(a)

“Classified contract”: any contract to supply products, execute works or provide services, the performance of which requires or involves access to or generation of EU classified information;

(b)

“Classified subcontract”: a contract entered into by a contractor with another contractor (i.e. the subcontractor) for the supply of goods, execution of works or provision of services, the performance of which requires or involves access to or generation of EU classified information;

(c)

“Contractor”: an individual or legal entity possessing the legal capability to undertake contracts;

(d)

“Designated Security Authority (DSA)”: an authority responsible to the National Security Authority (NSA) of an EU Member State which is responsible for communicating to industrial or other entities the national policy in all matters of industrial security and for providing direction and assistance in its implementation. The function of DSA may be carried out by the NSA;

(e)

“Facility Security Clearance (FSC)”: an administrative determination by a NSA/DSA that, from the security viewpoint, a facility can afford adequate security protection to EU classified information of a specified security classification level and its personnel who require access to EU classified information have been appropriately security cleared and briefed on the relevant security requirements necessary to access and protect EU classified information;

(f)

“Industrial or other entity”: an entity involved in supplying goods, executing works or providing services; this may involve industrial, commercial, service, scientific, research, educational or development entities;

(g)

“Industrial security”: the application of protective measures and procedures to prevent, detect and recover from the loss or compromise of EU classified information handled by a contractor or subcontractor in pre-contract negotiations and contracts;

(h)

“National Security Authority (NSA)”: the Government Authority of an EU Member State with ultimate responsibility for the protection of EU classified information;

(i)

“Overall level of the security classification of a contract”: determination of the security classification of the whole contract, based on the classification of information and/or material that is to be, or may be, generated, released or accessed under any element of the overall contract. The overall level of security classification of a contract may not be lower than the highest classification of any of its elements, but may be higher because of the aggregation effect;

(j)

“Security Aspects Letter (SAL)”: a set of special contractual conditions, issued by the contracting authority, which forms an integral part of a classified contract involving access to or generation of EU classified information, that identifies the security requirements or those elements of the contract requiring security protection;

(k)

“Security Classification Guide (SCG)”: a document which describes the elements of a programme or contract which are classified, specifying the applicable security classification levels. The SCG may be expanded throughout the life of the programme or contract and the elements of information may be re-classified or downgraded. The SCG must be part of the SAL.

(a)

the GSC determines, as appropriate, the aspects of the contract which require protection and the consequent security classification; in doing so, it must take into account the original security classification assigned by the originator to information generated before awarding the contract;

(b)

the overall level of classification of the contract may not be lower than the highest classification of any of its elements;

(c)

EU classified information generated under contractual activities is classified in accordance with the SCG;

(d)

when appropriate, the GSC is responsible for changing the overall level of classification of the contract, or security classification of any of its elements, in consultation with the originator, and for informing all interested parties;

(e)

classified information released to the contractor or subcontractor or generated under contractual activity must not be used for purposes other than those defined by the classified contract and must not be disclosed to third parties without the prior written consent of the originator.

(a)

security is assured at all stages during the transportation and under all circumstances, from the point of origin to the ultimate destination;

(b)

the degree of protection accorded to a consignment is determined by the highest classification level of material contained within it;

(c)

an FSC is obtained, where appropriate, for companies providing transportation. In such cases, personnel handling the consignment shall be cleared in compliance with the common minimum standards contained in this Section;

(d)

journeys are point to point to the extent possible, and are completed as quickly as circumstances permit;

(e)

whenever possible, routes should be only through EU Member States. Routes through non-EU Member States should only be undertaken when authorised by the NSA/DSA of the States of both the consignor and the consignee;

(f)

prior to any movement of EU classified material, a Transportation Plan is made up by the consignor and approved by the NSAs/DSAs concerned.’