From a recreational item to military goods: authorisation requirements for drones

The war in Ukraine demonstrates just how important drones have become in modern warfare. What was regarded primarily as a recreational item just a few years ago is now a tactically crucial tool on the battlefield. Manufacturers and exporters of drones also used for military purposes may sometimes face complex legal issues.

Drones may be subject to regulation under German and European law

The line between using civilian drones and deploying them in warfare is blurred, and the rapid technological advancement of drones is only reflected in legislation — if at all — with a considerable delay. In addition to use of small, inexpensive drones for reconnaissance, drones are being used increasingly to carry weapons or intercept other drones, particularly as it is significantly cheaper than deploying traditional air defence systems. This development is leading to (temporary) legal uncertainty and increasing complexity in the classification of the relevant goods and the associated authorisation requirements. The competent authorities are increasingly issuing guidelines and fact sheets to provide assistance, and more are expected shortly. Under certain circumstances, drones can be

• dual-use goods
• military goods
• war weapons

and are subject to various authorisation requirements.

Drones can be dual use goods and may be subject to European Dual-Use Regulation

Dual-use goods, i.e. those that can be used for both civilian and military purposes, are primarily regulated at EU level by the European Dual-Use Regulation (EU 2021/821, Dual-Use Regulation). It is directly applicable in all Member States; Annex I of the Dual-Use Regulation contains a list of goods, including software and technology (hereinafter "goods"), which are considered to be dual-use. Drones are often dual-use goods, as they can be used for civilian purposes, such as photography, agriculture or logistics, and military purposes, such as reconnaissance or armament. Even if goods are not listed in the Dual-Use Regulation, they may still be subject to authorisation under the "catch-all provision". This is the when the exporter knows, or ought to know, that goods are intended for military purposes in a country subject to an embargo, are to be used in connection with weapons of mass destruction or nuclear activities in certain countries, or are to be used for digital surveillance in connection with human rights violations.

Military goods regulated at national level and in accordance with the Common Military List of the European Union

Military goods refer to goods that are primarily or exclusively intended for military use. They are regulated by the German Foreign Trade and Payments Act (AWG) and the German Foreign Trade and Payments Ordinance (AWV) and are listed in full in the AWV’s export list. Regulation therefore takes place at national level on the basis of the Common Military List of the European Union. Drones are often classified as "unmanned aerial vehicles" if they are specifically designed or modified for military purposes. This is the case where an item has already been designed, planned or constructed for a purpose that goes beyond civilian use. Neither the recipient nor the intended use is decisive for classification; only the technical design features are. However, the Federal Office for Economic Affairs and Export Control (BAFA) often infers a product’s development from its first use, and is therefore less guided by objective technical characteristics.

Drones can be used as war weapons

War weapons constitute a further category of regulated goods and are regarded as specific military goods, as all war weapons are also military goods. The difference between war weapons and military goods is that war weapons refer only to weapons used directly in warfare and designed to destroy property or kill people, whereas military good is a broader term that also includes, for example, vehicles and protective gear.

War weapons are subject to more stringent restrictions than other military goods. They are governed by the national German War Weapons Control Act (KrWaffKontrG). The German War Weapons Control Act came into force in its original form as early as 1961 and now only reflects current technological advances to a limited extent. This is particularly evident with drones. Although the Federal Ministry for Economic Affairs and Energy (BMWE) has announced that the list of war weapons will be revised, a specific interpretation of that list is still required at present in order to classify drones. Although drones and their components are not explicitly mentioned in the list of war weapons, they can be classified as "other missiles". According to the explanatory notes on the list of war weapons, they also include combat drones capable of causing destruction, as well as their separately listed components, such as warheads, fuses and launchers.

To examine drones as war weapons in greater detail, BMWE published the "Guidance Document on the Classification of Loitering Munitions and Drones as War Weapons" at the end of 2025, which provides guidance on the classification of war weapons. Accordingly, drones designed to be armed and fire weapons can be classified as war weapons. This also applies to loitering munition and parts thereof that have been designed or programmed to track and attack targets. Inceptor drones, i.e. drones designed to destroy other drones using purely kinetic force, can be regarded as war weapons.

Competent authorities can assist with classification of goods

Given the technical complexity of the goods in question, it is sometimes difficult to clearly classify and distinguish between dual-use goods, military goods and war weapons. It requires knowledge of the legal criteria as well as a technical understanding and the ability to apply them appropriately.

By submitting a goods enquiry, requesting information on the list of goods, or simply using the contact form, companies dealing with dual-use goods or military goods can obtain a binding statement from BAFA, which is responsible for these goods, as to whether a particular item is classified as a dual-use good or military good, and can also enquire about its exact listing. A "zero notice" is a confirmation from BAFA that a specific item is not subject to any export controls. It can also be requested and is sometimes required by the customs authorities when exporting sensitive goods.

Even if BAFA ensures fair procedures, decisions are not always transparent and errors cannot be ruled out. In such cases, administrative decisions – such as the rejection of an export application – can be challenged in court.

It is also possible to obtain an assessment from the competent authority regarding war weapons. Upon receipt of an informal application, BMWE will assess whether goods qualify as war weapons within the meaning of the German War Weapons Control Act. This is only non-binding information, however. Binding decisions in this area are only issued by courts through declaratory judgments. Given that non-binding notices have no regulatory effect, an action for a declaratory judgment before administrative courts might be considered in this case.

(Authorisation) obligations and application procedures determined by classification of goods

The obligations arising from the classification of goods as dual-use goods, military goods or war weapons are wide-ranging.

