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Be prepared for the reform of the Dual-Use Regulation

The European Commission has prepared a draft law for a new version of the Dual-Use Regulation, which is currently undergoing the EU’s legislative procedure. The proposal contains amendments which are viewed critically by trade associations. Be prepared for upcoming changes already now.

Significant amendments to the Dual Use Regulation

An innovation in the Commission’s proposal is the extension of the concept of dual-use goods, i.e. goods that can be used for both civil and military purposes (dual use), to certain technologies for digital surveillance. Probably the biggest change, however, is the introduction of new catch-all clauses. These extend the authorisation requirement to dual-use items not listed in Annex I and impose more extensive inspection obligations on exporters than hitherto.

Criticism of the draft reform

The proposed new rules are criticised for being too vague and creating considerable legal uncertainty for exporters. Furthermore, it is feared that companies will not be able to implement the more extensive inspection obligations in practice. The new regulation will shift the fight against political risks worldwide to companies in the EU.

Entrepreneurs should monitor developments

The legislative proposal will have to be voted on next by Parliament, the Council and the Commission, but first the Council will have to adopt a common position, which is not expected before early 2018. It is not yet possible to predict when the final version of the new dual-use regulation will be available, but it is likely that the date will be the end of 2018/beginning of 2019. However, significant changes to the design are no longer to be expected. Exporters must therefore be prepared for new inspection obligations.

We will answer your questions about the planned new provisions of the Dual-Use Regulation.

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Lawyer Dr. Tristan Wegner

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