The M n stry of Economy and Reg onal Development presents ... · The M n stry of Economy and Reg onal Development presents a system of control for the export and mport of weapons,

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The M�n�stry of Economy and Reg�onal Development presents a system of control for the export and �mport of weapons, m�l�tary equ�pment and dual-use goods �n 2005 and 2006. The Report conta�ns an overv�ew of transfers of controlled goods to and from Serb�a, as well as cooperat�on w�th the EU and other �nternat�onal �nst�tut�ons and organ�zat�ons related to fore�gn trade �n the area of weapons, m�l�tary equ�pment and dual-use goods.

Annual Report on the Realization of Foreign Trade Transfers of Controlled Goods for 2005 and 2006

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Contents

I. Introduction ............................................................................................................................................................................1

II. National legislation ................................................................................................................................................................4

1. The Law on Fore�gn Trade �n Weapons, M�l�tary Equ�pment and Dual-use Goods .......................................................... 4

2. Secondary regulat�ons ......................................................................................................................................................... 5

2.1. Nat�onal Control L�sts ............................................................................................................................................. 5

3. Other regulat�ons relevant for the area .............................................................................................................................. 7

4. Ratifiedinternationalconventionsandagreements .......................................................................................................... 7

III. The basis of the import-export control system ....................................................................................................................9

1. Reg�strat�on........................................................................................................................................................................... 9

2. �ssu�ng l�censes .................................................................................................................................................................... 9

2.1. L�cens�ng cr�ter�a ..................................................................................................................................................10

2.2. Competent �nst�tut�ons �n the l�cens�ng process ................................................................................................11

3. Overs�ght and control .........................................................................................................................................................12

IV. International agreements in the area of export control ...................................................................................................15

1. �nternat�onal Control Reg�mes ...........................................................................................................................................15

1.1. WASSENAARARRANGEMENT-WАonthecontrolofexportofconventionalweaponsanddual-use products and technolog�es ..................................................................................................................................15

1.2. M�SS�LE TECHNOLOGY CONTROL REG�ME - MTCR ............................................................................................16

1.3. AUSTRAL�A GROUP - AG ........................................................................................................................................16

1.4. NUCLEAR SUPPL�ERS GROUP - NSG ...................................................................................................................17

1.5. THE ZANGGER COMM�TTEE - ZG .........................................................................................................................17

2. ArmsTradeTreaty-АТТ ......................................................................................................................................................18

V. Inclusion of Serbia into International Export Control System ..........................................................................................19

1. �nternat�onal Cooperat�on ..................................................................................................................................................19

2. Cooperat�on w�th �ndustry ..................................................................................................................................................21

3. Proposed further act�v�t�es ................................................................................................................................................21

VI. Statistical overview ..............................................................................................................................................................23

Annex 1/05 and Annex 1/06: ...............................................................................................................................................24

L�st of ent�t�es entered �n the Reg�ster .....................................................................................................................................24

Table 1: Dec�s�ons on reg�strat�on by type of controlled goods ..............................................................................................24

Annex 2a/05: ............................................................................................................................................................................25

Data on issued export licenses for weapons and military equipment, broken down by dest�nat�ons for � quarter of 2005 ..............................................................................................................................................................................25

Annex 2/05 and Annex 2/06 ...................................................................................................................................................26

Data on issued export licenses for weapons and military equipment, broken down by dest�nat�ons, �n accordance w�th the Nat�onal Control L�st of Weapons and M�l�tary Equ�pment ..............................................................................26

Annex 3a/05: ............................................................................................................................................................................27

Data on issued import licenses for weapons and military equipment, broken down by dest�nat�ons for � quarter of 2005 ..............................................................................................................................................................................27

Annex 3/05 and Annex 3/06 ...................................................................................................................................................28

Data on issued import licenses for weapons and military equipment, broken down by dest�nat�ons, �n accordance w�th the Nat�onal Control L�st of Weapons and M�l�tary Equ�pment ..............................................................................28

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Annex 4/05 and Annex 4/06 ...................................................................................................................................................29

Data on �ssued export l�censes for dual-use goods, broken down by dest�nat�ons of exports, �n accordance w�th the Nat�onal Control L�st of Dual-use Goods ........................................................................................................................29

Annex 5/05 and Annex 5/06 ...................................................................................................................................................30

Data on �ssued �mport l�censes for dual-use goods, broken down by dest�nat�on of exports, �n accordance w�th the Nat�onal Control L�st of Dual-use Goods ........................................................................................................................30

Annex 6/05 and Annex 6/06 ...................................................................................................................................................31

Data on the real�zat�on of exports, on �ssued export l�censes for weapons and m�l�tary equ�pment, broken down by dest�nat�on of exports, �n accordance w�th the Nat�onal Control L�st of Weapons and M�l�tary Equ�pment ..............31

Annex 7/05 and Annex 7/06 ...................................................................................................................................................32

Data on the real�zat�on of �mports, on �ssued �mport l�censes for weapons and m�l�tary equ�pment, broken down by dest�nat�on of �mports, �n accordance w�th the Nat�onal Control L�st of Weapons and M�l�tary Equ�pment ............32

Annex 8/05 and Annex 8/06 ...................................................................................................................................................33

Data on the real�zat�on of exports, on �ssued �mport l�censes for dual-use goods, broken down by dest�nat�on of exports, �n accordance w�th the Nat�onal Control L�st of Dual-use Goods .................................................................................33

Annex 9/05 and Annex 9/06 ...................................................................................................................................................34

Data on the realization of imports, on issued import licenses for dual-use goods, broken down by dest�nat�on of �mports, �n accordance w�th the Nat�onal Control L�st of dual-use goods ................................................................34

Annex 10/05 and Annex 10/06 ...............................................................................................................................................35

Data on den�ed applications for licenses for exports of weapons and military equipment broken down by dest�nat�on of exports, �n accordance w�th the Nat�onal Control L�st of Weapons and M�l�tary Equ�pment .................................35

Annex 11/05 and Annex 11/06 ...............................................................................................................................................36

Data on den�ed applications for licenses for imports of weapons and military equipment broken down by dest�nat�on of �mports, �n accordance w�th the Nat�onal Control L�st of Weapons and M�l�tary Equ�pment ..................................36

Annex 12/05 and Annex 12/06 ...............................................................................................................................................37

Data on den�ed applications for licenses for exports of dual-use goods broken down by dest�nat�on of exports, �n accordance w�th the Nat�onal Control L�st of Dual-use Goods .....................................................................................37

Annex 13/05 and Annex 13/06 ...............................................................................................................................................38

Data on den�ed applications for licenses for imports of dual-use goods broken down by dest�nat�on of �mports, �n accordance w�th the Nat�onal Control L�st of Dual-use Goods .....................................................................................38

Graph 1: The number of l�censes �ssued for weapons and m�l�tary equ�pment �n 2005 and 2006 ...................................39

Graph 2: The value of l�censes �ssued for weapons and m�l�tary equ�pment �n 2005 and 2006 .......................................39

Graph 3: The number of l�censes �ssued for dual-purpose goods �n 2005 and 2006 .........................................................40

Graph 4: The value of l�censes �ssued for dual-purpose goods �n 2005 and 2006 .............................................................40

APPENDICES ..............................................................................................................................................................................41

Enclosure 1 ................................................................................................................................................................................43

Extract from the NAT�ONAL CONTROL L�ST OF ARMS AND M�L�TARY EQU�PMENT ..............................................................43

Enclosure 2 ................................................................................................................................................................................44

Structure of the EU Dual-Use L�st .............................................................................................................................................44

ANNEXES 1/05-13/05

Foreign Trade in Controlled Goods in 2005 .............................................................................................................................45

Annex 1/05 ................................................................................................................................................................................ 47

L�st of legal ent�t�es reg�stered for fore�gn trade �n arms, m�l�tary equ�pment and dual-use goods �n 2005 ......................47

Annex 2A/05 ..............................................................................................................................................................................50

�ssued AME export l�censes at MD ...........................................................................................................................................50

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Annex 2/05 ................................................................................................................................................................................53

�ssued AME export l�censes ......................................................................................................................................................53

Annex 3а/05 ..............................................................................................................................................................................57

IssuedarmsimportlicensesatМD ..........................................................................................................................................57

Annex 3/05 ................................................................................................................................................................................58

�ssued arms �mport l�censes .....................................................................................................................................................58

Annex 4/05 ................................................................................................................................................................................60

�ssued dual-use goods export l�censes ....................................................................................................................................60

Annex 5/05 ................................................................................................................................................................................61

�ssued dual-use goods �mport l�censes ....................................................................................................................................61

Annex 6/05 ................................................................................................................................................................................62

AME Exports ...............................................................................................................................................................................62

Annex 7/05 ................................................................................................................................................................................66

AME �mports ...............................................................................................................................................................................66

Annex 8/05 ................................................................................................................................................................................68

Dual-use goods exports .............................................................................................................................................................68

Annex 9/05 ................................................................................................................................................................................69

Dual-use goods �mports ............................................................................................................................................................69

Annex 10/05 ..............................................................................................................................................................................70

Den�ed arms export appl�cat�ons ..............................................................................................................................................70

Annex 11/05 ..............................................................................................................................................................................71

Den�ed arms �mport appl�cat�ons ............................................................................................................................................. 71

Annex 12/05 ..............................................................................................................................................................................72

Den�ed dual-use goods export appl�cat�ons .............................................................................................................................72

Annex 13/05 ..............................................................................................................................................................................73

Den�ed dual-use goods �mport appl�cat�ons ............................................................................................................................73

ANNEXES 1/06-13/06

Foreign Trade in Controlled Goods in 2006 .............................................................................................................................75

Annex 1/06 ................................................................................................................................................................................77

L�st of legal ent�t�es reg�stered for fore�gn trade �n arms, m�l�tary equ�pment and dual-use goods �n 2006 ......................77

Annex 2/06 ................................................................................................................................................................................78

�ssued AME export l�censes ......................................................................................................................................................78

Annex 3/06 ................................................................................................................................................................................83

�ssued arms �mport l�censes .....................................................................................................................................................83

Annex 4/06 ................................................................................................................................................................................85

�ssued dual-use goods export l�censes ....................................................................................................................................85

Annex 5/06 ................................................................................................................................................................................86

�ssued dual-use goods �mport l�censes ....................................................................................................................................86

Annex 6/06 ................................................................................................................................................................................87

AME Exports ...............................................................................................................................................................................87

Annex 7/06 ................................................................................................................................................................................92

AME �mports ...............................................................................................................................................................................92

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Annex 8/06 ................................................................................................................................................................................94

Dual-use goods exports .............................................................................................................................................................94

Annex 9/06 ................................................................................................................................................................................95

Dual-use goods �mports ............................................................................................................................................................95

Annex 10/06 ..............................................................................................................................................................................96

Den�ed arms export appl�cat�ons ..............................................................................................................................................96

Annex 11/06 ..............................................................................................................................................................................97

Den�ed arms �mport appl�cat�ons .............................................................................................................................................97

Annex 12/06 ..............................................................................................................................................................................98

Den�ed dual-use goods export appl�cat�ons .............................................................................................................................98

Annex 13/06 ..............................................................................................................................................................................99

Den�ed dual-use goods �mport appl�cat�ons ............................................................................................................................99

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I. Introduction

Art�cle 28, Paragraph 3 of the Law on Foreign Trade in Weapons, Military Equipment and Dual-Use Goods� (hereafter the Law) forms a legal bas�s for the Annual Report on the Real�zat�on of Fore�gn Trade Transfer of Controlled goods� for 2005 and 2006 (hereafter the ‘Report’). The Report was prepared w�th�n the M�n�stry of Economy and Reg�onal Development of the Republ�c of Serb�a, and subm�tted to the body �n charge of the �mplementat�on of the Law and accompany�ng regulat�ons relat�ng to export and �mport control of controlled goods.

SincetheinceptionoftheStateUnionofSerbiaandMontenegroonMarch31,2005,thisisthefirstnationalreport �n th�s area prov�d�ng an overv�ew of export and �mport control of weapons, m�l�tary equ�pment and dual-use goods �n l�ne w�th recommendat�ons, standards and codes of conduct of the European Un�on.

�n 2005, the Law prov�ded for the harmon�zat�on of the nat�onal leg�slat�on w�th �nternat�onal regulat�ons and standards �n the area. The jur�sd�ct�on over export control was transferred from a m�l�tary author�ty (the M�n�stry of Defense of Serb�a and Montenegro) to a c�v�l body (the M�n�stry of �nternat�onal Econom�c Relat�ons of Serb�a and Montenegro). Another novelty was the �ntroduct�on of fore�gn trade control of dual-use goods and the concept of �nternat�onally w�dely accepted “Catch All” clause, as well as the pr�nc�ple of transparency �n the area.

Export control system�, establ�shed by the Law and accompany�ng regulat�ons, represents a step towards the European Un�on. Th�s �s espec�ally �mportant cons�der�ng that �n 2007 the Republ�c of Serb�a �s prepar�ng to s�gn the Agreement on Stab�l�zat�on and Access�on. S�nce Serb�a (as was the former Yugoslav�a) �s a trad�t�onal manufacturer and exporter of weapons, the adopt�on of relevant nat�onal leg�slat�on �s a further step towards the establ�shment of state control a�m�ng to protect fore�gn pol�cy, secur�ty and defense-related �nterests of the country, �ts �nternat�onal cred�b�l�ty and �ntegr�ty as well as observance of �nternat�onal comm�tments undertaken by Serb�a. The EU Code of Conduct on Arms Exports�,wasadopted,and,forthefirsttimeinourcountry,exportand �mport control of dual use goods� was �ntroduced. Nat�onal control l�sts of goods for wh�ch a l�cense �s requiredhavebeendefined,infullcompliancewiththeEUlistsoftheyear2000.

The object�ve of the control of fore�gn trade transfer of dual-use goods �s to l�m�t prol�ferat�on of weapons of mass destruct�on. �n 2004, the UN Secur�ty Counc�l adopted the Resolut�on on Non-prol�ferat�on of Weapons of Mass Destruct�on (Resolut�on SC 1540) pronounc�ng the prol�ferat�on of nuclear, b�olog�cal and chem�cal weapons to be the pr�nc�pal threat to �nternat�onal peace and secur�ty. By th�s document, the Secur�ty Counc�l calls on all UN MemberStatestofulfilltheircommitmentsrelatedtoarmscontroland/ordisarmamentandpreventproliferationof all types of weapons of mass destruct�on. The Resolut�on emphas�zes the obl�gat�on of all s�gnatory states to adopt and enforce effect�ve laws and put them �n pract�ce through the establ�shment of nat�onal controls and measures for the�r �mplementat�on, such as export control and control mechan�sms at nat�onal borders. Our country set the �ntroduct�on of an effect�ve control system of weapons, m�l�tary equ�pment and double-use goodsasoneofitspriorities.Themainincentiveforthisisthenecessitytofightterrorism,which,unfortunately,became more than a threat. �n add�t�on, tak�ng �nto account the geograph�cal pos�t�on of our country, as well as the ex�st�ng lack of stab�l�ty �n the reg�on, the Republ�c of Serb�a �s fully comm�tted to the advancement of current leg�slat�on and the establ�shment of an effect�ve control system a�m�ng to prevent undes�rable export of such goods. We could say that th�s task has been progress�ng successfully, although the enforcement process �s compl�cated and demand�ng.

� TheLawwasadopted in2005 in theStateUnionofSerbiaandMontenegroandpromulgated in the “OfficialGazetteofSerbiaandMontenegro”,No.7/05and8/05-correction,andisstillinforce.FollowingtheformationoftheGovernmentoftheRepublicofSerbiaonMay15, 2007 and the adopt�on of the Law on M�n�str�es, the jur�sd�ct�on over fore�gn trade �n weapons, m�l�tary equ�pment and dual-use goods was g�ven to the M�n�stry of Econom�cs and Reg�onal Development. � Controlled goods compr�se weapons, m�l�tary equ�pment and related technolog�es as well as dual-use goods, �nclud�ng software and technolog�es that can have both c�v�l and m�l�tary purpose.� Export Control – the term �s w�dely accepted �n the �nternat�onal commun�ty.�SeetheDecisiononCriteriaforLicensingforExportofWeapons,MilitaryEquipmentanddual-useGoods,“OfficialGazetteofSerbiaandMontenegro”,No.11/05/.� Dual-use goods �nclude a w�de range of mater�als, equ�pment and technolog�es that can be used both for the development of Weapons of MassDestruction(WMD)andforcivilpurposes,andwhicharethereforeverydifficulttoputundereffectivecontrol.Theefficiencyofexportcontrol of a g�ven state �nvolves detect�on, obstruct�ng and stopp�ng �llegal transfers and re-d�rect�ng controlled goods under.

