EU: French Technology Export Controls

France requires licenses for exporting quantum technologies and semiconductors

France has introduced new export controls on specific advanced technologies, including quantum computers and semiconductors. This development is part of broader efforts to safeguard national and EU security by regulating the flow of critical technologies. The new Export Controls Order 02-2024 will require businesses to secure licenses for exports of advanced electronic components and quantum technology to non-EU countries. These controls are in line with France’s commitment to the EU Dual-Use Regulation and the EU’s Economic Security Strategy, which recognises key technologies such as quantum and semiconductors as crucial for security.

Whether you’re a trade compliance professional, export consultant, or involved in export control, these changes are essential to understanding how global technology transfer regulations are evolving. This blog will break down the new rules, their implications, and the steps businesses must take to stay compliant.

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Key Questions Covered in This Blog

• What new export controls are being introduced in France for quantum technologies and semiconductors?

• How do these new controls align with the EU’s Economic Security Strategy?

• What items are covered under the Export Controls Order 02-2024?

• What impact will these changes have on businesses and exporters in the EU and beyond?

• What steps should businesses take to comply with these new controls?

"In today’s global trade environment, technology export controls are more important than ever to ensure that sensitive technologies do not fall into the wrong hands." Arne Mielken, Managing Director, Customs Manager Ltd

Abbreviations Used in This Blog

• EU: European Union

• SBDU: Service des biens à double usage (French dual-use authority)

• EAR: Export Administration Regulations (USA)

• GDSII: Graphic Data System II (a format for semiconductor data)

• CMOS: Complementary Metal Oxide Semiconductor

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What New Export Controls Are Being Introduced in France for Quantum Technologies and Semiconductors?

As of 1 March 2024, French authorities will impose export license requirements on certain technologies critical to global security, notably quantum computers and semiconductors. These restrictions focus on technologies with potential military and strategic applications. Specifically, items covered include:

• Advanced semiconductors like CMOS integrated circuits designed to operate at extreme temperatures (as low as -268.65°C).

• Scanning electron microscopes used for imaging semiconductors or integrated circuits.

• Software tailored for the development, testing, or production of advanced semiconductor devices.

• Quantum computers and their electronic assemblies, as well as related components and software.

These regulations are part of broader efforts to secure key technology sectors from misuse in adversarial states, in line with the EU Dual-Use Regulation.

How Do These New Controls Align with the EU’s Economic Security Strategy?

These new export controls in France are closely aligned with the EU Economic Security Strategy, which aims to bolster the EU's resilience against global security risks. The strategy identifies semiconductors and quantum technologies as critical, driving European nations to enact stricter controls on the export of these technologies. The Economic Security Strategy underscores the need for enhanced trade compliance and export control frameworks to protect both economic and national security interests.

These controls are part of the EU’s commitment to reducing its dependence on non-EU countries for critical technologies, ensuring that sensitive items don’t contribute to military or strategic programs in adversarial nations.

What Items Are Covered Under the Export Controls Order 02-2024?

The Export Controls Order 02-2024 imposes new restrictions on the export of the following items:

• Advanced Technologies and Semiconductors:

  • CMOS integrated circuits that operate at temperatures below 4.5 K (-268.65°C).

  • Dry etching equipment, crucial for semiconductor fabrication.

  • Scanning electron microscopes (SEM) designed for imaging semiconductor devices.

  • Specialised software for semiconductor production and layer-by-layer alignment.

• Quantum Computers and Technology:

  • Quantum computers and related components, such as electronic assemblies.

  • Software designed for quantum computing applications or the production of quantum hardware.

By requiring export licenses for these critical technologies, France is seeking to prevent their use in potentially harmful ways.

Effective from 1 March 2024, the export of the following items from France to non-EU countries will require a license from the French dual-use authority, the SBDU (Service des biens à double usage):

Advanced Technologies and Semiconductors:

• 3A901.a.15: Complementary Metal Oxide Semiconductor (CMOS) integrated circuits, not covered by 3A001.a.2 of the EU Dual-Use Regulation, designed for operation at ambient temperatures of 4.5 K (-268.65°C) or lower.

• 3B901.k: Equipment designed for dry etching processes.

• 3B903: Scanning electron microscopes (SEMs) intended for imaging semiconductor devices or integrated circuits.

• 3.D.902: Software specifically developed for the use of equipment described in 3B901.k.

• 3D907: Software created to extract GDSII data (or similar standard configuration data), perform layer-by-layer alignment from SEM images, and produce multi-layer GDSII data or a circuit interconnection list.

• 3E901: Technology, as defined in the General Technology Note in Annex I of the EU Dual-Use Regulation, related to the development or production of the equipment or materials mentioned above.

• 3E905: Technology, as outlined in the General Technology Note in Annex I of the EU Dual-Use Regulation, for the development or production of integrated circuits and devices incorporating coated gate field effect transistor (GAAFET) structures.

Quantum Computers and Quantum Technology:

• 4A906: Quantum computers, electronic assemblies, and components designed for them.

• 4D901.b.3: Software specifically created or adapted for the development or production of items listed in 4A906.b or 4A906.c.

• 4E901.b.3: Technology, in accordance with the General Technology Note in Annex I of the EU Dual-Use Regulation, for the development or production of items listed in 4A906.b or 4A906.c.

Note: The terms in quotation marks are defined as per the EU Dual-Use Regulation.

What Impact Will These Changes Have on Businesses and Exporters in the EU and Beyond?

These export controls are likely to have significant effects on businesses that rely on the export of semiconductors and quantum technologies. Companies in these sectors will need to:

• Secure licenses before shipping controlled goods to non-EU countries.

• Assess the compliance risks involved in exporting these technologies.

• Stay informed about whether other EU member states will adopt similar regulations (as seen with the Netherlands and Spain).

The EU Dual-Use Regulation allows other EU countries to follow France’s example, which could lead to a more widespread export control framework across Europe. This means that compliance officers and export consultants will need to stay vigilant, ensuring their companies meet the growing demand for trade compliance across EU borders.

What Steps Should Businesses Take to Comply with These New Controls?

If you’re involved in the export of semiconductors or quantum technologies, here’s what you need to do:

1. Assess your products: Review your inventory to determine if any of your products fall under the Export Controls Order 02-2024.

2. Secure necessary licenses: Apply for export licenses from the SBDU if you are exporting items covered by the new rules.

3. Stay updated: Continuously monitor developments in EU export controls, as other countries might adopt similar regulations.

4. Consult with an expert: If you’re unsure, seek advice from a trade compliance expert or export control consultant to ensure full compliance.

   
   

Arne’s Takeaway

The introduction of new export controls in France is a clear signal of increasing trade compliance regulations across Europe. Exporters and manufacturers in the semiconductor and quantum technology sectors should immediately assess their operations and seek compliance solutions. Staying ahead of the curve by securing the right licenses and advice will protect your business and ensure you're operating within the legal framework.

Expert Recommendations

• Regularly review the EU Dual-Use Regulation to stay informed of any updates or changes.

• Engage with export control consultants to help navigate the complexities of these new regulations.

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• Implement robust compliance procedures to handle the export of dual-use technologies.

Sources & Further Information

• EU Regulation 2021/821 on Dual-Use Goods

• French Export Control Regulations (Arrêté du 2 février 2024)

• SBDU Export Control Authority

  
  

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Disclaimer

The information in this blog is for educational purposes only. It is not intended as legal advice. Businesses should consult with a legal professional or export control consultant to ensure full compliance with the law.

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