Tag Archives: dual-use

image_pdfimage_print

Encryption Dual-Use Regulation under EU Law

Global encryption regulations symbolized by a digital lock over a world map.
Encryption dual-use regulation is explored in this article by Jacques Gascuel, offering an overview of the legal framework under EU Regulation 2021/821. This living document will be updated as new information emerges, keeping you informed about the latest regulatory changes and their impact on encryption technologies.

Understanding Encryption Dual-Use Regulation under EU Regulation 2021/821

Encryption dual-use regulation directly impacts companies working with cryptography. EU Regulation 2021/821 sets clear legal obligations for exporting encryption technologies that could be used in both military and civilian contexts. This article breaks down essential compliance requirements, highlights the risks of non-compliance, and examines opportunities for innovation.

Legal Framework and Key Terminology in Encryption Dual-Use Regulation

Definition of Dual-Use Encryption under EU Regulation

Under EU Regulation 2021/821, encryption technologies are classified as dual-use items due to their potential applications in both civilian and military contexts. Key terms such as “cryptography,” “asymmetric algorithm,” and “symmetric algorithm” are essential for understanding how these regulations impact your business. For example, an asymmetric algorithm like RSA involves different keys for encryption and decryption, which affects export licensing.

Importance of Asymmetric and Symmetric Algorithms in Dual-Use Regulation

Both asymmetric and symmetric algorithms are integral to information security under encryption dual-use regulation. Asymmetric algorithms like RSA are commonly used in key management, while symmetric algorithms, such as AES, ensure data confidentiality by using the same key for both encryption and decryption.

Cryptography: Principles, Exclusions, and Dual-Use Compliance

Cryptography plays a vital role in data protection by transforming information to prevent unauthorized access or modification. According to the regulation, cryptography excludes certain data compression and coding techniques, focusing instead on the transformation of data using secret parameters or cryptographic keys.

Technical Notes:

  • Secret Parameter: Refers to a constant or key not shared outside a specific group.
  • Fixed: Describes algorithms that do not accept external parameters or allow user modification.

Quantum Cryptography and Emerging Innovations in Dual-Use Regulation

Quantum cryptography is an emerging field that significantly impacts encryption dual-use regulation. By leveraging quantum properties, it allows for highly secure key sharing. However, this technology is still subject to the same stringent regulatory standards as traditional encryption methods.

Exporter Obligations: Compliance with Encryption Dual-Use Regulation and Penalties

Legal Requirements for Exporters

Under EU Regulation 2021/821, companies exporting encryption products must adhere to strict dual-use regulations. This includes obtaining an export license before transferring technologies covered by Article 5A002. Compliance involves a thorough product assessment, proper documentation, and ongoing vigilance to prevent misuse.

Risks of Non-Compliance

Failing to comply with encryption dual-use regulation can result in significant fines, legal action against company leaders, and damage to the company’s reputation. These risks highlight the importance of understanding and meeting all regulatory requirements.

Category 5, Part 2: Information Security Systems

Specifics of Systems under Article 5A002

Article 5A002 of EU Regulation 2021/821 covers a range of systems, equipment, and components critical to information security. Both asymmetric and symmetric cryptographic algorithms fall under this regulation, with specific requirements for export controls.

  • Asymmetric Algorithm: Uses different keys for encryption and decryption, critical for key management.
  • Symmetric Algorithm: Uses a single key for encryption and decryption, ensuring data security.
  • Cryptography: Involves the secure transformation of data, with specific exclusions for certain techniques.

Technical Notes and Article 5A002.a Requirements

Article 5A002.a specifies that systems designed for “cryptography for data confidentiality” must meet particular criteria, especially when employing a “described security algorithm.” This includes various information security systems, digital communication equipment, and data storage or processing devices.

Technical Notes:

  • Cryptography for Data Confidentiality: Includes cryptographic functions beyond authentication, digital signatures, or digital rights management.
  • Described Security Algorithm: Refers to symmetric algorithms with key lengths over 56 bits and asymmetric algorithms based on specific security factors, such as RSA with integer factorization.

