Dual-use: when civil technology becomes security-critical

Dual-use goods are goods, software and technologies that can be used for both civil and military purposes. The EU Dual-Use Regulation (EU) 2021/821 governs the export of these goods from the European Union. For companies that manufacture high-temperature materials, ceramics or special linings, this can be of immediate relevance — even where their own product was originally developed for civil use.

• The dual-use classification relates to the technical properties of the item — not to the manufacturer's intention
• Annex I of the Regulation contains the EU-wide binding list of goods with technical thresholds
• The national export list (AWV Annex AL) may cover additional goods that are not on the EU list
• Knowledge transfer (technical assistance) and software can also be subject to licensing
• The catch-all clause (Art. 4) can also cover unlisted goods where a critical end use is known

For companies in refractory construction and high-temperature technology, categories 1 (materials and chemicals) and 2 (materials processing) of the EU dual-use list are particularly relevant. The technical thresholds determine whether a product is listed and therefore subject to licensing.

• 1C007: ceramic base materials and composites — fibre-reinforced ceramics with a service temperature > 1,600 °C and a density < 2.0 g/cm³
• 1A002: composites and fibre preforms — certain carbon fibre and silicon carbide fibre products
• 1C001: absorber materials — high-temperature ferrite-based absorbers for stealth technology
• 2B001: machine tools — CNC-controlled machining of ceramics and composites to certain accuracies
• 1C107: graphite and ceramic composites — rocket-technology-relevant grades with defined strength values

Where an item is classified as dual-use, the exporter requires an export licence. In Germany, the Federal Office for Economic Affairs and Export Control (BAFA) is the competent licensing authority. The procedure distinguishes between individual licences, global licences and general licences (AGG), which are granted depending on the country of destination and the group of goods.

• Individual licence: for a specific transaction with a particular recipient — processing time approx. 4–8 weeks
• Global licence: for recurring transactions with defined recipients and goods — valid for 2 years
• General licence (AGG): for certain goods/destination combinations — no individual application required, but registration is mandatory
• End-use certificate (EUC): the end user in the country of destination must confirm the final end use and whereabouts
• Negative clearance: confirmation that an item has been checked and is not listed — legally robust documentation

An Internal Compliance Programme (ICP) is the organisational basis for complying with export control regulations. BAFA recommends that all exporting companies set up an ICP — for companies with dual-use-relevant products it is a de facto requirement. A well-structured ICP protects the company against infringements and their consequences: fines of up to 500,000 euros, custodial sentences and the loss of eligibility for licences.

• Management commitment: senior management must commit in writing to complying with export control
• Export control officer: a named individual with authority to issue instructions — not the same person as the export manager
• Classification of goods: systematic screening of all products against the control lists — updated regularly whenever products change
• Customer screening: checking all business partners against sanctions lists (EU, UN, US OFAC)
• Training: regular training for all relevant employees — sales, purchasing, dispatch, engineering
• Documentation and archiving: retain all export-relevant records for at least 5 years