This document is the European Union Code of Conduct for ArmsExports as adopted on 8-9 June 1998.

EU Code of Conduct for Arms Exports
List of criteria
Operative provisions
Annex
 
The Council of the European Union,
BUILDING on the Common Criteria agreed at the Luxembourg andLisbon European Councils in 1991 and 1992,
RECOGNISING the special responsibility of arms exportingstates,
DETERMINED to set high common standards which should be regardedas the minimum for the management of, and restraint in, conventionalarms transfers by all EU Member States, and to strengthen theexchange of relevant information with a view to achieving greatertransparency,
DETERMINED to prevent the export of equipment which might be usedfor internal repression or international aggression, or contribute toregional instability,
WISHING within the framework of the CFSP to reinforce theircooperation and to promote their convergence in the field ofconventional arms exports,
NOTING complementary measures taken by the EU against illicittransfers, in the form of the EU Programme for Preventing andCombating Illicit Trafficking in Conventional Arms,
ACKNOWLEDGING the wish of EU Member States to maintain a defenceindustry as part of their industrial base as well as their defenceeffort,
RECOGNISING that states have a right to transfer the means ofself-defence, consistent with the right of self-defence recognised bythe UN Charter,
have adopted the following Code of Conduct and operativeprovisions:

CRITERION ONE
Respect for the international commitments of EU member states, inparticular the sanctions decreed by the UN Security Council and thosedecreed by the Community, agreements on non-proliferation and othersubjects, as well as other international obligations
An export licence should be refused if approval would beinconsistent with, inter alia:&emdash;
a) the international obligations of member states and their commitments to enforce UN, OSCE and EU arms embargoes;

b) the international obligations of member states under the Nuclear Non-Proliferation Treaty, the Biological and Toxin Weapons Convention and the Chemical Weapons Convention;

c) their commitments in the frameworks of the Australia Group, the Missile Technology Control Regime, the Nuclear Suppliers Group and the Wassenaar Arrangement;

d) their commitment not to export any form of anti-personnel landmine.
 
CRITERION TWO
The respect of human rights in the country of finaldestination
Having assessed the recipient country's attitude towards relevantprinciples established by international human rights instruments,Member States will:&emdash;
a) not issue an export licence if there is a clear risk that the proposed export might be used for internal repression;

b) exercise special caution and vigilance in issuing licences, on a case-by-case basis and taking account of the nature of the equipment, to countries where serious violations of human rights have been established by the competent bodies of the UN, the Council of Europe or by the EU.
For these purposes, equipment which might be used for internalrepression will include, inter alia, equipment where there isevidence of the use of this or similar equipment for internalrepression by the proposed end-user, or where there is reason tobelieve that the equipment will be diverted from its stated end-useor end-user and used for internal repression. In line with operativeparagraph 1 of this Code, the nature of the equipment will beconsidered carefully, particularly if it is intended for internalsecurity purposes. Internal repression includes, inter alia, tortureand other cruel, inhuman and degrading treatment or punishment,summary or arbitrary executions, disappearances, arbitrary detentionsand other major violations of human rights and fundamental freedomsas set out in relevant international human rights instruments,including the Universal Declaration on Human Rights and theInternational Covenant on Civil and Political Rights.
 
CRITERION THREE
The internal situation in the country of final destination, as afunction of the existence of tensions or armed conflicts
Member States will not allow exports which would provoke orprolong armed conflicts or aggravate existing tensions or conflictsin the country of final destination.
 
CRITERION FOUR
Preservation of regional peace, security and stability
Member States will not issue an export licence if there is a clearrisk that the intended recipient would use the proposed exportaggressively against another country or to assert by force aterritorial claim.
When considering these risks, EU Member States will take intoaccount inter alia:&emdash;
a) the existence or likelihood of armed conflict between the recipient and another country;

b) a claim against the territory of a neighbouring country which the recipient has in the past tried or threatened to pursue by means of force;

c) whether the equipment would be likely to be used other than for the legitimate national security and defence of the recipient;

d) the need not to affect adversely regional stability in any significant way.
 
CRITERION FIVE
The national security of the member states and of territorieswhose external relations are the responsibility of a Member State, aswell as that of friendly and allied countries
Member States will take into account:&emdash;
a) the potential effect of the proposed export on their defence and security interests and those of friends, allies and other member states, while recognising that this factor cannot affect consideration of the criteria on respect of human rights and on regional peace, security and stability;

b) the risk of use of the goods concerned against their forces or those of friends, allies or other member states;

c) the risk of reverse engineering or unintended technology transfer.
 
CRITERION SIX
The behaviour of the buyer country with regard to theinternational community, as regards in particular to its attitude toterrorism, the nature of its alliances and respect for internationallaw
Member States will take into account inter alia the record of thebuyer country with regard to:&emdash;
a) its support or encouragement of terrorism and international organised crime;

b) its compliance with its international commitments, in particular on the non-use of force, including under international humanitarian law applicable to international and non-international conflicts;

c) its commitment to non-proliferation and other areas of arms control and disarmament, in particular the signature, ratification and implementation of relevant arms control and disarmament conventions referred to in sub-paragraph b) of Criterion One.
 
