NOTICE TO EXPORTERS – 2012/37
Implementation of the European Union Directive 2009/43/EC (Intra-Community Transfer
of Defence Goods or ‘ICT Directive’)
TOPIC: Legislation amendments
AUDIENCE: All exporters of defence and military goods
Background
1. The Export Control Organisation (ECO), part of the Department for Business, Innovation and
Skills (BIS) has introduced amendments to the UK’s main export control legislation – the
Export Control Order 2008. The amendments appear in Export Control (Amendment)(No 2)
Order 2012 (S.I. 2012 No 1910) which is published on the Legislation.gov.uk website and on
the export control pages of the Businesslink website. The amending Order which comes into
force on 10 August 2012 implements the European Union’s Directive 2009/43/EC (‘ICT
Directive).
2. This Notice outlines:
 What is the ICT Directive?
 Impact on UK’s system of export licensing
 Comparison of EU and UK licensing structures
 General Licences (Article 5 of the Directive)
 Global Licences (Article 6)
 Individual Transfer Licence (Article 7)
 New process for company certification (Article 9)
 Particular points to note about the certification process
 New Open General Export Licence (Certified Companies)
 Seminar on implementation of the Directive
 Questions and Answers
What is the ICT Directive?
3. Directive 2009/43/EC published on 6 May 2009 formed one element of the European
Commission’s Defence Package announced in December 2007. This package of measures
is intended to improve the efficiency and competitiveness of the European defence industry
by addressing the conduct of business and the effectiveness of the market.
4. The specific objective of the ICT Directive is to create a more competitive market for
suppliers of defence equipment across the European Union (EU). The aim is to reduce
national obstacles to the circulation of this equipment within the internal market through the
simplification of licensing systems and procedures. The Commission has acted because the
EU defence market has traditionally been very fragmented due to the different approaches in
EU Member States. This is demonstrated clearly by the different export licensing systems
(27 national systems) where in most cases, little distinction is made between exports to third
countries (ie to non-EU destinations) and for transfers between EU Member States. This
Directive aims to change this situation by introducing some common and simplified licensing
measures across Member States that will reduce the administrative burdens and delays with
a view to enhancing competitiveness within the defence sector.
Impact on the UK’s system of export licensing
Export Control Organisation
Page 1
10 August 2012
5. Broadly speaking, there are few practical implications for UK companies arising from the
implementation of the Directive in the UK. The ICT model used by the Commission is heavily
UK inspired and will allow the UK to operate a system of licensing very close to our current
arrangements.
6. The ICT Directive introduces a three-tier licensing system for those military goods listed on
the EU Common Military List. In the UK this listing is published as part of the ‘UK Strategic
Export Control Lists’ (see our guidance on the export control pages of the Businesslink
website about the control lists – http://www.businesslink.gov.uk/exportcontrol/controllists).
7. The three tier structure being introduced by the EU is as follows:
 General Licences
 Global Licences
 Individual Licences
See below for further detail about how this structure compares to the UK’s licensing
structure.
8. The Export Control Organisation (ECO) part of the Department for Business, Innovation and
Skills (BIS) already operates a similar three tier structure for the export licensing of military
and dual-use goods, software and technology. This structure comprises:
 Open General Export Licences (OGELs)
 Open Individual Export Licences (OIELs)
 Standard Individual Export Licences (SIELs)
which map to the new structure introduced by the Directive.
Comparison of EU and UK licensing structures
9. An explanation of how the EU’s licensing structure for military goods, as introduced by the
ICT Directive, compares to the UK’s licensing structure is provided below:

General Licences (Article 5 of the Directive)
These licences are the equivalent of the UK’s OGELs. Each EU Member State is required
to publish a minimum of four general licences under the Directive as set out in Article 5(2).
This article describes the following types of trade activities:
 the recipient is part of the armed forces of a Member State or a contracting
authority in the field of defence, purchasing for the exclusive use by the armed
forces of a Member State.
 the recipient is an undertaking certified in accordance with Article 9.
 the transfer is made for the purposes of demonstration, evaluation or exhibition.
 the transfer is made for the purposes of maintenance and repair, if the recipient
is the originating supplier of the defence-related products.
The only changes made to OGELs, as a result of the Directive’s implementation, were the
addition of Cyprus and Bulgaria to five named OGELs. ECO announced these changes in
Notice to Exporters 2012/29 published on 3 July 2012.
There are no further changes required to the content of current UK OGELs. These will
remain in force and are unaffected by the implementation of the Directive.
Export Control Organisation
Page 2
10 August 2012

Global Licences (Article 6)
These are the equivalent of the UK’s Open Individual Export Licences (OIELs).
The only significant difference in relation to these licences is that a Global Licence is only
valid for three years.
See the question and answers (Q&A) section below.