Practical Cases and Legal Implications

Examples of Non-Compliance Penalties

Several companies have faced severe penalties for failing to adhere to encryption dual-use regulation:

  • ZTE Corporation (China) – Penalized for violating ITAR and EAR regulations, showcasing the importance of compliance with global dual-use regulations. More details on the BIS website.
  • Airbus (France) – Fined for export violations related to arms and technology, demonstrating the risks for European companies under dual-use regulation. Learn more on the AFP website.
  • Huawei Technologies (China) – Faced restrictions for violating export regulations concerning national security. Details available via the U.S. Department of Commerce press release.

Consequences and Lessons Learned

These cases highlight the significant legal and financial risks of non-compliance with encryption dual-use regulation. Companies must prioritize regulatory compliance to avoid similar outcomes.

Integration with International Regulations

Ensuring Compliance with Global Standards

EU Regulation 2021/821 must be considered alongside other international regulations, such as the International Traffic in Arms Regulations (ITAR) in the United States. Understanding how these laws interact is crucial for companies operating globally to ensure full compliance and avoid legal conflicts.

Risk Management and Opportunities

Managing the Risks of Non-Compliance

Non-compliance with encryption dual-use regulation exposes companies to severe penalties, including financial losses and restricted market access. Regular compliance audits and thorough employee training are essential to mitigate these risks and ensure adherence to regulatory standards.

Innovation and Regulatory Opportunities

Emerging technologies, such as quantum cryptography, offer new opportunities but also bring regulatory challenges. Some innovations may qualify for exemptions under certain conditions, allowing companies to explore new markets while remaining compliant with encryption dual-use regulation.

Conclusion

Adhering to EU Regulation 2021/821 is critical for companies involved in cryptography. Compliance with encryption dual-use regulation, understanding legal obligations, and exploring opportunities for innovation are key to securing your business’s future. For further insights, explore our article on dual-use encryption products.

DataShielder Defense NFC HSM: Protect Your Sovereign Communications

DataShielder Defense NFC HSM Protect your Sovereign Communications by Freemindtronic Andorra
DataShielder Defense NFC HSM – Jacques Gascuel: This article will be updated with any new information on the topic.

Why You Need DataShielder Defense NFC HSM

DataShielder Defense NFC HSM, a patented solution, ensures maximum confidentiality and anonymization of communications from sovereign entities. Using NFC technology, this HSM manages up to 200 secrets offline, contactless and shareable via any communication method, including email and SMS. A GreenTech innovation, it is interoperable, backward compatible and versatile, designed to immediately respond to various specific needs and customizable for enhanced secret security.

2024 Digital Security

Cyberattack Exploits Backdoors: What You Need to Know

2024 Digital Security

Google Sheets Malware: The Voldemort Threat

2024 Articles Digital Security News

Russian Espionage Hacking Tools Revealed

2024 Digital Security Spying Technical News

Side-Channel Attacks via HDMI and AI: An Emerging Threat

DataShielder Defense NFC HSM: How to Protect Your Sovereign Communications with a Revolutionary Solution

The protection of sovereign entities and the enhancement of existing defense and intelligence systems are crucial challenges in today’s world. Sovereign communications, such as those between heads of state, diplomats, military personnel, or secret agents, are constantly exposed to threats of interception, hacking, or manipulation. These threats can compromise the security, integrity, and confidentiality of sensitive information, and have serious consequences for national and international security.

To address these challenges, a revolutionary solution has been developed by Freemindtronic, a andorran company specialized in data security and encryption. This solution is called DataShielder Defense NFC HSM, and it is the ultimate solution for protecting all forms of communications of sovereign entities. This innovative and cutting-edge solution, protected by two patents, guarantees an unparalleled level of confidentiality and trust among humans, without compromise. With DataShielder, your secrets and sensitive data remain inaccessible and indecipherable, even in case of compromise of the equipment and information and communication systems.

In this article, we will explain how DataShielder Defense NFC HSM works, what are its features and benefits, and how it can be customized to suit your specific needs. We will also show how this solution could have influenced several major events in the history of communication security, and how it has received international recognition and awards for its excellence.

