Dual-Use Regulation Lists Goods Requiring Authorization

Specific products subject to export controls are primarily defined within international treaties. The central legal framework for the export, transit, brokerage, and transfer of dual-use goods from the European Union for Germany and other member states is the European Dual-Use Regulation, which translates international treaties into European law.

If an item is listed in the annexes of this regulation, its export outside the EU requires authorization – and in a few specific cases, this also applies to intra-EU deliveries. Inclusion in the list is mainly based on technical parameters and coordinated within international export control schemes.

In addition to the European regulation, certain dual-use goods are listed as requiring authorization at the national level under Germany's Foreign Trade and Payments Act and Foreign Trade and Payments Regulation. On 17 July 2024, the 21st amendment to the Foreign Trade Regulation updated the export list. Furthermore, the export or brokerage of unlisted dual-use goods may require authorization under specific circumstances ("catch-all" clause in Article 4 EG (VO) 428/2009 as well as Articles 4 and 5 EU (VO) 821/2021).

The Federal Office for Economic Affairs and Export Control (BAFA), as the national licensing authority, examines who the goods are delivered to and for what purpose. Without export authorization from BAFA, dual-use goods cannot be exported. Violations can result in severe financial or custodial penalties for the responsible management team. For this reason, export control in many companies is regarded as a top priority.

Modernization of the 2009 Legal Framework

In 2016, the European Commission proposed a revision of the 2009 EG Dual-Use Regulation. A political agreement was reached under Germany's Presidency in November 2020 on this complex dossier. Following formal adoption by the European Parliament on 25 March 2021 and the Council on 10 May 2021, the new Dual-Use Regulation was published in the European Union's Official Journal on 11 June 2021. It came into effect 90 days later, on 9 September 2021.

The list of dual-use goods is regularly updated to ensure compliance with international commitments. Against this backdrop, the European Commission published Annex I updates to the Dual-Use Regulation (EU) 2021/821 through Delegated Regulation (EU) 2023/2616. The changes took effect on 16 December 2023.

Regulation Aims to Promote Cooperation and Transparency

The regulation includes changes for the export of certain surveillance technologies, technical support, licensing types, and procedural simplifications. It also aims to strengthen cooperation among member states and introduces new transparency requirements. Many elements initially proposed in the 2016 Commission proposal were ultimately not included in the final text of the new Dual-Use Regulation.

For instance, companies exporting digital surveillance goods must now adhere to stricter European control provisions and new transparency rules. Additionally, the provision of technical support at the EU level has now been regulated for the first time. In specific cases, national listings from other EU member states may also be adopted.

It is envisaged that authorizations – albeit in abstract form – will be published by the European Commission. Companies meeting certain requirements can benefit from European General Authorizations, allowing exports without a specific application process. The DIHK advocated these procedural simplifications during the reform process.

White Paper on Strengthening Dual-Use Export Control in Europe

On 24 January 2024, the European Commission unveiled the Economic Security Package in response to the Security Strategy adopted in June 2023. This package introduces five key initiatives aimed at enhancing economic security in Europe.

One initiative is the Commission's White Paper on Dual-Use Export Control in Europe. This document outlines short- and mid-term measures to address rising geopolitical tensions.