||What is necessary to carry out brokerage activities?
With Council Regulation (EC) No 428/2009 of 5 May 2009 setting up a Community regime for the control of exports, transfer, brokering and transit of dual-use items referred to hereinafter as Regulation 428/2009, a Community regime for control of exports, transfer, brokering and transit of dual-use items is introduced. Export of dual-use items and technology may be done by all persons and it is not necessary to be registered pursuant to the Commerce Act.
"Brokerage activity" shall be an activity which includes the provision of brokering services.
“Broker” "Broker" shall be a natural or legal person or partnership residing in or established on the territory of the Republic of Bulgaria which performs brokering services from the Community to the territory of another state.
“Brokering services” shall mean:
— the negotiation or arrangement of transactions for the purchase, sale or supply of dual-use items from a third country to any other third country, or
— the selling or buying of dual-use items that are located in third countries for their transfer to another third country.
Brokerage activity with dual-use items and technologies listed in Annex I of Regulation 428/2009 shall carry out only the persons under article 2, paragraph 6 of 428/2009. The registration for brokering activities shall be done at the Ministry of Economy for a period of five years.
To carry out brokerage activities with dual-use items and technologies, you must have:
- a certificate for registration of brokering activities issued by the Minister of Economy;
- a licence for brokering services with dual-use items issued by the Interministerial Commission for Export Control and Non-proliferation of Weapons of Mass Destruction with the Minister of Economy (Interministerial Commission).
A licence for brokering services with dual-use items and technologies shall be issued when conditions under article 4, paragraphs 1 and 2 of Regulation 428/2009 apply, namely if the items are or may be intended, in their entirety or in part, for use in connection with the development, production, handling, operation, maintenance, storage, detection, identification or dissemination of chemical, biological or nuclear weapons or other nuclear explosive devices or the development, production, maintenance or storage of missiles capable of delivering such weapons or if the purchasing country or country of destination is subject to an arms embargo decided by a common position or joint action adopted by the Council or a decision of the Organisation for Security and Cooperation in Europe (OSCE) or an arms embargo imposed by a binding resolution of the Security Council of the United Nations and if the exporter has been informed by the competent authorities that the items in question are or may be intended, in their entirety or in part, for a military end-use.
Documents required to be submitted to the Ministry of Economy for registration:
1. a filled-in application - Form ¹ 34;
2. a unique identification number in accordance with Article 23 of the Trade Register Act;
3. a list of the natural persons designated to participate in the relevant activity accompanied by the curricula vitae of such persons, an extract from the judicial record and a notarized specimen of their signatures;
4. an extract from the judicial record concerning the sole trader, general manager, executive director, authorized representative, the members of the managing and supervisory bodies of the legal person, and where such members are legal persons – their representatives in the relevant managing body;
5. a notarized specimen of the signature of the sole trader, general manager, executive director or authorized representative;
6. a certificate issued by the relevant territorial entity of the National Revenue Agency attesting to the absence of any outstanding tax liabilities;
7. a statement by the sole trader, general manager, authorized representative, the members of the managing and supervisory bodies of the business undertaking that the applicant has no outstanding liabilities to natural and legal persons, where the liability has been recognized before the relevant enforcement authority;
8. a statement by the sole trader, general manager, authorized representative, the members of the managing and supervisory bodies of the business undertaking that they are not associated with persons and organisations which have infringed the normative acts regulating the activities involving defence-related products and dual-use items in the Member States and in third countries;
9. information from the trader about the planned foreign trade activities with foreign partners involving defence-related products for a period of no less than one year;
10. a receipt for state fee paid.
Once the registration has been processed, you will be given a certificate for registration of brokering activities with dual-use items issued by specimen - Form ¹ 36, valid for 5 years, on expiration of which every next registration shall be for the same period. In case of change in the circumstances, under which the certificate has been issued, you must submit an application with the Ministry of Economy within 14 days after such change has occurred.
Once you have been registered for brokering activities with dual-use items and hold a certificate for registration, you may submit an application for a licence for brokering services with dual-use items and technologies.
Documents required to be submitted to the Interministerial Commission to obtain a licence for brokering services:
1. a filled-in application – Form ¹ 44;
2. a filled-in form – Form ¹ 45 in five copies;
3. copy of the documents, certifying the eligibility of the participants in the transaction to carry out the respective activities;
4. a copy of the document, certifying the eligibility of the applicant in the transaction;
5. an original or notarised (certified) copy of the export licence;
6. an original end-user certificate or international import certificate, issued by a competent authority of the country of the end-user or the country of the importer or their notarised (certified) copies;
7. a receipt for state fee paid.
In case that according to the national laws of the country of a participant in the transaction the document in points 2, 3, 5 and 6 (described above) is not issued, the applicant submits to the Interministerial Commission a written statement by the participant to confirm this fact.