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The Report was prepared on the bas�s of data collected s�nce the beg�nn�ng of the act�v�ty: �n the M�n�stry of �nternat�onal Econom�c Relat�ons of Serb�a and Montenegro (2005), then �n the M�n�stry of �nternat�onal EconomicRelations of theRepublic of Serbia (2006), and, finally, in theMinistry of Economy andRegionalDevelopment of the Republ�c of Serb�a (2007). The fact that �n the last two years our state saw changes �n status gave us the �dea to cover the whole per�od �n a s�ngle Report. Thus, the Report covers the year 2005 (January 1, 2005 – December 31, 2005) and the year 2006 (January 1, 2006 – December 31, 2006)

The main part of the Report deals w�th �nformat�on on export �mport control pol�cy, nat�onal leg�slat�on, nat�onal control l�sts, l�cens�ng cr�ter�a, competent �nst�tut�ons �n the l�cens�ng process, �nternat�onal comm�tments, exper�ence ga�ned by our country concern�ng export control, act�ve part�c�pat�on �n sem�nars and further advancement of the control system, as well as the analys�s of stat�st�cal data g�ven �n Annexes.

The Annexes g�ve data for the years 2005 and 2006, �n the same form, allow�ng compar�son and analys�s. They conta�n tables show�ng fore�gn trade transfer of goods under control, �ssued and refused l�censes for �mport and export of weapons, m�l�tary equ�pment and dual -use goods, as well as the data on compan�es allowed to engage �n such transfer (accord�ng to the data kept by the competent m�n�stry, and �n l�ne w�th the obl�gat�on of bus�ness enterpr�ses to be entered �n the Reg�ster of Ent�t�es L�censed to Perform �nternat�onal Trade �n Controlled Goods�).

The Report does not conta�n �nformat�on on the product�on and trade �n weapons and m�l�tary equ�pment w�th�n the state, wh�ch �s under the jur�sd�ct�on of the M�n�stry of Defense of the RS.

The Report was prepared �n accordance w�th the recommendat�ons of the European Un�on� concern�ng the form and the content of nat�onal reports �n order for them to be compat�ble w�th the EU Report� and comparable w�th nationalreportsofneighbouringstatesandfurtherafield.

The ma�n a�m of the efforts by the �nternat�onal commun�ty �n th�s area �s to �ntroduce a global norm of transparency �n fore�gn trade �n weapons, and s�nce 2000, the dual-use goods.

�n accordance w�th �nternat�onal recommendat�ons, the M�n�stry of Economy and Reg�onal Development of the Republ�c of Serb�a, and other competent m�n�str�es of the Government are obl�ged to �mprove transparency �n the area of fore�gn trade �n controlled goods. To that end, th�s Report, hav�ng been presented to the Government of the Republ�c of Serb�a, adopted and presented to the Nat�onal Assembly of the Republ�c of Serb�a, �s to be publishedintheOfficialGazetteoftheRepublicofSerbiaandontheinternetaddressoftheMinistryofEconomyand Reg�onal Development. S�nce the approved Report �s made publ�c, together w�th all aspects of the nat�onal pol�cy on �mport-export control of weapons, m�l�tary equ�pment and dual-use goods as well as �nformat�on concern�ng fore�gn transfers of such goods, a certa�n level of transparency has been establ�shed, str�k�ng a comprom�se between the obl�gat�on to publ�sh and the protect�on of commerc�al �nterests of compan�es. All dataarepresentedinaggregateformsoasnottojeopardizetheirconfidentiality(licensingforimport-exportofmilitaryequipmentbearsthemark“confidential”)

The M�n�stry of Economy and Reg�onal Development collected data on fore�gn transfers of controlled goods and on real�zed l�censed arms exports by compan�es engag�ng �n such trade, at the presentat�on of l�cens�ng appl�cat�ons as well as on the bas�s of the report by a competent body upon the exp�ry of a l�cense. Art�cle 27 of the Law obl�ges the enterpr�se to subm�t �nformat�on on the completed �mport and export transfer of goods

� Art�cles 11 and 12 of the Law.� �n February 2006, under the ausp�ces of the South Eastern and Eastern Europe Clear�nghouse for the Control of Small Arms and L�ght Weapons (SEESAC), and the Embassy of the Un�ted States of Amer�ca �n Belgrade, Export Control and Border Secur�ty,a reg�onal sem�nar was held on: “Annual Report�ng of the Western Balkan States �n the Area of Arms Trade”, a�m�ng to reach an agreement about the common form for nat�onal reports and further support to the Western Balkan States concern�ng the preparat�on of reports. � The EU Annual Report �s based on contr�but�ons from all member states, subm�tted to the Counc�l and publ�shed �n the “C” ser�es of the OfficialJournalof theEuropeanUnion. Inaddition,allmemberstateswhichexportequipmentaccordingto theCommonListofMilitaryEqu�pment publ�sh a nat�onal report on the�r exports of m�l�tary equ�pment, prepared �n accordance w�th relevant nat�onal regulat�ons, conta�n�ng �nformat�on for the Annual Report of the EU on the �mplementat�on of the Code of Conduct, as prescr�bed by �n the User Manual and �n l�ne w�th operat�ve prov�s�on 8 of the EU Code of Conduct on Arms Export. The Member states set as one of the pr�or�t�es �n the near future cont�nuous harmon�zat�on of nat�onal reports, �nclud�ng stat�st�cal data, �n order to homogen�ze data that needs to be �ncluded �n the Annual Report. The 8th EU Annual Report for the year 2005 has been completed.

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under control, w�th�n 15 days upon the exp�ry of the l�cense, and to return the or�g�nal of the unused l�cense to the competent m�n�stry. �t �s poss�ble that data are not ent�rely prec�se tak�ng �nto account the d�screpanc�es �n reports by the enterpr�se and the Customs Adm�n�strat�on, due to the fact that enterpr�ses g�ve the �nformat�on on the real�zat�on of exports and �mports accord�ng to the numbers from nat�onal control l�sts�, wh�le the Customs Adm�n�strat�on uses tar�ff numbers accord�ng to the Law on Customs Tar�ff. There �s no d�rect l�nk between tar�ff numbers and the numbers �n nat�onal control l�sts�0.

�mporters and exporters subm�t data on the category from the control l�st (the number from the nat�onal control list),numberofitems,description,enduse,financialvalue,exportingorimportingstate,finaldestinationcountryor the country of or�g�n. Monetary values are g�ven �n $ USA, accord�ng to the average rate of exchange on December 31, 2005, that �s, December 31, 2006.

� Nat�onal control l�sts of weapons, m�l�tary equ�pment and dual-use goods, establ�shed by the Counc�l of M�n�sters of Serb�a and Montenegro, discussedlater(“OfficialGazetteofSerbiaandMontenegro”,No.11/2005).�0 The EU also faces the problem of mon�tor�ng, espec�ally of dual-use goods accord�ng to tar�ff numbers, that �s, the numbers �n nat�onal l�sts of dual-use goods do not correspond to tar�ff numbers �n the Customs Tar�ffs.

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II. Nationallegislation

Nat�onal leg�slat�on relat�ng to fore�gn trade �n controlled goods compr�ses:

1. The Law on Fore�gn Trade �n Weapons, M�l�tary Equ�pment and Dual-use Goods;

2. Secondary regulat�ons;

3. Other regulat�ons relevant to the area; and

4. Ratifiedinternationalconventionsandtreaties.

�. TheLawonForeignTradeinWeapons,MilitaryEquipmentandDual-useGoods

Fore�gn trade �n weapons, m�l�tary equ�pment and dual-use goods, that �s, the manner and cond�t�ons under wh�ch �t can be conducted, jur�sd�ct�on for �ssu�ng the requ�red l�censes for export and �mport, transport, trans�t, possess�on and prov�s�on of serv�ces �n fore�gn trade transfer, overs�ght and control, proh�b�t�ons, penalt�es as well as powers for the adopt�on of secondary regulat�ons are regulated by the Law, wh�ch was passed by the Nat�onal Assembly of Serb�a and Montenegro on February 17, 2007, came �nto effect on March 31 of the same year, and �s st�ll �n force.

The objective of the Law �s to assume state control for the protect�on of secur�ty, fore�gn pol�cy and econom�c interests,internationalcredibilityandintegrityaswellastofulfillinternationalcommitmentsundertakenbytheRepubl�c of Serb�a.

The Law forms the basis for comprehensive control of export and �mport of weapons, m�l�tary equ�pment, dual-use goods and related technolog�es and �ncludes sanct�ons for �ts v�olat�on, prov�des for obligatory registration of bus�ness ent�t�es for conduct�ng fore�gn trade �n controlled goods and the licensing procedure, as well as the terms under wh�ch a l�cense may be �ssued and used, specifies tasks and roles of competent government bodies relat�ng to requested adm�n�strat�ve procedure and explicitly forbids foreign trade, transport, transit and possession of nuclear, chemical and biological weapons and devices for their delivery, in accordance with the UN SC Resolution 1540.

Pr�or to the adopt�on of the Law, trade and product�on of weapons and m�l�tary equ�pment was regulated by a s�ngle law the �mplementat�on of wh�ch was �n the jur�sd�ct�on of the m�l�tary. The two areas are now separate, and the jur�sd�ct�on over fore�gn trade of weapons and m�l�tary equ�pment was transferred to c�v�l bod�es.

The pr�nc�pal reasons for the adopt�on of the Law were:

n the need to create a legal framework for controll�ng and el�m�nat�ng undes�rable export and trade �n these goods;

n prevent�on of act�v�ty wh�ch poses an ever r�s�ng threat to the �nternat�onal commun�ty at large;

n br�ng�ng relevant nat�onal leg�slat�on �n l�ne w�th that of the EU; and

n �ncorporat�on of comm�tments, rules and procedures stemm�ng from �nternat�onal agreements, convent�ons and reg�mes.

�t should be emphas�zed that the adopt�on of legal regulat�ons �n l�ne w�th �nternat�onal standards �s a precondition for the realization of exports of our defense industry, whose surv�val depends on the process of �ts transformat�on and the export of �ts products.

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�. Secondaryregulations

Secondary regulat�ons further specify certa�n �ssues from the contents of the Law. The follow�ng regulat�ons serve th�s purpose:

1. The Dec�s�on on the Establ�shment of the Nat�onal Control L�st of Weapons and M�l�tary Equ�pment�� (brought �n l�ne w�th the Common EU M�l�tary L�st�� and the EU Code of Conduct on Arms Export);

2. The Dec�s�on on the Establ�shment of the Nat�onal Control L�st of Dual-use Goods�� (brought �n l�ne w�th the EU L�st of Dual-use Goods and Technolog�es);

3. The Dec�s�on on L�cens�ng Cr�ter�a for Export of Weapons, M�l�tary Equ�pment And Dual-use Goods��; and

4. The Rulebook on the Manner of Keep�ng the Reg�ster of Ent�t�es L�censed to Perform �nternat�onal Trade �n Controlled Goods��.

�.�. NationalControlLists

The above secondary regulat�ons, adopted under Art�cle 3, Paragraph 2 of the Law spec�fy two nat�onal control l�sts, namely:

n The Nat�onal Control l�st of Arms and M�l�tary Equ�pment and

n The Nat�onal Control L�st of Dual-use Goods.

The Law allows the Government to draw up other l�sts �n meet�ng �ts comm�tments under �nternat�onal agreements.

The main purpose of national control lists and control of market�ng of controlled goods �s the advancement of reg�onal and �nternat�onal secur�ty, the establishment of transparency, exchange of information and raised accountability in the area of transfer of conventional arms and technologies, as well as technologies of dual-use, and preventing the proliferation of weapons of mass destruction, launch�ng systems and accompany�ng mater�als and technolog�es, that �s, prevent�ng, through all measures and act�ons ava�lable, the controlled goods from fall�ng �nto terror�sts’ hands, for the purposes of the advancement of global secur�ty. The Nat�onal Control l�st of Arms and M�l�tary Equ�pment (weapons, m�l�tary equ�pment and related technolog�es) �s �n l�ne w�th the EU Common L�st of M�l�tary Equ�pment covered by the EU Code of Conduct on Arms Export��.

Under the Declarat�on of the EU Counc�l, �ssued on the adopt�on of the above Common L�st, th�s l�st �s pol�t�cally b�nd�ng, as well as the EU Code of Conduct on Arms Export, w�th�n common fore�gn and secur�ty pol�cy of the EU. �n th�s regard, all member states undertook a pol�t�cal comm�tment to secure through nat�onal leg�slat�ons the control of export of goods on the Common L�st of M�l�tary Equ�pment - �t should form the bas�s for the establ�shment of nat�onal control l�sts of member states, rather than serve as the�r replacement. The EU l�st �s cont�nuously updated��.

��“OfficialGazetteofSerbiaandMontenegro”No.11/05.�� Common EU M�l�tary l�st �s a pol�t�cally b�nd�ng document w�th�n Common Fore�gn and Secur�ty Pol�cy.��OfficialGazetteofSerbiaandMontenegro”No.11/05.��OfficialGazetteofSerbiaandMontenegro”No.11/05,broughtinlinewithEUCodeofConductonArmsExport.�� n the course of the excers�s�ng h�s powers under Art�cles 12 and 18 of the Law, the m�n�ster of the competent m�n�stry adopts the Rulebook.SeeOfficialGazetteofSerbiaandMontenegro”No.12/05andOfficialGazetteoftheRepublicofSerbia”No.73/06.�� See Common List of Military Equipment covered by the EU Code of Conduct on Arms Export –Official Journal of the European Union C191, 08.07.2000.�� See updated Common List of Military Equipment in Official Journal of the European Union C314, 23 December.200.; Official Journal of the European Union C127, 23 May 2005 and the last one in Official Journal of the European Union C66, 17 March 2006 – ava�lable on EU s�te, at: www.consilium.europa.eu/export-controls.

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The goods �n the Nat�onal Control l�st of Arms and M�l�tary Equ�pment (NCL AME) �nclude both new and used armsandmilitaryequipment, that is,goodsdesignedormodified formilitaryuse.AShortsurveyof theList(�tems 1 to 23) �s g�ven �n Appendix 1 – Partial National Control List of Arms and Military Equipment w�th th�s Report.

The National Control List of Dual-use Goods (�nclud�ng software and technolog�es), wh�ch apart from c�v�l�an can also have m�l�tary purpose, has been �n l�ne w�th the L�st of Dual-use Goods and Technolog�es of EU��. EU member states harmon�zed the pol�cy of export control of dual-use goods. The ma�n �nstrument of control of such goodsinEUistheECRegulation1334/2000��, wh�ch �s b�nd�ng on all EU member states. The l�st of controlled goods �s annexed to th�s Regulat�on and �s regularly updated�0 �n accordance w�th the developments �n respect�ve �nternat�onal control reg�mes, s�nce �t or�g�nated from them.

The L�st of Dual-use Goods and Technolog�es of EU br�ngs together all l�sts of var�ous �nternat�onal control reg�mes includingtheWassenaarАrrangement-WA,MissileTechnologyControlRegime-MTCR,NuclearSuppliersGroup-NSG, TheAustraliaGroup-АGandChemicalWeaponsConvention-CWC��. The list is flexible, allowing for the�ntegrat�on of var�ous new �nternat�onal controls (See Annex 2 – Structure of the List of Dual-goods, w�th th�s Report).

Determ�n�ng the number from the nat�onal control l�st �s not a s�mple task and requ�res substant�al knowledge of nat�onal l�sts of controlled goods , espec�ally of dual-use goods l�sts (Categor�es 0 – 9) as well as of the character�st�cs of controlled goods themselves. �t �s necessary to �dent�fy products that fall within weapons of mass destruction (nuclear, chemical, biological and rocket), wh�ch covers a broad range of products (from the product�on cycle of nuclear fuel to the development of weapons, the development of a m�ss�le system, chem�cal and b�olog�cal weapons to electron�c, �ndustr�al and rocket equ�pment, nuclear and rad�oact�ve mater�al, w�th the focus on the components for weapons of mass destruct�on.

Insomeinstancestheselistsarelinked,sothat,dependingontheenduse/userandthecharacteristicsoftheproduct �n quest�on, �t can be found both �n the m�l�tary and �n the dual-use and related technolog�es goods l�st.

