G/TBT/N/EST/13  
 
6 March 2018  
(18-1383) Page: 1/7 
Committee on Technical Barriers to Trade  Original: English  
 
  
NOTIFICATION  
The following notification is being circulated in accordance with Article 10.6  
 
1. Notifying Member: ESTONIA   
If applicable, name of local government involved (Article 3.2 and 7.2):   
2. Agency responsible:  
Name and address (including telephone and fax numbers, email and website 
addresses, if available) of agency or authority designated to handle comments 
regarding the notification shall be indicated if different from above:   
Ministry of Economic Affairs and Communications  
www.mkm.ee , el.teavitamine@mkm.ee  
telephone: + 372 625 6405, Fax: + 372 631 3029  
3. Notified under Article 2.9.2 [ X], 2.10.1 [   ], 5.6.2 [   ], 5.7.1 [   ], other:  
4. Products covered (HS or CCCN where applicable, otherwise national tariff 
heading. ICS numbers may be provided in addition, where applicable): Military 
weapons, military ammunition, munition  
5. Title, number of pages and language(s) of the notified document: Amendments Act 
of Weapons Act, Strategic Good Act, Explosives Act and Other Acts (43 page(s), in 
Estonian)    
6. Description of content:  
1. The draft amendment regulates the classification of weapons in the Weapons Act and 
introduces new terms (service weapon, military weapon, training weapon). In 
addition, the object and purpose of the Weapons Act is modified. The Act has hitherto 
mostly regulated the handling and supervision of weapons in civil use. The 
amendment extends the scope of the Weapons Act to include the handling of any 
weapons.  
2. The draft amendment changes the definition of a 'firearm'. A firearm is any weapon or 
device intended or modifiable for expelling a directed projectile by means of the gas 
pressure resulting from gunpowder gases, combustion gases or explosive gases. The 
definition has been carried over from Article 1(1) of Directive (EU) 2017/853, although 
the wording has been amended and supplemented for the purposes of this draft Act. 
In general this Directive does not regulate weapons in military use and is limited to 
weapons in civil use, which does not usually include military weapons. The existing 
definition must also be changed as gun powder is not the only method used in military 
weapons to expel a cartridge, shell or missile. The definition must be expanded to 
include military weapons which do not use gun powder to expel a projectile. 
Furthermore, the change is required in order to avoid the use of two identical terms 
with different m eanings in the same Act.  
3. The draft act supplements the list of circumstances precluding the granting of an 
acquisition permit or weapons permit to a natural person and the circumstances under 
which an issuer of permits may refuse to grant an acquisition pe rmit or a weapons G/TBT/N/EST/13  
 
