1. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Working Group for Chapter 30 –External Relations Bilateral screening: Chapter 30 PRESENTATION OF MONTENEGRO Brussels, 12 June 2013 1

2. Chapter 30: External Relations M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 30: External Relations 1. Common Commercial policy: Dual Use 2. Anti-Torture Regulation 3. Kimberley process STATE OF PLAY AND FUTURE STEPS Mr. Kadrija Kurpejovic Ministry of Economy E-mail: kadrija.kurpejovic @mek.gov.me kadrija.kurpejovic @mek.gov.me 2

3. Chapter 30: External Relations M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 30: External Relations 1.COMMON COMMERCIAL POLICY: DUAL USE 3

4. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 30: External Relations Chapter 30: External Relations 1. Common Commercial Policy: DUAL USE TABLE OF CONTENTS National legislation National export control legislation for Dual Use gods Legal framework What has already been achieved? The licensing process in the framework of LAW 32/2012 What is on progress? Scope of the Law on control of export of dual-use goods EU Goods Control List (Annex I of EU Dual-use Regulations) National Control list of Dual-use goods Future Activities Who is involved? Additional information The licesing process Conclusion 4

5. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 30: External Relations Chapter 30: External Relations 1. Common Commercial Policy: DUAL USE National legislation National export control legislation for Dual Use Goods Law on Export Control of Dual-Use Goods Law on Export Control of Dual-Use Goods ("Official Gazette of Montenegro", no. 32/12) 5

6. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 30: External Relations Chapter 30: External Relations 1. Common Commercial Policy: DUAL USE National legislation – continued Legal framework No. HARMONIZED No. 1. COUNCIL REGULATION (EC) of 05 May 2009; 428/2009 2. COUNCIL COMMON POSITION of 8 December 2008 Defining common rules governing control of exports of military technology and equipment 2008/944/CFSP 3. COUNCIL COMMON POSITION of 23 June 2003 On the control of arms brokering 2003/468/CFSP 4. COUNCIL JOINT ACTION of 22 June 2000 concerning the control of technical assistance related to certain military End-User 2000/401/CFSP 5. COMMON MILITARY LIST OF THE EUROPEAN UNION; (2012/C 85/01) (CFSP) HARMONIZATION IN PROGRESS 6. REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 19 April 2012 amending Council Regulation (EC) No 428/2009 setting up a Community regime for the control of exports, transfer, brokering and transit of dual-use items 388/2012/EU 7. COMMON MILITARY LIST OF THE EUROPEAN UNION (adopted by the Council on 11 March 2013) (equipment covered by Council Common Position 2008/944/CFSP defining common rules governing the control of exports of military technology and equipment) (2013/C 90/01) (CFSP) 8. DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 6 May 2009 simplifying terms and conditions of transfers of defence-related products within the Community 2009/43/EC (ICT) 9. DIRECTIVE of 22 November 2010 amending Directive 2009/43/EC of the European Parliament and of the Council as regards the list of defence-related products 2010/80/EU 6

7. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 30: External Relations Chapter 30: External Relations 1. Common Commercial Policy: DUAL USE National legislation – continued Legal framework 7 Innovations in law  Coprehensive clause– Catch-All;  Technical assistance,  Brokering services, and  Common position criteria of the EU Council 2008/944/CFSP when exporting arms The necessity to control Reasons: Preservation of national security, Compliance with UN Security Council resolutions (especially R 1540 SB UN), Compliance with ratification of international conventions and agreements in this area, and Harmonization of national export control policy of arms, military equipment and dual- use goods with EU regulations

8. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 30: External Relations Chapter 30: External Relations 1. Common Commercial Policy: DUAL USE National legislation – continued What has already been achieved? 8 First Phase transposed LAW 32/2012, 1 July Implemented Establishes the conditions, rules and procedures that governs the access to the activities of Commerce for exports of dual-use. CCP 2000/401/CFSP CCP 2003/468/CFSP CCP 2008/944/CFSP CCP 428/2009

9. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 30: External Relations Chapter 30: External Relations 1. Common Commercial Policy: DUAL USE National legislation – continued What is on progress? 9 Amendments Decree LAW This legislation will implement a new licensing system keeping the controls and standards at the highest level in compliance with the CCP 944. Second Phase CCP 428/2009 EU Directive on ICT transposition in progress to enter for adoption 2014 Directive 2009/43/EC simplifying the terms and conditions of transfers of defence- related products within the Community.

10. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 30: External Relations Chapter 30: External Relations 1. Common Commercial Policy: DUAL USE Scope of the Law on control of export of dual-use goods EU Goods Control List (Annex I of EU Dual-Use Regulation) National Control list of Dual Use goods 10 Missile M Technology T Control C Regime R Australia A Group G (chemical / biological weapons) Nuclear N Suppliers S Group G Wassenaar W Arrangement A National Control List of dual use goods O.G.41/2011 Montenegrin Control List European Du al-Use Goods List (Annex I) Chemical C Weapon W Convention C

11. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 30: External Relations Chapter 30: External Relations 1. Common Commercial Policy: DUAL USE The licensing process in the framework of LAW 32/2012 The process control 11 The licensing system is guided by two strong principles enshrined by CCP 2008/944/CFSP  High common standards  Transparency Assessment against the 8 criteria Export licence applications assessed on a case-by-case basis Internal Information Exchange & Annual Reports

12. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 30: External Relations Chapter 30: External Relations 1. Common Commercial Policy: DUAL USE The licensing process in the framework of LAW 32/2012 Who is involved? 12 Companies Customs Ministry of Foreign Affairs Ministry of Defence Ministry of Internal Affairs Depending on type and purpose of dual-use items, Ministry shall acquire opinion of other competent authorities as well. application license granted or denied Ministry of Economy 1 1 2 2 3 3 4 4 5 5 6 6 7 7 Informations about relisations

13. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 30: External Relations Chapter 30: External Relations 1. Common Commercial Policy: DUAL USE The licensing process in the framework of LAW 32/2012 13 The licesing proces Pre-licensing registration Before submitting an export, brokering or other licence application, every company or individual has not to be registered. Consideration of the application Formal application by a company or individual Processing Risk Assessment License denied License denied License granted License granted noyes Problem?

14. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 30: External Relations Chapter 30: External Relations 1. Common Commercial Policy: DUAL USE The licensing process in the framework of LAW 32/2012 14 The licesing proces - Continued Consideration of the application Ministry of Economy EUC International Import Certificate Contract/s Formal application Problem? Ministry of Foreign Affairs Ministry of Defence Ministry of Internal Affairs CCP 2008/944/CFSP Other sources no yes License Denied License Denied Problem? yes no MoE License Granted License Granted Only individual Licens

15. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 30: External Relations Chapter 30: External Relations 1. Common Commercial Policy: DUAL USE The licensing process in the framework of LAW 32/2012 Additional information related to the Law 32/2012 15  Brokering controls apply to Montenegrin citizens and companies registered in Montenegro operating with other countries;  The license shall be required for the export of non-listed dual –use items Article 9: Catch-all clauses;  Transit of dual-use items from the List, by land and water, shall be authorized by state authority in charge of internal affairs, along with the approval of the state authorities in charge of defense and foreign affairs. Transit of dual use items from the List, by air, shall be authorised by the authority in charge of civil aviation along with the approval of the state authorities in charge of defense and foreign affairs. Article 13;  Transparency measures   National and Regional reporting /SEESAC;  Violation of the law will entail a Penal provisions up to € 300 for individuals and € 10.000 for companies. ( Harm. with Art. 24. (EC) No 428/2009 ); and  Imprisonment, depending on the qualifications of crimes, provides Criminal Code of Montenegro. Extraterritorial control ? “penalties must be effective, proportionate and dissuasive”

16. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 30: External Relations Chapter 30: External Relations 1. Common Commercial Policy: DUAL USE The licensing process in the framework of LAW 32/2012 Conclusion 16 Acceptance of standards in the field of control on foreign trade flows of arms, military equipment, and dual-use goods; Uniting in the fight against international terrorism and proliferation of weapons of mass destruction; Involvement of Montenegro in international system of export control; Accession to international control regimes and agreements in this area.

17. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 30: External Relations Chapter 30: External Relations 1. Common Commercial Policy: DUAL USE FUTURE ACTIVITIES 17 Continue process development and full implementation of legislation and so far built system of export control in arms, military equipment and dual-use goods; Amendments to the Law on export controls of dual-use, early next year Strenghtening of international cooperation on export control plan; Harmonization of the National Control Lists with the lists of EU; Performance of all obligations arising from the membership of Montenegro in the UN, also as many international resolutions, recommendations and many other documents plan to prevent the proliferation of weapons of mass destruction and fight against terrorism; Seminars and training for the permanent representatives of the local economy and state institutions about control of foreign trade with controlled goods - Council Decision 2012/711/CFSP Of 19 November 2012 ; Improving education and technical bases of the customs authorities due to their better skills in preventing the smuggling of dual-use goods; Continued participation in the long- term project of the EU.

18. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 30: External Relations Chapter 30: External Relations 18 2. Anti-Torture Regulation

19. National control legal system Major reference CCP 2008/944/CFSP Wassenaar Arrangement Common Military List (2012/C 85/01) (CFSP) CCP 2003/468/CFSP (Brokering) UN Program of Action on SALW UN Protocol against illicit manufacturing of and trafficking in firearms, their parts and ammunition OSCE and other Council Regulation 428/2009 (EC) of 5 th May 2009 19 Other Regulations (EC) No 1236/2005 Other Regulations (EC) No 1236/2005 The framework Chapter 30: External Relations M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 30: External Relations 2. Anti-Torture Regulation

20. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 30: External Relations Chapter 30: External Relations 20 2. Anti-Torture Regulation Law on foreign trade of arms, military equipment and dual-use goods (“Official Gazette of Montenegro”, no.80/08) Law on export control of dual-use goods (“Official Gazette of Montenegro”, no.30/12) National legislation

21. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 30: External Relations Chapter 30: External Relations 21 2. Anti-Torture Regulation Law on foreign trade of arms, military equipment and dual-use goods, 80/2008 Military Items of control list Other Items Licensing requirement Transfer from one other country to another country National Law Art.6 National Law Art.6 Licensing requirement Any transfer outside Montenegro Decision on the Establishment of the National Control List of non-military ordances (“OG of Montenegro", no. 66/10); National legislation

22. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 30: External Relations Chapter 30: External Relations 22 2. Anti-Torture Regulation Law on foreign trade of arms, military equipment and dual-use goods, 80/2008 This Act regulates the conditions for conducting foreign trade in weapons, military equipment, dual-use items and non-military ordances. This Act provides conditions for establishing state control in conducting foreign trade in controlled goods, in order to establish and protect:  defense,  security and foreign policy interests of Montenegro,  and to ensure respect of the international obligations taken over by Montenegro. National legislation

23. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 30: External Relations Chapter 30: External Relations 23 2. Anti-Torture Regulation NATIONAL LEGISLATION Law on foreign trade of arms, military equipment and dual-use goods, 80/2008 Decision on the Establishment of the National Control List of non-military ordances (“OG of Montenegro", no. 66/10); No overlap with other lists; Export/import is for torture or for death penalty; listed goods have normal use but could be used for torture, Decision not fully covered by the restrictions on exports of equipment and goods listed in Annexes II and III of Regulation 1236/2005.

24. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 30: External Relations Chapter 30: External Relations FUTURE ACTIVITIES 24 In order to further harmonization of national legislation in the field of arms, military equipment and non-military lethal goods with: 1. Regulation 1236/2005; 2.Commercial policy (Article 207 TFEU); 3. Charter of Fundamental Rights of the EU (Articles 2(2) and 4); 4. CFSP objectives (Article 21(2) TEU)  Regulations controlling trade  Restrictive measures (Article 215 TFEU) 1. Regulation 1236/2005; 2.Commercial policy (Article 207 TFEU); 3. Charter of Fundamental Rights of the EU (Articles 2(2) and 4); 4. CFSP objectives (Article 21(2) TEU)  Regulations controlling trade  Restrictive measures (Article 215 TFEU) 2. Anti-Torture Regulation Ministry of Economy plans to adopt New Law on foreign trade in weapons, military equipment and non-military lethal devices, by the end of the year. Suggestions given by experts hired by BAFA

25. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 30: External Relations Chapter 30: External Relations 25 3. Kimberley process

26. 26 The framework Chapter 30: External Relations M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 30: External Relations 3. Kimberley process In Montenegro, applies the Law on Foreign Trade “Official Gazette, No.28/04 and amanded on Juny 2007, O.g. No.37/07” The Government of Montenegro has established that the liberalization of the legal framework governing foreign trade, in a manner consistent with WTO agreements Organaizacije, the European Union and the generally accepted international best practices is the most effective way of achieving economic growth and development. Pursuant to art. 6 of this Law, Government of Montenegro, annually brings National checklist for export and import of goods that is compliant with the latest amendments to the Combined Nomenclature of the European Union This Decision on control list for export and import of goods (“O.G.,No.25 of 4.jun 2013) does not contain goods (not cut diamonds) for which, in accordance with the law on foreign trade is necessary to obtain permission.

27. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 30: External Relations Chapter 30: External Relations FUTURE ACTIVITIES 27 In order to further harmonization of national legislation in the field of foreign trade with: As regards Regulation 2368/2002 implementing the Kimberley Process  Regulation is adopted under trade legal base – Art 133 TEC (now Art 207 TFEU); As regards Regulation 2368/2002 implementing the Kimberley Process  Regulation is adopted under trade legal base – Art 133 TEC (now Art 207 TFEU); Ministry of Economy prepares amendments to the Law on Foreign Trade, which will include the need for the Government to adopt a Decree on the control of imports and exports of rough diamonds, by the end of the year. At this moment Montenegro is not a participant Kimberley Process 3. Kimberley process

28. Thank you for your attention! QUESTIONS 28