1. REPORTING PERIOD AND SCOPE

The reporting period is the year 1999, 11.-31.12.1999. This report covers exports authorised under the Act on the Export and Transit of Defence Materiel.

2. LEGAL BASIS AND NATIONAL LICENSING GUIDELINES

The basic principles, policies and national practices on the export of conventional arms and related technology are embodied in the Finnish legislation concerned. The export of defence materiel and its transit is allowed only if authorisation (export licence) therefore has been granted. Authorisation shall not be granted if it jeopardises Finland's security or is in contradiction with Finland's foreign policy.

These basic principles in the Act on the Export and Transit of Defence Materiel are supplemented by clarifying rules contained in the national Guidelines. According to them, the following factors shall be taken into account in the overall assessment of licence applications

- foreign and security policy aspects, including the relevant UN, OSCE, EU and other international obligations be they decisions on arms embargoes, multilateral restraints, criteria, principles or guidelines of multilateral export control regimes

- analysis of the situation prevailing in the recipient country, especially with regard to human rights, including attitudes of other States vis-à-vis the recipient country

- characteristics, intended use and military significance of the item to be exported

- significance of the item and export in relation to the materiel preparedness of Finnish national defence and to the development of domestic defence industry.

The EU Code of Conduct on Arms Exports is incorporated in the Finnish legislation as an annex to the national Guidelines.

Accordingly, all applications are assessed on a case-by-case basis. In ambiguous cases, restraint should be preferred. If the export of the item in question, by virtue of its characteristics and significance, will not lead to, or will in all likelihood not to be used in violations of human rights, offensive armed action or other comparable unacceptable purposes inside or outside the recipient country, granting of a licence may be recommended if the overall assessment is otherwise favourable and if the formal licensing requirements have been met.

There are specific rules for the export licensing of components and subsystems of any defence equipment.

The relevant Finnish legislation is as follows:

Act on the Export and Transit of Defence Materiel (promulgated in 1990, amendments in force since 1 March 1995)

- a concise framework law stipulating the authorisation and procedure as well as sanctions in case of violations

- establishes the following responsibilities for various authorities:

1. Ministry of Defence (MoD): licensing authority

2. Council of State (Council of Ministers): grants licences in all major exports; affirms the guidelines

3. Ministry for Foreign Affairs (MfA): advises on foreign and security policy considerations

4. Customs: enforcement

General Guidelines for the Export and Transit of Defence Materiel (in force since 1 April 1995 as a Council of State Decision)

- assists in the application of the Act by giving clarifying rules of foreign and security policy substances as well as of procedural substance

- assists also in the implementation of the international agreements and obligations of Finland in the field of export of defence equipment

- incorporates the international norms to the domestic legislation by explicit references to the OSCE Principles on arms transfers, the EU Code of Conduct on Arms Exports, decisions on arms embargoes by the UNSC or the EU etc. - and by integrating these sets to the Guidelines proper as its annexes.

Decree on the Export and Transit of Defence Materiel (in force since 15 February 1997)

- establishes the coverage of controls by defining the list of defence materiel, by main headings, classified into four item categories (based on characteristics, intended use and military significance of the items)

- by the Act, the coverage includes "related technology" as authorisation is also needed for yielding control or transfer abroad of any

- know-how and licence to manufacture materiel
- machine tools and equipment especially designed for manufacturing materiel
- computer software relating to the manufacture or use of materiel
- the export of technology shall require an export licence even if such technology is intended for development, production or use of an item which is not defined as defence materiel

- authorisation is not required for the exports of technology which is necessary for the installation, use, maintenance, inspection, or repair of an already licensed item

- nor is authorisation required for the export of technology which is widely available internationally or related to basic scientific research.

Decision by the Ministry of Defence (in force since 15 March 1997)

- based on the Decree, the decision implements the Munitions' List of the Wassenaar Arrangement.

Decision by the Ministry of Defence, which introduced the Declaration on intra-Community movement or transit of arms, munitions, war materiels and other military goods, has been abolished by the Decision by the Ministry of Defence, in force since 1 January 2000.

In regard to the destination and end-user of the equipment, the Guidelines include a list of countries embargoed by the UNSC or EU decisions. This "negative list" is updated with new decisions or sanctions or upon their lifting. In general, Finland applies a concept of a selective restraint, based on overall assessment of each case.

3. SCOPE OF ARMS EXPORT LICENSING

The list of defence materiel (conventional weaponry) being controlled, is practically identical with the Common List of Military Equipment. This report covers all arms exports with the exception of exports of civilian hunting and sporting materiel which is licensed under the Firearms Act and Decree.

4. EXPORT LICENCES DURING THE REPORTING PERIOD

Number of export licences granted

174

Total number of applications rejected (denials)*

1.1. - 31.12.1999:1
1.1. - 30.6.2000:2

* Please note that numbers provided herein include only notifications of rejected export applications (denials) in accordance with the operative provision 3 of the EU Code of Conduct and thus do not indicate the total number of export licences and prior enquiries refused

Items according to the Common List of Military Equipment

5. ADDITIONAL REMARKS ON THE EXPORT LICENCE STATISTICS

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