CECIMO position on the review dual-use export controls

14 June 2018

The European institutions are reviewing the Regulation setting up a Union regime for the control exports, transfer, brokering, technical assistance and transit of dual-use items. CECIMO agrees with the need for an EU legislative intervention to modernise the current export control regime and harmonise its implementation across member states. However, CECIMO believes this proposal risks putting the legitimate European machine tool builders at a significant competitive disadvantage on a global scale, by increasing the administrative burden for the European manufacturers.

The introduction of a catch-all provision establishes an obligation of authorisation going beyond the scope of the control list. This entails delivery delays and money losses, plus it hinders the competitiveness of European machine tool builders. Leaving the judgements on illicit use to businesses creates a margin for interpretation, which can negatively affect strategic decision making, depending on the risk aversion of the companies, and entails possible business losses.

Among others, CECIMO therefore recommends:

  • Replacing the catch-all provision by lists of sanctioned countries and products.
  • The term “due diligence” is too vague and should be replaced with a list of unambiguous criteria against which the trade partner will be checked, to ensure legal certainty and leave less space for subjective interpretation.
  • The revised regulation should assure a greater degree of harmonization and consistency in the implementation of the export controls across the member states.