Acceleration of the permit-granting process for the timely availability and supply of crisis-relevant products
1. Member States shall ensure that administrative applications related to the planning, construction and operation of production facilities, transfer of inputs within the Union and qualification and certification of end products are processed in an efficient and timely manner. To that end, all national authorities concerned shall ensure that the most rapid treatment legally possible is given to such applications.
2. Member States shall ensure that, in the planning and permit-granting process, the construction and operation of plants and installations for the production of crisis-relevant products are given priority when balancing legal interests in the individual case concerned.
Facilitation of the cross-certification process
1. Member States shall adopt a list of national certification authorities for defence purposes and notify it to the Commission, which shall make it available to Member States.
2. The Commission, taking into account the views of the EDA, shall draw up and keep updated, by means of implementing acts, an official list of national certification authorities for defence purposes as identified by Member States. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 77(4).
3. A certification authority of one Member State may request from the certification authority of another Member State information about the scope of the certification of a certain defence product.
4. The national certification authorities referred to in paragraph 1 shall cooperate with each other in the performance of their tasks under this Regulation and shall give the authorities of other Member States all necessary support to that end. The Commission, inviting, where relevant, the EDA to provide its expertise, shall support such cooperation in order to facilitate an efficient and effective movement of defence products in the internal market.
Mapping of defence supply chains
1. The mapping of the Union’s defence supply chains shall aim to analyse the strengths and weaknesses of such supply chains, with an emphasis on bottlenecks. It shall inform, where relevant, the development of the work programmes of the Programme and of the Ukraine Support Instrument as referred to in Articles 21 and 34.
2. The mapping of the Union’s defence supply chains shall consist of the following activities, to be performed on a regular basis:
(a)
identification of the relevant manufacturing capacities and supply chains of defence products pursuant to paragraph 5;
(b)
identification of crisis-relevant products and their related manufacturing capacities, pursuant to paragraph 9;
(c)
aggregation, cross-check and assessment of data gathered pursuant to paragraphs 6, 7 and 8;
(d)
identification of early-warning indicators, pursuant to paragraph 11; and
(e)
identification of the main suppliers of crisis-relevant products and their production capacities, pursuant to paragraphs 12 and 13.
3. The Commission, in cooperation with the Defence Security of Supply Board (the ‘Board’), shall carry out the activities referred to in paragraph 2, points (b), (c) and (d). The Member States shall carry out the activities referred to in paragraph 2, points (a) and (e). Each Member State may request the Commission to carry out, on its behalf, the activities referred to in paragraph 2, points (a) and (e).
4. The Commission shall, after consulting the Board, develop a framework and methodology for identifying crisis-relevant products, with an emphasis on existing bottlenecks, as well as their related manufacturing capacities in the Union, and for the mapping of supply chains of those products. That methodology shall build upon any frameworks or methodologies that exist within Member States. For that purpose, the Board may issue recommendations on the type of information appropriate for the mapping of supply chains of crisis-relevant products, on the technical specifications and formats for communicating that information and on the periodicity of such communication.
5. On the basis of the framework and methodology developed pursuant to paragraph 4, Member States shall identify on their territory the relevant manufacturing capacities and supply chains of defence products and shall provide the outcome of that identification to the Commission.
6. The Commission shall aggregate the data provided by Member States pursuant to paragraph 5 and perform a cross-check, with a view to identifying a list of crisis-relevant products and their related manufacturing capacities and to assessing the strengths and weaknesses of the Union’s supply chains of such products.
7. To complement the data provided by Member States, the Commission shall use publicly and commercially available data and relevant non-confidential information from economic operators, as well as the results of similar analyses performed, including in the context of Union law on raw materials, semiconductors and renewable energy, the results of the relevant activities of the EDA, the results of the stress tests conducted pursuant to Article 58 and the results of the evaluation carried out pursuant to Article 85(2).
8. Where the data referred to in paragraphs 6 and 7 are not sufficient for the performance of its tasks pursuant to paragraph 6, the Commission may request the relevant actors involved in the supply chains concerned and based in the Union to provide, on a voluntary basis, information to the Member State on the territory of which the production site of the addressed economic operator is located. The Commission’s request shall explicitly indicate that the economic operator is free to refuse such a request. The request for information shall include the contact information of the national competent authorities of the Member State on the territory of which the production site of the addressed economic operator is located to which the reply is to be sent. Where the economic operator decides to provide the requested information to the Member State concerned, the Member State concerned shall make that information available to the Commission.
