Colonel Jan-Erik Lövgren OAS Committe on Hemispheric Security Effective National Strategies to Mitigate the MANPADS Threat: Export and Import Controls Colonel Jan-Erik Lövgren Deputy Director General Swedish Inspectorate of Strategic Products OAS MANPADS 2007 8 March

Introduction Introduction to Swedish Export Control system Swedish MANPADS system International commitments Implementation on Export Control Implementation on Import Control Ladies and gentlemen, Let me first of all thank you for being invited to this seminar to share with you some wiews on the principals of Swedish exports of military aircrafts. I will elaborate on the following topics An introduction to the Swedish air defence system and the defence industry involved. A presentation of our system for export control and its international co-operation A presentation of the export control related activities of sharing classified information as well as our system for export support activities. Finaly a presentation of how we deal with commersial sales or government sales OAS MANPADS 2007 8 March

Overview of Swedish “Actors” Parliament Government MOD MFA GOVERNMENT OFFICES GOVERNMENT AGENCYS This Picture shows the delivery schedule for the JAS Gripen a/c and the contracted exports sofar. OAS MANPADS 2007 8 March

System for export control - ISP Our Vision: A responsible control of Strategic Products – our contribution to a more secure world. Act on Military equipment (SFS 1992:1300) Ordinance (SFS 1992:1303) Guidelines (Government Bill 1991/92:174) Regulation EC No 1334/2000 Act (SFS 2000:1064) Ordinance (SFS 2000:1217) ISP is National Authority for Implementation The present swedish export control system was introduced 10 years ago when my agency the swedish inspectorate of strategic prodcucts was established by a decision by the swedish parliament. Before was exportcontrol a part of the ministry of foreign affairs (MFA). Today is ISP a subordinate agency to MFA. ISP is a joint body handling both military exports based on national law as well as dual-use exports based on EU regulations. ISP is also the national authority for implementing the UN Cemical Weapons Convention. The leagal framework for military exports comprice of: Act on military equipment decided by parliament (based on a bill from the government) Ordinance decided by government including the controllist for military equipment Guidelines for exportcontrol decisions approved by Parliament OAS MANPADS 2007 8 March

Military Equipment Act Permits are required for: manufacturing providing exports license agreements co-operative agreements Military training and education Information shall be forwarded re.: marketing (quarterly) final and best tenders actual deliveries license- and co-operative agreements (annually) shares in foreign companies (annually) The military equipment act is a prohibitive legislation, meaning that all exports are prohibitied but exemptions can be made. ISP manage all the exemtions by granting different permits A company that wants to manufacture military equipment have to have a basic permit to manufacture. ISP will also supervise the companies by doing compliance vists to the company on a regular basis. The same goes for a company that wants to provide military equipment (brokering). For this purpouse is granted a basic providing permit (this is also included in a manufacturing permit) Of course a company then will need an export permit for every singel export, these are decided on a case by case principal. We do not work with negative or positive landlists. A Company will also need ISP permit before signing a license agreement or entering any other co-operative arrangement. Also any kind of military training or education will demand a permit from ISP The legislation also put an information demand to industry: Basicly marketing is not under control in the legislation, but a company must inform ISP quarterly on what marketing activities that have been done for the last quarter. A company must inform ISP in advance before a binding offer is delivered to a customer. On a yearly basis ISP will be informed of a companys licence and co-operative agreements as well as its shares in foreign companies. OAS MANPADS 2007 8 March

Meetings between ISP and the Industry on a regular basis Export Control Process of Military Equipment ACFA Government Notification of Tender Short TSC ECC Export licence Permit Advisory opinion ISP Classification Meetings between ISP and the Industry on a regular basis Company 1 2 3 4 5 6 7 To manage the neccessary decisions based on our legislation the ISP is using what we call our Export Control process. I want to point out that one important part in this process is that ISP will meet with indystry on a regular basis to have an ”informal” discussion about for instance the marketing reports and other topics. The first question is of course if a product is under military control (shift to new picture) ISP will take a decision if a product is under control based on a request from industry. In difficult questions can ISP bring the question forward to a council ”The technical scientific counsil” (TSC) appointed by government compricing of six technical proffessionals on the level professor. A decision that the product is under control will then lead to the need for a basic permit as described earlier. A company may apply for an Advisory opinion from ISP in case of a ”sensitive” receiver country. Such application may be decided by ISP or by decision of the Director general brought forward to the ”Export Control Counsil” ( ECC) (shift to new picture) As I described earlier a company also have to notify ISP before giving a binding offer on a 4 week silence procedure or on shorter timescheduel with an active decision by ISP. Befor the actuall export the company needs to apply for an export licence. This licence is granted only with an end-use assurance from the receiving country. (shift to new picture) 1. Request for classification: MEC, OME, non ME 2. Application for permit (Manufacturing/brokering) 3. Marketing Reports. 4. Request for advisory opinion. 5. Notification of binding tender / request for short time. 6. Application for export license (including EUC) 7. Delivery declaration OAS MANPADS 2007 8 March

