On the Control of Military and Dual-Use Goods

LAW OF GEORGIA

ON THE CONTROL OF MILITARY AND DUAL-USE GOODS

 

Chapter I - Scope and Purpose of the Law; Definition of Terms

 

Article 1

1. This Law regulates the basis and the procedure for exercising national control and policy in relation to the circulation of military and dual-use goods ('the Goods). The aim of this Law is:

a) to protect the national security of Georgia by establishing national control over the circulation of the Goods;

b) to support the strengthening of international stability and security in accordance with the obligations and principles existing within the framework of the United Nations ('the UN');

c) to ensure that Georgia fulfils international obligations undertaken as a member state of the UN and of the Non-proliferation and Security Regimes.

2. This Law does not regulate issues connected with the circulation of civilian weapons. Issues connected with the circulation of civilian weapons are regulated by the Law of Georgia on Weapons and other legislative and subordinate normative acts of Georgia.

 

Article 2

The terms used in this Law shall have the following meaning:

a) a non-resident - this term shall be defined withing the meaning of the Tax Code of Georgia;

b) a broker – a resident who carries out brokerage services under this Law;

c) a carrier – a natural or legal person or any other organisational entity responsible for the transit of goods;

d) export:

d.a) the temporary or permanent removal of goods from the customs territory of Georgia, which is subject to customs control;

d.b) the transfer of computer software and/or technologies specified in the control lists referred to in sub-paragraph (p) of this article from the customs territory of Georgia by any electronic means, which includes the provision of access to such computer software and/or technologies, to a natural or legal person or other organisational entity in an electronic form;

d.c) the transfer of computer software and/or technologies specified by the control lists referred to in sub-paragraph (p) of this article via phone or orally within the customs territory of Georgia to a non-resident or another organisational entity;

e) an exporter – an administrative body, or a natural or legal person or any other organisational entity that carries out exportation;

f) import – to bring goods into the customs territory of Georgia, temporarily or permanently;

g) importer – an administrative body, or a natural or legal person or any other organisational entity that carries out importation;

h) a permit – this term shall be defined within the meaning of the Law of Georgia on Licences and Permits;

i) a permit issuer – an administrative body that issues permits according to the procedure laid down by the legislation of Georgia;

j) a permit applicant - this term shall be defined within the meaning of the Law of Georgia on Licences and Permits;

k) a permit holder - this term shall be defined within the meaning of the Law of Georgia on Licences and Permits;

l) dual-use goods – goods (including computer software and/or technologies) that can be used for both civil and military purposes, as well as for the manufacture of biological and/or chemical weapons, or nuclear weapons or any other explosive weapons composed of nuclear materials, including for non-explosive purposes;

m) a resident – this term shall be defined within the meaning of the Tax Code of Georgia;

n) an end-user certificate – a document confirming the purpose of final use and the user of the goods;

o) brokerage services:

o.a) the organisation of the purchase, sale or delivery of goods from outside the customs territory of Georgia in another final destination outside the customs territory of Georgia, including the conduct of official negotiations;

 Note: This sub-paragraph regulates activities connected with the organisation of the purchase, sale or delivery for the transfer the Goods between two or more identified countries;

o.b) the purchase and sale of goods located outside of the customs territory of Georgia or the delivery of them to another country outside the Georgian customs territory.

Note: Brokerage services do not cover such auxiliary services as transportation, financial services, insurance and reinsurance, general advertising and support;

p) control lists – lists of military and dual-use goods determined by the Ordinance of the Government of Georgia on the Approval of the Lists of Military and Dual-Use Goods;

q) military goods – goods for military use specified in the control lists referred to in sub-paragraph (p) of this article;

r) permit conditions – conditions established under this Law that shall be met by a permit holder while carrying out the activities determined by the permit;

s) the customs territory of Georgia – this term shall be defined within the meaning of the Tax Code of Georgia;

t) the State border - this term shall be defined within the meaning of the Law of Georgia on State Borders of Georgia;

u) technical assistance – technical assistance connected with repairing, developing, manufacturing, assembling, and testing goods, or other technical assistance that may include the provision of instructions, training, sharing of working experience, and consultative assistance connected with the goods. Technical assistance also comprises any form of verbal support.

v) transit – this term shall be defined within the meaning of the Tax Code of Georgia;

 

Chapter II - Export

 

Article 3

The export of the goods specified in the control lists referred to in Article 2(p) of this Law shall be carried out on the basis of a permit issued under the legislation of Georgia.

