Proposal for a Directive of the European Parliament and of the Council on simplifying terms and conditions of transfers of defence-related products within the Community {SEC(2007) 1593} {SEC(2007) 1574}
Date: 2007-12-05
Institutions: European Commission
Subjects: European defence policy, administrative cooperation, capital goods, customs cooperation, export licence, industrial policy

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 5.12.2007 
COM(2007) 765 final 

2007/0279 (COD) 

Proposal for a 

DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

on simplifying terms and conditions of transfers of defence-related products within the 
Community 

(presented by the Commission) 

{SEC(2007) 1593} 
{SEC(2007) 1574} 

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EXPLANATORY MEMORANDUM 

1. 

CONTEXT OF THE PROPOSAL 

1.1. 

Grounds for and objectives of the proposal 

In  all  Member  States,  the  export  of  defence  related  products  (including  comprehensive 
military  equipments  as  well  as  sub-systems,  components,  spare  parts,  technologies  …)  is 
subject  to  national  licensing  schemes.  The  European  defence  market  is  consequently 
fragmented  into  27  national  licensing  regimes  which  diverge  widely  in  terms  of  procedure, 
scope and required delays, despite coordinating efforts between a limited number of Member 
States. 

This patchwork of licensing schemes not only imposes a significant administrative burden on 
companies,  but  also  induces  significant  lead  times  –  up  to  several  months.  These  burdens 
nowadays  clearly  appear  to  be  out  of  proportion  with  actual  control  needs:  license 
applications for intra-Community transfers are indeed hardly ever rejected. 

Furthermore, defence industries and EU governments cannot fully rely on their supply chains 
because  of  the  legal  uncertainty  resulting  from  the  need  for  individual  authorisation  of 
transfers. 

These  divergences  constitute  a  major  impediment  to  industrial  competitiveness,  and  a 
considerable obstacle to the emergence of a European Defence Equipment Market (EDEM) as 
well as the functioning of the Internal Market. 

The objective of this proposal is to reduce these obstacles to the circulation of defence-related 
goods  and  services  (products)  within  the  Internal  Market,  and  to  diminish  the  resulting 
distortions  of  competition,  by  simplifying  and  harmonizing  licensing  conditions  and 
procedures.  In  view  of  the  specific  features  of  the  defence  market  and  the  need  to  protect 
national  security,  it  is  not  proposed  to  abolish  licensing  requirements  but  rather  to  replace 
them  by  a  streamlined  system  of  general  or  global  licenses,  to  which  individual  licensing 
would remain the exception. Such system would provide guarantees as to the reliability of the 
recipient to respect restrictions prescribed by the Member State of origin. This would make an 
important contribution to: 

•  strengthening  the  European  defence  industry’s  competitiveness,  by  facilitating  its 

specialisation and by favouring industrial cooperation throughout the EU; 

•  improving security of supply of European defence products (purchases and maintenance) 

for Member States. 

1.2. 

General context 

Groups of Member States, and the European Union, have tried to address these issues by the 
following ad hoc or partial arrangements: 

–  Defence ministers of six Member States signed in 1998 a Letter of Intent (LoI, followed up 
by the Farnborough Agreement in 2000), which aimed i.a. at facilitating the restructuring 
of  the  European  defence  industry  via  inter  alia  common  measures  with  regard  to  export 

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procedures. The agreement committed the signatory nations to applying simplified export 
procedures to transfers. No further Member State has subsequently joined the LoI. 

–  In  the  framework  of  the  Common  Foreign  and  Security  Policy,  the  Council  adopted  in 
1998  a  Code  of  Conduct  on  Arms  Exports  in  order  to  strengthen  cooperation  between 
Member  States  and  to  promote  convergence  with  regard  to  exports  of  conventional 
weapons. Furthermore, the Council is preparing to adopt the updated Code as a common 
position based on Article 15 of the EU Treaty. 

–  Recently, the Member States created a European Defence Agency whose goals include the 
"support to the creation in liaison with Commission, as appropriate, of  an internationally 
competitive European Defence Equipment market, providing further impulse and input to 
the  development  and  harmonisation  of  rules  and  regulations  affecting  the  European 
defence  market,  particularly  by  an  EU  wide  application  of  rule  and  procedures  adapted 
from those negotiated in the Letter of Intent (LoI) Framework Agreement process". 

The Agency's Steering Board adopted a regime for a Code of Conduct applicable from July 
2006  on  defence  procurement  under  situations  covered  by  Article  296  TEC.  This  Code  of 
Conduct  encourages  inter  alia  subscribing  Member  States  to  simplify  intra-Community 
transfers and transits of defence goods and technologies. 

Following  50  years  of  European  integration,  the  Commission  proposal  recognises  that, 
provided certain conditions are met, intra-community transfers no longer pose the same threat 
to  national  security  as  exports  to  a  third  country  or  a  region  in  crisis.  Presently,  transfers 
within  the  EU  are  processed  in  a  similar  way  as  exports  to  third  countries,  effectively 
assimilating Member States to third countries. By dealing with the risk of undesired re-export 
in a clear manner, the EC proposal aims at reinforcing mutual trust, and so paves the way for 
simplified transfers within the EU. 

According  to  a  study  carried  out  for  the  European  Commission  in  2005  entitled  “Intra-
Community  Transfers  of  Defence  Products”1,  the  direct2  and  indirect3  cost  of  obstacles  to 
intra-community  transfers  amount  to  € 3.16  billion/year.  The  processing  of  licences  has  a 
direct  cost  of  € 434  million/year  while  indirect  costs  have  been  estimated  at  € 2,73 
billion/year. Although it is very difficult to assess benefits stemming from smoother industrial 
cooperation and from greater security of supply for Member States, it is widely acknowledged 
that  industrial  cooperation  is  hampered  by  the  existence  of  separate  national  licensing 
regimes.  Pan-European  defence  companies  also  face  difficulties  in  cross-border  cooperation 
between different plants because of diverging licensing regimes. 

The  proposal  follows  the  line  proposed  by  the  Commission  in  its  2003  Communication  on 
industrial and market issues “Towards an EU Defence Equipment Policy”4. 

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http://ec.europa.eu/enterprise/regulation/inst_sp/defense_en.htm 
Structural  and  procedural  costs  related  to  the  execution  of  the  licensing  processes  itself:  Cost  for 
preparing, submitting, and managing the 11 400 annual licence requests for intra-Community transfers 
Opportunity  cost  (other  than  direct  costs)  linked  to  the  maintenance  of  barriers  to  intra-community 
transfers. 
COM(2003) 113, 11.3.2003. 

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1.3. 

Existing provisions in the area of the proposal 

The Community has not yet adopted secondary legislation in the area of the proposal. 

1.4. 

Consistency with the other policies of the Union and international cooperation 

This  proposal  belongs  to  a  defence  package  consisting  of:  an  umbrella  communication  and 
two legislative initiatives, on public procurement and on transfers of defence-related products 
respectively. 

–  Facilitating transfers will complement the proposal on defence procurement: indeed, open 
defence markets presuppose a reasonable expectation from the buyer that ordered products 
will  be  delivered  without  undue  administrative  obstacles.  Furthermore,  although  licences 
are hardly ever refused, the "theoretical" possibility that such refusal may take place is an 
incentive  for  Member  States  to  prefer  sourcing  military  equipment  from  a  national 
producer  rather 
than  from  (possibly  more  advantageous)  European  competitors. 
Facilitating  intra-community  transfers  contributes  to  making  the  defence  procurement 
directive more effective and help to enhance the openness of defence markets of Member 
States. 

–  Common  Foreign  Security  Policy  (CFSP):  Whilst  having  as  primary  objective  the 
completion  of  Internal  Market  for  defence  products,  the  initiative  will  also  contribute  to 
achieving  CFSP  objectives,  such  as  improving  the  security  of  supply  of  Member  States 
armed  forces,  as  well  as  industrial  policy  objectives,  such  as  the  promotion  of  a  strong 
European  Defence  Technological  and  Industrial  Base  (EDTIB).  Improved  industrial 
cooperation  should  generate  economies  of  scale  (and  therefore  lead  to  more  “value  for 
money”  defence  equipment),  thus  allowing  Member  State  armed  forces  to  maximise  the 
effectiveness of their defence equipment investments. 

–  Lisbon  agenda:  the  latter  consideration  links  up  to  the  Lisbon  objectives  such  as 
strengthening  the  international  competitiveness  of  European  (defence)  industries  and 
secure employment in Europe. 

–  LoI: The proposal is compatible and complementary to ongoing work in LoI. It will indeed 
provide  the  necessary  common  tools  that  could  subsequently  be  further  developed  on  an 
inter-governmental basis. 

2. 

CONSULTATION OF INTERESTED PARTIES AND IMPACT ASSESSMENT 

2.1. 

Consultation of interested parties 

Consultation methods, main sectors targeted and general profile of respondents: 

From March 2006 to September 2006, the Commission organised a public consultation. This 
was  followed  between  September  2006  and  July  2007  by  three  rounds  of  workshops  with 
industry and Member States. Throughout the preparatory phase, the Commission services had 
close  contacts  with  a  variety  of  stakeholders:  industry  representative  bodies  (notably  the 
Aerospace  and  Defence  Association  -  ASD),  non-governmental  organisations,  local 
authorities and company representatives. 

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Throughout  the  consultation  process  a  page  on  the  DG  ENTR  website  has  been  regularly 
updated providing all the relevant documents. 

Summary of responses and how they have been taken into account: 

An open consultation was conducted over the internet from 21 April 2006 to 15 September 
2006.  The  Commission  received  25  responses.  The  results  of  this  consultation  are  available 
on the Europa web site: http://ec.europa.eu/enterprise/regulation/inst_sp/defense_en.htm 

2.2. 

Collection and use of expertise 

Scientific/expertise domains concerned: 

The  necessary  expertise  on  transfers  of  defence  products  has  been  fully  assured  during  the 
process of consulting and assessing the views of stakeholders. 

Methodology used: 

The consultants who made the initial study, and provided elements for the Impact Assessment 
Study, worked in close collaboration with experts in export control from industry and national 
administrations.  They  also  regularly  conferred  with  experts  from  the  ASD  and  academics. 
Furthermore,  the  Commission  services  frequently  requested  the  opinion  of  experts  from 
industry and from the Member States on specific matters. 

Main organisations/experts consulted: 

Defence industries represented in ASD, individual companies, academics, national competent 
authorities. 

Summary of advice received and used: 

Initial  comments  from  the  industry  and  from  Member  States  pointed  to  the  following 
principal options: 

–  relinquish the option of a central computerized traceability system; 

–  take the Council's Common Military List (CML) as the scope of the directive; 

–  retain the requirement of national licensing: promoting a licence-free zone in the EU would 
go  beyond  what  is  achievable  in  the  present  context  (no  common  foreign  policy  and 
incomplete political integration). However, the Commission was advised that it could help 
in promoting a simplified and harmonised licensing system; 

–  promote  the  certification  of  companies  receiving  defence  related  products  as  a  means  to 
assure  Member  States  of  the  reliability  of  the  company  as  regards  the  respect  of  export 
limitations after the transfer. 

Means used to make the expert advice publicly available: 

Opinions  collected  from  industrial  and  Member  State  experts  were  made  available  on  the 
Europa web site: http://ec.europa.eu/enterprise/regulation/inst_sp/defense_en.htm 

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2.3. 

Impact assessment 

The  Commission  carried  out  an  impact  assessment  to  back  up  this  proposal.  The  report  is 
accessible on the Europa website: 
http://ec.europa.eu/enterprise/regulation/inst_sp/defense_en.htm 

The  impact  assessment  examined  two  possible  options:  no  policy  change,  or  a  legislative 
initiative. Consideration of a third possibility, non-legislative action, quickly showed that its 
likely effects on national "hard-law" licensing regimes would be insignificant. Such an option 
would  not  substantially  differ  from  current  national  practices  and  was  therefore  assimilated 
into the option “no policy change”. 

"No  policy  change"  would  involve  relying  on  possible  intergovernmental  arrangements  to 
lighten  the  administrative  burden  of  extensive  licensing.  However,  past  intergovernmental 
agreements have shown little success, and their restriction to only few Member States could 
potentially  undermine  the  twofold  objective  of  fostering  security  of  supply  for  all  Member 
States  and  exploiting  the  full  range  of  Europe's  competencies  and  niche  capabilities,  in 
particular those competencies that are to be found in the new Member States. 

Within the broad range of possibilities of legislative action, the option of creating a licence-
free  zone  and  managing  the  issuing  of  intra-community  transfer  licences  at  EU  level  was 
considered, but was finally discarded because of the current lack of a common foreign policy 
and insufficient political integration between Member States. 

The  other  examined  legislative  option  was  to  simplify  and  approximate  national  licensing 
schemes and regulatory practices through the progressive development of general and global 
licences, on the one hand, and security and confidence-building measures such as certification 
of defence companies and guarantees as to the respect by companies of export limitations, on 
the other. 

Bearing  in  mind  that  simplification  could  make  progress  only  if  strong  security  guarantees 
were provided, the impact analysis suggested that the best combination would be: 

–  to provide for global and general national licensing in order to best address the variety of 

transfers and the differing sensitivities of defence products; 

–  to promote general licensing in cases where security concerns (in particular as regards the 
prevention  of  undesired  re-export)  were  under  control:  transfers  to  EU  governments, 
to 
transfers 
intergovernmental cooperation programmes. 

to  certified  companies  and  where  appropriate 

transfers 

relating 

3. 

LEGAL ELEMENTS OF THE PROPOSAL 

3.1. 

Summary of the proposed action 

This  proposal  aims  at  simplifying  and  harmonising  transfers  of  defence  products  within  the 
EU. The approach is twofold: 

–  concerning simplification, the proposal requires Member States to grant general and global 
licences  for  intra-EU  transfers  and  individual  licensing  should  be  kept  for  exceptional 
circumstances; 

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–  concerning  harmonisation,  the  proposal  requires  Member  States  to  establish  systems  of 
general  licences  for  two  types  of  transfers  of  defence  related  products:  transfers  to 
governments  in  any  other  Member  State;  transfers  to  recipients  in  other  Member  States 
certified  in  accordance  with  the  common  criteria  in  the  directive.  Furthermore,  Member 
States  are  required  to  determine  for  each  licence  the  terms  and  conditions  of  its  use,  in 
particular as regards the defence related products covered and their possible uses as well as 
reporting obligations of companies using the licences. 

In  order  to  accompany  the  progressive  development  of  general  and  global  licences  with 
guarantees for the protection of national security, the proposal includes two elements to foster 
confidence  between  Member  States,  in  particular  as  regards  the  respect  by  companies  of 
export limitations attached to transfers by the originating Member State: 

–  Member States would have to certify according to common requirements those companies 

who wish to source according to general licences issued in other Member States; 

–  When applying for an export licence, companies would have to confirm to their competent 
authorities that they respect the export limitations issued by the originating Member States. 

This  proposal  should  also  be  seen  as  a  contribution  to  achieve  greater  openness  of  defence 
markets  between  Member  States.  The  use  of  general  licences  for  defence  related  products 
procured from suppliers established in another Member State will greatly improve security of 
supply in a EU-wide supply base. 

3.2. 

Legal basis 

Article 95 of the EC Treaty. 

3.3. 

Subsidiarity principle 

As  explained  in  the  interpretative  communication  adopted  by  the  Commission  in  the  public 
procurement  context5,  Treaty  provisions  on  free  movement  of  goods  apply  in  full  to  these 
products.  The  Community  has  thus  an  exclusive  competence  for  the  organisation  of  the 
conditions for free circulation by harmonising the conditions of  licensing for the transfer of 
defence-related  products  within  the  European  Community.  In  particular  as  regards  the 
creation  of  mutual  confidence,  it  is  necessary  to  provide  the  authorities  of  the  country  of 
origin with guarantees as to the respect of export limitations by the destination companies. By 
common  measures  designed  to  ensure  the  respect  of  export  limitations  by  companies, 
administrative  cooperation  and  control  at  external  frontiers,  the  proposal  will  provide  a 
significant added value. In addition to administrative cooperation, it is likely to increase the 
level  of  mutual  confidence  among  Member  States,  which  is  a  prerequisite  in  defence  and 
security matters. 

As  previous  experience  suggests,  action  led  solely  at  Member  State  level  is  unlikely  to 
provide a level playing field in a timely manner. Some Member States have taken actions to 
facilitate  the  circulation  of  defence  products  and  intergovernmental  cooperation  work  is 
ongoing  in  the  LoI  framework  between  the  six  major  defence  producing  Member  States. 
However,  the  benefits  of  purely  national  initiatives  have  been  reserved  to  exporting 

5 

Interpretative  Communication  on  the  application  of  Article  296  of  the  Treaty  in  the  area  of  defence 
procurement - COM(2006) 779, 7.12.2006. 

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companies  in  the  Member  States  concerned  and  they  have  not  been  able  to  address  the 
problems  of  these  companies  to  improve  the  security  of  cross-frontier  supply  with 
components.  A  simple  extension  of  such  agreements  to  further  Member  States  might  face 
substantial difficulties. 

