Draft Trade etc. in Dual-Use items and Firearms etc. (amendment) (EU Exit) Regulations 2019

Graham Stuart Excerpts

Monday 25th March 2019 General Committees

[The Parliamentary Under-Secretary of State for International Trade (Graham Stuart)]

I beg to move,

That the Committee has considered the draft Trade etc. in Dual-Use Items and Firearms etc. (Amendment) (EU Exit) Regulations 2019.

I am pleased to open this debate on the draft regulations; they may not have a very catchy title, but I assure the Committee that they do a very serious job. Without these amending regulations, existing European Union law would not be effective in UK domestic law on the day we exit the European Union. Addressing that issue has been a vital part of our long-term planning since the European Union (Withdrawal) Act 2018 received Royal Assent.

The draft regulations include amendments that will allow the UK to maintain the EU laws that control exports of dual-use items—items that have both civil and military uses. They will also control the export of civilian firearms of the type used by hunters and sports shooters. If we do not retain and amend the relevant legislation, we will no longer control the export of such potentially dangerous items. That would put the United Kingdom in breach of international agreements that require us to impose such controls, which prevent military equipment from falling into the hands of those who intend this country harm.

Exit-related legislation provides the necessary legislative building blocks to ensure our readiness as a nation on exit day. The 2018 Act provides the Government with the tools to deal with deficiencies in domestic law that would arise as a result of our exit from the European Union, so it is right and proper that we use it for matters such as export controls. By making the draft regulations and the associated Export Control (Amendment) (EU Exit) Regulations 2019, my Department will have completed much of the legislative part of controlling the export of strategic goods in preparation for a no-deal scenario. If the draft regulations are no longer required on exit day, we expect to revoke or amend them; alternatively, commencement could be deferred to the end of an implementation period.

Broadly, all the provisions that today apply to exports from the EU customs territory will instead apply to exports from the UK. However, our leaving the European Union will mean that the rules will have to change, and we cannot guarantee that all the export licensing requirements with which UK exporters are familiar will remain the same. The Government have therefore made every effort to provide certainty for businesses and the public, wherever possible. We have published a new general export licence that provides for the export of dual-use items to all European Union member states and the Channel Islands. In August, we published a technical notice on export controls, which explained our plans for post-EU exit export control licensing. We have also included EU exit advice in the export control training programme and at the annual export control symposium, as well as giving extensive advice to key sector trade associations.

Hon. Members should be aware that the Joint Committee on Statutory Instruments has reported the draft regulations

“on the grounds that they require elucidation in one respect and are defectively drafted in three respects.”

On the first point, we have provided the Joint Committee with an explanation of why the transfer of technology by electronic means to the Isle of Man is considered to be an export, whereas the physical movement of goods is not: it is a consequence of our customs arrangements with the Isle of Man and is consistent with our controls on military goods and technology. The other three points we acknowledge as drafting errors, which we will correct in the near future, but none of which will affect the proper functioning of the regulations.

I hope that the House will work in the interests of our nation to ensure the passage of this legislation, which is essential to ensuring that we are prepared for EU exit. I commend the draft regulations to the Committee.

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[Graham Stuart]

I thank Opposition Members for their contributions. We have discussed the importance of maintaining robust strategic export controls, and a number of questions have come up. I thank the hon. Member for Bradford South for her forensic questioning, as the hon. Member for Wallasey rightly described it, on the important issue of maintaining effective controls after we have left the European Union, and will pick up on a few of the points that she raised.

Existing licences will still be valid; however, exporters from the UK who have a licence from the EU will need to seek new licences from the EU. The hon. Member for Bradford South rightly raised the impact on business. The export control joint unit has minimised additional administrative burdens for business by making available an open general export licence—OGEL—for exports to the EU. Exporters can register for one easily through our SPIRE online platform. Our assessment is that that will not have a significant impact on exporters.

Both hon. Members who spoke raised the question of future co-operation with the EU. The form of dialogue with the EU will be a matter for negotiations on our future economic partnership with the EU. We will continue to maintain robust controls on brokering. Transit is controlled under the Export Control (Amendment) Order 2018.

I have been clear that the Government remain committed to using the draft regulations to maintain the high-quality controls that we have discussed. We have a responsibility to ensure the safety and security of our people, and the legislation supports that objective. On that basis, I call on my fellow hon. Members to support the motion.

Question put and agreed to.