Dual Use

Dual use is a central concept in international trade and is highly relevant for companies and institutions working with goods and technologies that can be used for both civilian and military purposes. The regulation of such goods is subject to strict rules aimed at maintaining security while promoting legal trade. Read all the news on the legal framework, the Dual-Use Regulation and the practical implementation of export controls from the Table.Briefings editorial team here. What are dual-use goods? Dual-use goods are products, technologies and software that can be used for both civilian and military purposes. This includes, for example, materials used in the chemical or nuclear industry, as well as high-tech products such as encryption software or certain machine technologies. These goods are subject to special export controls to prevent them from being misused in conflict regions, for military purposes or for the production of weapons of mass destruction. These controls are internationally regulated and are intended to minimize global security risks. What is a non-dual-use declaration? A non-dual-use declaration states that a product, technology or knowledge is used exclusively for civilian purposes and cannot or must not be used for military or armaments-related applications. The term dual-use refers to goods that can be used for both civilian and military purposes. In order to prevent the misuse of such goods, authorities in many countries require companies, research institutes or exporters to submit a non-dual-use declaration. This declaration is often required as part of export controls or when trading sensitive technologies to ensure that the exported or traded goods are not used to manufacture weapons or other military products. It plays a particularly important role in international trade and in high-tech industries to ensure that products do not fall into the wrong hands. Do dual-use goods always require a license? Not all dual-use goods are necessarily subject to authorization. The question of whether a license is required depends on several factors: the specific goods, the destination and the end use. According to the EU Dual-Use Regulation (Regulation (EU) 2021/821), there are goods that only require an export license if they are exported to certain third countries or if they are considered particularly sensitive. There are also non-listed dual-use goods for which a license may also be required depending on the end use or country of destination. One example of this is goods that could be used for the manufacture of weapons of mass destruction. Which goods fall under dual-use? A detailed list of dual-use goods can be found in Annex I of the Dual-Use Regulation. In particular, this includes goods used in nuclear technology, chemical substances, electronics and telecommunications, as well as aerospace. A regular review of the updated list by the companies is important, as new goods can constantly fall within the scope of dual-use goods due to technical progress. How is dual-use checked? Dual-use goods are usually checked by compliance departments in companies that work closely with export control authorities. There are special inspection procedures that ensure that all aspects of the Dual-Use Regulation are complied with. The following factors play a role here: To support these checks, companies can make use of specialized databases and systems that provide regularly updated information on the respective countries and end uses. What are non-listed dual-use goods? Non-listed dual-use goods are goods that are not explicitly listed in the Dual-Use Regulation but could potentially be used for military or dangerous purposes. Such goods are subject to a so-called "end-use test" (catch-all clause). Companies must be particularly vigilant here, as in certain cases it may be necessary to obtain a license even for non-listed goods if there are indications of misuse. Who checks dual-use? Dual-use goods are checked at various levels. On the one hand, companies themselves are obliged to monitor their exports and ensure that the relevant goods are handled in accordance with the export control regulations. On the other hand, national export control authorities are responsible for checking and issuing licenses. In Germany, for example, this is the Federal Office of Economics and Export Control (BAFA). At EU level, control is coordinated by the cooperation between the national authorities and the European Commission. Where can I find dual-use goods? Dual-use goods are listed in detail in Annex I of the EU Dual-Use Regulation. This list contains a wide range of goods and is updated regularly. Companies can consult this list via platforms such as EUR-Lex or national authorities to ensure that they are always up to date. In addition, many countries and organizations offer special databases and online tools to help companies classify their goods and identify potential dual-use items. Where can I find the Dual-Use Regulation? The complete Dual-Use Regulation of the European Union can be found on the EUR-Lex platform. Dual Use EUR-Lex is the EU's central online portal for legal texts and provides access to all legal acts, directives and regulations. Experts can not only view the current version of the Dual-Use Regulation here, but also track previous versions and amendments in order to bring their compliance processes up to date. In the area of export controls and international trade transactions, precise knowledge of the Dual-Use Regulation and the corresponding export regulations is essential. The responsibility for checking dual-use goods lies with the company itself, with national and European authorities closely involved to ensure that no prohibited exports take place. Regular review and compliance with regulations, particularly with regard to classification and licensing requirements, is crucial to avoid legal consequences. Through a careful compliance strategy, regular training and the use of online resources such as Dual Use EUR-Lex, companies can ensure that they fully meet their responsibilities in the area of dual-use goods.

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