At  the  same  time,  the  degree  of  intervention  of  the  Community  does  not  exceed  what  is 
necessary  to  achieve  the  Community  objectives.  As  long  as  the  proposed  measures  secure 
mutual  confidence  between  Member  States,  there  is  no  need  for  centralised  decisions  on 
licensing of products or for further harmonisation of common external policies. Subsidiarity is 
safeguarded  by  the  respect  of  policy  decisions  by  Member  States  in  the  framework  of  their 
defence and foreign policies and their coordination within the CFSP. 

3.4. 

Proportionality principle 

The proposal complies with the proportionality principle for the following reasons: 

The  proposal  will  reduce  work  for  national  authorities  and  industry  by  substituting  general 
and global for individual licences as far as possible. While it will require the establishment of 
certification procedures in all Member States, most large companies in the defence sector are 
to a large extent already scrutinized by national governments in view of the sensitivity of the 
sector  -  for  example,  through  compliance  programmes  or  similar  supervision.  Normal 
monitoring activities of national authorities will continue. 

3.5. 

Choice of instruments 

The proposed instrument is a directive. 

Other means would not be adequate for the following reasons: 

Member  States  are  primarily  responsible  for  the  simplification  of  licensing.  In  providing 
Member  States  a  larger  leeway  as  to  the  best  way  to  set  up  global  and  general  licensing,  a 
directive  also  better  takes  into  account  the  specificities  and  the  acute  sensitivity  of  defence 
matters. A directive is therefore the best-suited instrument. 

4. 

BUDGETARY IMPLICATION 

The  proposal  has  implications  for  the  Community  budget  flowing  from  the  following  new 
tasks: 

–  to  cooperate  in  Council  work  in  view  of  the  update  the  Annex  of  the  Common  Military 

List; 

–  to  report  on  the  measures  taken  by  Member  States  to  implement  the  provisions  of  this 

directive; 

–  to  report  on  the  functioning  of  the  directive  and  its  impact  on  developments  of  the 
European  defence  equipment  market  and  the  European  defence  technological  and 
industrial base; 

–  to organise the work of the Cooperation group (below); 

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–  to monitor of the compliance of procedures and methods of cooperation between Member 

States and use its powers if necessary. 

The abovementioned tasks could require additional staff and technical assistance as detailed 
in the financial sheet annexed to the proposal for a directive. 

The Commission envisages the creation of a Cooperation group composed of Member States 
representatives and chaired by a representative of the Commission. The tasks of the group will 
be  to  examine  any  issue  concerning  the  application  of  this  directive  which  may  be  raised 
either by the chairman or by a representative of a Member State and, inter alia to evaluate: 

–  implementing measures in each Member State based on a Commission report; 

–  the use of the safeguard clause; 

–  measures which should be taken by Member States to inform operators of their obligations 

under this directive; 

–  and to provide guidance concerning licence forms. 

5. 

ADDITIONAL INFORMATION 

5.1. 

Simplification 

The  proposal  provides  for  simplification  of  administrative  procedures  for  public  authorities, 
and simplification of administrative procedures for private parties. 

The  proposal  will  reduce  national  authorities’  workload  by  bringing  down  the  number  of 
licence applications. 

For  defence  companies,  the  proposal  will  greatly  reduce  the  burden  associated  to  licence 
applications. 

5.2. 

Review/revision/sunset clause 

The proposal includes a review clause. 

5.3. 

European Economic Area 

The proposed act concerns an EEA matter and should therefore be extended to the European 
Economic Area. 

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2007/0279 (COD) 

Proposal for a 

DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

on simplifying terms and conditions of transfers of defence-related products within the 
Community 

(Text with EEA relevance) 

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty establishing the European Community, and in particular Article 
95 thereof, 

Having regard to the proposal from the Commission6, 

Having regard to the opinion of the European Economic and Social Committee7, 

Having regard to the opinion of the Committee of the Regions8, 

Acting in accordance with the procedure laid down in Article 251 of the Treaty9, 

Whereas: 

(1) 

(2) 

(3) 

The  Treaty  provides  for  the  establishment  of  an  internal  market,  including  the 
abolition between Member States of obstacles to freedom of movement for goods and 
services,  and  the  institution  of  a  system  ensuring  that  competition  in  the  common 
market is not distorted. 

The Treaty provisions establishing the internal market apply to all goods and services 
provided against remuneration including defence related products but do not preclude 
Member  States  under  certain  conditions  from  taking  other  measures  in  individual 
cases where they consider it necessary to protect essential interests of their security. 

The  laws,  regulations  and  administrative  measures  in  Member  States  concerning  the 
transfer of defence-related products within the Community contain disparities, which 
may  impede  the  free  movement  of  defence  related  products  and  may  distort 
competition within the internal market. 

6 
7 
8 
9 

OJ C , , p. . 
OJ C , , p. . 
OJ C , , p. . 
OJ C , , p. . 

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(4) 

(5) 

(6) 

(7) 

(8) 

(9) 

(10) 

The  objectives  pursued  generally  by  the  laws  and  regulations  of  Member  States 
include the preservation of human rights, peace, security and stability through systems 
of  strict  control  and  restriction  of  exportation  and  proliferation  of  defence  related 
products to third countries as well as to other Member States. 

Such restrictions on the movement of defence-related products within the Community 
cannot  be  abolished  generally  through  direct  application  of  the  principles  of  free 
movement of goods and services provided by the Treaty as those restrictions may be 
justified on a case by case basis in accordance with Articles 30 or 296 of the Treaty. 

Those laws and regulations of Member States therefore need to be harmonised in such 
a way as to simplify the intra-community transfer of defence related products in order 
to ensure proper functioning of the internal market. 

Harmonisation  of  those  laws  and  regulations  of  Member  States  should  not  give 
prejudice  to  obligations  of  Member  States  under  relevant  international  non-
proliferation  regimes,  to  export  control  arrangements,  to  treaties  or  to  discretion  of 
Member States on export policy. 

This  directive  should  not  apply  to  defence-related  products  which  only  pass  through 
the  territory  of  the  Community,  that  is  those  products  which  are  not  assigned  a 
customs-approved treatment or use other than the external transit procedure or which 
are merely placed in a free zone or free warehouse and where no record of them has to 
be kept in an approved stock record. 

This directive should cover all the defence-related products which correspond to those 
listed  in  the  Common  Military  List  of  the  European  Union10  including  sub-systems, 
components, spare parts, technology transfer, maintenance and repair. 

In  order  to  deal  with  similar  risks  associated  with  the  transfer  of  defence  related 
products which are not listed in the Annex to this directive, Member States should be 
able to apply this directive to those defence related products and thus make transfer of 
those defence related products subject to the same rules. 

(11)  The  objectives of  preservation of human rights, peace,  security  and stability  pursued 
generally  by  Member  States  laws  and  regulations  restricting  the  transfer  of  defence 
related  products  require  that  the  transfer  of  those  products  within  the  Community 
remains  subject  to  authorisation  by  originating  Member  States  and  guarantees  in  the 
receiving Member States. 

(12) 

In  view  of  the  safeguards  provided  in  this  directive  for  the  protection  of  those 
objectives  Member  States  would  no  longer  need  to  introduce  or  maintain  other 
restrictions for the achievement of those objectives. 

(13)  This directive should not give prejudice to the application of provisions necessary for 

the protection of public order such as the safety of transport. 

(14)  Any  transfer  of  defence  related  products  within  the  European  Community  should  be 
subject  to  prior  authorisation  through  general,  global  or  individual  transfer  licences 

10 

OJ L 88, 29.3.2007, p. 58. 

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granted  or  published  by  the  Member  State  where  the  supplier  is  established.  In  line 
with  the  principles  constituting  the  internal  market  the  authorisation  should  be  valid 
throughout the Community and no further authorisations for the transit through other 
Member States or for import in other Member States should be necessary. 

(15)  Member  States  should  determine  the  type  of  licence  for  defence  related  products  or 
categories  of  defence  related  products  and  the  terms  and  conditions  of  each  of  the 
transfer licences, taking into account the sensitivity of the transfer. 

(16)  As  regards  sub-systems  and  components,  Member  States  should  refrain  from  export 
limitations  as  far  as  possible  by  accepting  recipients  declaration  of  use  taking  into 
account  the  degree  of  integration  of  such  sub-systems  and  components  into  the 
recipients own products. 

(17) 

In order to facilitate transfers of defence related products, general licences should be 
published  by  Member  States’  regulation  providing  authorization  to  transfer  defence 
related  products  to  any  company  fulfilling  the  terms  and  conditions  defined  in  each 
general licence. 

(18)  A  general  licence  should  be  published  for  transfers  of  defence  related  products  to 
armed  forces  in  order  to  greatly  increase  security  of  supply  for  all  Member  States 
which choose to procure within the Community. 

(19)  A general licence should be published for transfers of sub-systems and components to 
certified  European  defence  companies  in  order  to  foster  cooperation  between  and 
integration  of  those  companies,  in  particular  by  facilitating  optimisation  of  supply 
chains and economies of scale. 

(20)  Member  States  participating  in  a  cooperation  programme  may  publish  a  general 
licence  for  transfers  of  defence  related  products  to  recipients  in  other  participating 
Member  States  necessary  for  the  execution  of  that  cooperation  programme.  That 
would  improve  conditions  for  the  participation  in  cooperation  programmes  by 
companies established in the participating Member States. 

(21)  Member States should be able to publish further general licences for the cases where 
the risks for the preservation of human rights, peace, security and stability are low in 
view of the nature of the products and the recipients. 

(22) 

In  cases  where  general  licence  cannot  be  published,  Member  States  should  grant 
global licences on request to individual companies, except in cases where the request 
is limited to one transfer or where the nature of the product and the recipient justify the 
granting  of  an  individual  licence  in  view  of  the  protection  of  their  essential  security 
interests  or  compliance  with  relevant  international  non-proliferation  regimes,  export 
control arrangements or treaties. 

(23)  Companies should inform the competent authorities of the use of general licences in 
view  of  the  preservation  of  human  rights,  peace,  security  and  stability  as  well  as  to 
allow  transparent  reporting  of  transfers  of  defence  related  products  in  view  of 
democratic control. 

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(24)  Degree of latitude of Member States in determining terms and conditions of general, 
global  and  individual  transfer  licences  should  be  flexible  enough  to  allow  ongoing 
cooperation  under  the  existing  international  framework  on  export  control.  As  the 
decision to authorise or deny an export is and should remain at the discretion of each 
Member State, such cooperation should only stem from the voluntary coordination of 
export policies. 

(25)  For the application of this directive, Member States should remain entitled to pursue 
and further develop their current intergovernmental cooperation as implemented inter 
alia in the Letter of Intent. 

(26) 

In order to compensate for the progressive substitution of general ex-post control for 
individual  ex-ante  control  in  the  Member  State  of  origin  of  the  defence  related 
products, conditions for mutual confidence and trust should be created by the inclusion 
of guarantees which ensure that defence related products are not exported in violation 
of export limitations to third countries. 

(27)  Member States cooperate in the framework of the European Union Code of Conduct 
on  Arms  Exports,  adopted  by  the  Council  on  8  June  1998,  through  voluntary 
application  of  common  criteria  as  well  as  denial  notification  and  consultation 
mechanisms  in  view  of  increasing  convergence  in  the  application  of  their  export 
policies of defence related products to third countries. 

(28)  Suppliers should inform recipients of any limitations attached to the transfer licences 
in order to allow the building of mutual trust in the ability of the recipients to respect 
such  limitations  after  the  transfer,  in  particular  in  the  case  of  a  request  for  export  to 
third countries. 

(29) 

It  should  be  for  the  companies  to  decide  whether  the  benefits  flowing  from  the 
possibility to receive defence related products under a general transfer licence justify 
the  request  for  certification.  Transfers  within  a  group  of  companies  should  benefit 
from a general transfer licence in cases where the members of the group are certified 
in their respective Member States of establishment. 

(30)  Common  criteria  for  certification  are  necessary  in  order  to  allow  the  building  of 
mutual trust, in particular in the ability of the recipients to respect export limitations of 
defence related products received under a transfer licence from another Member State. 

(31) 

In  order  to  facilitate  mutual  confidence,  recipients  of  transferred  defence  related 
products  should  refrain  from  the  export  of  those  products  where  the  transfer  licence 
contains export limitations. 

(32)  Companies should declare to their competent authorities, at the time of requesting an 
export licence to third countries, whether they have abided by any export limitations 
attached  to  the  transfer  of  the  defence  related  product  by  the  Member  State  which 
issued that transfer licence. 

(33)  Companies should furnish proof of the export licence at the common external frontier 
of  the  Community  to  the  competent  customs  authority  at  the  moment  of  export  to  a 
third country of a defence related product received under a transfer licence. 

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(34)  The list in the Annex of defence related products should be updated in conformity with 

the Common Military List of the European Union (CML). 

(35) 

(36) 

It  is  necessary  for  the  progressive  building  of  mutual  trust  and  confidence  that 
Member  States  determine  effective  measures  sufficient  to  ensure  enforcement  of  the 
provisions of this directive and in particular those providing that companies respect the 
common  criteria  of  certification  and  limitations  of  further  use  of  transferred  defence 
related products following a transfer. 

In  cases  where  a  Member  State  of  origin  has  reasonable  doubt  whether  a  certified 
recipient would respect any condition attached to its general transfer licence, it should 
not  only  inform  the  other  Member  States  and  the  Commission,  but  also  be  able  to 
provisionally suspend the effect of its transfer licences to such company having regard 
to its responsibility for the preservation of human rights, peace, security and stability. 

(37)  To  foster  mutual  trust,  the  application  of  the  laws  regulations  and  administrative 
provisions adopted to ensure compliance with this directive should be deferred. That 
would allow, before application of those provisions, to evaluate the progress made on 
the basis of a report prepared by the Commission which is based on the information 
submitted by the Member States on the measures taken. 

(38)  The  Commission  should  publish  regularly  a  report  on  the  implementation  of  this 
directive which may be accompanied by legislative proposals, where appropriate. 

(39)  Since the objectives of the action to be taken, namely the achievement of the internal 
market through the introduction of a compulsory licensing system for defence related 
products,  cannot  be  sufficiently  achieved  by  the  Member  States  in  view  of  the 
divergence of present licensing procedures and of the cross-border nature of transfers 
and can therefore be better achieved at Community level, the Community may adopt 
measures, in accordance with the principle of subsidiarity as set out in Article 5 of the 
Treaty. In accordance with the principle of proportionality, as set out in that Article, 
this  directive  does  not  go  beyond  what  is  necessary  in  order  to  achieve  those 
objectives. 

(40)  The measures necessary for the implementation of this directive should be adopted in 
accordance  Council  decision  1999/468/EC  of  28  June  1999  laying  down  the 
procedures for the exercise of implementing powers of the Commission11. 

(41) 

In  particular  power  should  be  conferred  on  the  Commission  to  amend  the  Annex. 
Since  those  measures  are  of  general  scope  and  are  designed  to  amend  non-essential 
elements  of  this  directive,  they  must  be  adopted  in  accordance  with  the  regulatory 
procedure with scrutiny provided for in Article 5a of Decision 1999/468/EC. 

11 

OJ L 184, 17.7.1999, p. 23. Decision as amended by Decision 2006/512/EC (OJ L 200, 22.7.2006, p. 
11). 

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HAVE ADOPTED THIS DIRECTIVE: 

Chapter I 
Subject matter, scope and definitions 

Article 1 
Subject matter 

1. 

2. 

1. 

2. 

3. 

This  directive  lays  down  the  rules  and  procedures  on  transfer  of  defence-related 
products within the internal market. 

This directive does not affect the export policies of Member States. 

Article 2 
Scope 

This directive applies to defence-related products. 

Member  States  may  apply  the  provisions  of  this  directive  mutatis  mutandis  to 
defence related products other than those included in the Annex, but whose transfer 
within the Community poses similar risks to the preservation of human rights, peace, 
security and stability. 

When  a  Member  State  makes  use  of  the  possibility  set  out  in  paragraph  2,  it  shall 
publish  a  list  of  those  products  and  inform  the  Commission  and  the  other  Member 
States thereof. 

Article 3 
Definitions 

For the purposes of the present directive, the following definitions shall apply: 

(1) 

(2) 

(3) 

(4) 

(5) 

(6) 

“defence-related  product”  means  any  product  specifically  designed  for  military  use 
and listed in the Annex; 

“transfer”  means  any  transmission  of  a  defence-related  product  to  a  recipient  in 
another Member State in the context of a commercial transaction; 

“supplier” means the legal or natural person established within the Community who is 
legally responsible for a transfer; 

“recipient” means the legal or natural person established within the Community who is 
legally responsible for a receipt of a transfer in another Member State; 

“transfer licence” means an authorisation by a national authority of a Member State for 
suppliers to transfer defence related products to a recipient in another Member State; 

“export  licence”  means  an  authorisation  to  supply  defence  related  products  to  a 
recipient in any third country. 

