Royal Decree 1638/1999, of 22 October, determines in the second paragraph of point 4 of Article 6 that, the process of alienation, will be developed in the corresponding Order. Article 8 (3) also determines that the documentation and processing for the cases of deliveries of material or defence products on the occasion of military operations or emergency situations shall be agreed in the Development Order.

Following the precepts of the aforementioned Royal Decree, and also taking into account the situations that are in fact produced, such as the subscription to a system of purchase-sale of material managed by an international agency, and the existence of surplus material and suitable for the service susceptible to disposal, the procedures laid down in this Order have been drawn up.

On the other hand, the final disposition of the repeated Royal Decree empowers the Minister of Defense to give the necessary provisions for the development of the Royal Decree, so in its virtue, I have:

First. Object.

1. This Order regulates the scheme of disposal by the Ministry of Defence of movable property and defence products referred to in the following paragraph, with exceptional character as laid down in the Law on the Heritage of the State and Regulation for its implementation, provided that the operability of own force and national security is not put at risk.

2. The purpose of this Order is the disposal of materials, movable property and defense products useful for the service and affected to the use of the Armed Forces necessary for the military operations, which appear in their respective inventories; as well as those supplies that, without being in inventory, are accurate for the development of the missions in which the Armed Forces participate.

Second. Scope of application.

1. This legislation shall apply to contracts for the disposal of the goods listed in the first paragraph, which are formalised with other public administrations or public law entities, foreign governments, entities of a nature non-profit-making assistance, international organisations of which the Spanish State is a member, or because of commitments resulting from international agreements.

It will also apply to the delivery orders of those supplies needed for the development of operations in which the Armed Forces participate or to the attention of emergency situations. In these cases, the Minister of Defense or the authority in which this delegate may authorize the Operations Command of the Force to carry out such deliveries, in combined operations with Armed Forces of other countries, in humanitarian operations, maintenance of peace and the like.

2. In the cases not covered by this Order, the State Heritage Law and the Regulation for its application will be governed.

Third. Form of disposal.

The disposal of movable and defense products regulated in this Order shall be carried out by direct disposal through a negotiated procedure with the requesting entity or entities.

Fourth. Competence for disposal.

1. The body empowered to agree on the disposal of the files that are regulated in this Order is the Minister of Defense.

2. The following Council of Ministers Agreement will be necessary in the following cases:

(a) When the economic estimate of the value of the disposal exceeds 2 billion pesetas.

(b) Where for exceptional reasons, duly substantiated in the file, it is more advisable for the interests of the State to propose delivery for a symbolic price.

Fifth. Furniture And Defense Products Disposal Board.

1. The Ministry of Defense is the Ministry of Defense of the Board of Directors of Furniture and Defense Products as an organ of support to the competent body to agree on disposal.

2. It shall be organised organically in the Secretariat of State of Defence, who shall provide it with the means necessary for its action, and its composition shall be as follows:

1. President: The Director General of Armament and Material. In case of vacancy, absence, illness or other legal cause, it will be replaced by the Board member of greater hierarchy, seniority and age, by this order, from among its components.

2. Member:

(a) A representative of the General Directorate of Armament and Material appointed by the Director-General of Armament and Material.

b) A representative of the Directorate-General for Economic Affairs, appointed by the Director-General for Economic Affairs.

c) A representative of the General Legal Counsel of the Ministry of Defense, appointed by the General Legal Counsel.

d) A representative of the General Defense Intervention designated by the General Defense Controller.

3. Secretary: An Intrend Officer of the General Directorate of Armament and Material or the Directorate-General for Economic Affairs.

3. The functions and powers of the Board shall be to instruct the disposal files, to formulate the valuation proposals, to negotiate the disposal and may use the collaboration of entities or companies that are necessary for this purpose and formulate the proposals for disposal.

4. Its action regime shall be in accordance with the provisions relating to the collective bodies contained in Law 30/1992 of 26 November 1992 on the Legal Regime of Public Administrations and the Common Administrative Procedure.

Sixth. Ordinary disposal procedure.

1. Prior to the initiation of the case of disposal, the declaration of the alienation of the movable and useful goods and of defence products for the service shall be precise. The ability to declare alienation corresponds to the Minister of Defense.

2. The procedure shall be initiated to obtain the declaration of alienation with the request for acquisition by the Administrations, foreign governments or entities referred to in Article 2 (1), of movable property, materials or products of defense, useful for the service included in the inventory of the Armed Forces and necessary for military operations, as indicated in Article 1. Where appropriate, the procedure may be initiated prior to the receipt of the said request for purchase. The body receiving the application or, where appropriate, the body which proposes the initiation of the procedure, shall forward such a request or proposal to the Director-General of Armament and Material, who shall carry out the necessary formalities to obtain the statement of alienation.

They will be required for the declaration of alienation, the previous reports, according to the body to which the movable property is attached, by the Chief of the Defense Staff, by the Chief of Staff of the corresponding Army, or of the Deputy Secretary of Defense, and in any case, that of the Director General of Armament and Material, as well as the authorizations and reports provided for in the Regulation of foreign trade of defense material and dual use, approved by the Royal Decree 491/1998, of 27 March, when it is applicable, or of any other body, where the requires the nature of the material in question.

