DISSEMINATED BY MERCURY PUBLIC AFFAIRS, LLC, A REGISTERED FOREIGN AGENT, ON BEHALF OF
Q CYBER TECHNOLOGIES LTD. MORE INFORMATION IS ON FILE WITH THE DEPT. OF JUSTICE,
WASHINGTON, DC.

 Case 4:19-cv-07123-PJH Document 45-11 Filed 04/02/20 Page 1 of 6

1 JOSEPH N. AKROTIRIANAKIS (Bar No. 197971)
jakro@kslaw.com
2 AARON S. CRAIG (Bar No. 204741)
acraig@kslaw.com
3 KING & SPALDING LLP
633 West Fifth Street, Suite 1700
4 Los Angeles, CA 90071
Telephone:
(213) 443-4355
(213) 443-4310
5 Facsimile:
6 Attorneys for Defendants NSO GROUP TECHNOLOGIES
LIMITED and Q CYBER TECHNOLOGIES LIMITED
7
8

UNITED STATES DISTRICT COURT

9

NORTHERN DISTRICT OF CALIFORNIA

10

OAKLAND DIVISION

11 WHATSAPP INC., a Delaware corporation,
and FACEBOOK, INC., a Delaware
12 corporation,
13
14

Plaintiffs,
v.

15 NSO GROUP TECHNOLOGIES LIMITED
and Q CYBER TECHNOLOGIES LIMITED,
16
Defendants.
17

Case No. 4:19-cv-07123-PJH
DECLARATION OF SHALEV HULIO IN
SUPPORT OF DEFENDANTS’ MOTION
TO DISMISS UNDER RULES 12(B)(1),
12(B)(2), 12(B)(6), AND 12(B)(7)
Date:
Time:
Ctrm:

May 13, 2020
9:00 a.m.
3

Action Filed: 10/29/2019

18
19
20
21
22
23
24
25
26
27
28
DECLARATION OF SHALEV HULIO
IN SUPPORT OF MOTION TO DISMISS

Case No. 4:19-cv-07123-PJH

 Case 4:19-cv-07123-PJH Document 45-11 Filed 04/02/20 Page 2 of 6

1

I, Shalev Hulio, declare as follows:

2

1.

I am a citizen and resident of Israel. I am the CEO and a co-founder of Defendant

3 NSO Group Technologies Limited (“NSO”). Defendant Q Cyber Technologies Limited (“Q
4 Cyber” and, collectively with NSO, “Defendants”) is NSO’s sole director and majority
5 shareholder.
2.

6

I have personal knowledge of the facts set forth herein and, except as otherwise

7 stated, could testify competently to each fact averred herein.
3.

8

NSO is a technology company that designs and licenses technology to

9 governments and government agencies for national security and law enforcement purposes.
4.

10

Defendants are incorporated and have their principal places of business in Israel.

11 As Israeli corporations, Defendants are subject to service of process in Israel. Defendants have
12 no presence in any other country. Defendants do no business in California and have no offices or
13 employees in California or elsewhere in the United States. Defendants have not performed any
14 actions relevant to Plaintiffs’ lawsuit in California, and they have not targeted any activities
15 relevant to the lawsuit at California. All of Defendants’ employees with knowledge relevant to
16 this lawsuit reside in Israel, and any documentary evidence relevant to the case is located in
17 Israel.
18

5.

Sales of NSO’s Pegasus technology are strictly monitored and regulated by the

19 Government of Israel. The export of NSO’s Pegasus technology is regulated under Israel’s
20 Defense Export Control Law (“ECL”), with which I am very familiar as NSO’s CEO. A copy of
21 the ECL is attached as Exhibit A.
22

6.

To export its Pegasus technology, NSO is required to register with the Israeli

23 Ministry of Defense (“MoD”). Under the ECL, the MoD is empowered to investigate NSO and
24 its business, refuse or cancel NSO’s registration, or deny NSO’s license, taking into account
25 several factors, including the intended use of NSO’s Pegasus technology and the identity of
26 NSO’s customers.

The MoD can and does ask NSO to provide documentation about its

27 customers and prospective customers and the intended uses of NSO’s Pegasus technology by
28 NSO’s customers and potential customers. The MoD requires this documentation from NSO for
DECLARATION OF SHALEV HULIO
IN SUPPORT OF MOTION TO DISMISS

1

Case No. 4:19-cv-07123-PJH

 Case 4:19-cv-07123-PJH Document 45-11 Filed 04/02/20 Page 3 of 6

1 each export of NSO’s Pegasus technology.
2

7.

NSO’s contracts require Pegasus end-user customers to demonstrate that they are

3 a government or an authorized agency for national security and law enforcement purposes of a
4 government and to provide any other necessary documentation for approval by the MoD.
5

8.

The MoD requires the NSO provide it with signed certificates from the end-users

6 of NSO’s Pegasus technology in which the end-users declare that NSO’s Pegasus technology
7 will be used only for prevention and investigation of terrorism and criminal activity.
8

9.

NSO markets and licenses its Pegasus technology exclusively to sovereign

9 governments and authorized agencies for national security and law enforcement purposes of
10 governments and does so only after receiving the necessary export control licenses from the
11 MoD. NSO does not market or sell its Pegasus technology for use by any private entities, and
12 Plaintiffs’ allegation to the contrary is false.
13

10.

In October 2017, NSO was approached by two Facebook representatives who

14 asked to purchase the right to use certain capabilities of Pegasus, the same NSO software
15 discussed in Plaintiffs’ Complaint. From Facebook’s communications with NSO at that time, I
16 understand that Facebook had purchased a web analytics company called Onavo in October
17 2013. Onavo had created a virtual private network (“VPN”) application called Onavo Protect,
18 which analyzed web traffic sent through the VPN to provide statistics on the usage of other
19 applications. Onavo Protect, which has frequently been categorized as “spyware,” allowed
20 Facebook to gather information about Onavo Protect users, including the applications installed
21 on those users’ mobile devices and the amount of time the users spent on each application. The
22 Facebook representatives stated that Facebook was concerned that its method for gathering user
23 data through Onavo Protect was less effective on Apple devices than on Android devices. The
24 Facebook representatives also stated that Facebook wanted to use purported capabilities of
25 Pegasus to monitor users on Apple devices and were willing to pay for the ability to monitor
26 Onavo Protect users. Facebook proposed to pay NSO a monthly fee for each Onavo Protect user.
27 Facebook is a private entity and not a sovereign government or government agency for national
28 security and law enforcement purposes and therefore does not meet NSO’s customer criteria.
DECLARATION OF SHALEV HULIO
IN SUPPORT OF MOTION TO DISMISS

2

Case No. 4:19-cv-07123-PJH

 Case 4:19-cv-07123-PJH Document 45-11 Filed 04/02/20 Page 4 of 6

1 NSO declined the sale and informed Facebook that NSO only licenses its Pegasus technology to
2 governments.
11.

3

1

NSO takes into account U.S. and European Union export control restrictions.