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  permit to a legal person. The objective is to guarantee public order and national 
security.  
4. Regulations for handling military weapons, ammunition and munitions make up the 
bulk of the draft amendment. Firstly, military weapons are classif ied as handguns, 
rocket systems, heavy weapons and other weapons not included under firearms. 
Moreover, the draft amendment defines the term 'munitions'. Munitions, with the 
exception of ammunition, means devices or materials with a military purpose, 
conta ining explosives, pyrotechnical substances, igniting substances or other chemical 
substances with ignition or explosive capacity, which can be used or modified to 
damage or destroy enemy troops or battle technology, for battlefield illumination, for 
smokes creens or for signalling. Examples of munitions are mines, grenades not 
launched from a firearm (i.e. a mortar or grenade launcher), pyrotechnical devices, 
smoke grenades, signal flares, illumination flares, etc. Munitions include ammunition, 
but for the p urposes of this Act, ammunition and munitions are treated separately, as 
military and civilian weapons can use ammunition of the same calibre and storage or 
transportation requirements for ammunition can differ from those of munitions. Mines 
and grenades l aunched from firearms are also classified as ammunition. The term 
'ammunition' has not been defined in the Weapons Act and this draft amendment does 
not define it.  
5. The draft amendment specifies the mandatory requirements for the owners, 
managers, responsib le persons and employees of businesses handling military 
weapons, ammunition for military weapons and munitions. In comparison to regular 
businesses, several restrictions apply. Inter alia, the draft amendment limits 
bankruptcy and enforcement proceedings.  One of the fundamental principles of EU 
contract law is the freedom of establishment, which inter alia means, that a person 
(both physical and legal) is free to do business and can freely choose the form of 
business. Article 16 of the Charter of Fundament al Rights of the EU also clearly 
guarantees the freedom to conduct a business in accordance with Union law and 
national laws and practices. The Treaty on the Functioning of the European Union 
(hereinafter TFEU) places several obligations on Estonia, includ ing the absence of any 
legal measures which may obstruct the free movement of persons, services and 
capital within the EU internal market. However, these prohibitions are not absolute. 
According to Article 36, a Member State may impose prohibitions or rest rictions on 
export, import and transit, if this is required for assuring the state's public policy or 
public security. Such prohibitions or restrictions shall not, however, constitute a 
means of arbitrary discrimination or a disguised restriction on trade between Member 
States. Article 52(1) allows for special treatment of foreign nationals, on the right of 
establishment, on grounds of public policy, public security or public health. Article 
65(1) of the TFEU permits restrictions or prohibitions on the free  movement of capital 
and restrictions on payments between Member States and third countries, in the 
interest of public policy or security. In addition, Article 346(1)(b) allows any Member 
State to take such measures as it considers necessary for the protec tion of the 
essential interests of its security which relate to the production of or trade in arms, 
munitions and war material. Such measures may not adversely affect the conditions of 
competition in the EU internal market regarding products which are not intended for 
specifically military purposes. Under the amended draft act, private legal persons have 
the right to handle military weapons and their essential parts, ammunition and 
munitions. The primary objective of this change is to give Estonian business es the 
chance to compete with other Member State's businesses in intra -EU procurements 
(this is not currently possible, as no authorisation exists for the relevant field). 
Granting this right does not have an adverse effect on the handling of weapons and 
ammunition for civil use by private legal persons, as the relevant regulations are not 
amended (both will exist in parallel). The amended Act specifies the requirements for 
business owners, management (members of the board and supervisory board), 
responsibl e persons (e.g. engineers) and employees with access to the business's 
territory or data, or to persons who can in any other way influence the businesses 
decisions, safety or security. Such requirements have been based on evaluated 
security risks, experien ce in Estonia and other countries. Significant security risks 
have been determined in individuals' characteristics or activities, for which restrictions 
or prohibitions have been established by the draft legislation. In summary, the TFEU 
provides for excep tions which allow the Member States to restrict the defence G/TBT/N/EST/13  
 
