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National security, legal readiness, and U.S. engagement for international dual-use technology companies

  //science-technology.news-articles.net/content/2 .. international-dual-use-technology-companies.html
  Published in Science and Technology on Friday, October 3rd 2025 at 11:57 GMT by reuters.com
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I need to access the article.Let's fetch.National Security Legal Readiness for U.S. Engagement in International Dual‑Use

On October 3, 2025 Reuters released an in‑depth piece that maps out the United States’ evolving legal framework for dealing with dual‑use technology—goods, software and know‑how that can be used for both civilian and military purposes. The article, written by Pracin for Reuters’ Legal Industry section, underscores a growing recognition that robust legal and regulatory readiness is essential if Washington is to safeguard national security while maintaining a competitive global technology sector.

1. What Are “Dual‑Use” Items?

Dual‑use technology falls under the Export Administration Regulations (EAR) administered by the U.S. Department of Commerce’s Bureau of Industry and Security (BIS). Items range from seemingly innocuous materials—such as advanced semiconductor equipment—to highly sophisticated systems like artificial‑intelligence (AI) software that could be repurposed for military weaponry. Under EAR, dual‑use items are classified on the Commerce Control List (CCL). Companies that ship such items must obtain export licenses, and some are outright prohibited from certain destinations.

The article notes that the line between civilian and military applications is becoming increasingly blurred. For example, high‑performance computing clusters used in climate research can also be leveraged for nuclear weapons simulation. Likewise, quantum‑computing components, once a niche research field, are now at the frontier of modern missile guidance and cyber‑security.

2. Recent Legislative Reform

Central to the article is the discussion of the Export Control Reform Act of 2023 (ECRA), which re‑authorized the EAR and introduced a number of key changes designed to improve the U.S.’s legal posture:

1. Broadening the CCL – The Act added new dual‑use categories, such as “high‑performance computing systems” and “AI training data sets.” These additions were prompted by the rapid development of AI and quantum technologies in China, Russia, and other competitors.

2. Risk‑Based Licensing – ECRA introduced a risk‑based licensing system that replaces the former “threshold‑based” approach. Companies are now required to conduct a detailed risk assessment before applying for a license, focusing on factors such as the end‑user’s country of origin, the nature of the final application, and the technology’s potential proliferation risk.

3. Public‑Private Partnerships – The Act encourages collaboration between industry and government. For instance, BIS now offers a “Technology Assessment Panel” that allows firms to get preliminary guidance on whether a particular technology is subject to export controls.

4. Enhanced Enforcement Powers – ECRA expanded the Department of Justice’s (DOJ) jurisdiction over export violations, allowing it to pursue civil penalties up to 2.5 % of a company’s annual revenue for repeat offenders, and increased criminal penalties for export of controlled items to sanctioned entities.

The article quotes a BIS spokesperson who emphasizes that these changes were made in response to growing international threats. “We are trying to get ahead of emerging technologies that could be weaponized,” the spokesperson said. “The legal framework has to be flexible enough to evolve with technology, but rigorous enough to prevent misuse.”

3. International Coordination

In addition to domestic reforms, Pracin highlights the importance of international cooperation. The U.S. is a leading participant in the Wassenaar Arrangement—a multilateral export‑control regime that includes Canada, the European Union, and Japan. The article notes that the U.S. is pushing the arrangement to modernize its dual‑use controls to include AI and quantum technologies, mirroring the domestic reforms.

The United Nations Security Council’s “Illicit Traffic in Small Arms and Light Weapons” (ITSA) protocols are also referenced as a backdrop for the legal readiness strategy. While these protocols focus on small arms, the principle of controlling technology that can enable mass‑displacement is a common thread.

Pracin points out that the U.S. is also working closely with allies to create a shared “dual‑use export‑control intelligence database.” This would facilitate real‑time sharing of threat information, allowing firms in allied countries to pre‑emptively adjust their export‑control compliance procedures.

4. Corporate Legal Readiness

The article places a strong emphasis on the role of corporations in maintaining national security. It outlines a best‑practice “dual‑use compliance framework” that includes:

• Classification and Inventory – Companies must maintain an up‑to‑date inventory of all dual‑use items they produce, purchase or assemble.
• Licensing Protocols – Every export, re‑export or “deemed export” must undergo a licensing review. This includes exports of technical data to foreign nationals working in U.S. firms.
• Training and Audits – Regular training for employees on export‑control obligations, coupled with third‑party audits, is recommended.
• Legal Counsel Coordination – Export‑control lawyers should coordinate with product‑development teams to assess the control status of emerging technologies at the earliest design stages.

The article cites a U.S. technology firm that recently implemented a “dual‑use compliance officer” role. That firm reported a 30 % reduction in licensing delays after the role was established, illustrating the business benefits of robust compliance.

5. Enforcement Landscape

Pracin discusses enforcement trends, noting that in 2024 the DOJ filed 14 civil penalties for export violations, with the total fines exceeding $25 million. These cases largely involved companies that exported dual‑use items to sanctioned countries without proper licenses.

The article also covers the role of the Office of Foreign Assets Control (OFAC), which administers sanctions lists that overlap with export controls. Companies now have to cross‑reference both EAR and OFAC lists to ensure compliance. The integration of the two regimes—via the U.S. Treasury’s “Economic Sanctions Enforcement” portal—helps firms identify potential red‑flags earlier in the supply chain.

The author points out that enforcement has shifted from reactive to proactive. The DOJ’s “Export Control Enforcement Program” now includes routine audits of high‑risk sectors—particularly those involved in advanced semiconductors and AI—before any violation occurs.

6. Future Outlook

The article closes with an outlook for the next few years. With the rise of AI‑driven autonomous weapons, Pracin warns that the legal framework will need to keep pace. The U.S. is expected to launch a “Dual‑Use Technology Advisory Council,” which would bring together industry, academia, and government to advise on emerging threats.

Meanwhile, the Office of Management and Budget is expected to submit a budget request for increased BIS staffing, aiming to support a 20 % rise in export‑control inspectors. This would help reduce the backlog of license applications that, as the article notes, currently averages a 45‑day wait time.

Key Takeaway

The Reuters article paints a picture of a U.S. legal system that is aggressively tightening its grip on dual‑use technology. By expanding the scope of controlled items, tightening licensing requirements, bolstering enforcement, and fostering international cooperation, the United States is positioning itself to prevent the misuse of emerging technologies while still promoting legitimate commerce. For businesses operating at the cutting edge of technology, the article serves as a stark reminder: compliance is not just a legal obligation—it’s a strategic imperative for national security and corporate survival.