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Chapter II 
Transfer licences 

Article 4 
General provisions 

1. 

2. 

3. 

4. 

5. 

6. 

7. 

8. 

The transfer of defence related products between Member States shall be subject to 
prior  authorisation.  No  further  authorisation  by  other  Member  States  shall  be 
required  for  the  transit  through  Member  States  or  for  the  import  in  other  Member 
States of defence related products without prejudice to the application of provisions 
necessary for the protection of public order such as the safety of transport. 

Member States shall grant suppliers established on their respective territories general, 
global or individual transfer licences. 

Member  States  shall  choose  the  type  licence  for  defence-related  products  or 
categories of defence related products concerned according to the provisions of this 
Article and Articles 5, 6 and 7. 

Member  States  shall  determine  the  terms  and  conditions  of  transfer  licences,  in 
particular  any  limitations  on  the  export  of  defence-related  products  to  recipients  in 
third  countries,  having  regard  to  the  risks  for  preservation  of  human  rights,  peace, 
security and stability created by the transfer. Member States may pursue and extend 
existing  intergovernmental  cooperation  in  order  to  achieve  the  objectives  of  this 
directive. 

Member States shall determine the terms and conditions of transfer licences for sub-
systems  and  components  on  the  basis  of  an  assessment  of  the  sensitivity  of  the 
transfer according to the following criteria: 

(a) 

the  nature  of  the  sub-systems  and  components  in  relation  to  the  products  in 
which they are to be incorporated and in relation to any end-use of the finished 
products which might give rise to concern; 

(b) 

the significance of the sub-systems and components in relation to the products 
into which they are incorporated. 

Except  where  Member  States  consider  that  the  transfer  of  sub-systems  or 
components  is  sensitive,  Member  States  shall  refrain  from  imposing  any  export 
limitations for such sub-systems or components if the recipient provides a declaration 
of  use  by  which  it  declares  that  the  sub-systems  or  components  subject  to  that 
transfer licence are integrated into its own products and therefore cannot be at a later 
stage transferred or exported as such. 

Member States may revoke or limit the use of transfer licences they have issued at 
any time, for reasons of protection of their essential security interests. 

Member  States  shall  determine  the  recipients  of  transfer  licences  in  a  non-
discriminatory way unless necessary to protect their essential security interests. 

EN 

16 

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1. 

2. 

1. 

2. 

Article 5 
General transfer licences 

Member States shall publish general transfer licences directly granting authorisation 
to  suppliers  established  on  their  respective  territories  who  fulfil  the  terms  and 
conditions  attached  to  the  licence  to  perform  several  transfers  of  several  defence-
related products to a category or categories of recipients located in another Member 
State, at least in the following cases  

(a) 

the recipient is part of the armed forces of a Member State; 

(b) 

the recipient is a company certified in accordance with Article 9. 

Member  States  participating  in  an  intergovernmental  cooperation  programme 
between Member  States concerning the development, production and  use of one or 
more defence related products may publish a general transfer licence for transfers to 
other  Member  States  which  participate  in  that  programme  which  are  necessary  for 
the execution of that programme. 

Article 6 
Global transfer licences 

Member  States  shall  grant  global  transfer  licences  to  an  individual  supplier  on  its 
request authorizing one or several transfers of one or several defence related products 
to one or several recipients in another Member State. 

Member  States  shall  determine  in  each  global  transfer  licence  the  defence-related 
products  or  categories  of  products  covered  by  the  global  transfer  licence,  the 
authorised recipients or category of recipients, and the duration of the licence. 

A global transfer licence shall be valid for a period of at least 3 years. 

Article 7 
Individual transfer licences 

Member States shall grant individual transfer licences to an individual supplier on its request 
authorizing  one  transfer  of  defence  related  products  to  one  recipient  only  in  either  the 
following cases: 

(a) 

(b) 

(c) 

where the request for a licence is limited to one transfer; 

where it is necessary for the protection of its essential security interests; 

where it is necessary for compliance with obligations and commitments of Member 
States  under  the  relevant  international  non-proliferation  regimes,  export  control 
arrangements or treaties. 

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1. 

2. 

3. 

4. 

1. 

2. 

Chapter III 
Information, certification and exportation after transfer 

Article 8 
Information by suppliers 

Member  States  shall  ensure  that  suppliers  of  defence-related  products  inform 
recipients of the terms and conditions of the transfer licence relating to the export of 
the defence related products. 

Member  States  shall  ensure  that  suppliers  notify  the  competent  authorities  of  their 
intention to use a general transfer licence for the first time. 

Member States shall ensure that suppliers keep detailed records of their transfers, in 
accordance with the practice in force in the respective Member State. Such records 
shall include commercial documents containing the following information: 

(a) 

the description of the defence-related product; 

(b) 

the quantity of the defence-related product and the dates of transfer; 

(c) 

the name and address of the supplier and of the recipient; 

(d)  where known, the end-use and end-user of the defence-related product; 

(e) 

proof that the information on an export limitation attached to a transfer licence 
has been transmitted to a recipient of defence related products. 

The records referred to in paragraph 3 shall be kept for at least three years from the 
end of the calendar year in which the transfer took place. They shall be provided on 
request  of  the  competent  authorities  of  the  Member  State  in  which  the  supplier  is 
established. 

Article 9 
Certification 

Member States shall designate competent authorities to carry out the certification of 
recipients established on their respective territories. 

The  certification  shall  establish  in  particular  the  capacity  of  a  recipient  to  observe 
export limitations of defence-related products received under a transfer licence from 
another Member State according to the following criteria: 

(a) 

proven  experience  and  reputation  in  defence  activities,  in  particular  by 
authorisation  to  produce  and  commercialise  defence  related  products  and  by 
employment of experienced management staff; 

(b) 

relevant industrial activity in defence related products within the Community, 
in particular capacity of system/sub-system integration; 

EN 

18 

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(c) 

(d) 

(e) 

the  appointment  of  a  senior  executive  as  the  dedicated  officer  personally 
responsible for transfers and exports; 

a written commitment of the company, signed by the senior executive referred 
to in point c), that his company will take all the necessary steps to observe and 
enforce  all  specific  conditions  related  to  end-use  and  export  of  any  specific 
received component or product; 

a written commitment of the company, signed by the senior executive referred 
to  in  point  c),  to  provide  to  the  competent  authorities  with  due  diligence 
detailed information in response to requests and inquiries concerning the end-
users  or  end-use  of  all  products  exported,  transferred  or  received  under  a 
transfer licence from another Member State by the company; 

(f) 

a description, countersigned by the senior executive referred to in point c), of 
the  internal  compliance  programme,  or  the  export  management  system, 
implemented in the company. 

The description referred to in point f) of the first subparagraph shall provide details 
of the organisational, human and technical resources allocated to the management of 
transfers and exports, the chain of responsibility in the company’s structure, internal 
audit procedures, awareness-raising and staff training, physical and technical security 
arrangements, record-keeping and traceability of the transfers and exports. 

3. 

Certificates shall contain the following information: 

(a) 

the competent authority issuing the certificate; 

(b) 

the name and address of the recipient; 

(c) 

a  statement  of  the  conformity  of  the  recipient  with  the  criteria  referred  to  in 
paragraph 2; 

(d) 

the date of issue and the period of validity of the certificate. 

For  the  purposes  of  point  (d),  the  duration  of  the  certificate  shall  in  any  case  not 
exceed 5 years. 

4. 

Certificates may contain further conditions relating to the following: 

(a) 

the  provision  of  information  required  for  the  verification  of  compliance  with 
the common criteria; 

(b) 

the suspension or revocation of the certificate. 

5. 

Competent  authorities  shall  regularly  monitor  compliance  of  the  recipient  with  the 
criteria referred to in paragraph 2, and with any condition attached to the certificates 
referred to in paragraph 4. 

6. 

Member States shall recognise any certificates issued in another Member State. 

EN 

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7. 

8. 

1. 

2. 

. 

1. 

2. 

If  a  competent  authority  finds  that  the  holder  of  a  certificate  established  on  the 
territory of the respective Member State no longer satisfies the criteria referred to in 
paragraph  2  and  any  conditions  referred  to  in  paragraph 4,  it  shall  take  appropriate 
measures.  Such  measures  may  include  revocation  of  the  certificate.  The  competent 
authority shall inform the Commission and the other Member States of its decision. 

Member  States  shall  publish  und  update  regularly  a  list  of  certified  recipients  and 
inform the Commission and the other Member States thereof. 

The Commission shall make publicly available this information on its Web-site. 

Article 10 
Export limitations 

Member  States  shall  ensure  that  recipients  of  defence  related  products,  when 
applying for an export licence, confirm to the competent authorities, in cases where 
such  products  received  under  a  transfer  licence  from  another  Member  State  have 
export  limitations  attached  to  them,  that  they  have  respected  the  terms  of  those 
limitations. 

Where  consent  from  the  originating  Member  State  for  the  contemplated  export  is 
required  but  has  not  been  obtained,  Member  States  shall  consult  the  originating 
Member State. 

Chapter IV 
Customs and administrative cooperation 

Article 11 
Customs cooperation 

Member  States  shall  ensure  that,  when  completing  the  formalities  for  the  export  of 
defence-related  products  at  the  customs  office  responsible  for  handling  the  export 
declaration,  the  exporter  shall  furnish  proof  that  any  necessary  export  licence  has 
been obtained. 

Without  prejudice  to  Council  Regulation  (EC)  no  2913/9212,  a  Member  State  may 
also,  for  a  period  not  exceeding  30  days,  suspend  the  process  of  export  from  its 
territory,  or,  if  necessary,  otherwise  prevent  the  defence  related  products  received 
from  another  Member  State  under  a  transfer  licence  and  incorporated  in  another 
defence  related  product  from  leaving  the  Community  from  its  territory,  where  it 
considers that: 

12 

OJ L 302, 19.10.1992, p. 1. 

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(a) 

relevant information on limitations of export to third countries concerning the 
defence  related  products  included  in  the  transfer  licence,  was  not  taken  into 
account when the export licence was granted; 

(b) 

circumstances have materially changed since the grant of the export licence. 

3. 

4. 

Member  States  may  provide  that  customs  formalities  for  the  export  of  defence 
related products may be completed only at certain customs offices. 

Member States availing themselves of the option set out in paragraph 3 shall inform 
the  Commission  of  the  empowered  customs  offices.  The  Commission  shall  publish 
that information in the C series of the Official Journal of the European Union. 

Article 12 
Exchange of information 

Acting in liaison with the Commission, Member States shall take all appropriate measures to 
establish direct cooperation and exchange of information between competent authorities. 

Chapter V 
Updating of List of defence related products 

Article 13 
Adaptation of the Annex 

1. 

2. 

1. 

2. 

The  Commission  shall  update  the  list  of  defence-related  products  set  out  in  the 
Annex in conformity with the Common Military List of the European Union. 

Those measures designed to amend non-essential elements of this directive shall be 
adopted  in  accordance  with  the  regulatory  procedure  with  scrutiny  referred  to  in 
Article 14(2). 

Article 14 
Committee 

The Commission shall be assisted by a committee. 

Where  reference  is  made  to  this  paragraph,  Articles  5a(1)  to  (4),  and  Article  7  of 
Decision  1999/468/EC  shall  apply,  having  regard  to  the  provisions  of  Article  8 
thereof. 

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Chapter VI 
Final provisions 

Article 15 
Safeguard measures 

1. 

2. 

1. 

2. 

1. 

If  a  licensing  Member  State  considers  that  there  is  a  serious  risk  that  any  certified 
recipient in another receiving Member State will not respect any condition attached 
to  a  general  transfer  licence,  it  shall  inform  the  other  Member  State  and  request 
evaluation of the situation. 

In case the doubts continue to persist, the Member State may provisionally suspend 
the  effect  of  its  general  transfer  licence  with  regard  to  such  companies.  It  shall 
inform the other Member States and the Commission of the reasons for the safeguard 
measure. The Member State which issued the safeguard measure may decide to lift 
the safeguard measure if it considers that it is not longer justified. 

Article 16 
Reporting 

The Commission shall report on such measures taken by Member States in view of 
the  transposition  of  this  directive,  and  in  particular  of  Articles  9-12,  15  thereof,  by 
[12 months of the date of transposition of the directive]. 

The Commission shall, beginning not later than [5 years after the date of entry into 
force of this directive], submit regularly a report to the European Parliament and the 
Council on the implementation of the directive and its impact on developments of the 
European  defence  equipment  market  and  the  European  defence  technological  and 
industrial base, accompanied by a legislative proposal, where appropriate. 

Article 17 
Transposition 

Member States shall adopt and publish, by [date of entry into force + 18 months] at 
the  latest,  the  laws,  regulations  and  administrative  provisions  necessary  to  comply 
with this directive. They shall forthwith communicate to the Commission the text of 
those provisions and a correlation table between those provisions and this directive. 

They shall apply those provisions from [date of entry into force + 36 months]. 

When  Member  States  adopt  those  provisions,  they  shall  contain  a  reference  to  this 
directive  or  be  accompanied  by  such  a  reference  on  the  occasion  of  their  official 
publication. Member States shall determine how such reference is to be made. 

2. 

Member States shall communicate to the Commission the text of the main provisions 
of national law which they adopt in the field covered by this directive. 

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Article 18 
Entry into force 

This directive shall enter into force on the twentieth day following that of its publication in 
the Official Journal of the European Union. 

Article 19 
Addressees 

This directive is addressed to the Member States. 

Done at Brussels, […] 

For the European Parliament 
The President 

For the Council 
The President 

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ANNEX 

List of defence related products 

ML1 

Smooth-bore  weapons  with  a  calibre  of  less  than  20  mm,  other  arms  and 
automatic  weapons  with  a  calibre  of  12,7  mm  (calibre  0,50  inches)  or  less  and 
accessories, as follows, and specially designed components therefor: 

a. 

Rifles, carbines, revolvers, pistols, machine pistols and machine guns: 

Note  ML1.a. does not control the following: 

1.  Muskets, rifles and carbines manufactured earlier than 1938; 

2. 

3. 

Reproductions of muskets, rifles and carbines the originals of which were 
manufactured earlier than 1890; 

Revolvers, pistols and machine guns manufactured earlier than 1890, and 
their reproductions; 

b. 

Smooth-bore weapons, as follows:  

1. 

Smooth-bore weapons specially designed for military use; 

2.  Other smooth-bore weapons, as follows: 

a.  Of the fully automatic type; 

b.  Of the semi-automatic or pump-action type; 

Weapons using caseless ammunition; 

Silencers,  special  gun-mountings,  clips,  weapons  sights  and  flash  suppressers  for 
arms controlled by sub-items ML1.a., ML1.b. or ML1.c. 

c. 

d. 

Note 1  ML1 does not control smooth-bore weapons used for hunting or sporting purposes. 
These  weapons  must  not  be  specially  designed  for  military  use  or  of  the  fully 
automatic firing type. 

Note 2  ML1 does not control firearms specially designed for dummy ammunition and which 

are incapable of firing any controlled ammunition. 

Note 3  ML1  does  not  control  weapons  using  non-centre  fire  cased  ammunition  and  which 

are not of the fully automatic firing type. 

Note 4  ML1.d. does not control optical weapon sights without electronic image processing, 
with a magnification of 4 times or less, provided they are not specially designed or 
modified for military use. 

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ML2 

SMOOTH-BORE  WEAPONS  WITH  A  CALIBRE  OF 20  MM  OR  MORE,  OTHER  WEAPONS 
OR  ARMAMENT  WITH  A  CALIBRE  GREATER  THAN 12,7  MM (CALIBRE 0,50  INCHES), 
PROJECTORS  AND  ACCESSORIES,  AS  FOLLOWS,  AND  SPECIALLY  DESIGNED 
COMPONENTS THEREFOR: 

a. 

Guns,  howitzers,  cannon,  mortars,  anti-tank  weapons,  projectile  launchers,  military 
flame throwers, rifles, recoilless rifles, smooth-bore weapons and signature reduction 
devices therefor; 

Note 1 

ML2.a.  includes  injectors,  metering  devices,  storage  tanks  and  other 
specially designed components for use with liquid propelling charges for 
any of the equipment controlled by ML2.a. 

Note 2 

ML2.a. does not control the following: 

1.  Muskets, rifles and carbines manufactured earlier than 1938; 

2. 

Reproductions  of  muskets,  rifles  and  carbines  the  originals  of 
which were manufactured earlier than 1890. 

b. 

Military smoke, gas and pyrotechnic projectors or generators; 

Note  ML2.b. does not control signal pistols. 

c. 

Weapons sights. 

ML3  AMMUNITION AND FUSE SETTING DEVICES, AS FOLLOWS, AND SPECIALLY DESIGNED 

THEREFOR: 

a. 

b. 

Ammunition for the weapons controlled by ML1, ML2 or ML12; 

Fuse setting devices specially designed for ammunition controlled by ML3.a. 

