April 16th, by Dimana Todorova
The terms and conditions of license applications for dual-use items have been substantially modified by a Decree issued on April 6, 2018.
As a reminder, the export of dual-use items (“DUI”) listed in Annex I of the EU Regulation n° 428/2009 is subject to authorization, which is valid throughout the entire European Union.
Depending on the type of operation carried out, the nature of the goods and / or their destination, the exporter may use several types of authorizations. In France, these different types of licenses and the procedures for obtaining them are organized by the Decree of 13 December 2001 “on the control of exports to third countries and the transfer to the Member States of the European Community of dual-use goods and technologies “.
By a Decree dated 27 February 2018, published in the Official Journal on 6 April 2018, “concerning the export control of dual-use goods, technologies and services and the implementation of the restrictive measures taken against certain countries of final destination “, the French Ministry of the Economy and Finance amended the provisions of the Decree of 13 December 2001.
One of the main changes made by the Decree is the formalization of the so-called “DHL” application (in French “demande hors licence” or “out-of-license application”) introduced by the practice of the French supervisory authority, the Dual-Use Goods Department (in French “Service des biens à double usage, SBDU”), which allows economic operators not only to raise doubts about the classification of a good under Regulation n° 428/2009 but to inform the competent authority of an export project of a not listed item when the exporter considers that the transaction is likely to give rise to the implementation of the “catch all” clause.
The filing of the application and the documents is dematerialized via Egide platform (https://egide.finances.gouv.fr).
The new features for individual licenses are:
- the updating of the list of documents and elements to provide for an individual license application. While some parts remain mandatory (the export license form and a proforma invoice) or mandatory for new applicants (an extract of Kbis or EORI number), other documents remain at the discretion of the administration and are required only at its request (end-use certificate, technical documentation or any additional document);
- the introduction of a special end-use certificate for Iran;
- the introduction of the obligation to produce a copy of the specific export authorization for export authorization provided for by Decree n° 2007-663 or, failing that, a copy of the receipt of the application for authorization specific export in-process for requests for crypto DUIs;
- the deletion of the nuclear material record and the non-re-export certificate;
- the dematerialization of the acknowledgment of receipt of the request;
- the validity of the license at the date of issue (and no longer the day after it is issued); and
- the formalization of the possibility of extension of a license (at most 6 months beyond the initial duration).
Global Licenses (LIGLO)
As for individual licenses, the possibility of extension of a license (at most 6 months beyond the initial duration) and the formalization of the dematerialization of the acknowledgment of receipt of the license application are the main modifications concerning LIGLO.Moreover, the document describing all the procedures applied within his company with a view to ensuring prior checking for the respect of the principles governing the export control of dual-use goods must be filed at the time of the application and not as before, prior to such a request.
Finally, with regard to national general licenses, intra-EU transfers and general Union authorizations, the main novelty is the introduction of the EORI number.
DS Customs & Trade team is at your disposal to provide you with additional information.