poniedziałek, 18 lutego 2008

Dual-use items

Mood: Too much work
Music: Cool sounds

Introduction - Background of the story
Taking a part in one of the tenders, I was surprised by the issue called "dual-use items". The thing was put on the table by Jakub Manikowski from IBM, who pointed out that exporting some items from EU country, outside EU borders bring you within the range of these regulations. "Dual-use items" are in general, items which may be used for military or civil purposes and surprsingly it applies also to some advanced technology including even some better IBM servers. Somehow in rings the bells in the head, but... Step-by-step... First the homework ;)

EU regulations
The whole thing is defined by fat, 215 pages long EU regulations No. 1334/2000 (polish short version) and there is couple of surprises like:

  • passing the technology via "electronic media" (8)
  • software is next to nuclear weapon !!! (Chapter I, Article 2a)
  • "oral transmisttion of the technology by phone"! (Chapter I, Article 2b iii)
  • "This Regulation does not apply to the supply of services
    or the transmission of technology if that supply or transmission
    involves cross-border movement of natural persons." (Chapter II, Article 3.3)
The key thing is that if your product is on the list you need to manage "individual permission on the export", which is defined in Article 7. The permission must created according to the template in Appendix IIIa (p202) and "in accordance with the indications set out in Annex IIIb (p205) " (Article 10).
The items are listed in Commerce Control List (CCL) categorized by ECCN numbers Export Control Classification Number, which are common for EU and US. The first number of the ECCN identifies the category to which it belongs, for example, 1 = Nuclear Materials Facilities and Equipment, 4 = Computers, 9 = Propulsion Systems, Space Vehicles and Related Equipment. Next the letter specified the product:
A. Systems, Equipment and Components
B. Test, Inspection and Production Equipment
C. Material
D. Software
E. Technology
Among things on the list, the most interesting are (for me obviously ;) ):
  • 0D001 Software specially designed or modified for "development", "production" or "use" of goods specified in this Category (p. 42) - Category 0 "Nuclear materials, facilities, and equipment"
  • 0E001 similar for "technology", what may means whatever including hardware
  • 1D Software for Category 1 "Materials, Chemicals, Microoranisma and Toxins" including software for radars (1D103) (p. 73)
  • 1E102 Technology according to the General Technology Note for the "development" of software specified in ... (p.74) and similar in 1E202, 1E203
  • 2D Software for Category 2 "Materials processing" (p.94) - among others "capable to coordinate simulatenously more than four axes for counturing control"
  • 2E Technology - among others "Technology for development of interactive graphics as an integrated part in numeric control units for preparation or modification of part programmes" and "Technology for development of integration software for incorporation of expert systems of advanced decision support of shop floor operations into numerical controls units"
  • 3D and 3E, Software and Technology for Category 3 "Electronics" (p. 124) - among others some kinds of CAD software
  • Category 4 "Computers" (p. 126)! - among others "equipment designed for image enhacment and signal processing" (4A003), designed and modified for fault tolerance (including some mirroring mechanisms!), operating systems designed for "multi-data-stream processing" (4D003a)
  • Category 5 "Telecomunications and information security" (p. 136) - "fiber cables and accessories for underwater use" (5A001c2), "Equipment employing digital techniques designed to operate exceeding 1,5 GBit/s" (5B001b1), "Equipment employin)g optical switching" (5B001b3), symmetric alogirthms can not exceed 64 bits! (Note3 p.142) and assymetric exceeds 512 bits (5A002a1b), smart cards regulations incl. money transactions (p. 144)
  • 6DE for Category 6 "Sensors and Lasers" (p. 169) including software for Air Traffic Control (over 150 simolatenous system tracks)
  • 7DE for Category 7 "Navigation and Avionics" (p. 176) inclduing the software which reduces GPS navigational errors, some kinds of CAD software
  • 8DE for Category 8 "Marine" (p. 186)
  • 9DE for Category 9 "Propulsion systems, space vehicles and related equipment" (p. 195)

The list of countries which does not go into "dual-use items" regulations is provided at p. 200 and it includes countries like US, Canada, New Zeyland, Australia and Japan.

There are three ways how you can define if particular item goes into dual-use items regulations or not:

  • Do it your self
  • Ask the manufacturer
  • Get offical classification from appropriate beurue in EU country or from BIS in US

Other sources

In US you must be aware of Export Administration Regulations

In US law there is a specific difference between the item, where "No Licence Required" (NLR) and the one which is not listed yet in CCN (EAR99).

BIS posses dedicated SNAP-R service to register export licence application

Some news about last changes in EU regulations


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