What is Act No. 38 / 1994 Coll.?

Act No. 38 / 1994 Coll., on Foreign Trade in Military Material — Act on Foreign Trade in Military Material.

When it became Act No. 38 / 1994 Coll. effectiveness?

Act No. 38 / 1994 Coll. became effective 01.04.1994.

Is Act No. 38 / 1994 Coll. still valid?

Yes, Act No. 38 / 1994 Coll. is still valid and effective.

Act No. 38 / 1994 Coll. - Act on Foreign Trade in Military Materia...

38

THE LAW

of 15 February 1994

on foreign trade in military material

Parliament has decided on this law of the Czech Republic:

ČÁST PRVNÍ

GENERAL PROVISIONS

Scope of the law and definition of basic terms

§ 1

(1) This Act regulates the conditions for the conduct of foreign trade in military material (hereinafter referred to as "trade in military material ') and the competence of the authorities in this field.

(2) The performance of the government in the field of trade in military material must be consistent with the international obligations of the Czech Republic and its foreign political, commercial and security interests.

§ 2

(1) By trade in military material, for the purposes of this Act:

(a) exports of military material from the territory of the Czech Republic to a Member State other than that of which:

1. the placing of goods under the customs procedure of export or outward processing; and

2. re-export on the basis of a re-export declaration or re-export notification;

(b) the importation of military material into the territory of the Czech Republic from a Member State other than that which is the entry for the customs procedure for free circulation, including re-importation, inward processing, end-use, temporary importation, customs warehousing or free zone.

(c) the purchase of military material from a foreign person, the sale of military materiel from a foreign person (1), as well as the fulfilment of other obligations towards a foreign person and the acceptance of further supplies from a foreign person whose object is military material in respect of trade in military materiel in relation to non-Member States;

(d) military transfer within Member States.

(2) By trade in military material also means:

(a) mediation of the activities referred to in paragraph 1;

(b) the purchase of military equipment abroad and its subsequent sale to a non-Member State.

(3) For the purposes of this Act, trade in military material shall also be regarded as a written expression of the will to conclude contracts governing the relations referred to in paragraphs 1 and 2.

(4) For the purposes of this Act, except for provisions containing explicit provisions concerning the Member States of the European Union, a Member State shall mean the Member State of the European Union, Iceland and Norway, in accordance with the Agreement on the European Economic Space7.

§ 3

(1) This law does not apply to:

(a) the export or handling of military material outside the territory of the Czech Republic in the operation of the armed forces of the Czech Republic, the Security Corps (1a) or the essential components of the integrated rescue system of the Czech Republic (1b) according to the declared international treaties by which the Czech Republic is bound, including re-imports,

(b) the import or handling of military material on the territory of the Czech Republic in connection with the operation of armed or rescue forces of other States, the United Nations and other international organisations within the territory of the Czech Republic under the declared international treaties by which the Czech Republic is bound, including re-export;

(c) export or disposal of military material outside the territory of the Czech Republic for the purpose of providing humanitarian or development assistance or for involvement in international humanitarian rescue operations, including re-importation, or a gift to a representative of another State, if the Government so decides, under the conditions laid down by the Government;

(d) the importation or handling of military material on the territory of the Czech Republic for the purpose of receiving humanitarian aid, including re-export, if the Government so decides, under the conditions laid down by the Government.

(2) In addition, this Act does not apply to the provision of information, broadcasting and recruitment of experts for the purpose of research, development, construction, production, modification, repair, maintenance, use and control of military material under study programmes accredited under special legislation (1c), which are carried out by a military university.

§ 4

The object of trade in military material shall not be:

(a) weapons of mass destruction, meaning nuclear, chemical and biological weapons1d);

(b) goods subject to the provisions of specific legislation or declared international treaties by which the Czech Republic is bound, prohibiting the use, storage, production and transfer of anti-personnel mines and ordering their destruction (1e) and prohibiting or restricting the use of certain conventional weapons which may cause excessive suffering or may have indiscriminate effects (1f), unless the declared international treaty, which the Czech Republic is bound by, provides otherwise.

§ 5

(1) Military material for the purposes of this Act is:

(a) products, components and spare parts which, due to their characteristic technical and structural characteristics, are considered to be designed or adapted for use in the armed forces or in the Security Corps, or are used collectively in these components to ensure the defence and security of the State;

(b) machinery, equipment, investment units, technology, software, technical documentation or instructions manufactured, modified, equipped, designed or modified for military use, in particular for the development, manufacture, inspection and testing of other products, their components and spare parts referred to in (a).

