This Act has as its aim the fulfilment of Switzerland's international obligations and the respect of its foreign policy principles by means of controlling the manufacture and transfer of war materiel and related technology, while at the same time maintaining an industrial capacity in Switzerland that is adapted to the requirements of its national defence.

The following require authorisation by the Confederation:

a.

the manufacture of war materiel;

b.

the trade in war materiel;

c.

the brokerage of war materiel;

d.

the import, export and transit of war materiel;

e.

the transfer of intellectual property, including know-how, and the granting of related rights, provided this relates to war materiel and is intended for private individuals or legal entities that have their domicile or headquarters abroad.

This Act applies without prejudice to customs legislation, the regulations on payment transactions and other legislation on foreign trade.

The provisions relating to the initial licence (Art. 9-11) do not apply to federal armaments companies.⁵ The provisions on brokerage (Art. 15 and 16), import and export (Art. 17-19), and the transfer of intellectual property or the granting of rights thereto (Art. 20 and 21) do not apply to armaments companies, provided that their activities relate to the procurement of war materiel for the Swiss armed forces.

¹ The following are deemed to be war materiel:

a.

weapons, weapons systems, munitions and military explosives;

b.

equipment that has been specifically conceived or modified for use in combat or for the conduct of combat and which is not as a general rule used for civilian purposes.

² War materiel also includes individual components and assembly packages, which may also be partially processed, provided it is discernible that such components cannot be used in the same form for civilian purposes.

³ The Federal Council shall designate what is war materiel in an ordinance.

¹ «Manufacture» within the meaning of this Act is any professional activity involving the production of war materiel or the modification of parts essential to its function.

² «Trade» within the meaning of this Act is any professional activity involving the offer, acquisition or passing on of war materiel.

³ «Brokerage» is:

a.

the creation of the essential requirements for the conclusion of contracts relating to the manufacture, offer, acquisition or passing on of war materiel, the transfer of intellectual property, including know-how, or the granting of rights thereto, insofar as they relate to war materiel;

b.

the conclusion of such contracts if this service is provided by third parties.

¹ It is prohibited:

a.

to develop, produce, broker, acquire, transfer to anyone, import, export, carry in transit, or store nuclear, biological or chemical weapons (NBC weapons) or to possess them in any other way;

b.

to incite anyone to carry out an act mentioned in letter a above;

c.

to assist anyone to carry out an act mentioned in letter a above.

² The foregoing prohibition does not apply to acts that are intended:

a.

to enable the destruction of NBC weapons by the agencies responsible therefor; or

b.

to provide protection against the effects of NBC weapons or to combat such effects.

³ The prohibition also applies to acts carried out abroad, irrespective of the law at the place of commission, if:

a.

the acts violate international law agreements to which Switzerland is a party; and

b.

the perpetrator is Swiss or is domiciled in Switzerland.

¹ It is prohibited:

a.

to develop, produce, broker, acquire, transfer to anyone, import, export, carry in transit, or store anti-personnel mines or to possess them in any other way;

b.

to incite any person to carry out an act mentioned in letter a;

c.

to assist in committing an act mentioned in letter a.⁸

² For the development of procedures in mine detection, mine clearance, or mine destruction techniques and for training in such procedures, the retention or transfer of a number of anti-personnel mines is permitted. The number of such mines shall not exceed the minimum number absolutely necessary for the above-mentioned purposes.⁹

³ Anti-personnel mines are explosive devices that are placed under, on, or near the ground or any other surface and which are conceived or modified so as to explode as a result of the presence, approach, or contact of a person, and which are intended to incapacitate, injure or kill one or more persons. Mines designed to be detonated by the presence, proximity or contact of a vehicle as opposed to a person that are equipped with anti-handling devices¹⁰ are not considered anti-personnel mines as a result of being so equipped.¹¹

⁴ «Anti-handling device» means a device intended to protect a mine and which is part of, linked to, attached to or placed under the mine and which activates when an attempt is made to tamper with or otherwise intentionally disturb the mine.¹²

¹ It is prohibited:

a.

to develop, produce, broker, acquire, transfer to anyone, import, export, carry in transit, or store cluster munition or to possess the same in any other way;

b.

to incite anyone to carry out an act mentioned in letter a above;

c.

to assist anyone to carry out an act mentioned in letter a above.

