Fifth annual report according to operative provision 8 of the European Code of Conduct on Arms Exports
Date: 2003-12-31
Institutions: Council of the European Union
Subjects: European arms policy, activity report, arms trade, code of conduct, export, export monitoring, military equipment

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(Acts adopted pursuant to Title V of the Treaty on European Union)

FIFTH ANNUAL REPORT ACCORDING TO OPERATIVE PROVISION 8 OF THE EUROPEAN
CODE OF CONDUCT ON ARMS EXPORTS

(2003/C 320/01)

INTRODUCTION

The European Union Code of Conduct on Arms Exports
provides
information exchange and
consultation among Member States in order to ensure the
convergence of national export control policies.

for a mechanism of

Decisions by Member States on practices relating to the Code
of Conduct and its application by Member States are recorded
in subsequent annual reports. In the interest of transparency
this year's report, following the precedent set in 2002, has a
Compendium of Agreed Practices attached to it,
listing all
decisions made by the Working Party in a systematic way.
the Compendium gives a
Together with the Code itself
comprehensive view of the Code and the way it is applied by
Member States.

the Code of Conduct and enforcement issues were discussed.
National policies were described and the ways of implementing
the European arms export controls were confronted. Personal
contacts among experts were fostered.

The debate about the possible reinforcement of status of the
Code of Conduct by transformation into Common Position has
intensified following the adoption by the Council of Common
Position 2003/468/CFSP of 23 June 2003 on arms brokering.
This issue was echoed in the explanatory statement of the
Committee on Foreign Affairs, Human Rights and CSFP of the
European Parliament, concerning the Council Fourth Annual
Report of the Code of Conduct, which reiterated the call for
the Code to be legally binding, and considered the possibility
of it being transposed into national
law. The Working Party
examined the legal implications of the possible transformation
of the Code into a Common Position, and is continuing its
debate of the issue.

I. REVIEW OF THE FIFTH YEAR OF IMPLEMENTATION OF THE

CODE

II.

STATE OF PLAY CONCERNING THE IMPLEMENTATION OF
PRIORITY MEASURES IDENTIFIED IN THE FOURTH ANNUAL
REPORT

The European Union Code of Conduct on Arms Exports can
rightly be considered as the most comprehensive international
arms export control regime. The high number of notified
denials and consultations demonstrates the intense dialogue
between Member States, contributing to the convergence of
the policies and procedures on arms exports applicable in the
Member States of the European Union.

The dialogue does not only have an internal dimension
between Member States; it also takes place with non-member
states, through troika meetings organized in the framework of
the political dialogue of the Common Foreign and Security
Policy of the European Union.

In this respect dialogue with the Acceding Countries and
Associated Countries has been intensified, aiming at improving
the Code of Conduct which these
the implementation of
countries have
and
adaptations are required at
the legislative level and in the
training of
the officials concerned. The contribution which
Member States may offer in this respect is crucial.

accepted in principle. Changes

all

On 28 May 2003 the Czech Republic hosted in Prague the
Fourth Informal Experts Meeting on Arms Exports Policies
where issues relating to arms brokering, the implementation of

Harmonisation of national reports

The process of harmonisation of reporting procedures has
been continued, and further steps towards fully comparable
statistical data have been made. It would appear that changes
to national systems concerning the reporting of arms exports
can only be made on the basis of a gradual approach. Progress
has been achieved concerning the list of recipient countries,
which now provides a more comprehensive coverage of the
different destinations.

statistical data,

Concerning the
the Working Party has
examined the situation arising from the inability by some
States to provide data on both licences granted and actual
exports.

Standardisation of end user certificates

Having defined the core elements which should appear on an
end-user certificate when it is required by a Member State, in
connection with the export of items included in the ‘Common
list of military equipment', Member States continued to
examine ways to further standardise such certificates.

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In this respect, the set of compulsory details has been enlarged
and additional elements to be included have been discussed.

Promoting the principles and criteria of the Code among
non-member countries and international organizations

Arms brokering

The Code of Conduct, its aims and procedures are constantly
presented and proposed in the framework of political dialogue
with non-member states and international organizations.