An export authorisation may be required if dual-use goods or military goods are exported to third countries outside the European Union. The grounds on which an export authorisation for dual-use goods may be refused are set out in the Dual-Use Regulation and include the international obligations and commitments of the Union and the Member States, obligations arising from sanctions, considerations of national foreign and security policy, and the intended end-use. In the case of military goods, an authorisation will be granted if the transaction does not jeopardise the purpose of the authorisation provision, or does so only to a negligible extent, or if the economic interest in carrying out the transaction outweighs the adverse effect on that purpose.

For dual-use goods and military goods, there are various general authorisations that eliminate the need for individual authorisations, but they only apply to specific goods, countries and recipients. On 20 March 2026, BAFA announced General Authorisation No. 48, specifically regarding the export and transfer of military goods to certain countries for defence purposes which can include drones. This General Authorisation applies to supplying military goods to Bahrain, Qatar, Kuwait, Oman, Saudi Arabia, the United Arab Emirates and Ukraine for defence  The aim of the new General Authorisation is to further simplify, on a risk-based basis and in line with administrative capacity, the rapid delivery of defence equipment for air and maritime defence to the Gulf States and Ukraine. The General Authorisation is initially valid until 15 September 2026 and requires registration and monthly reporting.

If a General Authorisation does not apply, an application for an export authorisation must be submitted to BAFA via the ELAN-K2 online portal, which requires that an export control officer be appointed. When assessing whether a product is eligible for authorisation, BAFA has some leeway and takes into account not only the technical details and functions of the product but also the country of end-use. In particularly sensitive political cases, BAFA consults other ministries, which can prolong the authorisation process.

War weapons subject to numerous authorisation requirements

Under the German War Weapons Control Act, an authorisation is required for the manufacture, placing on the market, transport, transfer or acquisition of war weapons, as well as for the seizure of such weapons and for transactions with foreign countries. However, BMWE is responsible for issuing the authorisations, not BAFA. Applications for these authorisations can also be submitted via the government’s online portal. The transport is based solely on the act of transport and does not constitute an export within the meaning of the German Foreign Trade and Payments Act (AWG). Consequently, exports within the meaning of export legislation generally have to be authorised by BMWE and BAFA. BAFA issued General Authorisation No. 47 on 30 March 2026 to avoid the need for this additional authorisation. General Authorisation No. 47 applies to goods that are listed in the list of war weapons and in Part I, Section A of the Export List, and for the temporary or permanent export or transfer of which an authorisation has been granted under the German War Weapons Control Act since 1 April 2026. The designation of General Authorisation No. 47 as a supplementary authorisation makes it clear that there is a causal link between the authorisation granted by BMWE under the German War Weapons Control Act and the new procedural simplification in the form of General Authorisation No. 47.

In addition, the handling of military weapons is subject to further obligations, including maintenance of a register of military weapons and reporting requirements, which are now carried out digitally via the ELAN-K2 online portal. Premises where military weapons are stored must be equipped with security systems and access controls. An overview of these obligations is due to be set out in more detail shortly in a guidance note from BMWE.

Information to be provided to the authorities should be as comprehensive as possible

It is important to provide the relevant authorities with as much information and as many technical details as possible to avoid the need for further enquiries and ensure that the application is processed promptly, regardless of the type of application and the specific goods in question. It should also be borne in mind that, as part of the assessment, BAFA or BMWE regularly take into account foreign and security policy considerations in addition to the purely goods-related classification, which may affect the actual processing time. In principle, the competent authorities have a margin of discretion in their decision-making, which must strike a balance between private interests and the competitiveness of industry on the one hand, and public interests — such as security policy and respect for human rights — on the other.

Failure to comply with regulatory requirements may result in significant risks of criminal penalties and fines

Failure to comply with the provisions of foreign trade law and arms control legislation can have significant legal and economic consequences. It is always important to examine the legal circumstances in each specific case carefully. It is advisable to introduce a compliance system to implement processes and minimise risks. Such a system should, in particular, include clear lines of responsibility, standardised classification and authorisation processes, internal control mechanisms, training for relevant staff, and an effective documentation and escalation procedure.

Intentional breaches of key export control obligations, in particular existing authorisation requirements for dual-use goods and military goods, as well as embargo and sanctions regulations, are punishable by law and may result in prison sentences of up to 15 years. Negligent infringements, on the other hand, generally constitute administrative offences and may be punishable by fines of up to EUR 500,000.

The German War Weapons Control Act contains its own sanctions. They concern, in particular, the unauthorised handling of military weapons, the manufacture or trade in military weapons, and the promotion of such activities. Here, too, there is a risk of substantial prison sentences. Any breach of reporting obligations or other obligations constitutes an administrative offence, punishable by fines of up to EUR 5,000.

Another particularly relevant aspect in this context is the personal liability of directors and senior executives. They can be held liable under criminal law and for administrative offences if they fail to comply with their organisational and supervisory duties. A corporate fine can also be imposed on the company under section 30 German Administrative Offences Act (OWiG).

Understanding regulatory requirements more important than ever

Current geopolitical developments show just how quickly civilian goods can become key security technology. Companies that develop and manufacture drones often find themselves caught between the need for freedom of innovation, economic opportunities and security responsibilities. Accurate product classification, a robust compliance framework and a structured authorisation process are not just a legal requirement, but also a key component of responsible corporate governance. The use of General Authorisations can also streamline procedures and save valuable time.