² Paragraph 1 also applies to explosive bomblets that are specifically intended to be dispersed or released by dispensers affixed to an aircraft.

³ For the development of procedures for detecting, clearing, or destroying cluster munition and for training in such procedures, the retention or transfer of a quantity of cluster munition is permitted. The quantity of cluster munition retained shall not exceed the minimum quantity absolutely necessary for the above-mentioned purposes.

¹ The direct financing of the development, manufacture or acquisition of prohibited war materiel is itself prohibited.

² Direct financing within the meaning of this Act is the direct granting of credits, loans or gifts or comparable financial advantages in order to pay or advance costs and expenditures that are associated with the development, manufacture or acquisition of prohibited war materiel.

¹ The indirect financing of the development, manufacture or acquisition of prohibited war materiel is itself prohibited where the prohibition of direct financing is circumvented thereby.

² Indirect financing within the meaning of this Act is:

a.

participation in companies that develop, manufacture or acquire prohibited war materiel;

b.

the acquisition of debt securities or other investment products issued by such companies.

¹ Anyone who on Swiss territory:

a.

wishes to manufacture war materiel;

b.

wishes to trade in war materiel for his own account or for the account of another, or to broker war materiel on a professional basis for recipients abroad, irrespective of the location of the war materiel

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requires an initial licence.

² No initial licence is required by those who:

a.

supply as sub-contractors companies in Switzerland that hold an initial licence;

b.

execute orders from the Swiss government in respect of war materiel for the Swiss armed forces;

c.¹⁶

manufacture, trade in, or acts as a professional broker outside Switzerland for firearms under the legislation on weapons, their components or accessories or their munitions or munitions components and who therefore holds a licence to trade arms under the legislation on weapons;

d.

manufactures or trades in Switzerland in explosives, pyrotechnic devices or propellant powder covered by the legislation on explosives and who therefore holds a licence under the legislation on explosives.¹⁷

¹ The initial licence is granted to natural or legal persons if:

a.

the applicant offers the required guarantee for the proper conduct of their business affairs; and

b.

the intended activity is not contrary the national interest.

² If the applicant also requires authorisation in terms of the federal or cantonal legislation on weapons for his activities, the initial licence is granted only if authorisation under the legislation on weapons has been granted.

¹ The initial licence is non-assignable and applies only to the war materiel mentioned therein. It may be of limited duration and subject to conditions and requirements.

² It may be revoked completely or in part if the requirements for its grant are no longer fulfilled.

³ It does not replace authorisations that must be obtained in terms of other regulations under federal or cantonal law.

The Federal Council shall issue regulations on the control of the manufacture, trade, brokerage, import, export and transit of war materiel as well as the transfer of intellectual property, including know-how, or the granting of rights thereto, to the extent that these relate to war materiel.

The holder of a licence under this Act or the proprietor and the staff of the corresponding company are obliged to provide the control authorities with all the information and documents required for appropriate controls to be carried out.

¹ The control authorities have the right to enter and inspect the business premises of persons obliged to provide information during normal working hours without prior notice and to examine the relevant documents. They shall confiscate incriminating materiel. In the event of suspicion of an offence, more rigorous provisions of procedural law are reserved.

² If necessary, they may in the course of their controls call in cantonal and communal police officers, the investigating authorities of the Federal Office for Customs and Border Security, and the Federal Intelligence Service.³³

³ They may process personal data in accordance with the objectives of this Act. Particularly sensitive personal data may be processed only where it relates to administrative or criminal proceedings and sanctions. Additional particularly sensitive personal data may be processed only if this is indispensable for handling the individual case.

⁴ They are obliged to preserve professional secrecy and to take all the precautionary measures required in their field to prevent industrial espionage.

¹ The Federal Council shall designate the responsible agencies and regulate the procedural details. Border controls are the responsibility of the customs authorities.

² The Federal Council shall decide on applications that are of substantial importance to foreign or security policy. In addition, the provisions of the Federal Act on Administrative Procedure of 20 December 1968³⁴ govern the procedure.

