MINISTRY OF FOREIGN TRADE AND ECONOMIC RELATIONS BOSNIA AND HERZEGOVINA. Annual Arms Exports and Imports Report

Transcription

1 MINISTRY OF FOREIGN TRADE AND ECONOMIC RELATIONS BOSNIA AND HERZEGOVINA Annual Arms Exports and Imports Report

2 Annual Arms Exports and Imports Report Information on Licences Issued for Brokering of Arms, Military Equipment And Dual-Use Products in 2006 Bosnia and Herzegovina MINISTRY OF FOREIGN TRADE AND ECONOMIC RELATIONS Department of Foreign Trade and Investments Sarajevo, June 2007 I

3 Contents SECTION I Legislative and legal framework for brokering of arms, military equipment and dual use products...1 SECTION II Overview of licences issued for brokering of arms, military equipment and dual-use products...3 Annex A EXPORT LICENCES ISSUED FOR PRODUCTS UNDER MILITARY LIST...9 Annex B IMPORT LICENCES ISSUED FOR PRODUCTS UNDER MILITARY LIST...13 Annex C EXPORT LICENCES DENIED FOR PRODUCTS UNDER MILITARY LIST...16 Annex D TEMPORARY EXPORT LICENCES ISSUED FOR PRODUCTS UNDER MILITARY LIST...17 Annex E TEMPORARY IMPORT LICENCES ISSUED FOR PRODUCTS UNDER MILITARY LIST...18 Annex F EXPORT LICENCES ISSUED FOR DUAL-USE PRODUCTS...19 Annex G IMPORT LICENCES ISSUED FOR DUAL-USE PRODUCTS...20 II

4 SECTION I Legislative and legal framework for brokering of arms, military equipment and dual use products Having passed the Law on arms and military equipment export and dual-use products export and import control ( Official Gazette of BiH No. 05/03, 09/03, 14/05, 33/03, 14/05, 56/05 and 75/05) and with its due implementation, uniform state-level principles have been put in place with regard to issuing licences for the import, export, possession and transit of arms and military equipment. The process of the harmonization of legislation with EU laws has also been completed, as well as publication of the updated Common list of military equipment given in EU Rules of Conduct on arms import ( Official Gazette of BiH No. 75/05), Law on implementation of the Convention on the Prohibition of the Development, Production, Stockpiling and Use of Chemical Weapons and on their Destruction ( Official Gazette of BiH No. 15/06), and the Dual-use Products and Technologies List, whereby a control system over dual-use goods has been established to prevent their use for unlawful military and terrorist acts, in conformity with EU Regulations 1334/2000 and 149/2003 ( Official Gazette of BiH No. 75/05). These measures harmonise our export/import control of all goods with international standards, particularly with those of the EU, whereby we have made a major breakthrough in terms of arms export control at the state level. Pursuant to this Law, related by-laws have been adopted and published to regulate all the steps of the licence issuing procedure. The essence of all the above-mentioned regulations is to ensure that import, export, transit or possession licences in Bosnia and Herzegovina are issued only to those legal and natural persons who are duly registered with the BiH Ministry of Foreign Trade and Economic Relations and BiH Ministry of Defence. When issuing their approvals, the Ministry of Foreign Affairs takes into account the following: Bans and sanctions imposed by the United Nations Security Council; International commitments undertaken; Foreign-policy interests and specific BiH interests with regard to strategic foregn-policy partners of BiH; Rules of conduct of the European Union with regard to arms export and the principle of non-proliferation of weapons of mass destruction. The approval issued by the BiH Ministry of Security guarantees that the issuance of a licence will not jeopardize the internal public security of BiH. The approval issued by the BiH Ministry of Defence guarantees that the issuance of a licence will not jeopardize the defence power of BiH. To achieve effective control, the Ministry of Foreign Trade and Economic Relations, following the issuance of licences in line with Change 24 of the User Guide for Parties, shall notify the JC EUFOR of the licences issued, since EUFOR s approval is required for movement of this sort of goods within BiH. We wish to emphasize that, in the framework of arms, military equipment and dual-use products import and export control efforts, the institutions of the BiH State Border Service and BiH Indirect Taxation Directorate (customs authorities) have been actively engaged with enforcing laws and regulations. By the obligations prescribed under the Law on arms and military equipment export and dual-use products export and import control ( Official Gazette of BiH No. 05/03, 09/03, 14/05, 33/03, 14/05, 56/05 and 75/05), BiH Ministry of Foreign Trade and Economic Relations is establishing a database on all licences issued and will submit a report to the Parliamentary Assembly of Bosnia and Herzegovina thereof, which ensures the continuous reporting to competent civil bodies and institutions of Bosnia and Herzegovina. In this way transparency has been ensured in performing these transactions, which contributes to the increased international reputation of Bosnia and Herzegovina and enables more extensive international cooperation in the field. 1

