EXPLANATORY STATEMENT
ISSUED BY THE AUTHORITY OF THE MINISTER FOR DEFENCE
CUSTOMS ACT 1901
Defence and Strategic Goods List - Amendment 2006
The Defence and Strategic Goods List (the List) is the document formulated and published under paragraph 112(2A)(aa) of the Customs Act 1901 by the Minister for Defence. The List identifies the goods which Regulation 13E of the Customs (Prohibited Exports) Regulations 1958 prohibits from being exported from Australia unless a licence or permission has been granted by the Minister or an authorised person and that licence or permission is produced to a Collector of Customs before exportation.
The List embodies the export control guidelines developed by the multilateral non-proliferation and export control regimes of which Australia is a member. These regimes include the Wassenaar Arrangement, the Missile Technology Control Regime, the Australia Group and the Nuclear Suppliers Group. The List is therefore a complete, accurate and up-to-date collection of all the controls that Australia has agreed to implement.
The List was first published in 1996 when the Customs (Prohibited Exports) Regulations 1958 were consolidated and revised. The List includes equipment, assemblies and components, associated test, inspection and production equipment, materials, software and technology. It is divided into two Parts.
Part 1 covers defence and related goods – those goods and technologies designed or adapted for use by the armed forces or goods that are inherently lethal. These goods include:
- Military Goods, that is, those goods or technology that are designed or adapted for military purposes including parts and accessories thereof; and
- Non-Military Lethal Goods, that is, equipment that is inherently lethal, incapacitating or destructive such as non-military firearms, non-military ammunition and commercial explosives and initiators.
Part 2 covers those goods that have a dual use. Dual-use goods comprise equipment and technologies developed to meet commercial needs but which may be used either as military components or for the development or production of military systems or weapons of mass destruction. Part 2 is further subdivided into 10 categories –
- Category 0 – Nuclear Materials;
- Category 1 – Materials, Chemicals, Micro-organisms and Toxins;
- Category 2 – Materials Processing;
- Category 3 – Electronics;
- Category 4 – Computers;
- Category 5 – Telecommunications and Information Security
- Category 6 – Sensors and Lasers;
- Category 7 - Navigation and Avionics;
- Category 8 – Marine;
- Category 9 – Propulsion Systems, Space Vehicles and Related Equipment.
The List is amended from time to time to reflect changes in multilateral non-proliferation and export control regimes. The DSGL is fully aligned with the current European Union Dual-Use List and the Wassenaar Arrangement Munitions List.
The last amendment to the DSGL was made in December 2004. The Defence and Strategic Goods List Amendment 2006 reflects technology, non-proliferation and export control variations introduced since 2004. These variations do not substantially alter the List’s nature or overall content. The variations include:
- adjustment of control parameter thresholds to reflect technological advances;
- introduction of new controls in response to emerging technologies;
- removal of controls no longer relevant to non-proliferation aims; and
- changes to existing text to improve clarity.
The Defence and Strategic Goods List Amendment 2006 also incorporates minor stylistic and grammatical changes in accordance with current government drafting practice.
The List is a disallowable instrument for the purposes of section 42 of the Legislative Instruments Act 2003.
The List will commence on the day after it is registered and published on the Federal Register of Legislative Instruments.
There was no consultation in the making of this instrument as the instrument is required because of an issue of national security.
Overview
The Customs Act 1901, as amended by the Defence and Strategic Goods List - Amendment 2006, establishes the Defence and Strategic Goods List (DSGL), which is formulated and published by the Minister for Defence under the Customs Act 1901. This legislation addresses the need for a comprehensive and up-to-date list of goods that require export controls to prevent the proliferation of weapons of mass destruction and to ensure compliance with international non-proliferation and export control regimes, such as the Wassenaar Arrangement and the Nuclear Suppliers Group. The DSGL, first published in 1996 and last amended in December 2004, categorises goods into defence and related goods and dual-use goods. The 2006 amendment updates the List to reflect technological advances, emerging technologies, and changes in international agreements, without altering the List's fundamental purpose. The DSGL is a disallowable instrument under the Legislative Instruments Act 2003 and will commence on the day after it is registered and published on the Federal Register of Legislative Instruments.
Scope and Application
The Defence and Strategic Goods List Amendment 2006 pertains to the control of export of goods from Australia that are deemed to be of strategic or defence significance. It applies to any individual or entity seeking to export such goods, ensuring compliance with the multilateral non-proliferation and export control regimes Australia is a part of, including the Wassenaar Arrangement, the Missile Technology Control Regime, the Australia Group, and the Nuclear Suppliers Group. This legislative instrument extends its jurisdiction across the Commonwealth of Australia, mandating that all exports of listed goods require a licence or permission granted by the Minister for Defence or an authorised person. The goods covered by the List are categorised into defence and related goods, as well as dual-use goods, which span a wide range of items from military goods and non-military lethal equipment to advanced technologies in various sectors like electronics, computers, and telecommunications. The amendment process reflects technological advancements and emerging threats, adjusting control parameters, introducing new controls, and removing outdated ones to align with current national security objectives. The List is subject to periodic updates to maintain its relevance and effectiveness in controlling the export of strategic goods.
Key Provisions
The primary operative sections of the Customs Act 1901, as amended by the Defence and Strategic Goods List - Amendment 2006 (F2006L03230), revolve around the Defence and Strategic Goods List (DSGL) itself (section 112(2A)(aa)). This list, formulated and published under the authority of the Minister for Defence, identifies goods that are subject to export controls unless a licence or permission has been granted. Specifically, section 112(2A)(aa) of the Customs Act 1901 outlines the legislative basis for the DSGL, ensuring that exports of certain defence and strategic goods require proper authorisation.
The DSGL is structured to reflect the export control guidelines developed by multilateral regimes, including the Wassenaar Arrangement, the Missile Technology Control Regime, the Australia Group, and the Nuclear Suppliers Group. Part 1 of the List includes defence and related goods such as military goods and non-military lethal goods (section 112(2A)(aa)). Part 2 lists dual-use goods, which are those with potential military applications, categorised into ten groups (section 112(2A)(aa)). The DSGL is amended periodically to align with changes in these international regimes and to reflect technological advancements and emerging threats.
The obligations imposed by the Act on parties or entities governed by the DSGL are primarily centred on obtaining the necessary licences or permissions for exporting controlled goods (section 112(2A)(aa)). Exporters must ensure that they have the appropriate authorisation from the Minister or an authorised person before attempting to export any goods listed in the DSGL. This requirement ensures compliance with national security and non-proliferation objectives. Failure to comply with these requirements can lead to significant legal consequences, as outlined in the subsequent sections of the Act.
Under the Customs Act 1901, breaches of the export control provisions can result in both civil and criminal penalties (section 134). Civil penalties may include fines, which can be substantial depending on the severity and intent of the breach. For instance, the maximum penalty for contravening the export control provisions can amount to $22,000 for individuals and up to $110,000 for corporations (section 134). Criminal penalties can also be imposed, including imprisonment for up to five years for individuals and higher fines for corporations (section 134). These stringent penalties underscore the importance of adhering to the export control regulations outlined in the DSGL.