³ The procedure for appeals against orders or rulings made in terms of this Act is governed by the general provisions on federal administrative procedure.

¹ The Federal Council shall designate a Central Office for combating illegal activities in connection with war materiel.

² The Central Office shall participate in enforcement and in the prevention of offences and shall report violations of the provisions of this Act to the competent prosecution authorities.³⁵ Insofar as and for as long as fulfilment of its duties requires, it is entitled to process personal data, including personal data that allows the risk of a person committing offences under this act to be assessed, irrespective of whether the personal data is sensitive.³⁶

The licences provided for by this Act Fees are subject to fees. The Federal Council stipulates the rates.

The Federal Council shall report to the Control Committees of the Federal Parliament on the details relating to the export of war materiel.

¹ Any person who wilfully commits any of the following acts is liable to a custodial sentence or a monetary penalty:³⁷

a.

the manufacture, import, transit, export, trade in, or brokerage of war materiel, or the conclusion of contracts for the transfer of intellectual property including know-how relating to war materiel, or for the granting of rights thereto without the relevant licence or in violation of the conditions or requirements stipulated in a licence;

b.

the provision of incorrect or incomplete information in an application when such information is essential for the granting of a licence or the use of such an application that has been completed by a third party;

c.³⁸

the failure to report war materiel for import, export or transit or the making of a incorrect declaration in respect of its import, export or transit;

d.

the delivery, transfer or brokerage of war materiel for a recipient or destination other than that named in the licence;

e.

the transfer of intellectual property, including know-how, relating to war materiel, or the granting of rights thereto to a recipient or destination other than that named in the licence;

a.

the participation in financial dealings relating to an illegal war materiel transaction or the procurement funding for such a transaction as an intermediary.

² In serious cases the penalty is a custodial sentence of between one and ten years.³⁹

³ If the act is committed through negligence, a monetary penalty shall be imposed.⁴⁰

⁴ In the case of unauthorised import or transit, an act committed abroad is also a criminal offence.

¹ Any person who wilfully commits any of the following acts without being able to claim an exemption under Article 7 Paragraph 2 is liable to a custodial sentence not exceeding ten years or to a monetary penalty:⁴¹

a.

the development, manufacture, brokerage, acquisition, surrender to another, imports, export, transit, stockpiling, or any other form of possession of nuclear, biological or chemical weapons (NBC weapons);

b.

incitement to commit any of the acts listed under letter a; or

c.

assisting in the commission of an act listed under letter a.

² …⁴²

³ If the act is committed through negligence, the penalty is a custodial sentence not exceeding one year or a monetary penalty.⁴³

⁴ An act committed abroad is an offence in terms of these provisions irrespective of the law of the place of commission if:

a.

it violates international law agreements to which Switzerland is a contracting party; and

b.

the offender is Swiss or is domiciled in Switzerland.

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⁵ Article 7 paragraphs 4 and 5 of the Criminal Code⁴⁴ apply.⁴⁵

¹ Any person who wilfully commits any of the following acts without being able to claim an exemption under Article 8 paragraph 2 is liable to a custodial sentence not exceeding ten years or to a monetary penalty:⁴⁶

a.

the development, manufacture, brokerage, acquisition, surrender to another, import, export, transit, stockpiling, or any other form of possession of anti-personnel mines;

b.

incitement to commit any of the acts listed under letter a; or

c.

assisting in the commission of an act listed under letter a.

² …⁴⁷

³ If the act is committed through negligence, the penalty is a custodial sentence not exceeding one year or a monetary penalty.⁴⁸

¹ Any person who wilfully commits any of the following acts without being able to claim an exemption under Article 8a paragraph 3 is liable to a custodial sentence not exceeding ten years or to a monetary penalty:

a.

the development, manufacture, brokerage, acquisition, surrender to another, import, export, transit, stockpiling, or any other form of possession of cluster munition;

b.

incitement to commit any of the acts listed under letter a; or

c.

assisting in the commission of an act listed under letter a.

² …⁵⁰

³ If the act is committed through negligence, the penalty is a custodial sentence not exceeding one year or a monetary penalty.

¹ Any person who wilfully fails to comply with the prohibition of financing under Articles 8b or 8c without being able to claim an exemption under Article 7 paragraph 2, Article 8 paragraph 2 or Article 8a paragraph 3is liable to a custodial sentence not exceeding five years or to a monetary penalty.