4 NSO conducts due diligence of potential customers, including examining publicly available
5 information, evaluating questionnaires, and considering the potential customer’s record of
6 respecting rule-of-law concerns. Government customers must provide due diligence materials
7 before receiving NSO’s Pegasus technology. (See Compl. Exh. 11, Sec. 2.2.)
12.

8

NSO requires, as a condition of use, that its government customers agree that they

9 (1) will use NSO’s Pegasus technology “only for the prevention or investigation of crimes and
10 terrorism and ensure that the [technology] will not be used for human rights violations” and (2)
11 will immediately notify NSO of any potential misuse. (See Compl. Exh. 11, Sec. 2.1.) NSO
12 contractually can suspend or terminate service to customers engaged in any improper use of its
13 Pegasus technology outside these parameters. (See Compl. Exh. 11, Sec. 7.) And, NSO has
14 done so in the past. Moreover, the State of Israel may deny or revoke export licenses if it
15 becomes aware the terms of the export license have been violated, including, for example, that
16 the Pegasus technology is being used to violate human rights.
13.

17

NSO’s Pegasus technology also has technical safeguards, such as general and

18 customer-specific geographic limitations. (See Compl. Exh. A.) One of the limitations relevant to
19 this case is that NSO’s Pegasus technology cannot be used against U.S. mobile phone numbers.
20 (See Compl. Exh. D.) Another such limitation is that the Pegasus technology cannot be used
21 against a device within the geographic bounds of the United States.
14.

22

Contrary to Plaintiffs’ false allegations, Defendants do not operate NSO’s

23 Pegasus technology. Instead, NSO markets and licenses the Pegasus technology to its sovereign
24 customers, which then operate the Pegasus technology themselves, to advance their own
25
26

1

Facebook thereafter used Onavo Protect to monitor users on Apple devices until August 2018,
when
Apple banned the application for violating its rules on data collection. See Nick Statt,
27
Facebook Will Pull Its Data-Collecting VPN App from the App Store Over Privacy Concerns,
28 The Verge (Aug. 22, 2018, 6:46 pm), https://bit.ly/2w8LwYU.
DECLARATION OF SHALEV HULIO
IN SUPPORT OF MOTION TO DISMISS

3

Case No. 4:19-cv-07123-PJH

 Case 4:19-cv-07123-PJH Document 45-11 Filed 04/02/20 Page 5 of 6

1 sovereign interests of fighting terrorism and serious crime. Defendants’ role is limited to NSO
2 providing advice and technical support to assist customers in setting up—not operating—the
2

3 Pegasus technology. When Defendants provide those support services, they do so entirely at the
4 direction of their government customers, and Defendants follow those directions completely.
5 Defendants’ operation of the Pegasus technology NSO has licensed to sovereign governments
6 and agencies for national security and law enforcement purposes is also prohibited under each
7 export control license NSO has been granted. Each of the licenses NSO has been granted
8 provides that operational use or ongoing operation of Pegasus by NSO employees (or their
9 subcontractors) is prohibited, and that operation of Pegasus by NSO employees (or their
10 subcontractors) is permitted only for demonstration purposes and on devices owned by NSO.
11 Each export control license NSO has been granted further requires that NSO’s remote access to
12 Pegasus technology licensed to a customer is permitted solely for purposes of maintenance
13 (which is not related to operation of Pegasus).
15.

14

In the Complaint, Plaintiffs allege that between in and around April 2019 and

15 May 2019, Defendants “sen[t] malware to approximately 1,400 mobile phones and devices
16 (‘Target Devices’)” used by “Target Users,” and that Defendants did so “without the Target
17 Users’ knowledge or consent.” (Complaint ¶¶ 1, 54.) Plaintiffs do not identify any “Target
18 User.” But Defendants have never installed Pegasus on any device without the knowledge and
19 consent of the device owner, and Defendants have never installed Pegasus on any device for any
20 operational purpose. I do not have knowledge regarding the use of WhatsApp messages, by
21 Defendants’ sovereign customers, to install Pegasus on any particular device. If one or more of
22 Defendants’ sovereign customers did that, however, then that sovereign would have been acting
23 on its own behalf to advance its own sovereign interests of fighting terrorism and serious crime,
24 and it would have been without Defendants’ involvement.
16.

25

Defendants have no control over, or knowledge of, where Plaintiffs’ servers are

26
27

2

Defendants do not participate in any NSO customer’s installation of the Pegasus technology on
28 any device.
DECLARATION OF SHALEV HULIO
IN SUPPORT OF MOTION TO DISMISS

4

Case No. 4:19-cv-07123-PJH

 Case 4:19-cv-07123-PJH Document 45-11 Filed 04/02/20 Page 6 of 6

1 located or of which server(s) would be used to send any message.
2

17.

Plaintiffs allege that Defendants used Pegasus to monitor journalists, human

3 rights activists, political dissidents, diplomats, and other senior government officials. That is
4 false. Defendants do not monitor anyone, and Defendants prohibit their customers from using the
5 technology for purposes other than fighting terrorism and serious crime, by contractual
6 prohibitions against such behavior and required end-user certificates signed by the customer. If a
7 government ever misused NSO’s Pegasus technology to monitor WhatsApp users for purposes
8 other than fighting terrorism and serious crime, Defendants have no knowledge of that misuse,
9 which would be a violation of that government’s contract with NSO. If Defendants suspected
10 any improper use of Defendants’ Pegasus technology outside these parameters, service to that
11 customer would be suspended pending investigation. If investigation revealed such ongoing
12 misuse, that customer would be terminated.
13

18.

Because NSO’s government customers use Defendants’ technology to investigate

14 and prevent terrorism and crime, discovery into Defendants’ customers’ use of the technology
15 would require sovereign governments to reveal sensitive information about their national16 security, intelligence, and law enforcement operations.
17

19.

If any of NSO’s government customers have witnesses or evidence relevant to

18 this lawsuit, those witnesses and that evidence would be located outside of the United States.
19

I declare under the penalty of perjury and the laws of the United States that the foregoing

20 is true and correct this 2nd day of April 2020, at Tel Aviv, Israel.
21
22
23
SHALEV HULIO

24
25
26
27
28
DECLARATION OF SHALEV HULIO
IN SUPPORT OF MOTION TO DISMISS

5

Case No. 4:19-cv-07123-PJH

 Case Document 45-12 Filed 04/02/20 Page 1 of 33

EXHIBIT A

Case 4:19-cv-07123-PJH Document 45-12 Filed 04/02/20 Page 2 of 33
1

Defense Export Control Law, 5766-2007

Unofficial Translation

Office of the General Counsel
Ministry of Defense

October 2007

Unofficial Translation - MOD, Office of the General Counsel

 Case 4:19-cv-07123-PJH Document 45-12 Filed 04/02/20 Page 3 of 33
2

UNOFFICIAL TRANSLATION (October 29th , 2007)

Defense Export Control Law, 5766-2007
Chapter A: Objective
Objective

1.

