UNIDIR, UNDDA and the Small Arms Survey on Illicit Small Arms Brokering

UNIDIR, UNDDA and the Small Arms Survey on illicit small arms brokering

Responding country: Republic of Lithuania

30 May 2006

General

1. What is the relevant legislation for the control of arms brokering in your country? (please provide copies in English/French, if available.) Law on the Control of Arms and Ammunition (LAC): http://www3.lrs.lt/cgi-bin/preps2?Condition1=175433&Condition2 (English translation of 15 January 2002, amendments to articles 2, 12, 13, 18, 21, 41, 42 available only in Lithuanian http://www3.lrs.lt/pls/inter2/dokpaieska.showdoc_l?p_id=256647).

Law on the Control of Strategic Goods (LEC): http://www3.lrs.lt/pls/inter3/dokpaieska.showdoc_l?p_id=238747 (English translation of 6 April 2006, current edition).

Resolution of the Government of the Republic of Lithuania on the Transportation of Arms and Ammunition: http://www3.lrs.lt/pls/inter3/dokpaieska.showdoc_l?p_id=269897 (specifies the provisions of LAC, Lithuanian only, current edition of 23 January 2006).

Resolution of the Government of the Republic of Lithuania on the Registration of Arms Brokers http://www3.lrs.lt/pls/inter3/dokpaieska.showdoc_l?p_id=211664&p_query=&p_tr2 = (specifies the provisions of LAC, Lithuanian only, current edition of 1 July 2003).

Resolution of the Government of the Republic of Lithuania on the Approval of Licensing Rules for Export, Import and Transit of Strategic Goods and Mediation and the Rules of Implementation for the Control of Strategic Goods: http://www3.lrs.lt/pls/inter2/dokpaieska.showdoc_l?p_id=260881 (specifies the provisions of LEC, English translation of 22 July 2005, current edition).

Resolution of the Government of the Republic of Lithuania on the adoption of the Common Military List: http://www3.lrs.lt/pls/inter2/dokpaieska.showdoc_l?p_id=245017&p_query=&p_tr2= (establishes a list of Military Items based on the EU Common Military List with an additional category ML10.6.2 for dual-use aircrafts, in Lithuanian only, current edition of 8 November 2004).

Licensing of brokering activities in Lithuania was regulated for the first time in 2002 through the Law on the Control of Arms and Ammunition (LAC). Article 25 of the Law contains provisions for brokering activities and obliges brokers to register at the Police department under the Ministry of Interior (Police department). A brokering certificate is then issued to the brokers. Since 1 August 2004 under the new Law on the Control of Strategic Goods (LEC), brokers must posses an individual brokering license from the Ministry of Economy for each individual intermediary deal involving items from the Common List of Military Equipment. Thus, since 1 August 2004 the brokering activity and individual acts of brokering are subject to licensing and control.

1 Brokers of category A goods (heaviest types of arms listed in Article 3 LAC) fall under “double- licencing” requirement i.e. licencing for brokering activity and individual transactions issued by the Ministry of Economy. For the remaining items in the Common list of Military Equipment only a licence for each individual deal, but no activity authorization is required.

Brokers of category B, C and D goods require a brokering certificate and a permit for each individual transfer of weapons of categories B, C and D. The Police department is responsible for issuing these permits.

2. What is the definition of arms brokering/broker in your country? “ Brokering shall mean the negotiations conducted, the arrangement and execution of the transactions by the natural and legal persons resident or registered in the Republic of Lithuania and by subsidiaries of foreign legal persons and other organisations under which the goods included in the Common List of Military Equipment can be transferred outside the territory of the Republic of Lithuania, the territory of another Member State of the European Union or a non- Member state to any other non-Member state.” (Article 3(8) LEC)

3. What type of activities does this definition include (e.g. contract mediation, arrangement/provision of transportation or financing, marketing, etc)? According to national legislation, the definition includes the process of negotiations as well as the arrangement and execution of the transactions. Such activities as transportation, financing or marketing do not fall under the definition.

2 Licensing system 4. Do brokers from your country have to possess a licence to be able to operate? Yes. Brokers are required to register at the Police department under the Ministry of Interior except for activities with Military List items that are not covered by the category A. However, in such cases licence for each individual transaction is required under general rules for the Military List items.