The Nat�onal Control L�st of Arms and M�l�tary Equ�pment and the Nat�onal Control L�st of Dual-use Goods are publ�shed on the s�te of the M�n�stry of Economy and Reg�onal Development��, where the Law and accompany�ng regulat�ons �n the area can be found as well.

TheLawhasbeenamendedwiththefirstintroductionoftheprovisioninternationallyknownasthe“Catch All” – “comprehensive control”. Under Art�cle 4 of the Law �t allows the control of goods not �ncluded �n the ex�st�ng nat�onal control l�sts, fall�ng w�th�n controlled goods when the �nd�v�dual �ntend�ng to perform fore�gn trade �s notifiedbytherelevantbody,orhasareasonablecausetobelievethatgoodsinquestionare,orcanbe,inwholeor �n part, used for the development, product�on, man�pulat�on, d�sposal, ma�ntenance, stockp�l�ng, uncover�ng, detection,identificationorspreadofchemical,biologicalornuclearweaponryorothernuclear-explosivedevices,or for the development, product�on, ma�ntenance or stockp�l�ng rockets capable of carry�ng such substances. Thisarticleneedstobemorepreciselydefined�� to ensure �ts cons�stent enforcement. The Government of the RepublicofSerbiacanestablishthelistofgoodsand/ordestinationsfortheperformanceofobligationsunder�nternat�onal agreements, and �n th�s manner address the matter.

�� List of Dual-use Goods and Technologies of EU – publ�shed �n Annex � and �V of the regulat�on b�nd�ng to all EU member states: EC Regulation No.1334/2000 - Official Journal of the European Union L159, 22.06.2000.��ECRegulationNo.1334/2000.�0 Last update of the List of Dual-use Goods and Technologies of EUonthebasisoftheECRegulativeno.394/2006of27February2006�n Official Journal of the European Union L74, 13 March 2006.�� On these reg�mes more later.�� www.merr.sr.gov.yu.�� The M�n�stry of Economy and Reg�onal Development prepares the Draft Amended Law, wh�ch, �nter al�a, env�sages the elaborat�on of th�s art�cle of the Law.

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�n Serb�a, the Nat�onal Control L�st of Arms and M�l�tary Equ�pment and the Nat�onal Control L�st of Dual-use Goods are at present be�ng updated and brought �n l�ne w�th new, current European Un�on�� l�sts, wh�ch are regularly brought up to date �n accordance w�th �nternat�onal agreements, convent�ons and regulat�ons of the European Un�on.

�. Otherregulationsrelevantforthearea

Apart from the Law, pos�t�ve leg�slat�on of Serb�a on �nternat�onal trade �n controlled goods �ncludes other regulat�ons, wh�ch, �n l�ne w�th the�r leg�slat�ve purpose, d�rectly govern other �ssues of �mportance and relevance for the conduct of �nternat�onal trade �n arms. Th�s set �ncludes the follow�ng:

1. The Law on Production and Trade of Arms and Military Equipment(“OfficialGazetteoftheRepublicofSerbia”,No.41/96);

2. The Law on International Trade Activities(“OfficialGazetteoftheRepublicofSerbia”,No.101/05);

3. The Customs Law(“OfficialGazetteoftheRepublicofSerbia”,No.73/03,61/05,85/05and62/06);

4. The Law on Arms and Ammunition(“OfficialGazetteoftheRepublicofSerbia”,No.9/92);

5. The Law on the Prohibition of Development, Production, Stockpiling and Use of Chemical Weapons and Their Destruction(“OfficialGazetteoftheRepublicofSerbiaandMontenegro”,No.44/05);

6. The Law on the Transport of Hazardous Substances (“OfficialGazetteoftheSFRY”,No.27/90and“OfficialGazetteoftheFRY”,No.28/96);and

7. The Law on Crossing the State Border and Movement in Border Region(“OfficialGazetteoftheSFRY”,No.34/79andthe“OfficialGazetteoftheFRY”,No.24/94and28/96).

Inadditiontothissetoflaws,alsoapplicableare:TheLawonExplosiveSubstances,InflammableLiquidsandGases(“OfficialGazetteoftheRepublicofSerbia”,No44/77,45/85,18/89,53/93,67/93,48/94,101/05);The Law on Production andMarketing of Poisonous Substances (“Official Gazette of the FRY”, No. 15/95,28/96andthe“OfficialGazetteoftheRepublicofSerbia”,No.37/02,101/05);TheLawonProtectionagainstIonizingRadiation(“OfficialGazetteoftheFRY”,No.46/96andthe“OfficialGazetteoftheRepublicofSerbia”,No.85/05,101/05); TheLawonProductionandMarketingofDesignerDrugs (“OfficialGazetteof theFRY”,No.46/96,37/02andthe“OfficialGazetteoftheRepublicofSerbia”,No.101/05),aswellasotherrelatedregulat�ons.

4. Ratifiedinternationalconventionsandagreements

As a part of the nat�onal leg�slat�on, the Republ�c of Serb�a enforces pr�nc�pal �nternat�onal agreements and convent�ons on arms, arms control and strengthen�ng secur�ty measures, namely:

1. Convention on Prohibitions or Restrictions on the Use of Certain Conventional Weapons Which May Be Deemed to Be Excessively Injurious or to Have Indiscriminate Effects – the so-called Convention on Certain Conventional Weapons (CCW) –(SFRYratifiedin1970,FRYapprovedin2002);

2. Treaty on Non-proliferation of Nuclear Weapons (NPT)(SFRYratifiedin1970,FRYapprovedin2002);

3. Convention on the Prohibition of the Development, Production and Stockpiling of Bacteriological (Biological) and Toxin Weapons and on Their Destruction (BWC) -(SFRYratifiedin1973,FRYapproved�n 2001);

�� See updated EU l�sts �n footnotes 17 and 20.

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4. Convention on the Prohibition of the Development, Production, Stockpiling and Use of Chemical Weapons and on Their Destruction (CWC)-(FRYratifiedin2000);

5. Missile Technology Control Regime (MTCR) (�n February 2004 Serb�a and Montenegro un�laterally agreed to comply w�th the MTCR document “Equ�pment, Software and Technology”, as of May 30, 2003, aswellastheGuidelinesforSignificantTransferofSensitiveprojectilesofJanuary7,1993);

6. The Comprehensive Nuclear-Test-Ban Treaty (Serbia and Montenegro ratified this agreement in2004);

7. Convention on the Prohibition of the Use, Stockpiling, Production and Transfer of Antipersonnel Mines and on Their Destruction - the Ottawa Treaty or the Mine Ban Treaty (Serb�a and Montenegro submitted the ratification instruments to the UN Secretary General in September 2003, while theobl�gat�ons under the Convent�on commenced on March 1, 2004); and

8. Measures and Instruments on Small Arms and Light Weapons (SALW)- 2000 OSCE Document on Small Arms and L�ght Weapons; 2003 OSCE Document on Stockp�les of Convent�onal Ammun�t�on; 2004 OSCEDocumentonEndUserCertificates;2004OSCEDocumentonBrokering;2003OSCEDocumenton Portable Launchers of Ant� A�rcraft M�ss�le Systems (MANPADS); 2001 Reg�onal �mplementat�on Plan of the Stab�l�ty Pact; Un�ted Nat�ons Programme of Act�on to Prevent, Combat and Erad�cate the �ll�c�t Trade �n Small Arms and L�ght Weapons �n All �ts Aspects (UN PoA SALW); UN F�rearms Protocol aga�nst theIllicitManufacturingofandTraffickinginFirearms,theirPartsandComponentsandAmmunition,a supplementary protocol to the United Nations Convention aga�nst Transnat�onal Organized Crime (UN FP) of 2006.

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III. Thebasisoftheimport-exportcontrolsystem

�nternat�onal trade �n weapons, m�l�tary equ�pment and dual-use goods comprises three stages:

1. Reg�strat�on of (natural and legal) ent�t�es for the performance of �nternat�onal trade;

2. �ssu�ng �nd�v�dual l�censes for every bus�ness deal; and

3. Mon�tor�ng and control of �nternat�onal trade deals

�. Registration

�nternat�onal trade �n controlled goods can be performed by a natural or a legal person who has been �ssued the l�cense for engag�ng �n th�s act�v�ty by the competent m�n�stry, �n accordance w�th Art�cle 11 and 12 of the Law. The r�ght for the performance of �nternat�onal trade �s acqu�red as of the day the person �n entered �n the Register, kept by the competent m�n�stry��, wh�ch �ssues the Decisiononsuchright,validforfiveyears.

The manner of keep�ng the Reg�ster of Ent�t�es L�censed to Perform �nternat�onal Trade �n Controlled Goods, the reg�strat�on procedure, documentat�on requ�rements as well as the contents of the Reg�ster �s deta�led �n the Rulebook on the Manner of Keep�ng the Reg�ster of Ent�t�es L�censed to Perform �nternat�onal Trade �n Controlled Goods��.

�. Issuinglicenses

The l�cense for engag�ng �n fore�gn trade �n controlled goods �s a wr�tten document of a competent m�n�stry, by wh�ch, on the bas�s of set cr�ter�a, a person �s perm�tted to perform a single deal of foreign trade business involving a specified amount and type of controlled goods,underconditionsspecifiedunderthecontractwithafore�gn partner, and �n accordance w�th prev�ously performed, legally determ�ned procedure and the presentat�on of all legally requ�red documentat�on.

The Rulebook on the form of the appl�cat�on for l�cense, the l�cense form and forms of other documents requ�red for the �nternat�onal trade �n controlled goods��specifiesaunified form for l�cens�ng appl�cat�on and other forms, as well as the l�st of documents to be subm�tted w�th the appl�cat�on.

Beforemakingadecisiononaspecificapplication,thecompetentministryobtainsanapproval from the M�n�stry of Fore�gn Affa�rs and the M�n�stry of Defense, as well as the opinion from the M�n�stry of �nternal Affa�rs��. �n the cours of dec�s�on-mak�ng process, the l�ne m�n�str�es of defense and fore�gn affa�rs (g�v�ng the relevant approval) have the r�ght to veto the �ssu�ng of the l�cence. �f both m�n�str�es w�thhold the�r approval, the competent m�n�stry cannot �ssue the l�cense; �f only one m�n�stry refuses appl�cat�on, the final decision on the �ssu�ng of the l�cense �s made by the Government��.

The Law prov�des for the �ssu�ng of l�censes for import, export, re-export and brokering. Catch-all control was �ntroduced for all goods that can be connected w�th weapons of mass destruct�on.

�� The M�n�stry of Economy and Reg�onal Development.�� n the course of the performance of �ts legal powers under Art�cles 12 and 18 of the Law, the m�n�ster of the competent m�n�stry adopts theRulebook.See“OfficialGazetteofSerbiaandMontenegro”,No.12/05andthe“OfficialGazetteoftheRS”,No.73/06).��TheministerofthecompetentministryadoptsthisRulebook.See“OfficialGazetteofSerbiaandMontenegro”,No.12/05andthe“OfficialGazetteoftheRS”,No.73/06).�� Dur�ng the ex�stence of the State Un�on of Serb�a and Montenegro (March 31, 2005 to June 5, 2006), op�n�ons were obta�ned by the M�n�stry of �nternat�onal Affa�rs of Serb�a, that �s, Montenegro, depend�ng on the pr�nc�pal place of bus�ness of the enterpr�se, the appl�cant for the l�cense.��DuringtheexistenceoftheStateUnionofSerbiaandMontenegro(March31,2005toJune5,2006),thefinaldecisionontheissueofal�cense lay w�th the Counsel of M�n�sters.

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The competent m�n�stry shall refuse the l�cense �f the exporter or the �mporter fa�ls to comply w�th prov�s�ons of Art�cle 26 of the Law.

The �ssued l�cense can be revoked �f the competent m�n�stry becomes aware that the l�cense was �ssued on the bas�s of false �nformat�on; �n case of substant�al changes relat�ng to the �ssuance of l�censes; when the person �n quest�on, or the �nternat�onal trade deal comprom�se secur�ty, fore�gn pol�cy or econom�c �nterests of the state; when the person does not comply w�th or breaches the terms of the l�cense. The Government of Serb�a does not bear any respons�b�l�ty and undertakes no comm�tments for poss�ble damages caused by the w�thdrawal of the l�cense (Art�cle 26 of the Law).

The competent m�n�stry also �ssues the End User Certificatefortheimportsandverifiesthe“EndUserCertificate”wh�ch �s one of the documentary requ�rements for the export.

L�censes for Transport and Transit of weapons and m�l�tary equ�pment by land and by water are �ssued by the M�n�stry of �nternal Affa�rs, wh�le l�censes for transport and trans�t by a�r are approved by the D�rectorate of C�v�l Av�at�on, on the bas�s of prev�ously �ssued l�cense by the competent m�n�stry for the performance of the fore�gn trade bus�ness deal, and the approval by the Serb�an m�n�str�es �n charge of fore�gn affa�rs and defense, for the transport and the trans�t of weapons and m�l�tary equ�pment.

�.�. Licensingcriteria

The decision on the criteria for licensing export of weapons, military equipment and dual-use goods�0 �s �n l�ne w�th EU Code of Conduct on Arms Exports.

The Dec�s�on sets the criteria accord�ng to wh�ch the competent m�n�stry�� ssues l�censes for export of weapons and m�l�tary equ�pment l�sted �n the Dec�s�on on the Establ�shment of the Nat�onal Control L�st of Arms and M�l�tary Equ�pment, and the l�cense for export of dual-use goods l�sted �n the Dec�s�on on the Establ�shment of the Nat�onal Control L�st of Dual-use goods.

The criteria for the �ssuance of the l�cense for export�ng weapons, m�l�tary equ�pment and dual-use goods are the follow�ng:

1. Compl�ance w�th �nternat�onal comm�tments, espec�ally sanct�ons �mposed by the UN SC, �nternat�onal treat�es on non-prol�ferat�on of weapons and other �nternat�onal obl�gat�ons;

2. Respectforhumanrightsinthecountryoffinaldestination;

3. Internalsituationinthecountryoffinaldestination,intermsofexistingtensionsorarmedconflicts;

4. Keep�ng reg�onal peace, secur�ty and stab�l�ty;

5. Nat�onal secur�ty as well as secur�ty of fr�endly states;

6. Behav�our of the buyer state �n relat�on to the �nternat�onal commun�ty, espec�ally �ts pos�t�on on terror�sm, the nature of �ts all�ances and �ts compl�ance w�th the �nternat�onal law;

7. Poss�ble r�sk that the subject of exports w�ll fall �nto the hands of somebody else �n the buyer state or be re-exported under undes�rable terms; and

8. Compat�b�l�ty of export of weapons w�th techn�cal and econom�c capac�t�es of the cons�gnee, tak�ng �nto account that �t �s des�rable that states should exerc�se the�r leg�t�mate secur�ty and defens�ve needs w�th the least poss�ble mob�l�sat�on of human and econom�c resources for purchase of arms.

�0ThedecisionwasmadeunderArticle3,paragraph2oftheLawandpublishedinthe„OfficialGazetteoftheSerbiaandMontenegro,No.11/05.�� The M�n�stry of Econom�c Relat�ons of Serb�a and Montenegro, �n the per�od from when �t began work�ng on the Law t�ll June 5, 2006, the M�n�stry of Econom�c Relat�ons of the Republ�c of Serb�a, �n the per�od from June 5, 2006 t�ll May 14, 2007 and the M�n�stry of Econom�cs and Reg�onal Development of the RS �n the per�od from May 15, 2007.

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Accord�ng to the UN Code of Conduct on Arms Exports��, and User Gu�de (or�g�nally des�gned to �mprove the efficiency of consultations of the Member States in relation to the denial of export applications, and nowfurther developed �n order to establ�sh ‘the best pract�ce’ �n the cons�derat�on and a common pos�t�on on the �nterpretat�on of the Code when mak�ng dec�s�ons on export appl�cat�ons), �f the appl�cat�on conta�ns elements andinformationthatviolatethefirstfourcriteria,theexportapplicationisrefusedandtheEUmemberstatesarenotifiedofthefact,whileinthecaseofviolationofthecriteria5-8thecompetentnationalinstitutionsmaketheassessment. The Code �s pol�t�cally b�nd�ng for the EU Member States. The�r �ncorporat�on �nto nat�onal leg�slat�on and cons�stent appl�ance �n the l�cens�ng procedure, demonstrate that Serb�a, although not a member of the EU, compl�es w�th th�s regulat�on, and opens at the same t�me the door for membersh�p �n �nternat�onal control reg�mes, w�th the opportun�ty for us�ng all the advantages they prov�de.