The objective of this law is to regulate state control of the
export of defense equipment, the transfer of defense know-how
and the provision of defense services, for reasons of national
security considerations, foreign relations considerations,
international obligations and other vital interests of the State.
Chapter B: Definitions

Definitions

2.

In this law –
“Defense export
control division”

The defense export control
division at the ministry of
defense;

"Israeli citizen"

as implied in the Law of
Citizenship, 5712 – 1952;

"Means of control"

In a corporation - each one of the
following (1) The right to vote at a general
assembly of a company or
analogous entity of another
corporation;
(2) The right or the capacity to
appoint, alone or with another
entity, a Director or Director
General, and similar officers
in a corporation which is not
a company;
(3) The right to hold a share
granting the rights specified
in paragraphs (1) or (2) or a
similar right in a corporation
which is not a company;

Unofficial Translation - MOD, Office of the General Counsel

 Case 4:19-cv-07123-PJH Document 45-12 Filed 04/02/20 Page 4 of 33
3
“Foreign entity”

A foreign state, including a
person located in a foreign state;

“The director general”

The Director General of the
Ministry of Defense;

“Wassenaar Arrangement” Wassenaar
Arrangement
on
Export Controls for Conventional
Arms and Dual-use Goods and
Technologies;

"Transfer of defense
know-how”

As applied in section 15(a)(2);

"The licensing authority" The Director General or the Head
of the Defense Export Control
Division as authorized by the
Director General for the purpose
of this law, partially or fully, and,
with regard to export licenses for
defense equipment in transit and
transfer licenses to the Palestinian
Civil jurisdiction areas - the
Director General or the Head of
the Defense Export Control
Division, or anyone authorized
by them;

“Criminal law”

"Defense know-how"

The Criminal Law, 5736-1977;

(1) Information that is required for
the development or production of
defense equipment or its use,
including information referring to
design, assembly, inspection,
upgrade
and
modification,
training, maintenance, operation
and repair of defense equipment
or it's handling in any other way
as well as technology included in
the order under paragraph (1) of

Unofficial Translation - MOD, Office of the General Counsel

 Case 4:19-cv-07123-PJH Document 45-12 Filed 04/02/20 Page 5 of 33
4
the
“Controlled
Dual-use
Equipment” definition and in the
orders under the “Missile
Technology”
and
“Defense
Equipment” definitions; for this
purpose, information – including
technical data or technical
assistance;

(2) Know-how relating to defense
forces, including know-how
concerning their organization,
build-up and operation, combat
doctrine or training and drill
methods defense policy or their
methods of action, as well as
know-how relating to defense
policy anti-terror combat and
security methods;

"Export of defense
equipment”

Transfer outside of Israel,
including
transfer
to
the
Palestinian Civil Jurisdiction
areas, as well as the transfer
within Israel to a diplomatic or
consular representation of a
foreign state;

“Defense export”

Each of the following:

"Production"

(1)

Export
of
equipment;

(2)

Transfer of defense knowhow;

(3)

Provision
services;

of

defense

defense

Including
production
engineering,
integration,
assembly, inspection, trials and
quality assurance.

Unofficial Translation - MOD, Office of the General Counsel

 Case 4:19-cv-07123-PJH Document 45-12 Filed 04/02/20 Page 6 of 33
5

"Defense forces"

Military forces or police forces of
a state, as well as other entities of
a state engaging in defense,
internal security or intelligence;

“Basic scientific
research”

Trial or theoretical work mainly
intended
to
obtain
new
knowledge
regarding
basic
principles
of
observable
phenomena and facts, and which
is not aimed at a particular goal
or target;

“Information in the
public domain”

Information in the public domain,
which was legally made available
to the public, without restrictions
on its further dissemination;
intellectual property ristrictions
do not exempt information from
being in the public domain;

"Defense export
registry"

As applied in section 3;

"Interim user"

Anyone in possession of defense
equipment or defense know-how,
during the period of time from
leaving the holder of a defense
export license until transferred to
the end-user;

"End-user"

The final entity that is destined to
receive the defense equipment,
defense know-how or defense
service, regarding which a license
is requested under chapter D or
was such granted;

"Technical data"

Prototypes,
plans,
sketches,
models,
formulas,
tables,
engineering
content
and
specifications, written operating
instruction manuals or manuals

Unofficial Translation - MOD, Office of the General Counsel

 Case 4:19-cv-07123-PJH Document 45-12 Filed 04/02/20 Page 7 of 33
6
documented on magnetic, optic
or any other media;
"Technical assistance"

Instruction,
qualification,
training,
consultation,
transmission of proficiency or
technical data;

“Defense export
transaction”

A transaction involving a defense
export;

"Development"

Including all the pre-production
stages, including design, design
study and its analysis, design
perception,
assembly
and
prototype trial, experimental
production sequences and design
data, process of transforming the
design data into a product,
configuration design, integration
and layout sketches;

“Defense marketing
action”

As applied in section 14;

"Defense equipment"

Missile
equipment,
combat
equipment and controlled dualuse equipment;

“Defense equipment in
transit”

As applied in section 19;

“Dual-use equipment”

Materials and equipment initially
intended for civilian use and
which are also compatible for
defense use”

"Controlled dual-use
equipment"

One of the following:
(1)

Dual-use equipment listed
in
the
Wassenaar
Arrangement
Dual-Use
Goods and Technologies
list,
as
periodically

Unofficial Translation - MOD, Office of the General Counsel

 Case 4:19-cv-07123-PJH Document 45-12 Filed 04/02/20 Page 8 of 33
7
updated, intended for a
defense use, or other dualuse equipment, as shall be
set forth in the Minister's
order;
(2)

Regarding section 20 –
dual-use equipment as
shall be set forth in the
Minister's order;

"Missile equipment"

Equipment
and
software
regarding missiles, set forth in
the appendix on equipment,
software and technologies of the
International Missile Technology
Control
Regime
(MTCR),
periodically updated, as shall be
set forth in the Minister's order;

"Combat equipment"

Equipment included in the
Munitions List of the Wassenaar
Arrangement, as periodically
updated, or other equipment
initially intended for a defense
use, as shall be set forth in the
Minister's order;

“Transfer license to the
Palestinian Civil
Jurisdiction areas”

As applied in section 20;

“Re-transfer license”

As applied in section 17;

“Defense export license”

As applied in section 15;

“License for defense
equipment in transit”

As applied in section 19;

“Defense marketing
license”

As applied in section 14;

Unofficial Translation - MOD, Office of the General Counsel

 Case 4:19-cv-07123-PJH Document 45-12 Filed 04/02/20 Page 9 of 33
8
“End-use modification
license”

As applied in section 18;

“Brokering license”

As applied in section 21;

"Palestinian Civil
Jurisdiction areas”

Judea and Samaria, excluding the
settlements
and
military
compounds as implied in the
agreement, as well as the
complete area of the Gaza Strip;
“agreement” – the IsraeliPalestinian Interim Agreement
regarding the West Bank and the
Gaza Strip that was signed in
Washington between the State of
Israel and the Palestinian
Liberation Organization, on the
4th of Tishrei 5756 (28th of
September 1995), including its
appendices
and
related
documents;

"Use"

Including operation, installation,
maintenance,
repair
and
renovation.

