On Monday 11 March, the UK Export Control Joint Unit (the “ECJU”) announced amendments to its Export Control Order 2008 (the “2008 Order”) and Council Regulation (EC) No 428/2009 (the “Retained Dual-Use Regulation”), pursuant to the Export Control (Amendment) Regulations 2024 (the “Regulations”).
The Regulations will come into force on 1 April 2024 and will amend Schedules 2 and 3 of the 2008 Order, as well as Annex I of the Retained Dual-Use Regulation.
Amendments to the Schedule 3 of the 2008 Order:
These are new unilateral UK export controls with new entries in the list (the “Schedule 3 Controls“). The addition of these controls reflects an increasing trend toward unilateral export controls on advanced technologies, which has also been the case in the US and certain EU Member States (notably the Netherlands, Spain and France).
In summary, the Schedule 3 Controls relate to goods, software and technology, including related manufacturing of the following (listed as new entries from PL9013 to PL9015):
- Quantum technologies, such as certain quantum computers, certain qubit devices and qubit circuits and certain quantum control components and quantum measurement devices.
- Semiconductor technologies, such as certain scanning Electron Microscope (SEM) equipment designed for imaging semiconductor devices or integrated circuits and certain equipment designed for dry etching.
- Cryogenic technologies, such as certain cryogenic cooling systems and components and certain cryogenic wafer probing equipment.
- Advanced materials, such as certain fluorides, hydrides, or chlorides of silicon or germanium, and certain silicon, silicon oxides, germanium or germanium oxides.
- Additive manufacturing equipment, designed to produce metal or metal alloy components, such as those having at least one of “lasers”, “electron beam” or “electric arc” as consolidation sources.
All of these items will now be subject to an export licence requirement for exports from the UK to all destinations. As such, it is crucial for companies to review their product offering and ensure the necessary licences are in place for any exports of these items from the UK.
The Schedule 3 Controls overlap to an extent with existing export restrictions in the US as well as the EU Member States noted above and it would not be surprising if other allied countries decide to follow suit with similar controls.
Other Amendments to the 2008 Order:
Schedule 2 also reflects updates to the Wassenaar Agreement munitions list, as agreed in December 2023. This includes amends to the sub-entries lists, as well as amends to the Technical Notes of certain entries.
These updates include, amongst others, amendments or additions to entries or subentries under ML7 (Chemical agents, “biological agents”, toxic chemicals and mixtures containing such agents or chemicals, “riot control agents”, radioactive materials, related equipment, components and materials), ML8 (“Energetic materials”, and related substances), ML9 (“Vessels” of war, special naval equipment, accessories, components and other surface “vessels”) and ML18 (“Production” equipment, environmental test facilities, and components).
In particular, the following updates are made, amongst others:
- In relation to entry ML8.d.3, a new note is added with the following clarification “ML8.d.3. does not control iodine pentafluoride (CAS 7783-66-6).”
- In relation to entry ML9.a.2.d.4, a new technical note is added noting the following “For the purposes of ML9.a.2., ‘CBRN protection’ is a self-contained interior space containing features such as over-pressurisation, isolation of ventilation systems, limited ventilation openings with CBRN filters and limited personnel access points incorporating air-locks.“
Amendments to the Retained Dual-Use Regulation:
Annex 1 will reflect updates to both the Wassenaar Agreement dual-use list, and to other multilateral export control regimes, as agreed in December 2023. These updates include amends to certain sub-entries, as well as amends to Technical Notes and definitions included in certain entries.
These updates are primarily editorial changes to the lists, and for Category 5 Part 2 (“information security”), some of the wording has been restructured to make the text clearer.
Some of the parameters for the entries have also been amended, such as for signal analysers, signal generators and network analysers.