5 In mid 2006, the Inspectorate Department consisting of a Chief Inspector and one Inspector was formed within the BiH Ministry of Foreign Trade and Economic Relations. A Joint Inspection Team has been formed, which, in addition to Inspectorate members, includes two staff members of the BiH Ministry of Foreign Trade and Economic Relations, staff members of the Ministry of Industry, Energy and Development of the Republika Srpska and the Special Production Directorate of the BiH Federation Ministry of Energy, Mining and Industry. The Joint Inspection Team has been working in conformity with the Law on Arms and Military Equipment Production and Overhaul ( Official Gazette of BiH No. 9/04), User Guide on inspection supervision in production and overhaul of arms and military equipment ( Official Gazette of BiH No. 28/04), Guidelines on methods of permanent supervision and reporting in production and overhaul of arms and military equipment ( Official Gazette of BiH No. 28/04) and User Guide to Parties, Amendments 23 and 24. The Joint Inspection Team has supervised over 26 (twenty six) legal entities dealing with the production and overhaul of arms and military equipment. Data entry into the TRACKER system is under way at the BiH Ministry of Foreign Trade and Economic Relations and is being linked with other state-level Ministries taking part in issuing their approvals with regard to the issuing of arms, military equipment and dual-use products export licences. While drafting the annual report (Information on arms, military equipment and dual-use products brokering in 2006) assistance was offered, in line with the requirements of the European Union, i.e. EU Code of Conduct, by SEESAC (South Eastern and Eastern Europe Small Arms Clearing House), which allocated funds to UNDP to support the BiH Ministry of Foreign Trade and Economic Relations in drafting the report through software support. Drafting a report in this format is one of the activities and conditions BiH has to meet as a prerequisite for signing the Stabilization and Assocciation Agreement with the EU. 2

6 SECTION II Overview of licences issued for brokering of arms, military equipment and dual-use products In line with the obligations prescribed under the Law on arms and military equipment export and import and dual-use products export control ( Official Gazette of BiH No. 05/03, 09/03, 14/03, 33/03, 14/05, 56/05 i 75/05 ), Common list of military equipment given in EU Rules of Conduct on arms import ( Official Gazette of BiH No. 09/03), and enforcing by-laws ( Official Gazette of BiH No. 56/05), all dealers involved in arms and military equipment brokering have to be registered in the special Register kept with the BiH Ministry of Trade and Economic Relations. By the end of 2006, 162 legal and natural persons had been registered for foreign-trade operations in arms and military equipment brokering, 82 of which are permanent registrations and 80 temporary ones. In 2006, a total of 350 licenses were issued, including: 156 arms and military equipment export licences; 164 arms and military equipment import licences; eight temporary arms and military equipment export licences; three temporary arms and military equipment import licences; five dual-use products export licenses; 14 dual-use products import licenses. Total value of goods brokered against licences issued for arms, military equipment and dual-use arms export, import, temporary import and export, based on pro-forma invoices attached to the licence applications, amounted to 67,285, EUR. It is not possible to offer a realistic overview of the number of issued import and export licences until the moment that the validity of the issued licences expires (licences are issued for a period of one-year validity). Arms and military equipment export Total value of goods brokered against export licences issued in 2006, based on pro-forma invoices attached to the licence applications, amounted to 50,288, EUR. (Annex A.) 156 export licences have been issued for 42 countries, namely: Austria Ireland Oman Belgium Italy Portugal Bulgaria Israel Romania Czech Republic Canada Saudi Arabia Montenegro Qatar SCG Egypt Cyprus Slovakia Equatorial Guinea Latvia Slovenia England Libya Spain Finland Litvania Serbia France Hungary Sri Lanka Greece Macedonia Switzerland Georgia Malaysia Turkey Croatia Mongolia USA India Germany Vietnam 3