In June 2003,
following final approval by the COARM
Working Party, the Council adopted a Common Position on
the control of arms brokering. The joint commitment is a
formal confirmation of some of the agreed practices listed in
the appendix of the Fourth Annual Report. It also contains
some criteria and definitions which Member States are to
include in their national brokering legislation.

the COARM Working Party has agreed in
In this respect,
principle to share information on denials on an aggregate basis
with selected non-member countries. Each decision in this
respect will be taken on a case-by-case basis,
inter alia any
mutual obligations with the country or countries involved
which might arise are currently under examination.

For brokering activities, a licence or written authorisation
should be obtained from the authorities where activities take
place, and, where required by national legislation, where the
broker is resident or established. Member States will assess
applications for a licence or written authorisation for specific
brokering transactions against the provisions of the European
Union Code of Conduct on Arms Exports.

III.

FURTHER QUESTIONS ADDRESSED BY
WORKING
IMPLEMENTATION OF THE CODE OF CONDUCT

PARTY

IN

CONNECTION WITH

THE

COARM
THE

Member States may also require brokers to obtain a written
they may also establish a
authorisation to act as brokers;
register of arms brokers. Registration or authorisation to act as
a broker would in any case not replace the requirement to
obtain the necessary licence or written authorisation for each
transaction.

The Working Party has further agreed that
the Common
Position should be implemented via the mechanism laid down
in the Code of Conduct. However, not all Member States have
a legislation on brokering already in place;
it has therefore
been suggested that a notification and consultation system
should operate on a mandatory basis only for those Member
States that have the required laws.

Improving the denial circulation system

responsibilities

The circulation of denials is one of the most important ways
through which the aims of Member States' export control
those policies, can be
policies, and the convergence of
intended to clarify
achieved. To this end, a ‘User's guide',
Member States'
in this area, and lead to
enhanced exchange of information, has been agreed by the
Working Party, The Guide will not
replace the Code of
Conduct, but gives guidance on interpreting its operative
provisions with regard to the definition of a denial,
the
notification procedure and the information it should contain,
the revocation of a denial notification, and procedures for
consultations.
is intended for use primarily by licensing
officials.

It

The creation of a central denial database for export licence
denials has been decided, setting up a resource for all Member
States to use, in order to search for specific denials.

EU common list of military equipment

A new and updated version of the EU Common military list
has been approved (the last one dating back to June 2000). In
the new version the same numbering system is used as in the
Wassenaar Arrangement Munitions List. This new version of
the EU list takes into account the Wassenaar Arrangement list.
Member States have agreed that
the
Wassenaar Arrangement Munitions List will not automatically
entail amendment of the EU Common List. The list has been
submitted to the Council and will be published in the ‘C' Series
of the Official Journal.

future amendment of

Implementation of criterion 8 of the Code of Conduct

A survey was initiated focusing on specific guidelines to assist
Member States in applying the criterion, and which Ministries
or Government Agencies are involved in this work. Other
points that are currently being debated concern the indicators
used to carry out the assessment required under criterion 8,
which should take account of both the conditions prevailing in
the importing country and the potential impact of the export,
and the sources of information.

Priority guidelines for the near future

Five years of application of the Code of Conduct have shown
that the fundamental elements of a common approach to the
control of conventional arms exports by the Member States
may be considered to be in place. However, there is still work
to be done in certain areas that have not been addressed in the
past, or where further work is necessary to consolidate and
build on the results achieved.

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The Member States have identified the following priority
guidelines for the near future:

1. Continuation of the process of harmonisation of national
to produce clearer, more transparent

reports in order
summary tables;

5. Provision of practical and technical assistance, when
requested, for the Acceding Countries, in order to ensure
the harmonisation of policies on arms export control and
the full implementation of the Code of Conduct principles
and criteria;

2. Follow up of the implementation of the Common Position
the different

taking into account

on arms brokering,
situations of the national legislation;

6. Full

implementation of the simplified rules contained in
implementation,

the ‘User's Guide' and ensuring its full
including the central denials data base;

3. Consideration of ways to control the electronic transfer of
software and technology associated with equipment on the
Common List;

7. Development of dialague with the European Parliament;

8. Development of relations with third countries which have

aligned themselves with the Code of Conduct;

4. Continuation of the policy of promoting the principles and
criteria of the Code of Conduct among third countries;

9. Review of the Code of Conduct.

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COMPENDIUM OF MEMBER STATES AGREED PRACTICES WITHIN THE FRAMEWORK OF
THE CODE OF CONDUCT

I.

