EUs first report on dual-use goods export patterns by EU Member States.

The regulation and control of DUAL-USE ITEMS ARE GOODS are crucial to prevent their misuse and to ensure they do not contribute to international security risks.

The European Commission recently released its first report on DUAL-USE ITEMS ARE GOODS [definition below] export controls, providing a comprehensive overview of the export patterns of dual-use items by EU Member States.

Here are some key highlights from the report:

1. Increased Scrutiny: The report indicates that there has been a rise in both authorisations and denials for the export of sensitive goods compared to previous years. In 2022, Member States authorised dual-use exports worth €57.3 billion, which represents 2% of extra-EU exports of goods. There were 831 denials of exports due to security risks, amounting to €0.98 billion.
2. Comparative Data: The report provides comparative figures for 2021, showing that dual-use exports were valued at €38.5 billion, representing 1.8% of total extra-EU exports. There were 568 denials in 2021, representing about 0.01% of total extra-EU exports.
3. Licensing Data: For the first time, the report includes extensive information on licensing data, which helps in understanding how export controls are applied and the risks associated with exporting sensitive items in the current geopolitical context.
4. Regulatory Framework: The EU’s export control regime is governed by Regulation (EU) 2021/821, which includes common export control rules, a common EU list of dual-use items, and provisions for end-use controls on non-listed items. The regulation also sets up a network of competent authorities to ensure consistent implementation and enforcement of controls throughout the EU.

This report is a significant step towards enhancing transparency and understanding of the EU’s approach to controlling the export of dual-use items, ensuring that such exports do not contribute to international security risks.

DUAL-USE ITEMS ARE GOODS

Dual-use items are goods, software, and technology that can be used for both civilian and military applications. This means they have legitimate commercial uses but can also be utilized for military purposes or in the development of weapons of mass destruction.

Examples of dual-use items include:

1. Chemicals: Certain chemicals used in manufacturing can also be used to produce chemical weapons.
2. Software: Encryption software that protects data can also be used to secure military communications.
3. Machinery: High-precision tools and machinery used in manufacturing can be repurposed for producing military equipment.
4. Technology: Advanced technologies like drones or satellite systems can be used for both commercial and military surveillance.

Source: 

(1) Report highlights EU’s approach to export controls of dual-use items. https://policy.trade.ec.europa.eu/news/report-highlights-eus-approach-export-controls-dual-use-items-2025-01-31_en.

(2) Exporting dual-use items - European Commission - Trade. https://policy.trade.ec.europa.eu/help-exporters-and-importers/exporting-dual-use-items_en.