7 The structure of commodities subject to export included products under ten control numbers of the EU Common list of military equipment. Structure of exports from BiH as per classfication under the EU Common list of military equipment MIL EUR LVO1 LVO3 LVO4 LVO22 xxxx LVO1 LVO3 LVO4 LVO22 xxxx weapons with a calibre of 12,7 mm or less Bombs, torpedoes, rockets, missiles Technologies Other items under the EU Common list of military equipment ( LVO2, LVO6, LVO10, VO11, LVO16, LVO 18) According to the value of all licences issued for goods export to the above-mentioned countries, 85% of the value thereof has been exported to the following countries: Export from BiH in mil. EUR Turkey Switzerland Serbia SCG Saudi Arabia Germany Lithuania Libya Geoorgia Malaysia Other 4

8 State Export value (EUR) Turkey ,00 Switzerland ,00 Serbia ,00 SCG ,00 Saudi Arabia ,00 Germany ,00 Litvania ,00 Libya ,00 Georgia ,00 Malaysia ,00 Total value of temporary export of arms and military equipment in 2006, based on pro-forma invoices attached to the licence applications, amounted to 145, EUR. (Annex D.) Eight temporary export licences to three countries have been issued, namely: Serbia and Montenegro, USA, Serbia. Two licence applications for arms and military equipment export to Georgia have been denied. The licence applications have been denied as a result of the application of the EU Code of Conduct for arms and military equipment export. (Annex C.) Arms and military equipment import Total value of goods brokered against import licences issued in 2006, based on pro-forma invoices attached to the licence applications, amounted to 12,666, EUR. (Annex B.) 164 import licences have been issued for 23 countries, namely: Austria Canada Slovakia Belgium China Slovenia Czech Republic Cyprus Spain England Lichtenstein Serbia France Hungary Switzerland Greece Germany Turkey Croatia Russia USA Italy SCG According to the value of all import licences, 90% of the value thereof has been imported from the following countries: Austria ,00 Belgium ,00 Czech Republic ,00 England ,00 Croatia ,00 Italy ,00 Hungary ,00 SCG ,00 Slovenia ,00 Serbia ,00 5

9 Structure of export from BiH as per classification under the EU Common list of military equipment MIL. EUR LVO1 LVO3 LVO4 LVO18 xxxxxx Austria Belgium Czech Republic UK Croatia Italy Hungary SCG Slovenia Serbia Other countries The structure of imported commodities included the products under seven control references of the EU Common list of military equipment. LVO1 LVO3 LVO4 LVO18 xxxx weapons with a calibre of 12,7 mm or less Bombs, torpedoes, rockets, missiles Equipment for production of items given under EU Common list of military equipment. Other items under the EU Common list of military equipment ( LVO2, LVO8, LVO11) Total value of arms and military equipment temporary imports in 2006, as per pro-forma invoices attached to the licence applications, amounted to 687, EUR. (Annex E.) Three temporary licenses for import from the following countries have been issued: Serbia and Montenegro, USA, Serbia. 6

10 Dual-use products export Total value of goods brokered against dual-use product export licences issued in 2006, as per pro-forma invoices attached to the licence applications, amounted to 372, EUR. (Annex F.) 3603 Safety fuses, detonating fuses, percussion or detonating caps, igniters, electric detonators 3604 Pyrotechnic substances used in fireworks, signalling flares, rain rockets 3926 Other articles of plastics and articles of other materials of headings 3901 to Other articles of vulcanized rubber other than hard rubber Structure of dual-use products as per tariff headings EUR , , Dual-use products import Total value of goods brokered against dual-use products import licences issued in 2006, as per pro-forma invoices attached to the licence applications, amounted to 3,124, EUR. (Annex G.) 14 licences have been issued for import from seven countries (Montenegro, Republic of Slovakia, Serbia, Slovenia, Czech Republic, Republic of Croatia and China). The structure of the goods brokered includes products falling under three tariff headings: 3602 Prepared explosives other than propellant powder 3603 Safety fuses, detonating fuses, percussion or detonating caps, igniters, electric detonators 3604 Pyrotechnic substances used in fireworks, signalling flares, rain rockets 7