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  industry, as it is closely connected to national security and public policy. This means 
that the draft amendment complies with EU law and does not impact business in other 
fields.  
6. The draft amendm ent specifies exceptions for obtaining stocks in a business handling 
military weapons and their ammunition or munitions:  
* Requirements for persons acquiring or having a qualifying holding;  
* Requirements for notification of obtaining stocks or holdings;  
* Requirements for acquisition of a qualifying holding and grounds for prohibiting 
such acquisitions.  
7. The draft amendment specifies exceptions in cases where a business handling military 
weapons, ammunition and munitions defaults. As any business handling m ilitary 
weapons and their ammunition or munitions without the required security measures 
poses a significant national security risk, it is essential that these measures also 
function in case the business defaults. It is not significant if the business's pa yment 
difficulties are temporary or permanent in nature and security measures must always 
be functional, as the business's warehouses may hold military weapons and their 
essential parts or ammunition, munitions or materials related to their manufacture 
(explosives, fuses, etc.). It is therefore essential for the management of a business 
handling military weapons, ammunition or munitions to notify the issuer of 
authorisations of any payment difficulties, whether they are temporary or permanent 
in nature. Thi s notification shall also include a plan for assuring future compliance with 
the requirements specified in this Act. The latter is essential for the issuer of 
authorisations to be aware of the business's plans. It is also important so that the 
issuer of au thorisations can provide recommendations for the business and the 
business is prepared to implement relevant security measures when necessary.  
The draft amendment specifies some significant exceptions to actions taken by the 
assignee in bankruptcy. Most si gnificantly, the assignee in bankruptcy shall ensure 
that any military weapons, ammunition, munitions and essential parts of these in the 
insolvency estate are stored as required and under conditions specified by the 
amended Act. The objective is to ensure  national security, general safety and the 
maintenance of assets. The second significant requirement specifies that an assignee 
in bankruptcy may exclusively sell military weapons and ammunition or munitions 
from the insolvency estate to persons who are le gally permitted to obtain, hold and 
possess military weapons, ammunition or munitions. Likewise, exceptions are 
specified for the transfer of an insolvency estate. Military weapons, ammunition, 
munitions or their essential parts and components can, with th e permission of the 
issuer of authorisations and the Strategic Goods Commission, only be transferred to 
the country's armed forces or other businesses with a permit to handle such products. 
If the transfer is not accomplished within the set term (six month s), the military 
weapons and their essential parts, ammunition, munitions and significant parts must 
be disposed of in accordance with the specified requirements. Secondly, an exception 
is established for transferring a business's stock or shares to the bu siness. In 
bankruptcy and enforcement proceedings, stocks and shares can only be transferred 
to persons who meet the requirements specified for persons acquiring and holding a 
qualifying holding. Military weapons, military ammunition, munitions and their 
essential parts shall not be impounded, sold or otherwise processed in enforcement 
proceedings.  
8. The draft amendment specifies requirements for businesses handling military 
weapons, ammunition or munitions. These include requirements on the business's 
form, management board location, management, responsible persons and employees. 
The draft amendment also introduces mandatory liability insurance.  
A business wishing to handle military weapons and their essential parts, ammunition 
or munitions and essential part s shall be established as either a public limited 
company or a private limited company. The business can also be established in an EU 
Member State, Switzerland or any Contracting Party to the European Economic Area 
Agreement, but must be established as a l egal person equivalent to a public limited 
company or a private limited company. The business must have a share capital of at G/TBT/N/EST/13  
 
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  least EUR 25,000, which must have been paid.  
The business and the business's management board shall be in Estonia and this must 
also be stated in the business's association agreement or governing charter. The 
objective of these requirements is to enhance national supervision over the activities 
of the management and supervisory board. It should be noted that no restrictions are 
estab lished for the residence and nationality of members of the board.  
Requirements are specified for the business's management. Management includes 
members of the management and supervisory board, procurators and any other 
persons regularly fulfilling tasks us ually assigned to members of the board. In 
principle, this means that the business's management cannot have been punished for 
major offences listed in the draft amendment. In other words, the business's 
management must have an impeccable reputation. Additi onal requirements are 
specified for the business's employees. Employees are all physical persons not 
considered management or responsible person(s). Inter alia, employees include the 
business's accountant, secretary and all other office workers, also any s ervice 
providers (e.g. outsourced accounting, cleaning or security services) or subcontractors 
with access to the business's territory or data (inventory, accounting, etc.). The 
business's employee, subcontractor's employee or an employee of another busine ss 
providing services to the business and having access to the business's territory may 
not be:  
1) Punished in a criminal or misdemeanour procedure for a crime in the first degree, 
criminal offence against the state or any offence committed by using explosives, 
pyrotechnical products, ammunition or a firearm, and who's criminal record has 
not been deleted from the criminal records database as specified in the Criminal 
Records Database Act;  
2) A fugitive, a suspected or accused person of any criminal o ffences specified in 
point 1;  
3) A person who is known or assumed to be part of a criminal or terrorist 
organisation or to have committed or planned to commit a terrorist act or is 
related to funding or supporting terrorist activity or money laundering.  
In addition, health requirements are specified for the business's employees. The 
business's liability insurance shall cover any non -contractual and unlawful damages 
caused to third persons.  
9. The draft amendment specifies a separate regulation for the verifica tion of the 
business management and employees' suitability and plausibility check (also known as 
a background check) and the permitted methods for this check. Additionally, while 
processing the authorisation application, any persons having dominant influen ce over 
the legal person's management are determined (the existence of such persons and 
their compliance with the same requirements as specified for the business's 
management).   
The Police and Border Guard Board shall conduct a background check to determin e the 
fitness of a person to obtain qualifying holdings, manage the business or work for a 
business handling military weapons, ammunition or munitions. A background check is 
conducted to determine the conformity of the following:  
* Persons holding qualifyi ng holdings;  
* Management of the business;  
* Employees, subcontractors and service providers of the business and;  
* Responsible persons of the business.  
10. The draft amendment specifies a list of activities that require an authorisation to 
handle military wea pons, ammunition or munitions, the conditions for issuing a 
licence, exceptions for processing the authorisation application and grounds for refusal 
to grant an authorisation.   
An authorisation is required to operate in the following fields:  
* Production o f a military weapon, an essential part of a military weapon or G/TBT/N/EST/13  
 