Note 1 

Specially designed components include: 

a.  Metal or plastic fabrications such as primer anvils, bullet cups, cartridge links, 

rotating bands and munitions metal parts; 

b. 

c. 

d. 

e. 

Safing and arming devices, fuses, sensors and initiation devices; 

Power supplies with high one-time operational output; 

Combustible cases for charges; 

Submunitions including bomblets, minelets and terminally guided projectiles. 

Note 2 

ML3.a.  does  not  control  ammunition  crimped  without  a  projectile 
(blankstar) and dummy ammunition with a pierced powder chamber. 

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Note 3 

ML3.a.  does  not  control  cartridges  specially  designed  for  any  of  the 
following purposes: 

a. 

b. 

c. 

Signalling; 

Bird scaring; or 

Lighting of gas flares at oil wells. 

ML4  BOMBS,  TORPEDOES,  ROCKETS,  MISSILES,  OTHER  EXPLOSIVE  DEVICES  AND 
CHARGES  AND  RELATED  EQUIPMENT  AND  ACCESSORIES,  AS  FOLLOWS,  SPECIALLY 
DESIGNED FOR MILITARY USE, AND SPECIALLY DESIGNED COMPONENTS THEREFOR: 

NB: 

For guidance and navigation equipment, see ML11, Note 7. 

a. 

Bombs,  torpedoes,  grenades,  smoke  canisters,  rockets,  mines,  missiles,  depth 
charges,  demolition-charges,  demolition-devices  and  demolition-kits,  ‘pyrotechnic’ 
devices,  cartridges  and  simulators  (i.e.  equipment  simulating  the  characteristics  of 
any of these items); 

Note  ML4.a. includes: 

1. 

Smoke grenades, fire bombs, incendiary bombs and explosive devices; 

2.  Missile rocket nozzles and re-entry vehicle nosetips. 

b. 

Equipment  specially  designed  for  the  handling,  control,  activation,  powering  with 
one-time  operational  output,  launching,  laying,  sweeping,  discharging,  decoying, 
jamming, detonation or detection of items controlled by ML4.a. 

Note  ML4.b. includes: 

1.  Mobile  gas  liquefying  equipment  capable  of  producing  1  000  kg  or  more  per 

day of gas in liquid form; 

2. 

Buoyant electric conducting cable suitable for sweeping magnetic mines. 

Technical Note 

Hand-held  devices,  limited  by  design  solely  to  the  detection  of  metal  objects  and 
incapable  of  distinguishing  between  mines  and  other  metal  objects,  are  not 
considered to be specially designed for the detection of items controlled by ML4.a. 

ML5  FIRE CONTROL, AND RELATED ALERTING AND WARNING EQUIPMENT, AND RELATED 
SYSTEMS,  TEST  AND  ALIGNMENT  AND  COUNTERMEASURE  EQUIPMENT,  AS 
FOLLOWS,  SPECIALLY  DESIGNED  FOR  MILITARY  USE,  AND  SPECIALLY  DESIGNED 
COMPONENTS AND ACCESSORIES THEREFOR: 

a. 

Weapon  sights,  bombing  computers,  gun  laying  equipment  and  weapon  control 
systems; 

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b. 

c. 

d. 

Target  acquisition,  designation,  range-finding,  surveillance  or  tracking  systems; 
detection, data fusion, recognition or identification equipment; and sensor integration 
equipment; 

Countermeasure equipment for items controlled by ML5.a. or ML5.b.; 

Field test or alignment equipment, specially designed for items controlled by ML5.a. 
or ML5.b. 

ML6  GROUND VEHICLES AND COMPONENTS, AS FOLLOWS: 

NB: 

For guidance and navigation equipment, see ML11, Note 7. 

a. 

b. 

Ground  vehicles  and  components  therefor,  specially  designed  or  modified  for 
military use; 

Technical Note 

For the purposes of ML6.a. the term ground vehicles includes trailers. 

All-wheel  drive  vehicles  capable  of  off-road  use  which  have  been  manufactured  or 
fitted  with  materials  to  provide  ballistic  protection  to  level  III  (NIJ  0108.01, 
September 1985, or comparable national standard) or better. 

NB: 

See also ML13.a. 

Note 1 

ML6.a. includes: 

a. 

Tanks  and  other  military  armed  vehicles  and  military  vehicles  fitted  with 
mountings for arms or equipment for mine laying or the launching of munitions 
controlled under ML4; 

b.  Armoured vehicles; 

c.  Amphibious and deep water fording vehicles; 

d. 

Recovery  vehicles  and  vehicles  for  towing  or  transporting  ammunition  or 
weapon systems and associated load handling equipment. 

Note 2 

Modification  of  a  ground  vehicle  for  military  use  controlled  by  ML6.a. 
entails  a  structural,  electrical  or  mechanical  change  involving  one  or 
more specially designed military components. Such components include: 

a. 

Pneumatic tyre casings of a kind specially designed to be bulletproof or to run 
when deflated; 

b. 

Tyre inflation pressure control systems, operated from inside a moving vehicle; 

c.  Armoured protection of vital parts, (e.g. fuel tanks or vehicle cabs); 

d. 

Special reinforcements or mountings for weapons; 

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e. 

Blackout lighting. 

Note 3 

ML6 does not control civil automobiles, or trucks designed or modified 
for  transporting  money  or  valuables,  having  armoured  or  ballistic 
protection. 

ML7  CHEMICAL  OR  BIOLOGICAL  TOXIC  AGENTS, 

‘RIOT  CONTROL  AGENTS’, 
RADIOACTIVE  MATERIALS,  RELATED  EQUIPMENT,  COMPONENTS  AND  MATERIALS 
AS FOLLOWS: 

a. 

Biological  agents  and  radioactive  materials  ‘adapted  for  use  in  war’  to  produce 
casualties  in  humans  or  animals,  degrade  equipment  or  damage  crops  or  the 
environment; 

b. 

Chemical warfare (CW) agents including: 

1. 

CW nerve agents: 

a.  O-Alkyl (equal to or less than C10, including cycloalkyl) alkyl (Methyl, 

Ethyl, n-Propyl or Isopropyl) — phosphonofluoridates, such as: 

Sarin  (GB):O-Isopropyl  methylphosphonofluoridate  (CAS  107-44-8); 
and 

Soman (GD):O-Pinacolyl methylphosphonofluoridate (CAS 96-64-0); 

b.  O-Alkyl  (equal  to  or  less  than  C10,  including  cycloalkyl)  N,N-dialkyl 
(Methyl,  Ethyl,  n-Propyl  or  Isopropyl)  phosphoramidocyanidates,  such 
as: 

Tabun  (GA):O-Ethyl  N,N-dimethylphosphoramidocyanidate  (CAS  77-
81-6); 

c.  O-Alkyl  (H  or  equal  to  or  less  than  C10,  including  cycloalkyl)  S-2-
dialkyl (Methyl, Ethyl,n-Propyl or Isopropyl)-aminoethyl alkyl (Methyl, 
Ethyl,  n-Propyl  or  Isopropyl)  phospho-nothiolates  and  corresponding 
alkylated and protonated salts, such as:  

VX: O-Ethyl S-2-diisopropylaminoethyl methyl phosphonothiolate (CAS 
50782-69-9); 

2. 

CW vesicant agents: 

a. 

Sulphur mustards, such as: 

1. 

2. 

3. 

2-Chloroethylchloromethylsulphide (CAS 2625-76-5); 

Bis(2-chloroethyl) sulphide (CAS 505-60-2); 

Bis(2-chloroethylthio) methane (CAS 63869-13-6); 

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28 

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4. 

5. 

6. 

7. 

8. 

9. 

1,2-bis (2-chloroethylthio) ethane (CAS 3563-36-8); 

1,3-bis (2-chloroethylthio) -n-propane (CAS 63905-10-2); 

1,4-bis (2-chloroethylthio) -n-butane (CAS 142868-93-7); 

1,5-bis (2-chloroethylthio) -n-pentane (CAS 142868-94-8); 

Bis (2-chloroethylthiomethyl) ether (CAS 63918-90-1); 

Bis (2-chloroethylthioethyl) ether (CAS 63918-89-8); 

b. 

Lewisites, such as: 

1. 

2. 

3. 

2-chlorovinyldichloroarsine (CAS 541-25-3); 

Tris (2-chlorovinyl) arsine (CAS 40334-70-1); 

Bis (2-chlorovinyl) chloroarsine (CAS 40334-69-8); 

c.  Nitrogen mustards, such as: 

1.  HN1: bis (2-chloroethyl) ethylamine (CAS 538-07-8); 

2.  HN2: bis (2-chloroethyl) methylamine (CAS 51-75-2); 

3.  HN3: tris (2-chloroethyl) amine (CAS 555-77-1); 

3. 

CW incapacitating agents, such as: 

a. 

3-Quinuclidinyl benzilate (BZ) (CAS 6581-06-2); 

4. 

CW defoliants, such as: 

a. 

b. 

Butyl 2-chloro-4-fluorophenoxyacetate (LNF); 

2,4,5-trichlorophenoxyacetic acid mixed with 2,4-dichlorophenoxyacetic 
acid (Agent Orange). 

c. 

CW binary precursors and key precursors, as follows: 

1.  Alkyl 

(Methyl,  Ethyl,  n-Propyl  or 

Isopropyl)  Phosphonyl 

Difluorides, such as: 

DF: Methyl Phosphonyldifluoride (CAS 676-99-3); 

2.  O-Alkyl (H or equal to or less than C10, including cycloalkyl) O-2-
dialkyl  (Methyl,  Ethyl,  n-Propyl  or  Isopropyl)  aminoethyl  alkyl 
(Methyl,  Ethyl,  n-Propyl  or 
Isopropyl)  phosphonites  and 
corresponding alkylated and protonated salts, such as: 

QL:  O-Ethyl-2-di-isopropylaminoethyl  methylphosphonite  (CAS 

57856-11-8); 

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29 

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3. 

4. 

Chlorosarin:  O-Isopropyl  methylphosphonochloridate  (CAS  1445-
76-7); 

Chlorosoman:  O-Pinacolyl  methylphosphonochloridate 
7040-57-5); 

(CAS 

d. 

‘Riot  control  agents’,  active  constituent  chemicals  and  combinations 
thereof, including: 

1. 

2. 

3. 

α-Bromobenzeneacetonitrile,  (Bromobenzyl  cyanide)  (CA)  (CAS 
5798-79-8); 

[(2-chlorophenyl) 
Chlorobenzylidenemalononitrile (CS) (CAS 2698-41-1); 

propanedinitrile, 

methylene] 

(o-

2-Chloro-1-phenylethanone, 
Phenylacyl 
chloroacetophenone) (CN) (CAS 532-27-4); 

chloride 

(ω-

4.  Dibenz-(b,f)-1,4-oxazephine, (CR) (CAS 257-07-8); 

5. 

10-Chloro-5,10-dihydrophenarsazine, 
(Adamsite), (DM) (CAS 578-94-9); 

(Phenarsazine 

chloride), 

6.  N-Nonanoylmorpholine, (MPA) (CAS 5299-64-9); 

Note 1 

Note 2 

ML7.d.  does  not  control  ‘riot  control  agents’  individually 
packaged for personal self-defence purposes; 

ML7.d.  does  not  control  active  constituent  chemicals  and 
combinations  thereof  identified  and  packaged  for  food 
production or medical purposes. 

e. 

Equipment  specially  designed  or  modified  for  military  use,  for  the 
dissemination of any of the following and specially designed components 
therefor: 

1.  Materials or agents controlled by ML7.a., ML7.b. or ML7d.; or 

2. 

CW made up of precursors controlled by ML7.c. 

f. 

and  decontamination 

Protective 
specially  designed 
components  therefor,  and  specially  formulated  chemical  mixtures,  as 
follows: 

equipment, 

1. 

2. 

Equipment  specially  designed  or  modified  for  military  use,  for 
defence against materials controlled by ML7.a., ML7.b. or ML7.d. 
and specially designed components therefore. 

Equipment specially designed or modified or modified for military 
use, for the decontamination of objects contaminated with materials 
controlled  by  ML7.a.  or  ML7.b.  and  specially  designed 
components therefore. 

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3. 

Chemical  mixtures  specially  developed/formulated 
the 
decontamination of objects contaminated with materials controlled 
by ML7.a. or ML7.b. 

for 

Note  ML7.f.1. includes: 

a.  Air  conditioning  units  specially  designed  or  modified  for 

nuclear, biological or chemical filtration; 

b. 

Protective clothing. 

NB:  For civil gas masks, protective and decontamination equipment see 

also entry 1A004 on the EU Dual-Use List. 

g. 

Equipment  specially  designed  or  modified  for  military  use,  for  the 
detection or identification of materials controlled by ML7.a. or ML7.b. or 
ML7.d. and specially designed components therefor; 

Note  ML7.g. does not control personal radiation monitoring dosimeters. 

NB:  See also entry 1A004 on the EU Dual-Use List. 

h. 

i. 

‘Biopolymers’  specially  designed  or  processed  for  the  detection  or 
identification  of  CW  agents  controlled  by  ML7.b.,  and  the  cultures  of 
specific cells used to produce them; 

‘Biocatalysts’ for the decontamination or degradation of CW agents, and 
biological systems therefor, as follows: 

1. 

2. 

‘Biocatalysts’  specially  designed  for  the  decontamination  or 
degradation  of  CW  agents  controlled  by  ML7.b.  resulting  from 
directed laboratory  selection or genetic manipulation of biological 
systems; 

Biological  systems,  as  follows:  ‘expression  vectors’,  viruses  or 
cultures  of  cells  containing  the  genetic  information  specific  to  the 
production of ‘biocatalysts’ controlled by ML7.i.1.; 

Note 1 

ML7.b. and ML7.d. do not control: 

a. 

Cyanogen  chloride  (CAS  506-77-4).  See  1C450.a.5.  on  the  EU 
Dual-Use List; 

b.  Hydrocyanic acid (CAS 74-90-8); 

c. 

d. 

Chlorine (CAS 7782-50-5); 

Carbonyl  chloride  (phosgene)  (CAS  75-44-5).  See  1C450.a.4.  on 
the EU Dual-Use List; 

e.  Diphosgene (trichloromethyl-chloroformate) (CAS 503-38-8); 

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31 

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f. 

Deleted; 

g.  Xylyl bromide, ortho: (CAS 89-92-9), meta: (CAS 620-13-3), para: 
104-81-4); 

(CAS 
h.  Benzyl bromide (CAS 100-39-0); 

i. 

j. 

Benzyl iodide (CAS 620-05-3); 

Bromo acetone (CAS 598-31-2); 

k. 

Cyanogen bromide (CAS 506-68-3); 

l. 

Bromo methylethylketone (CAS 816-40-0); 

m.  Chloro acetone (CAS 78-95-5); 

n. 

o. 

p. 

Note 2 

Ethyl iodoacetate (CAS 623-48-3); 

Iodo acetone (CAS 3019-04-3); 

Chloropicrin  (CAS  76-06-2).  See  1C450.a.7.  on  the  EU  Dual-Use 
List. 

The  cultures  of  cells  and  biological  systems  listed  in  ML7.h.  and 
ML7.i.2. are exclusive and these sub items do not control cells or 
biological  systems  for  civil  purposes,  such  as  agricultural, 
pharmaceutical,  medical,  veterinary, 
environmental,  waste 
management, or in the food industry. 

ML8 

‘ENERGETIC MATERIALS’, AND RELATED SUBSTANCES, AS FOLLOWS: 

NB:  See also 1C011 on the EU Dual-Use List. 

Technical Notes 

1. 

substance being listed in the ML8 sub-items. 

2.  Any substance listed in the ML8 sub-items is controlled by this list, even when 
is 
than 
utilised 
predominantly used as an explosive but can also be used either as a fuel or an 
oxidizer.) 

in  an  application  other 

indicated.  (e.g.  TAGN 

that 

a. 

‘Explosives’, as follows, and mixtures thereof: 

1.  ADNBF 

(aminodinitrobenzofuroxan 

or 

7-amino-4,6-

dinitrobenzofurazane-1-oxide) (CAS 97096-78-1); 

2. 

3. 

BNCP  (cis-bis  (5-nitrotetrazolato)  tetra  amine-cobalt  (III)  perchlorate) 
(CAS 117412-28-9); 

CL-14 
or 
dinitrobenzofurazane-1-oxide) (CAS 117907-74-1); 

dinitrobenzofuroxan 

(diamino 

5,7-diamino-4,6-

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4. 

5. 

