Strategic Trade ACT 2010

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“FACILITATING TRADE IN A SECURE TRADING

ENVIRONMENT”

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Meeting to Discuss Implementation Issues of the Strategic Trade

Act 2010

STATUS OF STA

Cabinet’s approval – 26 March 2010

Parliament – 5 April 2010

Royal Assent – 2 June 2010

Publication in the Gazette – 10 June 2010

Gazette of Regulations and Orders – 31 Dec 20103

OVERVIEW OF STA

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C O N T R O L

export transshipmenttransitbrokering other activities

STRATEGIC ITEMS technologygoods

FACILITATE:

-design -development -production

OBJECTIVES OF STA

WEAPONS OF MASS DESTRUCTION (WMD) & DELIVERY SYSTEMS5

PREVAILING LAW

STA 2010

Plant Quarantine

Act 1976

Animals Act 1953

Prevention and Control of Infectious Diseases Act 1988

Atomic Energy Licensing Act

1984

Chemical Weapons

Convention Act 2005Poison Act

1952

Customs Act 1967

Protection of New Plant

Varieties Act 2004

Pesticide Act 1974

6 conflict or inconsistency : STA shall prevail

Malaysian Communications and

Multimedia Commission Act (1998)

STA 2010

REGULATIONS AND ORDERS (gazetted on 31 December 2010)

Strategic Trade Regulations 2010

Strategic Trade (Restricted End-Users and Prohibited End-Users) Order 2010

Strategic Trade (Strategic Items)

Order 2010

forms

payable fees

procedures

any matter, including enforcement

Prescribing:

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Strategic Trade (Amendment of

Schedule) Order 2010

Strategic Trade (United Nations Security Council

Resolutions) Regulations 2010

• the Minister in charge withthe responsibility forInternational Trade andIndustry

Minister

• the Strategic Trade Controllerappointed by the Ministerand include the DeputyStrategic Controller.

Controller

Important Definitions

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• includes:• Customs and Police officers• Officers of the Maritime

Enforcement Agency• Officers of MCMC• Other officers specified by

the Controller

Authorisedofficer

• Authority designated underthe related laws for theregulation of the strategicitems, unlisted items andrestricted activities, andincludes the Controller.

Relevant Authority

Important Definitions (con’t)

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• to take or cause to be taken out of Malaysiaany items by land, sea or air, or to place anyitems in a conveyance for the purpose ofsuch items being taken out of Malaysia; or

• to transmit technology by any means to adestination outside Malaysia, and includesany oral or visual transmission by acommunication device where the technologyis contained in a document the relevant partwhich is read out, described or otherwisedisplayed over the communications device(“INTANGIBLE TECHNOLOGY TRANSFER”)

export


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• to bring items from any countryinto Malaysia by land, sea or air,where the items are to be takenout from Malaysia on the sameconveyance

• does not include the passagethrough Malaysia in accordancewith the international law offoreign conveyance carrying anyitems

bring in transit


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• Remove items from theconveyance on which theywere brought into Malaysiaand to place the items on thesame or another conveyancefor the purpose of taking themout of Malaysia

• where these acts are carriedout on a through bill of lading,through airway bill or throughmanifest

transhipment


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• Activity of a person who,either on his own behalf oracting as an agent on behalf ofanother person-

• (a) negotiates, arranges orfacilitate the purchasing,financing, conveying, sale orsupply of items; or

• (b) buys, sells or supplies suchitems

brokering


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• a permit issued under the Act including a special permit

permit

• includes listed strategic items, unlisted items, activities and technologyitems

• any items prescribed as strategic items under the Strategic Trade (Strategic Items) Order 2010

strategic items


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• (a) any activity that supportdevelopment, production, handling,usage, maintenance, storage,inventory or proliferation of any WMDand its delivery system or

• (b) participation in transactions withperson engaged in such activities

restricted activities

• item that may be used in a restrictedactivity but are not prescribed in theStrategic Trade (Strategic Items) Order2010

unlisted items


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EXPORT/ TRANSIT/ TRANSSHIPMENT PERMIT