When considering the export license applications, �n add�t�on to the above cr�ter�a, the following are taken into account:

a) Potentialeffectsoneconomic,financialandcommercialinterestsofthestate,includingthelong-term�nterest of establ�sh�ng stable and democrat�c relat�ons w�th bus�ness partners;

b) Potent�al effects on state relat�ons w�th the �mport�ng country;

c) Potent�al effects on transformat�on and rev�val of defense �ndustry; and

d) Potent�al effects on overall econom�c development of the state.

Compl�ance w�th the cr�ter�a �s assessed by the m�n�str�es �nvolved w�th the adm�n�strat�ve procedure, each inaccordancewiththeirfieldofresponsibility,basedonwhichtheyapproveorgiveopinionwhetheralicenseshould be �ssued.

�.�. Competentinstitutionsinthelicensingprocess

Under Art�cle 9 of the Law, foreign trade in controlled goods is conducted in accordance with the license issued by a competent ministry. As of entry �nto force of th�s Law, that �s, �n the per�od from March 31, 2005 to the cessat�on of the State Un�on of Serb�a and Montenegro on June 5, 2006, the M�n�stry for �nternat�onal Econom�c Relat�ons of the Serb�a and Montenegro was appo�ntde as a competent body for �ssu�ng l�censes for the conduct of �nternat�onal trade �n controlled goods l�sted �n Art�cle 3 and 4 of the Law, except when prov�ded otherw�se by the Law.

On the d�ssolut�on of the State Un�on of Serb�a and Montenegro, the Republ�c of Serb�a undertook powers under the Law, and thus, l�cens�ng arms, m�l�tary equ�pment and dual-use goods passed to the M�n�stry for �nternat�onal Econom�c Relat�ons��. After Parl�amentary elect�ons and the reorgan�zat�on of the Government of the Republ�c of Serb�a on May 15, 2007, by the adopt�on of the Law on M�n�str�es��, the jur�sd�ct�on was assumed by the M�n�stry of Economy and Reg�onal Development.

Start�ng from the above legal sources, the follow�ng institutions part�c�pate in the licensing procedure: the Ministry of Defense and the Ministry of Internal Affairs, which, within their respective jurisdictions, relat�ng to the procedure of l�cens�ng for fore�gn trade �n controlled goods, consider the application, verify information contained in it and give approval or an opinion whether a license should be issued.

�� These Rules (or the Code) were adopted �n June 1998, and compr�se a set of 8 cr�ter�a. All EU member states agreed to comply w�th the Code of Conduct on Arms Exports when cons�der�ng appl�cat�ons for export of goods �n the adopted EU Common L�st of M�l�tary Equ�pment. The Code also a�ms to �mprove the exchange of �nformat�on between Member States and contr�bute to better understand�ng of the�r pol�c�es on fore�gn export control. �n June 2000, these rules were extended to dual-use goods (Regulat�on EC 1334), when �t �s known, or suspected that the end user or the end use of the goods �n quest�on �s for m�l�tary purposes.��UnderArticle2oftheDecisiononFinancingPowerstransferredfromformerSerbiaandMontenegrototheRepublicofSerbia(“OfficialGazetteoftheRepublicofSerbia”,No.49/06).��“OfficialGazetteoftheRepublicofSerbia”,No.43/07.

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Pr�or to dec�s�on-mak�ng on the l�cens�ng appl�cat�on for the conduct of fore�gn trade �n controlled goods, �n terms of the prov�s�ons of the Law, the competent m�n�stry cons�ders the cred�b�l�ty of the appl�cant as well as econom�c and technolog�cal aspects of the l�cens�ng appl�cat�on and obta�ns the approval by the M�n�stry of Defence of Republ�c of Serb�a, as well as the op�n�on from the M�n�stry of �nternal Affa�rs. The role of each m�n�stry �s specifiedunderArticles21,22and23oftheLaw.

When cons�der�ng the approval of fore�gn trade transfer of controlled goods, the Ministry of Foreign Affairs of the Republic of Serbia takes into account:

n Sanct�ons �mposed by the UN Secur�ty Counc�l and the recommendat�ons of the Organ�zat�on for European Secur�ty and Cooperat�on;

n �nternat�onal comm�tments undertaken and fore�gn pol�cy �nterests of Serb�a;

n EU Code of Conduct on Arms and M�l�tary Equ�pment Export; and

n Thelevelofobservance,thatis,thestatusofhumanrightsandfreedomsinthefinaldestinationstate.

�n g�v�ng �ts approval to fore�gn trade transfer of controlled goods, the Ministry of Defense of the Republic of Serbia takes into account:

n Effects on the secur�ty of Serb�a;

n Whether the weapons and m�l�tary equ�pment des�gnated for export are �n the export l�st of arms and m�l�tary equ�pment;

n Whether there �s a dec�s�on by the M�n�stry of Defense of Serb�a concern�ng arms and m�l�tary equ�pment from stockp�les of the Serb�an Army; and

n Whether Serb�a, on the bas�s of the transfer of technology by the M�n�stry of Defense and the Army part�c�pates �n the ownersh�p over technology �n quest�on.

When dec�d�ng on g�v�ng �ts approval to fore�gn trade transfer of controlled goods, the Ministry of Internal Affairs of the Republic of Serbia takes into account:

n Effects on nat�onal �nternal safety;

n Effectsontrafficsafety;and

n Effects on safety of l�fe, person and property of the publ�c.

�. Oversightandcontrol

The competent m�n�stry performs overs�ght and control of fore�gn trade �n controlled goods �n accordance w�th the Law, �n cooperat�on w�th the M�n�stry of Defense, the M�n�stry of Fore�gn Affa�rs, the M�n�stry of �nternal Affa�rs, the Customs Adm�n�strat�on, bod�es of secur�ty-�ntell�gence serv�ces and other. Customs author�t�es , secur�ty-�ntell�gence bod�es and �nspect�on bod�es conduct cont�nuous control w�th�n the�r legal jur�sd�ct�on and report on �t to the competent m�n�stry.

Customs Administration performs customs control and submits quarterly reports to the competent m�n�stry on the real�zat�on of l�censes �ssued.

Under Art�cle 38 of the Law, dur�ng customs �nspect�on of controlled goods, wh�ch are the subject of fore�gn trade, the customs author�t�es can, w�th�n the�r area of respons�b�l�ty, stop, se�ze or cancel the transport of goods under control, and not�fy the competent m�n�stry.

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The obligations of customs authorities �n the course of the �mplementat�on of the prov�s�ons of the Law, are governed by the Rulebook on the Obl�gat�ons of Customs Author�t�es �n Fore�gn Trade �n Arms, M�l�tary Equ�pment and Dual-use goods��.

Accord�ng to th�s rulebook, when grant�ng perm�ss�on for the appl�cat�on of a relevant customs procedure of controlled goods, the customs author�t�es are obl�ged to ver�fy whether an or�g�nal customs document (OCD) �s accompan�ed w�th a l�cense by the competent m�n�stry, and whether �nformat�on conta�ned �n the l�cense for the conduct of fore�gn trade �n controlled goods matches that �n the OCD, and the actual cond�t�on of the goods.

Moreover, when grant�ng a perm�ss�on for plac�ng the goods �nto customs procedure for the trans�t of controlled goods by land and by water, the customs author�t�es are obl�ged to ver�fy whether the OCD �s accompan�ed w�th an approval by the M�n�stry of �nternal Affa�rs. When goods under control are transported by a�r, the approval of thebodyinchargeofairtrafficisrequested.

�n accordance w�th Art�cle 4 of the above Rulebook, the customs author�t�es shall temporar�ly se�ze controlled goods �f they establ�sh that:

n OCD �s not accompan�ed by an appropr�ate l�cense or approval;

n That �nformat�on �n the OCD does not match that �n the l�cense or the approval; and

n That actual cond�t�on of the goods does not match the data quoted �n the l�cense or the approval.

The customs author�ty �s obl�ged to promptly �nform the competent m�n�stry about the stoppage of the customs procedure and temporary se�zure of goods, quot�ng the reasons for th�s. However, the �nspect�on �tself of the fore�gn trade transfer, trans�t and stockp�l�ng follows the prov�s�ons of the Rulebook on the Manner of Performance of Act�ons and Measures �n the Control Procedure of Accepted Declarat�on��.

The Ministry of Internal Affairs performs the control and oversight of transport and transit of weapons and m�l�tary equ�pment, arms and ammun�t�on and explos�ve substances, across the state border and �n the terr�tory oftheRepublicofSerbia,inroadandrailwaytraffic,aninaccordancewiththefollowingregulations:

n The Law on Cross�ng the State Boarder and Movement �n the Border Reg�on��;

n The Law on Transport of Dangerous Substances��;

n The Law on Arms and Ammun�t�on��;

n TheLawonExplosiveSubstances,InflammableLiquidsandGases�0;

n The Dec�s�on on the Transport of Weapons and M�l�tary Equ�pment��; and

n TheDecisionontheTransportofHazardousSubstancesinRoadandRailwayTraffic��. The transport of weapons and m�l�tary equ�pment �s performed w�th armed escort, under Art�cle 31 of the Law and Art�cle 9 of the Dec�s�on on the Transport of Weapons and M�l�tary Equ�pment.

��“OfficialGazetteoftheRepublicofSerbia”,No.67/05.��“OfficialGazetteoftheRS”No.53/04.��“OfficialGazetteoftheSFRY”No.34/79,56/80,53/85,“OfficialGazetteoftheFRY”No.24/94,28/96,68/02.��“OfficialGazetteoftheSFRY”No.27/90,45/90;“OfficialGazetteoftheFRY”No.24/94,28/96,21/99,44/99,68/02.��“OfficialGazetteoftheRS”No.9/92,53/93,67/93,48/94,44/98,39/03.�0“OfficialGazetteoftheRS”No.44/77,45/85,18/89,“OfficialGazetteoftheRS”No.53/93,67/93,48/94.��“OfficialGazetteoftheFRY”No.54/97.��“OfficialGazetteoftheRS”No.53/02.

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�t should be noted that entities (natural and legal) who engage in foreign trade, transport or transit of controlled goods, are legally bound to allow the bodies in charge of oversight and control to conduct inspection (for the purposes of oversight and control), during all stages of transfer, transport, transit and stockpiling. �n the case of d�sappearance or damage of controlled goods wh�le �n the care of a person who part�c�pates �n fore�gn trade �n controlled goods, or who acqu�res and stockp�les such goods, the damage or the d�sappearance must be reported to the competent m�n�stry w�th�n 24 hours of the damage or d�sappearance. The person engag�ng �n fore�gn trade of controlled goods (�mporter, exporter, broker, owner or other user) �s obl�ged to keep documentat�on on the transfer of such goods for the per�od of at least ten years.

�n accordance w�th the Law, the competent m�n�stry has created �ts own database, conta�n�ng �nformat�on on l�censes �ssued, den�ed and revoked, the data on ent�t�es reg�stered for the conduct of fore�gn trade transfer of controlled goods, as well as on v�s�ts of �nspect�on conducted �n reg�stered bus�ness ent�t�es.

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IV. Internationalagreementsintheareaofexportcontrol

�. InternationalControlRegimes

There are five International Control Regimes in the international community:Wassenaar Аrrangement -WА,M�ss�le Technology Control Reg�me – MTCR, Austral�a Group - AG, Nuclear Suppl�ers Group – NSG and The Zangger Comm�ttee - ZC. The�r a�m �s to �dent�fy goods and technolog�es that should be subject to �nternat�onal control, exchange �nformat�on on the r�sks of prol�ferat�on and promote non-prol�ferat�on of weapons of mass destruct�on �n contacts w�th the states that do not belong to the reg�mes.

The Republ�c of Serb�a �s not a member of any �nternat�onal control reg�mes�� concern�ng trade �n weapons, m�l�tary equ�pment or dual-use goods.

Cons�der�ng that the Law �s �n l�ne w�th �nternat�onal standards �n the area, and that nat�onal control l�sts of weapons, m�l�tary equ�pment and dual-use goods are pract�cally �dent�cal to those of the EU, wh�ch comply w�th �nternat�onally accepted goods control reg�mes��, �nclud�ng the Wassenaar Agreement - WA, M�ss�le Technology Control Reg�me – MTCR, Austral�a Group - AG, Nuclear Suppl�ers Group – NSG and the Chem�cal Weapons Convent�on – CWC, and that Serb�a �s a manufacturer of weapons, m�l�tary equ�pment and dual-use goods, act�v�t�es of our country �n th�s respect should be �ncreased and the membersh�p �n these reg�mes should be sought.

1.1. WASSENAARARRANGEMENT-WА��onthecontrolofexportofconventionalweaponsanddual-useproductsandtechnologies

The agreement was concluded �n December 1995 by 33 states, as a contr�but�on to the advancement of reg�onal and �nternat�onal secur�ty, for the �ntroduct�on of transparency, exchange of �nformat�on and �ncreased accountab�l�ty in the area of the transfer of conventional weapons and dual-use goods and technologies.

Th�s arrangement �s a supplement to other reg�mes ensur�ng that no control evas�on act�v�t�es, that �s, prol�ferat�on act�v�t�es, are allowed to sl�p through the loopholes �n the ex�st�ng transfer control procedures concern�ng convent�onal and weapons of mass destruct�on and the�r del�very systems. S�multaneously, the s�gnator�es to the Wassenaar Arrangement act prevent�vely reduc�ng the opportun�ty for terror�st groups and organ�zat�ons to acqu�re such weapons. �n add�t�on, the arrangement prov�des �ncent�ves for other non s�gnatory states to adopt nat�onal pol�c�es cons�stent w�th the object�ves of �mproved transparency and accountab�l�ty relat�ng to the transfer of convent�onal weapons and dual-use goods and technolog�es.

The conditions for the access�on of a state to the Wassenaar Arrangement are the follow�ng: that the appl�cant has the status of a manufacturer or an exporter of convent�onal weapons or �ndustr�al equ�pment, that �t cons�stently conducts the policy of non-proliferation and compl�es w�th relevant nat�onal pr�nc�ples, �nclud�ng the compl�ance w�th the ex�st�ng non-prol�ferat�on reg�mes and treat�es; �n add�t�on, the appl�cant �s requ�red to have an effective system of export control. Dec�s�ons on the access�on are reached by consensus of member part�es at annual plenary sess�ons (usually two – spr�ng and autumn).

States s�gnator�es to the Wassenaar Arrangement are: Argent�na, Austral�a, Belg�um, Bulgar�a, Great Br�ta�n, Greece, Denmark, Eston�a, �reland, �taly, Japan, South Afr�ca, Canada, Latv�a, L�thuan�a, Luxembourg, Malta, Hungary, Germany, New Zealand, Norway, Poland, Portugal, the Republ�c of Korea, the Czech Republ�c, Ruman�a,

�� Nor d�d the FRY, or Serb�a and Montenegro. At the 25th sess�on of August 27, 2003, the Counc�l of M�n�sters of Serb�a and Montenegro entrusted to the M�n�stry of �nternat�onal Affa�rs, �n cooperat�on w�th the M�n�stry of �nternat�onal Econom�c Relat�ons and the M�n�stry of Defense, to propose to the Counc�l of M�n�sters to �n�t�ate the procedure for the access�on of the State Un�on of Serb�a and Montenegro to �nternat�onal convent�ons, treat�es and reg�mes �n the area of export control of weapons, m�l�tary equ�pment and dual-use goods. The adopt�on of the Law allowed for the �n�t�at�on of the procedure. The procedure was set �n mot�on �n Serb�a and Montenegro, but, unfortunately, was not completed.�� See the structure of the L�st of Dual-use Goods and Technolog�es �n the Append�x of the Report.�� www.wassenaar.org.

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Russ�an Federat�on, the Un�ted States of Amer�ca, Slovak�a, Sloven�a, Turkey, Ukra�ne, F�nland, The Netherlands, Croat�a, Spa�n, Sweden and Sw�tzerland (40 states �n all �n 2006).

�.�. MISSILETECHNOLOGYCONTROLREGIME-MTCR��

Founded �n 1987 as an �nformal group of developed states of the Group 7, a�m�ng to l�m�t the prol�ferat�on of project�les, unmanned a�rcrafts and other technolog�es for systems carry�ng up to 500 kg to d�stances of at least 300 km, as well as systems capable of carry�ng weapons of mass destruct�on, �n order to secure transparency and �ntense exchange of �nformat�on.

