On 12 January 2023, an updated EU list of dual-use items entered into force (Annex I to Commission Delegated Regulation (EU) 2023/66 of 21 October 2022 (the “EU Dual Use Items Regulation”) amending Regulation (EU) 2021/821 of the European Parliament and of the Council).
The EU list of dual-use items includes goods which can be exported to non-EU countries only if an export license has been granted by the competent EU member state authority. Such goods include items which, by virtue of their nature or properties, can be used for both civilian and military applications.
The newest amendments largely concern the digital world and include new entries in the field of:
- Bioscientific and biochemical technology
One of the most substantial additions to the list of dual-use items is a software used in DNA assemblers or synthesisers that can design and create functional genetic elements using digital sequence data. With this listing the Commission intends to prevent the use of DNA-manipulating technology in bioweapons research.
- Automotive and transport
Several new listings adapt pre-existing export restrictions to the latest developments in (digital) radar technology.
- Other software and digital technology
Annex I introduces a standardised concept of software in the field of aviation security and also adds new types of software and digital technology as a controllable medium.
The newest amendments reflect the growing tendency of the European Commission to include more software and digital technology in the list of controlled items. Thus, companies employing software in manufacturing processes, whose products or properties are already covered by European restrictions, should be particularly vigilant because manufacturing software will likely become an even greater focus of export control regulations in the future.
Companies should generally be aware of the amendments of Annex I of the EU Dual-Use Items Regulation and adapt their internal compliance regimes accordingly, i.e. by imposing regular review intervals.
In the light of the newest amendments, companies with business in relevant sectors should check whether and to what extent their operations and products are affected by the new listings. Additionally, companies that provide services in the areas of digital technology and biotechnology, as well as the automotive and transport sectors should check whether the new provisions apply to them.
Our team is ready to help and advise
As our office considers it necessary to contribute to the security and defence sector, we continue to strengthen and build our expertise in this area. Experts from the Sorainen Defence sector group, together with experts from other fields, will definitely be able to offer you precise solutions.
