REGULATION

							                                                                                                     1


     ICELANDIC MINISTRY FOR FOREIGN AFFAIRS

     Unofficial translation

                                               REGULATION
                  on Control of Services and Items that may have Strategic Significance
                                               No 800/2011

                                                  Article 1
                                            General Provisions
       The present Regulation sets more detailed provisions with respect to enforcement of Act No
58/2010 on Control of Services and Items that may have Strategic Significance. The Regulation
includes provisions on control of dual-use items and defence-related products, as well as their
brokering, consistent with international obligations and/or which Icelandic authorities have decided
to enforce on the basis of the declaration of the governments of the member states of the
European Union and the European Free Trade Association on political dialogue, which forms an
integral part of the Agreement on the European Economic Area, cf. Act No 2/1993.

                                                 Article 2
                                         Export of Dual-Use Items
       Council Regulation (EC) No 428/2009 of 5 May 2009 setting up a Community regime for the
control of exports, transfer, brokering and transit of dual-use items shall enter into force in Iceland
together with the adjustment referred to in paragraph 2 and the adaptations referred to in Article
4. The said Regulation is published as Attachment 1 to the present Regulation together with Annex
I-VI thereto:
a) Annex I (List referred to in Article 3 of this Regulation);
b) Annex II (Community General Export Authorisation No EU001) (referred to in Article 9 of this
       Regulation);
c)     Annex IIIa (model for individual or global export authorisation forms) (referred to in
       Article 14(1) of this Regulation);
d) Annex IIIb (model for brokering services authorisation forms) (referred to in Article 14(1) of
       this Regulation);
e) Annex IIIc (Common Elements for Publication of National General Export Authorisations in
       National Official Journals) (referred to in Article 9(4)(b) of this Regulation);
f)     Annex IV (List referred to in Article 22(1) of this Regulation);
g) Annex V (Repealed Regulation with its successive Amendments);
h) Annex VI (Correlation Table).
     No one may export dual-use items without an authorisation issued by the Minister. A list of
such items is published in Annex I to the Council Regulation referred to in paragraph 1, which has
been updated as of 27 September 2010 (COM(2010) 509 final).


                                                Article 3
                                   Export of Defence-Related Products
      Directive 2009/43/EC of the European Parliament and of the Council of 6 May 2009
simplifying terms and conditions of transfers of defence-related products within the Community
shall enter into force in Iceland on 30 June 2012, together with the adjustment referred to in
paragraph 2 and the adaptations referred to in Article 4, and shall apply to exports of defence-
                                                                                                    2


related products to the member states of the European Economic Area as appropriate. The
Directive is published as Attachment 2 to the present Regulation together with the Annex thereto
(List of Defence-Related Products).
       No one may export defence-related products without an authorisation issued by the Minister.
A list of such products is published in the Annex to the Directive referred to in paragraph 1 which
has been updated as of 21 February 2011 (Common Military List of the European Union, 2011/C
86/01 ) and enters into force forthwith.
       The provisions of Council Common Position 2008/944/CFSP of 8 December 2008 defining
common rules governing control of exports of military technology and equipment shall apply
exports of defence-related products, mutatis mutandis, including the conditions for granting export
authorisations pursuant to Article 2 thereto.
       On granting export authorisations pursuant to paragraph 1, actions decided on the basis of
Act No 93/2008 on Implementation of International Restrictive Measures shall be taken into
account.

                                                  Article 4
                                                Adaptations
     Acts cf. Articles 2 and 3 shall be adapted as follows:
a)   provisions pertaining to nationals, individuals, firms, central public authorities, governmental
     agencies, languages, territory or Member States of the European Union (“EC”, “EU”,
     “Community”, or “Common Market”) shall be regarded as referring to Icelandic nationals,
     individuals, firms, central public authorities, governmental agencies, language, territory or
     Iceland itself, as appropriate;
b)   provisions pertaining to notifications or records submitted to EU Member States or its
     agencies shall not have effect. The same applies to provisions with respect to entry into force
     or the time of enforcement of the acts in question;
c)   references to acts which form an integral part of the Agreement on the European Economic
     Area (EEA Agreement) shall be regarded as referring to provisions of Icelandic law by which
     the said acts are implemented, as appropriate;
d)   references to acts which do not form an integral part of the EEA Agreement shall be regarded
     as referring to parallel provisions of Icelandic law, as appropriate, including provisions of the
     Customs Act No 88/2005;
e)   the website with information on competent central authorities in Iceland is the following:
     www.utn.is/utflutningseftirlit;
f)   „transfer“ from one country to another corresponds to „exports“ with regard to Iceland.

                                                  Article 5
                                             Brokering Services
      No one may supply brokering services with regard to defence-related products, which are
specified pursuant to Article 3(2), without an authorisation issued by the Minister.

                                               Article 6
                                                Imports
      No one may, without an authorisation granted by the Minister, import into or allow transit in
Iceland of items that can be utilised, in whole or in part, in connection with development,
production, handling, operation, maintenance, storage, detection, identification or dissemination of
chemical, biological or nuclear weapons, or of other nuclear explosive devices, or in connection
with the development, production, maintenance or storage of missiles capable of delivering such
weapons.
                                                                                                    3



                                               Article 7
                                               Missiles
      No one may, without an authorisation granted by the Minister, launch a missile weighing 500
kilogrammes or more and having a range of 300 kilometres or more.

                                          Article 8
                                        Assignment
     Assignment of authorisation under the present Regulation is prohibited without an
authorisation granted by the Minister.

                                                   Article 9
                                                 Exemptions
     The Minister for Foreign Affairs may grant exemptions from a ban imposed in accordance with
the present Regulation on reasonable grounds.
     The following dual-use items and defence-related products are exempted from authorisation
requirements under the present Regulation:
a) products belonging to a foreign party and returned to a foreign country after being
     temporarily imported in connection with tests, exhibitions, teaching or public training
     exercises;
b) life-saving items and equipment exported in connection with relief or emergency operations;
c)   weapons subject to export authorisation under the Weapons Act No 16/1998;
d) products solely in direct transit through Icelandic customs territory, when the consignor and
     the consignee are situated outside Icelandic customs territory;
e) products, technology and services for use on board ships owned by Icelandic parties and flying
     the Icelandic flag, and on board aircraft in international flights owned by Icelandic parties;
f)   exports by Icelandic public authorities, provided that legal ownership is not transferred and
     that the products or services exported are used by Icelandic public authorities abroad or
     provided that the consignee is a public authority in a NATO or EU Member State.

                                               Article 10
                                               Sanctions
      Anyone violating the provisions of the present Regulation shall by subject to penalties in
accordance with Article 13 of the Act on the Control of Services and Items that may have Strategic
Significance, No 58/2010, unless more severe penalties apply pursuant to other laws.

                                                 Article 11
                                            Entry into force, etc.
       The present Regulation, which is adopted under authorisation in Article 14 of Act No 58/2010
on the Control of Services and Items that may have Strategic Significance, shall enter into force on 1
September 2011. At the same time, Regulation No 70/1993 on Export Authorisations etc. is
repealed together with subsequent amendments.
       The provisions of the present Regulation shall apply to applications submitted before the date
of its entry into force but not finalised.

                                  _______________________________