Definition of an export license:

A license is an authorisation granted by the authority of Luxembourg to a natural or legal person in order for them to transfer goods, within the frame of general economic policy, community policy or for security and/or international commitments

Types of licenses used in Luxembourg:

1. Individual export license

Is an authorisation issued to one specific exporter for one end-user or consignee in a third country for one or more dual-use items.

Validity: from 4 months up to 12 months

2. Open individual export license

Is an authorisation issued to one specific exporter to export an unlimited quantity of one or several items of the same nature to one specific end-user or consignee.

Validity: from 6 to 12 months

3. Global export license

• Authorisation issued to one specific exporter to export an unlimited quantity (list) of one type or category of double-use items to one or more non-specified end-user in one or more specified third countries
• Validity: from 6 to 12 months

4. Community General Export Authorization (CGEA)(EU001)

• Valid for unlimited quantities, values and time period for almost all types of dual-use items
• Conditions:
  • Valid only for: Australia, Canada, Japan, New Zealand, Norway, Switzerland and US
  • Pre-registration of the exporter at the LO before the use of CGEA
  • Notification to the Luxembourg License Office no later than 30 days after the first export took place
  • Exporter must have an Internal Compliance Program (ICT) for export control

• Arms, ammunition and military equipment and relative technology
• Dual-use items
• Diamonds and gemstones
• Goods used for capital punishment or to inflict torture
• Skin and furs

• Dual-use items
• Explosives
• Arms, ammunition and military equipment

2 exceptions:

• Transfer of military equipment between NATO member countries
• Transfer of civil firearms covered by a European firearms card

• Products subject to particular EU-legislation
  • Steel products for certain destination countries
  • Goods used for capital punishment or to inflict torture
• Products subject to national legislation
  • Diamonds and gemstones
  • Arms, ammunition and military equipment
  • Skin and furs

• Issued by the Ministry of Economy and Foreign Trade on behalf of CABL
• Valid for multiple shipments while respecting the allowed set quantity
• Return of licenses to the Luxembourg License Office after completion of the transactions
• Submission of original application to Luxembourg License Office
• Issuing time: 3 working days up to several weeks
• Validity: 4 to 12 months
• Valid throughout the territory of the EU

• Export license application form from the LO

Additional documents to join to the application form:

• Copy of the invoice/pro-forma invoice
• Engagement of the exporter
• End-use certificate with non-reexport clause
• Authorisation of the Ministry of Justice, Department of Prohibited arms
• Description/information on the exported arms, ammunitions or military equipment

Definition:
Dual-use items are items, including software and technology, covered by the non-proliferation regimes, which can be used for both civil and military purposes.
All items, technologies and software included are listed in the Annex I, Annex II and Annex IV of the Council Regulation (EC) of 5 May 2009 (Official Journal 134, 29 May 2009), which are based on commitments and agreements accepted by the States parties as members of the 5 international non-proliferation and export control regimes

There are 10 categories of DU items:

• cat. 0 – Nuclear materials, facilities and equipment
• cat. 1 – Special materials and related equipment
• cat. 2 – Material processing
• cat. 3 - Electronics
• cat. 4 - Computers
• cat. 5 – Telecommunications and « Information security »
• cat. 6 – Sensors and lasers
• cat. 7 – Navigation and avionics
• cat. 8 - Marine
• cat. 9 – Aerospace and propulsion with related equipment

All these categories need an export authorisation for all destinations worldwide.

What does the application require?

• Export license application form for dual-use items.

Additional documents to join to the application form:

• Copy of the invoice/pro-forma invoice
• Copy of the commercial contract
• Technical description/information of the exported items (code NC and code DU)
• Description/information about the end-user
• End-use certificate (EUC)
• Engagement of the exporter (if necessary)

Download the end-use certificate (EUC) :

• A negotiation or arrangement of transaction for the purchase, sale or supply of dual—use items from a third country to another third country
  or
  the act of selling or buying dual-use items that are located in a third country with the intention to transfer them to another third country

What is a broker?

• Natural or legal person or partnership resident or established in a EU member state that provides services from the Community to a third country.