INTRODUCTION

have reached agreement on a set of guidelines for controlling
brokering that could be a basis for national legislation.

the Code of Conduct

Since the adoption of
the
the European Union have agreed on a
Member States of
number of practices relating to the Code and its operative
provisions with a view to clarifying, detailing and sometimes
broadening the scope of the Code's principles and operative
provisions.

in 1998,

Agreed practices have been reported in the annual reports on
the operation of the Code of Conduct by Member States.

and

This compendium gathers them in a systematic way and will
be updated and published on a yearly basis as an annex to the
annual report. Together with the Code itself the compendium
provides a transparent and comprehensive view of the Code of
Conduct
States. The
compendium contains two parts. The first concerns general
practices related to the operation of the Code and the second,
practices linked to specific operative provisions of the Code.
The year of publication in the annual reports is indicated in
brackets. The Compendium does not cover
issues under
discussion or identified as priorities for future discussions.

application by Member

its

II. GENERAL PRACTICES RELATED TO THE OPERATION OF THE

CODE OF CONDUCT

1. Export of equipment for humanitarian purposes

The issue of the desirability of allowing exports of controlled
equipment for humanitarian purposes in circumstances that
might otherwise lead to a denial on the basis of the Code of
Conduct has been addressed by the COARM Working Party. In
post-conflict areas, certain types of controlled equipment can
the civilian
make important contributions to the safety of
population and to economic reconstruction. Member States
have come to the conclusion that such exports are not
inconsistent with the EU Code of Conduct. These exports, like
all others, must be dealt with on a case-by-case basis, taking
full account of the criteria set out in the Code. Member States
will require adequate safeguards against misuse of such exports
and, where appropriate, provisions for
the
equipment (2001).

repatriation of

2. Control of arms brokering activities

Residents and entities within the EU must be prevented from
engaging in arms transfer activities circumventing national,
European Union, United Nations or OSCE embargoes or
export criteria of the EU Code of Conduct on arms exports; it
is also desirable to establish the necessary tools for information
exchange on both licit and illicit brokering activities, thereby
enhancing cooperation within the EU with a view to
preventing and combating arms
trafficking. The controls
should cover the activities of persons and entities that act as
agents,
arranging
in negotiating or
involve the transfer of arms and military
transactions that
equipment
from one foreign country to another. These
measures will also establish a clear framework for legitimate
brokering activities.

traders or brokers

loopholes

to prevent

In order
stemming from different
national approaches and to facilitate the work of Member
States wishing to develop or
elaborate national
regulations, some suggestions for controls on arms brokers
were evaluated and the following conclusions were drawn.

further

acquisition

of property),

For transactions involving the activities of buying and selling
(where the arms or military equipment enter into the legal
possession of the arms-brokering agent) or mediating (without
or written
direct
authorisation should be obtained from the
competent
authorities in the Member State where the brokering activities
take place or where the brokers are resident or
legally
established. Such licence applications should be assessed on a
case-by-case basis against
the EU Code of
Conduct on arms exports.

the criteria of

licence

a

States

should

seriously

Additionally, Member
consider
registering brokers or requiring them to obtain a written
authorisation from the competent authorities of the Member
State where they are resident or established. In the assessment
of an application for authorisation to act as a broker, records
of involvement in illicit activities should be taken into account.
Such a system of registration or authorisation should not be
implying any form of official approval of
construed as
is made clear also by the
brokering activities, a fact
licences
maintenance of a system of
authorising transactions.

individual or global

that

In the context of the implementation of the Code of Conduct,
the issue of arms brokering was raised and was discussed on
several occasions by COARM. In accordance with the intention
expressed in the second annual report, Member States have
continued and deepened their discussions on the procedures
for monitoring arms brokering activities. To this end, they

Legal controls in this important area should be supported by
effective penalties. Member States could exchange information
on legislation, registered brokers and brokers who have a
history of proven involvement in illicit activities and could
continue discussions in the COARM Working Party to further
the assessment of
define,

inter alia, possible criteria for

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applications to register as a broker or obtain authorisation to
act as a broker (2001).