How DataShielder Defense NFC HSM Works

DataShielder Defense NFC HSM is a device that uses Near Field Communication (NFC) technology to create, store, and use up to 100 different secrets in a single device. A secret can be anything that you want to protect, such as an encryption key, a password, a PIN code, a cryptocurrency key, a bank account information, or a message. DataShielder allows you to share your encrypted secrets via all the means of communication available in the world, such as postal mail, webcam, email, SMS, MMS, RCS, messaging, or directly between two NFC HSM devices.

To use DataShielder, you need an Android NFC phone or tablet, and the DataShielder app, which is available for free on the Google Play Store. You also need a DataShielder Defense NFC HSM device, which is a small and discreet card that can be customized to fit different formats and accessories. The device does not require any battery or external power source, as it uses the energy of the NFC signal of the phone to operate on demand.

To create a secret, you simply need to tap your phone on the device, and choose the type of secret you want to create. You can either generate a random secret, or import an existing one. You can also add specific trust criteria for each secret, such as BSSID, geographical area, password, fingerprint, QR code or barcode scan, and phone UID. The absence of any of these criteria makes the access to the secret impossible, ensuring maximum and personalized security.

To use a secret, you simply need to tap your phone on the device, and choose the secret you want to use. You can either use it directly on your phone, or send it to another device or person. You can also use the secret to unlock secure USB or SSD keys, to log in to your favorite websites, to make secure voice calls and SMS, to manage your banking information, to generate and use cryptocurrency wallets, and more.

To share a secret, you simply need to tap your phone on the device, and choose the secret you want to share. You can either share it directly with another NFC HSM device, or encrypt it with the RSA-4096 public key of the recipient, and send it via any means of communication. The recipient will need to decrypt the secret with their NFC HSM device, using the EviSCP HSM (ZKP) protocol, which is a patented technology that ensures a secure and confidential exchange of secrets.

Differentiating Benefits of DataShielder Defense NFC HSM

DataShielder Defense NFC HSM offers a complete and adaptable solution to your needs, thanks to the set of advanced and efficient features that it incorporates. These features are based on different technologies, each with a specific name and function. Here is a summary of the main features and benefits of DataShielder:

 

Feature Technology Function Benefit
Random generation of symmetric and asymmetric encryption keys EviCypher NFC HSM Encrypt all types of data (texts, images, videos) in post-quantum AES-256. Use the RSA-4096 public key to exchange encrypted secrets between distant NFC devices. Protect your data and secrets from unauthorized access and decryption, even in case of quantum computing attacks.
Random generation of identifiers and passwords EviPass NFC HSM Generate automatically complex and complicated passwords up to 48 characters based on the 95 ASCII characters, or on bases 16, 58, 64 or 85. Import and store manually login identifiers, PIN codes, PUK, lock codes, TPM2.0 passwords, BitLocker… Log in automatically to your favorite websites. Secure your online accounts and devices with strong and unique passwords. Save time and avoid typing errors with automatic login.
Create a segmented key EviAuth NFC HSM Divide your secret into two segments and store them on two different NFC HSM devices. Require the presence of two people to reconstitute the secret. Increase the security and confidentiality of your secret by adding a human factor. Prevent the access to the secret by a single person or device.
Management of secret OTP keys EviOTP NFC HSM Store securely the secret OTP keys whose one-time passwords based on time (TOTP) or HMAC (HOTP) to generate a secondary authentication factor (2FA). Enhance the security of your online accounts and services with a second factor of authentication. Avoid the risk of losing or compromising your OTP keys.
Secure voice calls and SMS EviCall NFC HSM Store your phone contacts and make a voice call from the NFC HSM without leaving any trace in the phone history. Communicate securely and discreetly with your contacts. Avoid the interception and recording of your voice calls and SMS.
Secure management of banking information EviPay NFC HSM Store, manage and use securely the information related to credit cards and bank accounts. Protect your financial information and transactions from fraud and theft. Access and use your banking information easily and securely.
Unlocking of secure USB or SSD keys without contact EviKey NFC HSM Manage the administrator, user and temporary user PIN codes to unlock the secure USB/SSD keys without contact. Secure your external and internal storage with a contactless unlocking system. Manage the access rights and permissions of the USB/SSD keys.
Generation of cryptocurrency wallets EviSeed NFC HSM Automatically and directly create from a blockchain the secret BIP39 key, its derived key, its public key and the public address. The balance verification is done directly on the blockchain. Create and use cryptocurrency wallets securely and conveniently. Store your cryptocurrency keys in an inviolable and encrypted manner. Verify your balance directly on the blockchain.
Automatic import of private keys EviVault NFC HSM Import derived private keys by scanning their QR codes from five blockchain platforms including Bitcoin, Ethereum, Polygon, Binance Smart Chain and IOTA. Create and save also the BIP39 PassPhrases. Import and use private keys from different blockchain platforms easily and securely. Scan the QR codes and store the keys in an encrypted manner. Create and save also the BIP39 PassPhrases.
Management of authentication cards EviCore NFC HSM Scan and store the barcode or QR code of any type of card that uses this type of identification (access cards, loyalty cards sometimes linked to a payment system). Store and use authentication cards securely and conveniently. Scan the barcode or QR code and store it in an encrypted manner.
NFC HSM pairing key manager EviCore NFC HSM Manage the NFC HSM fleet within a sovereign entity. Manage and control the NFC HSM devices within your organization. Assign and revoke pairing keys for the devices.
Data encryption EviCrypt NFC HSM Encrypt your texts and files upstream before sending them to your recipients using your usual messaging services. Encrypt your data before sending it via any means of communication. Ensure that only the intended recipients can decrypt and access your data.
Use on all computer systems EviCore NFC HSM Browser Extension Use your NFC HSM with the free Freemindtronic browser extension based on Chromium and Firefox. Find the DataShielder NFC HSM functions on all your computers. Use your NFC HSM on any computer system.
Use of a virtual USB Bluetooth keyboard EviKeyboard BLE Use a virtual keyboard for secure and discreet input. Extend the use of secrets in HID mode on various computer systems, TPM2.0, BitLocker, Windows, Linux, Apple, proprietary software and web browsers. Don’t touch the keyboard. Enter a free line of code up to 52 characters. Entering BIOS passwords. Easy to use