5. What is the scope of the licensing requirement? In particular, is a licence necessary for the following operations: a. Brokering conducted in your country for weapons that are exported from, imported into or in transit through your country. Yes. Permit or licence is required for every transaction. In case of category A weapons and Military list items not covered by category A license is issued by the Ministry of Economy. In cases of Categories B, C, D weapons permits are issued by the Police department under the Ministry of Interior.

b. Brokering conducted in your country with weapons transferred from one third country to another third country. Yes. Brokering licence is required for category A weapons. For B, C, D weapons permits are not required but the brokers must submit annual reports to the Police department. The reports must cover information on all transactions including transfers from one third country to another third country.

c. Brokering conducted abroad by your country’s citizens for operations of export from, import into and transit through your country. Yes. Permit or licence is required for every transaction. In case of category A weapons and Military list items not covered by category A license is issued by the Ministry of Economy. In cases of Categories B, C, D weapons permits are issued by the Police department under the Ministry of Interior.

d. Brokering conducted abroad without the weapons crossing your country’s territory. Lithuania does not exercise its jurisdiction over foreign brokers whose transactions do not involve country’s territory.

6. What types of goods are covered by the licensing requirement? LAC establishes 4 categories of arms – A, B, C and D listed in Articles 3, 4, 5 and 6. Common list of Military Equipment contains all arms listed in category A and additional items.

7. Does this include small arms and light weapons? What type (e.g. military SALW, civilian weapons, etc.)? Yes, see the answer 6.

8. What types of brokering licences can be granted in your country (individual, general)? Only individual licences for each arms transaction on a case-by-case basis are granted. A general licence is not provided.

3 Licensing procedure 9. What types of agents/companies are eligible to apply for a brokering license? An applicant for a brokering licence undergoes close scrutiny, including the checking of accounts, tax payment, shareholders and owners. The LAC defines persons, who would not be accepted for broker’s licence i.e. persons, who are ill with certain diseases or having some physical disabilities, or who are in the records of a health care institution because of alcoholism, drug addiction, mental disease or disorders, as well as those not regarded as having an impeccable reputation.

10. What type of documentation must be included in brokering license applications? Military List licenses: In order to obtain a brokering licence legal or natural person must submit the following documents to the Ministry of Economy: a completed application in the form established by the Ministry of Economy; the certificate of registry of the company or ID documents in the case of natural person; the authorization (licence) to perform activities. In addition, negotiation documents or preliminary agreements or other documents preceding the agreement and the broker’s registration certificate (a copy certified according to the legislation) if the registration in the Police department is required by the LAC. In case of application for the export license end-user certificate issued by the destination country’s agency responsible for national arms circulation control is always required. For brokering licenses end-user certificates may be required upon the decision of the government agencies.

B, C, D category permits In order to obtain a one-time permit the undertaking should provide for the Police department a licence to deal in arms and present a copy of contract and end-user certificate from the competent authority of import state (except in cases of arms of D category). Permits are refused if all the necessary documents are not provided or if it is considered necessary to ensure safety of human, society and state.

11. Which government agency oversees the issuing of brokering licences? Military List licenses: In accordance with national legislation the Ministry of Economy is responsible for brokering controls over dual-use goods and military equipment and implementation of administration of the export control system in cooperation with other Lithuanian state institutions. Within the Ministry of Economy the Division of Export Control of Strategic Goods is authorised to administer the referred activities.

B, C, D category permits Police Department under the Ministry of Interior.

12. Besides the issuing body, what other government agencies/departments are involved in decisions on brokering license applications? (Please explain their role) Military List licenses: Different national institutions, such as the Ministry of Environment, the Ministry of National Defence, the Ministry of Transport and Communications, the Ministry of Health, the Ministry of Foreign Affairs, the Police Department under the Ministry of the Interior, the State Security Department, the Customs Department under the Ministry of Finance, the State Nuclear Power Safety Inspectorate, the State Food and Veterinary Service, the Information Society Development Committee under the Government of the Republic of Lithuania, and the Weaponry Fund of the Republic of Lithuania under the Government of the Republic of Lithuania, are involved in decisions on brokering licence applications. The Ministry of Foreign Affairs, in coordination with other public authorities, is responsible for national position regarding international non- proliferation regimes and assesses the compliance of the submitted applications for licences with 4 the criteria of the European Union Code of Conduct on Arms Export. The brokering licence may be issued on the basis of positive conclusions of the public authorities. Upon the proposal of the public authority, that received the documents for the conclusions from the Ministry of Economy, a meeting of the Commission on the Issues of Licensing of Export, Import, Transit and Brokering of Strategic Goods (Commission) is held where issuance of a licence is considered. If a negative conclusion is received from at least one authority, the question of licence issuance is also considered at a Commission meeting.