“Defense use”

Use made by defense forces or
intended for them;

"End-use"

Use of the defense equipment,
defense know-how or reception
of defense services, by the enduser;

“Defense service”

As applied in section 15(a)(3);

"Control"

With regard to a corporation - the
capacity, whether on one's own
or along with others, to steer the
corporation's activity, with the
exception of the capacity which
derives only from the fulfillment

Unofficial Translation - MOD, Office of the General Counsel

 Case 4:19-cv-07123-PJH Document 45-12 Filed 04/02/20 Page 10 of 33
9
of the position of Director or of
another officer in the corporation;
Without derogating from the
generality of the aforesaid (1)

A person shall be
considered to be in
control of the corporation
if he/she holds half or
more of a certain type of
means of control in the
corporation;

(2)

It is held that the person
controls the corporation if
one of the following is
fulfilled:
(a)

He/she holds the
largest part of any
kind of means of
control in the
corporation at any
time, or there is no
other entity, which
individually owns
or owns with
others a means of
control of any
kind, at a share
that
exceeds
his/her holdings of
the same kind of
means of control;

(b)

He/she has the
capacity to prevent
business decision
making in the
corporation
by
virtue
of
a
provision in the
code or in the
contract, with the
exception of the
power to prevent
decision making
regarding
the
issuing of means
of control in the

Unofficial Translation - MOD, Office of the General Counsel

 Case 4:19-cv-07123-PJH Document 45-12 Filed 04/02/20 Page 11 of 33
10
corporation or the
power to prevent
decision making
regarding the sale
or liquidation of
most
of
the
corporation
business or a
material change
therein;

"Israeli resident "

As defined in the Population
Registry Law, 5725-19652;

“Foreign corporation”

A corporation other than an
Israeli corporation;

“Israeli corporation”

One of the following:
(1) A corporation incorporated in
Israel;

(2) A corporation that has its
center of business in Israel,
and which the control over it
is, directly or indirectly, by an
Israeli citizen or resident;

"The Minister"

The Minister of Defense.

Chapter C: Defense Export Registry

Registration
obligation
with the defense
export registry

3.

(a)

(1)

No person shall be entitled to receive a
defense marketing license or a defense
export license, unless he/she is
registered with the registry administered
by the licensing authority (in this law defense export registry).

Unofficial Translation - MOD, Office of the General Counsel

 Case 4:19-cv-07123-PJH Document 45-12 Filed 04/02/20 Page 12 of 33
11
(2)

Refusal to register 4.
and removal of
existing registration

No person shall be entitled to receive a
license for brokering between foreign
entities, unless he/she is registered with
the defense export registry as a broker
between foreign entities.

(b)

The licensing authority is authorized to request,
from a person wishing to register with the
defense export registry, any relevant information
or document that it requires for the purpose of
reaching a decision regarding registering.

(a)

The licensing authority is authorized to refuse to
register a person in the defense export registry,
to approve the registration under conditions, as
well as to remove his/her registration from the
defense export registry or to suspend the
registration, and in so doing may take into
account, amongst others, the following
considerations:

(b)

(1)

The applicant’s criminal record;

(2)

The applicant's violation of the
provisions of this law or the violation of
the terms of a license that was issued
under Chapter D, or the violation by the
applicant of an order under law or of the
terms of a license given before the entry
into force of this law, regarding an action
regulated under this law;

(3)

If the applicant has not met the rules set
by the Minister in the regulations;

(4)

If the applicant is a corporation, the
licensing authority is entitled to take into
account
considerations
that
are
enumerated in sections (1) to (3) above
also with regard to the controlling
shareholder, interested party and officers
in the said corporation. For this purpose,
“interested party”, “officer” – as defined
in the Corporations Law, 5758 – 1999.

The licensing authority shall not make its
decision under this section, prior to giving the

Unofficial Translation - MOD, Office of the General Counsel

 Case 4:19-cv-07123-PJH Document 45-12 Filed 04/02/20 Page 13 of 33
12
person regarding whom the decision is made the
opportunity to voice his/her arguments.

Contestation

5.

The person regarding whom a decision was taken under
section 4, by the director general in his capacity as
licensing authority, may demand a review of the
decision by the director general, and regarding such
decision taken by the director of the defense export
control division, - before the director general – all as
set forth in the minister’s order.

Chapter D: Licensing
Sign A: General Provisions regarding Licenses

License application 6.

(a)

An applicant for a license under this chapter,
will include in his/her application, details,
declarations and documents as set forth by the
minister in regulations.

(b)

The licensing authority may, in addition to the
details and documents set forth in section (a)
above, demand any information, document or
defense equipment required for its decision
regarding the license application, and, amongst
others –
(1) The applicant’s declaration regarding the
identity of the end-user and the interim
users, and the intended end-use of the
defense equipment, defense know-how or
defense service regarding which the license
is requested;
(2) A declaration by the end-user regarding the
intended end-use of the defense equipment,
defense know-how or defense service
regarding which the license is requested;
(3) A certificate by the government of the state
where the end-user is located, regarding the
identity of the end-user and the intended
end-use of the defense equipment, defense
know-how or defense service regarding
which the license is requested;

Unofficial Translation - MOD, Office of the General Counsel

 Case 4:19-cv-07123-PJH Document 45-12 Filed 04/02/20 Page 14 of 33
13
(4) A certificate by the government of state
where the end-user is located, authorizing
the import of the defense equipment, defense
know-how or defense service regarding
which the license is requested, to that state.

License stipulations 7.

(a)

The licensing authority may include stipulations
in a license issued under this chapter, including
stipulations to be fulfilled prior to the activity
included in the license and including stipulations
intended to increase oversight on the license
holder, and is also authorized, at all times, to add
stipulations to a license, to remove or amend
stipulations, for the purpose of fulfilling the
objectives of this law and its provisions.

(b)

Without derogating from the above, a license
under this chapter may include the following
stipulations:
(1) The technical characteristics and scope of
the defense equipment, defense know-how
or defense service provided under the
license, and the scope of the licensed
transaction;
(2) The intended end-use of the defense
equipment, defense know-how or defense
service regarding which the license is
requested, and the identity of the end-user
or the interim users of the said equipment,
know-how or service.

Refusal to grant
licenses

8.