3. The Board shall initiate the disposal file and, in order to determine the valuation of the movable property or defence products, shall request the technical body to inform the technical body of the alienation of the movable property or defence products. corresponding. The Board shall also request the General Intervention of the Defense and the General Legal Counsel to report and propose to the Secretary of State for Defense the valuation of the goods subject to the file. The valuation shall take into account the state of life and the current market value, so that the disposal does not involve economic taxation of the Ministry of Defence, with the exception of the assumption referred to in point 2.b) of the fourth paragraph.

The Secretary of State of Defense will approve the valuation of movable and defense products.

If any of the cases referred to in point 2 of the fourth paragraph are met, the file shall be submitted to the Council of Ministers, in order to authorize the Minister of Defense to issue the disposal agreement.

The Chief of the Defense Staff, the Chiefs of Staff, the Deputy Secretary of Defense, and the Director-General of Armament and Material will determine, through instructions emanating from their authority, within the scope of their respective competences, the bodies responsible for carrying out the assessments.

4. The disposal file will continue with the negotiation of the price and how many terms the disposal to be carried out. The outcome of the negotiation shall be reflected in the draft disposal contract.

5. Once the draft contract has been drawn up, it will be submitted to the General Defense Intervention and the General Legal Counsel. With the favourable reports of these and, where appropriate, the Agreement of the Council of Ministers referred to in point 2 of the fourth paragraph, the disposal agreement shall be agreed and the contract shall be approved by the Minister of Defence. The disposal agreement shall in itself involve only the disaffection and the low inventory of the movable property or defence products in question.

6. The contract shall be approved by the competent body and the legal representative of the entity, body or entity acquiring the contract, by means of an administrative document, which shall be sufficient to access any public register. Such a document may, however, be raised to public deed upon request by the acquirer, with the costs arising from his/her being at his expense.

7. Any disputes that may arise in the enajenations regulated in this Order shall be resolved by the Judicial-Administrative Jurisdictional Order, in accordance with the provisions of Article 7.2 of the Royal Decree of Law 2/2000 of 16 June, approving the recast text of the Law on Public Administrations Contracts, which should be included in the contracts to be formalized. Where there are special reasons for preventing the application of the general rules, subject to compliance with the requirements laid down in the legislation in force, such contracts shall be governed by what the parties agree with the rules and practices. of international trade.

8. By way of derogation from the procedure described in numbers 2 to 6 of this paragraph, the following procedure shall apply in the case of the following procedure.

When the Ministry of Defense is subscribed to any of the systems of purchase-sale of material managed by an international agency, and the corresponding contract or agreement has been concluded in accordance with the law in force, the body responsible for carrying out the necessary formalities to obtain the declaration of alienation shall be the Command of the Logistics Support of the Army to which the goods are attached.

In this case, the procedure will be initiated with the proposal of the statement of alienation of the aforementioned Command, following with such proposal the procedures indicated in points 2, 3, 4 and 5 of this paragraph for the obtaining the declaration of alienation and agreement of disposal, with the exception that the contract or agreement concluded with the international body referred to in this point shall, in so far as it applies, replace the contract to which they relate points 4 and 5 of this paragraph and shall have the same effect.

Seventh. Emergency procedure.

The disposal of furniture and defense products, as well as the delivery of the necessary supplies for the development of operations combined with the armed forces of other countries, in humanitarian operations, maintenance of peace and the like, or for the attention of emergency situations, shall be carried out by the following procedure:

1. The Minister of Defence or the Authority in which delegation may authorise, in the Operations Plan, the Force's Operational Command, the performance of deliveries and supplies of movable or defence products, provided that any of the Following circumstances:

a) Existence of serious risk to persons or property.

b) An important risk that the mission entrusted cannot be fulfilled.

c) Existence of an official commitment to provide such support or assistance.

2. The deliveries or supplies referred to in the previous point shall be limited to those necessary for the execution of the missions in which it is involved or for the provision of the necessary assistance in emergency situations.

3. The order of delivery shall be understood as a term of disposal pending the determination of its value and shall in itself imply the declaration of alienation and provisional agreement of disposal, as well as the disaffection of the movable property and the defence products in question.

4. The order of delivery shall be communicated immediately to the Board of Directors of Furniture and Defense Products, who shall proceed to the process of valuation and subsequent to the obtaining of the disposal agreement, in the same manner described in the Points 3, 4 and 5 of paragraph 6, with the exception that the delivery order itself, with the agreement of the acquirer, shall replace the contract referred to in points 4 and 5 of the sixth paragraph.

5. This procedure shall not apply in the cases referred to in point 2 of the fourth paragraph.

Eighth. Method of payment.

By the Board of Directors of Furniture and Defense Products a current account will be opened in a bank, within the group "Restricted income account", where the amounts of the securities will be entered are performed.

The payment of such amounts may be made by means of a registered bank cheque in favour of the said Board or by bank transfer in favour of the same.

Ninth. Accounting information.

The Board of Directors of Furniture and Defense Products will transmit to the Ministry of Defense's Directorate General for Economic Affairs the information regarding the activities to be carried out, who will provide it to the Ministry of Defense. General State Administration intervention when required to do so.

10th. Proceeds from the enajenations.

The resulting amounts of the securities regulated in this Order will be entered into the Public Treasury in accordance with the procedures established in the current budget regulations, and the generation of credit in accordance with the provisions of the General Budget Law.

Single end disposition. Entry into force.

This Order shall enter into force on the day following that of its publication in the "Official State Gazette".

Madrid, 20 December 2000.

TRILLO-FIGUEROA AND MARTINEZ-CONDE