Stealth Customization Options

The manufacturer Freemindtronic offers a customization service specially designed for sovereign entities, combining discretion and functionality.

Discreet Formats: Modified standard PVC and PCB cards for effective camouflage.

Stealth Accessories: Labels, key rings, promotional pens, and cufflinks subtly integrating NFC HSM devices.

USB Dummy Keys: Mini USB keys functioning as secret containers for the NFC HSM devices.

NFC On/Off Card: PCB cards with switchable NFC antenna for increased stealth.

These options guarantee invisible security, ideal for special operations and covert missions.

Complementary Accessories

  • Secure NFC EviKey USB and SSD Keys: These devices offer secure external and internal storage, perfectly integrated with DataShielder NFC HSM for enhanced data protection.
  • Bluetooth Virtual Keyboard EviKeyboard BLE: An innovative keyboard for secure and discreet input, complementing the DataShielder NFC HSM by an additional layer of security in data entry.

International Distinctions and Awards

The EviCypher NFC HSM technology, essential to DataShielder, has received worldwide recognition, marked by several important awards.

  • Gold Medal 2021 of the Geneva Inventions: EviCypher Technology awarded among hundreds of international inventions.
  • Three Global InfoSec Awards 2021: Awarded for being the best data security solution by Cyber Defense Magazine “Next-Gen in Crypto Security”, “Most Innovative Hardware Password Manager”, “Next-Gen in Secrets Management”.
  • Two E&T Innovation Awards 2021: Distinguished for the best communication and IT solution, as well as for the best cybersecurity solution.
  • Two nominations for the National Cyber Awards 2021 of the United Kingdom: Finalist in two categories “The Innovation in Cyber Award 2021” and “The Cyber Defense Product of the Year 2021”.
  • Gold Globee Award 2022: Cyber Computer NFC winner of a Cyber Security Global Excellence Awards®.
  • Fortress Award 2023: Awarded for its excellence in encryption and privacy protection.

Conclusion

DataShielder Defense NFC HSM is a revolutionary solution for protecting your sovereign communications. It offers a high level of security, confidentiality, and trust, without compromise. It is compatible with all types of data and communication means, and can be customized to suit your specific needs. It is also environmentally friendly, durable, and interoperable. It has received international recognition and awards for its excellence and innovation. If you are looking for a solution that can protect your secrets and sensitive data from any threat, DataShielder Defense NFC HSM is the solution for you. Contact Freemindtronic today and get your DataShielder Defense NFC HSM device. You will not regret it.

