On 2 November 2011, the Minister for Defence Materiel introduced the Defence Trade Controls Bill 2011, into the House of Representatives. Australia has an existing regime that regulates the export of defence related goods. This regime requires businesses to apply for permits and comply with permit conditions. The Bill enhances the existing regime to add controls regarding:
- intangible transfer of defence and strategic technology;
- provision of services relating to defence and strategic goods and technology; and
- brokering of supply of these goods, technology and related services.
Separately, on the same day, the Minister introduced another control relating to export of goods intended for a military end use that may prejudice Australia’s security, defence or international relations. This control will be realised through an amendment to the Customs Act 1901. The Regulation Impact Statement (RIS) indicates that these additional controls will add a regulatory burden to some defence businesses in the form of increased operating costs and delivery timeframes. However, the RIS notes that these impacts can be mitigated by improving awareness of these requirements and adopting appropriate business processes to identify the need to register, apply for permits and report activities. The Bill also introduces measures that are required to implement the Australia-US Defence Trade Cooperation Treaty. The RIS was prepared by the Department of Defence and has been assessed as adequate by the Office of Best Practice Regulation.
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