EXPLANATORY STATEMENT
CUSTOMS (PROHIBITED EXPORTS) REGULATIONS (AMENDMENT)
STATUTORY RULES 1987 NO. 176
ISSUED BY THE AUTHORITY OF THE MINISTER OF STATE FOR INDUSTRY, TECHNOLOGY AND COMMERCE
Background
Statutory Rules 1987 No.115, gazetted on 15 June 1987, imposed restrictions on the exportation of militarily sensitive dual-use technology to “eastern-block” countries, as part of Australia’s response to the Co-ordinating Committee for Multilateral Export Controls (“Cocom”) objective of restricting access to such technology to these countries.
The amendments amplify the existing prohibition on the exportation of “dual-purpose” technology to “eastern-block” countries without the permission of the Minister for Defence, by allowing that Minister to prohibit absolutely the exportation of those kinds of goods where he has reasonable cause to suspect that their ultimate destination is a “proscribed” country.
It has come to attention that the current export control is being circumvented by the exportation of the proscribed technology to non-proscribed countries which are only acting as a conduit for the transfer of the technology to one of the proscribed countries.
This Statutory Rule closes that loophole, by providing as follows:
Sub-regulation 13G(1) provides that, where in relation to the proposed exportation of controlled goods (as to which see sub-regulation 13G(2)) to a country which is not a prescribed “eastern-block” country in Schedule 16 to the Regulations, the Minister of State for Defence certifies that he or she has reasonable grounds for believing:
a. that the ultimate destination of the goods is such a prescribed “eastern-block” country (paragraph 13G(1) (a)); or
b. that the goods will be forwarded directly or indirectly from that first-mentioned country to a prescribed “eastern-block’’ country (paragraph 13G(1)(b));
then the exportation of those goods is prohibited.
Sub-regulation 13G(2) provides that “controlled goods” for the purpose of this proposed regulation, means the “dual-purpose” technology specified by the Minister for Defence in Gazette No. P1 on 6 January 1987.