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Export Controls: The UK New OGEL Licence GCAP

Unlock the essentials of the UK’s latest export control OGEL licence for the Global Combat Air Programme (GCAP)


What Questions We Will Answer in this Blog:

  • How does the new Open General Licence (GCAP) impact exporters?

  • What are the key restrictions and allowances under this licence?

  • How can businesses ensure compliance with these new regulations?


Introduction

The UK government has recently introduced an Open General Licence (OGEL) for the Global Combat Air Programme (GCAP), impacting how dual-use items and military goods are exported. This update is crucial for customs managers, import-export professionals, and compliance officers. Understanding these new rules is essential to ensure smooth operations and avoid potential pitfalls.


Abbreviations We Use in This Blog

  • OGEL: Open General Export Licence

  • GCAP: Global Combat Air Programme

  • ML: Military List (part of the UK's Export Control Order 2008)

  • DE&S: Defence Equipment & Support

  • MOD: Ministry of Defence


How Does the New OGL Affect Exporters?

The recent introduction of the Open General Export Licence (GCEP) marks a significant shift in export controls related to the Global Combat Air Programme. This section will outline the primary ways in which the OGEL impacts exporters and what they need to be aware of.

Key Changes Under the New OGL

The OGEL simplifies the export process for specific items linked to the GCAP. It applies to dual-use items and military goods used in the design, development, and maintenance of the programme.


The new licence specifies:

  • Permitted Exports: Items listed in Schedule 1 and Schedule 2 can be exported to and from designated destinations under the OGL. This includes re-exporting goods that have been incorporated into other products.

  • Permitted Destinations: The licence applies to GCAP Partner Nations (Italy, Japan, the UK) and GCAP Supply Chain Nations. Notably, the UK is included as a permitted destination for re-exporting items.

The inclusion of these countries as permitted destinations broadens the scope for GCAP-related exports but requires stringent adherence to the licence conditions.


What Are the Key Restrictions and Allowances?

Navigating the restrictions and allowances under the new OGL is critical for compliance. Here’s a breakdown of the main points:

Schedule 1 Items

  • England, Wales, and Scotland: Includes items specified in Annex I of the Dual-Use Regulation, except Annex IIg and entry 0C003.

  • Northern Ireland: Covers similar items, excluding those detailed in Section I of Annex II and entry 0C003.

Schedule 2 Items

This schedule outlines what military goods and technologies can be exported:

  • ML2 & ML3: Aircraft cannons and ammunition for them are permitted.

  • ML4: Restrictions apply to certain advanced weapons systems, including MANPADS and cluster munitions.

  • ML10: Complete aircraft and unmanned aerial vehicles (UAVs) are regulated.

These restrictions are designed to ensure that sensitive technologies are not misused or diverted to inappropriate uses.


How Can Businesses Ensure Compliance with the OGEL?

Compliance with the new OGL involves several key steps. Here's how businesses can align with the new requirements:


Documentation and Records

  • Maintain Accurate Records: Ensure all exports are documented with purchase orders, contracts, and relevant licences. This helps in verifying that exports are for GCAP-related purposes.

  • Security Clearances: Obtain necessary security approvals for classified items, and ensure electronic transfers are encrypted according to their classification.

Compliance Check

  • Verify Destinations: Only export to the specified GCAP Partner and Supply Chain Nations. Ensure that re-exporting back to the UK adheres to the licence conditions.

  • Regular Updates: Stay informed about changes in regulations and update your compliance practices accordingly.


Conclusion

The Open General Export Licence (OGEL) for the Global Combat Air Programme introduces essential changes to how dual-use and military goods are exported. By understanding the new rules, documenting exports accurately, and ensuring compliance with security requirements, businesses can navigate these regulations effectively.


Expert Recommendations

  • Review the OGEL Carefully: Understand the specifics of Schedules 1 and 2 and how they apply to your exports.

  • Keep Detailed Records: Maintain thorough documentation to support your compliance efforts.

  • Stay Informed: Regularly check for updates to export control regulations to ensure ongoing compliance.


How We Can Help

Customs Manager Ltd offers comprehensive support for navigating the new export control measures. We provide:

  • Import-export operations and bespoke consultancy.

  • Public, in-house, and on-demand training tailored for customs professionals and their partners.

  • Weekly customs trade intelligence and updates.

  • UK import and export customs clearance services.

For more details on our services, visit www.customsmanager.org.


Sources That We Base Our Information On


Where To Find More Information On This Topic

For detailed information on export controls and sanctions, see here:



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Disclaimer

The information provided in this blog post is for educational purposes only and should not be construed as legal advice. For specific compliance requirements and guidance, consulting legal professionals or specialists is recommended. Book a free call with our expert at Customs Manager Ltd.


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