The licensing authority is authorized to refuse to grant
a license under this chapter or to condition the granting
of a license under certain stipulations, taking into
account, amongst others, the following considerations:
(1)

The applicant’s criminal record;

(2)

The applicant's violation of the provisions of this
law or the violation of the terms of a license that
was issued under Chapter D, or the violation by
the applicant of an order under law or of the
terms of a license given before the entry into
force of this law, regarding an action regulated
under this law;

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(3)

If the applicant has not met the rules set by the
Minister in the regulations;

(4)

If the applicant is a corporation, the licensing
authority is entitled to take into account
considerations that are enumerated in sections
(1) to (3) above also with regard to the
controlling shareholder, interested party and
officers in the said corporation. For this purpose,
“interested party”, “officer” – as defined in the
Corporations Law, 5758 – 1999;

(5)

The end-users' observance of the obligations
undertaken under section 6(2);

(6)

Considerations regarding the type of defense
equipment, defense know-how or defense
service for which the license is required;

(7)

Considerations regarding the end-user or the
end-use.

An announcement regarding a decision by the licensing
authority under this section will be made known to the
applicant in a manner and time period as set forth by the
minister in regulations.

License revocation
9.
and suspension or
restriction of a license

(a)

The licensing authority is authorized to revoke a
license that is granted pursuant to this chapter or
to suspend it including on probation or
according to stipulations it shall set forth, as
well as to restrict the license, taking into
account, amongst others, the considerations
listed in section 8 above.

(b)

The licensing authority shall not cancel, suspend
or restrict a license, prior to affording the license
holder the opportunity to voice his/her
arguments.

(c)

Despite the provisions in section (b), under
special circumstances and due to urgency, the
licensing authority may suspend or restrict a
license prior to affording the license holder to
voice his/her arguments.

(d)

Reasons of state security, foreign relations
considerations or international obligations will

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15
not constitute as an argument against the
licensing authority’s decision under this section.

Contesting the
refusal to issue
a license, or its
revocation,
suspension or
restriction

10.

(e)

An announcement regarding a decision by the
licensing authority under this section will be
made known to the applicant in a manner and
time period as set forth by the minister in
regulations.

(a)

In case of refusal to grant a license under section
8, or revocation, suspension or restriction of a
license under section 9, the applicant or license
holder may contest such decision of the
licensing authority in a manner as set forth in
section (b) below.

(b)

A decision on the contest will be taken after
consultation with the advisory committee, by
one of the following as detailed below, in a
manner and time period as set forth by the
minister in regulations:
(1) Regarding a decision taken by the directorgeneral – through a review before the
director-general;
(2) Regarding a decision by the director of the
defense export control division – by the
director-general;
(3) Regarding a decision on an export license
for defense equipment in transfer, or
regarding a transfer license to the Palestinian
Civil Jurisdiction areas, taken by the person
authorized by the director-general or the
director of the defense export control
division – by a person authorized by the
director-general.

(c)

General licenses
or specific licenses

11.

Reasons of state security, foreign relations
considerations or international obligations will
not constitute as an argument against the
licensing authority’s decision under this section.

Licenses pursuant to this chapter may be general, or
granted for types of activities or transactions involving
defense equipment, defense
know-how or defense

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services or specific activities, transactions, equipment,
know-how or services.

Prohibition against 12.
transfer, lien or
seizure of the
license

A license granted under this chapter, including
any rights vested in it, is non-transferable, and
may not be liened or seized.

Sign B: Licenses

Actions requiring
licensing

13.

Defense marketing 14.
license

Actions listed under this sign require a license from the
licensing authority, and any such action shall be in
accordance with the stipulations in the license, unless
otherwise set forth under this law.

(a)

An Israeli citizen, an Israeli resident or an Israeli
corporation shall not conduct a defense
marketing activity without a marketing license
(hereinafter – defense marketing license) that is
granted pursuant to this law, and pursuant to the
conditions of the marketing license; in this law –

“Defense marketing activity” - An activity aimed at
promoting a defense export transaction, including
brokering activity towards a defense export transaction,
whether in Israel or outside of Israel, in writing or
orally or via any other means, directly or indirectly, in
exchange for remuneration or not, whether transfer of
defense know-how occurs or not, or the holding of
negotiations towards such transaction; the activity can
be geared toward a certain customer or toward a general
public, and may or may not result in a defense export
transaction.
“Brokering activity towards a defense
transaction” – one of the following activities:

export

(1) Forging ties between parties to contract in a
defense export transaction;
(2) Participating in negotiations toward a contract
between the parties involved in the defense
export transaction;

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(3) Representation of a party involved in the
defense export transaction;

Defense export
license

15.

(b)

The licensing authority is authorized to exempt
an applicant from the obligation of receiving a
defense marketing license under this section, for
categories of defense marketing activities or for
certain defense marketing activities, as set forth
in regulations.

(c)

If a defense marketing license was granted to a
corporation included in the Minister’s order
issued under item 3 of the first annex of the
Security Regulation in Public Bodies Law,
5757-1998, an individual license for each
employee of that corporation shall not be
required, regarding the licensed defense
marketing activity.

(a)

A person as listed below shall not be involved in
the following activities, unless he/she received a
license for such activity from the licensing
authority (in this law – defense export license)
and pursuant to the provisions of that license:

(1)

Export of defense equipment;

(2)

Transfer of defense know-how through
any means, including orally - from Israel
to outside of Israel, or in Israel to a
person who is neither an Israeli citizen or
an Israeli resident, or to a foreign
corporation; however, transfer of defense
know-how relating to equipment
included in section (1) of the “controlled
dual-use equipment” definition that is
information in the public domain as well
as basic scientific research, does not
require a defense export license, unless
the licensing authority requires, in
regulations, that transfer of such defense
know-how or such type of defense know
how or such basic scientific research
requires a defense export license.

(3)

Provision of a defense service - if the
service provider is an Israeli citizen or an
Israeli corporation - outside of Israel, or

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within Israel to a person who is not an
Israeli citizen or an Israeli resident, or to
a foreign corporation; in this law,
“defense service” – a service relating to
defense equipment, including its design,
development, production, assembly,
review, upgrade, modification, repair,
maintenance, operation and packaging,
as well as instruction related to said
equipment, and service regarding
defense
know-how,
including
instruction, training and consulting
regarding said know-how.

(b)

The licensing authority may exempt an applicant
from the requirement to obtain a defense export
license under this section, with regard to types
of defense exports or a certain defense export, as
set forth in regulations.

Defense marketing
16. The licensing authority shall not grant a defense export
license required to
license for a defense export transaction unless the
obtain a defense export
applicant obtained a defense marketing license for that
license
transaction, unless an exemption from the requirement
to obtain a defense marketing license was set forth
pursuant to section 14(b); a defense marketing license
that was granted does not obligate the licensing
authority to grant a defense export license for the same
transaction.

Re–transfer
license

17.

End-use modification 18.
license

A defense export license holder whose license includes
a stipulation with regard to the identity of the end-user,
shall not allow the end-user to transfer the defense
equipment or the defense know-how in his possession to
a different person, unless the defense export license
holder obtains a license for such transfer from the
licensing authority (in this law – re-transfer license),
and in accordance with the provisions of said license.