Dual-Use Encryption Products: a regulated trade for security and human rights

Dual-Use encryption products a regulated trade for security and human rights by Freemindtronic-from Andorra
Dual-use encryption products by Jacques Gascuel: This article will be updated with any new information on the topic.

Dual-use encryption products: a challenge for security and human rights

Encryption is a technique that protects data and communications. Encryption products are dual-use goods, which can have civilian and military uses. The export of these products is controlled by the EU and the international community, to prevent their misuse or diversion. This article explains the EU regime for the export of dual-use encryption products, and how it has been updated.

The international regulations on dual-use encryption products

The main international regulations that apply to dual-use encryption products are the Wassenaar Arrangement and the EU regime for the control of exports of dual-use goods.

The Wassenaar Arrangement

The Wassenaar Arrangement is a multilateral export control regime that aims to contribute to regional and international security and stability. It promotes transparency and responsibility in the transfers of conventional arms and dual-use goods and technologies. It was established in 1996 and currently has 42 participating states, including the United States, Canada, Japan, Australia, Russia, China and most of the EU member states.

The Wassenaar Arrangement maintains a list of dual-use goods and technologies that are subject to export control by the participating states. The list is divided into 10 categories, with subcategories and items. Category 5, part 2, covers information security, including encryption products. The list of encryption products includes, among others, the following items:

  • Cryptographic systems, equipment, components and software, using symmetric or asymmetric algorithms, with a key length exceeding 56 bits for symmetric algorithms or 512 bits for asymmetric algorithms, or specially designed for military or intelligence use.
  • Cryptanalytic systems, equipment, components and software, capable of recovering the plain text from the encrypted text, or of finding cryptographic keys or algorithms.
  • Cryptographic development systems, equipment, components and software, capable of generating, testing, modifying or evaluating cryptographic algorithms, keys or systems.
  • Non-cryptographic information security systems, equipment, components and software, using techniques such as steganography, watermarking, tamper resistance or authentication.
  • Technology for the development, production or use of the above items.

The participating states of the Wassenaar Arrangement are required to implement national export controls on the items listed in the arrangement, and to report annually their exports and denials of such items. However, the arrangement does not impose binding obligations on the participating states, and each state is free to decide whether to grant or refuse an export license, based on its own policies and national interests.

The EU regime for the control of exports of dual-use goods

The common legal framework of the EU for dual-use goods

The EU regime for the control of exports of dual-use goods is a common legal framework. It applies to all EU member states, and it has two main goals. First, it aims to ensure a consistent and effective implementation of the international obligations of export control. Second, it aims to protect the security and human rights of the EU and its partners. The regime is based on the Regulation (EU) 2021/821, which was adopted in May 2021 and entered into force in September 2021. This regulation replaces the previous Regulation (EC) No 428/2009.

The Regulation (EU) 2021/821: the principles and criteria of export control

The Regulation (EU) 2021/821 establishes a Union list of dual-use goods. These are goods that can have both civilian and military uses, such as software, equipment and technology. These goods are subject to an export authorization, which means that exporters need to obtain a permission from the competent authorities before exporting them. The Regulation also sets out a set of general principles and criteria for granting or refusing such authorization. The Union list of dual-use goods is based on the international export control regimes, including the Wassenaar Arrangement. It covers the same categories and items as the latter. However, the EU list also includes some additional items that are not covered by the international regimes. These are cyber-surveillance items that can be used for internal repression or human rights violations.

The Union list of dual-use goods: the categories and items subject to an export authorization

The Union list of dual-use goods consists of ten categories, which are:

  • Category 0: Nuclear materials, facilities and equipment
  • Category 1: Materials, chemicals, micro-organisms and toxins
  • Category 2: Materials processing
  • Category 3: Electronics
  • Category 4: Computers
  • Category 5: Telecommunications and information security
  • Category 6: Sensors and lasers
  • Category 7: Navigation and avionics
  • Category 8: Marine
  • Category 9: Aerospace and propulsion

Each category contains a number of items, which are identified by a code and a description. For example, the item 5A002 is “Information security systems, equipment and components”. The items are further divided into sub-items, which are identified by a letter and a number. For example, the sub-item 5A002.a.1 is “Cryptographic activation equipment or software designed or modified to activate cryptographic capability”.

