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Export Control Act 2002

Section 4:  Trade controls

30.Subsection (1) provides the Secretary of State with order-making powers to introduce trade controls in relation to goods of any description and to make provision about matters connected with the imposition of such controls.

31.It is envisaged that the Secretary of State will use these powers to introduce controls on the acquisition, disposal and movement overseas of certain military and paramilitary equipment which is currently subject to export controls and on any equipment covered by an arms embargo. It is not envisaged that the Secretary of State will use these powers to impose trade controls on the acquisition, disposal or movement of goods where those goods remain within a single overseas country.

32.Subsection (2) defines “trade controls” as the prohibition or regulation of the acquisition, disposal or movement of goods, or other activities that facilitate or are otherwise connected with such acquisition or disposal.  (Such activities are sometimes called trafficking and brokering.)

33.Subsection (3) allows controls to be placed on the trade in goods wholly or partly on the grounds of the uses to which those goods may be put.

34.Subsection (4) provides that the power to impose trade controls may only be exercised for the purpose of imposing controls corresponding to or connected with export or transfer controls imposed under sections (1) or (2), or in connection with any directly applicable European Community provision on the export of goods or technology transfer.  The power is also subject to section 5, which places general restrictions on the imposition of control orders.

35.Subsection (5) allows the Secretary of State by an order to make provision for giving effect to a directly applicable Community provision on, or on activities which facilitate or are otherwise connected with, the acquisition, disposal or movement of goods.

36.Subsection (7) makes it clear that controls can be imposed on the actions of persons other than actual parties to a sales contract.   For example, a person who acts as an agent bringing parties to a deal together could be subject to controls even though he would not himself be a party to a sales contract.

37.Subsection (8) provides that the powers in subsection (1) may be exercised in relation to activities conducted outside the UK and the Isle of Man (which is in a customs union with the UK) where these are conducted by a UK person or by a person acting under the control of a UK person.

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