New controls on exports of dual-use technology

The ordinance will come into effect on January 1, 2007, and will require exporters of dual-use technologies to obtain prior permission from the Ministry of Industry.

Minister of Industry, Trade and Labor Eli Yishai has signed a supervisory ordinance on the export of dual-use goods and services. The Ministries of Industry, Defense and Foreign Affairs jointly set the criteria. The ordinance will come into effect on January 1, 2007, and will require exporters of dual-use technologies to obtain prior permission from the Ministry of Industry, Trade and Labor. During November, the Israel Export and International Cooperation Institute will hold detailed seminars for relevant exporters.

Zeev Barel, deputy head of the ministry's chemistry administration said the ministry would sign export permits within five to twenty days, after a company undertakes not to deviate from the deadlines for transaction permits set for certain categories of products. Some of these categories require inter-ministerial examination. If only the Ministry of Industry, Trade and Labor has to conduct the examination, an export permit will be granted within five working days.

Israel faced a crisis with the US over alleged military cooperation between Israel and China when Israel Aircraft Industries Ltd. (IAI) was due to upgrade Harpy attack unmanned aerial vehicles (UAVs) for the People's Liberation Army. The dispute with the US was settled, in part, after the signing of an MOU on Israeli arms sales to other countries, and the export of dual-use products. The Ministry of Industry, Trade and Labor will supervise these products, while the Ministry of Defense will continue its supervision of military products. The Ministry of Defense set up a new export supervision department for this purpose.

The ordinance will supplement other supervision ordinances aimed at compliance with international arms control regimes for the export of dual-use goods. Israel will join the regime that is currently applied in 40 countries. Israel is not a member of the Wassenaar Arrangement Export Controls for Conventional Arms and Dual-Use Goods and Technologies, claiming security grounds, but it can now apply for the same status as signatory countries.

Published by Globes [online], Israel business news - www.globes.co.il - on October 16, 2006

© Copyright of Globes Publisher Itonut (1983) Ltd. 2006

Twitter Facebook Linkedin RSS Newsletters גלובס Israel Business Conference 2018