MTCR �s a voluntary international association (not a treaty), controlling transfer of technologies and equipment for ballistic and cruising projectiles, space launching aircrafts and other unmanned delivery systems open to all comers, of global character, non d�scr�m�natory and w�th members of equal status.

The dec�s�on on the acceptance of a state �nto MTCR �s reached by consensus tak�ng �nto account whether the candidate can contribute to international efforts towards non-proliferation, whether it demonstrates sustainable and consistent commitment to the policy of non-proliferation as well as whether it possesses an effective export control system.

MTCR does not have a secretar�at and negot�at�ons w�th prospect�ve partners are conducted through the pres�dent of the MTCR, team v�s�ts to cap�tal c�t�es by representat�ves of four MTCR partners, as well as through b�lateral exchanges. MTCR delegat�ons v�s�ted Belgrade �n 2003 headed by the cha�rman from Poland, and �n 2004 headed by the then cha�rman from Argent�na. �n 2005 the cha�rman was from Spa�n and �n 2006 from Denmark.

Member states of the Missile Technology Control Regime are: Argent�na, Austral�a, Belg�um, Bulgar�a, Braz�l, Great Br�ta�n, Greece, Denmark, �celand, �reland, �taly, Japan, South Afr�ca, Canada, Luxembourg, Hungary, Germany, New Zealand, Norway, Poland, Portugal, the Republ�c of Korea, the Czech Republ�c, Russ�an Federat�on, the Un�ted States of Amer�ca, Turkey, Ukra�ne, F�nland, France, The Netherlands, Spa�n, Sweden and Sw�tzerland (34 states in all).

Although not a member of the MTCR, �n February 2004, Serb�a and Montenegro un�laterally dec�ded to comply w�th “the MTCR documents”: equ�pment, software and technology as of May 30, 2003 and the gu�del�nes for �mportant transfers of sens�t�ve project�les as of January 7, 1993.

�.�. AUSTRALIAGROUP-AG��

Austral�an Group (AG) was establ�shed �n 1985 as an informal organization br�ng�ng together 15 states a�m�ng to l�m�t the prol�ferat�on of chem�cal and b�olog�cal weapons, product�on capac�t�es and equ�pment as well as related technolog�es, through the �mprovement of the effect�veness of export control.

Documents for control �nclude gu�del�nes and a common control l�st spec�fy�ng what needs to be �ncorporated �nto nat�onal leg�slat�on and kept under control. Common control l�sts mostly �nclude l�ve agents, tox�ns, precursors to chem�cal weapons and dual-use technology. Australian group supports the objectives of International Conventions on Chemical Weapons (CWC) and Biological and Toxic Weapons Convention (BTWC) that we are a signatory of. All member states of the Austral�an Group are s�gnator�es to these Convent�ons. The group acts �n support of the Chem�cal Weapons Convent�on and focuses on the control of chem�cal weapons, precursors and b�olog�cal agents, as well as related equ�pment and product�on technology.

The Chemical Weapons Convention – CWC �s a binding international treaty controlling chemicals and chemical weapons, with the focus on chemical weapons and precursors.

�� www.mtcr.�nfo.�� www.austral�agroup.net.

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The Austral�an Group operates through annual meet�ngs held �n Par�s; all dec�s�ons are reached by consensus of members.

For a state to ga�n membersh�p �n the Australian Group, it must demonstrate �ts comm�tment to non-prol�ferat�on of chem�cal and b�olog�cal weapons, that �s, prove that �t has effective measures of export control at the national level, which must be effective in the prevention of the production of chemical and biological weapons, simple for implementation and practical use without hindering regular trade in materials and equipment used for legitimate purposes.

Member states of the Austral�an Group are: Argent�na, Austral�a, Austr�a, Belg�um, Bulgar�a, Great Br�ta�n, Greece, Denmark, Eston�a, �celand, �reland, �taly, Japan, South Afr�ca, Canada, Cyprus, Latv�a, L�thuan�a, Luxembourg, Malta, Hungary, Germany, New Zealand, Norway, Poland, Portugal, the Republ�c of Korea, the Czech Republ�c, Roman�a, the Un�ted States of Amer�ca, Slovak�a, Sloven�a, Turkey, Ukra�ne, F�nland, France,The Netherlands, Spa�n, Sweden and Sw�tzerland (40 states �n all). The European Comm�ss�on part�c�pates as an observer.

�.�. NUCLEARSUPPLIERSGROUP-NSG��

Nuclear Suppl�ers Group is not an internationally binding treaty, but a collective political agreement of the member states w�th the a�m to ensure through NSG gu�del�nes that trade �n nuclear mater�al for c�v�l purposes does not contr�bute to the prol�ferat�on of nuclear weapons or other nuclear dev�ces. It controls export of dual-use equipment that can be applied as nuclear weapons.

Although the Nuclear Suppl�ers Group �s not d�rectly connected w�th the �nternat�onal Atom�c Energy Agency (�AEA), �t publ�shes NSG gu�del�nes and appl�es the so called “Tr�gger” l�st. The L�st compr�ses products “espec�ally des�gned or prepared”forprocessing,useorproductionofspecialmaterialscapableoffissionandincludes:processingplants,equ�pment, components and mater�als. The gu�del�nes are also appl�ed to relevant technology for the development, product�on or use of the above products or plants.

Gu�del�nes are set by consensus of member states at annual plenary conferences held �n V�enna.

The Nuclear Suppliers Group member states are: Argent�na, Austral�a, Austr�a, Belg�um, Bulgar�a, Braz�l, Canada, Kazakhstan, Ch�na, Cyprus, Croat�a, the Czech Republ�c, Denmark, Eston�a, F�nland, France, Greece, Hungary, �celand, �reland, �taly, Japan, the Republ�c of Korea, Latv�a, L�thuan�a, Luxembourg, Malta, The Netherlands, New Zealand, Norway, Poland, Portugal, Roman�a, Russ�an Federat�on, Slovak�a, Sloven�a, South Afr�ca, Sweden, Sw�tzerland, Turkey, Ukra�ne, Great Br�ta�n and the Un�ted States of Amer�ca (45 �n all). The European Comm�ss�on part�c�pates as an observer.

In2005/2006thepresidingstateoftheNuclearSuppliersGroupisNorway,andBrazilin2006/2007.

�.�. THEZANGGERCOMMITTEE-ZG��

The Zangger Comm�ttee was establ�shed as an informal agreement w�thout legal and pol�t�cal b�nd�ng force for the member states. �ts objective �s to harmon�ze the appl�cat�on of the Non-prol�ferat�on of Nuclear Weapons Treaty (NPT),whichtheSFRYratifiedin1970andtheFRYapprovedin2000,aswellasthedemandsoftheInternationalAtom�c Energy Agency (�AEA) concern�ng precaut�ons to be taken when export�ng nuclear goods. They create and update the l�st of mater�als that can be exported only �f secur�ty measures have been taken.

Eachmemberstateisfreetodefinetherangeofactivity.Decisionsarereachedbyconsensus.

The follow�ng states are members of the Zangger Comm�ttee: Argent�na, Austral�a, Austr�a, Belg�um, Bulgar�a, Great Br�ta�n, Greece, Denmark, �reland, �taly, Japan, South Afr�ca, Canada, Ch�na, Luxembourg, Hungary, Germany, Norway, Poland, Portugal, the Republ�c of Korea, the Czech Republ�c, Roman�a, Russ�an Federat�on, the Un�ted States of Amer�ca, Slovak�a, Sloven�a, Turkey, F�nland, France, The Netherlands, Croat�a (jo�ned on June 30, 2006), Spa�n, Sweden and Sw�tzerland (36 states �n all). The European Comm�ss�on part�c�pates as an observer.�� www.nuclearsuppl�ersgroup.org.�� www.zanggercomm�ttee.org.

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* * *

The advantages to Members States of �nternat�onal treat�es and reg�mes relat�ng to export control of weapons, m�l�tary equ�pment and dual-use goods are numerous, �nclud�ng:

n Exchange of �nformat�on between member states; and

n Amemberstatecanputproposalsorinfluencedecision-makingconcerningguidelinesorchangesinthecontrol l�sts,

n S�nce all dec�s�ons are reached by consensus, �t could be taken that export �nto member states �s safer as the country �n quest�on conducts adequate export control, and so forth.

�n l�ne w�th �ts fore�gn pol�cy object�ves, and for �mprov�ng �ts �nternat�onal pos�t�on, Serbia should as soon as possible join all international control regimes, especially because it fulfills all formal preconditions formembersh�p: to be a manufacturer or a suppl�er of weapons, m�l�tary equ�pment and dual-use goods, and to have all pr�nc�pal �nternat�onal regulat�ons �ncorporated �n �ts nat�onal leg�slat�on.

2. ArmsTradeTreaty-АТТ

On October 27, 2006, the Un�ted Nat�ons Comm�ttee dec�ded, w�th a major�ty of votes on the beg�nn�ng of work onthecreationoftheArmsTradeTreaty.TheRepublicofSerbiaisoneof139statesthatvotedforthefirststepto be taken towards th�s �nternat�onal agreement for the prevent�on of �llegal and �rrespons�ble trade �n weapons, whichcausesconflict,povertyandseriousviolationsofhumanrights(onlytheUnitedStatesofAmericavotedaga�nst).

The pr�nc�pal �dea was to �nst�tute certa�n measures wh�ch would rect�fy the ex�st�ng legal �nadequac�es allow�ng weaponstoreachconflictzonesinspiteofsanctionsandexportcontrol.Inaddition,itaimstopreventsupplyofweapons to states whose development �s halted due to spend�ng on weapons and m�l�tary equ�pment.

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V. InclusionofSerbiaintoInternationalExportControlSystem

Accepting standards �n the area of control of �nternat�onal transfers of weapons, m�l�tary equ�pment and dual-usegoods,observedbyallstatesunitedinthefightagainstinternationalterrorismandproliferationofweaponsof mass-destruct�on, �s �mportant for Serb�a’s �mage and �ts �nclus�on �n the �nternat�onal export control system as well as relevant �nternat�onal control reg�mes and treat�es.

The need for cooperat�on and the establ�shment of �nternat�onal control reg�mes �n the transfer of such goods emerged as far back as the �� World War, w�th the r�sks from uncontrolled development, trade and use of chem�cal, b�olog�cal and nuclear weapons – �n short, weapons of mass destruct�on.

To the ex�st�ng control of the transfer of trad�t�onal weapons an equally �mportant control of transfer of dual-use goods was added - or�g�nally des�gned for c�v�l purposes but later put to m�l�tary use.

Th�s process assumed greater �mportance after the d�ssolut�on of the former Sov�et Un�on, when a large number of �nc�dents were reported �nvolv�ng attempted smuggl�ng of convent�onal weapons of mass destruct�on, pr�mar�ly �n the terr�tory of the former Sov�et Un�on, Balt�c and East European states.

The efforts towards eliminating the threat from terrorism and proliferation of weapons of mass destruction intensifiedafterSeptember11,2001andtheterroristattacksagainsttheUnitedStates.Theneedforeffectiveexport control sharpens w�th the later spread of terror�st attacks �n other countr�es.

�n terms of �ts �nternat�onal pos�t�on, Serb�a �s espec�ally �nterest�ng due to �ts geo-strateg�c pos�t�on, �ts respectable potent�al �n the area of defense �ndustry (desp�te damage caused by the bomb�ng), as well as surplus weapons made ava�lable due to the assumed comm�ttment to reduce m�l�tary potent�al at �ts d�sposal.

Intheinitialperiodoftheintroductionofrelevantlegislation(after2001),significantcontributionwasmadebythe Un�ted States of Amer�ca, Great Br�ta�n and Canada, and later the EU, towards the successful �mplementat�on of the Law wh�ch came �n force on March 31, 2005.

Spec�al �nterest of the US State Department �n the �nclus�on of our reg�on �n export control processes was demonstrated by the dec�s�on to attach to the USA Embassy �n Belgrade a permanent representat�ve of the Programme of Export Control and Border Secur�ty�0 �n charge of Serb�a, Montenegro and Bosn�a and Herzegov�na.

�n 2005 and 2006, the EU offered full support to the development of an effect�ve export control �n Serb�a and the reg�on at large, pr�nc�pally of dual-use goods. The 2004 EU P�lot Project for strengthen�ng of export control systems �n South Eastern Europe states, was conducted by the Stockholm �nternat�onal Peace Research �nst�tute S�PR�� wh�le the German Agency for Econom�cs and Export Control - BAFA�� was des�gnated for the conduct of thePilotProject2005/2006-Cooperationwiththirdcountriesintheareaofexportcontrol(apartfromSerbiaand Montenegro, the project �ncluded Ch�na, Ukra�ne and the Un�ted Arab Em�rates).

�. InternationalCooperation

Over the last few years, dur�ng the process of bu�ld�ng the capac�t�es of the state, �nst�tut�ons and people who carr�ed �t out, from the adopt�on of a whole set of regulat�ons to the�r full �mplementat�on, strong and successful �nternat�onal cooperat�on was ma�nta�ned. The follow�ng should be noted:

n As of 2002, part�c�pat�on by our representat�ves at regular annual Conferences on Export Control, br�ng�ng together over 100 states;

�0 EXBS - Export Control and Border Secur�ty.�� Stocholm �nternat�onal Peace Research �nst�tute – S�PR�; www.s�pr�.org.��FederalOfficeofEconomicsandExportControl–BAFA;www.bafa.bund.de.

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n As of 2002, part�c�pat�on of all our representat�ves at regular annual profess�onal gather�ngs �n Oxford, UK, deal�ng w�th the �mprovement of the TRACKER – software programme for automat�c l�cens�ng, developedbytheStateDepartmentoftheUSA,whichalsofinancesitsapplicationinabout20countries�n the world.

IntheorganizationandwiththefinancialsupportofseveralministriesoftheUSAGovernment(Departmentsofthe �nter�or, Departments of Defense, Departments of Commerce, Departments of Energy), Great Br�ta�n (Fore�gn Office),Germany(BAFA),UNDP,EU,SIPRI,numerous seminars and workshops in the country and abroad were held recently, br�ng�ng together representat�ves from all competent �nst�tut�ons.

1. Workshop on regulat�ng the area of export control and pract�ces �n the USA; organ�zed by the State Department, the USA, February 2004, Belgrade.

2. WorkshoponinternationalcontrolregimesandclassificationofgoodsbyNationalControlLists;organizedbythe State Department, the USA, April 2004, Belgrade.

3. Consultat�ons on the creat�on of the nat�onal strategy �n the area of reduct�on of small arms and l�ght weapons (SALW); organ�zed by the UNDP – September 2004, Budva.

4. Reg�onal sem�nar on the role of economy �n the prevent�on of unwanted export of weapons and dual-use goods �n pract�ce �n Roman�a; organ�zed by the US State Department, May 2005, Bucharest.

5. Sem�nar on weapons of mass destruct�on; organ�zed by the Department of Defense, DTRA, FB�, USA, June 2005, Budapest.

6. Sem�nar on the �mplementat�on of export control of dual-use goods �n South-Eastern Europe countr�es; organ�zed by RACV�AV – October 2005, Rakitje, Zagreb.

7. Seminar on the identification of dual-use goods; organized by the Department of Defense, DTRA, USA,October 2005, Belgrade.

8. Workshop on l�cens�ng procedures and pract�ces (L�cens�ng � Course); organ�zed by the Department of Commerce, USA, December 2005, Washington.

9. Reg�onal conference of the Western Balkan states on the creat�on of annual reports on export of weapons; UNDP – SEESAC (South Eastern and Eastern Europe Clear�nghouse for the Control of Small Arms and L�ght Weapons) – February 2006, Belgrade.

10. Sem�nar on the harmon�zat�on of regulat�ons �n the area of protect�on from nuclear danger, organ�zed by: the Department of Energy of the USA – Adm�n�strat�on for Nat�onal Secur�ty from Nuclear Hazard – February/March 2006, Institute “Vinca”, Belgrade.

11. Reg�onal sem�nar on the �mplementat�on of export control of dual-use goods �n South-eastern Europe states; organ�zed by RACV�AC – March 2006, Rakitje, Zagreb.

12.TrainingCourseoninvestigativeactionsincacesoftraffickingofweaponsofmassdestruction;organizedbythe US Department of Defense, DTRA, March 2006, Belgrade.

13. Tra�n�ng Course on TRACKER software �mplementat�on for staff work�ng on l�cens�ng and system adm�n�strators; organ�zed by the US State Department, April 2006, Belgrade.

14. �n�t�al v�s�t for the �mplementat�on of the P�lot Project EU – Serbia and Montenegro; organ�zed by EU Comm�ss�on, & BAFA (German Export Control Agency) – April 2006, Belgrade.

