Export restrictions: what are they and how do they work in the EU?
What are export restrictions?
Why do governments impose export restrictions?
There are several reasons as to why governments impose these restrictions:
- Security and safety: goods could have certain trade restrictions because of their potential use for military purposes or the risk of endangering national security.
- Sensitive technology controls: technology export restrictions are imposed because these goods could contain sensitive information. Governments want to prevent that this information falls into the wrong hands.
- International treaties: governments need to adhere to international treaties with other regions or countries. Export restrictions could be part of these agreements, for example in treaties concerning weaponry or the environment.
- Economic and trade objectives: it is important to governments to make sure that domestic industries can be protected from foreign competitors. On top of that, it is a way to control trade shortages.
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EU export restrictions
Export control restrictions are not only imposed by national governments. The member states of the European Union (EU) also impose restrictions collectively. These regulations are implemented using various systems. Examples are export control regulations, licensing requirements and trade sanctions. The EU’s export control regime as stated in regulation (EU) 2021/821 includes:
- Common export control rules
- A common EU list of dual-use items
- End-use controls (rules that apply to goods that could potentially be used for the manufacturing of weapons or the violation of human rights)
- Controls on brokering relating dual-use items
- Control measures introduced by exporters, like record-keeping
- Setting up a network of trusted authorities to support the exchange of information and the implementation of controls throughout the EU
It is important to note that export controls are regularly updated and adjusted to new security risks and threats, as well as developments in science and technology. Export Control Group can help you navigate the risks.
Export control restricted countries
The European Union has made an extensive list of countries that have heavier export restrictions when exporting from the EU. Some of these are adopted by the EU and the United Nations (UN). You can find all countries on the EU Sanctions Map, but some of these export restricted countries are:
- China: restrictions because of the events at the Tiananmen Square protests of 1989.
- North Korea: restrictions due to weapons of mass destruction.
- Iran: restrictive measures because of serious human rights violations, weapons of mass destruction and the support of Russia’s war against Ukraine.
- Sudan: restrictions because of the political situation and unstability.
As you can see, there are multiple reasons why EU export restrictions are imposed on these countries, whether they are historical or in light of current events and political situations. You can view the entire list on the website of the EU.
How to comply to export control regulations
As you have read, there are a lot of restrictions you need to take into account when working within the international export of goods, technologies and services. It is crucial that you adhere to all relevant regulations for your industry. If you do not do this, you are at risk of high fines and penalties imposed by either the EU or your own national government. On top of this, there are obviously much more international export control regulations that you need to follow in order to safely export your goods, especially if you want to export these to export control restricted countries. Most organizations are not aware of all these rules and regulations. It is therefore very important to make sure you and your employees are trained in this field. Another important aspect of adhering to export control regulation is to get an understanding of your current compliance processes.
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