In the framework of COARM, Member States have collected
and discussed relevant data
control of
legislation. Member
brokering in their
States have discussed ways of
strengthening the political
commitment to control arms brokering both among Member
States and in a wider context (2002).

respective national

concerning the

COARM agreed on a draft Common Position on the control of
arms brokering, which was adopted by Council on 23 June
2003 (Common Position 2003/468/CFSP on the control of
arms brokering) (2003).

3.

Intangible transfers of technology

COARM endorsed the importance of considering effective legal
controls on electronic transfers of the software and technology
associated with items on the common list, which is already
done in certain Member States.
It agreed to pursue its
deliberations on this issue, taking into consideration the work
done in the dual-use area (2001).

4. Transit

In those cases where Member States require a licence for
transit or transhipment of any of the goods on the European
Union Common List, the criteria of the European Union Code
of Conduct on arms exports should be duly taken into
consideration by Member States when deciding on applications
for such licences (2002).

5. Production of military goods under licence

arms

Concerned by the consequences of uncontrolled flows and
destabilising accumulations of
and other military
equipment, and the proliferation of the technology and means
to produce such equipment, the EU has adopted measures to
consolidate and strengthen controls on arms exports,
to
promote international cooperation in this area and as a
contribution to the prevention of conflicts. In this respect the
EU recognises the special responsibility of arms exporting
States. Recalling the EU Code of Conduct on arms exports of 8
June 1998, Member States have agreed that, when considering
licence application for the exports of controlled technology or
goods for the purposes of production overseas of equipment
on the Common List of military equipment, account will be
taken of
in the
country of production and of the risk that the finished product
might be diverted or exported to an undesirable end-user
(2002).

the potential use of

the finished product

III.

PRACTICES RELATED TO THE OPERATIVE PROVISIONS OF
THE CODE OF CONDUCT

Operative provision 3
EU Member States will circulate, through diplomatic channels, details
for
licences refused in accordance with the Code of Conduct
of
military equipment together with an explanation of why the licence

has been refused. The details to be notified are set out in the form of
a draft proforma at Annex A. Before any Member State grants a
licence which has been denied by another Member State or States for
an essentially identical transaction within the last three years, it will
first consult the Member State or States which issued the denial(s). If
the Member State nevertheless decides to
following consultations,
grant a licence, it will notify the Member State or States issuing the
denial(s), giving a detailed explanation of its reasoning. The decision
to transfer or deny the transfer of any item of military equipment will
remain at the national discretion of each Member State. A ‘denial of
a licence' is understood to take place when the Member State has
refused to authorise the actual sale or physical export of the item of
military equipment concerned, where a sale would otherwise have
the relevant contract. For these
come about, or the conclusion of
in accordance with national
purposes, a notifiable denial may,
procedures,
include denial of permission to start negotiations or a
negative response to a formal initial enquiry about a specific order.

1. Denial notifications and consultations

A serial number indicating the country of origin and the
number of the denial will be introduced for denial notifications
(accompanied by the Community acronym of
the Member
State concerned and indication of the year).

Denials still subject to appeal under national procedures will
be notified under the Code of Conduct with an indication to
that effect.

Decisions to revoke extant licences will be dealt with in the
same way as refusals of licence applications.

that have been circulated

Denial notifications
in the
international export control regimes will also be circulated as
Code of Conduct denial notifications if relevant to the scope of
the Code.

A period of two to four weeks, from the date the request for
consultations has been received is
the
consultation procedure envisaged in operative paragraph 3 of
the Code, unless a different
time period is agreed upon
between the parties concerned.

established for

When an arms embargo is lifted, denials solely based on the
embargo will expire unless they are renewed by the denying
country within a period of one month on the basis of other
criteria of the Code.

