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The tax treaty that is in force between Switzerland and Liechtenstein makes certain Swiss laws applicable in Liechtenstein. According to a proclamation of October 25, 2016, the Swiss War Material Act,[1] with the exception of a few provisions,[2] is one of the laws applicable in Liechtenstein.[3] Liechtenstein therefore also prohibits the direct financing of the development, manufacture, or acquisition of prohibited war material, as well as indirect financing if the indirect financing is used to circumvent the prohibition on direct financing.[4] Anyone who intentionally violates the prohibition of financing and cannot claim an exemption is liable to a custodial sentence not exceeding five years.[5]

The government of Liechtenstein is designated as the licensing authority for the War Material Act.[6]  No governmental lists could be located that provide for covered companies.

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Prepared by Jenny Gesley
Foreign Law Specialist
November 2016


[1] Bundesgesetz über das Kriegsmaterial (Kriegsmaterialgesetz, KMG) [War Material Act], Dec. 13, 1996, SYSTEMATISCHE RECHTSSAMMLUNG [SR] [SYSTEMATIC COLLECTION OF LAWS] 514.51, https://www.admin.ch/opc/de/classified-compilation/19960753/201302010000/514.51.pdf, archived at http://perma.cc/2E49-3K33, unofficial English translation available at https://www.admin.ch/opc/en/classified-compilation/19960753/201302010000/514.51.pdf, archived at http://perma.cc/G49X-BDXT.

[2] Liechtenstein does not apply articles 4, 16a, 16b; article 30, para. 2, sentence 1; or article 32 of the Swiss War Material Act, nor the provisions regarding brokerage, transfer of intellectual property, including know-how, or the granting of rights thereto.

[3] Kundmachung vom 25. Oktober 2016 der aufgrund des Zollvertrages im Fürstentum Liechtenstein anwendbaren schweizerischen Rechtsvorschriften (Anlagen I und II) [Proclamation of October 25, 2016, Concerning the Swiss Laws which Are Applicable in the Principality of Liechtenstein in Accordance With the Tax Treaty], LIECHTENSTEINISCHES LANDESGESETZBLATT NUMMER [LIECHTENSTEIN LGBL.-NR.] [LIECHTENSTEIN OFFICIAL LAW GAZETTE NO.] 2016.329, https://www.gesetze.li/lilexprod/ifshowpdf.jsp?lgblid=2016329000&version=1&signed=n&tablesel=0, archived at http://perma.cc/DQ7S-EJGP.

[4] Gesetz vom 10. Dezember 2008 über die Vermittlung von und den Handel mit Kriegsmaterial (Kriegsmaterialgesetz; KMG) [War Material Act], LIECHTENSTEIN LGBL.-NR. 2009.039, as amended, arts. 7b, 7c, https://www.gesetze.li/lilexprod/ifshowpdf.jsp?lgblid=2009039000&version=3&signed=n&tablesel=0, archived at http://perma.cc/9UDD-ZV6S.

[5]  Id. art. 29b.

[6]  Verordnung über das Kriegsmaterial (Kriegsmaterialverordnung, KMV) [War Material Ordinance], LIECHTENSTEIN LGBL.-NR. 2009.073, as amended, art. 9, https://www.gesetze.li/lilexprod/ifshowpdf.jsp?lgblid=2009073000&version=2&signed=n&tablesel=0, archived at http://perma.cc/LR8F-N9UL.

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Last Updated: 10/02/2017