A brief summary of the EU Dual-Use Directive

For advisory activities in export control, the EU Dual-Use Regulation is one of the most important legal sources. In the following, I would like to highlight the most important aspects. In doing so, I will look at the legal situation from Germany’s point of view. Apart from a few deviations, however, it is identical throughout the EU.

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The norm concerns the export of so-called “dual-use goods”. These are dual-use goods, i.e. products, software and technology that can be used for both civilian and military purposes. These include, for example, aviation electronics, marine technology and lasers. Under the ordinance, exports are subject to strict legal regulations; there are severe penalties for violations. The norm concerns the export of so-called “dual-use goods”. These are dual-use goods, i.e. products, software and technology that can be used for both civilian and military purposes. These include, for example, aviation electronics, marine technology and lasers. Under the ordinance, exports are subject to strict legal regulations; there are severe penalties for violations. Export means – without some exeptions – only the export to territory outside the EU.

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First, it will be explained which products are directly affected. The regulation actually contains specific annexes with listings for this purpose. If a good is listed in the annexes of this regulation, it requires a license for export to non-European countries – in a few, narrowly defined cases, this also applies to deliveries within the EU. Listing is mainly based on technical parameters and is coordinated in international export control regimes. Certain dual-use goods are also listed as requiring a license at national level in the regulations of the Foreign Trade and Payments Act and the Foreign Trade and Payments Ordinance. However, the export or brokering of non-listed dual-use goods may also be subject to licensing under certain conditions (“catch-all clause” in Article 4 EC (Regulation) 428/2009 as well as Articles 4 and 5 EU (Regulation) 821/2021).

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Then there are some special characteristics: General licenses (AGG) facilitate the export of software and technology requiring a license within the group (No. EU007) and the export of goods of encryption (No. EU008). A prerequisite for the use of AGG No. EU007 is that the exporter has established an internal export control system (Internal Compliance System ICP). Also to be noted: There is also a new authorization type for large projects with a longer duration. Restrictions on unlisted digital surveillance items if they could be used in connection with internal repression and/or serious human rights violations. In addition, there is another catch-it-all clause under Article 5, namely restrictions on unlisted digital surveillance goods if they could be used in connection with internal repression and/or serious human rights violations.