CL-20  (HNIW  or  Hexanitrohexaazaisowurtzitane)  (CAS  135285-90-4); 
chlathrates of CL-20 (see also ML8.g.3. and g.4. for its ‘precursors’); 

CP  (2-(5-cyanotetrazolato)  penta  amine-cobalt  (III)  Perchlorate)  (CAS 
70247-32-4); 

6.  DADE (l,l-diamino-2,2-dinitroethylene, FOX7); 

7.  DATB (diaminotrinitrobenzene) (CAS 1630-08-6); 

8.  DDFP (1,4-dinitrodifurazanopiperazine); 

9.  DDPO (2,6-diamino-3,5-dinitropyrazine-l-oxide, PZO) (CAS 194486-77-

6); 

10.  DIPAM  (3,3'-diamino-2,2',4,4',6,6'-hexanitrobiphenyl  or  dipicramide) 

(CAS 17215-44-0); 

11.  DNGU (DINGU or dinitroglycoluril) (CAS 55510-04-8); 

12.  Furazans, as follows: 

a.  DAAOF (diaminoazoxyfurazan); 

b.  DAAzF (diaminoazofurazan) (CAS 78644-90-3); 

13.  HMX and derivatives (see also ML8.g.5. for its ‘precursors’), as follows: 

a.  HMX 

(Cyclotetramethylenetetranitramine, 

tetranitro-l,3,5,7-tetrazine, 
cyclooctane, octogen or octogene) (CAS 2691-41-0); 

octahydro-l,3,5,7-
l,3,5,7-tetranitro-l,3,5,7-tetraza-

b. 

difluoroaminated analogs of HMX; 

c.  K-55  (2,4,6,8-tetranitro-2,4,6,8-tetraazabicyclo  [3,3,0]-octanone-3, 
tetranitrosemiglycouril  or  keto-bicyclic  HMX)  (CAS  130256-72-
3); 

14.  HNAD (hexanitroadamantane) (CAS 143850-71-9); 

15.  HNS (hexanitrostilbene) (CAS 20062-22-0); 

16. 

Imidazoles, as follows: 

a. 

BNNII (Octahydro-2,5-bis(nitroimino)imidazo [4,5-d]imidazole); 

b.  DNI (2,4-dinitroimidazole) (CAS 5213-49-0); 

c. 

FDIA (l-fluoro-2,4-dinitroimidazole); 

d.  NTDNIA (N-(2-nitrotriazolo)-2,4-dinitroimidazole); 

e. 

PTIA (l-picryl-2,4,5-trinitroimidazole); 

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17.  NTNMH (l-(2-nitrotriazolo)-2-dinitromethylene hydrazine); 

18.  ΝΤΟ (ONTA or 3-nitro-l,2,4-triazol-5-one) (CAS 932-64-9); 

19.  Polynitrocubanes with more than four nitro groups; 

20.  PYX (2,6-Bis(picrylamino)-3,5-dinitropyridine) (CAS 38082-89-2); 

21.  RDX and derivatives, as follows: 

a. 

RDX  (cyclotrimethylenetrinitramine,  cyclonite,  T4,  hexahydro-
l,3,5-trinitro-l,3,5-triazine, 
l,3,5-trinitro-l,3,5-triaza-cyclohexane, 
hexogen or hexogene) (CAS 121-82-4); 

b.  Keto-RDX  (K-6  or  2,4,6-trinitro-2,4,6-triazacyclohexanone)  (CAS 

115029-35-1); 

22.  TAGN (triaminoguanidinenitrate) (CAS 4000-16-2); 

23.  TATB (triaminotrinitrobenzene) (CAS 3058-38-6) (see also ML8.g.7 for 

its ‘precursors’); 

24.  TEDDZ 

(3,3,7,7-tetrabis(difluoroamine) 

octahydro-l,5-dinitro-l,5-

diazocine); 

25.  Tetrazoles, as follows: 

a.  NTAT (nitrotriazol aminotetrazole); 

b.  NTNT (l-N-(2-nitrotriazolo)-4-nitrotetrazole); 

26.  Tetryl (trinitrophenylmethylnitramine) (CAS 479-45-8); 

27.  TNAD  (l,4,5,8-tetranitro-l,4,5,8-tetraazadecalin)  (CAS  135877-16-6) 

(see also ML8.g.6. for its ‘precursors’); 

28.  TNAZ (1,3,3-trinitroazetidine) (CAS 97645-24-4) (see also ML8.g.2. for 

its ‘precursors’); 

29.  TNGU (SORGUYL or tetranitroglycoluril) (CAS 55510-03-7); 

30.  TNP (l,4,5,8-tetranitro-pyridazino[4,5-d]pyridazine) (CAS 229176-04-9); 

31.  Triazines, as follows: 

a.  DNAM (2-oxy-4,6-dinitroamino-s-triazine) (CAS 19899-80-0); 

b.  NNHT 

(2-nitroimino-5-nitro-hexahydro-l,3,5-triazine) 

(CAS 

130400-13-4); 

32.  Triazoles, as follows: 

a. 

5-azido-2-nitrotriazole; 

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b.  ADHTDN 

(4-amino-3,5-dihydrazino-l,2,4-triazole  dinitramide) 

(CAS 1614-08-0); 

c.  ADNT (l-amino-3,5-dinitro-l,2,4-triazole); 

d. 

BDNTA ([bis-dinitrotriazole]amine); 

e.  DBT (3,3'-dinitro-5,5-bi-l,2,4-triazole) (CAS 30003-46-4); 

f. 

DNBT (dinitrobistriazole) (CAS 70890-46-9); 

g.  NTDNA (2-nitrotriazole 5-dinitramide) (CAS 75393-84-9); 

h.  NTDNT (1-N-(2-nitrotriazolo) 3,5-dinitrotriazole); 

i. 

j. 

PDNT (1-picryl-3,5-dinitrotriazole); 

TACOT (tetranitrobenzotriazolobenzotriazole) (CAS 25243-36-1); 

33.  Any explosive not listed elsewhere in ML8.a. with a detonation velocity 
exceeding  8  700  m/s  at  maximum  density  or  a  detonation  pressure 
exceeding 34 GPa (340 kbar); 

34.  Other  organic  explosives  not  listed  elsewhere  in  ML8.a.  yielding 
detonation pressures of 25 GPa (250 kbar) or more that will remain stable 
at temperatures of 523 K (250 °C) or higher for periods of five minutes 
or longer. 

b. 

‘Propellants’, as follows: 

1.  Any United Nations (UN) Class 1.1 solid ‘propellant’ with a theoretical 
specific  impulse  (under  standard  conditions)  of  more  than  250  seconds 
for  non-metallised,  or  more 
for  aluminised 
compositions; 

than  270  seconds 

2.  Any  UN  Class  1.3  solid  ‘propellant’  with  a  theoretical  specific  impulse 
(under  standard  conditions)  of  more  than  230  seconds  for  non-
halogenised,  250  seconds  for  non-metallised  compositions  and  266 
seconds for metallised compositions; 

3. 

4. 

‘Propellants’ having a force constant of more than 1 200 kJ/kg; 

‘Propellants’  that  can  sustain  a  steady-state  linear  burning  rate  of  more 
than 38 mm/s under standard conditions (as measured in the form of an 
inhibited  single  strand)  of  6,89  MPa  (68,9  bar)  pressure  and  294  K  (21 
°C); 

5. 

Elastomer  modified  cast  double  base  (EMCDB)  ‘propellants’  with 
extensibility at maximum stress of more than 5 % at 233 K (-40 °C); 

6.  Any ‘propellant’ containing substances listed in ML8.a. 

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c. 

‘Pyrotechnics’, fuels and related substances, as follows, and mixtures thereof: 

1.  Aircraft fuels specially formulated for military purposes; 

2.  Alane (aluminum hydride) (CAS 7784-21-6); 

3. 

Carboranes;  decaborane  (CAS  17702-41-9);  pentaboranes  (CAS  19624-
22-7 and 18433-84-6) and their derivatives; 

4.  Hydrazine  and  derivatives,  as  follows  (see  also  ML8.d.8.  and  d.9.  for 

oxidising hydrazine derivatives): 

a.  Hydrazine (CAS 302-01-2) in concentrations of 70 % or more; 

b.  Monomethyl hydrazine (CAS 60-34-4); 

c. 

Symmetrical dimethyl hydrazine (CAS 540-73-8); 

d.  Unsymmetrical dimethyl hydrazine (CAS 57-14-7); 

5.  Metal  fuels  in  particle  form  whether  spherical,  atomised,  spheroidal, 
flaked or ground, manufactured from material consisting of 99 % or more 
of any of the following: 

a.  Metals and mixtures thereof, as follows: 

1. 

2. 

Beryllium  (CAS  7440-41-7)  in  particle  sizes  of  less  than  60 
μm; 

Iron  powder  (CAS  7439-89-6)  with  particle  size  of  3  μm  or 
less produced by reduction of iron oxide with hydrogen; 

b.  Mixtures, which contain any of the following: 

1. 

2. 

Zirconium  (CAS  7440-67-7),  magnesium  (CAS  7439-95-4) 
or alloys of these in particle sizes of less than 60 μm; 

Boron (CAS 7440-42-8) or boron carbide (CAS 12069-32-8) 
fuels of 85 % purity or higher and particle sizes of less than 
60 μm; 

6.  Military  materials  containing  thickeners  for  hydrocarbon  fuels  specially 
formulated  for  use  in  flame-throwers  or  incendiary  munitions,  such  as 
metal stearates or palmates (e.g. octal (CAS 637-12-7)) and M1, M2, and 
M3 thickeners; 

7. 

8. 

Perchlorates,  chlorates  and  chromates  composited  with  powdered  metal 
or other high energy fuel components; 

Spherical aluminum powder (CAS 7429-90-5) with a particle size of 60 
μm or less, manufactured from material with an aluminum content of 99 
% or more; 

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36 

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9. 

Titanium  subhydride  (TiHn)  of  stoichiometry  equivalent  to  n  =  0,65  to 
1,68. 

Note 1 

Note 2 

Note 3 

Aircraft fuels controlled by ML8.c.1. are finished products not their 
constituents. 

ML8.c.4.a.  does  not  control  hydrazine  mixtures  specially 
formulated for corrosion control. 

Explosives  and  fuels  containing  the  metals  or  alloys  listed  in 
ML8.c.5.  are  controlled  whether  or  not  the  metals  or  alloys  are 
encapsulated in aluminum, magnesium, zirconium, or beryllium. 

Note 4 

ML8.c.5.b.2.  does  not  control  boron  and  boron  carbide  enriched 
with boron-10 (20 % or more of total boron-10 content). 

d.  Oxidizers, as follows, and mixtures thereof: 

1.  ADN (ammonium dinitramide or SR 12) (CAS 140456-78-6); 

2.  AP (ammonium perchlorate) (CAS 7790-98-9); 

3. 

Compounds composed of fluorine and any of the following: 

a.  Other halogens; 

b.  Oxygen; or 

c.  Nitrogen; 

Note 1 

ML8.d.3  does  not  control  chlorine  trifluoride.  See  1C238  on  the 
EU Dual-Use List. 

Note 2 

ML8.d.3 does not control nitrogen trifluoride in its gaseous state. 

4.  DNAD (1,3-dinitro-1,3-diazetidine) (CAS 78246-06-7); 

5.  HAN (hydroxylammonium nitrate) (CAS 13465-08-2); 

6.  HAP (hydroxylammonium perchlorate) (CAS 15588-62-2); 

7.  HNF (hydrazinium nitroformate) (CAS 20773-28-8); 

8.  Hydrazine nitrate (CAS 37836-27-4); 

9.  Hydrazine perchlorate (CAS 27978-54-7); 

10.  Liquid  oxidisers  comprised  of  or  containing  inhibited  red  fuming  nitric 

acid (IRFNA) (CAS 8007-58-7); 

Note  ML8.d.10 does not control non-inhibited fuming nitric acid. 

e. 

Binders, plasticisers, monomers, polymers, as follows: 

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1.  AMMO  (azidomethylmethyloxetane  and  its  polymers)  (CAS  90683-29-

7) (see also ML8.g.1. for its ‘precursors’); 

2. 

3. 

4. 

5. 

6. 

7. 

8. 

9. 

BAMO  (bisazidomethyloxetane  and  its  polymers)  (CAS  17607-20-4) 
(see also ML8.g.1. for its ‘precursors’); 

BDNPA (bis (2,2-dinitropropyl)acetal) (CAS 5108-69-0); 

BDNPF (bis (2,2-dinitropropyl)formal) (CAS 5917-61-3); 

BTTN (butanetrioltrinitrate) (CAS 6659-60-5) (see also ML8.g.8. for its 
‘precursors’); 

Energetic  monomers,  plasticisers  and  polymers  containing  nitro,  azido, 
nitrate, nitraza or difluoroamino groups specially formulated for military 
use; 

FAMAO 
polymers; 

(3-difluoroaminomethyl-3-azidomethyl  oxetane)  and 

its 

FEFO (bis-(2-fluoro-2,2-dinitroethyl) formal) (CAS 17003-79-1); 

FPF-1  (poly-2,2,3,3,4,4-hexafluoropentane-1,5-diol  formal)  (CAS  376-
90-9); 

10.  FPF-3 

(poly-2,4,4,5,5,6,6-heptafluoro-2-tri-fluoromethyl-3-oxaheptane-

1,7-diol formal); 

11.  GAP (glycidylazide polymer) (CAS 143178-24-9) and its derivatives; 

12.  HTPB (hydroxyl terminated polybutadiene) with a hydroxyl functionality 
equal to or greater than 2,2 and less than or equal to 2,4, a hydroxyl value 
of  less  than  0,77  meq/g,  and  a  viscosity  at  30  °C  of  less  than  47  poise 
(CAS 69102-90-5); 

13.  Low  (less  than  10  000)  molecular  weight,  alcohol  functionalised, 

poly(epichlorohydrin); poly(epichlorohydrindiol) and triol; 

14.  NENAs (nitratoethylnitramine compounds) (CAS 17096-47-8, 85068-73-

1, 82486-83-7, 82486-82-6 and 85954-06-9); 

15.  PGN  (poly-GLYN,  polyglycidylnitrate  or  poly(nitratomethyl  oxirane) 

(CAS 27814-48-8); 

16.  Poly-NIMMO 

(poly  nitratomethylmethyloxetane)  or  poly-NMMO 

(poly[3-Nitratomethyl-3-methyloxetane]) (CAS 84051-81-0) ; 

17.  Polynitroorthocarbonates ; 

18.  TVOPA (1,2,3-tris[1,2-bis(difluoroamino)ethoxy] propane or tris vinoxy 

propane adduct) (CAS 53159-39-0). 

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f. 

Additives, as follows: 

1. 

2. 

3. 

4. 

5. 

6. 

7. 

8. 

9. 

Basic copper salicylate (CAS 62320-94-9); 

BHEGA (bis-(2-hydroxyethyl) glycolamide) (CAS 17409-41-5); 

BNO (butadienenitrileoxide) (CAS 9003-18-3); 

Ferrocene derivatives, as follows: 

a. 

b. 

c. 

d. 

Butacene (CAS 125856-62-4); 

Catocene (2,2-bis-ethylferrocenyl propane) (CAS 37206-42-1); 

Ferrocene carboxylic acids; 

n-butyl-ferrocene (CAS 31904-29-7); 

e.  Other adducted polymer ferrocene derivatives; 

Lead beta-resorcylate (CAS 20936-32-7); 

Lead citrate (CAS 14450-60-3); 

Lead-copper  chelates  of  beta-resorcylate  or  salicylates  (CAS  68411-07-
4); 

Lead maleate (CAS 19136-34-6); 

Lead salicylate (CAS 15748-73-9); 

10.  Lead stannate (CAS 12036-31-6); 

11.  MAPO  (tris-1-(2-methyl)aziridinyl  phosphine  oxide)  (CAS  57-39-6); 
2-(2-hydroxypropanoxy) 

BOBBA 
propylamino phosphine oxide); and other MAPO derivatives; 

(bis(2-methyl 

aziridinyl) 

8 

12.  Methyl  BAPO  (bis(2-methyl  aziridinyl)  methylamino  phosphine  oxide) 

(CAS 85068-72-0); 

13.  N-methyl-p-nitroaniline (CAS 100-15-2); 

14.  3-Nitraza-1,5-pentane diisocyanate (CAS 7406-61-9); 

15.  Organo-metallic coupling agents, as follows: 

a.  Neopentyl[diallyl]oxy, 

(CAS 
103850-22-2);  also  known  as  titanium  IV,  2,2[bis  2-propenolato-
methyl,  butanolato,  tris  (dioctyl)  phosphato]  (CAS  110438-25-0); 
or LICA 12 (CAS 103850-22-2); 

tri[dioctyl]phosphato-titanate 

b. 

Titanium  IV,  [(2-propenolato-1)  methyl,  n-propanolatomethyl] 
butanolato-1, tris[dioctyl] pyrophosphate or KR3538; 

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39 

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c. 

