The Trade in Goods (Control) Order 2003

Explanatory Note

(This note is not part of the Order)

This Order, made under the Export Control Act 2002, controls the trade between one overseas country and another of military and para-military goods listed in Schedule 1 to the Export of Goods, Transfer of Technology and Provision of Technical Assistance Order 2003 (S.I. 2003/2764). In this Order these goods are referred to as “controlled goods” or “restricted goods”. Restricted goods are set out in the Schedule to this Order. The controls in this Order do not apply to software or technology or to activities connected to trade in controlled goods that are situated in the United Kingdom (with the exception of goods in transit via the United Kingdom).

In relation to restricted goods, article 3 of this Order prohibits any person within the United Kingdom, or a United Kingdom person anywhere in the world, from supplying or delivering, or doing any act calculated to promote the supply or delivery of, restricted goods without a licence from the Secretary of State.

In relation to controlled goods, article 4 of this Order prohibits any person in the United Kingdom from transferring, acquiring or disposing, or arranging or negotiating a contract for the acquisition or disposal of controlled goods without a licence from the Secretary of State. In addition, the provisions on controlled goods prohibit any person in return for a fee, commission or other consideration from doing any act or agreeing to do any act, without a licence, which would promote the arrangement or negotiation of a contract for the acquisition or disposal of controlled goods where that person knows or has reason to believe that the goods will be moved from one third country to another third country.

The Order exempts persons whose sole involvement in the movement of controlled goods from one overseas country to another is to provide transport, finance, insurance or general advertising or promotion services.

The remaining articles in this Order do the following:

Articles 5–7 provide for the issuing of licences by the Secretary of State, registration, record keeping and inspection and licence refusals and appeals;

Articles 8–12 provide for offences, enforcement and penalties for the breach of the controls created by this Order;

Article 13 sets out the purposes for which information obtained by the Secretary of State, or the Commissioners for Customs and Excise, can be disclosed; and

Article 14 of this Order states the address where notices to be given by any person under this Order are to be sent.

Guidance issued pursuant to section 9 of the Export Control Act 2002, on the operation of these controls and a full regulatory impact assesment of the effect that this instrument will have on the costs of business is available from http://www.dti.gov.uk/export.control/ or the ECO help-line—telephone [phone], fax [phone] or E-mail: [e-mail].