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  munitions not containing explosives;  
* Repairs or modifications to military weapons as a service;  
* Transport of a military weapon, ammunition or munitions;  
* Production of a vehicle, water craft, aircraft or other product used to install a 
military weapon;  
* Provision of services to store ammunition or munitions;  
* Production of munitions containing ammunition or explosives.  
Authorisations are issued for up to five years. Authorisations shal l not be transferable, 
and the use thereof by another business or person shall be prohibited. An Estonian 
authorisation is also required for businesses already holding an equivalent 
authorisation in another EU Member State. Authorisation is also required f or 
temporary activities.  
For the handling of military weapons, authorisation is issued by the Police and Border 
Guard Board. For the handling of ammunition or munitions, authorisation is issued by 
the Technical Surveillance Authority. The issuing of author isations is coordinated by a 
commission established at the Police and Border Guard Board. The applicant shall pay 
a state fee for processing an authorisation application.  
11. In addition to an authorisation, the business requires an operating licence to handle  
military weapons, ammunition or munitions. The draft amendment specifies the 
requirements for a specific place of operation and regulations for operating licence 
applications and grants.  
Whereas a business's authorisation permits the handling of military weapons, 
ammunition or munitions and is primarily linked to the business's employees or 
owners, an operating licence permits the handling of military weapons, ammunition or 
munitions in a specific location and is linked to a specific place of operation. Th e place 
of operation shall be selected on the basis of safety requirements and security 
considerations. An operating licence is granted to a business handling military 
weapons, if:  
* The place of operation and operational conditions meet the requirements 
specified by law;  
* The implemented safety measures ensure the safety and security of persons and 
environment;  
* The implemented security measures ensure public policy, constitutional order and 
security;  
* The place of operation does not increase risks to n ational security;  
* The use of a building or parts thereof meets the building's intended use.  
Operating licences for a place of operation used for military weapons are granted by 
the Police and Border Guard Board. Operating licences for a place of operatio n used 
for storage or production services including ammunition or munitions are granted by 
the Technical Surveillance Authority. The operating licence and authorisation enter 
into force at the same time.  
12. The draft amendment specifies the permitted methods for handling military weapons, 
ammunition and munitions as follows:  
* Who can use which method of handling, from acquisition to disposal;  
* Prohibitions, e.g. the prohibition to restore military weapons rendered incapable 
of firing to working order;  
* The minister responsible for the area (primarily the Minister of Defence) is 
empowered to establish the requirements for each method of handling.  
13. The draft amendment changes the Strategic Goods Act in three principal categories: 
changes linked to demilitarisat ion, changes linked to handling military goods (including 
import and export of military goods to and from Estonia) and changes linked to goods G/TBT/N/EST/13  
 