Denial notifications should include the following particulars:

— country of destination;

— full description of

the goods concerned (with their

matching common list number);

— buyer

(specifying whether

is a government
agency, police, army, navy, air force, or paramilitary force,
or whether it concerns a private natural or legal person

the buyer

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if denial

and,
natural or legal person);

is based on criterion 7, the name of the

— description of the end-use;

— reasons for denial

(these should include not only the
number(s) of the criteria, but also the elements on which
the assessment is based);

— date of the denial

(or information on the date when it

takes effect unless it is already in force).

A denial of a licence for a transaction deemed essentially
identical to a transaction already subject to a denial notified by
another Member State should also be notified.

The consulting State should always provide feedback on its
final decision to the notifying State,
irrespective of whether
that decision is to grant or deny a licence.

On denials issued more than three years previously, even
though the obligation to consult ends after three years, as laid
down in the Code of Conduct, such a denial does not expire
but could be the subject of exchanges of information (2000).

2. Dialogue on undercuts

Licensing cases in which denial consultations lead to a positive
decision could be of particular use in enhancing the dialogue
on the interpretation of the criteria of the Code and thus in
promoting convergence in the field of conventional arms
exports.

in

and/or

highlight

Such cases might be based on developments concerning the
question
destination
different
interpretations of
the criteria. Member States deciding an
undercut therefore agree to share, to the extent compatible
with national considerations and on a confidential basis,
information on the undercut decision not only (as specified in
the operative provisions) with the State responsible for the
relevant denial, but, in the context of COARM deliberations,
with all Member States (2001).

3. The concept of ‘Essentially identical transactions'

Discussion within COARM has led to the following common
approach:

Daily operation of the Code's denial mechanism will result in
an accumulation of experience that will provide the basis for a
clear understanding of what
is meant by an ‘essentially
identical transaction'.

facilitated by the

adoption of a
This process will be
comprehensive approach to assessing transactions, and by
initially using a broad interpretation of
the concept of
‘essentially identical'. The resulting consultation will provide
the experience needed to gradually evolve a more precise
definition of the term.

to accelerate the process further,

the consulting
In order
Member State will,
to the extent compatible with national
considerations and on a confidential basis, endeavour to share
in the context of COARM
with other EU Member States,
deliberations,
in which
consultations result in the conclusion that two transactions are
not essentially identical. According to the logic of
the
consultation mechanism,
these cases are not considered as
undercuts (2000).

information on the

occasions

Operative provision 4
EU Member States will keep such denials and consultations
confidential and not to use them for commercial advantage.

1. Confidentiality in consultations

Member States have looked at
the
consultation procedures and, in particular, problems relating to
the necessary confidentiality of such contacts, which should
not, however, thwart the objective of transparency underlying
the Code of Conduct (2000).

the arrangements for

Operative provision 5
EU Member States will work for the early adoption of a common list
of military equipment covered by the Code, based on similar national
and international lists. Until then, the Code will operate on the basis
lists incorporating, where appropriate, elements
of national control
from relevant international lists.

1. The Common List

The common list of military equipment was adopted by the
Council on 13 June 2000 and published in the Official Journal
of 8 July 2000. The Council decided to publicise the list in
accordance with the principle of wide-ranging transparency
underlying the Code.

Member States will now use the common list's references in
denial notifications (with retroactive effect for earlier denial
notifications),
their
clarifying
thereby
information exchanges on these matters.

simplifying

and

to national controls by Member
Denials on items subject
States, but not
included in the above-mentioned list, will
continue to be notified to all Member States. Member States
that do not control these items will inform others.

in the framework of

The common list of military equipment has the status of a
political commitment
the Common
Foreign and Security Policy. In this sense, all Member States
have made a political commitment
their
national legislation enables them to control the export of all
the goods on the list. The common list of military equipment
will act as reference point for Member States' national military
equipment lists, but will not directly replace them.

to ensure that

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Since the list has an evolutionary character, Member States will
continue updating it on a regular basis within the COARM
Working Party.

by a Member State, concerning the export of goods included
in the Common List of military equipment. They also
identified an additional set of elements, which might also be
required in accordance with their national legislation.

Member States have made it known that they would endorse
efforts for any items
from the common list of military
equipment which are not contained in the Wassenaar list, to
be put
forward for consideration within the Wassenaar
Arrangement (2000).

