Industry Outreach Seminar 7 – 8 January 2016
Taipei, Taiwan
Strategic Trade Secretariat
Ministry of International Trade and Industry MALAYSIA
‘Driving Transformation, Powering Growth’
THE STRATEGIC TRADE ACT (STA) 2010
“FACILITATING TRADE IN A SECURE TRADING ENVIRONMENT”
WHY Strategic Trade Management?
2
Build investors confidence Facilitate trade
Enhance national image
Contribute towards
international peace and security
Protect exporters from being exploited Fulfills international
obligations
Objective of STA 2010
3 3 3
CONTROLS (Catch-all) CONTROLS (Catch-all)
export export transit
transit transhipmenttranshipment brokeringbrokering
other activities
other activities
FACILITATES FACILITATES
design
design productionproduction
WEAPONS OF MASS DESTRUCTION (WMD) & ITS DELIVERY SYSTEMS
WEAPONS OF MASS DESTRUCTION (WMD) & ITS DELIVERY SYSTEMS
Goods
Listed
Unlisted Goods
Listed
Unlisted
Technology Technology
development development
Interagency Collaboration in Malaysia
4
Effective partnership and interagency collaboration makes a difference in strategic trade management
Effective partnership and interagency collaboration makes a difference in strategic trade management
LICENSING ENFORCEMENT PROSECUTION
MINISTRY OF INTERNATIONAL
TRADE AND INDUSTRY MALAYSIAN COMMUNICATIONS
AND MULTIMEDIA COMMISSION PHARMACEUTICAL SERVICES DIVISION
ATOMIC ENERGY LICENSING BOARD
1
2
3
4
ROYAL MALAYSIAN CUSTOMS
1 1ATTORNEY GENERAL’S CHAMBERS
ROYAL MALAYSIAN POLICE
ROYAL MALAYSIAN POLICE
2 2
MALAYSIAN MARITIME ENFORCEMENT
AGENCY MALAYSIAN COMMUNICATIONS
AND MULTIMEDIA COMMISSION
3
4
5
STRATEGIC TRADE SECRETARIAT
Poisons Poisons
Telecommunications
& Electronics Telecommunications
& Electronics -licensing on
behalf of Secretariat for items related to expertise -abide by
guidelines, SOPs, KPIs issued by Secretariat - has full
authority over items not covered under STA
Nuclear related items / Materials
Nuclear related items / Materials
-all cases referred to Secretariat -no unilateral
actions
-final decision on the strategic nature of item is made by the Secretariat
-Criminal cases investigated by police after a police report is made
Others
PARTNER LICENSING AGENCIES ENFORCEMENT
- licensing, issues policy, guidelines, SOP, conducts outreach, ICP approval, - Leads audit and interdiction
teams
- licensing, issues policy, guidelines, SOP, conducts outreach, ICP approval, - Leads audit and interdiction
teams
Other than for dual-use items (materials, aerospace, marine etc), the Secretariat also issues STA permits on behalf of agencies responsible for CWC and other chemicals, biological agents, pesticides, pathogens
(human & animal) etc.
- focal point for STA 2010, custodian of Law
- responsible for overall strategic trade management
- maintains online system, - focal point for STA 2010,
custodian of Law
- responsible for overall strategic trade management
- maintains online system,
Freight Forwarders:
Your Responsibilities
• Transhipment of denied goods from origin countries to third countries (de minimis rule, re-export
authorisation, change in end-user).
• Intermediary agents involved, circumvention of sensitive items, especially to restricted countries.
6 Driving Transformation, Powering Growth
Freight Forwarders:
Why You Should Be Concerned?
• With the increase in focus on international trade security, freight forwarders (FFs) and transportation companies are not exempt from this responsibility and under the STA 2010.
• FFs should be aware of their liability if the burden of export control compliance is outsourced to them by exporters.
7
Freight Forwarders:
You Should Be Extra Cautious If….
8
Customer overseas requesting items to be transshipped or re-exported to restricted countries (STA 2010: North Korea, Iran, Congo, Ivory Coast, Lebanon, Sudan, Afghanistan, Iraq, Liberia, Rwanda, Somalia, Eritrea and Libya).
Customer overseas requesting items to be transshipped or re-exported to restricted countries (STA 2010: North Korea, Iran, Congo, Ivory Coast, Lebanon, Sudan, Afghanistan, Iraq, Liberia, Rwanda, Somalia, Eritrea and Libya).
Information on the item to be shipped out is sketchy/limited (usage and description not clear).
Information on the item to be shipped out is sketchy/limited (usage and description not clear).
RED FLAGS
2
1
Freight Forwarders:
You Should Be Extra Cautious If….
9
Shipping route is abnormal.
Shipping route is abnormal.
Packaging is inconsistent with the stated method of shipment or destination.
Packaging is inconsistent with the stated method of shipment or destination.
Product’s capabilities do not fit buyer’s line of business – e.g. automotive parts to a bakery (individuals and freight forwarders stated as end- users).
Product’s capabilities do not fit buyer’s line of business – e.g. automotive parts to a bakery (individuals and freight forwarders stated as end- users).
3 4 5
RISK
MANAGEMEN T
SELF DECL ARATI ON
How to Comply with Strategic Trade Management?