CRITERION SEVEN
The existence of a risk that the equipment will be divertedwithin the buyer country or re-exported under undesirableconditions
In assessing the impact of the proposed export on the importingcountry and the risk that exported goods might be diverted to anundesirable end-user, the following will be considered:&emdash;
a) the legitimate defence and domestic security interests of the recipient country, including any involvement in UN or other peace-keeping activity;

b) the technical capability of the recipient country to use the equipment;

c) the capability of the recipient country to exert effective export controls;

d) the risk of the arms being re-exported or diverted to terrorist organisations (anti-terrorist equipment would need particularly careful consideration in this context).
 
CRITERION EIGHT
The compatibility of the arms exports with the technical andeconomic capacity of the recipient country, taking into account thedesirability that states should achieve their legitimate needs ofsecurity and defence with the least diversion for armaments of humanand economic resources
Member States will take into account, in the light of informationfrom relevant sources such as UNDP, World Bank, IMF and OECD reports,whether the proposed export would seriously hamper the sustainabledevelopment of the recipient country. They will consider in thiscontext the recipient country's relative levels of military andsocial expenditure, taking into account also any EU or bilateralaid.
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OPERATIVE PROVISIONS
1. Each EU Member State will assess export licence applicationsfor military equipment made to it on a case-by-case basis against theprovisions of the Code of Conduct.
2. This Code will not infringe on the right of Member States tooperate more restrictive national policies.
3. EU Member States will circulate through diplomatic channelsdetails of licences refused in accordance with the Code of Conductfor military equipment together with an explanation of why thelicence has been refused. The details to be notified are set out inthe form of a draft pro-forma at Annex A. Before any Member Stategrants a licence which has been denied by another Member State orStates for an essentially identical transaction within the last threeyears, it will first consult the Member State or States which issuedthe denial(s). If following consultations, the Member Statenevertheless decides to grant a licence, it will notify the MemberState or States issuing the denial(s), giving a detailed explanationof its reasoning.
The decision to transfer or deny the transfer of any item ofmilitary equipment will remain at the national discretion of eachMember State. A denial of a licence is understood to take place whenthe member state has refused to authorise the actual sale or physicalexport of the item of military equipment concerned, where a salewould otherwise have come about, or the conclusion of the relevantcontract. For these purposes, a notifiable denial may, in accordancewith national procedures, include denial of permission to startnegotiations or a negative response to a formal initial enquiry abouta specific order.
4. EU Member States will keep such denials and consultationsconfidential and not to use them for commercial advantage.
5. EU Member States will work for the early adoption of a commonlist of military equipment covered by the Code, based on similarnational and international lists. Until then, the Code will operateon the basis of national control lists incorporating whereappropriate elements from relevant international lists.
6. The criteria in this Code and the consultation procedureprovided for by paragraph 2 of the operative provisions will alsoapply to dual-use goods as specified in Annex 1 of Council Decision94/942/CFSP as amended, where there are grounds for believing thatthe end-user of such goods will be the armed forces or internalsecurity forces or similar entities in the recipient country.
7. In order to maximise the efficiency of this Code, EU MemberStates will work within the framework of the CFSP to reinforce theircooperation and to promote their convergence in the field ofconventional arms exports.
8. Each EU Member State will circulate to other EU Partners inconfidence an annual report on its defence exports and on itsimplementation of the Code. These reports will be discussed at anannual meeting held within the framework of the CFSP. The meetingwill also review the operation of the Code, identify any improvementswhich need to be made and submit to the Council a consolidatedreport, based on contributions from Member States.
9. EU Member States will, as appropriate, assess jointly throughthe CFSP framework the situation of potential or actual recipients ofarms exports from EU Member States, in the light of the principlesand criteria of the Code of Conduct.
10. It is recognised that Member States, where appropriate, mayalso take into account the effect of proposed exports on theireconomic, social, commercial and industrial interests, but that thesefactors will not affect the application of the above criteria.
11. EU Member States will use their best endeavours to encourageother arms exporting states to subscribe to the principles of thisCode of Conduct.
12. This Code of Conduct and the operative provisions will replaceany previous elaboration of the 1991 and 1992 Common Criteria.
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ANNEX A
________________ (name of Member State) has the honour toinform partners of the following denial under the EU Code ofConduct:
Destinationcountry: _____________________________________________________
Short description of equipment, including quantity and whereappropriate, technicalspecifications: __________________________________________________
Proposedconsignee: ______________________________________________________
Proposed end-user (ifdifferent): ___________________________________________
Reason forrefusal: _______________________________________________________
Date ofdenial: ___________________________________________________________
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