Titanium 
butanolato-1, tris(dioctyl)- phosphate; 

IV, 

[(2-propenolato-1)methyl,  n-propanolatomethyl] 

16.  Polycyanodifluoroaminoethyleneoxide; 

17.  Polyfunctional  aziridine  amides  with  isophthalic,  trimesic  (BITA  or 
butylene  imine  tri-mesamide),  isocyanuric  or  trimethyladipic  backbone 
structures and 2-methyl or 2-ethyl substitutions on the aziridine ring; 

18.  Propyleneimine (2-methylaziridine) (CAS 75-55-8); 

19.  Superfine iron oxide (Fe2O3) with a specific surface area more than 250 

m2/g and an average particle size of 3,0 nm or less; 

20.  TEPAN 

(tetraethylenepentaamineacrylonitrile) 

(CAS  68412-45-3); 

cyanoethylated polyamines and their salts; 

21.  TEPANOL  (tetraethylenepentaamineacrylonitrileglycidol)  (CAS  68412-
46-4); cyanoethylated polyamines adducted with glycidol and their salts; 

22.  TPB (triphenyl bismuth) (CAS 603-33-8). 

g. 

‘Precursors’, as follows: 

NB:  In  ML8.g.  the  references  are  to  controlled  ‘Energetic  Materials’ 

manufactured from these substances. 

1. 

BCMO (bischloromethyloxetane) (CAS 142173-26-0) (see also ML8.e.1. 
and e.2.); 

2.  Dinitroazetidine-t-butyl salt (CAS 125735-38-8) (see also ML8.a.28.); 

3.  HBIW  (hexabenzylhexaazaisowurtzitane)  (CAS  124782-15-6)  (see  also 

ML8.a.4.); 

4. 

5. 

6. 

7. 

8. 

TAIW (tetraacetyldibenzylhexaazaisowurtzitane) (see also ML8.a.4.); 

TAT (1,3,5,7 tetraacetyl-1,3,5,7,-tetraaza cyclo-octane) (CAS 41378-98-
7) (see also ML8.a.13.); 

1,4,5,8-tetraazadecalin (CAS 5409-42-7) (see also ML8.a.27.); 

1,3,5-trichlorobenzene (CAS 108-70-3) (see also ML8.a.23.); 

1,2,4-trihydroxybutane  (1,2,4-butanetriol)  (CAS  3068-00-6)  (see  also 
L8.e.5.). 

Note 5 

For charges and devices see ML4. 

Note 6 

ML8  does  not  control  the  following  substances  unless  they  are 
compounded or mixed with the ‘energetic material’ mentioned in ML8.a. 
or powdered metals in ML8.c.: 

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a.  Ammonium picrate; 

b. 

Black powder; 

c.  Hexanitrodiphenylamine; 

d.  Difluoroamine; 

e.  Nitrostarch; 

f. 

g. 

h. 

i. 

j. 

Potassium nitrate; 

Tetranitronaphthalene; 

Trinitroanisol; 

Trinitronaphthalene; 

Trinitroxylene; 

k.  N-pyrrolidinone; 1-methyl-2-pyrrolidinone; 

l. 

Dioctylmaleate; 

m.  Ethylhexylacrylate; 

n. 

Triethylaluminium  (TEA),  trimethylaluminium  (TMA),  and  other 
pyrophoric metal alkyls and aryls of lithium, sodium, magnesium, 
zinc or boron; 

o.  Nitrocelluose; 

p.  Nitroglycerin (or glyceroltrinitrate, trinitroglycerine) (NG); 

q. 

2,4,6-trinitrotoluene (TNT); 

r. 

s. 

t. 

u. 

v. 

Ethylenediaminedinitrate (EDDN); 

Pentaerythritoltetranitrate (PETN); 

Lead  azide,  normal  and  basic  lead  styphnate,  and  primary 
explosives  or  priming  compositions  containing  azides  or  azide 
complexes; 

Triethyleneglycoldinitrate (TEGDN); 

2,4,6-trinitroresorcinol (styphnic acid); 

w.  Diethyldiphenyl urea; dimethylidiphenyl urea; methylethyldiphenyl 

urea [Centralites]; 

x.  N,N-diphenylurea (unsymmetrical diphenylurea); 

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41 

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y.  Methyl-N,N-diphenylurea (methyl unsymmetrical diphenylurea); 

z. 

Ethyl-N,N-diphenylurea (ethyl unsymmetrical diphenylurea); 

aa.  2-Nitrodiphenylamine (2-NDPA); 

bb.  4-Nitrodiphenylamine (4-NDPA); 

cc.  2,2-dinitropropanol; 

dd.  Nitroguanidine (see 1C011.d. on the EU Dual-Use List). 

ML9  VESSELS  OF  WAR,  SPECIAL  NAVAL  EQUIPMENT  AND  ACCESSORIES,  AS  FOLLOWS, 
AND COMPONENTS THEREFOR, SPECIALLY DESIGNED FOR MILITARY USE: 

NB:  For guidance and navigation equipment, see ML11, Note 7. 

a. 

Combatant  vessels  and  vessels  (surface  or  underwater)  specially  designed  or 
modified  for  offensive  or  defensive  action,  whether  or  not  converted  to  non-
military  use,  regardless  of  current  state  of  repair  or  operating  condition,  and 
whether or not they contain weapon delivery systems or armour, and hulls or 
parts of hulls for such vessels; 

b. 

Engines and propulsion systems, as follows: 

1.  Diesel  engines  specially  designed  for  submarines  with  both  of  the 

following characteristics: 

a.  A power output of 1,12 MW (1 500 h.p.) or more; and 

b.  A rotary speed of 700 rpm or more; 

2. 

Electric  motors  specially  designed  for  submarines  having  all  of  the 
following characteristics: 

a.  A power output of more than 0,75 MW (1 000 h.p.); 

b.  Quick reversing; 

c. 

d. 

Liquid cooled; and 

Totally enclosed; 

3.  Non-magnetic  diesel  engines  specially  designed  for  military  use  with  a 
power  output  of  37,3  kW  (50  h.p.)  or  more  and  with  a  non-magnetic 
content in excess of 75 % of total mass; 

4.  Air Independent Propulsion systems specially designed for submarines; 

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Technical Note 

‘Air  Independent  Propulsion’  allows  a  submerged  submarine  to  operate  its 
propulsion system, without access to atmospheric oxygen, for a longer time than the 
batteries would have otherwise allowed. This does not include nuclear power. 

c.  Underwater detection devices specially designed for military use and controls 

thereof; 

d. 

Submarine and torpedo nets; 

e.  Not used; 

f. 

Hull penetrators and connectors specially designed for military use that enable 
interaction with equipment external to a vessel; 

Note  ML9.f. includes connectors for vessels which are of the single-conductor, 
multi-conductor,  coaxial  or  waveguide  type,  and  hull  penetrators  for 
vessels,  both  of  which  are  capable  of  remaining  impervious  to  leakage 
from  without  and  of  retaining  required  characteristics  at  marine  depths 
exceeding 100 m; and fibre-optic connectors and optical hull penetrators 
specially  designed  for  ‘laser’  beam  transmission  regardless  of  depth.  It 
does  not  include  ordinary  propulsive  shaft  and  hydro-dynamic  control-
rod hull penetrators. 

g. 

Silent bearings, with gas or magnetic suspension, active signature or vibration 
suppression  controls,  and  equipment  containing  those  bearings,  specially 
designed for military use. 

ML10 

‘AIRCRAFT’,  ‘LIGHTER-THAN-AIR  VEHICLES’,  UNMANNED  AIRBORNE  VEHICLES, 
AERO-ENGINES  AND 
‘AIRCRAFT’  EQUIPMENT,  RELATED  EQUIPMENT  AND 
COMPONENTS,  SPECIALLY  DESIGNED  OR  MODIFIED  FOR  MILITARY  USE,  AS 
FOLLOWS: 

NB: 

For guidance and navigation equipment, see ML11, Note 7. 

a. 

b. 

c. 

Combat ‘aircraft’ and specially designed components therefor; 

Other  ‘aircraft’  and  ‘lighter-than-air  vehicles’  specially  designed  or  modified  for 
military  use, 
training, 
transporting  and  airdropping  troops  or  military  equipment,  logistics  support,  and 
specially designed components therefor; 

reconnaissance,  assault,  military 

including  military 

Unmanned airborne vehicles and related equipment, specially designed or modified 
for military use, as follows, and specially designed components therefor: 

1.  Unmanned  airborne  vehicles  including  remotely  piloted  air  vehicles  (RPVs), 

autonomous programmable vehicles and ‘lighter-than-air vehicles’; 

2.  Associated launchers and ground support equipment; 

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43 

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d. 

e. 

f. 

g. 

h. 

3. 

Related equipment for command and control; 

Aero-engines specially designed or modified for military use, and specially designed 
components therefor; 

Airborne equipment, including airborne refuelling equipment, specially designed for 
use  with  the  ‘aircraft’  controlled  by  ML10.a.  or  ML10.b.  or  the  aero-engines 
controlled by ML10.d., and specially designed components therefor; 

Pressure  refuellers,  pressure  refuelling  equipment,  equipment  specially  designed  to 
facilitate operations in confined areas and ground equipment, developed specially for 
‘aircraft’  controlled  by  ML10.a.  or  ML10.b.,  or  for  aero-engines  controlled  by 
ML10.d.; 

Military  crash  helmets  and  protective  masks  and  specially  designed  components 
therefor,  pressurised  breathing  equipment  and  partial  pressure  suits  for  use  in 
‘aircraft’,  anti-g  suits,  liquid  oxygen  converters  used  for  ‘aircraft’  or  missiles,  and 
catapults  and  cartridge  actuated  devices  for  emergency  escape  of  personnel  from 
‘aircraft’; 

Parachutes  and  related  equipment,  used  for  combat  personnel,  cargo  dropping  or 
‘aircraft’ deceleration, as follows, and specially designed components therefor: 

1. 

Parachutes for: 

a. 

Pinpoint dropping of rangers; 

b.  Dropping of paratroopers; 

Cargo parachutes; 

Paragliders,  drag  parachutes,  drogue  parachutes  for  stabilisation  and  attitude 
control of dropping bodies, (e.g. recovery capsules, ejection seats, bombs); 

2. 

3. 

4.  Drogue  parachutes  for  use  with  ejection  seat  systems  for  deployment  and 

inflation sequence regulation of emergency parachutes; 

5. 

Recovery parachutes for guided missiles, drones or space vehicles; 

6.  Approach parachutes and landing deceleration parachutes; 

7.  Other military parachutes; 

8. 

Equipment specially designed for high altitude parachutists (e.g. suits, special 
helmets, breathing systems, navigation equipment); 

i. 

Automatic  piloting  systems  for  parachuted  loads;  equipment  specially  designed  or 
modified  for  military  use  for  controlled  opening  jumps  at  any  height,  including 
oxygen equipment. 

Note 1  ML10.b. does not control ‘aircraft’ or variants of those ‘aircraft’ specially designed 

for military use which: 

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44 

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a.  Are  not  configured  for  military  use  and  are  not  fitted  with  equipment  or 

attachments specially designed or modified for military use; and 

b.  Have been certified for civil use by the civil aviation authority in a Wassenaar 

Arrangement participating state. 

Note 2  ML10.d. does not control: 

a.  Aero-engines designed or modified for military use which have been certified 
by civil aviation authorities in a Wassenaar Arrangement participating state for 
use in ‘civil aircraft’, or specially designed components therefor; 

b. 

Reciprocating engines or specially designed components therefor, except those 
specially designed for unmanned airborne vehicles. 

Note 3  The control in ML10.b. and ML10.d. on specially designed components and related 
equipment  for  non-military  ‘aircraft’  or  aero-engines  modified  for  military  use 
applies only to those military components and to military related equipment required 
for the modification to military use. 

ML11  ELECTRONIC  EQUIPMENT  NOT  CONTROLLED  ELSEWHERE  ON  THE  EU  COMMON 
MILITARY LIST, AS FOLLOWS, AND SPECIALLY DESIGNED COMPONENTS THEREFOR: 

a. 

Electronic equipment specially designed for military use; 

Note  ML11 includes: 

1. 

2. 

3. 

Electronic  countermeasure  and  electronic  counter-countermeasure  equipment 
(i.e. equipment designed to introduce extraneous or erroneous signals into radar 
or radio communication receivers or otherwise hinder the reception, operation 
their 
or 
countermeasure  equipment), 
jamming  and  counter-jamming 
equipment; 

effectiveness  of 

electronic 

adversary 

including 

including 

receivers 

Frequency agile tubes; 

Electronic  systems  or  equipment  designed  either  for  surveillance  and 
monitoring of the electromagnetic spectrum for military intelligence or security 
purposes or for counteracting such surveillance and monitoring; 

4.  Underwater  countermeasures,  including  acoustic  and  magnetic  jamming  and 
decoy,  equipment  designed  to  introduce  extraneous  or  erroneous  signals  into 
sonar receivers; 

5.  Data processing security equipment, data security equipment and transmission 

and signalling line security equipment, using ciphering processes; 

6. 

Identification, authentification and keyloader equipment and key management, 
manufacturing and distribution equipment; 

7.  Guidance and navigation equipment; 

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8.  Digital troposcatter-radio communications transmission equipment; 

9.  Digital demodulators specially designed for signals intelligence. 

b. 

Global Navigation Satellite Systems (GNSS) jamming equipment. 

ML12  HIGH VELOCITY KINETIC ENERGY WEAPON SYSTEMS AND RELATED EQUIPMENT, AS 

FOLLOWS, AND SPECIALLY DESIGNED COMPONENTS THEREFOR: 

a. 

b. 

Kinetic  energy  weapon  systems  specially  designed  for  destruction  or  effecting 
mission-abort of a target; 

Specially designed test and evaluation facilities and test models, including diagnostic 
instrumentation  and  targets,  for  dynamic  testing  of  kinetic  energy  projectiles  and 
systems. 

NB: 

For  weapon  systems  using  sub-calibre  ammunition  or  employing  solely  chemical 
propulsion, and ammunition therefor, see ML1 to ML4. 

Note 1  ML12  includes  the  following  when  specially  designed  for  kinetic  energy  weapon 

systems: 

a. 

b. 

Launch propulsion systems capable of accelerating masses larger than 0,1 g to 
velocities in excess of 1,6 km/s, in single or rapid fire modes; 

Prime power generation, electric armour, energy storage, thermal management, 
conditioning,  switching  or  fuel-handling  equipment;  and  electrical  interfaces 
between power supply, gun and other turret electric drive functions; 

c. 

Target acquisition, tracking, fire control or damage assessment systems; 

d.  Homing seeker, guidance or divert propulsion (lateral acceleration) systems for 

projectiles. 

Note 2  ML12 controls weapon systems using any of the following methods of propulsion: 

a. 

b. 

c. 

d. 

e. 

Electromagnetic; 

Electrothermal; 

Plasma; 

Light gas; or 

Chemical (when used in combination with any of the above). 

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ML13  ARMOURED OR PROTECTIVE EQUIPMENT AND CONSTRUCTIONS AND COMPONENTS, 

AS FOLLOWS: 

a. 

Armoured plate as follows: 

1.  Manufactured to comply with a military standard or specification; or 

2. 

Suitable for military use; 

b. 

c. 

d. 

Constructions of metallic or non-metallic materials or combinations thereof specially 
designed to provide ballistic protection for military systems, and specially designed 
components therefor; 

Helmets  manufactured  according  to  military  standards  or  specifications,  or 
comparable  national  standards,  and  specially  designed  components  therefor,  i.e. 
helmet shell, liner and comfort pads; 

Body armour and protective garments manufactured according to military standards 
or specifications, or equivalent, and specially designed components therefor. 

Note 1  ML13.b. includes materials specially designed to form explosive reactive armour or 

to construct military shelters. 

Note 2  ML13.c. does not control conventional steel helmets, neither modified or designed to 

accept, nor equipped with any type of accessory device. 

Note 3  ML13.c.  and  d.  do  not  control  helmets,  body  armour  or  protective  garments  when 

accompanying their user for the user’s own personal protection. 

Note 4  The only helmets specially designed for bomb disposal personnel that are controlled 

by ML13. are those specially designed for military use. 

NB 1:  See also entry 1A005 on the EU Dual-Use List. 

NB 2:  For  ‘fibrous  or  filamentary  materials’  used  in  the  manufacture  of  body  armour  and 

helmets, see entry 1C010 on the EU Dual-Use List. 

ML14  SPECIALISED EQUIPMENT FOR MILITARY TRAINING OR FOR SIMULATING MILITARY 
SCENARIOS,  SIMULATORS  SPECIALLY  DESIGNED  FOR  TRAINING  IN  THE  USE  OF  ANY 
FIREARM  OR  WEAPON  CONTROLLED  BY  ML1  OR ML2,  AND  SPECIALLY  DESIGNED 
COMPONENTS AND ACCESSORIES THEREFOR. 

Technical Note 

The  term  ‘specialised  equipment  for  military  training’  includes  military  types  of  attack 
trainers,  operational  flight  trainers,  radar  target  trainers,  radar  target  generators,  gunnery 
training  devices,  anti-submarine  warfare  trainers,  flight  simulators  (including  human-rated 
centrifuges  for  pilot/astronaut  training),  radar  trainers,  instrument  flight  trainers,  navigation 
trainers,  missile  launch  trainers,  target  equipment,  drone  ‘aircraft’,  armament  trainers, 

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pilotless ‘aircraft’ trainers,  mobile  training  units  and  training  equipment  for  ground  military 
operations. 

