Which product categories are generally considered dual-use goods? (Select Two.)

Dual-use goods are items, including software and technology, that can be used for both civilian and military purposes. Aerospace and propulsion components, such as engines or navigation systems, can be used in commercial aircraft or repurposed for military drones and missiles. Similarly, advanced electronics, like microprocessors, integrated circuits, and sensors, are fundamental to everyday consumer products but are also critical for military guidance systems, communications, and weapons manufacturing. International export control regimes, such as the Wassenaar Arrangement, heavily regulate these categories to prevent their diversion for military or proliferative activities.

B. Luxury goods: These are controlled to target the wealth and lifestyle of sanctioned elites, not due to a direct military application.

D. Precious metals and gems: These are primarily controlled to prevent sanctions evasion through value transfer and to disrupt financing for illicit activities.

E. Food and agriculture: These are considered humanitarian goods and are typically exempt from sanctions to avoid harming civilian populations.

1. ACAMS Certified Global Sanctions Specialist (CGSS) Study Guide, 6th Edition. Chapter 4, "Elements of a Sanctions Compliance Program," discusses export controls and identifies dual-use goods as a key risk area, frequently citing technology, aerospace, and electronics as primary examples of controlled categories.

2. European Union. (2021). Regulation (EU) 2021/821 of the European Parliament and of the Council. Official Journal of the European Union, L 206/1. Annex I lists the common EU list of dual-use items, which are categorized into ten groups. Category 3 is "Electronics," and Category 9 is "Aerospace and Propulsion."

3. U.S. Department of Commerce, Bureau of Industry and Security (BIS). The Commerce Control List (CCL), Supplement No. 1 to Part 774 of the Export Administration Regulations (EAR). The CCL categorizes controlled items, with Category 3 covering "Electronics" and Category 9 covering "Aerospace and Propulsion," confirming their status as regulated dual-use goods.

4. King's College London. Courseware for "Non-Proliferation and International Security." Modules on export controls explicitly define dual-use goods and use the aerospace, nuclear, and advanced electronics sectors as principal case studies for control regimes.