The EU001 LICENSE
The EU001 is an export license that authorizes you to export goods and services to specific countries outside the EU (to non-EU member states).
There are so many regulations governing export trade. And these rules vary according to every nation and economic area a particular country is affiliated.
Many nations have organized themselves under regional trade blocs like the Preferential Trading Area (PTA), Free Trade Areas (FTA), Customs Union (CU), Common Markets (CM), Economic Unions, Monetary Union, and Political Unions.
Such integrations have led to the creation of export regulations that govern member states. And as a result, every nation under a particular trade union tailors its export trade controls according to its governing trading area. You find that a country's export laws are according to the nature of the country's exports, allies, regional bodies, and export goals.
Here, we will discuss the European Union’s EU001 export license.
The European Union (EU)
The EU is the largest free trade area globally. It was formed as an economic and political union to foster economic cooperation between its 27 member states. But today, it is more than that.
The EU is a single (internal) market where people, goods, services, and money or resources move freely within EU member countries. And because of this, it has made it easy for EU citizens to live, work, study, and do business in any EU country without restriction.
There are no border controls between European Union member states. The EU removed legal, technical, trade, and bureaucratic barriers to promote free trade and free movement of goods between member states so that goods flow easily within this single market.
The removal of trade barriers has eased export trade within member states as goods and items move freely from nation to nation within the single market. But when it comes to goods moving outside the EU, restrictions come into play.
To export controlled goods and services outside the European Union you must have special authorizations or licenses/permits called the EU GEAs.
What is the EU GEAs permit?
Also called the European Union General Export Authorization, the EU GEAs are legal documents that authorize you to export certain specified dual-use items from any EU country to certain specified non-EU countries.
As long as a country is not part of the EU, you will need a special license to export dual-use items. And this export permit is issued by a competent national authority of the member state where you, the exporter, reside.
Note: Dual-use items are goods, software, or technology used for civil and military purposes. Because of the sensitivity of these products, the EU is the sole body responsible for issuing legislation that controls the dual-use item export in the EU member states.
The 8 EU GEAs
The EU, through its Council Regulation, has a set of eight (8) EU GEAs that it created to license certain specified dual-use items for export to specific or named non-EU countries. The GEAS include;
EU001: The EU001 was previously called the Community General Export Authorization (CGEA). This license authorizes exports to 8 specific countries.
EU002: This license authorizes the exports of specific dual-use items, say, electronics items, to specific destinations
EU003: This license authorizes the export of repaired and replaced items to specific countries.
EU004: This license permits temporary export for fairs and exhibitions in specific countries.
EU005: This license authorizes the export of certain telecommunications equipment to specific countries.
EU006: This license authorizes the export of certain chemicals to specific countries.
EU007: This license authorizes the export of software and technology
EU008: It permits the export of encrypted goods.
Why does the EU control these exports?
The European Union uses these export licenses to balance free trade, international security, and stability. The EU licenses the export of dual use goods;
• To prevent terrorism
• To support regional stability
• To support global security
• To protect human rights
• To prevent the rapid supply of weapons of mass destruction.
Now that you have an idea about these export licenses, here's what you need to know about the EU001.
The EU001 was previously called the Community General Export Authorization (CGEA).
The EU001 (EU GEA 001) is an updated version of the existing CGEA. It authorizes the export of most products in Annex I of the dual-use regulation to eight (8) specific countries.
The EU001 has;
• A specific list of destinations to which exports are permitted
• A specific list of items that you can export to those destinations
• A particular set of conditions of use, which you must follow when exporting
Countries where the EU001 is applicable
• Switzerland (including Liechtenstein)
• New Zealand
Does the EU001 apply to specific items?
Yes, it does.
The EU001 doesn't work on all exports. To find out if you can export specific goods using the EU001 license, you must review your business to know if you meet the terms and conditions of the permit.
To do this, you should have extensive knowledge about your business. It is an exporter's responsibility to determine whether the export controls or regulations apply to a specific item. And it is also your responsibility as a manufacturer to be familiar with the technology of your products so that you know your export products' intended use or application.