A defense export license holder whose license includes
a stipulation with regard to the end-use, shall not allow
the end-user to modify the end-use of the defense
equipment or the defense know-how in his possession,
unless the defense export license holder obtains a
license for such modification from the licensing

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authority (in this law – end-use modification license),
and in accordance with the provisions of said license.

License for defense 19.
equipment in transit

(a)

A person shall not export equipment in transit
without obtaining a license from the licensing
authority (in this law – license for export of
defense equipment in transit), and in accordance
with the provisions of said license; in this law,
“defense equipment in transit” - defense
equipment originating from outside of Israel,
through one of the border stations as implied in
section 7 of the Entry Into Israel Law, 57111952, on its way outside of Israel, as well as said
defense equipment entering into Israel or
intended to enter into Israel in other ways, on its
way outside of Israel, as long as it is unloaded
from its means of transportation prior to its
departing from Israel.

(b)

The licensing authority may exempt an applicant
from the requirement to obtain a license for
export of defense equipment in transit under this
section, with regard to types of defense
equipment in transit or a specific defense
equipment in transit, as set forth in regulations.

(c)

The provisions of section 15 shall not apply to
an export of equipment as described in this
section.

License for transfer to 20. (a)
Palestinian Civil
Jurisdiction areas

A person shall not transfer controlled dual-use
equipment included in an order pursuant to
paragraph (2) of the “controlled dual-use
equipment” definition unless he has obtained a
license for such transfer from the licensing
authority, (in this law – transfer license to the
Palestinian Civil Jurisdiction areas), and in
accordance with the provisions of said license.

(b)

Section 7 of this law shall not apply to the
transfer pursuant to this paragraph.

License for Brokering 21. (a)
Between Foreign
Entities

An Israeli resident or an Israeli corporation shall
not engage in a brokering activity between
foreign entities, unless they have obtained a
license from the licensing authority (in this law
– license for brokering between foreign entities),

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and in accordance with the provisions of that
license; however, the provisions of this section
do not derogate from the provisions of section
15 of the Criminal Law; for this purpose –
“brokering between foreign entities activity” one of the following activities, taking place in
Israel or outside of Israel, whether the combat
equipment or the defense equipment regarding
to which the said activity occurs leaves Israel
before the activity or not:
(1)

Forging ties between parties to contract
in a transaction regarding the transfer of
combat equipment or missile equipment;
from one foreign state to another foreign
state;

(2)

Participating in negotiations toward a
contract between parties in a transaction
as described in paragraph (1) above;

(3)

Representation of a party to a transaction
as described in paragraph (1) above;

(4)

Purchasing of defense equipment or
defense know-how for the purpose of of
contracting in a transaction as described
in paragraph (1) above;

(5)

Assisting activities aimed to realize a
transaction as described in paragraph (1)
above, as set forth by the minister in
regulations.

“combat equipment or missile equipment” – including
defense know-how or a defense service regarding such
equipment.
(b)

The licensing authority may exempt an applicant
from the requirement to obtain a license for
brokering between foreign entities under this
section, with regard to types of brokering
between foreign entities activities or with regard
to types of combat equipment and missile
equipment, or with regard to brokering activities
between certain foreign entities, as set forth in
regulations.

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Brokering between 22.
foreign entities
subject to Security
Council resolution

(a)

Without derogating from the provisions of
section 21, no Israeli citizen, Israeli resident or
Israeli corporation shall engage in brokering
activities between foreign entities in violation of
a resolution of the Security Council of the
United Nations (in this law – the security
council) forbidding or limiting the transfer of
combat equipment or missile equipment to those
entities.

(b)

Security council resolutions as described in
section (a) shall be published on the Licensing
Authority’s website and in the official gazette.

Chapter E: The Licensing Authority and Advisory Committees

Tasks of the
licensing
authority

23.

Advisory committees 24.

The licensing authority shall control defense export
according to the provisions of this law, shall administer
the defense export registry according to the provisions
of chapter C, shall decide on license applications
submitted under chapter D, and shall conduct other
activities it requires under this law.

(a)

(b)

The minister shall appoint advisory committees
to make recommendations to the licensing
authority with regards to the granting of defense
marketing licenses, re-transfer licenses, licenses
for end-use modification, licenses for export of
defense equipment in transit and licenses for
brokering between foreign entities (in this law –
advisory committees):
And these are the members of the advisory
committees:
(1)

Employees of the ministry of defense
appointed by the minister, one of whom
shall serve as chairperson;

(2)

Two employees of the ministry of
foreign affairs;

(3)

In advisory committees regarding
controlled dual-use equipment – an
employee of the ministry of industry,

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trade and labor appointed by the minister
of industry, trade and labor;
(4)

(c)

Employees of defense forces, as
determined by the minister, authorized
for the purpose of this section by the
head of the defense force where they are
employed; for this purpose, “defense
forces” – each of the following: Israel
Defense Forces, Israel Security Agency,
Mossad, Israel Police and the
Penitentiary Service.

A member of an advisory committee can be
appointed only after it was determined by the
authorized official under the Israel Security
Agency Law, 5761-2002, that he holds the
required security clearance for that position.

Chapter F: Coordination with the Ministry of Foreign Affairs

Participation of
the Ministry
of Foreign Affairs
in the advisory
committees

Coordination with
The Ministry of
Foreign Affairs
regarding granting
of licenses

25.

26.

Each of the advisory committees shall include as its
members employees of the ministry of foreign affairs,
as set forth in section 24.

(a)

Should the representative of the minister of
foreign affairs voice his/her reservation
regarding an advisory committee's
recommendation and the advisory committee
considered not to take into account this
reservation, or should the advisory committee
recommend the granting or the refusal to grant a
defense marketing license, a re-transfer license,
an end-use modification license, a license for
export of defense equipment in transit or a
license for brokering between foreign entities,
and the licensing authority should decide after
consideration
not
to
accept
this
recommendation, the reservation or committee
recommendation, as appropriate, will be brought
before the director of the defense export control
division at the ministry of defense and the
director of the strategic affairs division at the

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23
ministry of foreign affairs for their joint
deliberation.
(b)

Consultation with
The Ministry of
Foreign Affairs
on export licenses

27.

In case the joint deliberation as described in
paragraph (a) did not reach a conclusion, the
matter shall be resolved between the directorgeneral and the director general of the ministry
of foreign affairs; should no agreement be
reached between the director-general and the
director general of the ministry of foreign
affairs, the matter will be resolved by the subcommittee of the ministerial committee for
national security as implied in section 47(c).

The licensing authority shall consult with the
representative of the ministry of foreign affairs in a
manner set forth in regulations, prior to the issuance of
an export license.

Chapter G: Reporting Requirements and Inspection Authority

Reporting
obligations

28.