15. Workshop on l�cens�ng procedures and pract�ces (L�cens�ng �� Course); organ�zed by the Department of Commerce and EXBS, USA, April 2006, Belgrade.

16. P�lot Project EU – Serbia and Montenegro: Tra�n�ng course on l�cens�ng procedures and pract�ces of the EU states on the example of Germany; organ�zed by EU Comm�ss�on, & BAFA Germany – May 2006, Ashburn, Germany.

17. Reg�onal conference on advancements of �ndustry �n export control of dual-use goods and weapons: organ�zed by the M�n�stry of Fore�gn Affa�rs of Bulgar�a and the M�n�stry of Fore�gn Affa�rs of Hungary – May 2006, Sofia.

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18. Reg�onal conference of the Western Balkan states on strengthen�ng cooperat�on �n export control; organ�zed by: Pres�d�ng EU Member State, Austr�a and the Stockholm Peace Research �nst�tute from Sweden (S�PR�) – May 2006, Vienna.

19. Pract�ce relat�ng to export control and the �nternal Control Programme �n Pol�sh enterpr�ses; organ�zed by: the UNDP for Serb�a and Montenegro – May 2006, Warsaw.

20. Expert m�ss�on �n export control of weapons and dual-use goods; organ�zed by TA�EX, �nstrument of EC �n cooperat�on w�th the M�n�stry of Economy of Poland – June 2006, Belgrade.

21. �nternat�onal sem�nar on export control and electron�c management of the l�cens�ng process; organ�zed by the M�n�stry of Fore�gn Affa�rs of Bulgar�a and the M�n�stry of Fore�gn Affa�rs of Hungary – September 2006, Budapest.

22. Reg�onal sem�nar “Cooperating to meet Common Arms Export Control Standards”; organ�zed by the M�n�stry of Fore�gn Affa�rs of F�nland, as a pres�d�ng EU Member State and the Government of Bosn�a and Herzegov�na �n cooperat�on w�th the Stockholm Peace Research �nst�tute from Sweden (S�PR�) – October 2006, Sarajevo.

23.Studyvisit,inaccordancewiththebestpracticeprinciple,totheGermanOfficeforExportControl–organizedfor the purpose of advancement of the system of export control of weapons and m�l�tary goods �n Serb�a; organ�zed by the UNDP Serb�a – October 2006, BAFA Ashburn, Germany.

24.Commodity Identification Training for dual-use goods, within the programme for non-proliferation of theweapons of mass destruct�on; organ�zed by the programme EXBS of the Amer�can Embassy �n Belgrade – November 2006, Belgrade

25. Sem�nar for Serb�an Customs “The Role of Customs in Enforcing Dual-use Export Control”; organized by the Stockholm Peace Research �nst�tute from Sweden (S�PR�) – November 2006, Belgrade.

�. CooperationwithIndustry

Inadditiontoacomprehensivetrainingofthestaffincompetentinstitutions,withthefinancialsupportfromtheUNDP, S�PR�, and the USA (the Departments of Defense and Commerce), we have organized four seminars for representatives of local institutions and enterprises, engag�ng �n manufacture or fore�gn trade �n controlled goods.

AtthefirstseminarinJune2005,therewere25participants,atthesecond,inOctober2005,therewereover50. �n February 2006, at the th�rd sem�nar, there were 34 representat�ves of local compan�es, wh�le the last, two-day forum held �n June 2006, gathered together over 120 part�c�pants from all walks of �ndustr�al organ�zat�ons, scientificandgovernmentinstitutions.

Th�s type of �ndustry educat�on�� s cons�dered to be very �mportant, s�nce there are many pr�vate compan�es, and even state �nst�tut�ons that do not possess adequate knowledge of legal regulat�ons �n the area of fore�gn trade, espec�ally concern�ng dual-use goods. Th�s �s why we bel�eve that such �nteract�ve processes should be cont�nued for the advancement of regulat�ons and pract�ce �n the�r �mplementat�on.

�. Proposedfurtheractivities

The act�v�t�es of the M�n�stry on susta�ned �mprovement of export control �n our country need to be cont�nued, and �nclude enforcement act�v�t�es. For th�s, we st�ll need the ass�stance of �nternat�onal commun�ty, and, naturally, the cooperat�on of all relevant �nst�tut�ons �n the �mplementat�on of regulat�ons �n th�s sens�t�ve area, as well as �ndustr�al outreach.

For further �mprovement of the �mport-export control, the follow�ng �s necessary:

n Pol�t�cal support to the comm�tment of the Republ�c of Serb�a to cont�nue the process of development and full �mplementat�on of legal regulat�ons as well as of the ex�st�ng system of export control of weapons, m�l�tary

�� nternat�onally recogn�zable term: �ndustry Outreach or �ndustry-Government Relat�ons.

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equ�pment and dual-use goods. Cons�der�ng the �mportance attached to th�s �ssue by the �nternat�onal commun�ty, our Government �s expected to express strong comm�tment to �ts resolut�on;

n Elaborat�on of ex�st�ng regulat�ons and amendment of those that had been affected by the l�m�ted powers of the State Un�on of Serb�a and Montenegro;

n The �n�t�at�on of formal procedures for the access�on of Serb�a to �nternat�onal treat�es and control reg�mes as a full member of the Wassenaar Arrangement (WA), the Austral�a Group (AG), the M�ss�le Technology Control Reg�me (MTCR), Nuclear Suppl�ers Group (NSG), and the Zangger Comm�ttee (ZC);

n The establ�shment of new Nat�onal Control L�sts, that �s, br�ng�ng them �n l�ne w�th the last ones adopted �n the EU �n 2006;

n FulfillingallcommitmentsrelatedtoSerbia’smembershipintheUN,aswellastonumerousinternationalresolut�ons, recommendat�ons and other documents concern�ng prevent�on of the prol�ferat�on of weapons of mass destruct�on and suppress�on of terror�sm;

n Bu�ld�ng up reg�onal cooperat�on �n the area of export control;

n Cont�nued part�c�pat�on �n the EU P�lot Project;

n Cont�nued sem�nars and educat�on of domest�c �ndustry and the government sector on export control of controlled goods;

n Establishingaworkinggroupfortheidentificationofdual-usegoods;

n Cont�nued cooperat�on w�th the EU w�th�n the TA�EX Programme;

n Improvementofthetechnicalbackgroundandtrainingofcustomsauthoritiesinsuppressionoftraffickingof controlled goods;

n �mplementat�on of the TRACKER software;

n Cont�nued work on the �ntroduct�on of the Programme of �nternal Control �n domest�c compan�es w�th the support of the Department of Commerce of the USA (�CP Programme); and

n Promot�on of the �dea and cont�nuat�on of �n�t�ated act�v�t�es a�m�ng to promote Belgrade as a reg�onal centreoftheWesternBalkanstatesfortheprovisionoftechnicalandscientific-researchservicesrelatingtoeducationandidentificationofweaponsofmassdestruction(chemical,biological,nuclear).

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VI. Statisticaloverview

As �t has already been sa�d, the year 2005 represents a m�lestone �n the control of fore�gn trade �n weapons and dual-use goods.

Theyear2006wasalsosignificant,for,intermsofcalendar,thiswasthefirstwholeyearoftheimplementationofthenewlegalregulations;itwasalsofilledwithactivities,especiallyattheinternationallevel.Theintroductionofcivilcontrolofforeigntradeinweaponsandmilitaryequipmentandforthefirsttimeassumedcontrolofgoodsthat can be used for both c�v�l and m�l�tary purpose, brought us up to the EU standards �n th�s sens�t�ve area.

�mport and export �n weapons, m�l�tary equ�pment and dual-use goods are presented �n the Annexes with tables showing all relevant data. Th�s part of the Report g�ves an overview of issued export and import licenses for weapons, military equipment and dual-use goods and the realized exports and imports of controlled goods broken down by issued licenses, by destinations, and by categories in National Control Lists.

Data are separated for 2005 and 2006, w�th the data for the year 2005, for the per�od March 31 to December 31, 2005 �n the same �n form as those for the year 2006. The per�od from January 1, to March 31, 2005 when fore�gn trade �n weapons and m�l�tary equ�pment was the respons�b�l�ty of the M�n�stry of Defense of Serb�a and Montenegro, was covered by the overv�ew of �ssued export and �mport l�censes for weapons and m�l�tary equ�pment, broken down by dest�nat�ons, but w�thout the data on exports and �mports of such goods.

As already d�scussed, control of dual-use goods was �ntroduced as of March 31, 2005. The fact that �n 2005 there were 10 and �n 2006 n�ne l�censes �ssued for �mport and one (�n 2006) for export of goods of dual use, demonstrates that legal regulat�ons on dual-use goods are st�ll unknown to the w�der c�rcle of our bus�nessmen.

Information on foreign trade in controlled goods for 2005 �s related to the State Un�on of Serb�a and Montenegro, and was obta�ned from the M�n�stry of Defense of Serb�a and Montenegro for the per�od of January 1, 2005 to March 31, 2005. �t should be added that the data on real�zed exports and �mports were collected from bus�ness enterpr�ses that �n 2005 were reg�stered for th�s act�v�ty w�th the M�n�stry of �nternat�onal Econom�c Relat�ons of Serb�a and Montenegro.

�nformat�on on fore�gn trade �n controlled goods for 2006 �s related to the State Un�on of Serb�a and Montenegro inthefirsthalfoftheyear,andfromJunetoDecember2006toSerbia.Wedecidedonsuchapproach,sinceinthe Reg�ster of Ent�t�es L�censed to Perform �nternat�onal Trade �n Controlled Goods (hereafter the Reg�ster) the proport�on of Montenegr�n compan�es �n the total number of reg�strat�ons�� s 2.5% for the year 2005 and 2.1% �n 2006, and even lower for the number of l�censes �ssued to Montenegr�n enterpr�ses, that �s, �n terms of value, the proport�on of total number and total value of l�censes �ssued. The data on real�zed exports was collected from bus�ness enterpr�ses that engaged �n th�s act�v�ty dur�ng 2006 and are entered �n the Reg�ster.

�t should be noted that the value of exports and �mports cons�derably d�ffers from the value of export and �mport l�censes �ssued due to the fact that l�censes are val�d for the per�od of one year wh�ch does not correspond to the calendar year.

The follow�ng 13 Annexes g�ve a deta�led overv�ew of the funct�on�ng of the system of �mport export control of weapons, m�l�tary equ�pment and dual-use goods �n the years 2005 and 2006.

�� Out of the total of 80 �n 2005, that �s, 95 �n 2006, only two subjects of reg�strat�on headquartered �n Montenegro were entered �n the Reg�ster – see Table 1.

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Annex�/0�andAnnex�/0�:

ListofentitiesenteredintheRegister

�n the year 2005, there were 80 enterpr�ses entered �n the Reg�ster of Ent�t�es L�censed to Perform �nternat�onal Trade �n Controlled Goods w�th the M�n�stry of �nternat�onal Econom�c Relat�ons of Serb�a and Montenegro.

�n 2006, another 15 entr�es were made �n the Reg�ster of the competent m�n�stry.��

Withtheviewtomaintainingconfidentialityofentitiesengagedinforeigntradeincontrolledgoods,destinationsand products are not �nd�cated, nor the amount of the�r fore�gn transact�ons.

Accord�ng to the type of ownersh�p, on December 31, 2006, pr�vate ownersh�p predom�nated w�th 78%, followed by soc�al ownersh�p 13.68%, m�xed ownersh�p w�th 7.37% and government property w�th 1%.

Accord�ng to the or�g�n of the found�ng cap�tal of the reg�stered ent�t�es on December 31, 2006, domest�c cap�tal preva�ls w�th 89.48%, followed by m�xed cap�tal 7.37 %, and fore�gn cap�tal 3.15%.

Accord�ng to s�ze, on December 31, 2006, �n the Reg�ster: 10 large, 4 med�um and 81 small legal ent�t�es were entered. �n percentages, th�s �s 10.53%, 4.21%, and 85.26 %, respect�vely, out of the total number of reg�str�es.

The �ssued dec�s�ons on reg�strat�on broken down by the type of controlled goods for wh�ch ent�t�es are reg�stered are shown �n the follow�ng table.

Table 1: Decisions on registration broken down by type of controlled goods

TyPE OF CONTROLLED GOODS

NUMBER OF DECISIONS

ISSUED% ALLTOGETHER ON

DEC. 31, 2006

2005 2006 2005 2006 NUMBER %

Weapons and m�l�tary equ�pment 22 1 27.50 6.67 23 24.21

Dual use goods 7 3 8.75 20.00 10 10.53

Weapons and m�l�tary equ�pment and dual use goods 51 11 63.75 73.33 62 65.26

Total 80 15 100.00 100.00 95 100.00

Source: the Reg�ster of Ent�t�es L�censed to Perform �nternat�onal Trade �n Controlled Goods

�� From January 1, to June 5, 2006 the Reg�ster was kept by the M�n�stry of �nternat�onal Econom�c Relat�ons of Serb�a and Montenegro and from June 6, to December 31 by the M�n�stry of �nternat�onal Econom�c Relat�ons of the Republ�c of Serb�a.

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Annex�a/0�:

Dataonissued export licenses for weapons and military equipment,brokendownbydestinationsforIquarterof�00�

�n order to prov�de as full as poss�ble summary on export l�censes �ssued �n 2005, the data collected �n th�s per�od by the M�n�stry of Defense of Serb�a and Montenegro are g�ven separately, s�nce they do not conta�n numbers from Nat�onal Control L�sts of Weapons and M�l�tary Equ�pment. Data �s not ava�lable for th�s per�od on real�zed �mports and exports of weapons and m�l�tary equ�pment. Namely, at the t�me, compan�es engaged �n �mport and export of weapons and m�l�tary equ�pment were not obl�ged to �nform the competent m�n�stry on the real�zat�on of a fore�gn trade transact�on; on the other hand, stat�st�cal data subm�tted by the Customs Adm�n�strat�on could not be obta�ned for th�s purpose.

�n the per�od from January 1, 2005 to March 31, 2005, 68 licenses for export of weapons and military equipment were issued, for 34 destinations, in the total value of USA$ 113.10 million.

Most licenses were �ssued for the follow�ng dest�nat�ons: �ndones�a (9), Bosnia and Herzegovina (8), USA (6), Israel (4) and Iraq(3).Thesefivedestinationsaccountfor30exportlicenses,makingup44%ofthetotalnumber of l�censes �ssued �n th�s per�od.

�n terms of value, pr�nc�pal export dest�nat�ons �n th�s per�od were: USA (USA$ 32.82 m�l.), Libya (USA$ 25.21 m�l.), Myanmar (USA$ 16.86 m�l.), Egypt (USA$ 14.86 m�l.), Kuwait (USA$ 7.67 m�l.), Israel (USA$ 2.95 m�l.), Uganda (USA$ 2.69 m�l ), Iraq (USA$ 2.34 m�l.), Slovakia (USA$ 1.95 m�l. ) and Indonesia (USA$ 1.83 m�l.). These ten markets account for l�censes �n the amount of USA$ 109.18 m�l, or 96.5 % of all l�censes �ssued �n th�s per�od.

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Annex�/0�andAnnex�/0�

Dataonissued export licenses for weapons and military equipment,brokendownbydestinations��,inaccordancewiththeNationalControlListofWeaponsandMilitaryEquipment��

In the period from March 31 to December 31, 2005, when the respons�b�l�ty for l�cens�ng was transferred from the m�n�stry �n charge of the m�l�tary to the M�n�stry of �nternat�onal Econom�c Relat�ons of Serb�a and Montenegro, 206 export licenses were issued for 46 destinations, in the total amount of USA$ 63.35 million.

Most licenses were �ssued for the follow�ng dest�nat�ons: USA (36), Israel (18), Great Britain (15), Bosnia and Herzegovina (11), Germany (10), Bulgaria (8), France (8), Slovenia (8), Jordan (7) and India (7). These ten dest�nat�ons account for 128 l�censes, mak�ng up 62.13% of the total number of l�censes �ssued �n th�s per�od.

In terms of value, principal export destinations in this period were: USA (USA$ 11.29 m�l), �srael (USA$ 8.75 m�l), Seychelles (USA$ 6.65 m�l), Cyprus (USA$ 6.18 m�l), Great Br�ta�n (USA$ 4.93 m�l), Bosn�a and Herzegov�na (USA$ 3.78 m�l), Jordan (USA$ 3.37 m�l), Myanmar (USA$ 3.27 m�l), �taly (USA$ 3.21 m�l) and �nd�a (USA$ 2.74 m�l). These ten markets account for l�censes �n the amount of USA$ 54.71 m�l, or 86.34% of all l�censes �ssued �n th�s per�od.

