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Export control is intended to ensure that sensitive goods can be exchanged while safeguarding German security interests – without unnecessarily hindering trade. The DIHK (German Chamber of Commerce and Industry) presents proposals on how this difficult balance can be better achieved.
Global trade relations are becoming increasingly complex; at the same time, geopolitical challenges are growing against the backdrop of crises and wars. In this environment, effective, transparent, and smooth export control is particularly important for Germany as an export nation.
An overly rigid control system can seriously hinder trade flows and stifle innovation. To remain internationally competitive, German companies must be able to give their customers in third countries binding assurances about whether and when they can deliver their products. This requires simple and clear regulations – they facilitate access to export controls for businesses and promote acceptance.
Reducing barriers
How obstacles can be removed, and export control can be designed to meet the requirements of a modern, globalized economy is outlined by the DIHK in its paper "Simplifications in Export Control".
It proposes concrete measures to reduce the administrative burden on companies while ensuring the necessary security. The range includes abolishing unused regulations, promoting digitized and automated approval procedures, and strengthening cooperation between relevant authorities.
Examples for DIHK Proposals
The DIHK proposes that the Federal Office of Economics and Export Control (BAFA) sets up a database in which decisions, guidelines or leaflets can be found quickly. An AI-based tool could significantly improve access and orientation for companies. By eliminating company inquiries, BAFA would free up capacities to process and assess individual approval procedures more quickly.
The German Chamber of Commerce and Industry (DIHK) suggests combining BAFA's "Conversion Table" with commodity lists for smoother cross-referencing.
Companies are regularly requested by customs, despite having conducted careful export control checks, to either obtain information about the goods list from BAFA or present a "zero notification" stating that no approval is required for a transaction. This demanding process could be avoided if customs officers were better trained to understand the frequently complex issues and clear up any doubts with businesses through dialogue.
In export declarations, economic operators use codings to indicate that they have examined the process with regards to possible prohibitions and restrictions and report their findings. Recently, the number of possible codings, especially for exports to embargoed countries, has grown significantly. The DIHK advocates for a considerable reduction.
Although processing times for export applications requiring individual approvals in Germany have recently shortened, they remain too long. This is especially the case when the BAFA needs to involve ministries in Berlin. The German Chamber of Commerce and Industry (DIHK) presses for acceleration, particularly for recurring applications involving familiar recipients, business arrangements, goods categories, and end uses.
General licences are official authorisations that expedite delivery processes, ensuring immediate planning security.
Regulations never applied in practice should be abolished, for example Article 4 Paragraph 1 c of the EU Dual-Use Regulation. The rule states that dual-use items uniformly controlled across the EU must be approved if the exporter has been informed by the competent authority that these items are to be entirely or partially components of military goods that have been illegally exported.
The embargo rules of the EU – for example those against Russia – often change at short notice and must be quickly implemented by companies. It would be helpful for businesses if a consolidated version of the regulations were available immediately upon their entry into force, with clear markings of the changes. This would make it easier for enterprises to understand and implement the updates, which would also relieve the authorities.
