EXPORT CONTROL & SANCTIONS COMPLIANCE STATEMENT

II. Governing Legal Framework (non-exhaustive)

III. Scope of Control

1. Dual-use items – goods, software and technology listed in Annex I to Regulation 2021/821 or otherwise subject to a catch-all licence where the exporter knows or has been informed of:
   • a potential connection to weapons of mass destruction (WMD) programmes;
   • a military end-use in an embargoed destination; or
   • use as components for illicitly exported military items.
2. Very-sensitive dual-use items – items in Annex IV requiring a licence even for intra-EU transfers.
3. Military items – articles enumerated in the National Military List or EU Common Military List; all movements (export, import, transit, brokering) demand prior authorisation.
4. Intangible Transfers of Technology (ITT) – electronic transmission of controlled technology/software constitutes an export under EU law.
5. Brokering & Technical Assistance – arranging supply between third countries or providing technical support may require a broker or technical-assistance licence.

IV. Licensing Competence and Procedure

• The Ministry of the Economy and Innovation of the Republic of Lithuania issues individual, global and general licences for export, transfer, brokering, technical assistance and transit.
• A valid licence must be obtained before lodging a customs declaration, crossing the frontier, or releasing controlled software/technology to a foreign national.
• Authorisation decisions are taken in line with:
  1. International non-proliferation commitments (Wassenaar, NSG, MTCR, Australia Group, CWC, BWC, NPT);
  2. Binding UN Security Council resolutions, EU restrictive measures and OSCE decisions;
  3. Respect for human rights, regional stability and Lithuania’s foreign-policy interests;
  4. Credibility of stated end-use and risk of diversion.

V. Record-Keeping Obligations

Exporters must retain commercial, transport, technical and correspondence records for at least three (3) years from the end of the calendar year in which the authorised activity took place (Art. 24, Regulation 2021/821). Such records shall be made available to the competent authority upon request.

VI. Sanctions & Enforcement

• Criminal liability – imprisonment of up to eight (8) years and/or substantial fines for unauthorised export, brokering or transit of strategic goods (Arts 199 & 258, Criminal Code).
• Administrative liability – fines, confiscation, licence withdrawal and exclusion from public procurement (Art 141, Code of Administrative Offences).
• Civil remedies – the Company may cancel contracts, suspend deliveries and claim indemnification for compliance-related losses.

VII. Obligations of Customers and Counterparties

1. Screening – prior to any order, verify end-users, consignees, financial institutions and destinations against: EU Consolidated Sanctions List, EU “Sanctions Map”, national embargo notices.
2. Accurate Information – provide complete and truthful data on end-use, end-user, routing and licensing status.
3. No Diversion – re-export, re-transfer, lease or re-sell controlled items or related technical data only with the Company’s written consent and, where applicable, a new Union or national licence.
4. Prompt Notification – inform the Company immediately of any change in end-use or any suspicion that a transaction may breach export-control or sanctions law.
5. Russia/Belarus Sanctions Undertaking – pursuant to Art. 12g of Council Regulation (EU) No 833/2014:
   • The Purchaser shall neither directly nor indirectly sell, export, re-export, transfer, lease or otherwise make available any Company goods, software or technology to the Russian Federation or the Republic of Belarus, or for use therein.
   • The Purchaser shall impose equivalent prohibitions on all subsequent buyers, resellers or other parties down the supply chain and shall implement due-diligence, screening and shipment-tracking procedures sufficient to detect and prevent circumvention.
   • The Purchaser shall maintain an auditable monitoring system and shall notify the Company without delay of any actual or suspected diversion, attempted diversion, or difficulty in applying this undertaking.

VIII. Confidentiality & Export-Controlled Information

The Company may disclose proprietary drawings, specifications or know-how solely for licence processing or contract performance. Such information:

• is marked “Commercial-In-Confidence – Export Controlled”;
• remains the exclusive property of the Company; and
• may not be reproduced, communicated or used for any other purpose without the Company’s prior written consent.

This Statement itself contains no technical data subject to Regulation 2021/821 or defence-secrecy legislation.

IX. Reservation of Rights & Contractual Penalties

The Company reserves the right to decline, suspend or cancel any transaction that, in its judgement, poses an unacceptable compliance risk or conflicts with Union or national law. All quotations and deliveries are expressly conditioned upon adherence to the requirements herein and the timely provision of information required for licence determination.

Material Breach – Russia/Belarus Diversion

Any actual or attempted breach of the Russia/Belarus Sanctions Undertaking (Section VII.5) constitutes a material breach of an essential contractual element. In such event the Company may, without prejudice to any other remedy:

• terminate the contract with immediate effect, and
• demand liquidated damages equal to the greater of 100 % of the total contract value or fifty-thousand euro (€50 000), payable within ten (10) calendar days of written notice. The Purchaser expressly acknowledges that this represents a genuine pre-estimate of the Company’s minimum loss and waives any right to contest the amount.

The Company retains the right to seek additional damages if actual losses exceed the liquidated amount.

X. Reference Instruments

1. Regulation (EU) 2021/821 – OJ L 206, 11 Jun 2021.
2. Commission Delegated Regulation (EU) 2024/2547 – OJ L, 7 Nov 2024.
3. Commission Delegated Regulation (EU) 2023/996 – OJ L 153, 2 Jun 2023.
4. Council Common Position 2008/944/CFSP – OJ L 335, 13 Dec 2008.
5. Council Regulation (EU) No 833/2014 (consolidated).
6. Law on the Control of Strategic Goods No. I-1022 (Lithuania).
7. Order No. V-720 (Lithuania) – 27 Sep 2022.
8. Criminal Code of the Republic of Lithuania – Arts 199 & 258.
9. Code of Administrative Offences of the Republic of Lithuania – Art 141.

XI. Disclaimer

This Statement is provided for general information only, does not constitute legal advice and does not create any obligation beyond those expressly incorporated into written contracts with the Company. Stakeholders are encouraged to seek specialist counsel or contact the competent authority for transaction-specific guidance.