PURPOSE: to amend Regulation (EC) No 428/2009 setting up a Community regime for the control of exports, transfer, brokering and transit of dual use items by updating Annex I.

LEGISLATIVE ACT: Regulation (EU) No 388/2012 of the European Parliament and of the Council amending Council Regulation (EC) No 428/2009 setting up a Community regime for the control of exports, transfer, brokering and transit of dual-use items.

CONTENT: the Council adopted a Regulation updating the EU's list of dual use items and technology subject to control of exports and transit, in order to align it with international rules.

Council Regulation (EC) No 428/2009 requires dual-use items (including software and technology) to be subject to effective control when they are exported from or transit through the Union, or are delivered to a third country as a result of brokering services provided by a broker resident or established in the Union.

Regulation (EC) No 428/2009 provides for the list set out in Annex I to be updated in conformity with the relevant obligations and commitments, and any modification thereof, that Member States have accepted as members of international non-proliferation regimes and export control arrangements, or by ratification of relevant international treaties.

This Regulation amending Annex I to Regulation (EC) No 428/2009 aims to take account of changes agreed within the Australia Group, the Nuclear Suppliers Group, the Missile Technology Control Regime and the Wassenaar Arrangement, subsequent to the adoption of that Regulation.

ENTRY INTO FORCE: 15/06/2012.

The European Parliament adopted a legislative resolution approving, unamended, the Council position at first reading with a view to the adoption of a regulation of the European Parliament and of the Council amending Regulation (EC) No 428/2009 setting up a Community regime for the control of exports, transfer, brokering and transit of dual use items.

The Committee on International Trade adopted the recommendation for second reading contained in the report drafted by Vital MOREIRA (S&D, PT) on the Council position at first reading with a view to the adoption of a regulation of the European Parliament and of the Council amending Regulation (EC) No 428/2009 setting up a Community regime for the control of exports, transfer, brokering and transit of dual use items.

The committee recommends that the European Parliament approve, unamended, the Council position at first reading.

The Commission accepted the position adopted by the Council . The original proposal of the Commission covered modifications of the control list agreed in the international export control regimes in 2009. The Council's position envisages further updating the control list with modifications agreed in the export control regimes in 2010.

Including both the 2009 and 2010 control list modifications in the current update exercise will allow the EU to adhere to its international commitments with regard to export controls and will significantly help EU exporters.

It should be recalled that the European Parliament endorsed the original proposal of the Commission on 13 September 2011 and has expressed its support for integrating additional modifications to the control list in line with international commitments as suggested by the Council.

The Council's first reading position is the result of informal contacts between the European Parliament, the Commission and the Council.

The approach proposed by the Commission as well as all the main elements contained in its proposal have been retained. In addition, the Council's first reading position includes a number of modifications of a more technical nature as regards the control lists for dual use goods and technology. Similarly, certain definitions have been updated.

To make the Regulation as up-to-date as possible, these modifications reflect the most recent changes agreed under the international export control regimes, and which had therefore not yet been included in the Commission proposal.

The Council's first reading position is the result of informal contacts between the European Parliament, the Commission and the Council.

The approach proposed by the Commission as well as all the main elements contained in its proposal have been retained. In addition, the Council's first reading position includes a number of modifications of a more technical nature as regards the control lists for dual use goods and technology. Similarly, certain definitions have been updated.

To make the Regulation as up-to-date as possible, these modifications reflect the most recent changes agreed under the international export control regimes, and which had therefore not yet been included in the Commission proposal.

The European Parliament adopted by 518 votes to 21, with 71 abstentions, a legislative resolution on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EC) No 428/2009 setting up a Community regime for the control of exports, transfer, brokering and transit of dual use items.

It adopted its position at first reading, under the ordinary legislative procedure, taking over the Commission proposal.

The Committee on International Trade adopted the report drafted by Vital MOREIRA (S&D, PT) on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EC) No 428/2009 setting up a Community regime for the control of exports, transfer, brokering and transit of dual use items.

It recommended that the European Parliament’s position at first reading, under the ordinary legislative procedure, should be to take over the Commission proposal.

PURPOSE : to amend Regulation (EC) No 428/2009 setting up a Community regime for the control of exports, transfer, brokering and transit of dual use items by updating Annex I

PROPOSED ACT: Regulation of the European Parliament and of the Council.

IMPACT ASSESSMENT: no impact assessment was carried out.

LEGAL BASE: Article 207 of the Treaty on the Functioning of the EU.

CONTENT: Council Regulation (EC) No 428/2009 of 5 May 2009 setting up a Community regime for the control of exports, transfer, brokering and transit of dual use items requires dual-use items (including software and technology) to be subject to effective control when they are exported from or transit through the Union, or are delivered to a third country as a result of brokering services provided by a broker resident or established in the Union.

In order to enable Member States and the European Union to comply with their international commitments, Annex I to Regulation (EC) No 428/2009 establishes the common list of dual use items and technology referred to in Article 3 of that Regulation, which implements internationally agreed dual-use controls. These commitments were taken within the context of participation in the Australia Group, the Missile Technology Control Regime (MTCR), the Nuclear Suppliers Group (NSG), the Wassenaar Arrangement and the Chemical Weapons Convention (CWC).

Technological progress in today's world means that there is a need to update regularly the list of controlled items. The last update of Annex I of the Regulation occurred on the occasion of the adoption of the Regulation on 5 May 2009. Since this time, all of the international export control regimes have taken decisions to modify and update their control lists.

Consequently, there is a need to make modifications to Annex I.

Details of the modifications to the definitions and the general note and of modifications to items in categories 1-9 are given in the proposal.

For the purpose of clarity and ease of use of Annex I, the Commission is proposing to replace the entire Annex I with a new text incorporating the changes discussed.

FINANCIAL IMPLICATION: this proposal has no implication for the EU budget.