kom (2014) 0244 - Bilag 2: Høringssvar til Kommissionen vedrørende revision af eksportkontrolpolitikken

Erhvervs-, Vækst- og Eksportudvalget 2015-16
KOM (2014) 0244 Bilag 2
Offentligt

NOTE

9 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

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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.