Producer: Saab Bofors Dynamics (SBD) MANPADS - RBS 70 system Producer: Saab Bofors Dynamics (SBD) Missile (27 kg) IFF (optional) Sight (38 kg) with ”click on” night sight device (optional) Tri-pod stand (25 kg) 3 persons to carry 1 person to handle NOT fire and forget, ”Jam-safe” Simulator needed I would like to elaborate a little more about the relationship between ISP and the Government from a leagal point of wiew. ISP as all agencies is directed in the following ways ISP is responsible for all decisions in a singel matter related to the Law and ordinance. In principal a decision by ISP can not be overruled in a court. On a yearly basis ISP receivs tasks and budget trough Government Appropriations directions. The Director general is appointed directly by the Government. My position as deputy Director general is also approved by Government. ISP have also on a yearly basis to report back to Government the results of its tasks according to the Appropriation directions for last year. OAS MANPADS 2007 8 March

RBS 70 Deliveries OAS MANPADS 2007 8 March Norway Ireland Tunisia Czech Republic Lithuania Latvia Sweden Finland United Arab Emirates Thailand Singapore Pakistan Indonesia Venezuela USA Argentina Bahrain Australia I would like to elaborate a little more about the relationship between ISP and the Government from a leagal point of wiew. ISP as all agencies is directed in the following ways ISP is responsible for all decisions in a singel matter related to the Law and ordinance. In principal a decision by ISP can not be overruled in a court. On a yearly basis ISP receivs tasks and budget trough Government Appropriations directions. The Director general is appointed directly by the Government. My position as deputy Director general is also approved by Government. ISP have also on a yearly basis to report back to Government the results of its tasks according to the Appropriation directions for last year. OAS MANPADS 2007 8 March

International MANPADS commitments 2003 -Wassenaar Arrangement (WA). -G 8 commitments. 2004 -Asia-Pacific Economic Cooperation (APEC). -Organization for Security and Co-operation in Europé (OSCE) – (adopting WA). - G8, Secure and Facilitated International Travel Initiative (SAFTI) agreed at Sea Island - International Civil Aviation Organization (ICAO) – (adopting WA) 2005 -Organization of the American States (OAS) I would like to elaborate a little more about the relationship between ISP and the Government from a leagal point of wiew. ISP as all agencies is directed in the following ways ISP is responsible for all decisions in a singel matter related to the Law and ordinance. In principal a decision by ISP can not be overruled in a court. On a yearly basis ISP receivs tasks and budget trough Government Appropriations directions. The Director general is appointed directly by the Government. My position as deputy Director general is also approved by Government. ISP have also on a yearly basis to report back to Government the results of its tasks according to the Appropriation directions for last year. OAS MANPADS 2007 8 March

= CLASSIFIED equipment / information Implementation of Export Controls in Sweden Sweden as a producing country is strongly supporting the WA and OSCE, As well as other MANPADS commitments = CLASSIFIED equipment / information Security Agreement, After Government decision to release with ISP and Armed Forces approval. May conduct visit to a buyer country I would like to elaborate a little more about the relationship between ISP and the Government from a leagal point of wiew. ISP as all agencies is directed in the following ways ISP is responsible for all decisions in a singel matter related to the Law and ordinance. In principal a decision by ISP can not be overruled in a court. On a yearly basis ISP receivs tasks and budget trough Government Appropriations directions. The Director general is appointed directly by the Government. My position as deputy Director general is also approved by Government. ISP have also on a yearly basis to report back to Government the results of its tasks according to the Appropriation directions for last year. OAS MANPADS 2007 8 March

Implementation of Export Controls in Sweden Decisions on MANPADS only at senior level. - Case by Case handling in the Export Control Process. - Advisory Opinion by ECC in ”sensitive” cases. - Notification before Tender. Individual licenses, with End Use Assurance. Denials by EU Code of Conduct on Arms Exports. - SDB reporting all marketing (quarterly) as well as tenders and actual deliveries bi-yearly - ISP may perform pre- and post-verification visits. Transparency (reporting to UN, EU, WA, OSCE) Electronic licensing system – linked to Customs I would like to elaborate a little more about the relationship between ISP and the Government from a leagal point of wiew. ISP as all agencies is directed in the following ways ISP is responsible for all decisions in a singel matter related to the Law and ordinance. In principal a decision by ISP can not be overruled in a court. On a yearly basis ISP receivs tasks and budget trough Government Appropriations directions. The Director general is appointed directly by the Government. My position as deputy Director general is also approved by Government. ISP have also on a yearly basis to report back to Government the results of its tasks according to the Appropriation directions for last year. OAS MANPADS 2007 8 March

