BREXIT: From Transfer Control to Export Control

French Order no. 2020-1590 of December 16, 2020 authorizes the continued supply of defense-related products and space equipment to the United Kingdom.

The Order provides that individual and global licenses for the transfer of defense-related products issued prior to December 31, 2020 regarding flows to the UK – under the procedures applicable to intra-EU flows – are, as of January 1, 2021, deemed to be global licenses and individual export licenses until their term, as provided for in the provisions governing exports to non-EU countries.

Similarly, the prior authorizations required for transfers from France to other EU Member States for certain listed items are now deemed to be valid for UK recipients, whether as global licenses or individual licenses, as provided for in the French Defense Code governing exports to non-EU countries.

This transformation does not constitute a deterioration of the control exercised over these sensitive products (both adoption procedures and ex-post control being identical with respect to transfer and export licenses), but has made it possible to avoid a detrimental disruption of trade regarding strategic flows with the United Kingdom.