GERMANY Law and Practice Contributed by: Bettina Mertgen, Felix Siebler, Michael Herold and Sebastian Faust, GvW Graf von Westphalen
Examples include certain chemicals, electronics, machine tools, telecommunications equipment and related technology. Their regulation is primarily gov - erned by the EU Dual-Use Regulation, which applies directly in Germany. The key distinction is that military goods are specifi - cally designed or listed for military use, whereas dual- use items have legitimate civilian applications but may also contribute to military capabilities or weapons programmes. Military items are generally controlled under the Export List and war-weapons legislation, while dual-use items are controlled under the EU Dual- Use Regulation and related provisions of the Foreign Trade and Payments Act and Foreign Trade and Pay - ments Ordinance. 1.4 International Frameworks and Treaty Obligations Germany’s defence regulatory framework is closely aligned with and implements a range of international and supranational obligations. Export-control rules under the Foreign Trade and Payments Act, the For - eign Trade and Payments Ordinance and the EU Dual- Use Regulation directly implement EU requirements and reflect commitments arising from international export-control regimes. Germany also participates in the Wassenaar Arrange - ment. Its controls on military and dual-use goods are based on internationally agreed control lists and standards developed through that framework and other multilateral export-control regimes. In addition, Germany implements UN Security Council sanctions and arms embargoes as well as EU sanc - tions measures through its national export-control system. The Federal Office for Economic Affairs and Export Control expressly notes that German export controls are designed to give effect to binding inter - national obligations and decisions. As an EU and NATO member, Germany’s defence procurement and security framework is also shaped by EU defence procurement legislation and broader NATO commitments, although NATO obligations are generally implemented through national policy and
defence planning rather than specific export-control statutes. Overall, German defence regulation is heavily influ - enced by international and European frameworks, with domestic legislation serving largely as the mechanism through which those obligations are implemented and enforced. 2. Procurement and Government Contracts in the Defence Sector 2.1 Defence Procurement Legislation Germany maintains a dedicated procurement regime for defence and sensitive security contracts, princi - pally governed by Part 4 of the Competition Act, the Ordinance on the Award of Public Contracts in the Defence and Security Sectors (VSVgV) and, for con - struction works, the Construction Contract Procedures for defence and security (VOB/A-VS) – implementing the relevant EU Directives. The regime covers military and classified equipment, related supplies, works and services across the full life cycle, from development and acquisition to maintenance, upgrades and in- service support. The regime has now been supplemented by the Bundeswehr Procurement Acceleration Act ( Bun- deswehrbeschaffungsbeschleunigungsgesetz – BwBBG), which entered into force on 1 July 2026 and introduces temporary procedural flexibilities for the requirements of the German Armed Forces ( Bun- deswehr ), including streamlined market consultations, innovation-oriented specifications and co-operative procurement. Specific exemptions apply to intelligence activi - ties, qualifying multinational programmes, certain government-to-government contracts and specified R&D services. Section 107 (2) of the Competition Act, together with Article 346 of the Treaty on the Func - tioning of the European Union (TFEU), permits pro - curement rules to be disapplied where necessary to protect an essential security interest. Article 346, TFEU is not a general defence exemp - tion. It must be interpreted strictly: the contracting
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