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  subject to international sanctions.  
The most significant changes add regulations for the demilitarisation of mili tary goods. 
The new regulations specify the military goods subject to demilitarisation, including 
goods that can be imported into Estonia after demilitarisation, the location for legally 
required inspections of allegedly demilitarised military goods, the a uthority 
determining conformance and issuing a conformity certificate. The Defence Forces of 
Estonia are responsible for the latter.  
The second significant change expands the authority of the Strategic Goods 
Commission so that the commission can discuss an d decide on issues related to the 
transport of goods subject to international sanctions and associated services and 
transactions. These powers currently lie with the Ministry of Finance, but the amended 
Act transfers them to the Strategic Goods Commission.  
7. Objective and rationale, including the nature of urgent problems where 
applicable: Estonian defence businesses are in a position to produce numerous defence 
industry products and are notably prominent as developers and producers of so -called 
'smart solutions'. However, from the perspective of Estonian national defence, it is of 
critical importance that the capability to produce military weapons, ammunition and 
munitions and the capacity to provide maintenance for military weapons is also maintained 
by businesses located in Estonia. Current Estonian legislation does not allow for this or 
allows for it with significant restrictions. On the one hand, creating the opportunity for 
Estonian businesses to handle military weapons and munitions gives the Defen ce Forces a 
more sustainable method for managing military equipment and, on the other hand, 
Estonian defence businesses can expand their activity and offer products outside Estonia.  
Current Estonian legislation does not permit private legal persons to:  
1) Handle (including produce, transport, store, etc.) military weapons, ammunition, 
munitions and other military goods;  
2) Provide services to repair or modify military weapons;  
3) Participate in international military goods procurement calls related to milit ary 
weapons, ammunition or munitions;  
4) Provide services for rendering military weapons inactive or demilitarising other 
military goods (e.g. vehicles, planes, ships).  
Additionally, the Strategic Goods Act lacks provisions describing the process of 
demili tarisation to specify the following:  
1) What military goods are permitted for demilitarisation in Estonia and what 
demilitarised goods a private legal person can acquire;  
2) How military goods (e.g. military weapons, motor vehicles designed and produced 
for military use, military water craft, aircraft and other similar goods) are 
demilitarised and what the applicable technical requirements for demilitarisation are;  
3) Who is responsible for inspecting the conformance of allegedly demilitarised goods 
with the technical requirements specified by law;  
4) Who certifies that allegedly demilitarised goods conform to the technical 
requirements of demilitarisation and who issues the relevant conformity certificate.  
The amended Act removes the above -mentioned legal  grey areas and, in summary, the 
implemented requirements can be categorised as follows:  
1) regulating the terms specified in the Weapons Act and partially changing the 
principles for the classification of weapons;  
2) granting authorisations and operating licences to private legal persons, grounds for 
refusing authorisation and other matters related to authorisations and operating 
licences;  
3) the obligation to provide a notification of contracts with customers outside Estonia, 
including contracts by an int ermediary;  G/TBT/N/EST/13  
 
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  4) requirements for handling military weapons, ammunition and munitions, including 
requirements for buildings and a business's territory to ensure the safety and 
security of persons and the surrounding environment;  
5) exceptions for the acquisit ion of stocks or shares in a business producing or handling 
military weapons, ammunition or munitions;  
6) requirements for a business's supervisory board and management members, 
responsible employees and other employees and the requirement for background 
checks;  
7) listing military goods subject to demilitarisation, the technical requirements for 
demilitarisation, the inspection of demilitarised goods and issuing relevant 
certificates, appointing a competent authority for inspecting demilitarised goods and 
issuing a relevant technical conformity certificate;  
8) responsibility and supervision of businesses.  
8. Relevant documents:  -  
9. Proposed date of adoption: June 2018  
Proposed date of entry into force: 1 July 2018  
10. Final date for comments: 60 days from notification  
11. Texts available from: National enquiry point [X] or address, telephone and fax 
numbers and email and website addresses, if available, of other body: