The Government of the Republic of Serbia adopted, at yesterday’s meeting, the Law on the Export and Import of Arms and Military Equipment.

Stevan Nikčević, State Secretary for Foreign Trade at the Ministry of Trade, Tourism and Telecommunications, told Tanjug that, once adopted by the National Assembly, the said law will encourage the export of arms and military equipment having in mind the capacity of our defense industry and the high quality of its products.

“The new draft law clearly defines the criteria for issuing permits that are fully consistent with the so-called “common position” of the European Union which in the recent explanatory screening for Chapter 31 (Foreign Policy, Defense and Security) was outlined as the obligation of the Republic of Serbia”, explained Nikčević, adding that the law was prepared in cooperation with European experts as well as experts from the U.S. who expressed their satisfaction with the new law.

According to Nikčević, the novelty in the law is that it allows licensing by the so-called  separate (shortened) procedure when it comes to the participation of members of the security and defense forces in multinational operations, international exercises, or in respect to obligations of the Republic of Serbia arising from international agreements or Serbia’s membership in international organizations, as well as when it comes to equipment that is exported or imported for humanitarian purposes or as a donation.

According to the previous legislation permits for the export and import of arms and military equipment were issued with a validity of up to one year, while the new law provides for the possibility of extending the validity of the license until the completion of the transaction, with a maximum of three years. This measure was aimed at facilitating the business of entrepreneurs in this field, says State Secretary Nikčević. With the same aim, the new law will simplify licensing procedures when it comes to the so-called non-commercial exports and imports (for fair or exhibition purposes), and the export or import of goods acquired on the basis of inheritance or gift.

So far, this area was regulated by the Law on Foreign Trade in Arms, Military Equipment and Dual-Use Goods from 2005.

Instead of one new law, in accordance with European practice, it was decided to make two new laws, a Law on the export and import of dual-use goods, which the National Assembly adopted on October 31, 2013, and a Law on the Export and Import of Arms and Military Equipment whose draft was adopted yesterday by the Government of the Republic of Serbia.

As for the capacity of the domestic defense industry, according to the latest Annual Report on the Transfers of Controlled Goods from 2012, 366 licenses for the export of arms and military equipment were issued in that year with a total value of $ 460 million, which is up by more than a quarter compared to 2011. Most of the goods were exported to the United States (170 million USD), Iraq (42 million USD), and Kenya (29 million USD). From 2005 until 2011, the total value of permits issued for the export of arms and military equipment was $ 3.5 billion.