Israel Liberalizes 'Unclassified Weapons' Sales

Israel Defense companies will now be able to negotiate sale of unclassified weapons without prior approval from the Israeli Defense Export Control Agency(DECA).

The change is designed to ease regulations applying to defense exports and shorten the process of approval for them, Globes reported Wednesday.

The Ministry of Defense (MoD) has instructed defense exporters that despite the exemption from marketing licenses, no binding agreements can be signed with customers before DECA approves the deal. In any case, DECA is recommending that exporters include release clauses in their agreements with foreign customers covering a possible veto of the deal by the state, the news daily reported.

"An Israeli company will be able to speak with customers around the world for unclassified weapons systems and offer a price for them, but will not be allowed to commit to going through with a deal before obtaining final approval from the Ministry of Defense… In any case, details of all unclassified products now appear on the Internet and are available to everyone," The relief is included in a reform of defense exports supervision led by DECA director Racheli Chen, the report stated.

Previously, under the Export Control Law, Israeli companies negotiating with foreign customers for a weapons deal without an appropriate license were breaking the law, and were summoned to hearings in the Ministry of Defense. The companies were exposed to sanctions even if their negotiations with foreign customers concerned unclassified systems.

The new relief will not apply to negotiations between Israel defense exporters and representatives of countries on the list of enemy countries: Lebanon, Syria, Iraq, and Iran. Exporters of thousands of defense products that previously required a marketing license will now be exempt from obtaining such a license.

The relief refers to exports to the 102 countries to which exports are allowed, and to products such as various types of night vision equipment, cyber systems, refueling aircraft, mission aircraft, command and control aircraft, civilian satellites, some unmanned aerial vehicles (UAVS), and training in counter-terrorism provided by Israeli companies.