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SALE, MR, Monda

HOUSE OF LORDS

PROTECTION OF TRADING INTERESTS BILL

DEPARTMENT OF TRADE

NOTES ON CLAUSES

CLAUSE 2

1. This clause replaces Section 2 of the Shipping Contracts and Com-

mercial Documents Act 1964. It extends the circumstances in which a

direction can be given prohibiting compliance with a requirement to pro-

duce documents or provide information to foreign courts and authorities.

Alternative tests are added to the test of the 1964 Act that the require-

ment must constitute an infringement of the jurisdiction of the UK.

2.

The Clause applies where a person in the United Kingdom has been

or may be required to produce to a court, tribunal or authority of an

overseas country commercial documents which are located outside that coun-

try, or to furnish to such a court, tribunal or authority any commercial

information; or where an authority of an overseas country has imposed or may

impose a requirement on such a person to publish such a document or informa-

tión. It provides that the Secretary of State may, in certain circumstances,

give directions prohibiting compliance with such requirements. The Sec-

retary of State may give such a direction when the requirement is "inadmis-

sible" as defined in this Clause. "Inadmissible" here is used as the

description of requirements which satisfy the conditions of subsection

(2) and (3). It has no evidential implications.

3.

A requirement to produce documents or furnish information is "inad-

missible" if it infringes the jurisdiction of the United Kingdom or is

otherwise prejudicial to the sovereignty of the United Kingdom; if comp-

liance with the requirement would be prejudicial to the security of the

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