The Ministry of Defence’s Policy on the Control of Strategic and Military Goods and Services

The export of strategic goods is subject to strict regulations. Strategic goods include military goods, dual-use goods, and sanctioned goods. To prevent undesirable end-use, an export license is required for the export of strategic goods and related services. If the risk of undesirable end-use is too high, the license application will be rejected.

The Different Categories of Strategic and Military Goods

The export control policy focuses on the following categories:

1. Military Goods

Military goods are products listed on the Common EU List of Military Goods. Examples include armored vehicles, warships, and specialized military equipment.

1. Dual-Use Goods

Dual-use goods have both civilian and military applications. Examples include certain flame retardants used in construction but also as raw materials for poison gas. Dual-use goods also include test and production equipment, materials, software, and technology. Dual-use goods can pose a threat to public health, animal health, or the environment. Due to international security, strict rules apply to the export and transit of dual-use goods.

1. Sanctioned Goods

Some sanctions involve measures that prohibit the export of certain goods – which normally do not fall under export control – to the sanctioned country or subject them to a licensing requirement. Think of goods that contribute to the military-industrial capacity of the sanctioned country.

Strategic Services

Strategic services are services related to strategic goods. This includes the non-physical transfer of software and technology, for example via phone or email, providing technical assistance, and performing intermediary services. Strategic services include repairs and maintenance of military or dual-use goods, instructions on their use, and certain software-related services.

Goods that may be used for torture

‘Torture goods’ include products specifically designed to inflict physical or mental pain. These include guillotines, thumb screws, electric shock devices, pepper spray and certain narcotics. These items, listed in Annex II of the EU Anti-Torture Regulation, are subject to an absolute export ban. That means it is not allowed to trade these items or provide related services, such as technical assistance or brokering. There is only one exception to this rule: when it comes to exhibiting them in museums because of their historical significance.

Policy for Export Control of Strategic Goods

The Dutch export control policy for strategic goods aims to ensure international security and prevent the misuse of sensitive technologies. A key principle of this policy is that the Netherlands does not contribute to the development and proliferation of weapons of mass destruction and their delivery systems. Therefore, export licenses are not granted if there is even a suspicion that goods could be used for these purposes. Additionally, the Netherlands does not issue licenses if the goods pose a risk of contributing to human rights violations, internal repression, international aggression, or instability. In weighing whether to grant a license, the Netherlands prioritizes security interests over economic interests.

At the same time, the Netherlands strives for a balanced and efficient export control system. Unnecessary administrative burdens for companies are avoided where possible. The Netherlands also actively works towards an international level playing field, so that Dutch companies do not face competitive disadvantages compared to companies in other countries.

Eight Criteria for a License to Export Military Goods

Based on eight criteria, the Dutch government assesses whether a company or organization receives a license to export military goods. These criteria are listed in the EU Common Position on Arms Export.

Criteria on which the export of military goods is almost always prohibited:

• Export is in violation of international agreements or political decisions;
• The country violates human rights or international humanitarian law;
• The country uses the goods to provoke or exacerbate conflicts in another country;
• The export threatens regional stability.

Criteria requiring additional investigation for the export of military goods:

• The export endangers the national security of the Netherlands and its allies;
• The recipient country supports terrorism or organized crime or does not comply with the laws of war, arms control, or disarmament;
• The recipient country may use the goods for other purposes or re-export them to other countries;
• The recipient country is a developing country that lacks the technical knowledge to handle the goods or spends more on weapons than on education, healthcare, jobs, and poverty reduction. This refers to developing countries according to the list of the Organization for Economic Cooperation and Development (OECD).

Export License for Dual-Use Goods

When a company wants to export dual-use goods from the Netherlands, an export license is often required. Which dual-use goods require an export license is listed in Annex I of EU Regulation 2021/821. Article 15 of the regulation lists several considerations that the Dutch export control authorities must take into account when assessing an export license application.

The Dutch export control policy aims to contribute to a safer world and prevent the undesirable end-use of strategic goods. By following a careful process, the Netherlands contributes to international interests and its own security. At the same time, it strives for a system for companies where transparency and a level playing field are central. For companies, it is essential to be aware of the rules and obligations that apply to the export of strategic goods and services.

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