Exporting Tech in Europe: An Export License May Be Required for Technology Developed for Civilian Use

European technology companies and startups may be surprised to learn that their products and software solutions could require an export license due to the possibility of military application.

According to Vladislav Linko, an associate at the Hedman Law Firm, software and technologies used in areas such as drone control, cybersecurity, or data encryption may be classified as dual-use items — meaning they are suitable for both civilian and military purposes. In such cases, an export license must be obtained.

“Many dual-use technologies are created for peaceful civilian use, yet they may ultimately be deployed in military operations or the defense industry,” Linko explained. “If a product has potential applications in both fields, it is considered dual-use. Therefore, European Union countries closely regulate where and to whom such goods are exported, in order to prevent them from falling into the hands of militarily dangerous states or terrorist organizations.”

Dual-use goods, as well as items specifically designed for military purposes, fall under the category of strategic goods. The export of these items is regulated under EU Regulation 2021/821 and supervised.

Therefore, if a technology company and startup works with advanced technology, electronics, or software and plans to engage in international cooperation, it is strongly recommended to verify in advance whether any of its products fall under the category of dual-use items. “Applying for an export license at the appropriate stage not only ensures compliance but also protects both the company’s interests and national security,” said Vladislav Linko.

Export licenses are mandatory when a product is included in the list of military goods — in such cases, authorization is required for both import and export. For dual-use items, a license is needed for both export and transit operations. The license requirement also applies to digital transfers - for example, if you are sending sensitive software or technological information via email.

“Even when a product or technology is not explicitly listed in any registry, national authorities may still designate it as strategic or linked to a risk of human rights violations,” Linko added. “In such instances, a special license may be required for export, import, or transit.”

The procedures for obtaining an export license may vary from country to country. Hedman`s role is to help make sure weather product needs a special license and properly prepare and submit the necessary applications and documentation.

In Estonia, licenses are issued by the Strategic Goods Commission, which operates under the Ministry of Foreign Affairs. Applications for procuring the license are submitted through an electronic platform Stratlink with needed documentation. When submitting the application, a state fee of 13 euros must be paid. The Commission has 30 working days to process the application after receiving all the necessary documentation.

Hedman Partners is a law firm specializing in business and corporate law supports its clients in raising investments, organizing shareholder and ownership relationships, technology law, mergers and acquisitions, cross-border movements of companies, IT law, and data protection,  intellectual property matters and in dispute resolution.