The legal reform on dual-use products introduces controls on product-related technology and software

Changes concerning export controls of dual-use products, i.e. products that can be used for both civilian and military purposes, have entered into force. As Customs enacts wider powers, controls on dual-use products will in the future, in addition to physical goods, cover various technical services, software and technologies relating to dual-use goods. With these legislative reforms, Customs wants to underline the increased responsibilities of export companies in ensuring that dual-use products are not used for wrong purposes.

Reforms to the legislation on dual-use products were introduced on Sunday, 15 September 2024. The legal reforms extended the scope of customs controls of dual-use products to cover not only physical products, but also various immaterial products relating to dual-use products, such as software, technology, proxy services and technical support.

Customs controls on dual-use products are not limited to conventional controls that take place on border crossing points. In addition to efficient controls, data-based risk analysis is essential. Corporate audits conducted by Customs also serve a significant role in terms of effective enforcement.

– In the future, our corporate auditors will carry out controls on so-called immaterial dual-use products. We will cooperate closely with other authorities to ensure that the objectives of the legislative reforms are met appropriately, says Tarja Kokko, Director of Enforcement.

Export companies bear significant responsibility in ensuring that dual-use products do not end up in wrong hands

As legislation has undergone reforms, a national control list of dual-use products has also been introduced. The legislative reform aims at bringing together national regulations and the EU regulation on dual-use export controls, and at ensuring efficient export controls. Finnish Customs supervises the export, transit and movement of dual-use products.

Regulations on dual-use exports are essential for example in the appropriate implementation of EU sanctions against Russia.

– We indeed emphasise the responsibility that export companies have in terms of knowing their end customers in keeping dual-use exports from ending up in the wrong hands, says Samy Gardemeister, Director of the Enforcement Department.

Press release by the Ministry for Foreign Affairs on the legislative reform (16 September 2024): Act on the Export Control of Dual-Use Items and Decree on the Advisory Board on Export Control enter into force