The novelties of the Regulation (EU) 2021/821: the due diligence obligation, the catch-all clause, the human security approach and the transparency and information exchange mechanism

The Regulation (EU) 2021/821 also provides for different types of export authorizations. These are individual, global, general or ad hoc authorizations, depending on the nature, destination and end-use of the items. Moreover, the Regulation introduces some novelties, such as:

  • A due diligence obligation for exporters. This means that exporters have to verify the end-use and the end-user of the items, and to report any suspicious or irregular transaction.
  • A catch-all clause. This allows the competent authorities to impose an export authorization on items that are not listed, but that can be used for weapons of mass destruction, a military end-use, human rights violations or terrorism.
  • A human security approach. This requires the competent authorities to take into account the potential impact of the items on human rights, international humanitarian law, regional stability and sustainable development, especially for cyber-surveillance items.
  • A transparency and information exchange mechanism. This requires the competent authorities to share information on the authorizations, denials and consultations of export, and to publish annual reports on their export control activities.

The dual-use encryption products: sensitive goods for security and human rights

The dual-use encryption products are a specific type of dual-use goods that fall under the category 5 of the Union list. These are products that use cryptographic techniques to protect the confidentiality, integrity and authenticity of data and communications. These products can have both civilian and military uses, and they raise important issues for security and human rights.

The dual-use encryption products: a definition and examples

The dual-use encryption products are defined by the Regulation (EU) 2021/821 as “information security systems, equipment and components, and ‘software’ and ‘technology’ therefor, which use ‘cryptography’ or cryptanalytic functions”. The Regulation also provides a list of examples of such products, such as:

  • Cryptographic activation equipment or software
  • Cryptographic equipment for mobile cellular systems
  • Cryptographic equipment for radio communication systems
  • Cryptographic equipment for computer and network security
  • Cryptanalytic equipment and software
  • Quantum cryptography equipment and software

The dual-use encryption products: security issues

The dual-use encryption products can have a significant impact on the security of the EU and its partners. On the one hand, these products can enhance the security of the EU and its allies, by protecting their sensitive data and communications from unauthorized access, interception or manipulation. On the other hand, these products can also pose a threat to the security of the EU and its adversaries, by enabling the encryption of malicious or illegal activities, such as terrorism, espionage or cyberattacks. Therefore, the export of these products needs to be carefully controlled, to prevent their misuse or diversion to undesirable end-users or end-uses.

The dual-use encryption products: human rights issues

The dual-use encryption products can also have a significant impact on the human rights of the EU and its partners. On the one hand, these products can protect the human rights of the EU and its citizens, by safeguarding their privacy and freedom of expression on the internet. On the other hand, these products can also violate the human rights of the EU and its partners, by enabling the repression or surveillance of dissidents, activists or journalists by authoritarian regimes or non-state actors. Therefore, the export of these products needs to take into account the potential consequences of the items on human rights, international humanitarian law, regional stability and sustainable development, especially for cyber-surveillance items.

The modification of the Union list of dual-use goods by the Delegated Regulation (EU) 2022/1

The Union list of dual-use goods is not static, but dynamic. It is regularly updated to reflect the changes in the technological development and the international security environment. The latest update of the list was made by the Delegated Regulation (EU) 2022/1 of the Commission of 20 October 2021, which modifies the Regulation (EU) 2021/821.

The changes made by the international export control regimes in 2020 and 2021

The Delegated Regulation (EU) 2022/1 reflects the changes made by the international export control regimes in 2020 and 2021. These are the Wassenaar Arrangement, the Nuclear Suppliers Group, the Australia Group and the Missile Technology Control Regime. These regimes are voluntary and informal arrangements of states that coordinate their national export control policies on dual-use goods. The EU is a member of these regimes, and it aligns its Union list of dual-use goods with their lists of controlled items. The changes made by these regimes include the addition, deletion or modification of some items, as well as the clarification or simplification of some definitions or technical parameters.

