Export controls decision

Ministry Statements & Speeches:

The Ministry of Foreign Affairs and Trade today confirmed it had reached a determination about the controlled goods status of GE LM2500 marine gas turbine engines.

Air New Zealand has undertaken service on these engines for a variety of customers over past years, including the Royal Saudi Navy. Any item found to be controlled under the New Zealand Strategic Goods List requires a permit to be exported further to the Customs and Excise Act 2018.

The Ministry had not previously made a determination about the status of these engines. On the basis of technical information obtained, the Ministry has assessed the engines are not a controlled item. This is because they are not a component specially designed for military use, and they do not possess any unique military capabilities or any inherent military technologies. Given public interest, this determination was reviewed by the Crown Law Office prior to finalisation.

There is value in companies having early contact with the Ministry where there is any question as to whether a good to be exported is controlled. The introduction of catch-all controls in October 2020 now means that even if a good does not fall under the Strategic Goods List, it may still need a permit to be lawfully exported if it is going to a military end user.

More broadly, in line with ministerial commissioning, the Ministry will be carrying out a review of its export controls regime to ensure it is fit for purpose and demonstrated to be so. The Ministry will provide a draft Terms of Reference for the review to Foreign Minister Mahuta by the end of the week.


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