SWEDEN Law and Practice Contributed by: Annika Blomqvist, Sanna Frånlund, Henrik Lindstrand and Viktor Eriksson, Advokatfirman Cederquist
1.4 International Frameworks and Treaty Obligations The Swedish defence regulation is strongly shaped by international obligations and EU law. Sweden follows a dualist approach, whereby treaties gener - ally require incorporation or implementation through domestic legislation before they apply internally, while EU Regulations are directly applicable (as regulated by EU law). The principal international frameworks and treaty obligations reflected in the Swedish defence regulation are, for example: • NATO obligations;
• The National Agency for Public Procurement provides guidance, while the Swedish Competition Authority supervises procurement law. Procure - ment challenges are heard by the administrative courts. Export Controls and Foreign Investment • The Ministry for Foreign Affairs – responsible for Sweden’s foreign development co-operation and trade policy. • The Inspectorate of Strategic Products (ISP) – oversees defence materiel, dual-use products and targeted sanctions, and is the Swedish screening authority for foreign direct investments. National and Protective Security • The Ministry of Justice – responsible for the judicial system, migration and legislation concerning public administration, civil and criminal law, public order and security. • The Swedish Security Service – prevents threats to national security, combats terrorism and protects the central government. Protective security matters are also handled by various sector-specific authori - ties while the Swedish Security Service maintain a co-ordination role. 1.3 Definition of “Defence” and “Dual-Use” In Sweden, the meaning of “defence” goods, services and technology depends on the applicable regulatory context. “Military equipment” is defined in the annex to the Military Equipment Ordinance. In relation to “dual-use” items, Sweden relies on the application and distinction provided in the EU Dual- Use Regulation (2021/821) and has national legisla - tion that complements the EU Regulation. As such, “dual-use” items are goods, software and technol - ogy capable of both civilian and military applications, including items connected with the development of nuclear, chemical or biological weapons. The distinction is therefore primarily based on design and technical characteristics; purely military items are specifically designed or adapted for military purposes, whereas dual-use items also have civilian applica - tions.
• EU Defence Directives; • the Arms Trade Treaty;
• the Wassenaar Arrangement; and • UN Security Council resolutions.
Sweden also implements non-proliferation treaties such as the Chemical Weapons Convention, for which ISP acts as the national authority. Overall, internation - al commitments strongly shape Swedish licensing cri - teria, control lists, procurement legislation, sanctions and security requirements, but enforcement remains primarily the responsibility of Swedish authorities. 2. Procurement and Government Contracts in the Defence Sector 2.1 Defence Procurement Legislation The Defence and Security Procurement Act (2011:1029) (LUFS), regulates procurements in the defence and security sector of military or sensitive equipment, related works and services, and works or services for military purposes or of a sensitive nature. LUFS is based on and implements Directive 2009/81/ EC. There are certain exceptions to the applicability of LUFS – eg, for procurements of arms, ammunition and war material covered by Article 296 (1)(b) of the Treaty on the Functioning of the European Union (TFEU), and for contracts for which the application of LUFS would require disclosure of information contrary to Sweden’s essential security interests or contracts for the pur - poses of intelligence activities.
164 D EFENCE CON TRACTS 2 026
CHAMBERS.COM
Powered by FlippingBook