Export Controls: Which take precedence, UK or US regulations?

Question

What about if a part is manufactured in the UK using US Technology, and the part is controlled at the lowest controls in the US for EAR99, but the UK supplier/manuf claims that the part is controlled in the UK under ML10 though the US has removed the control of that part/data from the ITAR to the EAR at the lowest controls. What would take precedent UK regulations or US? Does the UK align their regulations with the changes in the US Export Control Reforms that are currently going on? This is a very heavy subject as most of the parts being moved are Aerospace & Defense parts and components.

(This question was asked at one of our recent webinars on Export Controls. You can listen to this webinar on our recent webinars page at http://opentoexport.com/info/webinars/)

Answer

If you were looking to get the item that you had manufactured out of the UK then you cannot discount the UK regulations – unless you fancy having HMRC knocking on your door for a breach of the regs.

While the US manufactured article may have transitioned out of the ITAR into EAR99, as far as the UK regulation is concerned it is still an item specially designed for military use and therefore subject to control. The US has revised the classifications outside of the Wassenaar Arrangement and is therefore at odds with any other control regime based on the WA.

So now, whereas a UK company only had to worry about the ITAR and the UKML, we now have to understand the ITAR, the EAR, the UKML and potentially the original design intent of EAR99 items to ensure that we are fully compliant when exporting out of the UK. ECR has been a great change for US industry, not so great for those of us outside the US.

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