Many companies only discover that they needed an export licence when a shipment is already on its way — or worse, when Customs carries out an inspection. An export licence is not only relevant for arms manufacturers. There are several separate situations in which a licence may be mandatory.
The main situations at a glance
1. The product is on the dual-use control list
When a product, component, software or technology meets the technical specifications on the EU dual-use control list, a licence is in principle required for export — regardless of the exporter's industry.
2. The product is military equipment
Goods specifically designed or modified for military use are subject to a separate, usually stricter licensing regime, set out in the national military goods list.
3. The destination is subject to a sanctions regime
Even a product that does not require a licence in itself can do so once it is destined for a country, sector or party subject to sanctions.
4. The catch-all clause applies
This is the situation that is most often overlooked. The catch-all clause means that even non-listed products can become subject to a licence when the exporter knows, suspects or has been informed that the product is intended for use in connection with weapons of mass destruction, military end use in an embargoed country, or another designated high-risk end use.
5. Knowledge transfer or technical assistance is involved
Sharing technical documentation, source code or technical support with a foreign party can also require a licence, depending on the nature of the information and the recipient — even without a physical product crossing the border.
How do you establish whether your situation requires a licence?
A practical approach starts with four questions:
- What is the product, and does it appear on a relevant control list?
- Where is it going, and do additional restrictions apply to that destination?
- Who is the end user, and is there reason to doubt the stated end use?
- What is the intended end use, and are there signals pointing to a different use than stated?
A yes to any of these questions is reason for further investigation, even if the product itself does not appear on a control list.
Example from practice
A supplier of industrial components, not classified as dual-use, receives an order from a new customer in a country with an elevated risk. The customer asks strikingly detailed questions about technical specifications that do not seem relevant to the stated application. This type of signal may be reason to consider the catch-all clause, even though the product itself does not require a licence.
Frequently asked questions
Is an export licence required for all countries outside the EU?
No. The licensing requirement depends on the combination of product, destination and end user/end use — not simply on the fact that the destination is outside the EU.
What happens if I export without a licence when one was required?
This can lead to criminal prosecution and, under recent Dutch legislation, also to administrative fines that can be imposed directly by Customs.
How long does it take to apply for an export licence?
That differs per type of licence and the complexity of the application. A timely assessment before entering into a transaction prevents delays afterwards.
Is the catch-all clause also relevant if my product is not dual-use?
Yes. The catch-all clause is specifically intended for non-listed products that the exporter knows or suspects may have a high-risk end use.
TradeRisk helps companies assess licensing requirements within export control and dual-use questions, and offers a quick first assessment with the Export Compliance QuickScan. Also read more about what the catch-all clause involves and what export control is.