New general licenses facilitate exports of arms and dual-use goods.

On January 15, 2025, several national measures to facilitate the export of military goods and dual-use goods and to streamline export control procedures will come into force. These measures were announced by the Federal Office for Economic Affairs and Export Control (BAFA) and the Federal Ministry for Economic Affairs and Climate Action (BMWK) in a joint press release dated December 13, 2024. The changes affect the export of military goods and dual-use goods. To accelerate and optimize procedures, several General Export Licenses (GAs) will be expanded, and two new GAs will be issued.

GAs are a special type of export license. They have the same effect as other export licenses but do not require an application. Instead, GAs are issued ex officio and automatically authorize all exports that meet the requirements of the respective GA. The exporter only needs to register with BAFA as a user of the GA. The possibility of using an export control authorization therefore offers advantages for the exporter with regard to immediate delivery capability and planning security.

Armaments: Extension of Export Control Authorizations Nos. 25 and 33

In the area of armaments, the scope of application of Export Control Authorizations Nos. 25 (special categories) and 33 (export and transfer of other armaments) is extended.

In Export Control Authorization No. 25, the category under point 4.19 is extended to include goods that are exported or transferred within the framework of a training measure of the Federal Government, provided that the export or transfer is based on a contract existing at the time of export or transfer in connection with this training measure and the connection of the export or transfer with the training measure is evident from the contract underlying the delivery by a reference to the specific training measure or, if this is not the case, This has been confirmed by the responsible Federal Ministry. While regular reports on the use of AGG No. 25 are generally waived, the reporting obligation for the (extended) case group 4.19 is maintained, and the reporting period is also changed from a semi-annual to a monthly reporting deadline. In General Provisions No. 33, item 4 expands the scope of permitted goods to include goods listed under export control items 0001 to 0003a of Part I, Section A of the Export Control List. These goods can now also be transported or exported to the destinations listed under item 5.2 (the customs territory of the European Union, Iceland, Liechtenstein, Norway, and Switzerland) without requiring individual authorization. These procedural simplifications in the area of defense goods are also intended to strengthen European cooperation, for example, projects within the framework of the European Defense Fund, as well as international cooperation between companies within corporate groups on research projects. Dual-use goods: Expansion of General Provisions No. 13. In General Provisions No. 13 (export of certain dual-use goods in specific categories), the category under item 4.24 – as well as the category under item 5.2 – is expanded. 4.19 of General Terms and Conditions No. 25 – extended to allow the export of dual-use goods under the General Terms and Conditions if these goods are exported as part of a capacity-building measure undertaken by the Federal Government, provided that the export is based on a contract existing at the time of export in connection with this capacity-building measure and that this connection is evident from the underlying contract by a reference to the specific capacity-building measure, or, if this is not the case, has been confirmed by the responsible Federal Ministry.

Dual-use goods: Announcement of the new General Terms and Conditions No. 43

With General Terms and Conditions Nos. 43 and 44, the Federal Office for Economic Affairs and Export Control (BAFA) has announced two new General Terms and Conditions in the area of dual-use goods. The General Export Control Act (GA) No. 43 authorizes the export of all goods listed in Annex I of the Dual-Use Regulation (EU) 2021/821 (with the exception of the goods listed in Annex II, Section I of the Dual-Use Regulation (EU) 2021/821) in the following cases: The goods were previously exported from the EU with authorization from the Federal Office for Economic Affairs and Export Control (BAFA) or by way of an GA and subsequently re-imported or brought back into the customs territory of the Union for the purpose of maintenance or repair, and are now to be re-exported without any change to their original performance characteristics. The goods are to be re-exported in exchange for goods of the same type and quantity that were previously exported from the EU with authorization from BAFA or by way of an GA and subsequently re-imported or brought back into the customs territory of the Union for the purpose of exchange, without any change to the original performance characteristics of the goods to be exchanged.

Since maintaining the performance characteristics of the goods is a prerequisite for the applicability of General Equal Treatment Act (AGG) No. 43, re-export after technical improvements (upgrades) is not possible under AGG No. 43.

A further prerequisite for the applicability of AGG No. 43 is always that the (re-)export is to the same recipient and end-user as the original export.

Furthermore, AGG No. 43 is only applicable to goods whose original export was authorized no more than five years ago; If an export control authorization (AGG) was used for the original export, the use of AGG No. 43 is only possible within five years of the export of the originally authorized goods. Approved destinations under AGG No. 43 are all countries except those under arms embargoes, Egypt, Afghanistan, Armenia, Azerbaijan, Yemen, Pakistan, Syria, Tajikistan, Turkmenistan, and Uzbekistan. In terms of content, AGG No. 43 is thus based on AGG No. EU003, which must be used as a priority. However, General Equal Treatment Act (GEA) No. 43 has a broader scope than GEA No. EU003, both with regard to the range of goods and the permitted destinations. Dual-use goods: Announcement of the new GEA No. 44. The newly announced GEA No. 44 is intended to simplify the intra-group export of dual-use software and technology for data storage purposes. It authorizes the transfer of goods of categories D (software) and E (technology) of Annex I to the Dual-Use Regulation (EU) 2021/821, with the exception of the goods of these categories listed in Annex II, Section I of the Dual-Use Regulation (EU) 2021/821, and with the exception of software and technology related to items 4A005, 4D004, 4E001c, 5A001f and 5A001j of Annex I to the Dual-Use Regulation (EU) 2021/821, provided that: the software or technology is transferred to a server by means of electronic media within the meaning of Article 2(2)(d), first sentence, of the Dual-Use Regulation (EU) 2021/821 solely for the purpose of data storage; the server is not located in a country subject to an arms embargo, Egypt, Afghanistan, Armenia, Azerbaijan, China (including the Hong Kong Special Administrative Region), Yemen, Pakistan, Syria, Tajikistan, Turkmenistan or Uzbekistan; the server meets at least the minimum information security requirements for cloud services set out in the C5 criteria catalog (Cloud Computing Compliance Criteria Catalog) of the German Federal Office for Information Security (BSI);

· the provision of access to the software or technology located on the server is limited to natural persons within the customs territory of the EU; and

· these natural persons are employed by the exporter or by companies affiliated with the exporter under group law, or by companies acting on behalf of the exporter or a company affiliated with the exporter under group law, provided that these companies are established in the customs territory of the EU.

Under the conditions specified in point 3.3, the use of AGG No. 44 is excluded (in particular, knowledge of use for nuclear or military purposes, classification of the goods as "VS - FOR OFFICIAL USE ONLY" or higher; or knowledge of additional storage on a backup server that does not meet the requirements).

Practical Information

The extended Export Authorization Regulations Nos. 25, 33, and 13 will enter into force on January 15, 2025, and are initially valid until March 31, 2025. The new Export Authorization Regulations Nos. 43 and 44 will also enter into force on January 15, 2025, but will be valid until March 31, 2026.

Exporters should review existing export license applications to determine whether the use of an existing Export Authorization Regulation is possible. If so, existing export license applications can be withdrawn, and the goods can be exported or transferred immediately.

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