Note 1  ML14 includes image generating and interactive environment systems for simulators 

when specially designed or modified for military use. 

Note 2  ML14  does  not  control  equipment  specially  designed  for  training  in  the  use  of 

hunting or sporting weapons. 

ML15  IMAGING  OR  COUNTERMEASURE  EQUIPMENT,  AS  FOLLOWS,  SPECIALLY  DESIGNED 
FOR  MILITARY  USE,  AND  SPECIALLY  DESIGNED  COMPONENTS  AND  ACCESSORIES 
THEREFOR: 

a. 

b. 

c. 

d. 

e. 

f. 

Recorders and image processing equipment; 

Cameras, photographic equipment and film processing equipment; 

Image intensifier equipment; 

Infrared or thermal imaging equipment; 

Imaging radar sensor equipment; 

Countermeasure or counter-countermeasure equipment for the equipment controlled 
by sub-items ML15.a. to ML15.e. 

Note  ML15.f. includes equipment designed to degrade the operation or effectiveness 

of military imaging systems or to minimize such degrading effects. 

Note 1  The  term  ‘specially  designed  components’  includes  the  following  when  specially 

designed for military use: 

a. 

b. 

Infrared image converter tubes; 

Image intensifier tubes (other than first generation); 

c.  Microchannel plates; 

d. 

Low-light-level television camera tubes; 

e.  Detector arrays (including electronic interconnection or readout systems); 

f. 

g. 

h. 

Pyroelectric television camera tubes; 

Cooling systems for imaging systems; 

Electrically  triggered  shutters  of  the  photochromic  or  electro-optical  type 
having a shutter speed of less than 100 μs, except in the case of shutters which 
are an essential part of a high-speed camera; 

i. 

Fibre optic image inverters; 

EN 

48 

   EN 

 
j. 

Compound semiconductor photocathodes 

Note 2  ML15  does  not  control  ‘first  generation  image  intensifier  tubes’  or  equipment 
specially designed to incorporate ‘first generation image intensifier tubes’. 

NB:  For  the  status  of  weapons  sights  incorporating  ‘first  generation  image 

intensifier tubes’ see entries ML1., ML2. and ML5.a. 

NB: 

See also entries 6A002.a.2. and 6A002.b. on the EU Dual-Use List. 

ML16  FORGINGS,  CASTINGS AND OTHER  UNFINISHED PRODUCTS  THE USE OF WHICH  IN  A 
CONTROLLED  PRODUCT  IS  IDENTIFIABLE  BY  MATERIAL  COMPOSITION,  GEOMETRY 
OR  FUNCTION,  AND  WHICH  ARE  SPECIALLY  DESIGNED  FOR  ANY  PRODUCTS 
CONTROLLED BY ML1 TO ML4, ML6, ML9, ML10, ML12 OR ML19. 

ML17  MISCELLANEOUS  EQUIPMENT,  MATERIALS  AND  LIBRARIES,  AS  FOLLOWS,  AND 

SPECIALLY DESIGNED COMPONENTS THEREFOR: 

a. 

Self-contained diving and underwater swimming apparatus, as follows: 

1. 

2. 

Closed  or  semi-closed  circuit  (rebreathing)  apparatus  specially  designed  for 
military use (i.e. specially designed to be non-magnetic); 

Specially  designed  components  for  use  in  the  conversion  of  open-circuit 
apparatus to military use; 

3.  Articles  designed  exclusively  for  military  use  with  self-contained  diving  and 

underwater swimming apparatus; 

b. 

c. 

d. 

e. 

Construction equipment specially designed for military use; 

Fittings,  coatings  and  treatments  for  signature  suppression,  specially  designed  for 
military use; 

Field engineer equipment specially designed for use in a combat zone; 

‘Robots’, ‘robot’ controllers and ‘robot’ ‘end-effectors’, having any of the following 
characteristics: 

1. 

2. 

Specially designed for military use; 

Incorporating  means  of  protecting  hydraulic  lines  against  externally  induced 
punctures  caused  by  ballistic  fragments  (e.g.  incorporating  self-sealing  lines) 
and designed to use hydraulic fluids with flash points higher than 839 K (566 
°C); or 

3. 

Specially  designed  or  rated  for  operating  in  an  electro  magnetic  pulse  (EMP) 
environment; 

f. 

Libraries  (parametric  technical  databases)  specially  designed  for  military  use  with 
equipment controlled by the EU Common Military List; 

EN 

49 

   EN 

 
g. 

h. 

i. 

j. 

k. 

l. 

m. 

n. 

o. 

Nuclear  power  generating  equipment  or  propulsion  equipment,  including  ‘nuclear 
reactors’,  specially  designed  for  military  use  and  components  therefor  specially 
designed or modified for military use; 

Equipment  and  material,  coated  or  treated  for  signature  suppression,  specially 
designed for military use, other than those controlled elsewhere in the EU Common 
Military List; 

Simulators specially designed for military ‘nuclear reactors’; 

Mobile repair shops specially designed or modified to service military equipment; 

Field generators specially designed or modified for military use; 

Containers specially designed or modified for military use; 

Ferries,  other  than  those  controlled  elsewhere  in  the  EU  Common  Military  List, 
bridges and pontoons, specially designed for military use; 

Test  models  specially  designed  for  the  ‘development’  of  items  controlled  by  ML4, 
ML6, ML9 or ML10; 

Laser  protection  equipment  (e.g.  eye  and  sensor  protection)  specially  designed  for 
military use. 

Technical Notes 

1. 

2. 

For the purpose of ML17, the term ‘library’ (parametric technical database) means a 
collection  of  technical  information  of  a  military  nature,  reference  to  which  may 
enhance the performance of military equipment or systems. 

For the purpose of ML17, ‘modified’ means any structural, electrical, mechanical, or 
other change that provides a non-military item with military capabilities equivalent to 
an item which is specially designed for military use. 

ML18  EQUIPMENT  FOR  THE  PRODUCTION  OF  PRODUCTS  CONTROLLED  BY  THE  EU 

COMMON MILITARY LIST, AS FOLLOWS: 

a. 

b. 

Specially designed or modified production equipment for the production of products 
controlled 
by the EU Common Military List, and specially designed components therefor; 

Specially  designed  environmental  test  facilities  and  specially  designed  equipment 
therefor,  for  the  certification,  qualification  or  testing  of  products  controlled  by  the 
EU Common Military List. 

Technical Note 

For the purposes of ML18, the term ‘production’ includes design, examination, manufacture, 
testing and checking. 

EN 

50 

   EN 

 
Note  ML18.a. and ML18.b. include the following equipment: 

a. 

b. 

Continuous nitrators; 

Centrifugal  testing  apparatus  or  equipment  having  any  of  the  following 
characteristics: 

1.  Driven  by  a  motor  or  motors  having  a  total  rated  horsepower  of  more 

than 298 kW (400 h.p.); 

2. 

3. 

Capable of carrying a payload of 113 kg or more; or 

Capable  of  exerting  a  centrifugal  acceleration  of  8  g  or  more  on  a 
payload of 91 kg or more; 

c.  Dehydration presses; 

d. 

e. 

f. 

g. 

h. 

i. 

j. 

Screw  extruders  specially  designed  or  modified  for  military  explosive 
extrusion; 

Cutting machines for the sizing of extruded propellants; 

Sweetie barrels (tumblers) 1,85 m or more in diameter and having over 227 kg 
product capacity; 

Continuous mixers for solid propellants; 

Fluid  energy  mills  for  grinding  or  milling  the  ingredients  of  military 
explosives; 

Equipment  to  achieve  both  sphericity  and  uniform  particle  size  in  metal 
powder listed in ML8.c.8.; 

Convection  current  converters  for  the  conversion  of  materials  listed  in 
ML8.c.3. 

ML19  DIRECTED  ENERGY  WEAPON  SYSTEMS  (DEW),  RELATED  OR  COUNTERMEASURE 
EQUIPMENT  AND  TEST  MODELS,  AS  FOLLOWS,  AND  SPECIALLY  DESIGNED 
COMPONENTS THEREFOR: 

a. 

b. 

c. 

d. 

‘Laser’  systems  specially  designed  for  destruction  or  effecting  mission-abort  of  a 
target; 

Particle beam systems capable of destruction or effecting mission-abort of a target; 

High  power  radio-frequency  (RF)  systems  capable  of  destruction  or  effecting 
mission-abort of a target; 

Equipment  specially  designed  for  the  detection  or  identification  of,  or  defence 
against, systems controlled by ML19.a. to ML19.c.; 

EN 

51 

   EN 

 
e. 

f. 

Physical test models for the systems, equipment and components controlled by this 
Item. 

Continuous  wave  or  pulsed  ‘laser’  systems  specially  designed  to  cause  permanent 
blindness  to  unenhanced  vision,  i.e.  to  the  naked  eye  or  to  the  eye  with  corrective 
eyesight devices. 

Note 1  Directed  energy  weapon  systems  controlled  by  ML19  include  systems  whose 

capability is derived from the controlled application of: 

a. 

b. 

‘Lasers’  of  sufficient  continuous  wave  or  pulsed  power  to  effect  destruction 
similar to the manner of conventional ammunition; 

Particle  accelerators  which  project  a  charged  or  neutral  particle  beam  with 
destructive power; 

c.  High  pulsed  power  or  high  average  power  radio  frequency  beam  transmitters 
which  produce  fields  sufficiently  intense  to  disable  electronic  circuitry  at  a 
distant target. 

Note 2  ML19  includes  the  following  when  specially  designed  for  directed  energy  weapon 

systems: 

a. 

b. 

c. 

d. 

e. 

f. 

g. 

h. 

i. 

j. 

Prime power generation, energy storage, switching, power conditioning or fuel-
handling equipment; 

Target acquisition or tracking systems; 

Systems capable of assessing target damage, destruction or mission-abort; 

Beam-handling, propagation or pointing equipment; 

Equipment  with  rapid  beam  slew  capability  for  rapid  multiple  target 
operations; 

Adaptive optics and phase conjugators; 

Current injectors for negative hydrogen ion beams; 

‘Space qualified’ accelerator components; 

Negative ion beam funnelling equipment; 

Equipment for controlling and slewing a high energy ion beam; 

k. 

‘Space qualified’ foils for neutralising negative hydrogen isotope beams. 

ML20  CRYOGENIC  AND  ‘SUPERCONDUCTIVE’  EQUIPMENT,  AS  FOLLOWS,  AND  SPECIALLY 

DESIGNED COMPONENTS AND ACCESSORIES THEREFOR: 

a. 

Equipment specially designed or configured to be installed in a vehicle for military 
ground, 

EN 

52 

   EN 

 
marine, airborne or space applications, capable of operating while in motion and of 
producing 
or maintaining temperatures below 103 K (-170 °C); 

Note  ML20.a.  includes  mobile  systems  incorporating  or  employing  accessories  or 
components  manufactured  from  non-metallic  or  non  electrical  conductive 
materials, such as plastics or epoxy-impregnated materials. 

b. 

‘Superconductive’  electrical  equipment  (rotating  machinery  and  transformers) 
specially  designed  or  configured  to  be  installed  in  a  vehicle  for  military  ground, 
marine, airborne or space applications, capable of operating while in motion. 

Note  ML20.b. does not control direct current hybrid homopolar generators that have 
single-pole normal metal armatures which rotate in a magnetic field produced 
by  superconducting  windings,  provided 
the  only 
superconducting component in the generator. 

those  windings  are 

ML21 

‘SOFTWARE’, AS FOLLOWS: 

a. 

b. 

‘Software’  specially  designed  or  modified  for  the  ‘development’,  ‘production’  or 
‘use’ of equipment or materials controlled by the EU Common Military List; 

Specific ‘software’, as follows: 

1. 

‘Software’ specially designed for: 

a.  Modelling, simulation or evaluation of military weapon systems; 

b. 

‘Development’,  monitoring,  maintenance  or  updating  of  ‘software’ 
embedded in military weapon systems; 

c.  Modelling or simulating military operation scenarios; 

d. 

Command,  Communications,  Control  and 
(C3I)  or 
Command,  Communications,  Control,  Computer  and  Intelligence  (C4I) 
applications; 

Intelligence 

‘Software’  for  determining  the  effects  of  conventional,  nuclear,  chemical  or 
biological warfare weapons. 

‘Software’,  not  controlled  by  ML21.a.,  b.1.  or  b.2.,  specially  designed  or 
modified to enable equipment not controlled by the EU Common Military List 
to perform the military functions of equipment controlled by the EU Common 
Military List. 

2. 

3. 

ML22 

‘TECHNOLOGY’ AS FOLLOWS: 

a. 

‘Technology’,  other  than  specified  in  ML22.b.,  which  is  ‘required’  for  the 
‘development’, 

EN 

53 

   EN 

 
‘production’  or  ‘use’  of  items  controlled  in  the  Common  Military  List  of  The 
European Union. 

b. 

‘Technology’ as follows: 

1. 

2. 

3. 

4. 

5. 

‘Technology’  ‘required’  for  the  design  of,  the  assembly  of  components  into, 
and the operation, maintenance and repair of complete production installations 
for items controlled in the Common Military List of The European Union, even 
if the components of such production installations are not controlled; 

‘Technology’ ‘required’ for the ‘development’ and ‘production’ of small arms 
even if used to produce reproductions of antique small arms; 

‘Technology’  ‘required’  for  the  ‘development’,  ‘production’  or  ‘use’  of 
toxicological agents, related equipment or components controlled by ML7.a. to 
ML7.g.; 

‘Technology’  ‘required’  for  the  ‘development’,  ‘production’  or  ‘use’  of 
‘biopolymers’ or cultures of specific cells controlled by ML7.h.; 

‘Technology’  ‘required’  exclusively  for  the  incorporation  of  ‘biocatalysts’, 
controlled by ML7.i.1., into military carrier substances or military material. 

Note 1  ‘Technology’  ‘required’  for  the  ‘development’,  ‘production’  or  ‘use’  of  items 
controlled  in  the  EU  Common  Military  List  remains  under  control  even  when 
applicable to any uncontrolled item. 

Note 2  ML22 does not control ‘technology’ as follows: 

a.  Which  is  the  minimum  necessary  for  the  installation,  operation,  maintenance 
(checking) and repair of those items which are not controlled or whose export 
has been authorised; 

b.  Which  is  ‘in  the  public  domain’,  ‘basic  scientific  research’  or  the  minimum 

necessary information for patent applications; 

c. 

For magnetic induction for continuous propulsion of civil transport devices. 

EN 

54 

   EN 

 
LEGISLATIVE FINANCIAL STATEMENT FOR PROPOSALS HAVING A 
BUDGETARY IMPACT EXCLUSIVELY LIMITED TO THE REVENUE SIDE 

1. 

NAME OF THE PROPOSAL: 

Proposal  for  a  directive  of  the  European  Parliament  and  of  the  Council  on 
simplifying terms and conditions of transfers of defence-related products within the 
Community 

2. 

BUDGET LINES: 

Chapter and Article: 02.0301 

Amount budgeted for the year concerned: 0 

3. 

FINANCIAL IMPACT  

(cid:133) 

(cid:133) 

Proposal has no financial implications 

Proposal has no financial impact on expenditure but has a financial impact on 
revenue – the effect is as follows: 

(€ million to one decimal place) 

Budget line 

Revenue13 

12 month period, 
starting dd/mm/yyyy

[Year n] 

Article … 

Impact on own resources 

Article … 

Impact on own resources 

13 

Regarding  traditional  own  resources  (agricultural  duties,  sugar  levies,  customs  duties)  the  amounts 
indicated must be net amounts, i.e. gross amounts after deduction of 25 % of collection costs. 

EN 

55 

   EN 

 
 
 
 
 
 
 
 
 
                                                 
Situation following action 

[n+1] 

[n+2] 

[n+3] 

[n+4] 

[n+5] 

Article … 

Article … 

4. 

ANTI-FRAUD MEASURES 

[…] 

5. 

OTHER REMARKS 

[…] 

EN 

56 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
LEGISLATIVE FINANCIAL STATEMENT 

1. 

NAME OF THE PROPOSAL: 

Proposal  for  a  directive  of  the  European  Parliament  and  of  the  Council  on 
simplifying terms and conditions of transfers of defence-related products within the 
Community 

2. 

ABM / ABB FRAMEWORK 

Policy  Area(s)  concerned  and  associated  Activity/Activities:  ABB2  Internal  market 
for goods & Sectoral policies 

3. 

BUDGET LINES 

3.1. 

Budget  lines  (operational  lines  and  related  technical  and  administrative 
assistance lines (ex- B.A lines)) including headings: 

02.0301 

3.2. 

Duration of the action and of the financial impact: 

Continuous 

3.3. 

