Reform of the Flemish Arms Trade Decree: Meeting the industry’s needs

Introduction

The current Arms Trade Decree has long been perceived as complex and inflexible, while the international context has changed significantly. Factors such as increasing defense cooperation within Europe, new European regulations, and the growing importance of economic and military security have made an update necessary. Additionally, export policy has been the subject of much public scrutiny and debate. The wars in Ukraine and the Middle East have increasingly demonstrated the need for a strong defence industry and an adequate export control framework. Following this wide array of developments, the Flemish government has proposed reforming the existing Arms Trade Decree. The new Arms Trade Decree was adopted by the Flemish parliament on 15 July 2026. It will only enter into force on 31 December 2027.

The new Decree seeks to strike a balance between facilitating legitimate trade on the one hand and ensuring effective control over proliferation risks, abuse, and potential human rights violations on the other. Furthermore, there is an explicit focus on close alignment with the European regulatory framework and on avoiding “gold plating.” In this way, the Flemish Government aims to create a level playing field for both Flemish companies and research institutions and to promote participation in European cooperation projects. The Walloon Government is also working on an update of their Arms Trade Decree, while the Brussels Government has not initiated any legislative process in this respect.

Key points of the reform

One of the key changes involves the introduction of a more differentiated licensing system. Under the old Decree, only transactions to and from the Netherlands and Luxemburg were exempted from licensing requirements. The new Decree introduces a new system: not only is no export authorisation necessary for the export of defense related items to the Netherlands and Luxemburg, but the new Decree takes the risk profile of each transaction into greater account across a wider range of jurisdictions. For exports to low-risk/friendly jurisdictions, authorisation requirements are limited or simplified. For example, no authorisation will be required for the export of defense-related items to public agencies or the armed forces of EER countries, NATO Member States or Switzerland, humanitarian aid or as part of an international cooperation agreement (designated as such by the Flemish government). The new Decree also expands the possibility for the Flemish Government to adopt general authorisations related to international cooperation, certified exporters, exposition, repairs or certain crises. For exports to higher-risk jurisdictions an individual authorisation and more rigorous assessment remain required. This risk-based approach is intended to lead to more efficient procedures and shorter processing times, without compromising the necessary oversight.

Another key change concerns the Arms Trade Decree’s catch-all clause. Since 2012 the Flemish Arms Trade Decree includes a unique catch-all clause which allows the Flemish authorities to impose an authorisation requirement on goods which, on their own or in combination with other goods, substances or organisms, can cause serious damage to persons and which can be utilized as a means of committing violence in an armed conflict. As this catch-all fell out of use, it will be amended to cover  other defense related items that are not listed on the EU Common Military List and that have been modified for military use or are used for that purpose. This definition focuses on the objective characteristics of the items rather than on their intended end-use. The new Decree provides that an authorisation is required for the export and transit of these other defense-related items if the exporter has been informed that there are reasons for concern related to the transaction based on criteria 1-4 of Council Common Position 2008/944/CFSP. Moreover, if the exporter has reasonable grounds for suspecting that there are reasons for concern, they are required to inform the authorities about it. The update of the catch-all could be an indication of the Flemish authorities applying it more often in the future.

In addition, the new Decree includes various measures aimed at administrative simplification. The so-called “only once” principle is further entrenched, meaning that companies will have to submit the same information less frequently. For example, once an authorisation has been granted by a different regional authority (e.g., for the export from Wallonia via Flanders outside of the European Union) there is no longer a need to apply for another authorisation from the Flemish authorities. Another example of administrative simplification concerns the requirement of obtaining a “prior approval”. Under the old Arms Trade Decree, all exporters of military items needed to be in possession of prior approval. Additionally, prior approval is no longer needed for exporters that already possess an EU-certificate and for a limited number of transactions (e.g., export to the armed forces of a NATO Member State).

Finally, the enforcement framework is also being revised. The new Arms Trade Decree is integrated with the Flemish Enforcement Framework Decree, ensuring more uniform and effective enforcement, with room for differentiation depending on the nature and severity of the violation. The integration of these enforcement mechanisms takes place against the backdrop of increased attention for enforcement at the Flemish level. In its most recent annual reports, the Flemish authorities announced they had considerably enhanced their enforcement practices, increasing the number of shipments and shipping documents audited. This resulted in 20 violations being established and EUR 4,5 million worth of items being seized in 2025 and the first quarter of 2026.

Main considerations for the industry

Overall, the new Decree introduces a more modern and coherent regulatory framework for the defense trade in Flanders. By combining flexibility with a risk-based approach and a strengthened focus on end-use control, the new Decree aims to both support the competitiveness of businesses and maintain the necessary safeguards in terms of safety and compliance. For companies and other stakeholders, the new Decree eases the regulatory burden, but not without attaching certain conditions. To fully benefit from the changes made by the new Decree, companies should check their existing authorisations, evaluate whether a general authorisation or authorisation exemption could apply and consider whether certification could be worth it for them.