Export Controls – Cloud Computing

Cloud computing involves shared computer networks to access either technology (instructions of any sort, designs or specifications) or software.

Transferring information to an overseas buyer is often seen as an export, just as it is with goods, and if this information is controlled in any way an export licence is likely to be needed. Controls do not come into play where the information is already available to the public, however, if for instance the information has a dual use, namely none-military as well as military, controls may well be in place.

Uploading the information in itself does not require a licence, and the information may go to different servers in different countries around the world. This is the same when the information is sent to the UK, but not downloaded in the UK, but forwarded on elsewhere. However, there are some differences in these rules from country to country.

Even accessing and then changing controlled data when travelling overseas, even though it may be inter-company, licences may be required. If however information is accessed but changes made are not saved while in the overseas territory, no licence will be required. Again though this varies from country by country. So in order to avoid the need for any licences, it is best to delete such software while in the overseas territory prior to returning home, or at the very least, do not save any changes made.  

Actions required to protect information include the following:

Encryption in order to protect software on its way to the recipient, although in some situations and some countries, authorities may not see this is adequate in itself.  

Clearly identifying and labelling the individual technology and software where controls apply within an organisation.

Work with the cloud-based server supplier in order to prevent information being routed through sanctioned areas.

Controls on access and involving signed for logs of all access to the technology by staff, as well as any copying or transfers made.

US controls may place rules on transfers to the UK as well as within the UK, therefore specific measures of control need to be in place. This could even aply to UK made items, but with US content.

Post BREXIT, the control of military technology and software will not change as it is regulated under International Law. It is also unlikely the dual use regulations will change, as the UK is likely to adopt the EU law which is currently in use in the UK.

Please note the information above is not legally binding and is only an opinion.

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