 

Article 4

The export of the dual-use goods that are not specified by the control lists referred to in Article 2(p) of this Law shall require a permit if:

a) the permit issuer referred to in Article 10 of this Law, based on a reasonable belief, has informed the exporter that the Goods will or could be used, entirely or partially, for:

a.a) the design, development, manufacture, management, exploitation, maintenance, storage, discovery, identification or circulation of biological and/or chemical weapons, nuclear weapons or other explosive devices composed of nuclear materials, or for the design, development, manufacture, maintenance or storage of shells and/or rockets used to carry such weapons;

a.b) military purposes, if under a resolution of the UN Security Council or the international obligations of Georgia, or unilaterally by Georgia, there is an arms embargo imposed on the purchasing party or the state of final destination. 'Use for military purposes' referred to in this article shall mean:

a.b.a) the installing and/or mounting of the Goods in the military goods specified by the control lists referred to in Article 2(p) of this Law;

a.b.b) the use of industrial, testing or analytical equipment or its components for the design, development, manufacture or maintenance of military goods specified by the control lists referred to in Article 2(p) of this Law;

a.b.c) the use of any partially manufactured goods for the manufacture of military goods specified by the control lists referred to in Article 2(p) of this Law;

b) the exporter knows or reasonably believes that the goods provided for by this article will be used, entirely or partially, for the purposes determined by sub-paragraph (a) of this article.

 

Chapter III - Import

 

Article 5

Importation of the goods specified by the control lists referred to in Article 2(p) of this Law shall be carried out on the basis of a permit issued under the legislation of Georgia.

 

Chapter IV - Transit

 

Article 6

1. Transit of the military goods specified by the control lists referred to in Article 2(p) of this Law shall be carried out on the basis of a permit issued under the legislation of Georgia.

2. Transit of goods marked in the control lists referred to in Article 2(p) of this Law with one asterisk (*) and/or two asterisks (**) shall be carried out on the basis of a permit issued under the legislation of Georgia.

 

Chapter V - Brokerage Services

 

Article 7

1. Brokerage services relating to the military goods specified by the control lists referred to in Article 2(p) of this Law shall be carried out on the basis of a permit for brokerage services issued under the legislation of Georgia.

2. Brokerage services relating to the dual-use goods specified by the control lists referred to in Article 2(p) of this Law shall be carried out on the basis of a permit for brokerage services issued under the legislation of Georgia, if:

a) the permit issuer referred to in Article 10 of this Law, based on a reasonable belief, has informed the broker that the goods will be used, entirely or partially, for the purposes determined by Article 4(a) of this Law.

b) the broker knows or reasonably believes that the goods provided for by this paragraph will or could be used, entirely or partially, for the purposes determined by Article 4(a) of this Law.

 

Chapter VI - Technical Assistance

 

Article 8

1. Technical assistance shall be provided by a resident outside the customs territory of Georgia on the basis of a permit issued under the legislation of Georgia, if:

a) the permit issuer, based on a reasonable belief, has informed the person rendering the technical assistance that the technical assistance will be used, entirely or partially, for the purposes determined by Article 4(a) of this Law;

b) the person providing technical assistance knows or reasonably believes that the technical assistance will be used, entirely or partially, for the purposes determined by Article 4(a) of this Law.

2. Paragraph 1 of this article does not apply to cases where technical assistance:

a) is public information or part of fundamental scientific research;

b) is carried out in an oral form and is not connected with the technologies specified by the control lists referred to in Article 2(p) of this Law.

