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Export Controls are restrictions imposed by governments on the tangible and intangible movement of certain goods, software, and technology and on the provision of technical assistance related to controlled items and other restrictions on trade. Eu businesses exporting goods outside the EU may be subject to licensing requirements when dual-use goods, goods used both in civil and military applications, are exported.
The recast of the EU export control legislation is expected to enter into force in autumn 2021. EU businesses and those moving dual-use goods out of the EU or via Eu territory need to be ready for these controls and changes, dubbed a "System Upgrade". New controls in relation to cyber-surveillance and human rights abuses have been introduced, definitions of key terms amended.
There is a new "EU Watch List" and new general licenses are to come into force. It is imperative for any business in the EU (but also from the UK) to gain fundamental awareness of the key provisions of the new law and get practical steps of how to implement the new rules.
WHAT WE COVER
EU legislative procedure: procedure and current status
From the Commission Draft 2016 to the Final Compromise Text 2020
Overview of significant changes
Selected changes in the individual consideration
New export restrictions/catch-all for goods under surveillance
Extended restrictions on (trading and) brokering activities
(For the first time) EU restrictions on (trading and) brokering activities
National opening clause and EU-wide enforcement
EU general authorizations, in particular, EU007: Software and technology transfer in the group
Conclusion / outlook / need for adjustment for exporters
Background
The reform of the EU dual-use regulation has been under discussion since summer 2016. Protecting human rights is a major goal of these planned changes. In this context, the scope of control in the area of software and technology for interception and surveillance will be expanded.
In March the European Parliament voted in favour of the EU dual-use regulation:
Regulation of the European Parliament and of the Council setting up a Union regime for the control of exports, transfer, brokering, technical assistance and transit of dual-use items (recast).
Exports of interception and surveillance technology from the EU is expected to be subject to licensing in the future. Authoritarian regimes will no longer be able to use surveillance technology from the EU for the suppression of opposition groups and/or violations of human rights. In addition to the protection of human rights, changes of the EU dual-use regulation also aim to make so-called "emerging technologies" more controllable.
Objective: Harmonizing EU export rules for dual-use goods
Another goal of the EU regulation reform is to harmonize the dual-use export rules in all EU member states. Closer cooperation between the member states should lead to a better and more uniform EU policy on dual-use export controls in the future. Some planned measures to ensure this includes:
New mechanisms to align and coordinate
New forms of licensing to make it easier for companies
Better enforceability of controls through increased cooperation at the EU-level between licensing bodies and customs authorities
More transparency in the annual report of the EU Commission
EU autonomous controls
The new Regulation introduces a basis for EU autonomous controls allowing the EU to make its own decisions regarding human rights controls on cyber-surveillance technologies, and for coordination of national controls on emerging technologies.
The “human security” dimension: an EU mechanism for human rights end-use controls on cyber-surveillance exports (Art. 2.21, Art. 4a)
The mechanism follows a “bottom-up” approach reflecting Member States’ decisions to control non-listed cyber-surveillance items for human rights considerations
The mechanism provides for the introduction of controls through a mandatory and prescriptive consultation procedure, resulting in the publication of an “EU Watch List” of items and destinations subject to control
The mechanism is supported by due diligence requirements for exporters.
EU Guidelines will be developed
History

28/09/2016 Legislative proposal published COM(2016)0616
06/10/2016 Committee referral announced in Parliament, 1st reading/single reading
19/12/2017 Committee report tabled for plenary, 1st reading/single reading A8-0390/2017
16/01/2018 Debate in Parliament
17/01/2018 Results of vote in Parliament
17/01/2018 Decision by Parliament, 1st reading/single reading T8-0006/2018
17/01/2018 Matter referred back to the committee responsible
21/10/2019 Committee referral announced in Parliament, 1st reading/single reading
30/11/2020 Approval in committee of the text agreed at 1st reading interinstitutional negotiations
System Upgrade
The new Regulation represents a comprehensive “system upgrade”: virtually all provisions of the Regulation are amended in order to enhance the efficiency and/or the effectiveness of controls. This includes updated
definitions and control parameters,
Harmonization,
simplification and digitalization of licensing,
enhanced information- sharing, and
cooperation with third countries
The “system upgrade” also introduces new rules on
transparency,
enforcement,
industry outreach and an EU training program.
Key changes
Harmonization of licensing parameters e.g. new definition for “large project authorization”, max. license validity (2y), end-use statements, ICP requirements
New EU General Export Authorizations (EUGEAs) for Intragroup Technology Transfers (EU007) and for Encryption (EU008)
Harmonization of EUGEA basic conditions and requirements (registration, notification and reporting under EUGEAs) and delegation of competence to the Commission to amend destinations and items in Annex I and II in consideration of technology and political developments
Development of electronic licensing and interconnection of IT systems
Here are the changes provides by the European Parliament
Änderungen im Europäischen Parlament (Deutsch)
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