COARM agreed that Presidencies should periodically convene
special meetings (at
level) with a view to
technical expert
deciding on the possible update of the EU common list in
order to take account of modifications of the Wassenaar list
and coordinating Member States' positions and agreeing on
possible
the
Wassenaar list (2002).

common proposals

for modifications

of

COARM agreed on an updated version of the common list to
be published in the ‘C' series of the Official Journal, which
takes into account changes agreed within the Wassennar
Arrangement since publication of the EU Common List in July
2000 (2003).

The following are the minimal details to be set out in an
end-user certificate:

— exporter's details, at

least name, address and business

name,

— end-user's details, at

least name, address and business
name. In the case of an export to a firm which resells the
goods on the local market, the firm will be regarded as the
end-user,

— final destination country,

— a description of

exported (type,
characteristics), or reference to the contract concluded with
the authorities of the final destination country,

goods being

the

— quantity and/or value of the exported goods,

2. Controlling exports of non-military and police equipment

— signature, name and position of the end-user,

COARM undertook to draw up a common list of non-military
security and police equipment, the export of which should be
monitored in accordance with criterion two of
the code
‘Respect for human rights in the country of final destination'.
The Commission has now announced a proposal
for a
Community mechanism for controlling exports of non-military
equipment that may be used for internal repression (2001).

— the date of the end-user certificate,

— end-use and/or non re-export clause (2002),

— indication of the end-use of the goods (2003).

The Commission presented a proposal for a Council Regulation
concerning trade in equipment and products which could be
used for capital punishment, torture or other cruel, inhuman
or degrading treatment or punishment (COM(2002) 770 final
is presently being
of 30 December 2002). The proposal
examined by the Trade Questions Working Party (2003).

Operative provision 7
In order to maximise the efficiency of this Code, EU Member States
the CFSP to reinforce their
will work within the framework of
cooperation and to promote
field of
in the
convergence
their
conventional arms exports.

1. Appeal procedures

The COARM Working
procedures relating to exports of military equipment (2001).

Party discussed possible

appeal

2. End-user certificates

Moreover,
Member States can require, inter alia:

in accordance with their national

legislation,

— a clause prohibiting re-export of the goods covered in the
end-user certificate. Such a clause could, among other
things:

— contain a pure and simple ban on re-export;

— provide that re-export will be subject to agreement in
the original exporting

the authorities of

writing of
country;

— allow for re-export without the prior authorisation of
to certain

the authorities of
countries identified in the end-user certificate;

the exporting country,

— an undertaking, where appropriate, that the goods being
exported will not be used for purposes other than the
declared use,

— an undertaking, where appropriate, that the goods will not
be used in the development, production or use of
chemical, biological or nuclear weapons or for missiles
capable of delivering such weapons,

Member States agreed on a common core of elements that
should be found in an end user certificate when it is required

— full details, where appropriate, of the intermediary,

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— if the end-user certificate comes from the government of
the destination country of the goods, the certificate will be
authenticated by the authorities of the exporting country
in order to check the authenticity of the signature and the
capacity of the signatory to make commitments on behalf
of their government (2002).

3. Member States' Coordination

Coordination within the European Union was exemplary at the
United Nations Conference on the Illicit Trade in Small Arms
and Light Weapons held in New York from 9 to 20 July 2001,
where the European Union was the only group of States to
submit an overall plan of action.

The EU also established a high profile at the Conference's
preparatory committee meetings where it showed no hesitation
in clearly articulating its ambitions in this area with one voice
(that of the Presidency) (2001).

Operative provision 8
in
Each EU Member State will circulate to other EU Partners,
report on its defence exports and on its
confidence, an annual
implementation of the Code. These reports will be discussed at an
annual meeting held within the framework of the CFSP. The meeting
will also review the operation of the Code, identify any improvements
which need to be made and submit to the Council a consolidated
report, based on contributions from Member States.

1. Harmonisation of national reports

Member States agreed that the public report will provide data,
broken down by recipient country, on the number and value
of
(if
licences granted and the value of actual exports
available).
It will also provide the total number of denials
issued by each Member State and the total number of denials
by all Member States for each recipient country and indicate
the criteria invoked for denials and the number of times these
criteria were invoked (2002).

