any specific condition of an authorisation granted by a competent authority in another member State relating to end-use and re-export of any specific component or product received;

(e) the provision of a written undertaking, signed by the senior executive referred to in sub-paragraph (c), that the undertaking will provide to the Secretary of State upon request detailed information concerning the end-users or end-use of all European military items exported, transferred or received under an authorisation granted by a competent authority in another member State; and

(f) the provision of a written description, signed by the senior executive referred to in sub-paragraph (c), of the undertaking’s internal compliance programme or export and transfer management systems. This description must provide details of the organisational, human and technical resources allocated to the management of exports and transfers, the chain of responsibility within the undertaking, internal audit procedures, awareness-raising and staff-training, physical and technical security arrangements, record-keeping and traceability of exports and transfers.

(3) A certificate granted by the Secretary of State must contain the following—

(a) the name of the competent authority issuing the certificate;

(b) the name and address of the recipient;

(c) a statement of the recipient’s conformity with the criteria referred to in paragraph 2;

(d) the date of issue and the period of validity of the certificate.

(4)   The period of validity of a certificate granted by the Secretary of State must not exceed five years.

(5) A certificate granted by the Secretary of State may be subject to conditions relating to—

(a) the provision of information necessary to verify compliance with the criteria set out in paragraph (2);

(b) its suspension or revocation.

(6) The Secretary of State may by notice amend, suspend or revoke a certificate.”.