Dual Use Expert Control Regulations: Key Implications
Key Summary
• EU is updating export controls to include new categories like cyber-surveillance and human rights risk items
• Exporters must now notify authorities if they suspect non listed items could violate human rights
• The European Commission will have authority to update the dual use list, requiring ongoing monitoring
• No direct mention of printed circuit boards, but regulations could still impact IPC members
• Updated rules are advancing through trilogue negotiations between EU institutions
• IPC has published a briefing note to guide members on compliance and next steps
The European Union is currently working to update its legislation on export controls for dual-use items, meaning items that can be used for both civilian and military applications and/or can contribute to the proliferation of Weapons of Mass Destruction (WMD). Most importantly, the proposal for an updated Regulation introduces the following changes: • Expansion of list of dual-use items to include cyber-surveillance technologies and those that can be used for human rights violations. • Added obligation for exporters, when conducting their due diligence, to notify Member State authorities, if they suspect exported items not listed in the Regulation are used to violate human rights. • The European Commission is empowered to amend the list of dual-use items covered by the Regulation, so continuous monitoring of this process will be needed to ensure regulatory compliance. The new Regulation does not include any specific mentions of printed circuit boards, but is nevertheless a piece of legislation that IPC members must be aware of, as it could create possible regulatory compliance issues. With that in mind, IPC has drafted a briefing note detailing the new provisions introduced by the Regulation, as well as the state of play and next steps in the legislative process. The updated proposal is currently being discussed by representatives of the European Commission, Council and Parliament in informal “trilogues”. It is possible that the updated Regulation will have gone through the legislative process in the course of 2019. The more detailed briefing note on the new regulation on export controls on dual-use items can be found here: http://www.ipc.org/3.0_Industry/3.3_Gov_Relations/2018/Dual-Use-Export-Controls-Briefing.pdf. IPC members are invited to share their feedback on this document and any other thoughts and concerns they might have on export controls for dual-use items with Chris Mitchell, IPC’s vice president of global government relations, at ChrisMitchell@ipc.org.
Dual use items are products, software, and technologies that can be used for both civilian and military purposes or that could contribute to weapons proliferation. The updated rules expand these categories to include cyber-surveillance technologies.
Exporters will have a new obligation to notify authorities if they suspect an item not listed in the regulation could be used to violate human rights. This adds an additional layer of due diligence for compliance.
The regulation does not specifically reference printed circuit boards, but IPC members should be aware that some electronics, depending on their application, could still fall under expanded controls.
The European Commission will have the power to amend the list of controlled items, meaning companies must track updates to ensure ongoing compliance with export control obligations.