In 2005, 274 export licenses were issued, �n the total amount of about USA$ 176.45 m�l. (�nclud�ng the above datafromAnnex2A/05).

In 2006, 300 export licenses were �ssued for 60 dest�nat�ons, �n the total amount of USA$ 346.33 mil. �n compar�son w�th 2005, the number of l�censes �ssued rose by about 9%, wh�le the�r total value doubled.

Most licenses were �ssued for the follow�ng dest�nat�ons: USA (32), Israel (20), Great Britain (19), Bosnia and Herzegovina (14), Bulgaria (12), France (10), Macedonia (10), India (9), Germany (9) and Panama (9). These ten dest�nat�ons account for 144 export l�censes, mak�ng up about 48% of the total number of l�censes �ssued �n thisperiod.Theorderofthefirstfourexportdestinationsbythenumberoflicensesissuedremainedthesame�n 2006 as �n 2005.

In terms of value, principal export destinations in this period were: USA (USA$ 263.64 m�l.), Myanmar (USA$ 13.85 m�l.),Libya (USA$ 11.5 m�l.), Belgium (USA$ 11.80 m�l.), Cyprus (USA$ 5.44 m�l.), Jordan (USA$ 5.23 m�l.), Bulgaria(USA$42.69мил),Israel (USA$ 3.81m�l.), India (USA$ 2.68m�l. ) Italia (USA$ 2.52 m�l.), France (USA$ 2.44 m�l.) and Bosnia and Herzegovina (USA$ 1.96 m�l.). These twelve markets account for l�censes �n the amount of USA$ 328.5 m�l, or 94.85 % of all l�censes �ssued �n th�s per�od.

Cons�der�ng the number of export l�censes �ssued and the�r value, we can draw the conclus�on that our largest and most important foreign trade partner in the export of weapons and military equipment is the United States of America, w�th about 76% of the total value of our exports.

�n compar�son w�th 2005, the data for the year 2006 show cons�derable rise in the value of export licenses for weapons and military equipment issued, espec�ally those for export to the USA – about s�x t�mes (from approx. USA$ 44.11m�l. �n 2005 to approx. USA$ 263.64 m�l. �n 2006)

�� Export dest�nat�on �s a buyer country w�th wh�ch the exporter has concluded a fore�gn trade transact�on.�� See Annex 1 w�th the Report – Sect�on of the Nat�onal Control L�st of Weapons and M�l�tary Equ�pment and the Dec�s�on on the Establ�shment oftheNationalControlListofWeaponsandMilitaryEquipment,publishedinthe“OfficialGazetteofSerbiaandMontenegro”,No.11/05.

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Annex�a/0�:

Dataonissued import licenses for weapons and military equipment,brokendownbydestinationsforIquarterof�00�

�t was already noted that �n Annex 2, data concern�ng exports of weapons and m�l�tary equ�pment, collected by the M�n�stry of Defense of Serb�a and Montenegro are g�ven separately, s�nce they do not conta�n numbers from Nat�onal Control L�sts of Weapons and M�l�tary Equ�pment, wh�le the data on real�zed �mport of weapons and m�l�tary equ�pment were not ava�lable for reasons already d�scussed.

�n the per�od from Jan. 1, 2005 to March 31, 2005, 16 licenses for import of weapons and military equipment were issued, from 8 destinations, in the total value of USA$ 0.93 million.

Most licenses were �ssued for the follow�ng dest�nat�ons: Bosnia and Herzegovina (6), Great Britain (3) and Slovenia (2). These three dest�nat�ons account for 11 �mport l�censes, mak�ng up 73% of the total number of l�censes �ssued �n th�s per�od.

In terms of value, the most important destination in this period was Bosnia and Herzegovina, (USA$ 0.46m�l.), account�ng for about 22% of the total value of l�censes �ssued �n th�s per�od.

28



Dataonissued import licenses for weapons and military equipment,brokendownbydestinations��,inaccordancewiththeNationalControlListofWeaponsandMilitaryEquipment��

As opposed to other states that control only the export of weapons and m�l�tary equ�pment, our country regulated the �mport of controlled goods as well, through pos�t�ve leg�slat�on.

In the period from March 31 to December 31, 2005, when the respons�b�l�ty for l�cens�ng was transferred from the m�n�stry �n charge of the m�l�tary to the M�n�stry of �nternat�onal Econom�c Relat�ons of Serb�a and Montenegro, 43 export licenses were issued, from 18 destinations, in the total amount of USA$ 4 million.

Most licenses were �ssued for the follow�ng dest�nat�ons: Bosnia and Hercegovina (11), Italy (5), Austria (5), Slovenia (3), the Czech Republic (3) and Switzerland (3). These s�x dest�nat�ons account for 30 l�censes, mak�ng up 70% of the total number of l�censes �ssued �n th�s per�od

In terms of value, principal export destinations in this period were: Bosnia and Hercegovina (USA$ 2.79 m�ll�on), the Czech Republic (USA$ 0.55 m�ll�on) and France (USA$ 0.27 m�ll�on). These three markets account for l�censes �n the amount of USA$ 3.61 m�l, or 90% of all l�censes �ssued �n th�s per�od.

In 2005, 59 import licenses were issued, �n the total amount of about USA$ 4.93 mil. (�nclud�ng the above datafromAnnex3A/05).

In 2006, 100 import licenses were �ssued from 21dest�nat�ons, �n the total amount of USA$ 12.52 mil. �n compar�son w�th 2005, the number of l�censes �ssued rose by about 69%, and about 2.5 t�mes �n the total value.

Most licenses were �ssued for the follow�ng dest�nat�ons: Bosnia and Hercegovina (28), Austria (12), Germany (11), Italy (9), the Czech Republic (6), Switzerland (5) and Belgium (4). These seven dest�nat�ons account for 75 �mport l�censes, mak�ng up about 75% of the total number of l�censes �ssued �n th�s per�od.

In terms of value, principal export destinations in this period were: Bosnia and Hercegovina (USA$ 8.93 m�ll�on), Belgium (USA$ 1.19m�ll�on), The Czech Republic (USA$ 0.4 m�ll�on), Austria (USA$ 0.36 m�ll�on) and France (USA$0.2million).ThesefivemarketsaccountforlicensesintheamountofUSA$11.08mil,or88.5%ofalll�censes �ssued �n th�s per�od.

�n compar�son w�th 2005, the data show a rise in the number and value of import licenses issued.

Cons�der�ng the number of export l�censes �ssued and the�r value, we can draw the conclus�on that our largest and most important foreign trade partner in the import of weapons and military equipment is Bosnia and Herzegovina, w�th about 71% of the total value of our exports. W�th th�s country there �s product�on cooperat�on and long-term bus�ness relat�ons.

�� mport dest�nat�on �s a seller country w�th wh�ch the exporter has concluded a fore�gn trade transact�on. �� See Annex 1 w�th the Report – Sect�on of the Nat�onal Control L�st of Weapons and M�l�tary Equ�pment and the Dec�s�on on the Establ�shment oftheNationalControlListofWeaponsandMilitaryEquipment,publishedinthe“OfficialGazetteofSerbiaandMontenegro”,No.11/05.

29



Dataonissued export licenses for dual-use goods,brokendwonbydestinationsofexports,inaccordancewiththeNationalControlListofDual-useGoods�0

In 2005 no export l�censes were �ssued.

In 2006 only 1 export license for Macedon�a was �ssued for USA$ 92,093.00.

Nosignificantchangesoccurredinthesecondyearofcontrolofdual-usegoods.Themainproblemisstilllackof �nformat�on on the part of producers and exporters, as well as on the part of customs author�t�es as regards whataredual-usegoods,andwhetheraspecificmerchandisehasdual-useornot.Thisisapositivesignthatthecontrolofforeigntransferofsuchgoodsmustbecomemoreefficient.

More developed states also face th�s problem, espec�ally due to the fact that the l�st of dual-use goods �s be�ng cont�nuously extended, due to the �nvent�on of new products, the development of technology and techn�cal poss�b�l�t�es for the use of ex�st�ng products.

�0SeetheDecisionontheEstablishmentoftheNationalControlListofDual-useGoodspublishedinthe“OfficialGazetteofSerbiaandMontenegro”,No.11/05.

30



Dataonissued import licenses for dual-use goods,brokendownbydestinationofexports,inaccordancewiththeNationalControlListofDual-useGoods

In 2005, when l�cens�ng and control of fore�gn trade �n dual-use goods were �ntroduced��, 10 licenses altogether were �ssued, from 8 dest�nat�ons, �n the total amount of USA$ 223,713.44.

Most licenses �n th�s per�od were for �mport from Austria (3)

In terms of value, the largest was the �mport of chem�cals from the Czech Republic �n the amount of USA$ 110,448.00, wh�ch �s about 49% �f l�censes �ssued �n the per�od �n quest�on.

In 2006, were �ssued 9 licenses for �mport from 7 destinations, in the total amount of USA$ 288,464.57.

Most licenses �n th�s per�od were for �mport from Slovenia (3)

In terms of value, as well, the largest was the �mport of alum�n�um rods from Slovenia, worth USA$ 91,837.55, wh�ch �s about 32% of the value of l�censes �ssued �n the per�od under observat�on.

Nosignificant changeoccurred in the second year of control of dual-use goods.Similar to export, themainproblem concern�ng dual-use goods �s st�ll lack of �nformat�on on the part of �mporters, as well as the lack of trainingforcustomsofficialsrelatingtoidentificationofdual-usegoods

�� The Law on Fore�gn Trade �n Weapons, M�l�tary Equ�pment and Dual-use Goods came �nto force on March 31, 2005.

31



Dataonthe realization of exports, on issued export licenses for weapons and military equipment,brokendownbydestinationofexports,inaccordancewiththeNationalControlListofWeaponsandMilitaryEquipment

For the first quarter 2005 no data are ava�lable on the real�zed export of weapons and m�l�tary equ�pment. Namely, at the t�me, compan�es engaged �n export of weapons and m�l�tary equ�pment were not obl�ged to �nform the competent m�n�stry on the real�zat�on of a fore�gn trade transact�on; on the other hand, stat�st�cal data could not be obta�ned for th�s purpose.

�n the per�od from March 31, 2005 to December 31, 2005, real�zed exports of weapons and m�l�tary equ�pment amounted to USA$ 31.42mil. wh�ch �s about 50% of the approved export �n the amount of USA$ 63.35mil.

The highest value for the export of weapons and military equipment was for: �srael (USA$ 5.9 m�l.), Great Br�ta�n (USA$ 4.2 m�l.), USA (USA$ 4.1 m�l.), Bosn�a and Hercegov�na (USA$ 2.3 m�l.) and Seychelles (USA$ 2.1 m�l.). Exporttofirstfivemarketsbyvalueofweaponsandmilitaryequipmentmakes59%ofthetotalexportinthisper�od.

In 2006, real�zed export of weapons and m�l�tary equ�pment was USA$ 71.25 mil, wh�ch �s only about 21% of the approved export �n the amount of USA$ 346.33 mil.

The highest value for the export of weapons and military equipment was for: L�bya (USA$ 11.4 m�l.), USA (9.75 m�l.), Myanmar (8.37 m�l.), �srael (3.2 m�l.), France (2.4 m�l.), �nd�a (2.1 m�l.), Cyprus (USA$2.01 m�l.) and Belg�um (1.97mil.).Exporttofirsteightmarketsamountsto41.15million,making58%ofthetotalexportin2006.

�n compar�son w�th the year 2005, exports rose in 2006, but there is a considerable discrepancy between the value of exports realized and the value of exports approved. There are several reasons for the d�fference between the value of l�censes �ssued and the real�zat�on of exports by the l�censes approved. One of the reasons �s that the l�censes are val�d for the per�od of one year, wh�ch does not correspond to the calendar year.

The analys�s of the data on the real�zat�on of exports by l�censes �ssued lead us to the conclus�on that �n 2006 long-term bus�ness deals were concluded wh�ch could not be real�zed dur�ng the same year.

�n add�t�on, �t should be noted that theoret�cally , our largest and most important foreign trade partner for the export of weapons and military equipment is the USA (by contracts concluded and licenses approved), regardless of the fact that the data for 2006 show that only 14% of the contractual value of our exports was actually real�zed. Cont�nu�ty and r�se �n exports (although only two �ncomplete years are under observat�on), can be clearly seen from exports to the Amer�can market.

32



Dataonthe realization of imports, on issued import licenses for weapons and military equipment,brokendownbydestinationofimports,inaccordancewiththeNationalControlListofWeaponsandMilitaryEquipment

For the first quarter 2005 no data are ava�lable on the real�zed �mport of weapons and m�l�tary equ�pment��

�n the per�od from March 31, 2005 to December 31, 2005, real�zed �mports of weapons and m�l�tary equ�pment amounted to USA$ 1.78 mil, wh�ch �s about 44% of the approved amount of USA$ 4.05 mil.

Most imports of weapons and military equipment came from Bosnia and Herzegovina (1.2 m�ll�on), or about 68% of the total �mport �n th�s per�od.

In 2006, real�zed �mport of weapons and m�l�tary equ�pment was USA$ 7.1 mil. wh�ch �s about 57% of the approved �mport �n th�s per�od.

Most imports of weapons and military equipment came from Bosnia and Herzegovina (5.2 m�ll�on), or about 73% of the total �mport �n th�s per�od.

�n compar�son w�th 2005, imports rose considerably in 2006.

Cons�der�ng the number of �mport l�censes �ssued, the�r value and real�zat�on, �t can be concluded that our largest and most important foreign trade partner for the import of weapons and military equipment is Bosnia and Herzegovina. Th�s �s the case of a rev�ved long-stand�ng bus�ness cooperat�on.

��Forthesamereasonsasinexports,seecommentwithAnnex6/05and6/06.

33



Dataonthe realization of exports, on issued import licenses for dual-use goods,brokendownbydestinationofexports,inaccordancewiththeNationalControlListofDual-useGoods

In 2005 there were no appl�cat�ons and no export l�censes were �ssued.

In 2006 only 1 export license for Macedon�a was real�zed for USA$ 92,093.00.

As already d�scussed, no significant changes occurred �n the second year of control of dual-use goods.

Inorderforittobemoreefficient,itisnecessarytoinformourwiderbusinesscommunityabouttheneedforcontrol, �ts a�ms and relevant legal regulat�ons. �n add�t�on, customs author�t�es need to undergo tra�n�ng for efficientuseoftheseregulations.

34



Dataonthe realization of imports, on issued import licenses for dual-use goods,brokendownbydestinationofimports,inaccordancewiththeNationalControlListofdual-usegoods

In 2005, real�zed �mports of dual-use goods amounted to USA$ 148,029.44, wh�ch �s about 66% of the approved amount of USA$ 223,713.44

Most imports of dual-use goods came from Great Britain (USA$ 73,870.00) and the Czech Republic (USA$ 44,309.00) or about 80% of the total �mport �n th�s per�od.

In 2006, real�zed �mports of dual-use goods was USA$ 282,223.97 wh�ch �s about 98% of the approved �mport of USA$ 288,464.57 �n th�s per�od.

Most imports of dual-use goods came from Slovenia (USA$86,633.24) and Slovakia (USA$ 82,923.00) or about 60% of the total �mport �n th�s per�od.

�n compar�son w�th 2005, imports of dual-use goods rose almost twofold in 2006.

�n l�ght of the number of �mport l�censes �ssued, the�r value and real�zat�on, �t can be concluded that �mporters are better �nformed than exporters, s�nce �t concerns goods under export control �n the European Union, principal foreign trade partner of Serbia in the area.

The problem needs to be addressed �n the follow�ng per�od �n cooperat�on w�th government �nst�tut�ons and the bus�ness sector.

34

35


Annex�0/0�andAnnex�0/0�

Dataondeniedapplications for licenses for exports of weapons and military equipmentbrokendownbydestinationofexports,inaccordancewihttheNationalControlListofWeaponsandMilitaryEquipment

In the period from March 31 to December 31, 2005, 9 applications for export of weapons and m�l�tary equ�pment were den�ed, �n the total amount of USA$ 269,874.59.

The most frequent reason for den�al was �ncomplete documentat�on.

In 2006, 18 applications for export of weapons and m�l�tary equ�pment were den�ed, �n the total amount of USA$ 16 million.

