Background
Annex I of the EU Dual-Use Regulation lists dual-use items that require export authorization pursuant to Article 3 paragraph 1 EU Dual-Use Regulation. Annex I is periodically amended, usually at least once a year, based on decisions and commitments taken within the framework of the international non-proliferation regimes and export control arrangements, in order to ensure full compliance with the latter. These include the Wassenaar Arrangement (WA), the Missile Technology Control Regime (MTCR), the Australia Group (AG) and the Nuclear Suppliers Group (NSG). The EU Commission updates Annex I by Delegated Regulation, as set out in Articles 17 and 18 of the EU Dual-Use Regulation.
The latest updates to Annex I will enter into force after a two-month scrutiny period for the Council and the European Parliament, during which time these institutions may still raise objections to the Delegated Regulation.
Expected changes
The Delegated Regulation contains updates to certain technical definitions and descriptions in Annex I, as well as the addition and the removal of dual-use items.
Notably, terminological changes affect the field of spacecraft. Among other changes, the definition of “spacecraft” has been revised and broadened, and new global definitions have been added for “satellite”, “space probe” and “space vehicle”.
Additions to Annex I include the following:
- Quantum technology (e.g., quantum computers, electronic components designed to work at cryogenic temperatures, parametric signal amplifiers, cryogenic cooling systems and cryogenic wafer probers)
- Semiconductor manufacturing and testing equipment and materials (e.g., Atomic Layer Deposition equipment, equipment and materials for epitaxial deposition, lithography equipment, Extreme Ultra-Violet pellicles, masks and reticles, Scanning Electron Microscope equipment and etching equipment)
- Advanced computing integrated circuits and electronic assembles (e.g., Field Programmable Logic Devices and Systems)
- Coatings for high temperature applications
- Additive manufacturing machines and related materials (e.g., inoculants for powders)
- Peptide synthesisers
Some of these changes affect Annex IV (intra-Union transfers) of the EU Dual-Use Regulation, as Article 17 paragraph 1 lit. b) of the EU Dual-Use Regulation states that “where the amendment of Annex I concerns dual-use items which are also listed in Annex II or IV, those Annexes shall be amended accordingly”. However, the effect is limited to a small number of changes.
We will continue to monitor developments and keep you updated on all matters export control.
