Guidance document on authorisation-required agreements

This guidance is meant to provide support to the Swedish Security and Defence Industry Association’s (SOFF)
member companies and to facilitate a decision to determine if an agreement require authorisation from the
Swedish Inspectorate of Strategic Products (ISP) before it enters into force.
The content in this document is not static and may change over time. This guidance is not intended to
be comprehensive and does not constitute legal advice. For advice and assessment in individual cases,
companies are encouraged to seek legal advice.

Agreement requiring authorisation
Entering into certain development, manufacturing or support agreements relating to military products with a
foreign party require authorisation. Whether a company actually contribute under the agreement is irrelevant
according to the ISP.
The company must either condition the agreement so that it does not enter into force before receiving ISP
authorisation or obtain ISP authorisation before signing.

Determine if an authorisation is required prior to entering into agreements
Unless an exemption applies, the company must obtain prior authorisation before entering into any
agreements that encompass any of the following:

Determine if an exemption apply
An exemption may apply for the following types of agreements:

• Supplier agreements where the company grants a foreign supplier a right to manufacture military
  components only on behalf of, and with delivery to, the company.
• Supplier agreements to mutually, or by themselves, develop or manufacture military components only on
  behalf of, and with delivery to, the company.
• Support agreements that do not aim to develop or manufacture a military product where the company only
  will provide technology for installation, operation, maintenance (checking) or repair of military products where
  the company originally exported the products under an authorisation to the foreign party.
• Development agreements that do not aim to develop or manufacture a military product where the
  company will only provide technology that is “in the public domain”, that constitute “basic scientific research”
  (up to, and including, Technical Readiness Level 2) or the minimum information necessary for patent
  applications. (See Annex 1).
• Agreements that do not aim to develop or manufacture military products but include modification of
  military products where the modifications or adaptations will not significantly increase the performance of the
  product and no technology will be provided and no other control criteria is fulfilled.
• Agreements to buy or sell military products that do not aim to develop or manufacture military products
  where the company will obtain an export license and will only provide controlled technology minimally
  required for installation, operation, maintenance (checking) or repair of the product under the future export
  license.
  All other agreements in which the company will provide military technology require prior authorisation.
  This includes agreements where the company provide technology for installation, operation, maintenance
  (checking) or repair of military products if the company was not the original exporter of the product to the
  recipient.

Determine if agreement amendments require authorisation
Below listed agreement amendments also require prior authorisation from ISP.

• Agreements that grant a foreign party any form of right to manufacture export controlled military
  products.
• Agreements with a foreign party to provide export controlled military technology (see sub-chapter 2.4 and
  Annex 1).
• Agreements with a foreign party to mutually, or on behalf of the foreign party, develop export controlled
  military products.
• Agreements with a foreign party to mutually, or on behalf of the foreign party, manufacture export
  controlled military products.
• Agreements with a foreign party to mutually, or on behalf of the foreign party, develop or provide
  manufacturing methodology.

• Amendments of non-controlled agreements that becomes controlled.
• Change of military material or technology that the agreement covers.
• Change of ownership, sub-licensing or granting of rights to other parties.
• Change of customer, authorised parties, recipients or end-users.
• Change of agreement duration.

Export controlled military technology

The following technology (see definitions in Annex 1) is export controlled. “Technology” “Required” for the:

• “Development”,
• “Production”,
• operation,
• installation,
• maintenance (checking),
• repair,
• overhaul, or
• refurbishing of military equipment (listed in the military control list)

Decision rationale
The company should record the rationale when an exemption has been used. The record shall be kept easily
accessible together with other business documents.