“The fact that eCustoms internally develops, tests and then uses their systems in their own Customs brokerage group was an indicator that the product was reliable and the right fit for our organization.”


Read about it in the Export Compliance Journal

Restricted Party Screening 101 Part 1

Understanding the EU Classification Regime

Jurisprudence of the European Court of Justice in the area of dual-use goods established that the rules restricting the exports of these goods to third countries fall within the scope of the common commercial policy, as set out in Article 133 of the EC Treaty.

Regulation 428/2009

Applicable in all EU countries, the EU export control regime is governed by Regulation 428/2009 which set up a community regime for the control of exports, transfers, brokering and transit of dual-use items. The Regulation entered into force on August 27, 2009. The list of controlled dual-use items is set out in its Annex. Note that items not listed in Annex I may also be subject to export controls under certain conditions.

Regulation 428/2009 introduced a number of significant changes to the scope of dual-use export controls in the European Union. These include the introduction of controls on brokering activities and transit with regard to dual-use items. The Regulation also updated the list of items controlled prior to export and integrated the decisions taken in the Nuclear Suppliers’ Group, the Wassenaar and MTCR regimes in 2008 as well as 2009 decisions of the Australia Group.

Under the EU regime, controlled items may not leave the EU customs territory without an export authorization.

  • Dual-use items Dual-use items are goods, software, technology, documents and diagrams which are normally used for civilian purposes but which may have military applications. They can range from raw materials to components and complete systems, such as aluminium alloys, bearings, or lasers. They can also be items used in the production or development of military goods, such as machine tools, chemical manufacturing equipment and computers. The EU regularly updates the list of controlled items in line with the decisions taken in the export control regimes.
  • Export authorizations (licenses) Under the EU regime, controlled items may not leave the EU customs territory without an export authorization. Additional restrictions are also in place concerning the provision of brokering services with regard to dual-use items and concerning the transit of such items through the EU.

  • Transfers of dual-use goods between EU countries Dual-use items may be traded freely within the EU except for those listed in Annex IV to Regulation 428/2009, which are subject to prior authorization. Suppliers wishing to apply for authorization should contact the competent national authorities for details of what information must be supplied.
  • Specific national rules Individual EU countries may keep in place certain specific national rules. Such rules can apply to additional items to be controlled (Articles 4 & 8). They can require goods to be checked at specific border points (Article 17), and can introduce additional checks inside the EU (Article 11).
  • EU restrictive measures to third countries Further to the adoption by the UN of Resolution 1929 (2010), the Council adopted on 26 July 2010 a common position repealing CP 2007/140/CFSP. The European Commission services are currently working on a proposal for a Council Regulation based on Article 215 in order to implement this new Common Position.
  • Additional items may be subject to export controls National authorities may require export controls on unlisted dual-use items (Articles 4 & 8 of Regulation 428/2009). Exporters should therefore refer to their relevant national rules and check the situation with regard to their specific transactions.

International export control regimes and the EU

The various international export control regimes which are at the origin of the control list implemented in the EU are:

  • Wassenaar Arrangement, export control of arms and dual-use technologies
  • Australia Group (AG), dual use biological and chemical items
  • Missile Technology Control Regime (MTCR)
  • Nuclear Suppliers Group (NSG), civil nuclear items

All EU Member States are members of the Australia Group (AG) and the Nuclear Suppliers Group (NSG). All Member States except Cyprus are members of the Wassenaar Arrangement. Most EU Member States are members of the Missile Technology Control Regime; The European Commission is a member of the Australia Group and is an observer to the NSG.

How we can help

Deal with confidence with the industry leader—discover how Visual Compliance Export Classification solutions, from eCustoms, can help your organization remain compliance with the EU and other international export control regimes around the world.

For more information, call toll-free 1-877-328-7866 (Intl: 716-881-2590) and talk to one of our compliance consultants. They’ll help you analyze your restricted and denied party screening requirements, evaluate your options, and provide focused software demonstrations. Or send an email.

Need more information?