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Revised List of Dual-Use Goods Prompts Export Companies to Take Action

Jun 27, 23 • Customs LawNo Comments
Revised List of Dual-Use Goods Prompts Export Companies to Take Action

The Dual-Use Regulation regulates the export, transit and brokering of items that have both civilian and military applications. It aims to prevent the proliferation of weapons and technologies that could be used for harmful purposes while still facilitating trade in legitimate dual-use goods.

The EU Dual-Use Regulation (DVR) governs restrictions on the export of goods that have both civilian and military applications. The list of applicable goods is extensive. Annex 1 of the Dual-Use Regulation identifies items that are conclusively deemed to have dual-use potential. For such items, the export process is subject to authorization or may be entirely prohibited.

Examples of such goods include:

  • Electronic components
  • Sensors
  • Lasers
  • Marine and ship technology
  • Drive systems (e.g. turbines, motors, etc.)
  • Communication technology
  • Navigation technology
  • Specific software

Software and technologies included in the Dual-Use Regulation

Under Regulation (EU) 2023/996 dated February 23, 2023, this Annex underwent amendments. These amendments took effect on May 26, 2023. The listing was entirely replaced with an updated version. Notably, the listings for software and technologies were expanded.

What does this mean for exporters?

Due to recent amendments, the documents previously used for the export of dual-use goods are now outdated! The continued use of these documents poses a risk of errors. Goods that were not listed earlier may now be included. It is imperative to verify this information!

Items not included on the list may also be considered dual-use goods

Simply because goods do not appear in Annex 1 does not mean that their export is freely permitted. Even then, the goods may still fall under the Dual-Use Regulation. In short, this is the case if the exporter is aware that the goods are intended for military purposes or has informed the Federal Office of Economics and Export Control (BAFA) of their military use. The exporter is subject to a heightened duty of care.

Note: We strongly recommend conducting a thorough examination under export law if you suspect dual use. We would be happy to assist you in this process!

What could be the worst-case scenario?

In the event of a violation of the Dual-Use Regulation, the company, its management and the responsible employees may face the following consequences:

  • Negligent infringement: fines of up to 500,000 euros for the company and its responsible employees, including management
  • Willful infringement: fines or imprisonment of up to five years
  • Confiscation of goods by the authorities
  • Liability claims for the contractual partner

The conclusion of a contract that obligates the exporter to export is subject to legal penalties. Therefore, a thorough examination of the contract beforehand is essential.

We review your transportation project and represent you in case of any issues

We provide consulting and support to our clients on all matters related to dual-use goods. We will gladly assess the export project from the perspectives of customs law and foreign trade law. Our work particularly emphazises representing our clients in handling the BAFA, customs, the public prosecutor’s office and court proceedings. Please feel free to contact us with your questions at any time!

Continue reading:
Consultation on German Customs Regulations
Calculation of The Customs Value in Germany: Including Costs For Quality Inspection

Stefan Winheller

Attorney Stefan Winheller has specialized in tax law for about 20 years, especially in the areas of cryptocurrencies, foundations/nonprofits and international tax law.

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