The Department for Control of Trade in Strategic Goods (STGD) may refer a violation to the Ministry for formal administrative investigation when a legal or natural person:
- Did not respond satisfactorily to a warning letter issued by the STGD
- Failed to take the actions specified in a warning letter
- Has engaged in repeated non-compliant conduct
- Has engaged in severe conduct that does not meet the conditions for criminal prosecution
- Demonstrated reluctance or refusal to cooperate with the Department in attempting to identify the facts concerning a violation
- Has engaged in behaviors that constitute aggravating factors, as described in Article 24 of Administrative Instruction No. 14/2013
Administrative penalties can be issued by the Ministry instead of, or in addition to, criminal penalties.
The Ministry may issue the following administrative penalties, according to Article 30 of the Law for the Trade of Strategic Goods:
- Limitation, annulment, or revocation of registration, with approval of the Commission
- Imposition of fines of up to 5,000 euros or twice the value of the strategic good or related service under the contract, or as assessed by the Ministry, whichever is greater
The STGD can choose to make the payment of an administrative monetary penalty a condition for the issuance of a new license or the restoration of a previously issued license, for up to one year after the fine was imposed.
Please note that Administrative Instruction No. 14/2013 allows the Ministry to take into consideration mitigating and aggravating factors when making decisions about administrative penalties.
Mitigating factors are:
- The person made a voluntary self-disclosure of the violation.
- The person has an effective internal compliance program and its overall compliance efforts have been of high quality.
- The violation was an isolated occurrence or the result of a good-faith misinterpretation.
- A required license for the transaction in question likely would have been granted upon request.
- The person has never been convicted of a criminal violation related to strategic goods or related services.
- In the past five years, the person has not entered into a settlement of an administrative enforcement case dealing with strategic goods or related services or been found liable in an administrative enforcement cases dealing with strategic goods or related services.
- In the past three years, the person has not received a warning letter from the Ministry.
- In the past five years, the person has not otherwise violated the Law for the Trade of Strategic Goods.
- The person has cooperated “to an exceptional degree” with the Ministry or other enforcement bodies.
- The person provided “substantial assistance” to the Ministry or other enforcement bodies in investigating another person for a violation of the law.
- The violation was not likely to harm Kosovo’s national security or foreign policy interests.
- The person played a minor role in the violation.
Aggravating factors are:
- The person made a deliberate effort to conceal the violation.
- The person’s conduct demonstrated a serious disregard for its compliance responsibilities or a leading role in the violation.
- The violation was significant because of the sensitivity of the items or the reason for controlling their shipment to the destination.
- The strategic goods or services were likely to be destined for an embargoed country or entity.
- The quantity and/or value of the goods in the transaction was high.
- The same transaction resulted in the concurrent violation of laws and sub-legislation other than those enforced by the Ministry of Trade and Industry.
- The person was previously convicted of a criminal violation involving strategic goods and/or related services.
- In the past five years, the person entered into a settlement of a strategic goods administrative enforcement case with the Ministry or was found liable in an administrative enforcement case.
- In the past three years, the person received a warning letter.
- The person regularly trades in strategic goods or provides related services but lack a systematic compliance effort.