If your technology company or startup develops software or products that can be used not only for civilian purposes but also for military action – such as for controlling drones, cybersecurity, or data encryption – they may be classified as dual-use items. In such cases, an export license is required. The export of these items is regulated under EU Regulation 2021/821 and supervised through Estonia’s strategic goods control system.
What are dual-use items?
Both Dual-use items and military goods are listed as strategic goods. Military goods include, among other things, software and technology intended for military use or listed in the official military goods list. For this reason it is important to make sure whether the software is developed exclusively for military use or is it also suitable for civilian purposes. If the product is usable in both areas, it is classified as a dual-use item.
Why are dual-use items checked?
Although most of dual-use items are made for peaceful and civilian purposes, they can also end up being used in military activities. For this reason, countries and the European Union are controlling where and to whom these items are sold – to make sure that the items don’t end up in hands of terror organizations or in dangerous countries, where is high risk of them being used in damaging ways.
When is a special license required?
Special license is required when:
- Product is listed in official military goods list – a licence is required for both import and export;
- Product is listed in the list of dual-use goods – a licence is required for export and transit;
- The item is not listed, but the Commission designates it as a strategic item;
- The item may be associated with the risk of human rights violations.
If the item is not named in any of these lists, it most likely does not require a special license for export, import, or transit.
The license requirement also applies to digital transfers -for example, if you are sending sensitive software or technological information via email.
Who is giving out licenses and how does it work?
In Estonia, licenses are issued by the Strategic Goods Commission, which operates under the Ministry of Foreign Affairs. Applications for procuring the license are submitted through an electronic platform Stratlink with needed documentation:
- Operating license – required if handling the item requires a specific permit;
- Certificate of origin and ownership – confirms the origin and acquisition of the item;
- Technical documentation – documents describing the quality and technical specifications of the item;
- Contract – the agreement serving as the basis for the import, export, transit, or provision of services with a person in the destination or origin country;
- End-use certificate – confirms who will use the item and for what purpose;
- Product description – a simple explanation of what the product is, what it does, and how it is used;
- Proof of state fee payment.
If necessary, the Commission may ask:
- Information security and network protection plan – this is required if software is being transferred electronically.
When submitting the application, a state fee of 13 euros must be paid. The Commission has 30 working days to process the application after receiving all the necessary documentation.
How can we help?
If a company works with advanced technology, electronics or software and plans to engage in international cooperation, it is recommended to check in advance whether the items fall under the category of dual-use items. A license requested at the right time protects both the company and national security. Hedman`s role is to help you make sure weather your product needs a special license and properly prepare and submit the necessary applications and documentation. We also help to review contracts, end-user certificates, and information security plans.
