Proposal for a Council Regulation amending Regulation (EC) No 1334/2000 with regard to the list of dual-use items and technology when exported
Date: 2001-01-31
Institutions: European Commission
Subjects: dual-use good, export licence, export monitoring, export policy

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 31.1.2001
COM(2001) 54 final

2001/0030 (ACC)

Proposal for a

COUNCIL REGULATION

amending Regulation (EC) No 1334/2000 with regard to the list of dual-use items and
technology when exported

(presented by the Commission)

EXPLANATORY MEMORANDUM

Under Council Regulation (EC) No 1334/2000 of 22 June 2000, dual-use items (including
software and technology) are subject to effective control when they are exported from the
Community.

To ensure that such control is fully effective and complies with Member States commitments
at multilateral
level, according to Article 3 of Regulation (EC) No 1334/2000, an
authorisation shall be required for the export of dual-use items listed in Annex I.

Article 11 of Regulation 1334/2000 provides that the lists of dual-use items set out in Annex I
and Annex IV shall be updated in conformity with the relevant obligations and commitments,
and any modification thereof, that each Member State has accepted as a member of the
international non-proliferation regimes and export control arrangements, or by ratification of
relevant international treaties.

On 2 December 2000, the Plenary meeting of the Wassenaar arrangement adopted important
changes in its dual-use list, that concern microprocessors, computers, clustering technology
and encryption. In order to take these changes rapidly into account, before a consolidated
version of Annex I integrating all changes and amendments adopted at multilateral level in
2000 will be proposed, it seems appropriate to modify Annex I concerning five entries
without delay.

Commission proposal

In the light of the above considerations it is necessary to modify Annex I as follows:

(a)

(b)

(c)

(d)

(e)

to modify Category 3 - Electronics, entry 3A001.a.3.a., in order to raise the control
parameter for these microprocessors from 3,500 million theoretical operations per
second (Mtops) to 6,500 Mtops;

to modify Category 4 - Computers, entry 4A003.b., in order to raise the control
parameter for these computers from 6,500 million theoretical operations per second
(Mtops) to 28,000 Mtops;

to modify category 4 - Computers, entry 4A003.d., in order to raise the control
parameter for these graphics accelerators and graphics coprocessors exceeding a
“three dimensional Vector Rate” from 3,000,000 to 200,000,000;

to modify Category 4 - Computers, entry 4A003.g., in order to raise the control
parameter for these types of equipment from 80 Mbyte/s to 1.25 Gbyte/s;

to modify Category 5-Part 2 - Information Security, Note 3: Cryptography Note, to
delete the content of paragraph d. , and modify references contained in paragraph e.
in order to make them coherent with the deletion of previous paragraph d.

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Proposal for a

COUNCIL REGULATION

amending Regulation (EC) No 1334/2000 with regard to the list of controlled dual-use
items and technology when exported

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article
133 thereof,

Having regard to the proposal from the Commission1,

Whereas:

(1)

(2)

(3)

(4)

Under Council Regulation (EC) No 1334/2000 of 22 June 2000 setting up a
Community regime for the control of exports of dual-use items and technology,2 dual-
use items (including software and technology) should be subject to effective control
when they are exported from the Community.

In order to enable the Member States and the Community to comply with their
international commitments, Annex I of Regulation (EC) 1334/2000 establishes the
common list of dual-use items and technology referred to in Article 3 of that
Regulation, that implements internationally agreed dual-use controls, including the
Wassenaar arrangement,
the
Nuclear Suppliers Group (NSG), the Australia Group and the Chemical Weapons
Convention (CWC).

the Missile Technology Control Regime (MTCR),

Article 11 of Regulation (EC) 1334/2000 establishes that Annex I shall be updated in
conformity with the relevant obligations and commitments, and any modifications
thereof, that each Member State has accepted as a member of the international non-
proliferation regimes and export control arrangements, or by ratification of relevant
international treaties.