Elements to provide:

• Indication of third country
• Exact location of items in the third country of origin
• End-user in the third country
• Clear description of items involved
• Exact quantity of items involved
• Third parties involved in the transaction

Definition of technology transfer:

« Technologies » covered by export control are related to specific information necessary for the « development », « production » or « use » of « goods » specified in the different categories in the EU-DU Regulation and apply to:

• items of the 10 categories and the provisions of these categories (under chapters D and E)
• not listed items (if WMD purposes, arms embargoes countries)

or

• subject to the end-use end- user control in relation to WMD, arms embargoes or unauthorised military exports

Knowledge is transmitted by « technical documentation » or « technical assistance »

• « Technical assistance »: assistance in form of instructions, practical methods, training, applied knowledge, consultancy service and can involve transfer of « technical documentation »
• « Technical documentation »: data in forms of plans, diagrams, models and formulas, painting, drawings, engineering specifications, manuals, written and recorded instructions on other media or devices such as disks, tapes, sticks etc.

Technology transfer not subject to an export authorisation

Software widely available to the public

• Through direct retailers (shops, correspondence, phone...)
• Intended for installation by the user himself without requiring further assistance from the provider
• Public domain

• Download the application form (.doc, 69KB, in French)

• Measures to restrict the export of certain items with the help of an authorisation system (licenses)
• Mean used to combat:
  • Proliferation of WMD (chemical, biological and nuclear weapons)
  • Manufacturing of WMD (missiles)
  • Terrorism
• Mean to fulfil:
  • National and international security obligations
  • Commitments made as a member of the 5 non-proliferation regimes
• Is not an embargo (does not mean limitation or refusal of doing business)
• Does not intend to ban exports

• The License Office may refuse to issue an export authorisation, may cancel, revoke, suspend or modify an already issued license for DU-items or brokering services
• Refusals are notified to the competent authorities of the 27 EU-MS and to the EU-Commission

Refusal/denial notifications contain:

• Classification of DU-item
• Technical parameters
• Country of destination
• End-user
• Refusal/denials are reviewed within 3 years of their notification:
  • Possibility of revocation, amendment or renewal

Sanctions or restrictive measures (the two terms are used interchangeably) have been frequently imposed by the EU in recent years, either on an autonomous EU basis or implementing binding Resolutions of the Security Council of the United Nations. Sanctions are an instrument of a diplomatic or economic nature which seek to bring about a change in activities or policies such as violations of international law or human rights, or policies that do not respect the rule of law or democratic principles.

For the list of countries concerned, please go to:

• http://www.eeas.europa.eu/cfsp/sanctions/docs/measures_en.pdf
• http://www.eeas.europa.eu/cfsp/sanctions/index_en.htm

Indeed! For instance, if:

• The customer is located in a sensitive country
• The customer is vague, evasive, or inconsistent in providing information about the end-use of the product
• The product's capabilities or stated end-use do not fit the buyer's business activities, or level of sophistication
• Very little online information about the customer
• The customer, even if unfamiliar with the product's performance characteristics, wants it
• The customer wants technical manuals in another language than used in the country of destination
• The customer is willing to pay cash for an expensive item, even if the normal practice would involve a payment by bank transaction
• Terms of delivery, such as date, location and consignee, are vague or unexpectedly changed
• The client refuses to negotiate the purchase price
• The address of the ultimate consignee is located in a free trade zone
• The ultimate consignee is a freight forwarding firm, a trading company, a shipping company or a bank
• The shipping route is abnormal regarding the product and destination
• The buyer does not clearly indicate if the purchased product is for domestic use, export, or re-export
• The customer spells his name differently for different shipments
• The installation, testing, training or maintenance services are declined by the customer, even though these services are included in the purchase price or ordinarily requested for the specific item
• The purchase does not match the customer's business profile
• The customer requires an inspection of the goods by a member of the Embassy before sending the products
• The customer demands a non-regulatory packaging or marking of the shipment
• The transfer of the products is carried out in a country considered as sensitive
• The client wants to ship goods but only via one strict set route

Please note that this list is not exhaustive! For any further questions on red flags, please contact the License Office directly:
Phone: +352 22 61 62
Email: office.licences@eco.etat

Indeed! Have a look at:

• Council Regulation (EC) No 428/2009 of 5 May 2009 setting up a Community regime for the control of exports, transfers, brokering and transits of dual-use items
  (JO-EU L 134 of 29 May 2009): http://eur-lex.europa.eu/fr/index.htm
• Missile Technology Control Regime ( MTCR): www.mtcr.info
• Australia Group: www.australiagroup.net
• Nuclear Supplier Group (NSG): www.nuclearsuppliersgroup.org
• Wassenaar Arrangement (WA): www.wassenaar.org
• Chemical Weapons Conventions (CWC): www.opcw.org

Or for more information on export licenses, please contact the License Office under:
Phone: +352 247-226162
Email: office.licences@eco.etat