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SAFE origin rule (Article 16)

In a SAFE-supported procurement, components from outside the Union, the EEA EFTA states and Ukraine may not cost more than 35 % of the estimated cost of the components of the end product, and no component may come from a third country that contravenes the Union's security and defence interests.

At a glance

Kind
Origin rule (assessed, not obtained)
Needed for
SAFE-supported procurement.
Legal basis
Council Regulation (EU) 2025/1106, Article 16(10)
Last reviewed
Verification
Verified: the page was fetched and the fact is in it.

What the rules say

The 35 % is measured against the estimated cost of the components of the end product. It is not measured against the contract value; briefings often paraphrase it wrongly as a share of contract value. There is also a separate, absolute prohibition: no component at all may be sourced from a third country that contravenes the security and defence interests of the Union and its Member States. The percentage allowance does not cover it.

The same Article also sets rules on establishment, executive management and control for contractors and subcontractors; they are listed on the SAFE card of the readiness page.

Which programmes ask for it

  • Security Action for Europe (SAFE): Components from outside the Union, the EEA EFTA states and Ukraine: at most 35 % of component cost (Required)More than 35 % of the estimated cost of the components of the end product comes from outside the Union, the EEA EFTA states and Ukraine.
  • Security Action for Europe (SAFE): No component from a third country that contravenes the Union's security and defence interests (Required)You report a component from a third country that contravenes the security and defence interests of the Union and its Member States. This is an absolute exclusion: the 35 % allowance does not cover it.

Questions

Who needs SAFE origin rule (Article 16)?
SAFE-supported procurement.

Source

Council Regulation (EU) 2025/1106, Article 16(10) · Open the source

[Council Regulation (EU) 2025/1106, Article 16(10)] The cost of components originating outside the Union, EEA EFTA States and Ukraine shall not be higher than 35 % of the estimated cost of the components of the end product. For the purpose of procurements supported by the SAFE instrument, no component shall be sourced from a third country that contravenes the security and defence interests of the Union and its Member States.

Quoted from the Official Journal text of the regulation. Last reviewed 2026-10-17.

SAFE origin rule (Article 16): what the rule says · DefenceGate