Legal Basis
- Crisis or armed conflict time
The UK does not have crisis or armed conflict laws or regulations regarding security of supply.
- Urgent reasons (i.e. operational reasons)
The UK does not have crisis or armed conflict laws or regulations regarding security of supply.
- Mergers-Acquisitions
The Enterprise Act 2002 sets out the national regulatory processes relating to mergers and acquisitions, and includes provisions allowing the UK government to intervene in mergers on public interest grounds, including national security. Interventions normally result in the government seeking security undertakings from acquiring companies, in order to retain specific defence capabilities in UK.
Otherwise, the UK is a signatory of the six-nation Letter of Intent Framework Agreement (LoI) to “facilitate the restructuring of European defence industry”. The UK also supports efforts by the European Commission and European Defence Agency to rationalize the European Defence Equipment Market (EDEM).
- Foreign investments
Although there is no specific law governing foreign investment, the Enterprise Act 2002 includes provisions enabling Government intervention in acquisitions by foreign-owned and controlled businesses where there are national security concerns.
The outcome of interventions is, usually, a suite of security undertakings seeking, primarily, guarantees of early notification of any intentions to reduce or sell key sensitive industrial capability, and to manage sensitive defence programmes from within the UK.
- Export licenses
The Export Control Law for ‘strategic goods’ (military & dual use items) are defined in the UK’s parliamentary statutory legislation. As with other areas of the UK’s legislative system, UK export control legislation is derived from both EU law and national UK law. The main UK legislation is called the Export Control Act 2002 and the associated order is the Export Control Order 2008. The legislation also comprises the Control Lists, which underpin export control law by providing a list of controlled items.
Any item exported from the UK that is subject to export control needs a licence. The Export Control Organisation (ECO) is responsible for assessing and issuing (or refusing) export licences for a wide range of controlled so called “strategic” goods. This includes military and dual-use items.
The ECO is responsible for legislating, assessing and issuing export and trade licences for specific categories of "controlled" goods. This encompasses a wide range of items including so-called dual-use goods, torture goods, radioactive sources, as well as military items. Whether a licence is required depends on various factors including the items exported and any sanctions in force on the export destination.
If items exported from the UK are controlled, then a licence is needed to legally export. Exporters are responsible for complying with the law, understanding the regulations and keeping informed.
The ECO issues licences for export, transhipment and trade control (trafficking and brokering) purposes. These licences are issued by the Secretary of State for Business, Innovation and Skills (BIS).
- Codes/Regulations involving Defence Industry
None.
- Other?
Objectives of the national SoS policy
To assure a supply of defence products, materials and services sufficient to discharge military commitments in accordance with Her Majesty’s Government foreign and security policy requirements. Where necessary, it includes the ability to use those goods and services under appropriate UK control, and free of third party constraints.
National bodies involved and areas of responsibilities
The UK National Security Council coordinates responses to the dangers faced, integrating at the highest level the work of the foreign, defence, home, energy and international development departments, and all other arms of government contributing to national security.
The Council is chaired by the Prime Minister. Permanent members include the Deputy Prime Minister, the Chancellor of the Exchequer, the Secretary of State for Foreign and Commonwealth Affairs, the Home Secretary, the Secretary of State for Defence, the Secretary of State for International Development and the Security Minister.
The role of SoS in Procurement procedures (requirements, evaluation etc.)
The UK Ministry of Defence will follow the Security of Supply provisions contained within the Defence, Security and Procurement Directive (DSPD), which will enter into force in August 2011.
Contractual terms on SoS
The DSPD allows procurers to specify security of supply requirements in contract notices and subsequent related tender documentation, and as conditions for the performance of the contract. It contains a non-exhaustive list of documentation and commitments that procurers may require tenders to contain. These are broadly split between:
• Export controls
• Supply Chain
• Intellectual Property Rights
National policy on sharing information on stocks/inventories
Typically, the decision to share both stocks and related information is made on a case-by-case basis. Provisions are agreed through contract, treaty, MoU, etc.
Examples include the LoI, whose Implementing Arrangements allow information to be shared between participating nations; and NAMSA, which is provided with information on national stocks.
Existing Bi/Multi-lateral SoS agreements
The UK has a bilateral SoS arrangement with the United States of America.
The UK- France Defence Cooperation Treaty also contains elements of Security of Supply, which will be developed further under specified programmes.
The UK is also a signatory to the six nations Letter of Intent Framework Agreement – Implementing Arrangement on Security of Supply.
SoS Experts contact info
Warren Bayliss
International Relations Group, Defence Equipment & Support,
MoD Abbey Wood,
Bristol BS34 8JH,
United Kingdom
Telephone: +44 117 913 0271
E-Mail: Warren.Bayliss915@mod.uk
SoS PoCs/National representatives contact info
Warren Bayliss
International Relations Group, Defence Equipment & Support,
MoD Abbey Wood,
Bristol BS34 8JH,
United Kingdom
Telephone: +44 117 913 0271
E-Mail: Warren.Bayliss915@mod.uk
Link to related national websites
Library
Page Last Updated: 10/14/2011