9. The Commission, by means of an implementing act, shall draw up and regularly update the list of crisis-relevant products. That implementing act shall be adopted in accordance with the examination procedure referred to in Article 77(4).
10. The Commission shall inform the Board of the aggregate results of the mapping on an annual basis or at the request of one of the members of the Board as referred to in Article 76(5). Those results shall constitute classified information.
11. The Commission shall, on the basis of the outcome of the activities carried out pursuant to paragraphs 4, 6 and 7 and after consulting the Board, develop a list of early-warning indicators aimed at identifying factors that could disrupt, compromise or negatively affect the supply of crisis-relevant products. The Commission, after consulting the Board, shall review the list of early-warning indicators on a regular basis, and at least every two years.
12. Member States shall, in cooperation with the Commission and the EDA, where relevant, identify the main suppliers of crisis-relevant products established on their territory, without unnecessary delay, after the adoption of the implementing act referred to in paragraph 9 of this Article. Each Member State shall notify the main suppliers of crisis-relevant products established on its territory that they have been identified pursuant to this paragraph and inform them about the obligation to report on disruptions in the supply of crisis-relevant products as set out in Article 57(1), point (c). That notification shall also include the relevant contact information of the national competent authorities to which that report is to be sent.
13. The identification of main suppliers as referred to in paragraph 12 may take into account the following elements:
(a)
the market share of the supplier in the market for that crisis-relevant product;
(b)
the importance of the supplier in maintaining a sufficient level of supply of a crisis-relevant product in the Union, taking into account the availability in the Union of alternative means for the provision of that product; or
(c)
the impact that a disruption of supply of the crisis-relevant product provided by the supplier could have on the functioning of the internal market.
14. Without prejudice to paragraph 10 of this Article, any information obtained pursuant to this Article shall be treated in compliance with the confidentiality obligations set out in Article 80.
15. This Article is without prejudice to the right of each Member State to protect the essential interests of its security in accordance with Article 346(1), point (a), TFEU.
Monitoring
1. Member States and the Commission, in cooperation with the Board, shall carry out regular monitoring of the Union’s manufacturing capacities necessary for the supply of crisis-relevant products, identified in accordance with Article 56(9), with a view to identifying possible risks to the supply of those products. In carrying out that monitoring:
(a)
the Commission, in cooperation with the Board, shall monitor early-warning indicators identified pursuant to Article 56(11), including by aggregating any input received from Member States on the basis of information collected at national level;
(b)
Member States shall monitor, in light of the early-warning indicators, the ability of the main suppliers of crisis-relevant products referred to in Article 56(12) to carry out their activities and report to the Board on any events that could have negative and lasting consequences on the timely availability and supply of those products;
(c)
where main suppliers of crisis-relevant products detect disruptions of supply which could significantly affect their activities related to the production of those products, they shall report on such disruptions to the Member State on the territory of which they are established, and the Member State concerned shall communicate that information to the Commission without undue delay;
(d)
the Commission, after consulting the Board, shall identify best practices for preventive risk mitigation and increased transparency of the Union’s manufacturing capacities necessary for the supply of crisis-relevant products.
The Commission, after consulting the Board, shall establish the frequency of the monitoring referred to in the first subparagraph.
2. The Commission and the Member States shall pay particular attention to SMEs in order to minimise the administrative burden resulting from the monitoring referred to in paragraph 1 and may, where necessary, provide dedicated assistance.
3. The Commission may invite, after consulting the Board, the main suppliers of crisis-relevant products referred to in Article 56(12), Member States, national defence industry associations and other relevant stakeholders to provide information, on a voluntary basis, for the purpose of carrying out monitoring activities in accordance with paragraph 1, first subparagraph, point (a), of this Article.
4. For the purposes of paragraph 1, first subparagraph, point (b), of this Article, Member States may request information, on a voluntary basis, from the main suppliers of crisis-relevant products referred to in Article 56(12) where necessary and proportionate.
5. For the purposes of paragraph 3, competent authorities of Member States shall establish and maintain a list of contacts of the main suppliers of crisis-relevant products which are established on their territory. That list shall be transmitted to the Commission. Within the Board, the Commission shall provide for a standardised format for that list of contacts.
6. Without prejudice to the protection of commercially confidential information, Member States shall provide the Board with additional relevant information, in particular information on the identification of issues related to the supply of crisis-relevant products throughout the Union and on relevant future national level measures for the procurement, purchase or manufacturing of crisis-relevant products.