• Check whether the item is a strategic item (eg. list is in MITI’s website), request customer to indicate or check with the authority.
• If item is controlled, ensure permit has been obtained by your customer.
• If customer indicates items is not strategic but you are doubtful, make sure technical specifications are obtained from your customer for the authority to assist in classification.
10
How to Comply with Export Control?
• As the middle-man, know your customer and your customer’s customer.
• Check whether the consignee and end-user or recipient is a restricted or prohibited.
screening
11Categories of Permits
12
PERMI PERMI T
T
SINGLE-USE
ONE-TIME EXPORT, TRANSHIPMENT OR BRING IN TRANSIT PERMIT for a SINGLE COUNTRY / DESTINATION
Valid for 6 months SINGLE-USE
ONE-TIME EXPORT, TRANSHIPMENT OR BRING IN TRANSIT PERMIT for a SINGLE COUNTRY / DESTINATION
Valid for 6 months
SPECIAL
ONE-TIME EXPORT, TRANSHIPMENT OR BRING IN TRANSIT PERMIT for a SINGLE COUNTRY / DESTINATION which the end-user is a
RESTRICTED END-USER Valid for 1 year
SPECIAL
ONE-TIME EXPORT, TRANSHIPMENT OR BRING IN TRANSIT PERMIT for a SINGLE COUNTRY / DESTINATION which the end-user is a
RESTRICTED END-USER Valid for 1 year
MULTIPLE- USE (*Needs
Internal Compliance Programme (ICP) Approval)
MULTIPLE EXPORTS OR TRANSHIPMENT of
the items for DIFFERENT COUNTRIES / DESTINATIONS Valid for 2 years MULTIPLE- USE (*Needs
Internal Compliance Programme (ICP) Approval)
MULTIPLE EXPORTS OR TRANSHIPMENT of
the items for DIFFERENT COUNTRIES / DESTINATIONS Valid for 2 years
BULK
(Needs ICP approval)
MULTIPLE EXPORTS OR TRANSHIPMENT of items for a SINGLE COUNTRY /
DESTINATION Valid for 2 years
BULK
(Needs ICP approval)
MULTIPLE EXPORTS OR TRANSHIPMENT of items for a SINGLE COUNTRY /
DESTINATION Valid for 2 years
Best Practice:
Online Permit Application
13
CUSTOMS
(ONE SINGLE ONLINE SYSTEM) (ONE SINGLE ONLINE SYSTEM)
PRE-REGISTRATION
APPROVE
APPLICANT PERMIT APPLICATION
(SINGLE / MULTIPLE-USE / BULK / SPECIAL*)
REJECT REJECT
APPROVE
Permit issued FOC by all licensing authorities
Online transaction costs controlled by government through agreement with service provider
Best Practice: Exemption
• Transit and Transhipment
arrive in a Free Commercial Zone (FCZ) or brought immediately into FCZ.
remain in the FCZ
not exceeding 30 days
* 95% of transit and transshipment of strategic items are exempted from applying for permits.
14
However, The Exemption Do Not Apply To The Following Countries…
15
North Korea Iran Congo Ivory Coast
Lebanon Sudan Afghanistan Iraq
Liberia Rwanda Somalia Eritrea
Libya
NORTH KOREA
LEBANON
LIBERIA
IRAN
SUDAN AFGANISTAN
CONGO IVORY COAST
IRAQ
SOMALIA
RWANDA ERITRIA
LIBYA
AND…
No exemption for Transhipment Permit for Schedule 3 items of the STA Regulations 2010, e.g:
Military items – rifles, revolvers, pistols, ammunitions, bombs, torpedoes, rockets,
missiles, war vessels, war aircrafts.
Nuclear reactors, gas centrifuge plant
Uranium, maraging steel, tungsten, molybdenum.
Toxic chemicals, human pathogens.
16
Best Practice: STA Self Declaration
• Effective 1 July 2011 compulsory declaration field in the relevant Customs forms - strategic items or non-strategic items.
• If your product is ticked as strategic item, the system will then prompt for the STA export permit license number to be entered.
17
Best Practice: Shippers Instructions
E-declaration- Customs Declaration
- Make sure your freight forwarder is aware that your item is strategic and should be declared as such at the Customs declaration point.
- It is your responsibility to ensure this is communicated to them clearly : in writing, in your invoice, in a specific letter (you can use the shipper’s declaration as a guide).
18
There is more….
19
This is only a brief overview. You need to familiarise yourself with STA:
read further on the details;
read the FAQs;
get to know the basics of unlisted items i.e. the need for permit in certain cases although your product is not in the List;
note that the Internal Compliance Programme is a pre-requisite for multiple-use and bulk permits;
be attentive to the requirement of a Special Permit for restricted end- user countries;
note the conditions for STA permit exemptions;
Then email [email protected]:
make an appointment to meet us and come prepared with questions specific to your business. We will facilitate your compliance.
Thank you
Menara MITI
No. 7, Jalan Sultan Haji Ahmad Shah, 50480 Kuala Lumpur, Malaysia
Tel: 603-8000 8000 | Fax: 603-6201 2337 | Email: [email protected] | Website: www.miti.gov.my
Q & A
STRATEGIC TRADE SECRETARIAT MITI KUALA LUMPUR