Dual-use goods
Also called dual-use items, dual-use technology
Dual-use goods are items, software and technology with both civilian and military uses, such as certain chips, machine tools, chemicals and drones. Their export is controlled. Exporters need a licence for listed items and some destinations. Banks financing trade check for dual-use risk because these goods are a common route for sanctions evasion.
How it works
Control lists set out which items are dual-use, largely based on multilateral regimes such as the Wassenaar Arrangement. An exporter classifies each item against the list. If it is controlled, the exporter applies for a licence before shipping. Banks see the trade through letters of credit and payments, and screen goods descriptions, codes, end users and routes for red flags such as transhipment hubs.
Military programmes rely on imported civilian components. The EU, UK and US ban most dual-use exports to Russia and have published lists of high-priority items found in Russian weapons. Diversion through third countries is a known evasion pattern.
The rules
Requires authorisation to export listed dual-use items and allows controls on unlisted items linked to weapons or human rights abuse.
Exporters, brokers and technical assistance providers in the EUProhibits selling, supplying, transferring or exporting dual-use goods and technology to any person in Russia or for use in Russia.
EU persons and entitiesSets UK licensing for military and dual-use exports alongside the retained dual-use regulation.
UK exportersCommon questions
Why do banks care about dual-use goods?
Banks financing or paying for trade can facilitate sanctions breaches. Dual-use goods are a main channel for supplying sanctioned military programmes, so banks screen trade documents, goods and counterparties.
What makes a good dual-use?
Its technical specifications. Control lists define items by performance, such as processor speed or machining precision. Ordinary consumer versions often fall below the thresholds, while high-performance versions need a licence.
Can an unlisted item still need a licence?
Yes. Catch-all controls apply where an exporter knows or is told that goods are intended for weapons of mass destruction, military end use in an embargoed country or similar uses.
