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What should we know about dual-use-goods?

Dual-use-goods are products and technologies normally used for civilian purposes but which may have military applications[1]. The topic of dual-use-goods is more than actual considering the initiative of large-scale military and terroristic actions by Azerbaijan across the whole length of Nagorno-Karabakh border. Conditioned by the current situation in Armenia, natural and legal entities may objectively be involved in an activity related to dual-use-goods. Therefore, additional knowledge in this regard would not do any wrong.

The legal relations over the control of dual-use-goods are regulated by the “RA law on control over export of dual-use items, their transit through the Republic of Armenia, and transmission of dual-use information and result of intellectual activity” (Hereinafter “the Law”)[2]. The Law defines dual-use-goods as any item, which is used for civil purposes and according to its characteristics and peculiarities can also be used for military purposes, as well as for developing a weapon of mass destruction and its delivery system thereof.

An example of dual-use item is “unmanned aerial vehicles” or otherwise known as drones. Drones are widely used in Armenia especially for recording celebratory events such as weddings. On the other hand, they are unmanned spies[3] when sent to the territory of an enemy for intelligence tasks. Such use has been well implemented in the recent war escalated by Azerbaijan.

The export of dual-use goods are controlled by the state, whereas the lists of controlled dual-use items are approved by the Government of RA. The lists are based on the international standards. They principally consist of chemical substances such as chlorine. The latter may readily be turned into devastating biological weapon when used for military purposes. 

            Types of Permissions

One should obtain permission to export the controlled items. There are 3 types of permissions.

  1. One-time permission. It gives the right to export only one controlled item.
  2. Individual permission. It is issued for the period not exceeding 5 years, without limitation in a number of the export transactions or exported item and gives the right to export a controlled item to one end-user.
  3. General permission. This one is issued for the period not exceeding 5 years, without limitation in a number of the export transactions or exported item and gives the right to export a controlled item on the specified categories to several end-users.

 

Grounds of Rejection

Permission application is submitted to the Customs Service of RA. The authorized body may reject an application if one of the following grounds is present:

  1. Documents of the exporting entity are incomplete,
  2. Documents of the exporting entity are fake,
  3. The planned export transaction is inconsistent with the purposes stipulated for by the Law (Protection of national security of RA, safeguarding implementation of the undertaken international commitments by RA)

Intangible dual-use-goods

Like material items, information and results of intellectual activity (the controlled intangible values) may be dual-use. Under article 2 of the Law, controlled intangible values are any information, result of intellectual activity, software, which is used for civic purposes and according to their characteristics and peculiarities can also be used for military purposes, as well as for developing a weapon of mass destruction and its delivery system thereof.

For instance, software used for military purposes may have the following capabilities:

  • Radar technology, enemy location and vision;
  • Operations support and centralization (e.g. via CMIS);
  • Armor and vehicle management and other asset management;
  • Tactical communication, military messaging, handsets & other hardware;
  • Aerial technology & aircraft management;
  • Other capabilities.

For the transmission of the controlled intangible values the respective permission is required as well. What needs to be emphasized is for both tangible and intangible dual-use-goods, the types of permissions and the procedure of receiving the latter remain the same by the Law.

Transmission of controlled intangible values without permission leads to criminal liability, if the offender acted intentionally. The sanction for this crime is an imprisonment for the term of 3 to 5 years (Article 240.1. of Criminal Code of RA).

 

[1] European Commission, Trade Topics, Dual Use

[2] https://www.arlis.am/DocumentView.aspx?docid=107520

[3] The unmanned aerial vehicles are also used for bombing by strikes

 

Author: Maykl Hovhannisyan /Associate


Disclaimer:
This material is produced by Legelata LLC. The material contained in this newsletter is
provided for general information purposes only and does not contain a comprehensive
analysis of each item described. Before taking (or not taking) any action, readers should seek
professional advice specific to their situation. No liability is accepted for acts or omissions
taken in reliance upon the contents of this material.

 

 

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