Casselle Commercial Services Pty Ltd

Facsimile Transmission

1. The New Zealand Government observes similar export conventions to those of Australia and the UK and it appears that its regulations (and restrictions) are currently structured to reflect the special export requirements of those countries. (It is assumed that as a recipient of "sensitive" technologies, New Zealand is obliged to impose restrictions on their re-export). New Zealand is also a signatory to the COCOM export control regime as well as numerous other multilateral agreements involving arms control.

   Accordingly, there is a control regime in place which monitors trade in products commonly known as "Strategic Goods".

2. The types of "Strategic Goods" subject to restriction include, inter alia:
   • Computer technology

   • Information security systems

   • Telecommunications equipment

   Discussions with the relevant Authorities revealed that computer software of the type under consideration would fall within the above classes of goods.

3. Export control is exercised pursuant to the provisions of the Customs Act 1996 and the Export Prohibition Regulations 1953. While the New Zealand Customs Service administers the legislation, export approvals must be sought either from the:
   • Ministry of Defence; or

   • Ministry of Foreign Affairs and Trade (International Security and Arms Control Division)

   In the case of the clients software and for other "Strategic Goods" as defined, applications will need to be made to the Ministry of Foreign Affairs and Trade.

4. Because of the difficulty in identifying which exportable goods may have dual, civilian/military applications (apart from the obvious), New Zealand Customs have tended to apply restrictions based upon the countries of destination (under the old COCOM rules). For example, export permits are demanded for shipments consigned to:
   • certain former communist/Eastern Bloc countries;

   • certain Middle-East and Central Asian countries; and

   • those countries which are subject to United Nations sanctions

   In practice, any computer software which was cosigned to the USA for example, would be unlikely to attract any Customs demand for an appropriate permit.

   Upon referring this issue to the Ministry of Foreign Affairs and Trade, I was informed that there were imminent changes to the Regulations [1] which will result in the Ministry taking a more active role in scrutinizing the export process.

   In the circumstances, I was invited to contact the International Security and Arms Control Division for further discussion on whether a format (export approval) application was required in this instance.

In summary, the New Zealand system of export control is similar to that applying in Australia. Within the context of a due diligence requirement, an application for permission to export appears to be unavoidable.

I await further instructions.

Regards

[Deleted]