Goods of Strategic Significance – What Does Their Trade Involve?

Goods of strategic significance are a category of products, technologies and services whose trade is subject to special legal regulations due to their importance for state security, public order, foreign policy and the fulfilment of international obligations. These regulations aim to prevent the uncontrolled transfer of sensitive technologies, weapons or specialised know‑how that could be used in a manner contrary to the public interest or the principles of international peace and security.

For businesses, this means that trading in goods of strategic significance – both domestically and across borders – involves a range of administrative obligations, the need to obtain appropriate licences, and continuous oversight by the competent state authorities.

What Are Goods of Strategic significance?

The concept of goods of strategic significance covers goods, technologies, and services. Their foreign trade is subject to special control under national and EU law. In Polish law, the key regulation is the Act of 29 November 2000 on the trade in goods, technologies, and services of strategic importance. Consolidated text: Journal of Laws of 2023, item 1582.

Goods of strategic significance are not limited to conventional weapons. The legislator uses a broad concept. It also includes goods and technologies that, under certain circumstances, may be used for military, repressive, or terrorist purposes.

This category includes in particular:

• weapons, ammunition, and military equipment,
• dual-use goods and technologies,
• specific materials, components, devices, and software,
• technologies in the form of technical documentation, know-how, and digital data,
• services, including technical assistance and brokerage related to the above goods.

The classification of items as a strategic good must depend not only on technical characteristics. It also considers its potential use, final destination, and identity of the recipient.

Goods of Strategic Significance And State Security

Control over goods of strategic significance trade is important element of the state security system. The state supervises exports, imports, transit, and brokerage. This reduces the risk of unauthorised transfers of sensitive technologies. The goal is to prevent misuse that could go against the public interest.

These regulations serve in particular to:

• protect national security,
• prevent the proliferation of weapons of mass destruction,
• fulfil obligations arising from international law,
• support the European Union’s common security policy.

This is why exports and other trade in strategic goods face strict administrative control.

Dual-Use Goods

A specific subcategory of goods of strategic significance consists of dual-use goods. These are goods, technologies, and software for both civilian and military purposes. Rules in this area arise from Regulation (EU) 2021/821 of the European Parliament and of the Council of 20 May 2021. It establishes a Union regime for the control of exports, brokering, technical support, transit, and transfer of dual-use items. (OJ EU L 206, 2021, p. 1).

Dual-use goods include, among others:

• advanced industrial machinery and equipment,
• electronic components and semiconductors,
• IT and telecommunications technologies,
• specialised materials,
• chemical and biological technologies,
• software for processing of sensitive data.

Technical issues related to such goods may also be regulated. This includes repair, testing, technical support and training activities.

In practice, what matters is not only whether a given item appears on control lists. It is also important who the end user is and for what purpose the item is to be used.

Table 1. Goods of strategic significance – Categories

Trade in Strategic Goods – Scope of Control

Trade in strategic goods involves much more than exports outside the European Union. Administrative control concerns a wide range of activities, including:

• exports to third countries,
• intra-EU transfers,
• import of strategic goods,
• transit through the territory of the Republic of Poland,
• commercial brokerage
• providing technical support,
• transfer of technology in intangible form (e.g. electronically).

Often, the obligation to have a relevant permit arises even when the entrepreneur does not have physical contact with the goods.

This applies in particular to the import of armaments and other strategic goods from outside the European Union. Before the transaction, it may be necessary to get an import certificate. It confirms the legality of the import and its compliance with control regulations.

In practice, this applies in particular to imports of dual-use goods from outside the EU. Foreign control authorities may require extra verification. This verification confirms the reliability of the entity. It often takes the form of an end-user statement certification in strategic goods trade.

In certain cases, even intra-EU transfers of strategic goods needs piror authorisation. This also includes dual-use goods.

Table 2. Type of Transaction and Permit Requirement

Licences for Goods of Strategic Significance

International trade in strategic goods generally requires prior authorisation. Usually, it is in the form of a license. In Poland, the minister responsible for economic affairs issues the permits.

Export of armaments and other strategic goods outside the EU requires a separate export licence.

The licensing system includes, among others:

• individual licences,
• global licences,
• general licences.

The choice of licence type depends on the nature of the transaction, the type of goods, and the structure of the trade.

One basic form of regulation is an individual import licence for strategic goods. This licence is required in particular for armaments. It also applies to sensitive technologies imported from third countries.

Internal Compliance System

Entrepreneurs trading in strategic goods have an obligation to implement an internal compliance system. This system should include, in particular:

• identification of goods subject to control,
• procedures for verifying business partners and end users,
• risk analysis related to trade activities,
• documentation of transactions,
• employee training.

Registration And Reporting Obligations

Entities involved in the trade in strategic goods must keep detailed records. They also have to submit periodic reports to the competent administrative authorities. These obligations are continuous and subject to inspection.

Entrepreneurs trading in strategic goods based on individual, global, or general licences may get access to a register of licences. It enables record-keeping and reporting in electronic form.

When using a general licence, the entrepreneur additionally has an obligation to submit annual information on the execution of trade activities to the Minister of Development and Technology.

Goods of Strategic Significance – Sanctions for Violations

Violations of regulations about strategic goods may result in:

• withdrawal or refusal to issue licences,
• imposition of high financial penalties,
• criminal liability of managing persons,
• prohibition on conducting business activities in a specified scope.

Goods of Strategic Significance – Summary

Goods of strategic significance constitute one of the most highly regulated areas of economic activity. Entrepreneurs in this sector face extensive legal, licensing, and organisational obligations. Proper identification of strategic goods is essential for legal security. Effective compliance procedures are equally important.

If your business involves strategic goods, professional analysis is recommended. The same applies if you are unsure whether certain products are subject to export control. Proper preparation helps limit risks and avoid severe sanctions. Contact us today!

Frequently Asked Questions About: Goods of Strategic Significance