European Union Dual-Use Export Control System - Principles

European Union Dual-Use Export Control System

Individual decisions about whether or not to approve an application to export controlled items are taken at the national level by authorities which are responsible to their national governments. The European Union dual-use export control system is used by the members of the EU to help implement their national obligations with regard to non-proliferation in the context of the EU single market.

The main principle that underpins the dual-use export system is that civilian trade shall not undermine the essential security interests of the member states or their commitment to non-proliferation even within a single market that aims at free movement of goods and services.

Accordingly, products subject to control will not be exported without first considering the implications of the export for:

i) commitments under international agreements on nonproliferation;
ii) obligations under sanctions imposed by the United Nations Security Council;
iii) national foreign and security policy;
iv) the intended end-use and risk of diversion.

The European Union (EU) dual-use export control system is intended to help complete the internal market for goods and services established under the 1987 Single European Act while safeguarding the nonproliferation principle noted above.

While items identified in an annex to Article 296 (EC) are explicitly excluded from the trade competence of the European Union, all other manufactured goods are subject to community law. This includes civilian goods which have potential military applications.

At the same time, EU member states recognize that they have a strong national security interest as well as national and international commitments to prevent the proliferation of certain types of weapons. As a result, it was necessary to develop a system which allowed this nonproliferation commitment to be maintained in the framework of community law.

The regulations that establish the dual-use export control system were developed between 1991 and 1994. In March 1995 the system entered into force. The original system was based on two documents:

• EU Council Regulation 3381/94 of 19 December 1994 setting up a Community Regime for the control of exports of dual-use goods.
• EU Council Decision 94/942/CFSP of 19 December 1994 on the joint action adopted by the Council on the basis of Article J.3 of the Treaty on European Union concerning the control of exports of dual-use goods.

On 22 June 2000 the European Union member states introduced a new Council Regulation (EC) No 1334/2000 setting up a Community regime for the control of exports of dual-use items and technology.

Subsequent amendments have updated the control list to which Regulation (EC) No 1334/2000 applies.

On the same day the member states of the European Union agreed a Joint Action to introduce export controls covering technical assistance (including oral transfers of technology) required to be controlled by the international export control regimes, bodies and treaties for weapons of mass destruction and missiles and for conventional military goods exported to countries subject to arms embargoes of the above types.

Reform of the dual-use export control system

In December 2006 the European Commission put forward proposals to review the current export control system and suggested ways to reform it.

The proposals were contained in a Communication to the Council and took into account the conclusions of the 2004 Peer Review of Member States implementation of Regulation No 1334/2000.

Additional information can be found on the website of European Commission DG Trade.

The regulation is directly applicable in all member states.

The decisions about whether to approve or deny a given transfer are taken by the member states through their national authorities, which are required to provide enforcement and penalty power. Member states exchange information about license denials to ensure that each licensing authority has the greatest awareness of potential proliferation risks.

Member states have agreed to respect export licenses issued by EU partners at the point where goods leave EU territory. In cases where aspects of a specific transfer are unclear or in dispute the responsible national authorities in the country from which the goods are to be exported can contact the responsible national authorities in the country where the license was issued. Alternatively, the EU Commission can act as a clearing house to assist in resolving the case.

States are obliged to keep information and records about dual-use exports according to agreed criteria to make the process of dispute resolution easier and to assist in making exchanges of information more useful in analysis.

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Any reproduction of text and data is authorized only by permission, SIPRI March 2004.