Export control

Export control is the collective term for a number of regulations that govern the export and transfer of certain goods, services, technology and knowledge abroad or to foreign nationals. The purpose of these regulations is to prevent the proliferation of sensitive products or technology that can be used for military purposes or to violate international security commitments. For many Swedish companies, this entails concrete requirements that must be considered in day-to-day operations.

What is export control?

Export control is the collective term for a number of regulations that govern the transfer of certain goods, services, technology and knowledge abroad or to foreign nationals. Export control regulations are found in the sanctions regulations, the EU's regulation on export control of dual-use items and in the Swedish Act on War Material. Common to these rules is that authorisation may be required for the export of specifically designated goods and technology.

What is covered by export control?

Export control regulations cover war material but also dual-use products, software and technology, known as dual-use products or DUI (Dual-Use Items). These are products that can be used for both civilian and military purposes. Sanctions regulations may also impose bans or require authorisation for the export of specifically designated products to specific recipients.

Dual-use products are listed in the extensive Annex I to the Dual-Use Regulation (EU) 2021/821. The annex includes, among other things, advanced electronics and computers, sensitive materials and chemicals, software for security services, sensors, lasers and biotechnology. The list is technically detailed and often requires specialist knowledge to determine whether a specific product or technology is covered.

Even goods not listed in the annex may in certain situations be subject to export control. This applies, for example, if there is reason to suspect that the goods will be used for the development of weapons of mass destruction, cyber surveillance, or if they are to be exported to countries subject to international sanctions.

Transfer of knowledge and technology

It is not only physical export of products that may require authorisation. Transfer of knowledge may also require authorisation or be prohibited. This includes sending technical drawings by email, conducting video calls where technical information is shared verbally or through screen sharing, or employing a foreign employee who gains access to controlled technology.

Employment of foreign staff who gain access to controlled technology or knowledge may trigger export control regulations. The same applies to the presentation or publication of research results internationally, as well as the sharing of information, drawings or specifications with foreign partners or counterparties.

Authorisation requirements may also apply when entering into agreements with foreign partners, particularly if the collaboration concerns activities worthy of protection or the development of war material.

Consequences of violations

Violations of export control regulations can have serious consequences, both for individuals and for the organisation as a whole. The supervisory authority has the power to impose fines, and responsible individuals ultimately risk criminal penalties for breaches of the legislation.

In addition to the direct legal consequences, failure to comply can result in damage to one's brand and business reputation, lost business opportunities and limited opportunities to participate in international collaborations.

How our experts can help you

Companies working with sensitive technology or sensitive products are often also subject to other security regulations, such as investment control rules (UDI/FDI Act), international sanctions and cybersecurity rules.

With solid experience and strategic advice, we help our clients establish the necessary processes in a practical manner tailored to their specific business. We help you navigate export control regulations and identify other relevant regulations, and ensure that your agreements, procedures and documentation meet all applicable requirements.

Ensure your compliance – now and in the future

Compliance is not just an obligation – it is an investment in security and long-term business success. By ensuring that applicable requirements are met, you reduce the risk of penalties and create the conditions for sustainable growth. At the same time, compliance contributes to a larger context: strengthening national and international security in an increasingly complex geopolitical reality.

These requirements are expected to increase rather than decrease. It is therefore essential to ensure compliance at an early stage and establish appropriate procedures.