 

Chapter VII - Permits

 

Article 9

The Ministry of Defence of Georgia is the body authorised to issue the following permits for the military goods specified by the control lists referred to in Article 2(p) of this Law:

a) export permits;

b) import permits;

c) transit permits;

d) brokerage services permits;

e) technical assistance permits.

 

Article 10

1. The Legal Entity under Public Law (LEPL) called the Revenue Service of the Ministry of Finance of Georgia ('the Revenue Service') is a body authorised to issue the following permits for the dual-use goods specified by the control lists referred to in Article 2(p) of this Law:

a) export permits;

b) import permits;

c) transit permits;

d) brokerage services permits;

e) technical assistance permits.

2. The permits referred to in paragraph 1 of this article shall be issued on the basis of a recommendation of the Standing Commission on Military-technical Issues of the Ministry of Defence of Georgia:

a) if the dual-use goods are marked with one asterisk (*) and/or two asterisks (**) in the control lists;

b) in the cases provided for by Articles 4, 7(2) and 8(1) of this Law.

 

Article 11

1. Interagency coordination issues connected with the exercise of control provided for by this Law, as well as the methods and rules for the exercise of control, and issues connected with the interpretation and use of this Law, and rules for the issuance of end-user certificates, shall be determined by the Ordinance of the Government of Georgia on the Measures concerning Control of Military and Dual-Use Goods.

2. In the cases provided for by the normative act referred to in paragraph 1 of this article and on the basis of this act, electronic documents may be used and documents may be exchanged through the electronic document flow systems at the time of issuing permits and/or implementing control measures.

3. The normative act referred to in paragraph 1 of this article may establish exceptions in respect of the permits provided for by this Law and the procedures of their issuance.

 

Article 12

1. A permit applicant is a person directly carrying out the activities authorised by the permit. In the case of transit, a carrier may also be a permit applicant.

2. In order to obtain a permit, a permit applicant shall apply to the permit issuer specified in Articles 9 and 10 of this Law and submit:

a) documents required by the Law of Georgia on Licences and Permits and by other normative acts of Georgia;

b) documents required under the normative act referred to in Article 11(1) of this Law.

3. In the cases provided for by Article 10(2) of this Law, a permit applicant shall apply for a recommendation to the Standing Commission on Military-technical issues of the Ministry of Defence of Georgia, and after receiving such recommendation, to the permit issuer. If a permit applicant submits an application in violation of this procedure, the proceedings stipulated for the issuance of a permit shall not start and this application shall be forwarded for review to the Standing Commission on Military-technical issues of the Ministry of Defence of Georgia.

4. The normative act referred to in Article 11(1) of this Law specifies cases where an administrative body, or a natural or legal person or any other organisational entity, need not acquire a permit. This shall not apply to the obligation to acquire a recommendation from the Standing Commission on Military-technical Issues of the Ministry of Defence of Georgia.

 

Article 13

1. While issuing recommendations, the Standing Commission on Military-technical Issues of the Ministry of Defence of Georgia shall take into consideration:

a) international obligations undertaken by Georgia in respect of the non-proliferation of nuclear weapons, and weapons of mass destruction and other type of weapons;

b) the national and security interests of Georgia.

2. The list of documents to be submitted to the Standing Commission on Military-technical issues of the Ministry of Defence of Georgia, and the decision-making procedure, as well as the criteria to be considered at the time of making a decision, shall be determined under the normative act provided for by Article 11(1) of this Law.

3. The General Administrative Code of Georgia shall not apply to the activities carried out by the Standing Commission on Military-technical Issues of the Ministry of Defence of Georgia.

 

Article 14

1. A permit applicant shall submit to the permit issuer all information necessary to obtain a permit or a recommendation under this Law.

2. The permit shall be valid for the term specified therein. If a permit does not specify a term, it shall be valid for 12 months from the date of its issuance.