The new items added to the Union list of dual-use goods: the quantum technologies, the drones and the facial recognition systems or biometric identification systems

The Delegated Regulation (EU) 2022/1 also adds some new items to the Union list of dual-use goods. These are items that are not covered by the international export control regimes, but that are considered to be sensitive for the security and human rights of the EU and its partners. These items include:

  • Certain types of software and technology for the development, production or use of quantum computers or quantum cryptography. These are devices or techniques that use the principles of quantum physics to perform computations or communications that are faster or more secure than conventional methods.
  • Certain types of equipment, software and technology for the development, production or use of unmanned aerial vehicles (UAVs) or drones. These are aircraft or systems that can fly without a human pilot on board, and that can be used for various purposes, such as surveillance, reconnaissance, delivery or attack.
  • Certain types of equipment, software and technology for the development, production or use of facial recognition systems or biometric identification systems. These are systems or techniques that can identify or verify the identity of a person based on their facial features or other biological characteristics, such as fingerprints, iris or voice.

The entry into force and application of the Delegated Regulation (EU) 2022/1

The Delegated Regulation (EU) 2022/1 entered into force on 7 January 2022. It applies to all exports of dual-use goods from the EU from that date. The exporters of dual-use goods need to be aware of the changes and updates to the Union list of dual-use goods, and to comply with the export control rules and procedures established by the Regulation (EU) 2021/821. The competent authorities of the member states need to implement and enforce the new Union list of dual-use goods, and to cooperate and coordinate with each other and with the Commission. The Commission needs to monitor and evaluate the impact and effectiveness of the new Union list of dual-use goods, and to report to the European Parliament and the Council.

The national regulations on dual-use encryption products

How some countries have their own rules on dual-use encryption products

The case of the United States

Some countries have their own national regulations on dual-use encryption products, which may differ or complement the existing regimes. For example, the United States has a complex and strict export control system, based on the Export Administration Regulations (EAR). The EAR classify encryption products under category 5, part 2, of the Commerce Control List (CCL). The EAR require an export license for most encryption products, except for some exceptions, such as mass market products, publicly available products, or products intended for certain countries or end-users. The EAR also require that exporters submit annual self-classification reports, semi-annual sales reports, and encryption review requests for certain products.

The case of Andorra

Andorra is a small country between France and Spain. It is not an EU member, but it has a customs union with it. However, this customs union does not cover all products. It only covers those belonging to chapters 25 to 97 of the Harmonized System (HS), which are mainly industrial products. Agricultural products and products belonging to chapters 1 to 24 of the HS are free of import duties in the EU. But they are subject to the most-favored-nation (MFN) treatment in Andorra.

Andorra has adopted the EU list of dual-use goods. It requires an export or transfer authorization for these goods, according to the Regulation (EU) 2021/821. This regulation came into force on 9 September 2021 and replaced the previous Regulation (EC) No 428/2009. Andorra has also adopted the necessary customs provisions for the proper functioning of the customs union with the EU. These provisions are based on the Community Customs Code and its implementing provisions, by the Decision No 1/2003 of the Customs Cooperation Committee.

Andorra applies the EU regulation, as it is part of the internal market. Moreover, Andorra has adopted the Delegated Regulation (EU) 2022/1 of the Commission of 20 October 2021, which modifies the EU list of dual-use goods. This modification reflects the changes made by the international export control regimes in 2020 and 2021. It also adds some new items, such as software and technologies for quantum computing, drones or facial recognition. The Delegated Regulation (EU) 2022/1 came into force on 7 January 2022, and applies to all exports of dual-use goods from the EU from that date.

Andorra entered the security and defense sector for the first time by participating in Eurosatory 2022. This is the international reference exhibition for land and airland defense and security. Andorra became the 96th country with a security and defense industry on its territory. Among the exhibitors, an Andorran company, Freemindtronic, specialized in counter-espionage solutions, presented innovative products. For example, DataShielder Defense NFC HSM, a device to protect sensitive data against physical and logical attacks. It uses technologies such as EviCypher NFC HSM and EviCore NFC HSM, contactless hardware security modules (NFC HSM). The president of Coges events, a subsidiary of GICAT, identified these products as dual-use and military products. They need an export or transfer authorization, according to the Regulation (EU) 2021/821. Freemindtronic also showed its other security solutions, such as EviKey NFC HSM, a secure USB key, a security token. These products were displayed in the Discover Village, a space for start-ups and SMEs innovations.

