On 10 October 2018, the Commission announced its draft annual Delegated Regulation that updates the EU dual-use export control list in Annex I to Regulation (EC) No 428/2009 and brings it in line with the decisions taken within the framework of the international non-proliferation regimes and export control arrangements in 2017.
The majority of the changes result from amendments that were agreed at the 2017 Plenary of the Wassenaar Arrangement, including:
- Change of controls on measuring and inspection equipment (2B006) and now including angular measuring equipment;
- Deletion of control on robots with 3D image processing (2B007a);
- Deletion of controls on technology for numerical control units (2E003b) and machine tool instruction generators (2E003d);
- New control entry for electro-optic modulators (3A001i);
- New entry for semiconductor manufacturing mask substrate blanks (3B001j);
- New decontrols for ‘upgrade’ intrusion software (4D004);
- New decontrol for technology for ‘vulnerability disclosure’ and ‘cyber incident response’ (4E001);
- New control for Focal Plane Array (FPA) readout integrated circuits (ROIC) (6A002f);
- Deletion of controls on high speed cinema film recording and mechanical cameras (6A003a);
- New parameter for ‘corrected specific fuel consumption’ added to the control on marine gas turbine control (9A002);
- Increase of controls for ground based spacecraft control equipment (9A004);
- Change of software controls for testing aero gas turbines engines (9D004b).
The Commission outlines in its note the changes approved in 2017 by the different international export control regimes:
- the Missile Technology Control Regime decided to add new parameters for controls on batch and continuous mixers (1B117), to limit the scope of control for flow-forming machines (2B109) to missile production, to amend the control on satellite navigation systems (7A105) to include regional as well as global systems and to add dry weight and rotor diameter parameters for the control on turbojet/fan engines (9A101);
- the Nuclear Suppliers Group agreed to add a new control for lithium target assemblies (1B235) to reflect the dual-use NSG entry 2.A.4, and to delete controls for water hydrogen sulphide exchange tray columns (1B229); and
- finally, the Australia Group agreed to add a CWC schedule organic molecule to 1C350, re-write control on genetic elements and make certain additions to the controls on both chemical and biological manufacturing equipment.
The Commission informs that the Delegated Regulation will enter into force upon its publication, which should occur approximately 2 months after its adoption, provided that the Council and the European Parliament raise no objections within this period. The planned publication date, in case of successful completion of the non-objection period, is foreseen for 14 December 2018.
The 2018 draft Commission Delegated Regulation including its Explanatory Memorandum can be found here. Moreover, the Commission also published a Comprehensive Change Note Summary 2018 which provides a detailed overview of all technical changes compared to the 2017 EU Dual-Use Control List across all 10 categories, and which can be found here.
As a reminder, the EU is currently reforming its dual use export control regulatory framework, and has launched a public consultation in September 2018. This consultation was accompanied by a guidance of internal compliance programs, which will become mandatory for businesses engaged in dual use goods trade.
DS Customs & Trade team is at your disposal to provide you with additional information.