B, C, D category permits Permits are issued by the Police department under the Ministry of the Interior, after consultation with the Weaponry Fund under the Government of Lithuania.

13. Are there any specific criteria that government agencies use to decide on brokering licence applications? No specific criteria on brokering licence applications. The same criteria as for export, import, transit licence applications apply.

5 Licensing practice 14. On average, how many brokering license applications does the relevant agency process in one year? Ministry of Economy – approx. 12. Police Department – no applications for one-time brokering permits were received.

15. How many licenses were granted in the last five years? (if applicable, otherwise since controls have been established) Ministry of Economy – 19 (1 May 2004 – 31 December 2005). Police Department – no applications for one-time brokering permits were received.

16. Do any of the granted licenses relate to brokering conducted abroad? No

17. Do any of the granted licenses relate to the transfer of SALW alone? No Registration/State records 18. Do brokers from your country have to register with national authorities? Yes. Brokers are required to register at the Police department under the Ministry of Interior except for activities with Military List items that are not covered by the category A. However, in such cases licence for each individual transaction is required under general rules for the Military List items.

19. Is this registration a prerequisite for them to be able to apply for a license? Yes.

20. Does your country maintain records on granted licenses? Yes, permanently.

21. Does your country keep records of denied/revoked licenses? Yes.

22. For how long are these records kept? (If applicable) 5 years.

23. Are these records shared with any other national agency? The records are not classified and are shared upon the request of the governmental agency.

24. Are they shared with foreign licensing offices, or intergovernmental bodies? Yes. The records are shared according to the information exchange requirements of European Code of Conduct on Arms Exports, international export control regimes (e.g. Wassenaar Arrangement) or upon the individual request of the foreign country.

6 Record-keeping by the broker

25. Do brokers from your country have an obligation to keep records of their transactions? Brokers are required to keep records of their transactions for 10 years after the last record therein.

26. If so, what information must these records include, and for how long must these records be kept? The records must include the following information: names, codes and addresses of the parties of the transactions, as well as quantities and types of arms and ammunition involved.

27. Do brokers from your country have to report periodically to national authorities? Under the LAC brokers must annually report to the Police department. Upon request Ministry of Economy.

7 Implementation

28. Does brokering legislation in your country include penalties for violators? Yes. Penal sanctions are provided in Article 253(1) of the Penal Code, which stipulates that brokering for transfer of military equipment into the country outside the European Union without the required permit is punishable by prohibition to engage into certain kind of work or activities, fine or imprisonment for up to 3 years. According to the abovementioned article and Article 43 of the Penal Code legal entity can be sanctioned by a fine, restriction on the activities or coercive liquidation.

Administrative sanctions are applied for a broker, who violates the rules of arms trade, arms record keeping or order of arms storage or carrying. Fine of up to 600 LTL and possible confiscation of arms are foreseen (Code of Administrative offences, Articles 165, 196 and 196(1)), as well as revocation of broker’s registration.

29. Does it provide for either or both criminal and administrative penalties? If so, please describe either or both. Both criminal and administrative penalties are foreseen. See the answer 28.

8 Administration & Enforcement

30. Which agencies of your government are responsible for the administration and enforcement of your country’s law on the arms trade? Please explain their role Military List licences: According to LEC the Ministry of Economy is in charge of the control of import of military equipment in conjunction with other State institutions and agencies in accordance with the procedure laid down by this Law and other legal acts. Article 6 of the Law states, that "Export, import and transit of the goods included in the Common List of Military Equipment or mediation related thereto shall be subject to a licence for export, import, transit or brokering. The licences shall be issued by the Ministry of Economy". Article 6(4) allows for exceptions and states: "Import of the goods included in the Common List of Military Equipment, where the goods are imported by the Ministry of National Defence of the Republic of Lithuania or the Weaponry Fund under the Government of the Republic of Lithuania, shall not be subject to a licence of the Ministry of Economy". Various other government bodies participate in administration of arms trade through the Commission on the Issues of Licensing of Export, Import, Transit and Brokering of Strategic Goods (see further question 12)

