Erhvervs-, Vækst- og Eksportudvalget 2015-16
ERU Alm.del Bilag 12
Offentligt
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NOTE
8 October 2015
DANISH BUSINESS AUTHORITY
Dahlerups Pakhus
Langelinie Allé 17
DK-2100 København Ø
Denmark
Response from the Danish Government to the public consultation on
the export control policy review.
The Danish government appreciates the opportunity to set forth our views
on the review of the European export control system.
In the communication The Review of export control policy: ensuring se-
curity and competitiveness in a changing world (COM(2014) 244 final)
the European Commission has outlined its view on the global security
situation and how developments in the global economy have changed
how the EU must counter the spread of weapons of mass destruction and
build its dual-use export control system. The Danish government shares
many of the views presented and therefore welcomes the review of the
dual-use regulation.
The Danish government agrees with the European Commission that the
European export control legislation is basically well functioning and a
solid basis for the control of the trade in dual-use products. There are
however, areas where the regulation needs adjustments in order to keep
up with the rapid changes in the international security situation, techno-
logical developments and changes in global trade patterns.
Danish stakeholders have been consulted in the drafting of this paper.
The Danish Government’s priorities
For the Danish government, the highest priority and overall concern re-
garding the implementation of export control is the lack of a level playing
field across Europe. In addition the Danish government strongly encour-
ages the European Commission in its drafting of the new regulation to
keep a constant focus on the lowering of administrative burdens for Eu-
ropean companies in order not to hamper European growth and job crea-
tion.
A level playing field
The current dual-use regulation sets out the framework for all European
member states, but has in some areas a quite broad spectrum for interpre-
tation and the possibility for each member state to set its own standards
for export control including in regards to the implementation of the catch-
all clause,. Many European companies are operating on a global scale and
hence also do business in several European countries. In practice compa-
nies needs to manage 28 different export control systems, which causes
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MINISTRY OF BUSINESS AND
GROWTH
INT
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unnecessary administrative burdens for European companies, and weak-
ens an otherwise effective European export control.
Therefore the Danish government fully supports initiatives that can lead
to a real level playing field in the European export control system.
European General Authorizations (EUGEAs)
EUGEAs make EU companies able to export controlled goods to low risk
destinations with a minimum of administration. Currently six different
EUGEAs are available for European companies.
The Danish government is convinced that it is possible to create new
EUGEAs to further facilitate exports of low risk products to low risk des-
tinations. The Danish government therefore supports the Commission’s
efforts to create new EUGEAs in relation to encryption, intra-company
technology transfers, intra EU transfers and large projects, as described in
the communication. However, in relation to a “low value shipment
EUGEA” as mentioned in the communication, the Danish government
believe there is a need for further clarification of how such a general li-
cense would function.
Some member states have, as mandated by the current regulation, imple-
mented their own national general licenses (NGEAs). These are only val-
id in the given member state. While these NGEAs can be a very effective
tool for each member state to facilitate exports of low risk, companies
operating across Europe need to manage all the various NGEA’s in place
in different member states. This is not desirable, since it courses signifi-
cant administrative burdens for European companies.
The Commission outlines in the communication a conversion of some of
the various NGEAs to EUGEAs thereby making them applicable
throughout the EU. In correspondence with the goal of enhancing a Euro-
pean level playing field and lowering administrative burdens, the Danish
government is in favor of both creating new EUGEAs and convert of
some of the various NGEAs to EUGEAs.
Internal Compliance Procedures (ICPs)
In order to ensure an effective export control system authorities need to
cooperate closely with the companies developing and selling dual-use
goods.
We see standardized internal compliance procedures (ICPs) as a way to
make sure that companies follow basic compliance standards. The Danish
government supports working towards making common European guide-
lines in this area. We do not however see it as beneficial to make ICP’s
legally binding, since there is an eminent threat to create new unneces-
sary administrative burdens for European companies. It is essential to
make sure that there is tight cooperation between authorities and compa-
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nies in a flexible and non-bureaucratic manner, since the companies will
in many cases be the first line of defense against unwanted proliferation.
Human Security
In the communication the European Commission argues why European
export control needs to embrace a strategy for “human security” in its
approach towards which goods that are subject to control. Cyber surveil-
lance has become widespread, and there have been examples of European
products being used to violate human rights in oppressive regimes.
Many of the so-called cyber surveillance tools have widespread use in
anti-virus software, backbone network administration and telecommuni-
cation solutions. The IT and telecommunication sector is a strategic im-
portant sector for the EU and faces tough competition from companies
situated outside of the EU.
The Danish government acknowledges that there could be a legitimate
need to control different types of cyber surveillance tools. However the
Danish government also finds that one of the advantages of the current
export control system is that the conditions for control are settled within
the four international export control regimes. This ensures that the same
products are subject to control in all the countries that are part of these
international regimes, including most western countries and EU member
states.
The Danish government believes that the best way to introduce new
product controls is within the global export control regimes instead of
having certain products being subject to control only in the EU, as Euro-
pean companies thereby will face more far-reaching rules and uneven
competition compared to their competitors outside of the EU.
Technological reaction capacity
The Danish government encourages the European Commission to contin-
ue its focus on strengthening the European technical expertise regarding
the ongoing control list update and the evaluation of new upcoming tech-
nologies with potential military application as well as de-control of prod-
ucts that have become widely available commercially.
The Danish government believes it can be a great advantage for the Eu-
ropean member states, especially for the smaller member states, to pool
our resources in the technical discussions in the export control regimes
and in the EU export control system. Therefore the Danish government
would encourage the strengthening of the current “Pool of Experts setup”
and the EU’s technical capabilities in general which are very valuable
tools.
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To conclude the Danish government looks forward to working together
with the European Commission and the European Council to update the
European export control system by enhancing the effectiveness, making it
easier for companies to navigate in the system, lowering the administra-
tive burdens, and working towards a more level playing field for the Eu-
ropean dual-use industry.