Reflecting on the 18th Export Control Day: Trust and Responsibility

The 18th Export Control Day was held under the motto "Trust and Responsibility". We report on it and summarize the key aspects that are particularly important for companies. Over two days, high-ranking representatives of export control and security authorities in Berlin discussed with renowned experts from science and industry about the opportunities and challenges in export control.

The two-day event was opened with a speech by BAFA President Torsten Safarik. Subsequently, State Secretary Sven Giegold (BMWK) delivered a keynote address emphasizing the importance of cooperation between associations and industry.

Quelle: BAFA

State Secretary Giegold praised the good cooperation

He opened the Export Control Day with warm thanks to the associations for their excellent cooperation. He emphasized the importance of constructive proposals from the industry to simplify procedures and increase the efficiency of approval processes. Giegold encouraged the industry to continue contributing innovative ideas.

"In times of global uncertainty and increasing geopolitical tensions, the exchange between export control authorities and the economy is more important than ever. With the Export Control Day, we offer an indispensable platform for dialogue and cooperation. In view of the global challenges and the growing importance of export control and economic security, I am very pleased with the many participants and the valuable contributions of our high-ranking experts," said Torsten Safarik, President of the Federal Office for Economic Affairs and Export Control.

Quelle: BAFA

Presentation and Discussions

In addition to the core topics of strategic partnerships and international cooperation, this year's event focused on the impact of Russian-Chinese economic relations on export control. Another focus of the EKT was the EU strategy for the economic security of Europe. In specialist forums, representatives and experts discussed in depth the risks arising in the context of increasing geopolitical tensions and economic interconnections, as well as accelerated technological change, for export control.

Here are the key points, summarized:

Turning point in security policy

• Global increase in demand for armaments: Recent geopolitical developments have increased demand for armaments worldwide.

• Asymmetric economic interdependencies as a risk: These could create dangerous one-sided dependencies, necessitating a more pragmatic arms strategy.

• Short response times and resilient production capacities: These are essential in the current security situation.

Source: BAFA

Arms export control

• Security as a valued asset: Security has been re-recognized as a valuable asset.

• Turning point program: The "turning point" required a comprehensive program that required financial resources.

• Declining peace dividend: Increased spending on armaments reduced the peace dividend and increased security costs.

• Common order and value concepts: Security policy partnerships could only be successful on this basis.

Russian-Chinese economic relations

• China makes a significant contribution to the expansion of Russian arms production.

• The effectiveness of EU sanctions is undermined, among other things, by China, the "largest circumvention platform".

• There are particularly risky circumvention goods.: The most coveted commodity tariff numbers for Russia's war economy are listed in the so-called "List of Battlefield Goods" or the "List of Common High Priority Items".

Source: BAFA

National strategies and international impacts using Southeast Asia as an example

• Bipolar world: The world was heading towards a bipolar structure, with "G7+" and the "authoritarian alliance Russia-China".

• Onboarding race: The question arose of how states in between would be positioned and whether there would be a race for their support.

• US strategic partnerships: The USA promoted partnerships, for example to diversify their supply chains for semiconductors.

• ASEAN states: These acted cautiously and did not want to be forced to choose sides.nd wollten sich nicht zwingen lassen, sich für eine Seite zu entscheiden.

European Economic Security Strategy

• EU White Paper on Export Controls: This identified weaknesses in current export controls.

• Heterogeneous approach within the EU: Given changing circumstances, the current heterogeneous approach needed to be reassessed, presenting an opportunity for more uniform export controls.

• Multinational arms programs: Better coordination among EU member states would have been particularly desirable for these programs.

Conflict of scientific freedom

• Knowledge societies thrive: Knowledge is a catalyst for innovation, productivity, prosperity, and progress.

• Danger of restriction through export controls: Science should not be politicized or moralized, and it is important to strike a balance between security measures and scientific freedom.

Sanctions circumventions: Requirements, role understanding, limits

• Industry criticism of the No-Russia clause: This clause was questioned as it lost focus on the essentials.

• Individual parameter catalogs: Companies should develop specific parameter catalogs to better identify circumventions.n.

Quelle: BAFA

Recent developments from BAFA

• 14th sanctions package: Expansions of high-tech goods, circumvention due diligence measures, and alignment of sanctions between Belarus and Russia.

• New overview of country-specific embargo measures: This was published on May 17.

• Expansion of Iran sanctions: There were new measures against Iran.

• General licenses: These should not be used if the onward delivery to non-favored destinations was known.

Conclusion

The Export Control Day has been held since 2007 in close cooperation between the Federal Office for Economic Affairs and Export Control (BAFA) and the Center for Foreign Trade Law e.V. (ZAR). Since its inception, the EKT has dealt with new and recurring national and international questions and problems of foreign trade control. The 18th Export Control Day was a complete success. Customs Manager Ltd was on-site in Berlin and was able to gain valuable insights and current information on export control.