Operative provision 9
EU Member States will, as appropriate, assess jointly through the
CFSP framework the situation of potential or actual recipients of
arms exports from EU Member States, in the light of the principles
and criteria of the Code of Conduct.

Member States also concert on national policies to control
arms exports to certain embargo-free countries or regions that
are being closely monitored (existence of an internal or
external conflict, human rights situation, etc.) (2000).

2. The development of exchanges of information on national
control policies for the export of arms to certain countries
or regions regarded as requiring special vigilance

the Code,

A substantial body of denials, notified in the framework of the
mechanism of
such
exchanges. The exchanges have also been supplemented by
exchanges of views and information amongst all Member
States undertaken on a regular and systematic basis within
COARM, focusing on specific countries and regions (2001).

the concrete basis

for

is

Operative provision 11
EU Member States will use their best endeavours to encourage other
arms exporting States to subscribe to the principles of this Code of
Conduct.

1. Third countries

Non-EU countries which have declared their adherence to the
principles and criteria of the Code, and which have become
involved in the restructuring of the European defence industry,
shall be allowed to gain access to the evolving interpretation of
the Code's principles and criteria. This shall not entail access
to information made available in the course of the procedures
referred to in the operative provisions of the Code.

The European Union and the Member States continue to
encourage other arms-exporting countries to subscribe to the
principles of the Code (2001).

The Code of Conduct was a primary subject of all political
dialogue consultations with non-member States.

Consultations are ongoing with the United States of America
on ways to follow-up on the December 2000 Declaration by
the European Union and the United States of America on the
responsibility of States and on transparency regarding arms
exports (2002).

1. Consultations within COARM

2.

Involvement of third countries

Any individual case of arms exports can be raised for
discussion by delegations in the COARM Working Group, if it
is considered to be useful for national licensing deliberations
(1999).

Member States continue to exchange information on national
interpretations of embargoes imposed by the United Nations,
the European Union and the Organisation for Security and
Cooperation in Europe.

to similarly inform Member States about

Member States agreed to share information on denials on an
aggregate basis with Associated Countries and encourage these
countries
their
denials. This information will be shared through the Presidency
and contain the following details: country of destination, short
items,
description of equipment and military list rating of
classification of end-user as government agency or private
entity, and reasons for refusal
the EU Code of
Conduct) (2002).

(criteria of

31.12.2003

EN

Official Journal of the European Union

C 320/9

ANNEX

INFORMATION ON CONVENTIONAL ARMS EXPORTS AND IMPLEMENTATION OF THE CODE OF
CONDUCT BY THE MEMBER STATES OVER THE PERIOD 1 JANUARY TO 31 DECEMBER 2002

Statistics are compiled differently by each Member State; no uniform standard is used. Consequently, owing to current
procedures in the area of arms export controls or data protection legislation, not all countries have been able to submit
the same information

The attached tables contain the following information:

TABLE A

— Country by country breakdowns for each Member State (1) (2): (a) = number of licences issued, (b) = value of
licences issued in Euros (if available), (c) = value of arms exports in Euros (if available) (Totals per region are shown
in bold);

— Total exports per Member State and total EU exports to each destination: (a) = number of licences issued, (b) =
value of licences issued in Euros (if available), (c) = value of arms exports in Euros (if available), (d) = number of
licence refusals, (e) = criteria numbers on which refusals are based (the approximate number of times each criterion
is invoked is indicated in brackets). Discrepancies in the grand totals per region and the grand totals per Member
State are explained in footnotes 2 (iv) and 2 (v), which might also be applicable for several Member States.

TABLE B

Total number of consultations initiated and total number of consultations received by each Member State.

TABLE C

Internet addresses for national reports on arms exports.

(1) To make the table more readable, nil values and/or the mention ‘not available' are omitted.
(2) NB:

(i)

Concerning Austrian exports: under (a) all licences issued by the Austrian authorities are indicated, under (b) the value of
licences issued for all items listed on the ‘Common List of Military equipment covered by the EU Code of Conduct on Arms
Exports' other than ‘war material'. Under (c) there is the overall value of exports of ‘war material'.