(2) Military material for the purposes of this Act also means services provided in relation to military material referred to in paragraph 1, in particular the implementation of repairs, modifications, as well as the provision of information, broadcasting and recruitment of experts for the purposes of research, development, construction, manufacture, modification, repair, maintenance, use and control of military material.

(3) The list of military material referred to in the preceding paragraphs shall be laid down in an implementing regulation based on the Common Military Goods List of the European Union.

ČÁST DRUHÁ

AUTHORISING MILITARY GOODS

§ 6

(1) Trade in military material may only be carried out by a legal person established in the territory of the Czech Republic (hereinafter referred to as "legal person") or by an undertaking natural person in cases provided for by this law (hereinafter referred to as "natural person") on the basis of an authorisation; the permit is not required if the trade in military material is carried out by the Ministry of Defence or the Ministry of Interior under the conditions set out in Sections 12a and 12b.

(2) The authorisation is issued by the Ministry of Industry and Trade (hereinafter referred to as "the Ministry") on the basis of binding opinions from the authorities concerned, which are:

a) Ministry of Foreign Affairs from the point of view of the foreign political interests of the Czech Republic, compliance with obligations arising for the Czech Republic under international agreements as well as from the membership of the Czech Republic in international organisations,

(b) Ministry of the Interior in terms of public order, security and protection of the population;

c) Ministry of Defence in terms of defence security of the Czech Republic.

(3) A binding opinion shall be delivered by the authority referred to in paragraph 2 within 20 days of receipt of the copy of the application; a binding opinion shall include the consent or disagreement of the authority concerned to issue an authorisation.

Conditions for authorisation

§ 7

(1) Authorisation may be granted to a legal person provided that:

(a) the capital of a legal person is not more than 49% of the amount of deposits from foreign persons, with the exception of deposits from foreign persons having their registered office or residence in a Member State of the European Union;

(b) members of its statutory, control or other elected body, procurers, where the procurator is awarded, and, in the case of public HEIs, the rector, or the person responsible for his or her deliberations in matters governed by this law;

1. reached the age of 21,

2. are citizens of a Member State of the European Union,

3. have permanent residence in the territory of a Member State of the European Union;

4. are fully arbitrary;

5. satisfy the conditions for the performance of certain functions in the national authorities and organisations under special legislation2);

6. meet the conditions for carrying out sensitive activities under the Special Law (2a);

(c) trade in military material shall be carried out by a legal person in his own name and on his own account;

(d) the financial provision of trade in military material by a legal person is sufficient in view of its expected scale.

(2) The conditions laid down in paragraph 1 (b) must also be fulfilled with the founders, the founders and, where appropriate, the founding members of a legal person, if they are natural persons and the legal person is not yet registered in the Commercial Register.

(3) The permit may be issued to a natural person who is a citizen of the Czech Republic who is resident in the Czech Republic and fulfils the conditions set out in paragraph 1 (b) (1), (4), (5) and (6) and paragraph 1 (c) and (d).

§ 8

A sensitive activity under the Special Act (2a) shall be considered as:

(a) the performance of the duties of a member of the statutory, control or other elected body of a legal person engaged in trade in military material, with the exception of a public university;

(b) the performance of the office of inquiry of a legal or natural person engaged in trade in military material;

(c) the performance of the office of rector of a public university which carries out trade in military material or the performance of the duties of the person entrusted with the task of the rector in matters governed by this law;

(d) the conduct of trade in military material by a natural person holding an authorisation.

§ 9

Application for authorisation

(1) The application for authorisation (hereinafter referred to as "the application for authorisation") shall specify:

(a) the trading firm or the name and address of the legal person's registered office or the name or, where applicable, the name, surname, address of the place of business, address of the place of permanent residence and birth number where the applicant for the authorisation is a natural person;

(b) the name and, where applicable, the name, surname, address of the place of permanent residence and the family number of the members of the statutory body of a legal person and of a procuring entity, if awarded, indicating the manner in which they act on their behalf, as well as the name and, where applicable, surname, address of the place of permanent residence and the natural number of the members of the control or other elected body of the legal person and of the rector of the public higher education or of the person responsible for the conduct of matters governed by this law; for citizens of another Member State of the European Union, the name and, where applicable, the names, surnames, date of birth and other particulars which are capable of being clearly identified by the person concerned,

(c) the identification number of the person (hereinafter referred to as the "identification number"), if assigned,

(d) the subject matter of the business;

(e) specifications of military material within the meaning of Section 5 (3) of this Act with a territorial focus on trade.

