DENMARK Law and Practice Contributed by: Thomas Maaberg Hansen and Peter Sand, Gorrissen Federspiel
Other Sanctions When the CBPP has ascertained that public procure - ment rules have been violated, its sanctions include the following: • annulling a decision or entire procedure; • declaring a contract ineffective; • imposing economic sanction or file a police report for the purpose of a fine; or • ordering a compensation payment. 3. Export Controls and Dual-Use Items 3.1 Export Control Legislation and Regulatory Framework Defence Goods and Military Equipment In Denmark, the export, transfer, brokering and transit of defence goods and military equipment (eg, weap - ons, ammunition and explosives) is governed by the Danish Weapons Act and the executive orders issued thereunder, including (but not limited to) the Executive Order No 2531 of 20 December 2021 on weapons and ammunition (the “Danish Weapons Executive Order”). The relevant authority for authorisations is the Danish National Police, acting under the mandate of the Dan - ish Minister of Justice. As described in 1.1 Principal Legislation and Regula- tory Framework and 1.3 Definition of “Defence” and “Dual-Use” , the Danish War Material Act regulates the production of war material, etc. Dual-Use Items Regulation (EU) 2021/821 of the European Parliament and of the Council of 20 May 2021 setting up an EU regime for the control of exports, brokering, technical assistance, transit and transfer of dual-use items (the “EU Dual-Use Regulation”) establishes the EU-wide regime governing the control of exports, brokering, technical assistance and transit of dual-use items. In Denmark, the EU Dual-Use Regulation is supple - mented by the Danish Act No 635 of 9 June 2011 on the Application of Certain European Union Legal Acts Concerning Economic Relations with Third Countries (the “Danish Enabling Act”) and the executive orders issued thereunder, including (but not limited to) the
procurement regulation, a contract may be terminated where: • the contract has been subject to substantial modi - fication; • the contractor is or becomes subject to a ground for exclusion; or • the contract infringes the treaties or the EU Defence and Security Procurement Directive. 2.13 Challenging Defence Procurement Decisions Bodies and Standing A defence procurement decision can be challenged by bringing a complaint before the Complaints Board of Public Procurement ( Klagenævnet for Udbud ) (CBPP) or by bringing proceedings directly before the courts, provided the complainant has legal interest in respect of the tender or the particular contract. In addition, the Danish Competition and Consum - er Authority ( Konkurrence - og Forbrugerstyrelsen ) (DCCA) has general access to bring complaints before the CBPP and in exceptional cases provides guidance on the interpretation of the public procurement rules. Anyone can contact the DCCA. Specific Limitations on Decisions Taken on National Security Grounds There are no specific limitations on the right to chal - lenge decisions taken on national security grounds, as both the CBPP and the courts have jurisdiction to consider complaints concerning violations of the pro - curement rules under the Executive Order on Defence and Security, as well as complaints related to the use of Article 346 of the TFEU. Remedies Complaints filed with the CBPP during the standstill period (generally 10 to 15 days after the publication of the award notice) automatically have suspensive effect until the CBPP decides whether to grant the complaint additional suspensive effect. The burden of proof for suspensive effect is generally high and is in practice rarely granted.
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