11 Structure of dual-use products imports as per tariff headings MIL. EUR The dual-use goods control regime was established in the middle of this year and it includes the brokering of goods listed under the headings 3602, 3603, 3604, which were, prior to the introduction of dual-use products control, subject to the military products licencing regime. Overview of the brokered values as per licences issued, compared to licenses issued in 2005: MIL. EUR Export NVO Import NVO Export DU Import DU Total trade Taking into account the brokered value as per licences issued, based on pro-forma invoices submitted, one may conclude that there have been no major changes in arms and military trade compared to the previous year. 8

12 Annex A EXPORT LICENCES ISSUED FOR PRODUCTS UNDER MILITARY LIST end-user country NUMBER OF LICENCES EU LVO CATEGORY DESCRIPTION VALUE (eur) Austria 1 LVO1 0,00 weapons with a calibre of 12, 7 mm or less Austria 1 LVO2 Smooth-bore weapons with a calibre of 20 mm or more, other arms and weapons with a 9.690,00 calibre of 12,7 mm or more Austria 5 LVO ,00 Total ,00 Belgium 2 LVO ,00 Total ,00 Bulgaria 1 LVO ,00 Total ,00 Canada 1 LVO ,00 Total ,00 Croatia 1 LVO ,00 Croatia 2 LVO2 Smooth-bore weapons with a calibre of 20 mm or more, other arms and weapons with a 7.440,00 calibre of 12,7 mm or more Croatia 7 LVO ,00 Croatia 3 LVO4 Bombs, torpedoes, rockets, missiles ,00 Total ,00 Cyprus 1 LVO2 Smooth-bore weapons with a calibre of 20 mm or more, other arms and weapons with a 1.820,00 calibre of 12,7 mm or more Total ,00 Czech Republic 2 LVO ,00 Total ,00 Egypt 3 LVO ,00 Egypt 2 LVO11 Electronic equipment and components thereof specially designed for military use ,00 Total ,00 Equator Guinea 1 LVO ,00 Total ,00 Finland 1 LVO ,00 Total ,00 9

13 France 1 LVO ,00 Total ,00 Germany 12 LVO ,00 Germany 1 LVO4 Bombs, torpedoes, rockets, missiles 222,00 Total ,00 Greece 2 LVO ,00 Total ,00 Georgia 3 LVO2 Smooth-bore weapons with a calibre of 20 mm or more, other arms and weapons with a ,00 calibre of 12,7 mm or more Georgia 2 LVO4 Bombs, torpedoes, rockets, missiles ,00 Total ,00 Hungary 3 LVO ,00 Total ,00 India 1 LVO10 Aircrafts, unmanned airborne vehicles, aeroengines and aircraft equipment ,00 Total ,00 Ireland 1 LVO ,00 Total ,00 Israel 4 LVO ,00 Total ,00 Italy 1 LVO ,00 Total ,00 Latvia 1 LVO ,00 Total ,00 Libya 1 LVO22 Technologies ,00 Total ,00 Lithuania 2 LVO ,00 Lithuania 2 LVO ,00 Total ,00 Macedonia 1 LVO1 232,00 Macedonia 1 LVO ,00 Macedonia 1 LVO4 Bombs, torpedoes, rockets, missiles ,00 Total ,00 Malaysia 4 LVO ,00 Malaysia 2 LVO4 Bombs, torpedoes, rockets, missiles ,00 Total ,00 10

14 Mongolia 1 LVO ,00 Total ,00 Montenegro 1 LVO1 750,00 Montenegro 1 LVO ,00 Montenegro 1 LVO4 Bombs, torpedoes, rockets, missiles ,00 Total ,00 Oman 2 LVO ,00 Total ,00 Portugal 1 LVO ,00 Total ,00 Qatar 1 LVO4 Bombs, torpedoes, rockets, missiles ,00 Total ,00 Romania 1 LVO ,00 Total ,00 Saudi Arabia 3 LVO ,00 Total ,00 Serbia 1 LVO ,00 Serbia 4 LVO ,00 Serbia 1 LVO4 Bombs, torpedoes, rockets, missiles ,00 Serbia 1 LVO16 Forgings, castings and other unfinished products 9.484,00 Serbia 1 LVO18 Equipment for production of items given under EU Common list of military equipment 4.019,00 Total ,00 Serbia & Montenegro Serbia & Montenegro Serbia & Montenegro 2 LVO1 14 LVO , ,00 7 LVO4 Bombs, torpedoes, rockets, missiles ,00 Total ,00 Slovak Republic 1 LVO ,00 Total ,00 Slovenia 1 LVO ,00 Total ,00 Spain 2 LVO ,00 Total ,00 11