(2) The application for authorisation must be supported by:

(a) by a contract or instrument establishing or establishing a legal person by means of a notarial registration or a contract or instrument with the officially certified signatures of the founders or founders, unless the legal person is already registered in the Commercial Register;

(b) the relevant documents, where the information given in the application differs from those entered in a commercial or other similar register;

(c) a certificate of compliance with the conditions for the performance of certain functions in state bodies and organisations under the special legislature3),

(d) evidence of the security capability of a natural person to carry out a sensitive activity or a certificate of a natural person for a confidential or higher level, issued under the special legislature (2a), with members of the statutory, control or other elected body of a legal person, of the procurers, where the procure is granted, of the rector of a public higher education institution, or of persons appointed by him to act in matters governed by this law and of a natural person seeking authorisation.

(3) The application for authorisation shall be made in writing, using an electronic form published in a manner laid down by the law governing the right to digital services (hereinafter referred to as the electronic form).

§ 10

(1) The decision granting the authorisation shall include:

(a) the business firm or the name and registered office of the legal person or the name or, where applicable, the name, surname, place of business, permanent residence and birth number of the natural person and identification number, if assigned;

(b) the definition of military material which is the subject of trade;

(c) the territorial focus of trade in military material;

(d) other conditions for the conduct of trade in military material laid down by the legal person in accordance with Paragraph 1 (2) of this Law;

(e) the authorisation number, the date of issue, the stamp and signature of the authorised official of the Ministry.

(2) The person who has been authorised must notify and document in writing to the Ministry the amendment of any information contained in the application for authorisation or documents accompanying the application; This does not apply in respect of changes in the data contained in public administration information systems to which the Ministry has access in connection with the exercise of its powers under this Act. The notification of the change shall be made in writing using the electronic form within 30 days of the date of the change.

(3) The holder of an authorisation carrying out a transfer of military material from another Member State of the European Union to the territory of the Czech Republic shall inform the Ministry of the implementation of such transfer within 30 days of the date of its implementation. The information shall be submitted in writing using an electronic form.

§ 11

(1) The Ministry will not issue an authorisation in the event that the conditions for its issue set out in paragraphs 7 to 9 are not fulfilled, or if the authorisation would endanger the foreign political or commercial interests of the Czech Republic or public order, security and protection of the population.

(2) An authorisation shall not be issued for a period of three years following the end of the insolvency proceedings or from the date of the previous decision which has not granted the authorisation to conduct trade in military material or from the date of expiry of the authorisation referred to in Article 13 (1) (c).

§ 12

(1) The Ministry shall decide on the application for authorisation within 60 days of its receipt. No decomposition is possible against this decision.

(2) Military material may be traded in accordance with a permit issued, not earlier than the entry of this subject of activity in a commercial or other similar register.

§ 12a

(1) Trade in military material consisting of its purchase or import may be carried out on behalf of the Czech Republic by the Ministry of Defence or by the Ministry of Interior, to the extent that the performance of its tasks is ensured.

(2) The Ministry of Defence or the Ministry of Interior shall issue licence certificates instead of licence upon submission

(a) an application for a licence certificate containing:

1. the designation, name and registered office of the State's organisational body;

2. the name, names, surnames and birth numbers of persons authorised for the Ministry of Defence or the Ministry of Interior to act;

3. the description of the contract concluded, which is a condition for the execution of the transaction;

4. the name of the State from which the military material is to be imported;

5. name of military material as specified in the Military Goods Controls, its quantities, registration or production numbers, if assigned;

6. the number or, where applicable, the heading or subheading of the Combined Nomenclature 3a),

7th contract price per unit of quantity of military equipment in CZK and total price in CZK,

8. the estimated period during which the transaction can be executed under the contract concluded;

9. Other data relating to the specific trade in military material,

(b) contracts concluded for trade in military material;

(c) the end-use document of military material referred to in Article 15 (5).

