Introdcues changes to the review mechanism for foreign investment

On 1 September 2013, changes to the German review mechanism for foreign investment came into effect. The changes, introduced through an amendment to the Foreign Trade and Payments Act (Außenwirtschaftsgesetz or AWG) and the Foreign Trade and Payments Regulation (Außenwirtschaftsverordnung or AWV): reduce the information that generally needs to be submitted to the Ministry in the sector-specific review – a description of the main features of the investment is henceforth sufficient where full documentation was required earlier –; and allow the Ministry to give clearance before the end of the one-month review period set for the sector-specific review. The changes also clarify that an investment in a company that has in the past produced a specific type of cryptographic equipment and is still in the possession of the related technology, even though the company is no longer producing such cryptographic equipment, can be subject to a sector-specific review.

• Type:

  • Entry and establishment (Approval and admission)

• Industry:

  • Not industry specific

• Sources:

  • Gesetze im Internet, Außenwirtschaftsgesetz, http://www.gesetze-im-internet.de/awv_2013/BJNR286500013.html, 02 Aug 2013