Firearms, Ammunition, Gear: What Is Important for Your Business

#Firearms, #Ammunition, #Gear: A First Look at the #Legal Requirements in #Germany - What You Need to Know

In Germany, many are having second thoughts about what it means to be able to defend themselves against armed attacks: people are discussing the defense capability of the #Bundeswehr (the German federal #armedforces), and many people reconsider, too, the situation that would arise for individuals if they are confronted with armed attackers on their doorstep.

Public debates revolve around the role of the Bundeswehr, and, after years of hush-hush, many now dare state openly that the #defensecapability of the armed forces depends on the availability of modern #weapons and #ammunition. The need for individual self-defense, however, is still rarely discussed in public, although it would be about time. But at least there is some public acknowledgment that defense of the #homeland could require a better structured #nationalguard, and enhanced involvement of #reservists is already underway.

If the “Zeitenwende” Is To Succeed, Many Things Must Change

Most people understand that, if confronted with an armed attack, the victim has no other options than to counter the attack with an armed defense or, if they have no means of defense, helplessly surrender. So when the German Chancellor (Bundeskanzler) Olaf Scholz spoke of a “#Zeitenwende” in February 2022, declaring that it was time for a sea-change in German politics, it quickly became clear that he was certainly also implying the dire need for improving the equipment of the #Bundeswehr.

Any defense against an armed attack requires that #arms and #ammunition are readily available in sufficient quantities. In many situations, the superiority of technology also matters. Modern weapons and ammunition are often better suited than traditional items. The advancement of systems is a critical factor. Further, much depends on the skills and proficiency of the person using the gun. Sufficient practice is essential, and individuals need firearms, ammunition and all the rest of the gear to practice.

This means that the shopping list must include the means for electronic warfare, communication in the field, intelligence and reconnaissance systems or target acquisition et cetera. Yet not to be forgotten is all the basic equipment for small units and for individual soldiers, from vehicles to #firearms and #ammunition to #tacticalgear.

Mass Production To Be Ramped Up

Of course, it ultimately becomes a question of mass producing and ramping up the capacities for maintenance and re-stocking. This is particularly true of ammunition, of which large quantities are required for training purposes, and of which even larger quantities are essential if a defense scenario becomes reality. But enough of everything else must also be produced so that vehicles, spare parts, rifles, ammunition and every other item are available and ready to use when and where they are needed.

For technological progress to happen quickly, many people and many businesses need to be involved in the development of technologies and systems, from #rifles to #radarsystems systems. And it is not always the large businesses or industrial-scale operations that come up with the best ideas or are quickest to act. Small or medium-sized businesses (#SME) are often more open to #innovation and are faster in its implementation.

Ready to Defend Beats Bureaucracy

Even more importantly, the sheer quantities needed of everything – weapons, ammunition, vehicles, gear – will mean that more businesses and more small or medium-sized businesses are required to take on the task of producing and providing a wide range of products.

Many things will need to change for this step to actually happen. #Procurement for the German armed forces is very bureaucratic and slow. Government permits must be obtained before any business is allowed to produce or sell firearms or other weapons or ammunition, and particularly for military grade items. Any export of #dualuse goods means red tape and bureaucracy, too.

In April 2023, the Scientific Advisory Board at the German Federal Ministry of Economics and Climate Protection published a study on the subject of "Equipping the Bundeswehr better - but how?" which includes a number of answers with a focus on procurement. According to the study, the right to challenge the outcome of #militaryprocurement procedures in a court of law should be abolished and proceedings should be accelerated. Further, the study suggests that the "#Mittelstandsgebot" should be abolished, according to which any acquisition has to be divided into several "lots" in order to promote offers from small and medium-sized enterprises.

How to Enter the Market Now

It is debatable whether the study’s proposals are good ideas or just an attempt to fight bureaucracy with more bureaucracy (which cannot succeed). As of now, the law remains unchanged. Furthermore, public procurement proceedings are only one of several obstacles that businesses must overcome in order to help support and enhance Germany’s #readiness for defense.

#Publicprocurement proceedings pertain to much more than just military arms. Most other items, from clothing to software, must also follow the same path. Businesses must therefore always deal with the intricacies of German public procurement proceedings if they want to supply the German armed forces. In these proceedings, the details of the invitation to tender and of the bid are important, but so are other factors such as, for example, whether the company is generally law-abiding (under Section 124 of the German Federal Act against Restraints of Competition (Gesetz gegen Wettbewerbsbeschr?nkungen, GWB), serious misconduct in the course of professional activities is grounds for exclusion).