(a)

A license holder under chapter D shall submit to
the licensing authority written reports once a
year regarding his activities requiring a license
under chapter D, in accordance with forms set
forth in regulations.

(b)

The licensing authority may require a person
who was exempt from the requirement of
obtaining a defense marketing license under
chapter D, to submit reports as set forth in
section (a) above, regarding his defense
marketing activities.

(c)

The aforesaid reports in section (a) and section
(b) shall include amongst others details
regarding the defense marketing or defense
export activities, as applicable, including
defense marketing destinations, details regarding
the identity of the interim users and the enduser, and regarding the end-use of the defense
equipment, defense know-how or the defense
service, as applicable.

(c)

A corporation registered in the Defense Export
Registry shall notify the licensing authority

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about any change in the controlling shareholders
of the corporation.

Inspection
authority

29.

Inspecting defense
equipment

30.

For the purpose of supervision of execution of
the provisions of this law, the licensing authority or
whom it shall authorize amongst the employees of the
ministry of defense, is authorized –
(1)

to demand from any relevant person included in
the registry to supply it with information or
documents concerning a person conducting an
activity requiring a license under chapter D; for
this purpose “documents” – including a
certification, report or ledger or output as
implied in the Computers Law, 5755 – 1995;

(2)

to enter any premises if it has reasonable
grounds to assume that a person included in the
registry or someone on his behalf are keeping
defense equipment or defense know-how or are
providing a defense service at that locations, in
order to check whether the provisions of this law
are fulfilled, as long as it does not enter a place
that is used for solely for residential purposes
unless a court injunction is issued; entry onto a
premises under this section will take place with
the accompaniment of the holder of the property
or his representative, however refusal to the
request of the representative of the licensing
authority to accompany him, can not hinder the
licensing authorities’ activity under this section.

(a)

The licensing authority or whom it shall
authorize amongst the employees of the ministry
of defense for this purpose is authorized to
request defense equipment from its owner or
holder for the purpose of inspecting whether the
defense equipment meets the conditions of the
license that has been granted pursuant to this
law.

(b)

Inspection of the defense equipment by the
licensing authority or whom it has authorized for
this purpose under section (a), will be
conducted, if possible, in the offices of the
holder of the defense equipment or in the offices
of the licensing authority provided the defense

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equipment will be returned to its holder no later
than fifteen days from the day it was taken.

Obligation to keep
records

31.

(a)

An export license holder shall administer a
record of the information concerning any
defense export transactions that he/she has
conducted. The said record shall include details
concerning the licensed defense equipment,
defense know-how or defense service, as well as
details regarding the interim users and the enduser, and the end-use of the licensed defense
equipment, defense know-how or defense
service, dates when the defense export was
carried out and additional details as shall be set
forth in regulations.

(b)

The defense export license holder will keep the
record as described in section (a) above, as well
as any document related to the executed defense
export transaction, for ten years from the date of
completion of the defense export; manner of
record keeping shall be set forth in regulations.

Chapter H : Criminal Penalties

Offences

32.

(a)

A person who has committed one of the
following will be sentenced to – three years'
imprisonment or a fine which is thirty times
greater than the fine set out in section
61(a)(4) of the Criminal Law:

(1)

Commits an act of defense
marketing without holding a
defense marketing license or not
pursuant to the conditions of the
license, contrary to the provisions
of section 14;

(2)

Carries out a defense export,
without holding a defense export
license or not pursuant to the
conditions of the license, contrary
to provisions of section 15;

(3)

Exports defense equipment in
transit without holding a license

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for exporting defense equipment
in transit or not pursuant to the
conditions of the license, contrary
to the provisions of section 19.

(b)

Offenses in 33.
severe
circumstances

(4)

Transfers to the Palestinian Civil
Jurisdiction areas controlled dualuse equipment included in an
order issued under paragraph (2)
of the “controlled dual-use
equipment” definition without
holding a license for transfer to
the Palestinian Civil Jurisdiction
areas or not pursuant to the
conditions of the license, contrary
to section 20.

(5)

Engages in brokering between
foreign entities without holding a
license for brokering between
foreign entities or not pursuant to
the conditions of the license,
contrary to section 21.

A person who engages in brokering between
foreign entities in violation of a security council
resolution as stated in section 22, will be
sentenced to 5 years imprisonment or to a fine
fifty times the fine set forth in section 61(a)(4)
to the Criminal Law.

For an offense committed pursuant to section 32(a) in
severe circumstances, the sentence will be five years
imprisonment or a fine that is fifty times greater than the fine
set out in section 61(a)(4) of the Criminal Law. In this section
"severe circumstances" – one of the following:
(1)

The defense marketing activity subject as an offence
was intended to advance a defense export transaction
with the enemy, or the entity destined to receive the
defense equipment, defense know-how or defense
service regarding which the defense export transaction
subject as an offence was carried out is an enemy; in
this section, “enemy” - as defined in the Enemy Trade
Ordinance, 1939;

(2)

The defense know-how, defense equipment or defense
service was classified, according to the determination of

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the security entity authorized to make security
classifications;

Responsibility 34.
of company
officer

(3)

The defense marketing activity subject as an offence
was intended to advance a defense export transaction
with a foreign entity regarding to whom a security
council resolution was adopted as set forth in section
22, or that the defense export subject as an offence was
destined to said foreign entity;

(4)

The defense marketing activity or defense export
activity subject as an offence was in violation to any
one of the stipulations of the defense marketing license
or the defense export license, as applicable, pertaining
to the restriction on marketing or export to certain
countries.

(5)

The brokering activity between foreign entities was
intended to further a transaction with the enemy.

(a)

An officer in a corporation must supervise and do
everything possible to prevent offenses pursuant to
section 32 by the corporation or by any one of its
employees; a person who violates this provision, is
sentenced to a fine as stated in section 61(a)(4) of the
Criminal Law; for this purpose, "an officer"– is an
active director, partner, with the exception of a limited
partner, or other official whose responsibilities on
behalf of the corporation include the areas of
responsibility of the committed offense.

(b)

Should an offense pursuant to section 32 be committed
by the corporation or by any one of its employees, it is
held that the officer in the corporation violated his duty
pursuant to sub-section(a), unless he/she prove that
he/she did their utmost to fulfill his/her duty.

Chapter I : Civil Fines and Financial Sanctions

Civil fine

35.

Should the licensing authority have reasonable grounds to
assume that an act or a failure to act, that is set out as an
offense pursuant to section 32, has occurred, it is authorized to
impose a civil fine in the amount of 15% of the fine set out in
the same section, upon the person who commits the act or who
fails to act.

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Financial
sanction

36.

(a)

Should the licensing authority have reasonable grounds
to assume that a person did not fulfill his/her reporting
obligation pursuant to section 28(a) and (b), it is
authorized to impose a financial sanction upon the
person in the amount of 3% of the fine set out in section
61(a)(3) of the Criminal Law for every day in which the
violation continues.