This knowledge will help you know what laws govern your exports and what specific license is required.
Every EU member state has tools that can help you determine which EU GEA your exports fall under. You can use the OGEL checker tool if you are in the UK. The OGEL checker tool is a database that helps you check which EU GEA covers your products or destinations.
Annex I (EU001 Control List)
Annex I is a control list that contains all the items and technologies subject to export controls. This, of course, applies when you are exporting out of the EU. If you are shipping to EU member states, the rules are much more relaxed.
You can export the Annex I items using the general export authorization (EU001).
Annex I is broken down into ten categories that cover different product lines. And these include;
Category 0: Nuclear materials, equipment, and facilities
Category 1: Special materials and related equipment
Category 2: Materials processing
Category 3: Electronics
Category 4: Computers
Category 5: Telecommunications and information security
Category 6: Sensors and lasers
Category 7: Navigation and avionics
Category 8: Marine
Category 9: Aerospace and propulsion
You also require EU001 for some chemical items and items used for torture and execution.
Are the items on the Control list constant?
The items on the control list are more or less the same. But it would be best if you carried out your due diligence to routinely check the control list once a year to see any changes.
The control list is updated once a year to cater to any new technological developments.
How to apply for the EU001 license
Most dual-use items move freely within the EU, but when exporting them to areas outside the EU (non-EU member states), you will need the general dual-use export license (EU GEA 001/EU001).
To apply for this license, this is the procedure to follow;
Register your company with your country’s export regulatory department.
Upon registration and approval of your profile, your country’s export regulatory department will issue you a Personal Identification Number by post and a Username by email.
After receiving your PIN and Username, you can log in and submit your export license (EU001) application.
After processing your application, it takes about 20 working days for your country’s export regulatory department to grant or refuse you an export license. Sometimes, the processing time for the EU001 takes longer if the end-use destination is sensitive or if the export regulatory department must consult with another EU member state.
Once you get the EU001 license, you can export your goods and services to the USA, UK, Switzerland (and Liechtenstein), Canada, Australia, Japan, Norway, and New Zealand.
Validity of the EU001
All the eight EU GEAs are Union Licenses. This means that they are valid in all EU member states. And since the EU001 is a Union license, it is valid in all the European Union member states.
On this note, you can use the EU001 in any country in the EU to export items to any of the eight authorized destinations.
Suppose you have an export business in one EU member state (France). When your country's export authority grants you the EU001 after complying with its conditions and requirements, you can use the same EU001 license when you start running your business in another EU member state like Germany.
This, however, is if you comply with any additional requirements required by the new EU member state where you are exporting from.
Can you use the CGEA instead of the EU001?
Yes, you can.
If you already have the CGEA, then you don’t have to register for the EU001. But you will have to publish both documents (the Council Regulation 428/2009 and Council Regulation 1232/2011) for record purposes.
Can the EU001 export license be revoked?
Yes, it can.
Under the Council Regulation (EU) No 1232/2011 legislation, a national export licensing authority has the power to revoke or withdraw the benefit of an exporter’s use of the EU GEA if they find fault with your business dealings.
Penalty for violating the EU001
According to executive order No. 635 of 9 June 2011 on exports of dual-use items and technologies, noncompliance with the export authorization requirements is liable to punishment. You can be fined or imprisoned for up to 2 years.
Severe violation of the EU001 export license can earn you up to 8 years.
As an exporter in the European Union, it is essential to familiarize yourself with the EU001. This license covers most of the exports.
If you find the whole export process time-consuming and complicated, hire the services of an EOR. An Exporter of Record (EOR) will take the responsibility off your shoulders and simplify the entire export process. An EOR documents all the compliance requirements to ensure that all EU export laws/regulations are followed, thereby ensuring that your goods are exported successfully.
Partnering with a global EOR service like Blackthorne is even better because it can provide extended support services like mini-forward stocking locations to meet your needs. Contact us today!