(ii) Concerning the Netherlands, exports to the Netherlands: these licences concern exports of components from the Netherlands
to third countries for integration in weapon sytems which have been purchased by the Dutch armed forces in these countries.
The final destination of these components was therefore the Netherlands.

(iii) Concerning Swedish exports:

1.

2.

The value (b+c) has been converted from Swedish Kronor to Euros. For the more exact value, see the Swedish national
report.
In cases where only 1 or 2 licences (a) have been granted to a recipient country, an approximate total value is given.

(iv) Concerning French exports: the difference between the total value of licences issued and the addition of the values indicated is

due to licences granted to destinations not members of the United Nations and to French overseas territories.

(v) Concerning the United Kingdom's exports: some licences issued specify more than one destination country. This means that
the total numbers of licences approved and refused is lower than the sum of all licences approved and refused in the entries
for each destination country and region.

C 320/10

EN

Official Journal of the European Union

31.12.2003

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31.12.2003

EN

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EN

Official Journal of the European Union

31.12.2003

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EN

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EN

Official Journal of the European Union

31.12.2003

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EN

Official Journal of the European Union

C 320/15

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EN

Official Journal of the European Union

31.12.2003

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31.12.2003

EN

Official Journal of the European Union

C 320/17

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C 320/18

EN

Official Journal of the European Union

31.12.2003

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EN

Official Journal of the European Union

C 320/19

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C 320/20

EN

Official Journal of the European Union

31.12.2003

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EN

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EN

Official Journal of the European Union

31.12.2003

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EN

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EN

Official Journal of the European Union

31.12.2003

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EN

Official Journal of the European Union

C 320/25

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EN

Official Journal of the European Union

31.12.2003

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31.12.2003

EN

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EN

Official Journal of the European Union

31.12.2003

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EN

Official Journal of the European Union

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EN

Official Journal of the European Union

31.12.2003

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31.12.2003

EN

Official Journal of the European Union

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EN

Official Journal of the European Union

31.12.2003

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EN

Official Journal of the European Union

C 320/33

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EN

Official Journal of the European Union

31.12.2003

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31.12.2003

EN

Official Journal of the European Union

C 320/35

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EN

Official Journal of the European Union

31.12.2003

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31.12.2003

EN

Official Journal of the European Union

C 320/37

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EN

Official Journal of the European Union

31.12.2003

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EN

Official Journal of the European Union

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EN

Official Journal of the European Union

31.12.2003

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EN

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C 320/41

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C 320/42

EN

Official Journal of the European Union

31.12.2003

TABLE B

Total number of consultations initiated and total number of consultations received by each Member State

Member State

No of consultations initiated

No of consultations
Received

Austria

Belgium

Denmark

Finland

France

Germany

Greece

Ireland

Italy

Luxembourg

Netherlands

Portugal

Spain

Sweden

United Kingdom

Total

11

3

0

3

17

19

0

0

2

0

1

1

0

0

11

68

TABLE C

1

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4

7

5

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0

7

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2

0

2

4

10

48

National reports on arms exports are available in paper form or on the Internet at the following locations:

Belgium:

Denmark:

Finland:

France:

Germany:

Ireland:

Italy:

diplobel.fgov.be

Paper: Ministry of Foreign Affairs, N.SP, Asiatisk Plads 2, DK-1448 Copenhagen K, Denmark or
Internet: www.um.dk
English summary. Full report in Danish only.

www.defmin.fi/index.phtml/page_id/75/topmenu_id/5/menu_id/75/this_topmenu/65/lang/3/fs/12

www.defense.gouv.fr/actualités/dossier/d49/index.html

http://www.bmwa.bund.de/Navigation/Service/Englisch/publications,page=1.html
or: www.bmwa.bund.de, select ‘english', select ‘publications'

www.irlgov.ie/iveagh

www.camera.it, select ‘attività parlamentare', select ‘lavori', select ‘documenti parlamentari', select
‘doc LXVII'

Netherlands:

www.exportcontrole.ez.nl

Portugal:

Spain:

Sweden:

www.mdn.gov.pt

www.mcx.es/sgcomex/mddu

www.utrikes.regeringen.se/inenglish/pressinfo/information/Publications.htm

United Kingdom:

www.fco.gov.uk