(b)

Should the licensing authority have reasonable grounds
to assume that a person did not fulfill his/her reporting
obligation pursuant to section 28(d), or did not fulfill
his/her obligation to keep records pursuant to section 31
of this law, it is authorized to impose a financial
sanction upon the person in the amount of the fine as set
forth in section 61(a)(4) of the Criminal Law.

.
Continued 37.
violation and
repeated
violation

Reduced
sums

38.

(a)

In a continued violation, except for a violation as stated
in section 36(a) above, the fiftieth part of the financial
sanction or the civil fine that is set out for the same
violation, will be added for each day the violation
continues.

(b)

In a repeated violation, a sum that is equal to half the
financial sanction or the said fine shall be added to the
financial sanction or the civil fine that could have been
imposed if it were a first violation; regarding this
section "repeated violation" – is the violation of one of
the provisions of this law, within two years of the
previous violation of the same provision for which a
financial sanction or civil fine was imposed upon the
violator or for which he/she was convicted.

(a)

The licensing authority is not authorized to impose a
financial sanction or civil fine that is less than the
financial sanction or civil fine set out in this chapter
unless it is pursuant to sub-section (b).

(b)

The Minister, with the Minister of Justice's consent, is
authorized to set forth in regulations cases,
circumstances and considerations, for which a financial
sanction or civil fine may be imposed in an amount that
is less than that which is set out in this law, and at rates
to be determined by him.

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Payment
39.
requirement

(a)

A financial sanction or civil fine shall be paid,
according to a written demand by the licensing
authority, within thirty days of its submittal; the
demand will be issued following an advance
notice to the person to whom the demand is
designated, and he/she has been afforded the
opportunity to make his/her arguments; such
notice shall state that due to continued violation
the violator will be imposed an additional civil
fine or financial sanction according to section
37.

(b)

The filing of an appeal to the court for
administrative matters against the payment of a
civil fine or financial sanction, in accordance
with items 21(23) or 32(4) of the first addendum
to the Law on the Courts of Administrative
Affairs, 5760 – 2000, does not delay the
payment of the financial sanction or civil fine,
unless the licensing authority has consented to
this or the court has instructed so.

(c)

Should an appeal as stated in section (b) above
be accepted, the financial sanction or civil fine
shall be returned, with the addition of linkage
and interest differentials from the day of its
payment until its return.

Updated
40.
sum of the
financial
sanction and
civil fine

The financial sanction and civil fine shall be according to the
sum updated on the day of the request of payment, and if
an appeal has been filed and the court discussing the appeal has
instructed upon a delay in its payment – according to its
updated sum on the day of the decision of the appeal.

Linkage
41.
and interest
differentials

Should the financial sanction or civil fine not be paid on time,
linkage differentials shall be added thereto for the arrears
period until it is paid.

Collection

Financial sanctions and civil fines shall be collected to the State
Treasury and the Tax Ordinance (collection) shall apply to their
collection.

42.

Maintaining 43.
criminal
responsibility

(a)

A civil fine payment shall not derogate from the
criminal responsibility of a person for an offense
pursuant to this law.

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30
(b)

Should an indictment be filed against a person for an
offense pursuant to this law, this person shall not be
charged with a civil fine. In case a civil fine was already
paid - the sum paid shall be reimbursed with the
addition of linkage and interest differentials from the
day of its payment until its reimbursement.

Chapter J : Additional Provisions

Preserving law

44.

This law does not derogate from the provisions of any
other law.

Implementation
and regulations

45.

The Minister is in charge of implementing this law and
is authorized, upon approval of the Knesset foreign
relations committee, to establish regulations for its
implementation and to issue orders; regulations
regarding sections 14(b), 15(b), 19(b) and 21(b) shall be
established in consultation with the minister of foreign
affairs and regulations regarding sections 27 and 47(c)
shall be established with the consent of the minister of
foreign affairs.

Fees

46.

The Minister may establish in regulations, following
authorization by the Knesset Foreign Relations and
Defense Committee, fees for license requests and
contestation filings pursuant to this law, that shall be
paid to the Defense Export Control Division at the
Ministry of Defense.

Applicability to
the State

47.

(a)

The provisions of this law shall not apply to the
state, however they shall apply to defense
marketing or defense export activities regarding
defense equipment, defense know-how or a
defense service, when executed by the party that
developed or produced said equipment or knowhow or provided said service, pursuant to an
agreement between the State of Israel and
another state.

(b)

A procedure overseeing defense exports
pursuant to an agreement between the State of
Israel and another state, outside the scope of
section (a), shall be set forth in a government
decision; the minister of defense shall notify the

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31
Knesset foreign relations committee on that
procedure.
(c)

Amendment to the 48.
Law of the Courts of
Administrative Affairs

Defense exports pursuant to an agreement
between the State of Israel and another state, of
a scope to be determined in regulations, shall be
submitted by the minister of defense for the
approval of a sub-committee of the ministerial
committee for national security; chaired by the
Prime minister and with the membership of the
minister of defense, the minister for foreign
affairs, the minister of justice and the minister of
finance.

In the Courts of Administrative Affairs Law, 57602000, in the first addendum following section 29 the
following shall appear:

(1) In item 21, following paragraph 22 shall be written:

"(23)
2007";

Defense Export Control Law, 5766-

(2) In item 32 –
(a)

In the headline, following "financial
transaction shall be written "and civil
fines";

(b)

Following paragraph (3) shall be written:
"(4) The decision of the licensing
authority under chapter I of the defense
export control law, 5766-2007."

Entry into
49.
force and
transition provisions

(a)

This law shall enter into force on December 31st,
2007, (in this section – date of entry into force),
accept for the following sections, which shall
enter into force on a later date as stated below:
(1) Section 19 as well as all other sections in
this law relating to licenses for defense
exports in transit - 30 days from the day the
minister shall publish a notice in the official
gazette;

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(2) Sections 3(a)(2), 21 and 32(a)(5) and (b) - 30
days from the day the minister shall publish
a notice in the official gazette, following
consultation with the minister of foreign
affairs and with the approval of the Knesset
foreign relations committee.
(b)

Initial regulations under this law will be
presented to the Knesset foreign relations
committee for its approval no later than October
31st, 2007.

(c )

Despite the provisions of this law, a negotiation
permit or an export permit, or a transfer permit
to the Palestinian civilian jurisdiction, which
were granted prior to the date of entry into force,
pursuant to the Control of Commodities and
Services Order (Defense Equipment and
Defense know-how Export), 5752 – 1991 shall
be deemed as though they were granted pursuant
to the provisions of this law and shall continue
to be valid until their expiry, unless cancelled
under the provisions of this law

Ehud Olmert

Ehud Barak

Prime Minister

Minister of Defense

Shimon Peres

Dalia Itzik

President of the State of Israel

Speaker of the Knesset

Unofficial Translation - MOD, Office of the General Counsel