Commentary on Sections Section 2: Transfer controls
15.Subsection (1) provides the Secretary of State with order-making powers to introduce transfer controls on any type of technology and to make provision about matters connected with the imposition of such controls.
16.The Secretary of State can use these powers to control the transfer of technology by any means and to specify the technology or classes of technology to be controlled.
17.This power will (together with the powers in section 3) allow implementation of the European Union Joint Action of 22 June 2000 concerning the control of technical assistance related to certain military end-uses (2000/401/CFSP) agreed by the UK and other EU Member States.
18.Subsection (2) defines what is meant by “transfer controls”, making it clear that the Secretary of State may prohibit or regulate transfers of technology such as transfers by e-mail, fax and telephone (defined in subsection (6) as the transfer of technology by any means, including by oral communication, other than the export of physical goods) that are made:
	by a person or from a place within the UK to a person or place outside the UK;
	by a person or from a place outside the UK to a person or place also outside the UK, where the transfer is done by or is within the control of a UK person;
	by a person or place within the UK to a person or place also within the UK where there is reason to believe that the technology may be used outside the UK;
	by a person or from a place outside the UK to a person or place within the UK where there is reason to believe that the information may be used outside the UK and the transfer is by or within the control of a UK person.
“United Kingdom person” and “place” are defined in section 11.
19.Subsection (4) provides that the power to impose transfer controls is subject to section 5, which places general restrictions on the imposition of control orders.
20.Subsection (5) ensures that the Secretary of State by an order made under this section may make provision supplementing controls imposed by Community regulations on the transfer of technology, for example provision for the enforcement of such a regulation.
21.Subsection (6) defines “transfer” and “technology”.