Expanded Norwegian export controls for critical goods and technologies and updates to the EU Dual-Use List

On 3 October 2024, the Norwegian Ministry of Foreign Affairs announced significant amendments to the Export Control Regulations (Regulation of 19 June 2013 No. 718). The key development is the introduction of a new Annex III, establishing a national control list for certain critical goods, technologies, and services not previously subject to export controls under Annex II (dual-use items).

The amendments will come into effect on 1 November 2024, with a transitional period of approximately one month to allow affected parties to adjust to the new requirements. 

The new control list (Annex III) lists specific critical goods and technologies considered as emerging or breakthrough technologies that warrant control. Amongst other things, the list includes items related to the production of advanced semiconductors and quantum computers. Export of items listed in Annex III requires a licence from the Ministry of Foreign Affairs, regardless of the destination country. This extends to related technologies and services associated with the listed items.

This move aligns Norway with a global trend of tightening export controls on sensitive technologies, reflecting similar actions by EU member states, the United States, and other key jurisdictions. Both the EU and the United States have identified advanced semiconductor technology and quantum computing as crucial dual-use technologies. Norway's implementation mirrors measures adopted by Denmark, Finland, the Netherlands, Spain, and the United Kingdom. The collective effort aims to prevent circumvention of controls by ensuring as many countries as possible adopt similar regulations. 

We also note that on 5 September 2024, the European Commission published a Delegated Regulation, including an update to the EU dual-use export control list included in Annex I of EU Regulation 2021/821 (the “EU Dual-Use List”). 

This update brings the EU Dual-Use List in line with decisions taken in the multilateral Export Control Regimes, such as the Wassenaar Arrangement, Missile Technology Control Regime, Australia Group and Nuclear Supplier Group in 2023. 

We note that the amended Annex is not yet in force. Subject to the European Council and Parliament not raising any objections within a period of two months, the amendments will be published in the EU Journal and enter into force on the day following publication. 

The new control lists – key technologies under control 

The new Norwegian Annex III follows the categories of the EU Dual Use List but introduces controls solely for Category 2 (Materials Processing), Category 3 (Electronics), and Category 4 (Computers).

A key technology within materials processing is additive manufacturing equipment, which relates to certain 3D printers designed for producing metal or metal alloy components using laser, electron beam, or electric arc, with specific controlled atmospheres and in-process monitoring capabilities.

Another technology is dry etching equipment and other manufacturing components relating to semiconductors. Annex III also controls advanced materials, such as enriched silicon and germanium with purity levels essential for semiconductor applications.

Annex III further controls high-performance electronics (e.g., integrated circuits) with certain high data transfer rates and processing performance .Another area is quantum computing technologies, including systems supporting a certain number of fully controlled and connected physical qubits with low error rates.

Finally, Annex III also controls software and technology for reverse engineering, which can extract layout data from microchips to generate circuit netlists, technology for certain developments and production of integrated circuits, and quantum software and technology.

The Norwegian government anticipates expanding Annex III with additional goods and technologies in the near future.

The update to the EU Dual-Use List includes additions of new dual-use goods to the list, such as (i) new types of plants and equipment in the nuclear field, (ii) additional toxins and chemical precursors, and (iii) equipment related to noise reduction. In addition, there are modifications to the parameters of existing controlled goods on the list. A summary of the amendments are available on the EU’s webpages.

Key actions 

The introduction of additional and amended export controls means that renewed attention is required in order to ensure compliance. We note that many of the additional controls imposed in Norway are particularly relevant for businesses dealing with advanced and emerging technologies. Companies exporting equipment  should act promptly to ensure compliance and avoid potential legal, operational and reputational risks. Key actions include: 

• Update internal compliance programmes to reflect the new controls and ensure that relevant staff are trained on the updated licensing requirements
• Carry out classifications of goods and technology and assess whether applicable notes and exemptions apply 
• Assess current export activities to identify any transactions that will require a licence from the date when the new controls enter into force.
• If relevant, apply for licences from competent authorities