Prague - Czech arms companies exported military equipment worth CZK 4.5 billion (EUR 180 million) in 2011, according to an industry ministry report.
It is CZK 600 million (EUR 24 million) less than in 2010.
Czech arms companies complain that their exports would be significantly higher were they not stifled by transit licenses needed to ship goods across neighboring Germany and Poland.
"In 2011 our export could have been higher by one third, were it not for other countries preventing us from shipping our goods across their territory," Jiri Hynek, President of the Defense and Security Industry Association, said to Aktualne.cz.
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The Czech Republic as well as neighboring Slovakia suffer from being landlocked countries. Military equipment for distant markets is usually shipped by sea, which is considerably less expensive than air transport.
"If a Czech company receives an export license, it does not mean that you will manage to get the goods to the port on the agreed upon date. German and Polish authorities require special transit licenses," said Hynek, describing a long-term problem.
Hynek added that German and Polish authorities also demand extensive documentation about the shipped goods, including prices.
"I am convinced that it is a clear breach of one of the basic principles of the EU, which is free movement of goods," said Hynek.
Opting for a southward shipping route would not solve the problem, said Hynek, because Austria refuses to allow any military equipment to be transported across its territory, and Hungary is no longer helpful either.
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The EU has issued a directive to rectify the situation. The directive asks member states to adjust their legal framework in order to facilitate the transit of military equipment. According to the EU headquarters in Brussels, the new regulations came into force on 30 July.
In its annual report, the Industry Ministry said that it had issued more than 1,000 arms export licenses worth in total CZK 8.5 billion (EUR 340 million) in 2011.
More than half of these licenses - worth CZK four billion - were issued for arms exports to EU member states, mostly Austria, Poland and Slovakia.
In terms of revenues, Czech arms exporters' biggest clients were Algeria (imported Czech-made military equipment worth nearly CZK 500 million), USA (330 million) and India (307 million).
