Issuance of a Special Permit (Licence) for Commercial Activities with the Goods Referred to in the Common Military List of the European Union

Individual merchants or commercial companies registered in the Republic of Latvia are entitled to receive a special permit (licence) issued by the Ministry of Defence for commercial activities with the goods specified in the Common Military List of the European Union if their shareholders (natural persons), except for stockholders whose participation in the equity capital of the company is less than 10 per cent of the equity capital of the company, beneficial owners, procuration holders, heads, and persons that hold office in administrative bodies, and also employees who are directly related to the manufacture, repair, distribution, storage, transportation of the military goods referred to in the Common Military List of the European Union, the provision of services or guarding related thereto, conform to the following requirements:

1) they are citizens of the Republic of Latvia, citizens of a European Union Member State, citizens of a country of the European Economic Area, citizens of a North Atlantic Treaty Organisation member country, or citizens of a country not mentioned above if they have obtained the permission of the Cabinet and they have attained the age of at least 21 years;
2) they have not been punished for committing an intentional criminal offence - at least one year after a conviction being extinguished or removed;
3) a psychiatrist's opinion that they have not been diagnosed with mental disorders is available;
4) a narcologist's opinion that they have not been diagnosed with addiction to alcohol, narcotic, psychotropic, or toxic substances is available;
5) they have not been subject to administrative penalties for violations committed under the influence of alcohol, narcotic, psychotropic, toxic or other intoxicating substances and also have not been subject to administrative penalties for violations of the rules of acquisition, possession, and carrying of weapons and ammunition - until a year has passed after enforcement of the administrative penalty;
6) there is no information at the disposal of the State security institutions that their activities are directed against State security, related to organised crime or other criminally punishable activities, and also there is no information that would attest to their affiliation to prohibited military or armed groups, public organisations (parties) or the unions thereof, or religious organisations whose activities are directed against State security;
7) they have not been convicted, even if the criminal record has been extinguished or removed, for the criminal offences referred to in Chapters IX, IX.1, X, Sections 116, 117, 118, Section 175, Paragraph four (theft of narcotic, psychotropic, powerfully acting, toxic or radioactive substances, or explosives, firearms or ammunition), Section 176, Paragraph three (robbery of narcotic, psychotropic, powerfully acting, poisonous or radioactive substances, or explosive substances, firearms or ammunition), Section 176, Paragraph four (robbery if it has been committed using firearms or explosives), Section 177, Paragraph three (fraud if it has been committed, acquiring narcotic, psychotropic, powerfully acting, poisonous or radioactive substances or explosive substances, firearms or ammunition), Section 179, Paragraph three (misappropriation of narcotic, psychotropic, powerfully acting, poisonous or radioactive substances or explosive substances, firearms or ammunition), and Sections 233, 234, 236, and 237 of the Criminal Law;
8) they have not been released from criminal liability in accordance with Section 58 of the Criminal Law for committing an intentional criminal offence - until a year has passed after entering into effect of the relevant decision;
9) they have not been conditionally released from criminal liability in accordance with Section 58.1 of the Criminal Law for committing an intentional criminal offence - before the end of the probationary period;
10) they have not been released from punishment or serving a sentence in accordance with Section 59 of the Criminal Law for committing an intentional criminal offence - until a year has passed after entering into effect of the decision to release from punishment or from serving the sentence.

For what period of time is the licence issued?
Licence is issued for an indefinite period of time.

What is the procedure for recieving special permit (licence)?
Procedure for recieving lincence is defined by Republic of Latvia Cabinet Regulation No. 331, Adopted 8 May 2012 "Procedures for the Issuance of a Special Permit (Licence) for Commercial Activities with the Goods Referred to in the Common Military List of the European Union". In order to receive a special permit (licence), a merchant shall submit an application to the licensing commission for receipt of a special permit (licence) (Cabinet Regulation No. 331, Adopted 8 May 2012, Annex 1) and the following documents:

3.1. a document certifying that such premises belong to or are in the possession or use of the merchant, in which the merchant will store the goods referred to in the Common Military List of the European Union (hereinafter - goods of strategic significance) during the transfer, export, or import process, or that the merchant has entered into a storage contract for such purpose;
3.2. the plan of such premises, in which the merchant will store goods of strategic significance, including also plan of such premises, in which the merchant will store goods of strategic significance on the basis of a storage contract (hereinafter - storage facility);
3.3. a document certifying that the storage facility is equipped with an alarm and the alarm is connected to the central alarm panel;
3.4. a list, in which participants of the merchant - natural persons (except stakeholders whose participation in the equity capital of the company is less than 10 per cent of the equity capital of the company), procuration holders, managers, and persons holding positions in administrative institutions, as well as such employees of the merchant who are directly related to the manufacture, repair, selling, storage, transportation, guarding of goods of strategic significance or provision of relevant services are indicated (the position and personal identity number of each person shall be indicated). Certified copies of employment contracts shall be submitted in relation to employees. An opinion of a psychiatrist and narcologist shall be submitted regarding health condition of each person referred to in the list, in conformity with Paragraphs 4 and 5 of this Regulation;
4. An opinion of a psychiatrist and narcologist regarding the health condition of a person shall be valid for submission to the licensing commission for 90 days from the date of issuance thereof or until the date indicated in the opinion when the regular health examination must be performed.

What are requirements for storage units?

What are requirement for commercial handling of ML21?
For commercial handling of goods associated with Common Military List of the European Union Group ML21 (software), all normative acts related to the domain should be followed, including:
National Law on Cybersecurity: https://likumi.lv/ta/id/353390-nacionalas-kiberdrosibas-likums
Information categorized as an official secret can only be processed by information system registered and approved with procedure defined by The Constitution Protection Bureau.

What are duties of Individual merchants or commercial companies who have received Special Permit (Licence)?
Each year Individual merchants or commercial companies who have received Special Permit (Licence) should prepare a report about previous year and submit until January 31st to the Comitee of Licence Issuance, sending it through physical or electronic mail.
If participants of the merchant - natural persons (except stakeholders whose participation in the equity capital of the company is less than 10 per cent of the equity capital of the company), procuration holders, managers, and persons holding positions in administrative institutions - have changed, the merchant shall make amendments to the list referred to in Sub-paragraph 3.4 of this Regulation and, within three working days after changes, shall submit the documents referred to in Sub-paragraph 3.4 of this Regulation regarding the new participants to the licensing commission. The licensing commission shall verify the conformity of the information provided by the merchant with the requirements laid down in Section 5, Paragraph four of the Law On the Circulation of Goods of Strategic Significance

Where should the documents for receiving the special permit (licence) be turned in?
Documents should be turned in to Ministry of Defence Comitee of Licence Issuance (Address: K. Valdemāra 10/12, Riga, LV-1473) or by sending them in an electronic form to the official e-mail.
To receive answers about related questions, please contact us by the following e-mail or telephone number: licences@mod.gov.lv  , 67335233.