Article | REF: AG1325 V1

Dual-Use Goods – Regulations and management

Author: Dominique WERBROUCK

Publication date: April 10, 2017

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ABSTRACT

Dual-use goods are products and materials, including software and technology that can have both civilian and military applications, particularly for the manufacture of weapons of mass destruction. Their export is controlled for national and international security reasons. This article presents the general principles and origins of this international control, how it fits into the European and national framework, regulations and procedures, and some rules that facilitate implementation. Besides customs procedures, export control significantly impacts a company's activities and operations. This article shows the need to inform managers and engineers and enforce internal procedures adapted to a company's activity and size.

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AUTHOR

  • Dominique WERBROUCK: Engineer ENSAM (Arts et Métiers) - Former manager of Forest-Liné Albert - Former independent consultant

 INTRODUCTION

Ongoing market demand for ever more innovative products, and the increasingly free circulation of goods and technologies, must not blind us to the world's instability and the continuing existence of major nuclear, chemical and bacteriological risks.

It is against this backdrop that most States have agreed to control the transfer of so-called "dual-use" goods and technologies (mainly high-tech products, but also materials and chemicals), since they are likely to have both military and civilian applications.

This control is exercised through the strict application of common customs regulations, which, for France and its direct partners, are essentially enacted within the framework of the European Union, while being implemented by each of the Union's member states.

Major exporters of these products, particularly in the nuclear, aeronautical and electronics sectors, have set up internal compliance programs to ensure strict compliance with often complex and evolving regulations.

On the other hand, smaller companies, or those whose products are only partially affected, may encounter difficulties in applying these regulations.

This article is primarily intended for :

  • Inform them of the security context and the legal and financial risks, including personal risks;

  • show them the impact of regulations on the company's activities and operations;

  • guide them in implementing internal procedures adapted to their size and activity.

In all cases, implementation requires awareness-raising, training and empowerment of managers and executives, first and foremost salespeople and engineers, as well as active monitoring of living regulations that keep pace with technological progress and innovation, and changes in security risks: drones, terrorism, cyber-intrusion, etc.

Note The reader will find a table summarizing the acronyms and abbreviations used throughout the article.

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KEYWORDS

export   |   regulation   |   Dual-use goods   |   customs regulation


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