In brief
Export control comprises government rules and in-house checks used to screen exports for licensing requirements, embargoes and sanctions.
Contents
What is Export control?
The aim of export control is to prevent goods, software or technology from falling into the wrong hands, for example for military purposes or weapons of mass destruction. In the EU, the legal bases are above all the Dual-Use Regulation and embargo and sanctions regulations, supplemented in Germany by the Foreign Trade and Payments Act and Ordinance (AWG/AWV) with the national export list. The competent licensing authority is the Federal Office for Economic Affairs and Export Control (BAFA).
Essentially, four questions are checked: Is the item covered by a control list? Are there embargoes or restrictions for the country of destination? Are the consignee or other parties on sanctions lists? And what are the goods used for, i.e. what is the end use? Even unlisted goods can become subject to licensing if a critical end use is known.
Companies organise these checks in an internal compliance programme with an export control officer from senior management, clear responsibilities, classification of goods, automated list screening and documentation. In an individual case, the information provided by BAFA is binding; this entry does not constitute legal advice.
In practice: maintenance and procurement
Spare parts can also be subject to export control, for example parts for listed machines or controllers. For exports, the control list number should be obtained from the manufacturer or supplier and the check documented before the order is accepted.
Synonyms and abbreviations: export controls · export compliance · trade compliance · internal compliance programme (ICP) · ICP
Frequently asked questions
Which authority is responsible for export control in Germany?
The Federal Office for Economic Affairs and Export Control (BAFA) is responsible for export licences. It decides on licences, provides rulings on the control list and makes information on embargoes available. The customs administration monitors compliance at export and checks whether the required licences are in place.
What does end use mean in export control?
End use describes who ultimately receives the goods and what they are used for. For exports subject to licensing, authorities often require an end-use statement from the consignee. It is intended to ensure that the goods are not passed on or used for prohibited purposes.
What is sanctions list screening?
In sanctions list screening, business partners are checked against the lists of sanctioned persons, companies and organisations. As a rule, no business may be done with listed persons and organisations and no funds may be made available to them. Many companies therefore screen customers, suppliers and consignees regularly with the help of software.
Can unlisted goods also be subject to licensing?
Yes. So-called catch-all clauses can trigger a licensing requirement if the exporter knows, or has been informed by the authority, that the goods are intended for a critical end use. Looking at the control list alone is therefore not enough; the consignee and intended use must also be checked.