Switzerland

Switzerland is not an EU member, but it has a free trade agreement with it. Switzerland has adopted the Regulation (EU) 2021/821 by the Ordinance of 5 May 2021 on the control of dual-use goods. Switzerland applies the EU list of dual-use goods and requires an export or transfer authorization for these goods, according to the Regulation (EU) 2021/821. Switzerland has also adopted the Delegated Regulation (EU) 2022/1 of the Commission of 20 October 2021, which modifies the EU list of dual-use goods.

Turkey

Turkey is not an EU member, but it has a customs union with it. Turkey has adopted the Regulation (EU) 2021/821 by the Presidential Decree No 3990 of 9 September 2021 on the control of exports of dual-use goods. Turkey applies the EU list of dual-use goods and requires an export or transfer authorization for these goods, according to the Regulation (EU) 2021/821. Turkey has also adopted the Delegated Regulation (EU) 2022/1 of the Commission of 20 October 2021, which modifies the EU list of dual-use goods.

United Kingdom

The United Kingdom left the EU on 31 January 2020. It has adopted the Regulation (EU) 2021/821 by the Dual-Use Items (Export Control) Regulations 2021, which came into force on 9 September 2021. The United Kingdom applies the EU list of dual-use goods and requires an export or transfer authorization for these goods, according to the Regulation (EU) 2021/821. The United Kingdom has also adopted the Delegated Regulation (EU) 2022/1 of the Commission of 20 October 2021, which modifies the EU list of dual-use goods.

The challenges and opportunities for the exporters of dual-use encryption products

The exporters of dual-use encryption products face several challenges and opportunities in the current context of export control regulations. Among the challenges, we can mention:

  • The complexity and diversity of the regulations, which may vary depending on the countries, the products, the destinations and the end-uses, and which require a deep knowledge and a constant monitoring from the exporters.
  • The costs and delays related to the administrative procedures, which can be high and unpredictable, and which can affect the competitiveness and profitability of the exporters, especially for small and medium enterprises (SMEs).
  • The legal and reputational risks, which can result from an involuntary or intentional violation of the regulations, or from a misuse or diversion of the products by the end-users, and which can lead to sanctions, prosecutions or damages to the image of the exporters.

Among the opportunities, we can mention:

  • The growing demand and innovation for encryption products, which are increasingly used in many sectors and domains, such as finance, health, education, defense, security, human rights, etc.
  • The contribution to the security and human rights of the exporters, their customers and the general public, by enabling the protection of data, privacy, freedom of expression, access to information and democratic participation, thanks to encryption products.
  • The cooperation with the competent authorities, the civil society and the international community, to ensure the compliance and accountability of the exporters, and to support the development and implementation of effective and balanced encryption policies and regulations, that respect the security and human rights of all stakeholders.

Conclusion

Dual-use encryption products can have both civil and military uses. They are subject to export control regulations at different levels: international, regional and national. These regulations aim to prevent the risks that these products can pose for security and human rights. At the same time, they allow the development and trade of these products. Therefore, the exporters of dual-use encryption products must comply with the regulations that apply to their products. They must also assess the impact of their products on security and human rights. The exporters of dual-use encryption products can benefit from the demand and innovation for these products. These products are essential for the digital economy and society. They can also enhance the security and human rights of the exporters, their customers and the public.

Freemindtronic Andorra is a company that specializes in dual-use encryption products. It offers secure and innovative solutions for data, communication and transaction protection. Freemindtronic Andorra respects the export control regulations that apply to its products. It is also committed to promoting and supporting the responsible and lawful use of its products. It follows the principles of security and human rights. Freemindtronic Andorra cooperates with the authorities, the civil society and the international community. It ensures the transparency and accountability of its activities. It also participates in the development and implementation of effective and balanced encryption policies and regulations. It respects the interests and needs of all stakeholders.

This site uses cookies to offer you a better browsing experience. By browsing this website, you agree to our use of cookies.