(3) The licence certificate application shall be submitted in writing using an electronic form.

(4) The licence certificate shall contain the information referred to in paragraph 2 (a). The licence certificate shall not replace the obligation of entities other than the Ministry of Defence or the Ministry of Interior to conduct trade in military material on the basis of a permit or licence under this Act.

(5) The licence certificate referred to in paragraph 2 shall expire on the expiry of the period during which the trade in military material is to be carried out, as indicated in the licence certificate. If the licence certificate has expired, the Ministry of Interior or the Ministry of Defence shall return it to the Ministry within 15 days.

(6) The Ministry of Defence and the Ministry of Interior are required to inform the Ministry of the use of licence certificates by the tenth day of each month following the end of the first and second calendar half. The information shall be submitted in writing using an electronic form. In addition to the general requirements of the submission, information contained in the application for the issue of a licence certificate and issued by a licence certificate relating to transactions executed on the basis of this licence certificate, the scope of which shall be determined by the implementing legislation, may be requested in the information.

§ 12b

(1) Trade in military material consisting of authorisations not listed in Section 12a may be carried out on behalf of the Czech Republic and in accordance with its foreign policy and security interests by the Ministry of Defence or by the Ministry of Interior on the basis of a government decision and under the conditions laid down by the Government.

(2) The Ministry shall issue licence certificates on presentation to the Ministry of Defence or to the Ministry of Interior on the basis of a government resolution pursuant to paragraph 1.

(a) applications for a licence certificate containing:

1. the designation, name and registered office of the State's organisational body;

2. the name, names, surnames and birth numbers of persons authorised for the Ministry of Defence or the Ministry of Interior to act;

3. the name of the State in which the trade in military material is carried out;

4. name of military material as defined in the Military Goods Controls, its quantities and manufacturing numbers, if any,

5. the heading or subheading of the combined tariff nomenclature, where applicable 3a),

6th contract price per unit of quantity of military equipment in CZK and total price in CZK,

7. the period at which trade in military material is to be carried out; and

8. Other data relating to the specific trade in military material;

(b) contracts concluded for trade in military material; and

(c) the end-use document of military material referred to in Article 15 (5).

(3) The licence certificate application shall be submitted in writing using an electronic form.

(4) The licence certificate shall contain the information referred to in paragraph 2 (a). The licence certificate shall not replace the obligation of entities other than the Ministry of Defence or the Ministry of Interior to conduct trade in military material on the basis of a permit or licence under this Act.

(5) The licence certificate referred to in paragraph 2 shall cease to exist by order of the Government or by the expiry of the period in which the trade in military material is to be carried out, as indicated in the licence certificate. If the licence certificate has expired, the Ministry of Interior or the Ministry of Defence shall return it to the Ministry within 15 days.

(6) The Ministry of Defence and the Ministry of Interior are required to inform the Ministry of the use of licence certificates by the tenth day of each month following the end of the first and second calendar half. The information shall be submitted in writing using an electronic form. In addition to the general requirements of the submission, information contained in the application for the issue of a licence certificate and issued by a licence certificate relating to transactions carried out on the basis of this licence certificate, the scope of which is provided for in the implementing legislation, may be requested.

§ 13

Termination of authorisation

(1) The authorisation expires

(a) the removal of a legal person from a commercial or other register, with a natural person by his death;

(b) a decision on the bankruptcy of a legal or natural person;

(c) by a decision of the Ministry to revoke an authorisation if:

1. authorisation was granted on the basis of incorrect or incomplete data;

2. the legal or natural person no longer fulfils the conditions for authorisation;

3. the foreign political, commercial and security interests of the Czech Republic require this,

4. the holder of the authorisation has seriously infringed the provisions of this law or European Union law, the legislation of a Member State of the European Union, or the declared international agreement which the Czech Republic is bound by, in so far as it governs the trading or handling of military material;

(d) notification by a legal or natural person of the cessation of the activity authorised.

(2) The authorisation is non-transferable; in the event of the disappearance of a legal person or the death of a natural person, it does not transfer to its legal successor.

ČÁST TŘETÍ

CONDITIONS FOR THE GRANTING AND USE OF LICENCES

HLAVA PRVNÍ

LICENCES FOR IMPLEMENTATION OF FOREIGN TRADE WITH MILITARY MATERIALS

§ 14

Licences

(1) A legal person authorised under this Act is entitled to conduct certain trade in military material only on the basis, to the extent and under the conditions laid down in the licence.

