Außenwirtschaftsgesetz

The Außenwirtschaftsgesetz (AWG) is a German federal law that governs foreign trade and payments, including export controls, import and export regulations, and sanctions. It provides the legal framework for restricting or prohibiting transactions that could threaten Germany’s or international security, and it implements relevant rules at the national level in alignment with European Union and United Nations norms.

The scope of the AWG covers the export, re-export, transit, transit of technology, services and software, as well as related financial transactions. It also addresses the handling of dual-use goods, which have civil and military applications, and covers licensing requirements, end-use checks, and restrictions on investments or services that could affect security or foreign policy interests.

Licensing and enforcement are central elements. The Federal Office for Economic Affairs and Export Control (BAFA) is the main licensing authority issuing permits for exports, brokering, and other controlled activities. Licenses can be individual, general, or project-specific, and applicants must provide information on end-use and end-user. Violations of AWG provisions can entail administrative fines, criminal penalties, and asset freezes, with enforcement carried out by BAFA and other authorities in cooperation with customs and police.

Sanctions and trade restrictions form a major portion of the AWG’s purpose. The law authorizes the implementation of EU and UN sanctions, prohibiting or restricting transactions with sanctioned states, entities, or persons. This includes embargoes, asset freezes, and licensing controls designed to uphold international obligations.

The AWG works together with the Außenwirtschaftsverordnung (AWV) and other EU regulations. It is administered under the auspices of the Federal Ministry for Economic Affairs and Climate Action and the BAFA, with collaboration from customs authorities to monitor compliance and enforcement.