New dual-use export restrictions

With the new list III, the Norwegian restrictions on dual-use items has a broader scope than the EU dual-use restrictions, and similar lists have also been adopted unilaterally by other countries, such as e.g. the UK. This is a part of a general trend, and we also refer to our previous newsletter on export control.

Businesses involved in exports – whether of goods, technology or services –  should:

• assess if their export activities might be affected by the Norwegian regulatory changes. This includes determining if there is any need to apply for any export license(s);
   
• update their internal compliance procedures and risk assessments to ensure that the new List III is appropriately reflected in the same.
   
• for businesses involved in export from several jurisdictions, consider if there is need to apply for licenses from several authorities. 
   

Schjødt's Sanctions & Export Controls Team monitor local and international developments and signals closely. Our team is experienced in all aspects of export control and sanctions-related matters, including government interactions, policy updates, export control mapping of product portfolios, risk assessments and investigations. We have an extensive global network consisting of leading export control and wider compliance specialists and can efficiently include relevant local knowledge in our assistance.

Please find more information on our corporate compliance and crisis management team here and our sanction & export control team here.

The Norwegian export control regime has up until now mainly comprised of two lists:

• List 1, concerning defence-related products; and
   
• List 2, concerning dual-use items (i.e. civilian goods and technologies which may also be used for military purposes). 
   

Products and technologies covered by the lists may not be exported from Norway without the approval of the Ministry of Foreign Affairs. The same applies to services related to the same. In addition, there are so-called "catch-all" clauses, which entails that a license may be required due to the particular end-use alone, regardless of the product and technology involved 

The new list III expands this export control regime by designating additional goods and technologies as dual-use items subject to license restrictions (i.e. in addition to those already included on List II, which remains unchanged). 

List III comprises the same categories of items as in List II. List III is therefore not adding new categories to the regime – but expanding the applicability and scope of the different categories. The categories include: "Category 2 - Materials Processing", "Category 3 - Electronics" and "Category 4 - Computers". 

The changes reflect new/emerging technologies and geopolitical trends, and the Ministry has already signaled that further additions should be expected.  The new List III is going beyond the EU Dual-Use Regulations, on which the aforementioned List II is based. At the same time the list has been coordinated with, among others, Denmark, Finland, UK, Spain and the Netherlands, who have implemented similar lists. Part of the reasoning behind this fragmented approach, where national authorities impose their own national lists, is a growing dysfunction within multilateral export control regimes, especially the Wassenaar Agreement, where different initiatives to introduce amendments have been vetoed by Russia. 

It should also be noted that on 5 September this year, the European Commission proposed an update to the EU-dual use export control list, known as List II in the Norwegian Regulation on Export. The updates are not yet in force, and subject to processes in the European Council and Parliament, the changes can be expected to enter into force later this autumn.