The Export Control (North Korea) Order 2007

EXPLANATORY NOTE

(This note is not part of the Order)

This Order is part of the United Kingdom implementation of United Nations Security Council Resolution 1718 (2006) (“UNSCR 1718”), which imposes restrictions on trade with the Democratic People’s Republic of Korea. The Council of the European Union has adopted a Common Position (Council Common Position 2006/795/CFSP(1) – “the Common Position”) in response to UNSCR 1718. Council Regulation (EC) No 329/2007 (“the Regulation”) implements the elements of the Common Position that fall within Community competence.

The Regulation contains Annexes with lists of goods and other items that it affects. Article 13 of the Regulation enables the Commission to amend these Annexes. Article 1(3) of the Order ensures that the offences in the Order do not just relate to the Annexes in the Regulation as originally adopted.

Articles 2 and 3 relate to matters that are outside Community competence. Article 2 amends the Export of Goods, Transfer of Technology and Provision of Technical Assistance (Control) Order 2003 (“the 2003 Order”) to ensure that certain exemptions from export controls no longer apply in relation to exports to North Korea. For example, the exemption relating to exportation of aircraft following temporary importation in article 11(2) of the 2003 Order will no longer apply.

Article 3 amends the Trade in Controlled Goods (Embargoed Destinations) Order 2004 (“the 2004 Order”) so that North Korea becomes an embargoed destination. This means that the trade controls in the 2004 Order that prohibit military and certain other equipment from being supplied from outside the UK to certain destinations extend to North Korea.

Articles 4 to 7 relate to implementation of the Regulation. Article 4 creates offences for contravention of the provisions of the Regulation referred to there. There are already some offences relating to prohibited importation and exportation of goods in sections 50, 68 and 170 of the Customs and Excise Management Act 1979 and the Order creates new offences only where necessary.

Article 5 supplements the provision of the Regulation that allows a competent authority to authorise activities that are otherwise prohibited. Article 5(1) makes it an offence knowingly or recklessly to provide false information for the purpose of obtaining an authorisation. Authorisations may be subject to requirements or conditions that continue even after the activity authorised has been carried out. Article 5(2) makes it an offence to fail to comply with such continuing requirements or conditions unless they were imposed after the activity was carried out or amended after that time in such a way as to give rise to non-compliance.

Article 6 sets out the penalties relating to the offences in the Order.

Her Majesty’s Revenue and Customs will enforce the provisions of the Order. Article 7 ensures that the same ancillary provisions as apply to their enforcement of customs and excise legislation apply in this context.

A full regulatory impact assessment has not been produced for this instrument as no impact on the private or voluntary sectors is foreseen.

(1)

OJ No L 322, 22.11.2006, p32.