Danish-Greenlandic declaration towards uranium trade

On 1 February 2016, a joint declaration on export controls of dual-use items and technology between the Danish Ministry of Business and Growth/Danish Business Authority (DBA) and the Greenlandic Department of Industry, Labour and Trade (DILT) was published. The declaration reflects a political commitment on how Greenland and Denmark will structure a system based on “cooperation, mutual respect and equality”, where compliance with the Kingdom’s export control obligations is a common task for Denmark and Greenland. As such, consultation with Greenland is built into the system. It does not alter the distribution of competencies between Denmark and Greenland.

The declaration is a necessary first step for Greenland and Denmark to establish a framework for managing the trade of dual-use items in Greenland, and it serves as the basis for forthcoming legislation for controlling the exports of dual-use items and technology from Greenland.

Dual-use Declaration

The declaration sets out a framework for Greenland and Denmark to ensure compliance with the Kingdom’s international export control obligations in relation to uranium and all dual-use items. These items, software and technology are ‘dual-use’ in that they can be used in both commercial and military applications and/or as precursors or components of weapons of mass destruction. The declaration therefore not only includes uranium exports, but the trade of all dual-use items in Greenland.

Denmark implements EU Regulations that control exports, transfer, brokering and transit of dual-use items which are derived from international treaties such as the Chemical Weapons Convention (CWC), Biological Weapons Convention and UN Security Council Resolution 1540. While the international commitments mentioned all extend to Greenland, the island is not a member of the European Union and therefore it does not apply EU Regulations.

Legislation in Denmark

The declaration states that forthcoming legislation will be modelled on current Danish legislation and therefore EU regulation. Denmark follows Council Regulation 428/2009 which provides common EU control rules, a common list of dual-use items as well as coordination and cooperation to support consistent implementation and enforcement throughout the EU. The items listed in the 269-page Regulation are related to agreed dual-use controls as per the CWC, as well as the export control regimes of the Wassenaar Arrangement (conventional arms and dual-use goods and technologies), Missile Technology Control Regime (controlled items related to delivery systems), Nuclear Suppliers Group (nuclear exports and nuclear-related exports), and the Australia Group (exports of certain chemicals and biological agents and dual-use facilities and equipment).

The EU Regulation is in some ways more stringent than that of the Nuclear Suppliers Group, which Denmark is a member of. The EU Regulation extends controls to smaller quantities (exempting four grams or less ‘contained in a sensing component of instruments’) of uranium ore concentrates (UOC) whereas the NSG guidance stipulates that UOC exports for nuclear purposes that exceed 500 kilograms should be reported.

There is also Delegated Act (dansk bemyndigelseslov) LBK nr. 635/2011 which is supportive Danish legislation to the EU Regulation. This is further supplemented by Order n. 475/2005 On the Control of Exports of Dual-use Items and Technology and Control of Provision of Technical Assistance. Taken together, the two apply certain EU rules on economic relations with third countries, prohibiting transport of dual use items and technical assistance outside of the EU which is linked with the proliferation of chemical, biological, radiological and nuclear weapons. The prohibition against providing technical assistance and transport of dual use items are applicable only on products and technology that is subject to control according to the EU Regulation. They also contain penalties and administrative measures.

A Danish-Greenlandic Structure

According to the declaration, forthcoming legislation will include an authorisation for the Danish Ministry for Business and Growth to set the regulations and detailed requirements regarding dual-use items in Greenland. The Danish Business Authority (DBA) or Erhvervsstyrelsen is identified as the competent authority for managing export controls of dual-use items and related technology. DBA also administers an electronic reporting system for export control management in Denmark. The declaration notes that a separate system will be developed to register and manage applications for dual-use items for Greenland. DBA will coordinate with DILT to develop a website with information on dual-use export control rules, application procedures, etc., which will be located on Greenland's Business Portal. The website will be based on DBA's existing website.

Export permits are required for the export of all listed dual-use items, including uranium ore and uranium ore concentrates. The declaration is fairly detailed in the joint structure for the application process which begins with the operator digitally submitting an application to Greenland’s online Business Portal which automatically generates a receipt (from DILT). DBA in turn assesses the application in conjunction with other ministries and agencies such as the Danish Police Intelligence (PET), Defence Intelligence (FE) and others as required. The Ministry of Foreign Affairs must be involved to confirm uranium exports are subject to a Nuclear Cooperation Agreement. DBA consults DILT before decisions are taken and export permits issued will carry DILT’s logo. DILT can conduct tasks related to the control of Greenlandic companies on behalf of DBA to ensure companies have the necessary knowledge and internal procedures in place and whether the company has completed the necessary documents correctly.

The declaration notes that forthcoming legislation on dual-use exports will include provisions for DBA to undertake ‘control visits’ to Greenlandic businesses to ensure compliance. Similar to DILT’s role in safeguards inspections, DILT can accompany DBA on such visits and can undertake them on DBA’s behalf. The Greenlandic Customs Authority also will assist the Danish Business Authority in controlling dual-use exports according to the rules that will be determined by the forthcoming legislation. The Greenlandic Customs Authority will be able to prevent shipments and will notify the DBA and DILT if it takes such action.

While the Danish Ministry of Foreign Affairs is responsible for Denmark’s participation in international export control regimes, both DBA and DILT can participate in these meetings. If DBA is not present, DILT can participate.

Offences are enforced under the Criminal Code for Greenland. The declaration underscores that enforcement measures related to companies and individuals in Greenland will be determined in the forthcoming law and will be similar to those that apply for Danish companies or individuals.