15 Sri Lanka 1 LVO4 Bombs, torpedoes, rockets, missiles 3.885,00 Total ,00 Switzerland 6 LVO ,00 Total ,00 Turkey 2 LVO ,00 Turkey 1 LVO4 Bombs, torpedoes, rockets, missiles ,00 Turkey 1 LVO6 Ground vehicles and components ,00 Total ,00 United Kingdom 9 LVO ,00 Total ,00 USA 5 LVO ,00 USA 2 LVO ,00 USA 1 LVO4 Bombs, torpedoes, rockets, missiles 947,00 Total ,00 Vietnam 1 LVO ,00 Total ,00 TOTAL ,288,873 12

16 Annex B IMPORT LICENCES ISSUED FOR PRODUCTS UNDER MILITARY LIST exporting country NUMBER OF LICENCES EU LVO CATEGORY DESCRIPTION VALUE(eur) Austria 27 LVO ,00 Austria 2 LVO ,22 Austria 4 LVO4 Bombs, torpedoes, rockets, missiles ,00 Total ,22 Belgium 1 LVO18 Equipment for production of items given under EU Common list of military equipment ,00 Total ,00 Canada 2 LVO ,00 Total ,00 China 1 LVO ,68 Total ,68 Croatia 7 LVO ,00 Croatia 4 LVO Croatia 4 LVO4 Bombs, torpedoes, rockets, missiles ,00 Total ,96 Cyprus 1 LVO ,20 Total ,20 Czech Republic LVO ,00 4 Czech Republic 4 LVO ,00 Czech Republic 4 LVO4 Bombs, torpedoes, rockets, missiles ,00 Total ,00 France 1 LVO ,00 France 1 LVO8 Energetic materials, and related substances 6.450,00 Total ,00 Germany 3 LVO ,00 Germany 1 LVO ,00 13

17 Germany 1 LVO8 Energetic materials, and related substances 5.834,00 Germany 1 LVO11 Electronic equipment and components therefor specially designed for military use 5.435,00 Total ,00 Greece 3 LVO ,00 Total ,00 Hungary 1 LVO ,00 Hungary 3 LVO4 Bombs, torpedoes, rockets, missiles ,00 Hungary 2 LVO8 Energetic materials, and related substances ,00 Total ,00 Italy 5 LVO ,00 Italy 4 LVO ,00 Total ,00 Liechtenstein 1 LVO ,00 Total ,00 Russia 3 LVO ,00 Total ,00 Serbia 9 LVO ,92 Serbia 5 LVO ,00 Serbia 3 LVO4 Bombs, torpedoes, rockets, missiles ,80 Total ,52 Serbia & Montenegro Serbia & Montenegro Serbia & Montenegro 7 LVO1 6 LVO , ,00 5 LVO4 Bombs, torpedoes, rockets, missiles ,00 Total ,00 Slovak Republic 1 LVO4 Bombs, torpedoes, rockets, missiles ,00 Total ,00 Slovenia 3 LVO ,00 Slovenia 3 LVO ,00 Slovenia 4 LVO4 Bombs, torpedoes, rockets, missiles ,00 Total ,00 Spain 1 LVO ,00 Total ,00 14

18 Switzerland 5 LVO ,92 Switzerland 2 LVO2 Smooth-bore weapons with a calibre of 20 mm or more, other arms and weapons with a 6.089,94 calibre of 12,7 mm or more Switzerland 5 LVO ,40 Total Turkey 2 LVO ,00 Turkey 1 LVO ,00 Total ,00 United Kingdom 3 LVO3 1,000,000 United Kingdom 1 LVO4 Bombs, torpedoes, rockets, missiles ,00 Total ,00 USA 3 LVO ,72 USA 2 LVO ,12 Total ,00 TOTAL ,00 15

