Brokering of defence-related products

The brokering of defence-related products is either prohibited, or subject to a prior ministerial authorisation. The type of restriction is dependent on the concerned category of defence-related products.

Restrictive measures (either a prohibition, or a prior authorisation) have as well been put in place for brokering services provided to certain countries.

Any application for authorisation shall be submitted to OCEIT using an available application form. The application will be processed within 60 working days from the day the file is complete. The individual authorisation is valid for 1 year, the global authorisation is valid for 3 years, renewable.

Who is concerned

Any broker who:

  • negotiates or organises transactions which may involve the transfer of defence-related products from a third country to another third country; or
  • purchases, sells or transfers defence-related products from a third country to any other third country; or
  • exports defence-related products from the territory of the Grand Duchy of Luxembourg or that of another Member State of the European Union;
  • provides auxiliary services such as:
    • the provision of technical assistance;
    • the activity related to the conclusion of a lease, gift, loan or deposit in relation to the transfer of the concerned products;
    • transportation services;
    • financial, insurance and re-insurance services;
    • general advertising; and
    • promotion.

This concerns:

  • the exercise on the territory of the Grand Duchy of Luxembourg of the brokering activity in relation to defence-related products;
  • any brokering activity in relation to defence-related products where the export of such products is from the territory of the Grand Duchy of Luxembourg or through the territory of the Grand Duchy of Luxembourg;
  • any brokering activity in relation to defence-related products, where the brokering activity is exercised outside the territory of the Grand Duchy of Luxembourg by a broker established on the territory of the Grand Duchy of Luxembourg, who operates from the Grand Duchy of Luxembourg or whose centre of main interests is located in the Grand Duchy of Luxembourg.

Prohibition: Shall be prohibited on the territory of the Grand Duchy of Luxembourg the brokering of defence-related products as mentioned in Article 22 (1), point 2 of the amended law of 27 June 2018 on the control of exports.

Any broker who wishes to provide brokering services to a country in respect of which restrictive measures are in place:

Preliminary steps

Before engaging in any activity of brokering of defence-related products, the broker must obtain the approval issued by the Minister of Economy.

This approval may only be granted to persons who have, for a period exceeding 5 years, an approval issued by the Minister of Justice in accordance with Article 7 of the amended law of 15 March 1983 on arms and ammunition, and which is still valid. The approval is valid 5 years and renewable.

In order to be able to submit the application electronically, the exporter must first make an express request (on free paper or by email) to OCEIT and get their approval.

Deadlines

Authorisations have to be requested and obtained before attempting to or carrying out any action necessary for the brokering operation on the territory of the Grand Duchy of Luxembourg.

Costs

Neither the application for authorisation nor the issuance of the brokering authorisation by OCEIT shall give rise to the levying of any taxes or fees.

How to proceed

Filing an application

The broker shall submit their application for an individual or global authorisation to OCEIT using the application form.

The application is made by mail or electronically (if the broker has previously obtained OCEIT’s approval).

The application (or the declaration) shall be signed by a person authorised to commit the applicant. By this signature, the applicant certifies the accuracy of the information provided in the application and that of the content of any documents attached to it. He/she undertakes as well to provide the goods concerned with a destination in accordance with his/her application.

Supporting documents

The supporting documents to be attached to the application for an individual or global authorisation are the following:

  • detailed explanatory letter of the operation;
  • invoice / pro forma invoice;
  • services / sales agreement;
  • recent extract from RCS (less than 3 months).

Deadlines for reply

Any application for an individual or global authorisation shall be acknowledged by OCEIT.

In case of an incomplete application, the applicant shall be informed of the need to provide additional documents and any consequences for the period for processing the application.

The application for authorisation shall be processed within 60 working days of the day on which the file is complete.

This 60-day period may be extended for a maximum of 30 working days. The extension and its duration shall be duly reasoned and notified by OCEIT before the expiry of the initial period.
In the absence of a reply within the period provided for, the application for authorisation shall be considered as granted.

