The Swedish Export Control Framework for Military Equipment
The Swedish export control framework for military equipment is governed by the Act (1992:1300) on Military Equipment (the Military Equipment Act) and the Ordinance (1992:1303) on Military Equipment (the Military Equipment Ordinance), as well as the principles and guidelines for the export of military equipment adopted by the government and endorsed by the parliament.
The essence of the framework is that military equipment may only be exported if there are security or defence policy reasons for doing so and if it does not contravene Sweden’s international obligations or broader foreign policy. The guidelines for export and other international cooperation are based on principles established over time. The first public presentation of such guidelines occurred in 1956 when then-Prime Minister Tage Erlander outlined the general principles underpinning the export licensing process for military equipment in parliament. These guidelines were developed and formalised in 1971 and subsequently updated in 1992 and 2018 (e.g., the Government Bill on Military Equipment Export, Prop. 1971:146, the Government Bill proposing the Military Equipment Act, Prop. 1991/92:174, and the Government Bill Strengthened Export Control of Military Equipment, Prop. 2017/18:23). While these guidelines are not legally binding, they represent the established practices governing Swedish military equipment exports.
In November 2023, the government commissioned a special investigator to review the regulations on the manufacture, supply, and export of military equipment, including the guidelines for export and international cooperation, as well as the regulatory framework for subcontractors.
Purpose of the Review
The primary purpose of the review was to analyse the export of military equipment and related international cooperation in light of Sweden’s NATO membership, as well as to modernise and streamline the regulatory framework for Sweden’s defence industry. Since the current guidelines are rooted in Sweden’s historical neutrality policy, and Sweden has now become a NATO member, there is a need to revise the guidelines to reflect the commitments arising under Articles 3 and 5 of the North Atlantic Treaty.
On 2 December 2024, the special investigator’s report (SOU 2024:77) was published. The main proposals include the following:
Amendment of Rules for Allied States
The report highlights that the core of the North Atlantic Treaty is the collective defence obligations under Article 5. In the event of an armed attack on one or more NATO members, Sweden is obliged to assist the attacked member state without delay, individually or collectively, by taking necessary measures. These collective defence obligations now form a central part of Swedish security and defence policy. Additionally, Article 3 commits Sweden to support the development of capabilities to counter armed aggression even in peacetime.
To this end, the report proposes:
- Simplifying the process for new and less-established defence companies to obtain licences to manufacture and supply military equipment or technical assistance for allied states, even without corresponding interests from the Swedish defence sector or authorities.
- Clarifying the guidelines to ensure that cooperation with, and exports of military equipment to, allied states are generally considered compatible with Sweden’s security and defence policy.
- Removing the reference to neutrality law in the guidelines as an unconditional barrier to granting export licences, reflecting Sweden’s NATO membership.
The report also recommends that Sweden join the 2019 export control agreement between France, Spain, and Germany (Agreement Concerning Export Controls in the Field of Defence), also known as the Aachen Agreement. This would facilitate international collaboration in defence material and enable Swedish companies to participate on equal terms with those from major European defence industry countries.
Abolition of Licensing Requirements for Subcontractors
Under the Military Equipment Act, a licence is required to manufacture and supply military equipment.
In 2018, the parliament abolished certain exemptions from licensing requirements for subcontractors, resulting in an increase in licence holders from approximately 175 to nearly 400, many of whom are subcontractors to system manufacturers without direct export operations.
The Swedish Inspectorate of Strategic Products (ISP) has since reported that the increased licensing requirements have resulted in a significant administrative burden for both the authority and affected companies. As these subcontractors typically do not engage in direct exports, effective export control can still be exercised without subjecting them to licensing requirements.
The report proposes, in line with ISP’s request, that the government be authorised to issue regulations exempting subcontractors manufacturing components for military equipment under contracts with licensed manufacturers from licensing requirements. Exceptions would apply to certain critical components.
It also recommends that the government be authorised to exempt such subcontractors from licensing requirements for the supply of military equipment. Instead, the licensed manufacturers contracting these subcontractors would be required to report annually, under Section 19 of the Military Equipment Act, details of the subcontractors, the military equipment involved, and the invoiced value of these contracts.
Other Issues
The report further suggests several minor amendments to the regulatory framework, including:
- Requiring a specific manufacturing licence under the Weapons Act for civilian firearms (including parts covered under Chapter 1, Section 7 of the Weapons Act), instead of a licence under the Military Equipment Act.
- Reviewing the classification of military equipment listed in the annex to the Military Equipment Ordinance (1992:1303) to align with recent updates to the EU’s military list.
- Introducing stricter penalties and increased sanctions for violations of export control regulations.
- Enhancing confidentiality protections for information regarding software, technology, or technical assistance subject to control under the Military Equipment Act, the PDA Act, or the PDA Regulation (EU) 2021/821.
- Simplifying certain administrative requirements, such as notifications of bids and agreements with foreign entities for the supply, lease, manufacture, or development of military equipment or technical assistance.
The report will now be circulated for consultation before a government bill is expected in spring 2026.
Fylgia’s Expertise
Fylgia’s Public Procurement and Regulatory Practice Group regularly advises Swedish companies manufacturing and supplying military equipment, including on licensing and regulatory matters, interactions with ISP, and procurement processes. If you have questions regarding licensing, export regulations, or the sale of military equipment, please do not hesitate to contact us at Fylgia.