B, C, D category permits For the export and brokering of the arms and ammunition falling under categories B, C and D LAC applies. Article 23(4) states that the entity, which wishes to import, export or transport arms in Categories B, C and D, ammunition, their parts in transit through the territory of the Republic of Lithuania, must obtain a one time permit for each consignment of arms, ammunition, their parts. Such permits shall be issued by the Police department under the Ministry of the Interior, after consultation with the Weaponry Fund. Permits are issued only for undertakings, which have Police department licence to deal in arms and present a copy of contract and end- user certificate from the competent authority of import state (except in cases of arms of D category). Single permits will not be issued: if undertaking will not present necessary documents; if necessary to ensure safety of human, society and state.

Transit licences: In accordance with legislation of the Republic of Lithuania the transit licence for arms under the category A and their ammunition must be obtained from the Ministry of Defence. The military transit through the Republic of Lithuania is regulated by the Resolution of the Government of the Republic of Lithuania No.691 of 19 June 2000 on Transit of Military Goods through the territory of Republic of Lithuania. Transit permits for the arms and ammunition under categories B, C and D are issued only for undertakings, which have the licence from Police department to deal with arms. They must present the copy of contract and the copy of import license from competent authority of import state.

Other licensed activities: In accordance with the legislation of the Republic of Lithuania such activities as production, reparation, recast of arms, their parts and ammunition is a subject of licensing from the Weaponry fund under the Government of Republic of Lithuania. Licences are issued for an unlimited time period.

31. Please provide statistics regarding the activities of the enforcement agencies as below:  number of violations of your legal provisions on arms brokering since 1990 or since your law covering arms brokering has entered into force No cases reported. 9  number of cases brought to trial No cases reported.  number of cases successfully prosecuted and penalties imposed No cases reported.

32. How do these agencies share information about violations, investigations, arrests and prosecutions? Is there a central repository or a common database for these agencies to access such information? Government agencies exchange information within the framework of the Commission on the Issues of Licensing of Export, Import, Transit and Brokering of Strategic Goods. All intelligence and investigations services exchange information about investigations and operation activities through the database of intelligence (operational) information.

33. Have these agencies participated in international efforts resulting in investigations, apprehension, and prosecution of arms brokering violations? No public information available.

10 International Sanctions

34. Does your country implement a U.N. arms embargo by direct legislation If yes, please cite such laws and other pertinent documents. Law on the Implementation of the Economic and Other International Sanctions (LIS) (http://www3.lrs.lt/pls/inter2/dokpaieska.showdoc_l?p_id=256251, current edition in English) ensures implementation of international sanctions and EU common security and foreign policy, in order to promote peace keeping in the world, to combat against terrorism, violations of human rights.

Resolution of the Government of the Republic of Lithuania on the Approval of the List of the States to Which the Export or Transit of the Goods Listed in the Common Military List is Prohibited and for which Brokering in Negotiations and Transactions in the Goods Listed in the Common Military List is Prohibited (List of States for which arms embargoes are applied, http://www3.lrs.lt/pls/inter2/dokpaieska.showdoc_l?p_id=265237, edition in English of 1 March 2005, later amendments include adding Uzbekistan and deleting Bosnia and Herzegovina)

Articles 3 and 5 LIS allow direct implementation of UN arms embargo legislation. However, in practise UN Security Council resolutions imposing arms embargoes are followed by identical EU Common Positions, which are then implemented by the national legislation.

35. If not, does your country implement a U.N. arms embargo by means of more general export control legislation?

11 Capacity Building

36. Does your country have the capacity to effectively enforce arms trade controls at key entry points, such as land crossing points, airports, or sea, lake or river ports relatively well? Lithuanian border crossing points are sufficiently equipped to effectively enforce arms trade controls.

37. If not, what support would key enforcement agencies need in order to increase their effectiveness? Please list in order of priority. Currently no such support is required.

38. Does your country provide any specific training or cooperative assistance to enforcement agencies of foreign countries to prevent, investigate, and combat the illicit trafficking in weapons by brokers? If yes, please describe any form of assistance, training, and financial resources allocated to this purpose. Currently no such training is provided.

For any further information please contact:

Ms Rimgaile Karciauskaite Arms Control, Non-Proliferation and Disarmament Division Security Policy Department Ministry of Foreign Affairs

Tel. +370 5 236 2522 Fax +370 5 236 2519 e-mail: [email protected]