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The European Commission published on 21st October, 2022 a draft of the Delegated Regulation concerning the update of the list of dual-use items set out in Annex I of Regulation (EU) 2021/821, better known as the Dual Use Regulation.

WHAT ARE DUAL-USE ITEMS?

Dual-use items are goods that can be used for both civil and military purposes or can contribute to the proliferation of weapons of mass destruction. Such items must be controlled when they are exported or transit through the European Union, or when they are transferred to a third country as a result of brokering activities.

ANNEX I OF REGULATION (EU) 2021/821

Annex I of Regulation (EU) 2021/821 of the European Parliament and the Council establishes a common list of dual-use items subject to control, which must be updated periodically to ensure compliance with international security obligations, guarantee transparency, and maintain the competitiveness of the European Union.

The draft delegated regulation contains several amendments to the EU list of dual-use items, in particular:

• the introduction of new controlled items within the list of dual-use items;
• the implementation of existing controls concerning new categories of goods; and
• the elimination of certain controls.

It should be noted that the new Annex I to the Dual Use Regulation will entail important changes to the Dual Use Regulation and, therefore, to the system of controls currently provided for. For this reason, to ensure the client's compliance with the relevant regulations, it will be necessary to update the objective due diligence activity.