19 Annex C EXPORT LICENCES DENIED FOR PRODUCTS UNDER MILITARY LIST end-user country Georgia Georgia EU LVO CATEGORY LVO2 LVO3 DESCRIPTION Mortar components and accessories Grenades 122 mm NUMBER OF UNITS (pcs) VALUE(eur) ,00 1, ,00 TOTAL 9.909,00 end user Georgia Defence Ministry Georgia Defence Ministry REASON FOR DENIAL EU Code 4 EU Code 4 16

20 Annex D TEMPORARY EXPORT LICENCES ISSUED FOR PRODUCTS UNDER MILITARY LIST temporary import country NUMBER OF LICENCES EU LVO CATEGORY DESCRIPTION VALUE(eur) Serbia 1 LVO1 376,00 Serbia 1 LVO ,00 Total ,00 Serbia & Montenegro 1 LVO6 Ground vehicles and components 10.16,007 Serbia & Montenegro Serbia & Montenegro 1 LVO10 2 LVO11 Aircrafts, unmanned airborne vehicles, aeroengines and aircraft equipment Electronic equipment and components thereof specially designed for military use 5.360, ,00 Total ,00 USA 1 LVO3 10,00 USA 1 LVO4 Bombs, torpedoes, rockets, missiles 1.709,00 Total ,00 TOTAL ,00 17

21 Annex E TEMPORARY IMPORT LICENCES ISSUED FOR PRODUCTS UNDER MILITARY LIST end user country NUMBER OF LICENCES EU LVO CATEGORY DESCRIPTION VALUE (eur) Kuwait 1 LVO6 Ground vehicles and components ,00 Total ,00 Serbia & Montenegro Serbia & Montenegro LVO1 1 LVO10 Turbo-jet engines, turbo-propeller engines and other gas turbines , ,00 Total ,00 Turkey 1 LVO4 Bombs, grenades, torpedoes, mines, rockets and similar military ammunition and 1,00 components thereof Total 1 1,00 TOTAL ,00 18

22 Annex F EXPORT LICENCES ISSUED FOR DUAL-USE PRODUCTS destination NUMBER OF LICENCES HEADING no. DESCRIPTION VALUE(eur) Montenegro Pyrotechnic substances used in fireworks, signalling flares, rain rockets 6.350,00 Montenegro Safety fuses, detonating fuses, percussion or detonating caps, igniters, electric detonators ,00 Montenegro 3926 Other articles of plastics and articles of other materials of headings 3901 to ,00 Montenegro 4016 Other articles of vulcanized rubber other than hard rubber 2.400,00 Total ,000 Serbia Safety fuses, detonating fuses, percussion or detonating caps, igniters, electric detonators ,000 Total ,00 Slovak Republic Safety fuses, detonating fuses, percussion or detonating caps, igniters, electric detonators 1.716,00 Total ,00 TOTAL ,00 19

23 Annex G IMPORT LICENCES ISSUED FOR DUAL-USE PRODUCTS destination NUMBER OF LICENCES heading no. DESCRIPTION VALUE China Pyrotechnic substances used in fireworks, signalling flares, rain rockets ,00 Total ,00 Croatia Prepared explosives other than propellant powder ,00 Croatia Safety fuses, detonating fuses, percussion or detonating caps, igniters, electric detonators ,00 Total ,00 Czech Republic Safety fuses, detonating fuses, percussion or detonating caps, igniters, electric detonators ,00 Total ,00 Montenegro Pyrotechnic substances used in fireworks, signalling flares, rain rockets ,00 Total ,00 Serbia Prepared explosives other than propellant powder ,00 Serbia Safety fuses, detonating fuses, percussion or detonating caps, igniters, electric detonators ,00 Total ,00 Slovak Republic Prepared explosives other than propellant powder ,00 Total ,00 Slovenia Prepared explosives other than propellant powder ,00 Slovenia Safety fuses, detonating fuses, percussion or detonating caps, igniters, electric detonators ,00 Total ,00 TOTAL ,00 20

24 21

25 MINISTRY OF FOREIGN TRADE AND ECONOMIC RELATIONS BOSNIA AND HERZEGOVINA Annual Arms Exports and Imports Report MINISTRY OF FOREIGN TRADE AND ECONOMIC RELATIONS BOSNIA AND HERZEGOVINA Annual Arms Exports and Imports Report