E�ghty seven percent of appl�cat�ons refused concern the export of weapons and m�l�tary equ�pment �nto Georg�a and Armen�a v�a the Seychelles.

The most frequent reason for the refusal was non-compliance with the criteria�� (dest�nat�ons under the embargooftheUNorunderthreatfromconflict–Armenia,Georgia,Rwanda).In addition, in licensing exports more attention has been paid to recommendations and the EU Code of Conduct on Arms Export��

��SeetheDecisionontheLicensingCriteriaforExportofWeapons,MilitaryEquipmentandDual-useGoods(“OfficialGazetteofSerbiaandMontenegro”,No,11/2005)appliedbythecompetentRepublicministry.�� See EU Code of Conduct on Arms Export and User’s Guide to the EU Code of Conduct on Arms Exports at www.consilium.europa.eu/export-controls.

35

36


Annex��/0�andAnnex��/0�

Dataondenied applications for licenses for imports of weapons and military equipment brokendownbydestinationofimports,inaccordancewiththeNationalControlListofWeaponsandMilitaryEquipment

In the period from March 31 to December 31, 2005, 1 application for �mport of weapons and m�l�tary equ�pment was den�ed, �n the total amount of USA$ 48,007.26

In 2006, 4 applications for export of weapons and m�l�tary equ�pment were den�ed, �n the total amount of USA$ 61,663.58.

The reason for den�al was �ncomplete documentat�on.

37



Dataondeniedapplications for licenses for exports of dual-use goodsbrokendownbydestinationofexports,inaccordancewiththeNationalControlListofDual-useGoods

In the period from March 31 to December 31, 2005, as well as in 2006 there were no den�als for the export of dual-use goods.

38



Dataondeniedapplications for licenses for imports of dual-use goodsbrokendownbydestinationofimports,inaccordancewiththeNationalControlListofDual-useGoods

In the period from March 31 to December 31, 2005, as well as in 2006 there were no den�als for the �mport of dual-use goods.

39


Graph 1: The number of licenses issued for weapons and military equipment in 2005 and 2006

Source: Republ�c of Serb�a, M�n�stry of Economy and Reg�onal Development

Graph 2: The value of licenses issued for weapons and military equipment in 2005 and 2006 (in mil. USD)


59

100

274300

0

50

100

150

200

250

300

2005

2006

IMPORT EXPORT

4,93 12,52

176,45

346,33

0

50

100

150

200

250

300

350

IMPORT EXPORT

2005

2006

40

Graph no. 3: Number of issued Dual Use licenses in 2005 and 2006


Graph no. 4: Value of issued Dual-Use licenses in 2005 and 2006 (in 000 USD)


109

01

0

2

4

6

8

10

IMPORT EXPORT

2005

2006

223,7

288,5

0

92

0

50

100

150

200

250

300

IMPORT EXPORT

2005

2006

Annual Report on the Realization of Foreign Trade Transfer of Controlled Goods for 2005 and 2006

41

APPENDICES

42


43


Enclosure�

ExtractfromtheNATIONALCONTROLLISTOFARMSANDMILITARYEQUIPMENT

1. Arms and automat�c weapons of 12.7 mm cal�ber (cal�ber – 0.5 �nches) or less, add�t�onal equ�pment and the�r spec�ally constructed components.

2. Arms or weapons of cal�ber over 12.7 mm (cal�ber 0.50 �nches), launchers, equ�pment and the�r spec�ally constructed components.

3. Ammun�t�on and spec�ally constructed components for weapons regulated under �tems 1.2 or 12.

4. Bombs, torpedoes, rockets, m�ss�les and the related equ�pments and add�t�onal components spec�ally constructed for m�l�tary purposes and the�r spec�ally constructed components.

5. F�re control equ�pment and alarm and warn�ng equ�pment, as well as the related counter-electron�c systems and equ�pment spec�ally des�gned for m�l�tary purposes w�th spec�ally des�gned related components and accessor�es.

6. Landvehiclesandtheircomponents,speciallyconstructedormodifiedformilitaryuse.

7. H�ghly tox�c mater�als, tear gas, related equ�pment, components, mater�als and technology.

8. M�l�tary explos�ves and charges, �nclud�ng propellant charges and s�m�lar substances.

9. War sh�ps, spec�al mar�ne equ�pment and tools and components spec�ally des�gned for m�l�tary use.

10. A�rcrafts, unmanned a�rplanes, a�r nav�gat�on motors and equ�pment, components spec�ally des�gned or modifiedformilitaryuse.

11. Electron�c equ�pment and �ts components spec�ally des�gned for m�l�tary use that have not been l�sted elsewhere.

12. M�ss�le systems w�th h�gh speed and k�net�c energy m�ss�les and the�r related equ�pment and spec�al components.

13. Armoured or protect�ve equ�pment and the�r related components.

14. Spec�al equ�pment for m�l�tary dr�lls and s�mulat�on of m�l�tary scenar�os, and �ts spec�ally des�gned components and complements.

15. �mage format�on equ�pment or counter-measure equ�pment and �ts spec�ally des�gned components.

16.Welded,moltenandothersemi-products thatcanbe identified incontrolled itemsbymeansofmaterialcompos�t�on, geometry or funct�on, and that have been spec�ally des�gned for any products ment�oned under �tems 1 to 4, 6, 9, 10, 12 or 19.

17. Var�ous equ�pment, mater�als and documentat�on, w�th the�r spec�ally des�gned components.

18. Equ�pment and technology for product�on of the �tems l�sted here�n.

19. DEW – d�rected energy weapon systems, the�r detect�on models, the�r equ�pment or equ�pment for combat�ng them and the�r spec�ally des�gned components.

20. Cryogen�c and super-conduct�ng equ�pment, as well as �ts spec�ally des�gned components and related parts.

21. Software.

22. Technology �n accordance w�th general technolog�cal note on technology for development, product�on or use of controlled goods l�sted here�n, except for technology referred to under �tem 7 and �tem 18.

23. Safety and para-m�l�tary equ�pment.

44

Enclosure�

StructureoftheEUDual-UseList

The l�st of dual-use goods and technolog�es has been broken down by 10 techn�cal categor�es that have been further d�v�ded �nto 5 groups.

Every �tem from the l�st �s marked w�th a label cons�st�ng of: the number of technical category (0-9), group (А-Е) and number of international control regime the item is subject to.

Technical categories:

0 – Nuclear mater�als, product�on capac�t�es and equ�pment

1 – Mater�als, chem�cals,”m�cro-organ�sms” and “tox�ns”

2 – Process�ng of mater�als

3 – Electron�cs

4 – Computers

5 – Safety of telecommun�cat�ons and �nformat�on tools

6 – Sensors and lasers

7–Navigationandflightelectronics

8 – Sea nav�gat�on

9 – Power systems, space sh�ps and related equ�pment

Groups:

А–Equipment,structuresandcomponents

B – Product�on and test�ng equ�pment

C – Mater�als

D – Software

E – Technology

Multilateral and unilateral control regimes:

000 – 099 – Wassenaar agreement

100 – 199 – M�ss�le technology control reg�me

200 – 299 – Nuclear suppl�ers group

300 – 399 – Austral�a group

400 – 499 – Chem�cal Weapons Convent�on

500 – 599 – Reserved




900 – 999 – Un�lateral control reg�mes


45

ANNEXES 1/05–13/05

ForeignTradeinControlledGoodsin�00�

46


47


Annex�/0�

Listoflegalentitiesregisteredforforeigntradeinarms,militaryequipmentanddual-usegoodsin�00�

SER.NO. NAMEOFLEGALPERSON SEAT FORMOFOWNERSHIP ORIGINOFCAPITAL

1. ACORDA �NTERNAT�ONAL DOO Belgrade Pr�vate Local

2. ALBA TRADE �NTERNAT�ONAL DOO Belgrade Pr�vate Local

3. ARSENAL CO DOO Belgrade Pr�vate Local

4. ASTRA �TB DOO Belgrade Pr�vate Local

5. ATOM ELEKTRON�C DOO Belgrade Pr�vate Local

6. AUTOR�NG BALKAN DOO Belgrade Pr�vate Fore�gn

7. BALKAN HUNTER DOO Belgrade Pr�vate Local

8. BAPS DOO Zrenjan�n Pr�vate M�xed

9. BELOM DOO Belgrade M�xed Local

10. BETRAM EKSPORT-�MPORT DOO Belgrade Pr�vate Local

11. BONUMINŽENJERINGDOO Belgrade Pr�vate Local

12. BOOM COMPANY DOO Belgrade Pr�vate Local

13. BULLET DOO Belgrade Pr�vate Local

14. CAJAVEC Profes�onalna elektron�ka DOO Belgrade Soc�al Local

15. CALYPSO GROUP DOO Belgrade Pr�vate Local

16. CAN-YU DOO Belgrade Pr�vate Local

17. CAPR�OLO DOO Backa Topola Pr�vate Local

18. COF�S Export-�mport DOO Belgrade Pr�vate Local

19. DDA-KOMERC DOO Leskovac Pr�vate Local

20. ELEKTRO �NTEREX DOO Belgrade Pr�vate Local

21. ELEKTRONSKO ODELJENJE DOO Belgrade Soc�al Local

22. EVACO �NTERNAT�ONAL DOO Zemun Pr�vate Fore�gn

23. FAP-TRANSPORT DOO Pr�boj M�xed Local

24. G2 M�TCHELL ARMS DOO Belgrade Pr�vate Local

25. G�M DOO Belgrade Pr�vate Local

26. GROF MBM DOO Petrovac on the Mlava r�ver Pr�vate Local

27. HK KRUŠ�K FABR�KA 4. NOVEMBAR AD Mojkovac Soc�al Local

28. HUBERTUS DOO Ada Pr�vate Local

29. �MK 14. Oktobar AD Krusevac M�xed Local

30. �NTER STYLE COMPANY Belgrade Pr�vate Local

48



31. �NTERAT�ONAL CG DP Belgrade Soc�al Local

32. J.N.J Export-�mport DOO Belgrade Pr�vate Local

33. JOM�L DOO Belgrade Pr�vate M�xed

34. JUGOHEM�JA AD Belgrade M�xed Local

35. JUGO�MPORT-MONT DOO Podgor�ca M�xed Local

36. JUGO�MPORT-SDPR JP Belgrade State-owned Local

37. K�PAL EXPORT DOO Belgrade Pr�vate Local

38. KOMET-T�M 93 OD Cacak Pr�vate Local

39. KRUPEX DOO Belgrade Pr�vate Local

40. KRUS�K AD Valjevo Soc�al Local

41. L�vn�ca prec�zn�h odl�vaka AD Ada M�xed M�xed

42. L�VONA DOO Belgrade Pr�vate Local

43. MAG ETROL DOO Belgrade Pr�vate Local

44. METAL�JA Export �mport DOO Belgrade Pr�vate Local

45. METEL DOO Nov� Sad Pr�vate Local

46. METEOR-ST�LL DOO Kragujevac Pr�vate Local

47. M�KRO DOO Београд Pr�vate Local

48. M�LAN BLAGOJEV�C-NAMENSKA Lucan� Soc�al Local

49. MOL COMMERCE DP Belgrade Soc�al Local

50. NB �.N.A.T DOO Kragujevac Pr�vate Local

51. OMN�CO SYSB� DOO Belgrade Pr�vate Local

52. OZMO COMPANY SZR Belgrade Pr�vate Local

53. PAMPERO DOO Belgrade Pr�vate Local

54. PATR�MONS DOO Belgrade Pr�vate M�xed

55. PMC �nzenjer�ng DOO Belgrade Soc�al Local

56. PRODUCT COMEX Belgrade Pr�vate Local

57. PROIZVODNJAMILEDRAGIĆDOO Zrenjan�n Pr�vate Local

58. PRVA �SKRA NAMENSKA PRO�ZVODNJA AD Bar�c Soc�al Local

59. PRV� PART�ZAN Uz�ce Soc�al Local

60. PUP�N-TELECOM AD Belgrade Pr�vate Local

61. REMONT-REMPROM DOO Cacak Soc�al Local

62. RTC DOO Belgrade Pr�vate Local

63. RUTEL DOO Belgrade Pr�vate M�xed

64. SAV�HEM DOO Belgrade Pr�vate Local

65. SLOBODA AD Cacak M�xed Local

49



66. SNAJPER DOO Belgrade Pr�vate Local

67. SR ALEKS ARMOR Belgrade Pr�vate Local

68. SSB �nternat�onal �nter Trade DOO Belgrade Pr�vate M�xed

69. TENEX&BOLDR�N� Subot�ca Pr�vate M�xed

70. TP LEMAX ŠABAC Sabac Pr�vate Local

71. TRANSJUG DOO Belgrade Pr�vate Local

72. TRAYAL KORPORAC�JA Krusevac Soc�al Local

73. TROFEJ COMERCE DOO Belgrade Pr�vate Local

74. TURBO COMMERCE DOO Belgrade Pr�vate Local

75. UN� GLOBAL Belgrade Pr�vate Local

76. Vazduhoplovn� zavod A�R DEPOT ORAO DOO Belgrade Pr�vate Local

77. V�ZUS DOO Belgrade Pr�vate Local

78. YUCONSUP DOO Belgrade Pr�vate Fore�gn

79. YUG�T COMPANY DOO Belgrade Pr�vate Local

80. ZASTAVAORUŽJEDP Kragujevac Soc�al Local

50


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75

ANNEXES 1/06–13/06

ForeignTradeinControlledGoodsin�00�

76


77


Annex�/0�

Listoflegalentitiesregisteredforforeigntradeinarms,militaryequipmentanddual-usegoodsin�00�

SER.NO. NAMEOFLEGALENTITY SEAT FORMOF

OWNERSHIP ORIGINOFCAPITAL

1. CATENA NET d.o.o. Belgrade Pr�vate Local

2. CHORTAN Co d.o.o. Belgrade Pr�vate Local

3. CPR �MPEX d.o.o. Belgrade Pr�vate Local

4. DEX d.o.o. Belgrade Pr�vate Local

5. ELMONT-ENG�NEER�NG d.o.o. Belgrade Pr�vate Local

6. GALEB AV�AT�ON d.o.o. Belgrade Pr�vate Local

7. HUBERTUS d.o.o. VRŠAC Vrsac Pr�vate Local

8. �VEX d.o.o. Belgrade Pr�vate Local

9. MELVALE CORPORAT�ON d.o.o. Belgrade Pr�vate Local

10. PROANALYT�CA d.o.o. Belgrade Pr�vate Local

11. S.G.PROMET d.o.o. Sremska M�trov�ca Pr�vate Local

12. T�SAB d.o.o. Belgrade Pr�vate Local

13. TR�ON d.o.o. Belgrade Pr�vate Local

14. UN�VERZAL-HOLD�NG AD Belgrade Pr�vate Local

15. ZAŠT�TA PLUS d.o.o. Belgrade Pr�vate Local

78


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For all details please contact:Republic of Serbia

Ministry of Economy and Regional Development Foreign Trade Policy and Regime Sector

Department for Foreign Trade in Weapons, Military Equipment and Dual-Use Goods Bulevar kralja Aleksandra 15

Jasna MatićState Secretary for �nternat�onal Econom�c Relat�ons

CabinetТел:0113617583Тел:0113617628

Ana Blagojević, M.Sc.Ass�stant M�n�ster

Foreign Trade Policy and Regime SectorTel./Fax: 011 334 60 67Tel./Fax:0113244908

Е-mail:ana.blagojev�[email protected]

Aleksandra RadosavljevićTechn�cal Secretary

Е-mail:aleksandra.radosavljev�[email protected]

Department for Foreign Trade in Weapons,Military Equipment and Dual-Use Goods

Ivan ArandjelovićHead of Department

Tel: 011 333 41 28Е-mail:�van.arandjelov�[email protected]

Asija VeljovićAdv�sor

Tel: 011 333 41 89Е-mail:as�ja.veljov�[email protected]

Dragana PetrovićAdv�sor

Tel: 011 333 41 78Е-mail:dragana.petrov�[email protected]

Snežana MilićAdv�sor

Tel:011 333 41 80Е-mail:snezana.m�l�[email protected]

Tatjana MojsejevAdv�sor

Tel:011 333 41 77Е-mail:[email protected]

Rade StojićAdv�sor – �nformat�on Technology

Tel:011 333 41 45Е-mail:rade.stoj�[email protected]

Biljana GizdavićDepartment Assoc�ate

Tel:011 333 41 07Е-mail:b�ljana.g�zdav�[email protected]
