GERMANY Law and Practice Contributed by: Bettina Mertgen, Felix Siebler, Michael Herold and Sebastian Faust, GvW Graf von Westphalen
GvW Graf von Westphalen Ulmenstraße 23-25 60325 Frankfurt Germany Tel: +49 69 707 970 236 Web: www.gvw.com
1. Overview of the Defence Regulatory Framework 1.1 Principal Legislation and Regulatory Framework Germany’s defence sector is primarily governed by the War Weapons Control Act ( Kriegswaffenkontrollgesetz – KrWaffKontrG), which regulates the manufacture, acquisition, transfer, transport, import and export of war weapons and implements Article 26 of the Ger - man Basic Law ( Grundgesetz – GG). In addition, the Foreign Trade and Payments Act ( Außenwirtschaftsgesetz – AWG) and the Foreign Trade and Payments Ordinance ( Außenwirtschaftsver- ordnung – AWV) form the core export-control frame - work for military and dual-use items. The EU Dual- Use Regulation (EU) 2021/821 also applies directly in Germany and governs exports of dual-use goods and technologies. Secondary legislation includes the Second Ordinance Implementing the War Weapons Control Act and the Ordinance on General Licences under the War Weap - ons Control Act, which establish licensing procedures and general authorisations. Defence procurement is regulated through Germa - ny’s public procurement framework, particularly the Act Against Restraints of Competition ( Gesetz gegen Wettbewerbsbeschränkungen – GWB, or “Competi - tion Act”) and related procurement regulations imple - menting EU defence procurement rules. Key regulatory authorities are the Federal Ministry for Economic Affairs and Energy (BMWE, formerly BMWK) and the Federal Office for Economic Affairs and Export Control (BAFA).
1.2 Competent Authorities In Germany, the Federal Ministry for Economic Affairs and Energy oversees defence export controls and for - eign investment screening, while the Federal Office for Economic Affairs and Export Control acts as the main licensing and enforcement authority for exports of military and dual-use goods and sanctions-related trade restrictions. The Federal Ministry of Defence (BMVg) is responsi - ble for defence policy and military capability planning, and its procurement agencies, BAAINBw (responsible for services and goods) and BAIUDBw (responsible for infrastructure), manage defence procurement and equipment acquisition. The Federal Foreign Office (AA) advises on foreign- policy and security considerations, while the German Customs Administration (Zoll) enforces export-control and sanctions rules at the border. These bodies co-operate closely, particularly on export licensing, sanctions implementation and for - eign investment reviews involving national security interests. 1.3 Definition of “Defence” and “Dual-Use” For German export-control and defence regulations, military (defence) goods are generally defined as the items listed in Part I, Section A of the Export List ( Aus- fuhrliste ) and, for the most sensitive categories, as “war weapons” ( Kriegswaffen ) under the War Weap - ons Control Act. These include weapons, ammunition, military equipment, military software and technology, as well as related components and accessories. Dual-use items are goods, software or technology that can be used for both civilian and military purposes.
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