Export control compliance: sanctions, dual use and due diligence

What the course covers

The course deals with two control regimes that bear on the same transaction. The first is dual-use items. Regulation (EU) 2021/821 requires an authorisation to export the items listed in Annex I, and extends that duty to non-listed items where the authority has informed the exporter that the destination may involve a military end use or weapons of mass destruction, the catch-all control in article 4. Article 5 adds a specific control over non-listed cyber-surveillance items where there is a risk of internal repression or serious violations of human rights. The course also covers the Union general export authorisations in Annex II, intra-Union transfers under Annex IV, brokering services and technical assistance.

The second regime is EU restrictive measures. They are adopted by Council decision under article 29 of the Treaty on European Union and implemented by regulation under article 215 of the Treaty on the Functioning of the European Union, as set out in the general framework published on EUR-Lex. The course distinguishes arms embargoes, restrictions on admission to Union territory, import and export restrictions on goods, and the freezing of funds and economic resources.

The third element is operational: counterparty and vessel screening, sanctions clauses in contracts, end-user statements and diversion checks, evidence files and internal escalation routes for a flagged transaction.

Who it is for

Export directors, compliance officers, in-house legal teams, freight forwarders and customs brokers dealing in technology, chemicals, electronic components, machinery or equipment with mixed applications. It also suits the committees that sign off transactions to sensitive destinations.

Why it matters

In Spain, breach carries criminal exposure. Article 2.2 of Ley Orgánica 12/1995 sets the smuggling offence threshold at 50,000 euros where the transaction involves defence material or dual-use items and technology subject to authorisation, against the 150,000 euros in article 2.1 for other goods. The value of the transaction is measured against that lower figure.

The contractual and financial layer sits on top. Banks and insurers ask for compliance representations before opening a credit or issuing a policy, and a sanctions clause once triggered holds up payment or cover until the position is resolved.

Programme

• Item classification and working with Annex I of Regulation 2021/821
• Catch-all control under article 4 and cyber-surveillance under article 5
• General authorisations in Annex II and intra-Union transfers in Annex IV
• The restrictive measures framework: article 29 TEU and article 215 TFEU
• Counterparty screening, end-user checks and sanctions clauses
• Enforcement and the 50,000 euro smuggling threshold in Spain