The recent procurement of the new fully automatic rifle for the German armed forces has shown how legal challenges can make a difference: Initially, the German federal military procurement office decided in favor of the MK556 rifle by manufacturer #Haenel. Heckler & Koch (#HK) challenged the decision, claiming an infringement of their patent by Haenel. Haenel brought an action to nullify the patent, but this action was partially rejected by the German Federal Patent Court (ECLI:DE:BPatG:2022:300922U7Ni29.20EP.0). Already before that decision by the patent court, Haenel lost the argument in the procurement proceedings at the Düsseldorf Court of Appeals (ECLI:DE:OLGD:2022:0622.VERG36.21.00), with the Court arguing that, given the patent infringement, Haenel was not law-abiding (see Section 124 of the German Federal Act against Restraints of Competition (Gesetz gegen Wettbewerbsbeschr?nkungen, GWB) as explained above) and therefore must be excluded from the procurement proceedings. The tables were turned. The German armed forces will be equipped with HK’s HK416 fully automatic rifle.

Mastering Legal Complexity

The head-to-head between Heckler & Koch and Haenel is a good example of how competition is about the product, but also about mastering legal complexity. This is equally true with regard to all regulatory requirements for the production and sale of firearms and other weapons, ammunition, military equipment and gear.

The numerous restrictions, prohibitions and licensing and permit requirements of the German Federal Weapons Act (Waffengesetz), the German Federal War Weapons Control Act (Gesetz über die Kontrolle von Kriegswaffen) and the associated implementing regulations and, extending to any dual-use items, foreign trade legislation including European Union legislation (such as Regulation (EU) No 2021/821 setting up a Union regime for the control of exports, brokering, technical assistance, transit and transfer of dual-use items) must be complied with.

For businesses interested in the civilian market, one important step is to know the difference between #militaryarms (“Kriegswaffen”, literally “weapons of war” in German parlance) which are strictly prohibited and the #firearms or other weapons which civilians who can show “good cause” (#hunters, #target shooters, some few others) are allowed to buy and own. For example, hunters in Germany are allowed to acquire, possess, and carry both bolt-action rifles and some semi-automatic rifles with matching hunting ammunition, such as an AR-15/AR-10 platform in calibers like .223 or .308. Without exception, however, fully automatic rifles, armor-piercing ammunition, and much more are prohibited for civilians. The details are intricate and the regulations must be adhered to precisely. Businesses are well advised to never operate without a precise examination of the different schedules listing prohibited (and permitted) weapons and ammunition.

Furthermore, Germany prohibits the manufacture and sale of firearms and certain other weapons unless the business is granted a permit, whether for the civilian market or for the military sector. The German Federal Weapons Act (Waffengesetz) specifies the requirements for a production permit and a trade permit (Section 21 of the Waffengesetz). For military arms and equipment, the licensing requirements are found in the German Federal War Weapons Control Act (Gesetz über die Kontrolle von Kriegswaffen).

Civilian Market: Hunters, Target Shooters (and Little Else)

But a further note of caution is due: In Germany and most of the other member states of the European Union, the civilian market really is a different beast – and, mostly, has nothing to do with defense or self-defense. Civilians are, as a general rule, not allowed to own or carry firearms or other weapons. Only those who can show “good cause”, particularly for #targetshooting or for #hunting purposes, and fulfill a substantial list of further requirements can obtain permits (and never for military grade guns or gear). Czechia is said to be a notable exception in that their national laws recognize an individual’s right to armed self-defense as sufficiently “good cause”, which Germany and many other EU member states do not. Nontheless, the civilian market for rifles or pistols and revolvers used for target shooting or for hunting is still a sizeable market with interesting opportunities. Businesses that do not want to rely solely on government purchases may wish to expand and cater to the very different needs of civilians, too.

Permit Required to Produce or Trade

If the requirements stated in the German Federal Weapons Act are fulfilled, the permit must be granted. Basically, this means that any business that meets the requirements will eventually be allowed to enter the civilian market.

Things are very different with regard to the military sector. Businesses are not legally entitled to be granted a permit for the production of or trade with military arms, and not even with regard to the transportation of such weapons. Further, even certain arms deals taking place outside of Germany are regulated under Section 4a of the German Federal War Weapons Control Act.

All in all, therefore, entering the market is full of legal complexity and businesses will require #legaladvice. On the other hand, once a business has established itself within a regulated market, there is a rich field of opportunities while the regulatory complexity keeps new competitors away.

The current situation also raises hopes that the government authorities competent to grant permits will want to take into account the increased demand for military equipment. Even for the military sector, where there is no legal entitlement to approval, businesses that wish to manufacture or place weapons or ammunition on the market, provided they meet the legal requirements, can therefore hope for an increased willingness on the part of government authorities to issue the necessary permits.