The Wassenaar arrangement Plenary decided on 2 December 2000 to modify control
parameters in Categories 3, 4 and 5-Part 2, which are included in Annex I of
liberalisation of
Regulation 1334/2000. These amendments represent significant
control parameters,
that should be implemented at Community level within a
reasonable time scale in order to facilitate exports for which export controls are no
longer considered necessary at multilateral level.

(5)

Regulation (EC) No 1334/2000 should be amended accordingly,

1

2

OJ C , p. .
OJ L 159, 30.6.2000, p. 1.

3

HAS ADOPTED THIS REGULATION:

Annex I of Regulation (EC) No 1334/2000 is amended as follows:

Article 1

1) Category 3 - Electronics, entry 3A001.a.3.a., "3,500" is replaced by "6,500".

2) Category 4 - Computers, entry 4A003.b., "6,500" is replaced by "28,000".

3) Category 4 - Computers, entry 4A003.d., “3,000,000” is replaced by “200,000,000”.

4) Category 4 - Computers, entry 4A003.g., "80 Mbyte/s" is replaced by "1.25 Gbyte/s".

5) Category 5-Part 2 - Information Security, Note 3: Cryptography Note, is amended as
follows :

a)

b)

paragraph d. is suppressed.

paragraph e. is renumbered as paragraph d., and "described in paragraphs a.
to d. " is replaced by "described in paragraphs a. to c.".

This Regulation shall enter into force on the fifth day following its publication in the Official
Journal of the European Communities.

Article 2

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels,

For the Council
The President

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FINANCIAL STATEMENT

TITLE OF OPERATION: Proposal for a Council Regulation (EC) amending
Regulation (EC) N° 1334/2000 with regard to the list of dual-use items and
technology when exported

BUDGET HEADING(S) INVOLVED: A-7030

LEGAL BASIS : ARTICLE 133 OF THE EC TREATY

DESCRIPTION OF OPERATION :

1.

2.

3.

4.

4.1

General objective : TECHNICAL AMENDMENT OF ANNEX I TO COUNCIL
REGULATION (EC) NO 1334/2000 (DUAL-USE)

4.2

Period covered and arrangement for renewal.

Indefinite

5.

6.

7.

8.

9.

CLASSIFICATION OF EXPENDITURE OR REVENUE : NOT APPLICABLE

TYPE OF EXPENDITURE OR REVENUE : NOT APPLICABLE

FINANCIAL IMPACT : NOT APPLICABLE

FRAUD PREVENTION MEASURES : NOT APPLICABLE

ELEMENTS OF COST-EFFECTIVENESS ANALYSIS : NOT APPLICABLE

10.

ADMINISTRATIVE EXPENDITURE (SECTION III, PART A OF THE
BUDGET)

This section of the financial statement must be sent to DGs XIX and IX; DG IX will then
forward it to DG XIX with its opinion.

Actual mobilisation of
the necessary administrative resources will depend on the
Commission's annual decision on the allocation of resources, taking into account the number
of staff and additional amounts authorised by the budget authority.

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10.1

Effect on the number of posts

Type of post

Staff to be assigned to managing
the operation

Source

Duration

Permanent
posts

Temporary
posts

Additional
resources

Existing
resources in
the DG or
department
concerned

Officials or
temporary staff

Other resources

Total

A

1

non

1

1

1

Indefinite

If additional resources are required, indicate the pace at which they will have to be made
available.

10.2

Overall financial impact of additional human resources

(EUR)

Amounts

Method of calculation

Officials

108 000 Euros

1 x 108 000 Euros

Temporary staff

Other resources (indicate
budget heading)

No

No

Total

108 000 Euros

The amounts given must express the total cost of additional posts for the entire duration of the
operation, if this duration is predetermined, or for 12 months if it is indefinite.

10.3

Increase in other administrative expenditure as a result of the operation

(EUR)

Budget heading

Amounts

Method of calculation

A-7030 (meetings)

39 000 Euros

Four one-day meetings per year. Cost of one expert per meeting =
€
650. Average cost of one national expert per year = 4x15x650 =
€
39 000

Total

39 000 Euros

The amounts given must correspond to the total expenditure arising from the operation if its
duration is predetermined or expenditure for 12 months if it is indefinite.

6