EU Parliament Votes to Amend Proposal for More Dual-Use Export Authorizations
On April 5, 2011, the European Parliament voted to amend the European Commission's 2008 proposal to expand general export authorizations to additional dual-use items for certain destinations, under the European Union's export control system.
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EC Proposed to Expand the Scope of EU Export Control System in 2008
In December 2008 the European Commission proposed to add six new annexes to the Community General Export Authorizations (CGEA) Regulation1, to widen the scope of the EU's export control system to include more dual-use goods. The EC's proposal included general export authorizations for: (i) low value shipments; (ii) export after repair/replacement; (iii) temporary export for exhibition or fair; (iv) computers and related equipment; (v) telecommunications and information security; and (vi) chemicals.
The EC also proposed to expand the CGEA Regulation to affect not only exports, but also transit and brokering activities.
Parliament Wants to Exclude Computers, Tighten Rules for Low-Value Shipments
Parliament states it is willing to agree to the EC's proposed expansion of the CGEA Regulation, with certain amendments. Parliament voted to exclude computer and related equipment from the list of goods the EC proposed would no longer require authorization. Parliament also voted to tighten rules on "low-value shipments" to ensure that larger orders cannot be broken up into smaller parts in order to circumvent export rules. The proposed revision to the CGEA Regulation with Parliament's amendments now needs to be discussed and agreed upon by the EC and the EU Council.
Will Approve Extension if Notification & Transparency Measures Implemented
Parliament states that it is ready to agree to the EC's proposed changes to the implementing procedures of the CGEA Regulation, but insists on additional provisions to ensure the democratic control of the procedures, such as obliging the EC and Member States to set up a secure system for notifications, including instances where export authorizations were denied, and to inform the Parliament about how it works. Parliament also wants to mandate an annual report by the Dual-Use Coordination Group (comprised of Member State representatives and chaired by the EC) to enhance transparency of the export control regime.
EC Seeks Public Comments from Suppliers Outside of EU on Foreign Availability
The EC is currently holding a technical consultation, and seeks public comments from suppliers outside of the EU by April 26, 2011, on the foreign availability of dual-use items subject to export controls.
The EC is particularly interested in gaining specific information on whether identical or similar items to those controlled by the EU are available from third countries, and from which specific countries. Information received through the consultation will be not be published and will only be used during discussions on control list amendments at the EU level and within the international export control regimes.
Early First-Reading Agreement with EU Council Now Much More Likely
Three-way talks with the EC and the Council will need to begin in order for a first-reading agreement to be reached. The EC's 2008 proposal has been the subject of detailed discussions in the EC and in the Parliament since 2009. Parliament states, however, that its favorable vote on its amendments makes an early first-reading agreement with the Council much more likely.
(In general, it is the EC that proposes new legislation and the Council and Parliament that pass the laws. The procedure that is most commonly used now is “co-decision” in which Parliament and the Council share power equally. Most laws passed in co-decision are, in fact, adopted either at the first or second reading as a result of good cooperation between the institutions.)
1Dual-use items are goods that can be used for both civilian and military purposes. In order to export dual-use items from the EU to any third country, an export authorization is required, either in the form of an EU General Export Authorization, a National General Export Authorization, or Global and Individual authorizations. For most dual-use items, exports to the U.S., Canada, Australia, New Zealand, Switzerland and Norway require a CGEA, which is granted by the EU. For all other items and countries, authorization needs to be requested from national authorities.
(See ITT's Online Archives or 04/06/11 news, 11040641, for BP summary announcing the Parliament's amendments.)
Technical consultation information on foreign availability of dual-use items is available here.
Update on the Commissions dual export proposal is available here.