Individual Transfer Licences (Article 7)
These are the equivalent of the UK’s Standard Individual Export Licences (SIELs). SIELs
(or individual licences) permit specific items to be exported to specific destinations and
which are valid for two years.
New Process for Company Certification (Article 9)
10. One of the main elements of the ICT Directive is the introduction of a new concept of
certified companies. This is an entirely voluntary process by which UK companies can
apply in writing to your ECO Compliance Inspector to be certified. The certification process is
in accordance with the criteria outlined in Article 9 (2) (a) – (f) of the Directive – which is
reproduced in the UK’s implementing legislation (see link above). By applying to become a
‘certified company’, such companies will be able to receive military goods under the general
transfer licence referred to in Article 5(2)(b) that are put in place in each Member State. This
is the only benefit to a company that becomes certified. See further details in the
attached Q&A.

Particular points to note about the certification process
11. The certification process itself is for those companies who wish to receive military goods
under certified licences published by other EU Member States.
12. The certification process has been designed to facilitate those companies in Member States
who import large quantities of components for integration into sub-systems or systems for
their own production. The military goods received under the certified company licences are
not for re-export as such but to be used by recipients for incorporation purposes.
13. The ‘trusted’ status of certified companies should reduce the need for export limitations to be
applied by Member States on the future use of these goods.
14. The certification process in the UK will be conducted by the ECO’s Compliance Unit. It is not
anticipated that this process will be burdensome on companies who decide to apply as the
criteria used by the Commission has been taken from the UK’s existing Code of Practice on
Compliance. This code represents UK best practice for those UK companies who already
currently make use of open licences. See more information about compliance and
enforcement of export controls on the Businesslink website at:
http://www.businesslink.gov.uk/exportcontrol/compliance.
Export Control Organisation
Page 3
10 August 2012
15. Other specific points to note about the certification process are as follows:
 Certification is valid for five years
 ECO has the right to suspend and revoke the certificates confirming certified
status
 The right of appeals against decisions relating to certification are established in
paragraph 10 of the Export Control (Amendment)(No 2) Order 2012 (S.I. 2012
No 1910)
 The UK’s amending legislation also introduces a new article to provide for the
granting of certificates under the certification arrangements and the basis on
which assessment of certification will be determined.
16. Further EU-wide detail on certification is available in the Commission Recommendation of 11
January 2011.
17. See also the Q&A listed below.

New Open General Export Licence (Certified Companies)
18. The ECO has published a new OGEL (Certified Companies) which is available for any UK
company to use providing that they can meet all the terms and conditions of the licence. You
do not have to be certified to use this particular licence.
19. The purpose of the licence is to permit the export of specified items (listed in Schedule 1 of
the licence) to those certified companies listed on the export control pages of the
Businesslink website (referred to in Schedule 2 of the licence). The licence allows the
certified companies in Schedule 2 to use the items received under this licence for the
purpose of incorporation in their own production of final defence equipment.
20. All certified companies from Member States will be published by the ECO. Download the
ECO list of certified companies. You should always consult this ECO published list first
before using the licence. You should also be aware that the European Commission also
publishes a publically available database – CERTIDER along with guidance on consulting
the CERTIDER database. This European database contains more information about the
certification of companies. However you should always refer to the ECO’s published list.
Other changes
21. There are additionally a number of other aspects arising from the UK’s implementation of
the Directive. These are also outlined very briefly below:
 A new defined term has been introduced (“European military items”) which is
used to limit the amendments made to the 2008 Order to those items within the
scope of the Directive. For example, the Directive does not apply to UK national
controls within the UK Military List and are therefore excluded by the use of the
definition. For more information see the published UK Strategic Export Control
Lists on the Businesslink website.
Export Control Organisation
Page 4
10 August 2012



