China has issued new regulations governing export controls on dual-use items. The Regulations come into force on 1 December 2024.
China has issued new regulations governing export controls on dual-use items. The regulations will take effect on Dec. 1, 2024. The regulations upholding a holistic approach to national security, the regulations, consisting of six chapters and 50 articles, were formulated to maintain international peace, coordinate high-quality development with high-level security, and improve export control capabilities of dual-use items. Dual-use items mean goods, technologies and services that may be used either for civil purposes or for military purposes or to contribute to an increase in military potential, especially to design, develop, produce or use weapons of mass destruction and their means of delivery.
According to trade facilitation measures included in the regulations, the registration system of exporters for dual-use items will be abolished, and the transparency and standardization of export control policies for dual-use items will be enhanced.
The Regulations provide that:
- exporters will need a licence for dual-use items listed in the export control list;
- the commercial administration department of China’s State Council will establish a risk management system to evaluate and verify end-use(r)s of dual-use items;
- end-users cannot change the use of dual-use items or transfer them to a 3rd party without the commerce department’s consent;
- Chinese individuals and entities must report any requests from foreign governments for visits or inspections relating to export controls; and
- foreign businesses may be required to comply with the regulations if involved in transferring or providing Chinese dual-use items.
For more details, please refer the Order of the State Council of the People's Republic of China
EU: The Export Control Joint Unit (ECJU) has updated two open general export licences (OGELs)
OGEL in Support of Joint Strike Fighter (F-35 Lightning II):
- Removes Turkey from the list of Partner Nations
- Adds Belgium, Czech Republic, Finland, Germany, Singapore, and Switzerland as Export Customers
- Adds Luxembourg, New Zealand, Spain, and Sweden as Countries which may develop, produce, trial, or test or use items
- Provides revised contact details for the Ministry of Defence (MOD) Defence Equipment and Support Principal Security Adviser (DES PSyA)
OGEL Exports or Transfers in support of UK Government Defence Contracts:
- Provides amended wording on the interpretation of “eligible” in section 5(7) of the OGEL
- Provides revised contact details for the ECJU MOD, and MOD Defence Equipment and Support Principal Security Adviser (DES PSyA).
EU : Greenhouse gases
Regulation (EU) 2024/573 of the European Parliament and of the Council of 7 February 2024 on fluorinated greenhouse gases. The TARIC data for the provisions on export of fluorinated greenhouse gases has been created. An explanation document will be published promptly. Entry into force 15.01.2025
EU seeks feedback on prohibition on re-exportation to Russia
The EU has requested feedback on Article 12g of Council Regulation (EU) no 833/2024. The article requires Union operators to contractually prohibit re-exportation to Russia and re-exportation for use in Russia of sensitive goods and technology.
EU updates list of items subject to Dual-Use Export Controls
On 5 September 2024, the European Commission adopted a Delegated Regulation updating the EU dual-use export control list in Annex I of Regulation (EU) 2021/821. In November Regulation has been officially published, shall enter into force on the day following that of its publication, meaning November 8th. The changes affect a number of product categories, including the following:
- Category 0 (Nuclear Materials) including for changes to specifications for heavy water production plants and related equipment;
- Category 1 (Special Materials) including updates to composite structures specifications and platinized catalysts.
- Category 2 (Materials Processing) including clarifications on vibration test systems and toxic gas monitors.
- Category 3 (Electronics) including modifications to frequency thresholds for various electronic components.
- Category 5 (Telecommunications and Information Security) including certain updates to cryptography-related definitions and specifications.
- Category 6 (Sensors and Lasers) including numerous technical specification updates, particularly in acoustic systems and optical equipment.
- Category 7 (Navigation and Avionics) including certain minor updates and clarifications.
- Category 8 (Marine): including certain changes to specifications for underwater/submersible vehicles and propulsion systems.
- Category 9 (Aerospace and Propulsion) including updates to specifications for rocket propulsion systems and related components.
Link – eur-lex Regulation
Link – summary of amendments to Regulation
EU: Taric data of export controls on fluorinated greenhouse gases
Explanatory document "Regulation 2024 573 - Fgases - Export - Explanatory document.docx" on the TARIC data created for the export provisions of Regulation (EU) 2024/573 has been published. Entry into force: 15.01.2025
Link
EU: DUAL USE Items - new TARIC footnote
The amending Regulation (EU) 2021/821 of the European Parliament and of the Council as regards the list of dual-use items has been published in the OJ L of 07/11/2024. Accordingly, all the concerning control measures “Export authorization (Dual use)” have been updated in the TARIC database and aligned with the new Annex I. Further, the following new TARIC footnote has been created:
- DU049 “Goods 1C350 90 from the dual use list”
DU049 has been linked to the CN code 2921 19 99.
The entry into force of this update is 08.11.2024.
Netherlands expand export controls on emerging technologies
On 18 October 2024, the Dutch government announced supplemental controls for exports of certain emerging technology items from the Netherlands. These controls will enter into force on 1 December 2024 and will be implemented through the Dutch Regulations Supplemental Controls to the Dual-Use Regulation. The Dutch Regulations control the export of “Unilaterally Controlled Items”. These include certain goods, technology and software that are related to specific high-quality and sensitive technologies deriving from the semiconductor, quantum and additive manufacturing sectors. Although the relevant items are indicated by ECCNs, these ECCNs are specific for the Dutch Regulations as these are not currently present in Annex I to the EU Dual-Use Regulation 2021/821. The licensing requirements under the Dutch Regulations are “country neutral”. This means that a prior license is required for exports of Unilaterally Controlled Items from the Netherlands to all destinations outside the European Union. Intra-Union transfers from the Netherlands to other EU Member States are not subject to this requirement.
The Dutch government has introduced the new National General Export Authorization NL900. NGEA NL900 authorizes most exports of Unilaterally Controlled Items to destinations in Australia, Canada, Iceland, Japan, Liechtenstein, New Zealand, Norway, Switzerland, the United Kingdom and the United States of America. These countries are similarly covered by Union General Export Authorization EU001 under the EU Dual-Use Regulation. Use of NGEA NL900 requires a prior one-off registration with Dutch Customs at least two weeks before the first export under this authorization takes place. Link; stcrt-2024-33841.pdf
UK Government confirms CBAM rollout In 2027
The UK Government has responded to the consultation regarding the introduction of a UK Carbon Border Adjustment Mechanism (UK CBAM). The UK CBAM regime will be introduced from 1 January 2027. The threshold triggering the UK CBAM was sharply increased to £50,000 of imported products each year.
The UK CBAM will apply levies on aluminium, cement, fertilizers, iron, steel and hydrogen. Ceramics and glass will not be included initially with the two industries and government agreeing more time is needed to develop the mechanism. The mechanism is designed to make it harder for countries that use fossil fuels in their energy mix to export to the UK, essentially putting pressure on them to decarbonize production. Should products from the mentioned industries be produced (verifiably) with renewable energy then the charge will not apply.