EU – Upgrade of the Dual-Use Statutory Framework

On May 10^th, 2021, the Council of EU adopted a regulation for the upgrade of the EU system on export controls of dual-use items ("NewDual-UseRegulation"). Purpose of the New Dual-Use Regulation is to strengthen controls on a wider range of dual-use goods, assuring a more effective enforcement of such controls throughout EU. Once effective, the New Dual-Use Regulation will replace the Regulation (EC) n. 428/2009.

In the current scenario, Regulation (EC) n. 428/2009 requires a pre-authorization in order for the operators to export, broker, and transfer dual-use items. The New Dual-Use Regulation aims at modernizing the provisions on dual-use items in light of the latest technological innovations, by encompassing also emerging dual-use technologies (such as, cyber-surveillance items), as well as by imposing control on further actives performed by operators on dual-use items (such as, the technical assistance).

The New Dual-Use Regulation will impose greater obligations on the operators. In particular, it will:

1. (a)introduce export controls for cyber-surveillance items, also in order to prevent potential violations of human rights committed through digital surveillance systems; and
   

2. (b)strength the role of companies, by introducing due diligence obligations for producers aimed at identifying dual-use related risks; and
   

3. (c)enlarge the definition of "exporter", by including also natural persons carrying dual-use items in their personal luggage;  and
   

4. (d)improve the coordination between Member States and the EU Commission on export controls.
   

Anyway, the New Dual-Use Regulation highlights the need to reduce administrative burdens on SMEs, by introducing certain general export authorizations, ensuring – however – an appropriate level of control.

Once signed by the EU Parliament and the Council, the New Dual-Use Regulation will be published in the EU Official Journal and enter into force ninety days later.