‘Preventing a breach is always better than responding to one’: Export compliance remains critical in industry success, officials say

Industry
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By: Bethany Alvaro

Romina Rocha, acting assistant secretary, Defence Export Controls (Department of Defence), and Sam Bowden, inspector, threat analysis (Australian Border Force), have discussed the ways in which Defence Export Controls (DEC) play a critical role for businesses to succeed in the defence sector.

Romina Rocha, acting assistant secretary, Defence Export Controls (Department of Defence), and Sam Bowden, inspector, threat analysis (Australian Border Force), have discussed the ways in which Defence Export Controls (DEC) play a critical role for businesses to succeed in the defence sector.

Rocha and Bowden explored how Australian defence industry partners, businesses, SMEs, and primes can continue adhering to DEC compliance regulations during a session at the Australian Defence Industry Accelerator Summit held at the National Convention Centre Canberra on 16 July.

Importantly, Rocha noted how exportable defence commodities are vast and not constrained by tangible products.

 
 

She said it includes an array of assets, such as “expertise, technical systems, training or other services to foreign militaries or government entities”.

Compliance and regulation of DEC frameworks under the Defence Trade Controls Act 2012 are critical to building trust between industry and government partners in sharing sensitive information and technology, she said.

“Defence primes, government, customers and international partners increasingly want confidence that supplies have a process for managing control obligations in protecting sensitive technology.

“Australia’s reputation helps create the opportunity, but a business compliance culture is whether you access that opportunity,” Rocha said.

She encourages defence businesses to continually work to improve compliance mechanisms through ensuring strong product delivery understanding, supporting staff and systems, and staying informed and engaged with DEC.

Bowden, who works within the counter-proliferation sector of the Australian Border Force (ABF), explained how the agency continues to work with domestic policy and regulatory partners to achieve goals of securing Australia’s borders and exports.

The ABF works strongly with DEC to ensure that exported defence goods and products comply with the range of measures that are in place to safeguard Australia’s industry and defence environment.

“If the DEC assessment determines that goods are not controlled and do not need a permit, the ABF releases the customs holds on the goods, approving the export.

“If the DEC assessment confirms that the goods are controlled and a permit was not obtained prior to the attempted export, the ABF will continue to hold the goods until the matter is resolved, and will be treated on a case-by-case basis,” Bowden said.

Bowden added that the need for DEC obligations is essential as new threats and challenges continue to emerge within the defence export sector.

These include rapid development of new technologies that can potentially have “dual-use and military applicability”, as well as misleading or false reporting by a goods export owner, and lengthy time frames.

He added that key takeaways for defence businesses include ensuring that they obtain the correct permits before declaring exports, and he stressed that individuals and businesses should uphold their own due diligence obligations and reach out if any concerns or questions arise.

As Rocha said, “preventing a breach is always better than responding to one”.

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