7. On the basis of the information collected through the monitoring activities conducted pursuant to this Article, the Commission shall regularly provide a report of the aggregated findings to the Board. That report shall constitute classified information. The Board shall meet to assess the results of that report and to identify, where appropriate, potential solutions to issues of common interest. Where relevant, the Commission, after consulting the Board, may invite national defence industry associations, main suppliers of crisis-relevant products referred to in Article 56(12), and experts from academia and civil society to such meetings.
8. This Article is without prejudice to the right of each Member State to protect the essential interests of its security in accordance with Article 346(1), point (a), TFEU.
Stress tests
1. The Commission, upon consultation of the Board, shall identify relevant topics for the conduct of stress tests.
2. The Commission, taking into consideration the relevant topics identified pursuant to paragraph 1 of this Article, shall conduct and coordinate stress tests, including simulations that aim to anticipate and prepare for a supply crisis as referred to in Article 60, and in particular may:
(a)
develop scenarios and parameters that capture the particular risks associated with a supply crisis, in order to assess the potential impact on the provision of crisis-relevant products and the proper functioning of the internal market;
(b)
facilitate and encourage the development of strategies for emergency preparedness;
(c)
identify, in cooperation with the Board, risk mitigation measures following the completion of the stress tests.
3. The Commission may conduct stress tests as referred to in paragraph 2 on a regular basis. The Board shall provide recommendations regarding the frequency for the conduct of such stress tests.
4. The Commission shall invite representatives of all Member States to participate in stress tests as referred to in paragraph 2. Upon consultation of the Board, the Commission may also invite representatives of the High Representative, the EDA or other relevant actors to participate in those stress tests.
5. Upon a request by two or more Member States, the Commission may conduct stress tests in specific geographical areas or border regions in those Member States.
6. Upon completion of the stress tests conducted pursuant to this Article, the Commission shall communicate the results to the participating Member States. The Commission shall share with the Board a report with recommendations based on the results of those stress tests without undue delay. Those results and that report shall constitute classified information.
Alerts and preventive action
1. Where a competent authority of a Member State becomes aware of a risk of serious disruption in the supply of a crisis-relevant product or has concrete and reliable information of any other relevant risk factor or event materially affecting the supply of a crisis-relevant product, it shall alert the Board without undue delay.
2. In order to determine whether a risk of serious disruption in the supply of a crisis-relevant product should trigger an alert as referred to in paragraph 1, Member States shall take into account the following:
(a)
the market position of economic operators that could be affected by the disruption;
(b)
the anticipated duration of the potential disruption;
(c)
the geographical area and the proportion of the internal market affected by the potential disruption and its possible cross-border effects, as well as its possible impact on particularly vulnerable or exposed geographical areas; and
(d)
the impact of the potential disruption on the supply of crisis-relevant products.
3. Where the Board or the Commission become aware of a risk of serious disruption in the supply of a crisis-relevant product or has concrete and reliable information of any other relevant risk factor or event materially affecting the supply of a crisis-relevant product, including on the basis of early-warning indicators, upon an alert pursuant to paragraph 1 or from international partners, the Commission shall, without undue delay, carry out the following preventive actions:
(a)
convene an extraordinary meeting of the Board to coordinate the following actions:
(i)
discuss the severity of the potential disruptions to the availability and supply of the crisis-relevant products concerned;
(ii)
recommend to the Commission to initiate action in accordance with Chapters II and III;
(iii)
discuss approaches and exchange best practices of the competent authorities of Member States, including to assess the state of preparedness of the main suppliers of crisis-relevant products;
(iv)
invite Member States to enter into dialogue with stakeholders of the Union’s manufacturing capacities necessary for the supply of crisis-relevant products with a view to identifying, preparing and possibly coordinating preventive measures;
(v)
discuss whether the activation of the supply-crisis state referred to in Article 60 would be necessary and proportionate;
(b)
on behalf of the Union, after consulting the Board, enter into consultations or cooperation with relevant third countries and international organisations with a view to seeking cooperative solutions to avoid or address supply chain disruptions, in compliance with international obligations, which may involve, where appropriate, carrying out coordination in relevant international fora;
(c)
ensure synergies with relevant Union programmes and legal acts.
4. This Article is without prejudice to the right of each Member State to protect the essential interests of its security in accordance with Article 346(1), point (a), TFEU.
Source: EUR-Lex (Publications Office of the EU), © European Union, reuse permitted under Commission Decision 2011/833/EU.