3. A permit holder is obligated to fulfil permit conditions established by the legislation of Georgia, inter alia:

a) to notify the permit issuer of any changes made to the documents submitted for the issuance of the permit;

b) to develop an internal control system that ensures that the permit holder fulfils the permit conditions;

c) to permanently maintain an information database that will enable the permit holder to submit to the permit issuer a progress report on the activities authorised by the permit;

d) to assist and not to hinder the permit issuer in carrying out control measures established by the legislation of Georgia for the control of activities authorised by the permit.

 

Article 15

1. The permit issuer may refuse to grant a permit, or suspend an issued permit or revoke it (declare it invalid, null and void or repealed):

a) in the cases provided for by the Law of Georgia on Licences and Permits;

b) on the basis of the normative act referred to in Article 11(1) of this Law;

c) based on state interests or if there is an embargo or state sanctions imposed on a specific country under Chapter VIII of this Law.

2. The Revenue Service is authorised to suspend the export, import, or transit of the Goods if there are new circumstances that need to be examined by a competent body and that could not have been taken into account at the time of the issuance of the permit. In such cases, the Revenue Service shall refer the case for re-examination to the relevant competent body.

 

Chapter VIII - International Economic Sanctions

 

Article 16

1. The participation of Georgia in economic sanctions imposed against one or more countries is governed by the legislation of Georgia or is based on a decision of the UN or any other international organisation.

2. Georgia may unilaterally impose the sanctions referred to in paragraph 1 of this article.

3. If Georgia imposes international economic sanctions, the procedure for damage compensation shall be determined under the legislation of Georgia.

4. The Working Group of the Government Commission for Compliance with the Resolutions of the UN Security Council shall be authorised to impose prohibitions, inter alia, on the export, import, or transit of the Goods.

5. The prohibitions referred to in paragraph 4 of this article shall be binding for the administrative bodies that receive such an order.

 

Chapter IX - Control Measures

 

Article 17

1. A permit holder shall maintain a register of activities authorised by the permit in accordance with the Law of Georgia on Licences and Permits.

2. The register referred to in paragraph 1 of this article shall be kept for 6 years. This period shall be calculated from the end of the year when the permit's validity expires. Primary accounting documents shall be kept for a term not less than the one provided for by this paragraph, even if the relevant legislation provides for a shorter term.

 

Article 18

Movement across the state borders of Georgia of Georgian arms, and military equipment, and auxiliary equipment intended for educational and military use specified by the control list referred to in Article 2(p) of this Law, and their constituent parts, shall be carried out by, and the controlling body shall be determined by, a decision of the Government of Georgia or of an administrative body authorised by the Government of Georgia, and this shall be notified to the Standing Commission on Military-technical issues of the Ministry of Defence of Georgia.

 

Article 19

1. For the purpose of exercising control, the permit issuers referred to in Articles 9 and 10 of this Law are authorised to require that a permit holder submit information or documents connected with the activities authorised by the permit. A permit holder shall submit information or documents within a reasonable period.

2. Information about permit applicants or permit holders obtained in the process of exercising control under this Law shall be used only for the purposes of this Law.

 

Chapter X - Liability for Violating this Law

 

Article 20

1. Violation of permit conditions determined by this Law shall cause the imposition of fines under the Law of Georgia on Licences and Permits.

2. Criminal liability for violation of this Law shall be determined under the Criminal Code of Georgia.

 

Chapter XI - Transitional Provisions

 

Article 21

Permits issued prior to the entry of this Law into force shall remain in force.

 

Article 22

The Government of Georgia shall adopt the normative acts provided for by this Law within 6 months from the promulgation of this Law.

 

Chapter XII - Final Provisions

 

Article 23

The Law of Georgia On Export and Import Control of Arms, Military Equipment and Dual-Use Goods of 28 April 1998 (the Parliamentary Bulletin, No. 19-20, 30.5.1998, p.19) is hereby repealed.

 

Article 24

1. This Law, except for Articles 1-21 and 23, shall enter into force upon promulgation.

2. Articles 1-21 and 23 of this Law shall enter into force on 1 October 2014.

 

 

President of Georgia                                                                                                                                                  George Margvelashvili

Kutaisi

29 November 2013

No 1683-Iს