The exception relating to goods in transit is extended so that it applies to goods
in transit via a vehicle and in relation to activities within the scope of the
Directive.
Record keeping requirements are extended to individual licences relating to
those items within the scope of the Directive (previously only applied to open
licences).
There are a range of new penalties introduced by the new legislation. This
includes a criminal offence to supply misleading information in support of
applications for certification.
Seminar on implementation of the Directive
22. The ECO will be holding a seminar on 14 September 2012 outlining the main aspects of the
UK’s implementation of the Directive. For more details and to book a place, see the ECO
Training Bulletin 8: August 2012.
Contact details for further information
23. For specific queries about implementation of the ICT Directive, please contact:
Ian Bendelow, ECO Policy Unit
Email: ian.bendelow@bis.gsi.gov.uk
Tel: 020 7215 8692
24. For general information about strategic export controls, please contact:
Export Control Organisation
Department for Business, Innovation & Skills
1 Victoria Street
London SW1H 0ET
Tel:020 7215 4594
Fax 020 7215 2635
Email: eco.help@bis.gsi.gov.uk
Website: http://www.businesslink.gov.uk/exportcontrol and http://www.bis.gov.uk/exportcontrol
SPIRE: https://www.spire.bis.gov.uk
This Notice is for information purposes only and has no force in law. Please note that where legal advice is
required UK end users and consignees should make their own arrangements.
If the Notice is relevant to your exports, you are recommended to take appropriate action as necessary. You are
also advised to keep a copy of this notice for your compliance records.
10 August 2012
Export Control Organisation
NTE2012/37
Export Control Organisation
Page 5
10 August 2012
NOTICE TO EXPORTERS – 2012/37
Implementation of the European Union Directive 2009/43/EC (Intra-Community Transfer
of Defence Goods or ‘ICT Directive’)
Questions and Answers (Q&A)
Certification
1. How do I apply to become a certified company?
You should write to your ECO Compliance Inspector with your request who will then make
arrangements for an audit to take place. You need to be audited first before becoming a
‘certified company’.
2. Is certification at company level or can it be site specific?
Both options are possible – you will need to make this clear when you contact us.
3. Is certification compulsory for all companies?
No – certification is entirely voluntary.
4. My site has recently had a compliance audit – will I be audited again?
Much will depend on how recently you were audited and the outcome. But, in practice, a new
audit will be necessary for us to grant a certificate of certification.
5. Do I need to be certified to use the certified company OGEL?
No – any company can export under this licence, subject to meeting the condition of the
licence. However, to receive goods from the equivalent licences established in other Member
States you would need to be a UK certified company. You can register to use the OGEL
(Certified Companies) via SPIRE if you can meet all terms and conditions of the licence.
6. How can I be sure of the certified companies in Member States that can receive
goods under the certified OGEL at any given time?
You will need to check the list published on the ECO’s export control pages (which will be
regularly updated) each time you plan to export under this licence, as these companies will
change from time to time.
7. How many companies will be certified in Member States? Will it be worthwhile my
company going through the certification process?
This is too early to predict at this sta ge. Your decision will be based on how many
components and other equipment you import in your particular business function.
8. What are the criteria for certification?
This is set out in Article 9 of the ICT Directive. It is also reproduced in Article 7 28A 2(a)-(f) in
the Export Control (Amendment) (No 2) Order (SI 2012/1910) which amends the Export
Control Order 2008. You will be judged against these criteria in the ECO compliance audit.
Export Control Organisation
Page 6
10 August 2012
Licensing
9. Will there be any further changes to OGELs as a result of the Directive?
No – nothing beyond the changes already announced in Notice to Exporters 2012/29 about
destinations changes to five military goods OGELs. This Notice was published on 3 July
2012.
10. What changes will be made to OIELs resulting from the Directive?
OIELs issued from 10 August 2012 covering goods under the Directive will be limited to a
validity of three years.
11. What is the concept of renewable OIEL licences?
This is a new concept for the UK. We are thinking over our options in this area and will
announce our conclusions in the near future. This is however, likely to mean simplified
procedures for the renewal process for OIELs.
12. Is there anything I can do to receive OIELs for a longer validity period?
The three year OIELs only relate to goods covered by the Directive and to other EU Member
States. You should therefore consider submitting OIELs for countries outside of the Directive
scope to achieve this.
13. Have any changes been made to the export licence application form?
One additional question has been added to the application form for SIELs requiring an
applicant to confirm that they have complied with export limitations in licences granted by
other Member States under the Directive.
Export Control Organisation
Page 7
10 August 2012