Export Control Council (ECC) Appointed by cabinet, meets 10 times/year MoD MFA Presents single issue from Defence- Policy needs ISP Presents Land-report in single issue Presents single issue Presents all statistics about exports since last meeting The export control council is appointed by government and consists of 10 members of parliament representing all political parties having seats in the parliament. Their numbers reflects their size in the overall Swedish politics. Presently three members represent the social democrats, two represents the conservative party and one represents each of the liberals, the christ democrats, the center party, the leftist party and the environmental party. Responsible for the decisions is the director general, the counsil will act as an advisory board. Meetings take place 10 times a year.A singel issue includes an inital briefing on the actual case, A land report by MFA on the specific country´s internal and expernal relations as well as an economic overwiew and issues related to democrasy or the human rights situation in the country.The briefing also contains comments from the Ministry of defence of the value of the proposed export related to Swedish defencepolicy (safeguarding important technology). The counsil is also given an overwiew of all exports since last meeting, providing transparancy to the parliament on ongong exports. (next picture) OAS MANPADS 2007 8 March

GUIDELINES Unconditional obstacles for exports - UN Security Council decisions - International agreements (EU, OSCE embargo) Buyer only State or authorized by the State Human rights situation, Armed Conflict, Internal Security situation, Positive prevention for “Other Military Equipment” Follow on deliveries The guidelines approved by parliament is the baseline to take decisions. The ECC play an important role in supporting the Director general of ISP with a rekommendation on how to interpretate the guidelines . According to the guidelines an export should be approved it it is Nessecary to provide the swedish armed forces with equipment or knowledge or is desirable from a security point of wiew, Not condictionary to the principals and goals of swedish foreign policy Of course an embargo decision by UN,EU or OSSE will be an unconditional obstacle for exports. There is also a positive prevention for exports of OME. The guidelines also conduct rules about ensured follow on deliveries of spareparts, ammunition to a customer. The Director general of ISP will take a decision taking an overall asessment of all the facts in the particular case. The Act also stipulate that he may decide to hand the decision over to government (cabinet) in principally important issues. (back to process) - Positive prevention for spare parts, ammunition to earlier delivered systems OAS MANPADS 2007 8 March

Banknote form, numbered, for Military End-User certificate Declaration by End User (DEU) Banknote form, numbered, for Military Equipment for Combat For MANPADS an additional ”MANPADS declaration” with link to appropriate International MANPADS commitment (WA, APEC, OAS) ”Optional clause to confirm receipt” Seller Buyer Authorized Agency Swedish Embassy ISP - Signature - UF 1996:5 - Control - Verify - Courier´s bag An End-use certificate is used (DEU for MEC and DoU for OME) for all exports. The Swedish embassy is checking that the signing official in the receiving country is authorized to sign. OAS MANPADS 2007 8 March

Implementation of Import Controls in Sweden Presently no import control on MANPADS in the Act on Military equipment, however under consideration by Government. Saab Bofors Dynamics under supervision by ISP. Compliance visits with Customs (Export Control Audit) and Police (storage security). ISP will sign foreign end-use assurances from Foreign Government. FMV the State buyer. Armed Forces will sign End-Use assurance. FMV have also a Security agreement with Saab Bofors Dynamics I would like to elaborate a little more about the relationship between ISP and the Government from a leagal point of wiew. ISP as all agencies is directed in the following ways ISP is responsible for all decisions in a singel matter related to the Law and ordinance. In principal a decision by ISP can not be overruled in a court. On a yearly basis ISP receivs tasks and budget trough Government Appropriations directions. The Director general is appointed directly by the Government. My position as deputy Director general is also approved by Government. ISP have also on a yearly basis to report back to Government the results of its tasks according to the Appropriation directions for last year. OAS MANPADS 2007 8 March

Implementation of Import Controls in Sweden Domestic regulations Storage of MANPADS RBS 70 by Armed Forces regulation. - Storage of Missiles and Other equipment in separate storage. - Missile storage dual alarm system, Audit / 24 h, Stand By Force - Follow up on individual numbers of all Items - Access to storage requires two people for keys and a Stand By Force Transportation of MANPADS RBS 70 by Armed Forces regulation. - Normally missiles and Other equipment in separate transports - May be in the same transport with enhanced security Equipment in use in principal the same as above I would like to elaborate a little more about the relationship between ISP and the Government from a leagal point of wiew. ISP as all agencies is directed in the following ways ISP is responsible for all decisions in a singel matter related to the Law and ordinance. In principal a decision by ISP can not be overruled in a court. On a yearly basis ISP receivs tasks and budget trough Government Appropriations directions. The Director general is appointed directly by the Government. My position as deputy Director general is also approved by Government. ISP have also on a yearly basis to report back to Government the results of its tasks according to the Appropriation directions for last year. OAS MANPADS 2007 8 March

www.isp.se OAS MANPADS 2007 8 March Ladies and gentlemen , thank you for your attention. Please find aditional information on our english webbsite. OAS MANPADS 2007 8 March