Budgetary characteristics: 

Budget 
line 

Type of 
expenditure 

New 

EFTA 
contribution 

Contributions 
from applicant 
countries 

Heading in 
financial 
perspective 

02.0301 

Non-
comp 

Diff14 

 NO 

YES 

NO 

1a 

14 

Differentiated appropriations. 

EN 

57 

   EN 

 
                                                 
4. 

SUMMARY OF RESOURCES 

4.1. 

Financial Resources 

4.1.1. 

Summary of commitment appropriations (CA) and payment appropriations (PA) 

EUR million (to 3 decimal places) 

Expenditure type 

Sectio
n no. 

2008

2009 

2010 

2011 

Year 
2007 

2012 
and 
later 

Total 

Operational expenditure15 

Commitment 
Appropriations (CA) 

8.1. 

a 

Payment 
Appropriations (PA) 
Administrative expenditure within reference amount16 

b 

0,200 

0,140 

0,060 

Technical 
administrative 
assistance (NDA) 

& 

8.2.4. 

c 

TOTAL REFERENCE AMOUNT 

Commitment 
Appropriations 

Payment 
Appropriations 

a+c 

b+c 

0,200 

0,140 

0,060 

Administrative expenditure not included in reference amount17 

0,200 

0,200 

0,200

0,200

Human  resources  and 
associated  expenditure 
(NDA) 

than 

costs, 
Administrative 
human 
other 
resources 
and 
associated  costs,  not 
in  reference 
included 
amount (NDA) 

8.2.5. 

d 

8.2.6. 

e 

Total indicative financial cost of intervention 

0,234 

0,117 

0,351 

0,070  0,115 

0,185 

15 
16 
17 

Expenditure that does not fall under Chapter xx 01 of the Title xx concerned. 
Expenditure within article xx 01 04 of Title xx. 
Expenditure within chapter xx 01 other than articles xx 01 04 or xx 01 05. 

EN 

58 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
TOTAL  CA  including 
cost 
Human 
of 
Resources 

TOTAL  PA  including 
Human 
of 
cost 
Resources 

a+c
+d
+e 

b+c
+d
+e 

Co-financing details 

0,434 

0,117 

0,070  0,115 

0,736

0,374 

0,177 

0,070  0,115 

0,736

If  the  proposal  involves  co-financing  by  Member  States,  or  other  bodies  (please 
specify  which),  an  estimate  of  the  level  of  this  co-financing  should  be  indicated  in 
the table below (additional lines may be added if different bodies are foreseen for the 
provision of the co-financing): 

EUR million (to 3 decimal places) 

Year n 

n + 1 

n + 2 

n + 3 

n + 4 

n  +  5 
and 
later 

Total 

Co-financing body 

…………………… 

TOTAL  CA  including 
co-financing 

f 

a+c
+d
+e
+f 

4.1.2.  Compatibility with Financial Programming 

(cid:133) 

(cid:133) 

(cid:133) 

Proposal is compatible with existing financial programming. 

Proposal  will  entail  reprogramming  of  the  relevant  heading  in  the  financial 
perspective. 

Proposal  may  require  application  of  the  provisions  of  the  Inter-institutional 
Agreement18 (i.e. flexibility instrument or revision of the financial perspective). 

4.1.3.  Financial impact on Revenue 

(cid:133) 

(cid:133) 

Proposal has no financial implications on revenue 

Proposal has financial impact – the effect on revenue is as follows: 

18 

See points 19 and 24 of the Interinstitutional agreement. 

EN 

59 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
Budget line 

Revenue 

Prior to 
action  
[Year n-1] 

EUR million (to one decimal place) 

Situation following action 

[Year n]

[n+1]

[n+2]

[n+3]  [n+4]  [n+5]19

a) Revenue in 
absolute terms 

b) Change in 
revenue 

 Δ 

4.2. 

Human Resources FTE (including officials, temporary and external staff) – see 
detail under point 8.2.1. 

Annual requirements 

Year 
2007 

2008 

2009 

2010 

2011 

2012 
and 
later 

Total number of 
human resources 

2 

1 

5. 

CHARACTERISTICS AND OBJECTIVES 

5.1. 

Need to be met in the short or long term 

Transfers  within  the  EU  of  defence  products  (including  comprehensive  military 
equipments  as  well  as  sub-systems,  components,  spare  parts,  technologies  …)  are 
subject to national licensing generally in the same way as exports of such products to 
third  countries.  The  European  defence  market  is  consequently  fragmented  into  27 
national  licensing  regimes  which  diverge  widely  in  terms  of  procedure,  scope  and 
required  delays,  despite  coordinating  efforts  between  a  limited  number  of  Member 
States.  Defence  industries  and  EU  governments  do  not  have  full  predictability  in 
their  supply  chains  because  of  the  uncertainty  stemming  from  diverging  licensing 
regimes.  These  divergences  constitute  a  major 
industrial 
rationalisation, and a considerable obstacle to the emergence of a European Defence 
Equipment Market (EDEM) and the functioning of the Internal Market. 

impediment 

to 

Following  its  commitments  taken  in  the  context  of  its  2003  Communication  on  an 
EU  Defence  Equipment  Policy,  and  of  the  2005  study  "Intra-Community  Transfers 
of Defence Products", the Commission wants to simplify and harmonise transfers of 
defence products within the EU. In terms of: 

–  simplification,  the  proposal  requires  Member  States  to  establish  systems  of 
general and global licences for intra-EU transfers and to limit individual licensing 
to exceptional circumstances; 

19 

Additional columns should be added if necessary i.e. if the duration of the action exceeds 6 years. 

EN 

60 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
–  harmonisation,  the  proposal  requires  Member  States  to  establish  systems  of 
general licences for two types of transfers: transfers to EU governments; transfers 
of military components to EU certified companies. 

This proposal should also be seen as supporting the opening up of defence markets: 
by  simplifying  the  transfers  of  defence  products  to  EU  governments,  it  will  foster 
security of supply and therefore reduce obstacles to cross-border procurement. 

5.2. 

Value-added  of  Community  involvement  and  coherence  of  the  proposal  with 
other financial instruments and possible synergy 

This proposal belongs to a defence package consisting of one general communication 
and  two  legislative  initiatives  on  defence  procurement  and  on  transfers  of  defence-
related products respectively, which are mutually supportive and contribute to wider 
objectives of the EU. 

Facilitating transfers will complement the proposal on defence procurement: opening 
up public markets presupposes a reasonable expectation from the buyer that ordered 
products  will  be  delivered  without  undue  administrative  obstacles.  Furthermore, 
although  licences  are  hardly  ever  refused,  the  "theoretical"  possibility  that  such 
refusal may take place is an incentive for Member States to prefer sourcing military 
equipment  from  a  national  producer  rather 
its  (possibly  more 
advantageous) European competitors.  

than  from 

Common  Foreign  Security  Policy  (CFSP):  Whilst  having  as  primary  objective  the 
completion of Internal Market for defence products, the initiative will also contribute 
to achieving CFSP objectives, such as improving the security of supply of Member 
States armed forces, as well as industrial policy objectives, such as the promotion of 
a strong European Defence Technological and Industrial Base (EDTIB). In addition, 
improved  industrial  cooperation  should  generate  economies  of  scale  (and  therefore 
lead to more “value for money” defence equipments), thus allowing Member States 
armed forces to maximise the effectiveness of their defence investments. 

Lisbon  agenda:  the  latter  consideration  links  up  to  the  Lisbon  objectives  such  as 
strengthening the international competitiveness of European (defence) industries and 
secure employment in Europe. 

LoI:  the  Letter  of  Intent  cooperation  agreed  in  1998  by  the  six  largest  defence 
producing  Member  States  aims  inter  alia  at  facilitating  the  movement  of  military 
equipment  between  participating  members.  However,  no  tangible  results  have  yet 
been achieved in that context. The proposal is compatible and complementary to LoI 
current ongoing work. It will indeed provide the necessary common tools that could 
subsequently be further developed on an inter-governmental basis. 

5.3. 

Objectives, expected results and related indicators of the proposal in the context 
of the ABM framework 

The  objective  of  this  proposal  is  to  reduce  these  obstacles  to  the  circulation  of 
defence-related  products  within  the  Internal  Market,  and  to  diminish  the  resulting 
distortions of competition, by simplifying the conditions and procedures of licensing 
through  harmonisation  at  European  level.  Because  of  the  specific  features  of  the 

EN 

61 

   EN 

 
defence market and the need to protect national security, it is not proposed to abolish 
licensing  requirements  but  to  replace  them  by  a  streamlined  system  of  general  or 
global licenses, and to provide guarantees as to the reliability of recipients’ ability to 
prevent undesired exports. It will make an important contribution to: 

strengthening the European defence industry’s competitiveness, by facilitating 

(cid:133) 
its specialisation and by favouring industrial cooperation throughout the EU; 

improving  security  of  supply  of  European  defence  products  (purchases  and 

(cid:133) 
maintenance) for Member States. 

5.4.  Method of Implementation (indicative) 

(cid:133)  Centralised Management 

(cid:133) 

directly by the Commission 

(cid:133) 

indirectly by delegation to: 

(cid:133) 

executive Agencies 

(cid:133) 

bodies set up by the Communities as referred to in art. 185 of the 
Financial Regulation 

(cid:133) 

national public-sector bodies/bodies with public-service mission 

(cid:133) 

Shared or decentralised management 

(cid:133)  with Member states 

(cid:133)  with Third countries 

(cid:133) 

Joint management with international organisations (please specify) 

Relevant comments: 

6. 

MONITORING AND EVALUATION 

6.1.  Monitoring system 

The  proposal  requires  the  creation  of  a  Cooperation  Group  by  the  Commission  in 
order to examine any question concerning the application of this directive which may 
be  raised  either  by  the  chairman  or  by  a  representative  of  a  Member  State.  Its 
mandate would cover in particular 

a) 

evaluation  of  implementing  measures  in  each  Member  State  based  on  the 
Commission report 

b) 

use of the safeguard clause  

c)  measures which should be taken by Member States to inform operators of their 

obligations under this directive; 

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d) 

guidance concerning licence forms; 

6.2. 

Evaluation 

6.2.1.  Ex-ante evaluation 

On the basis of information provided within 18 months of the entry into force by the 
Member States on the transposition measures taken to comply with this directive, the 
Commission  will  present  a  report  on  the  application  of  this  directive,  and  in 
particular Articles 9-12, 15 thereof, within 30 months of the date of entry into force 
of the directive. 

Not later than 5 years after the date of transposition of this directive, the Commission 
will  publish  a  report  on  the  functioning  of  the  directive  and  its  impact  on 
developments of the European defence equipment market and the European defence 
technological  and  industrial  base,  attaching  to  its  report,  if  necessary,  suitable 
proposals for amendments 

6.2.2.  Measures taken  following  an intermediate/ex-post evaluation (lessons learned from 

similar experiences in the past) 

Not applicable 

6.2.3.  Terms and frequency of future evaluation 

As appropriate 

7. 

ANTI-FRAUD MEASURES  

If  a  licensing  Member  State  has  considers  that  there  is  a  serious  risk  that  any 
company certified in another receiving Member State will not respect any condition 
attached  to  a  general  transfer  licence,  it  shall  inform  the  other  Member  State  and 
request its evaluation of the situation. 

In case the doubts continue to persist, the Member State may provisionally suspend 
the  effect  of  its  general  transfer  licences  with  regard  to  such  companies.  It  shall 
inform the other Member States and Commission of the reasons for the measure. 

EN 

63 

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8. 

DETAILS OF RESOURCES 

8.1. 

Objectives of the proposal in terms of their financial cost 

(Headings of 
Objectives, actions 
and outputs should 
be provided) 

Type 
of 
output 

Av. 
cost 

Year 2007 

Year 2008 

Year 2009 

Year 2010 

Year 2011 

Year 2012 and 
later 

TOTAL 

No. 
outputs 

Total 
cost 

No. 
outputs 

Total 
cost 

No. 
outputs 

Total 
cost 

No. 
outputs 

Total 
cost 

No. 
outputs 

Total 
cost 

No. 
outputs 

Total 
cost 

No. 
outputs 

Total 
cost 

Commitment appropriations in EUR million (to 3 decimal places) 

OPERATIONAL 
OBJECTIVE 
No.120 

Action 1 
Evaluation of 
impact 

- Output 1  Service 

TOTAL COST 

1 report 0,200

1 

0,200  

20 

As described under Section 5.3. 

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64 

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8.2. 

Administrative Expenditure 

8.2.1.  Number and type of human resources 

Types of 
post 

Staff to be assigned to management of the action using existing 
and/or additional resources (number of posts/FTEs) 

Year 
2007 

Year 
2008 

Year 
2009 

Year 
2010 

Year 
2011 

Year 
2012 

1 

1 

1 ( B*) 

Officials or 
temporary 
staff21 (XX 
01 01) 

A*/A
D 

B*, 
C*/AS
T 

Staff financed22 by 
art. XX 01 02 

Other staff23 
financed by art. XX 
01 04/05 

TOTAL 

8.2.2.  Description of tasks deriving from the action 

Although  the  proposal’s  objective  is  to  complete  the  Internal  Market,  it  concerns  a 
completely new sector of defence related products for which the Commission needs 
to develop appropriate technical expertise in order to participate fully in Council and 
Parliament work following the proposal. The additional staff is needed: 

•  to  cooperate  closely  in  Council  work  on  the  Common  Military  List  to  make  a 

proposal for the update of the Annex; 

•  to produce a report on the measures taken by Member States to comply with the 

provisions of this directive; 

•  to  produce  a  report  on  the  functioning  of  the  directive  and  its  impact  on 
developments  of  the  European  defence  equipment  market  and  the  European 
defence technological and industrial base; 

•  to animate the work of the Cooperation group; 

•  to  organise  permanent  monitoring  of  the  respect  of  procedures  and  methods  of 

cooperation between Member States and use its powers if necessary. 

21 
22 
23 

Cost of which is NOT covered by the reference amount. 
Cost of which is NOT covered by the reference amount. 
Cost of which is included within the reference amount. 

EN 

65 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
8.2.3. 

Sources of human resources (statutory) 

(cid:133) 

(cid:133) 

(cid:133) 

(cid:133) 

(cid:133) 

Posts currently allocated to the management of the programme to be replaced 
or extended 

Posts pre-allocated within the APS/PDB exercise for year n 

Posts to be requested in the next APS/PDB procedure 

Posts  to  be  redeployed  using  existing  resources  within  the  managing  service 
(internal redeployment) 

Posts required for year n although not foreseen in the APS/PDB exercise of the 
year in question 

8.2.4.  Other  Administrative  expenditure  included  in  reference  amount  (XX  01  04/05  – 

Expenditure on administrative management) 

EUR million (to 3 decimal places) 

Budget line 

(number and heading) 

Year 
n 

Year 
n+1 

Year 
n+2 

Year 
n+3 

Year 
n+4 

Year 
n+5 and 
later 

TOTAL

1 Technical and administrative 
assistance  (including  related 
staff costs) 

Executive agencies24 

Other 

technical 
administrative assistance 

and 

- intra muros  

- extra muros 

Total 
administrative assistance 

Technical 

and 

24 

Reference should be made to the specific legislative financial statement for the Executive Agency(ies) 
concerned. 

EN 

66 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
8.2.5.  Financial cost of human resources and associated costs not included in the reference 

amount 

Type of human resources 

Year 
2007 

Year 
2008 

Year 
2009 

Year 
2010 

Year 
2011 

Year 
2012 and 
later 

EUR million (to 3 decimal places) 

Officials  and  temporary 
staff (XX 01 01) 

Staff financed by Art XX 
01 02 (auxiliary, END, 
contract staff, etc.) 
(specify budget line) 

Total  cost  of  Human 
Resources and associated 
costs  (NOT  in  reference 
amount) 

0, 234 

0,117 

0,234 

0,117 

Calculation– Officials and Temporary agents 

[…] 

Calculation– Staff financed under art. XX 01 02 

[…] 

8.2.6. Other administrative expenditure not included in reference amount 

EUR million (to 3 decimal places)

Year 
2007 

Year 
2008 

Year 
2009 

Year 
2010 

Year 
2011 

Year 
2012 

and 
later 

TOTAL

XX 01 02 11 01 – Missions 

XX  01  02  11  02  –  Meetings  & 
Conferences 

0,035  0,115 

EN 

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   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
XX 01 02 11 03 – Committees25  

XX  01  02  11  04  –  Studies  & 
consultations 

XX  01  02  11  05  -  Information 
systems 

2  Total  Other  Management 
Expenditure (XX 01 02 11) 

3  Other  expenditure  of  an 
administrative nature (specify 
including reference to budget 
line) 

0,035 

0,07 

0,115 

Total 
Administrative 
expenditure,  other  than  human 
resources  and  associated  costs 
reference 
(NOT 
amount) 

included 

in 

Calculation - Other administrative expenditure not included in reference amount 

[…] 

25 

Specify the type of committee and the group to which it belongs. 

EN 

68 

   EN