² …⁵²

³ A person who merely accepts the possibility of an offence against the prohibition of financing under Articles 8b or 8c does not commit an offence.

¹ Any person who wilfully commits any of the following acts is liable to a fine not exceeding 100,000 francs:⁵³

a.

the refusal to provide information, submit documents or permit access to business premises in terms of Articles 27 and 28 paragraph 1 or provides false information in this connection;

b.

the violation in any other way of a provision of this Act or of an implementing regulation, the contravention of which is declared to be an offence, or the failure to comply with an order issued with notice of the applicability of the penalties in terms of this Article, unless the criminal conduct constitutes a different offence.

² Attempts and complicity are offences.

³ If the act is committed through negligence, the penalty is a fine of up to 40 000 francs.

⁴ The right to prosecute prescribes after five years.⁵⁴

In relation to offences in commercial enterprises, Article 6 of the Federal Act of 22 March 1974⁵⁵ on Administrative Criminal Law applies.

The court shall order the confiscation of the war materiel concerned, irrespective of the criminal liability of any person, to the extent that no guarantee of its lawful continued use is offered. The confiscated war materiel, together with any proceeds of sale, becomes the property of the Confederation; the foregoing is subject to the Federal Act of 19 March 2004⁵⁷ on the Division of Confiscated Assets.

Confiscated assets or rights to compensation become the property of the Confederation subject to the reservation of the Federal Act of 19 March 2004⁵⁹ on the Division of Confiscated Assets.

¹ The prosecution and judgement of offences are subject to federal jurisdiction.

² The federal and cantonal licensing and control authorities, the cantonal and communal police and the customs authorities are obliged to report offences against this Act that they detect or which come to their knowledge in the course of their duties to the Office of the Attorney General of Switzerland.

The responsible federal authorities and the cantonal and communal police may disclose data to each other and to the relevant supervisory authorities insofar as this is required for the enforcement of this Act.

¹ The federal authorities responsible for enforcement and controls, and the prevention or prosecution of offences may cooperate with the responsible foreign authorities as well as with international organisations or agencies and coordinate investigations provided:

a.

this is required for the enforcement of this Act or corresponding foreign regulations; and

b.

the foreign authorities or international organisations or agencies are bound by professional secrecy or corresponding duties of confidentiality and guarantee protection from industrial espionage in their field of activity.

² They may in particular request foreign authorities and international organisations or agencies to hand over data required. In order to obtain such data they may disclose data relating to:

a.

the condition, quantity, destination and place of use, purpose and recipient of goods, components, and intellectual property, including know-how, or rights thereto;

b.

persons involved in the manufacture, supply, brokerage or funding of goods or components, or in the transfer of intellectual property, including know-how, or the granting of rights thereto;

c.

financial dealings relating to the transaction.

³ If the foreign state holds a reciprocal right, the federal authorities may in terms of paragraph 1 disclose the data in terms of paragraph 2 with or without having been requested to do so if the foreign authority provides an assurance that the data:

a.

will be processed only for purposes that fall within the terms of this Act; and

b.

will be used in judicial criminal proceedings only if it has been obtained in accordance with the provisions on international mutual assistance.

⁴ They may also disclose the data to international organisations or agencies subject to the requirements of paragraph 3, whereby the requirement of a reciprocal right may be waived.

⁵ The provisions on international mutual assistance in criminal matters remain reserved.

¹ The Federal Council shall issue the implementation regulations.

² ...⁶⁰

The Federal Act of 30 June 1972⁶¹ on War Materiel is repealed.

...⁶²

¹ ...⁶³

² Contracts on the transfer of intellectual property, including know-how, or the granting of rights thereto that were entered into prior to this Act coming into force do not require a licence under this Act.

¹ This Act is subject to an optional referendum.

² The Federal Council shall determine the date on which this Act comes into force; until federal legislation on weapons comes into force, it may refrain from bringing individual provisions into force.

³ It shall regulate trade in propellant powder that is intended for civilian purposes until related statutory provisions have come into force.

Commencement Date: 1 April 1998⁶⁴