Balancing Security and Innovation: Navigating the World of Dual-Use Products

General principles under Cyprus law

Dual-use items are goods, software, and technology that can be used for both civilian and military purposes. Export of such items is subject to controls and regulations to ensure that they are not used for purposes that pose a risk to national security, regional stability, or human rights.

In Cyprus, the export of dual-use items is governed by the national laws and regulations, as well as the international agreements to which Cyprus is a party. The main regulatory framework for dual-use exports in Cyprus is the Law on the Import and Export of Controlled Items and the Conduct of Controlled Activities (L. 1(I)/2011) which transposes the EU Dual-Use Regulation into national law.

Procedures which shall be followed by an exporter

The dual-use export procedures in Cyprus involve the following steps:

1. Classification of the item: The exporter must classify the item according to the relevant export control lists and determine whether it is subject to export controls.
2. Application for export authorization: If the item is subject to export controls, the exporter must apply for an export authorization from the Ministry of Foreign Affairs. The application must include detailed information about the item, the end-user, and the intended use of the item.
3. Evaluation of the application: The Ministry of Foreign Affairs evaluates the application and considers factors such as the end-use, end-user, and the risk of diversion to unauthorized uses. The Ministry may also consult with other government agencies and the EU if necessary.
4. Granting of the export authorization: If the application is approved, the exporter will receive an export authorization specifying the conditions for the export.
5. Monitoring and reporting: The exporter must comply with the conditions of the export authorization and keep records of the transaction. The exporter must also report any suspicious activities or deviations from the conditions of the export authorization.

It is important to note that the export of dual-use items is subject to strict controls and penalties for non-compliance can be severe. Therefore, it is recommended that exporters seek legal advice and guidance before engaging in any dual-use exports.

We are pleased to announce that our corporate team advised its international clients as their legal advisors on the sale of a multimillion dual-use products.

Our team has been appointed to act as the legal advisor and provided specialist  corporate and commercial legal advice.

The seller as exporter has entered into very complex agreements and procedures for the purposes of selling dual-use products for the amount of approximately Euro 25.000.000.