(2) A legal person shall apply for the grant of a licence for any contract the object of which is to trade in military material under § 2 (1) (a) to (c) or § 2 (2); trade in military material under § 2 (3) may be carried out without a licence.

Licence application

§ 15

(1) The application for a licence is submitted to the Ministry by a legal person authorised to conduct trade in military material (the applicant).

(2) An application for a licence pursuant to Paragraph 14 (2) shall be submitted following a written presentation of the will of a foreign contractor, made for the purpose of concluding a contract in the field of trade in a particular type and quantity of military material. In the event of the entry of the applicant into an international tender, the applicant may submit an application for a licence already after the publication of a tender or after an invitation to tender.

(3) The application for a licence pursuant to Article 14 (2) must contain:

(a) the firm or name and registered office of the applicant;

(b) the applicant's identification number;

(c) a business firm or name and registered office, or the name or, where applicable, the name, surname and place of business of a foreign contract partner or domestic contract partner,

(d) the authorisation number for the conduct of trade in military material;

(e) the number or, where appropriate, the heading or subheading of the combined tariff nomenclature 3a),

(f) the name of the military material as specified in the list of military goods and quantities thereof, in the case of significant military material referred to in Section 20 below, the registration or production numbers, if any,

(g) the proposed period of validity of the licence;

(h) name of the State;

1. from which the military material is to be imported in the case of its importation to the end-user in the Czech Republic,

2. from which the military material is to be imported and the name of the State in whose territory the final user of the military material is located, in the case of its import into the territory of the Czech Republic and subsequent export; or

3. on the territory of which the end-user is located in the case of exports of military material;

4. in which the military material is to be purchased, and the name of the State in whose territory the end-user of military material is located, in the event that it is not imported into the Czech Republic,

(i) the purpose of foreign trade in military material, indicating whether it is a trade within the meaning of Article 2 (2);

j) offer or contract price per unit of quantity of military equipment in CZK and total price in CZK,

(k) business name and registered office, or name and, where applicable, name, surname and place of business of the end-user;

(l) the geographical name and coordinates of the location of the deposit of military material limited by international agreement in the Czech Republic before or after export, if the subject of the contract is military material of importance within the meaning of Article 20 (4).

(4) Application for a licence pursuant to Paragraph 14 (2) shall be supported by:

(a) a proposal to conclude a contract or to conclude a contract, stating that such documents must contain a precise specification of the military material, including an indication of its quantity;

(b) end-use proof; in the case of military material imported on the basis of a transfer licence pursuant to Title II to which the export restriction relates, a declaration by the applicant that it has complied with the conditions set out in the export restriction and an appropriate document of the consent of the competent authority of the Member State of origin of the military material;

(c) other information identifying military material where necessary for the proper examination of the application.

(5) The end-use document referred to in paragraph 4 (b) must not be more than 12 months old and must contain:

(a) the name of the State in whose territory the final use of military material is situated;

(b) the name of the issuing authority;

(c) the company or name and registered office of the applicant;

(d) the company or name and registered office, or the name or, where appropriate, the name, surname and place of business of the end-user;

(e) a precise description of the military material, in particular its quantity, characteristics and value;

(f) date of issue;

(g) an anti-re-export clause;

(h) the name and, where appropriate, the name, surname and stamp and the signature of the authorised representative of the authority issuing the document;

(i) information on the end-use of military material.

(6) Licence applications shall be submitted in writing using an electronic form.

§ 16

(1) The Ministry shall decide on the application for a licence within 60 days of its receipt on the basis of binding opinions

a) Ministry of Foreign Affairs from the point of view of the foreign political interests of the Czech Republic and respect for the international obligations of the Czech Republic, in particular those arising from the declared international treaties by which the Czech Republic is bound and from the membership of the Czech Republic in international organisations,

b) Ministry of the Interior in terms of public order, security and protection of the population;

Citation	Act No. 38 / 1994 Coll., on Foreign Trade in Military Material
Regulation Type	-
Author	-
Collection	Code of Laws

Date of Promulgation	21.03.1994
Effective from	01.04.1994
Effective until	-
Status	Valid

Act No. 38 / 1994 Coll.

Act on Foreign Trade in Military Material

Contents