Validity period

Authorisations shall be valid:

  • 1 year for individual authorisations, renewable for a period of 6 months;
  • 3 years for global authorisations, renewable for a period of 18 months.

Obligations

The broker shall transmit to OCEIT, at the latest 10 working days after the expiry date, the obsolete authorisation which is in his/her possession.

The broker shall report to OCEIT any loss of an authorisation document.

The broker must comply with the special conditions contained in the authorisation.

The broker shall keep a register in which he/she shall record:

  • the brokering transactions effected, without blank or erasure, with mention of:
    • the mark;
    • the code of the Common Military List of the European Union;
    • the description and the serial number, if such a number exists, of the defence-related products; and
    • the name and address of the supplier, intermediary and buyer;
  • the number and date of establishment of the ministerial approval.

The operator shall keep the registers for a period of 10 years from the end of the calendar year in which the transaction took place. The register must be kept at the broker’s registered office or place of establishment, for the duration of his/her activity. He / she shall present them, and provide a copy thereof, to the ministers at their request during that period. When he/she ceases his/her activity, he/she shall give the register to the Minister of Economy.

The broker shall provide, without delay, at the first request of the ministers or OCEIT, the elements and documents necessary to verify the conformity of the operation carried out or foreseen.

Disputes

In the event the authorisation is denied, a legal action may be lodged, by an Avocat à la Cour, against the administrative decision within the period of 3 months from the date of the notification of the administrative decision to the concerned person.

Penalties

A prohibition (limited to 6 months or definite) or another restriction to carry out one or more activities, and/or the suspension for a maximum period of 6 months from the use of a general European Union or national authorisation, or a global authorisation, and/ or a penalty payment (which cannot be higher than EUR 1,250 per day, but cannot exceed EUR 25,000) may be pronounced against anyone who:

  • refuses to provide the documents or other information requested of them by the ministers or OCEIT;
  • provides the ministers or OCEIT with documents or other information that is found to be incomplete or false;
  • provides the ministers or OCEIT with documents or other information that is found to be incomplete or false;
  • does not follow the orders of the ministers or OCEIT.

May be punished by an imprisonment of 5 to 10 years and/or a fine of EUR 25,000 to EUR 1,000,000, anyone who is moving in transit defence-related products without having been granted the required authorisation or without respecting the prohibition applicable to the operation.

May be punished by an imprisonment of 8 days to 5 years and/or a fine of EUR 251 to EUR 250,000 (which may be increased to 4 times the amount of the offense where the offense has resulted in a substantial financial gain), anyone who has failed to comply with a restrictive measure applicable in respect of a certain country.

May be punished by an imprisonment of 6 months to 5 years and/or a fine of EUR 7,500 to EUR 75,000, anyone who:

  • fails to keep the registers or does not keep them during the period of 10 years (starting with the end of the calendar ear during which the operation took place);
  • fails to present the registers at the first request of the ministers;
  • omits, repeatedly or significantly, to fill in one or more of the mandatory information in the registers;
  • provides, in the context of an application for authorisation, information that is false or incomplete;
  • does not fulfil the commitments made in the declarations of use and applications for authorisation submitted to the ministers;
  • fails to provide information within the time limits and in the manner set out.

Review of the file

The ministers may, at any time, withdraw, suspend for a period not exceeding 90 days or restrict the use of the authorisations they have issued.

Such a review may happen in exceptional circumstances justifying urgent measures, for reasons of protection of the essential security interests of the State, for reasons of public order or national or eternal security, such as transport safety, storage safety, the risk of diversion, the prevention of crime, or for non-compliance with the conditions specified in the authorisation.

Forms / Online services

Annexe 19 - Produits liés à la défense - Biens susceptibles d'être utilisés en vue d'infliger la peine capitale, la torture ou d'autres peines ou traitements cruels, inhumains ou dégradants - Biens à double usage - Courtage - Demande d'autorisation

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