TO THE RELEVANT AUTHORITYACCOMPANIED WITH END-USE

STATEMENT AND ANY ADDITIONAL DOCUMENTS IF

REQUIRED

PERMIT CAN BE SUSPENDED OR REVOKED AT ANY TIME

THE RELEVANT AUTHORITY MAY GRANT OR REFUSE TO GRANT THE PERMIT AND IMPOSE ANY CONDITIONS IN GRANTING THE

PERMIT

APPLICATION FOR PERMIT

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PERMIT

SINGLE-USE:ONE-TIME EXPORT, TRANSHIPMENT OR BRING IN TRANSIT PERMIT

for a SINGLE COUNTRY / DESTINATIONValid for 6 months

SPECIAL: ONE-TIME EXPORT, TRANSHIPMENT OR BRING IN TRANSIT

PERMIT for a SINGLE COUNTRY / DESTINATION WHICH end-user is RESTRICTED END-USER

Valid for 1 year

MULTIPLE- USE:MULTIPLE EXPORTS

OR TRANSHIPMENT of the items for DIFFERENT

COUNTRIES / DESTINATIONSValid for 2 years

BULK: MULTIPLE EXPORTS OR TRANSHIPMENT of items for a SINGLE COUNTRY /

DESTINATIONValid for 2 years

TYPES OF PERMITS

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REGISTRATION OF BROKERS

Application for registration – 30 working days Information and supporting documents

needed for applicationConditions for registration – contract would

not transfer to country/ person sanctioned bythe UN or strategic items removed (foreign toforeign) in contravention of the domestic laws

Grounds of refusal to register or renewregistration

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A person intending to deal with/ carry out brokering of strategic

items/ unlisted items is required to notify the relevant Authority at least 30 days in advance of the activity in which he intends to

participate if he:

● is notified by the relevant Authority;●knows; or

●has reasonable ground to suspect ,

that such strategic items are intended or likely to be used,

wholly or in part, for or in connection with restricted

activities

export, transshipment or transit involving restricted

activities

brokering of strategic items involving restricted activities

in any case…

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EXCEPTION FOR PERMITS•The Government and Visiting Force•Aircraft

– scheduled journeys– temporary importation into Malaysia– departing from Malaysia temporarily, on trials– no military item incorporated

•Vessel– registered/ constructed outside Malaysia and

temporary importated into Malaysia– departing from Malaysia temporarily, on trials– no military item incorporated

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EXCEPTION FOR PERMITS

• Transit and Transshipment– arrive in a free commercial zone (FCZ)– remain in the FCZ– no more than 30 days

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However… No exception for Transit – North Korea and

Iran

No exception for Transit for Military Items to:- Congo - Ivory Coast- Lebanon - Sudan- Afghanistan - Iraq- Liberia - Rwanda- Somalia - Eritrea

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No exception for permit (con’t)

No exception for Transshipment Permit for Schedule Three items of the STA Regulations 2010. Items, 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- Information security – cryptography, test

equipment

Who shall apply for transit/ transshipment permit?

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• A person who wishes to carry out the act concerned; or

• An authorised person acting on his behalf; or

• Where there is more than one person involved, the person who issues the bill of lading, airway bill or authorisedperson acting on his behalf

CONT… Printed copies of the gazetted Regulations and

Orders will be available at Percetakan NasionalBerhad (PNB) from 15 January 2011 The Strategic Items List can be viewed at

MITI’s website which is uploadedadministratively to facilitate the permitapplication The uploaded Strategic Items List includes the

Harmonised System Code for applicants’ easyreference

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2 Parts:● Part I: Military Items●Part II: Dual-Use Items

List of Dual-Use Items:Implements internationally agreed dual-use controls including WA,

MTCR, NSG, Australia Group and CWC

- 1 Category of Military Item(Category ML)

- 10 Categories of Items under the Listof Dual-Use Items (Category 0-9)

STRATEGIC TRADE (STRATEGIC ITEMS) ORDER

2010

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STRATEGIC TRADE (RESTRICTED END-USERS AND

PROHIBITED END-USERS) ORDER 2010

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1.RESTRICTED END-USER – NEED SPECIAL PERMIT• NORTH KOREA & IRAN – ALL STRATEGIC

ITEMS• CONGO, IVORY COAST, LEBANON, SUDAN,

AFGHANISTAN, IRAQ, LIBERIA, RWANDA, SOMALIA – MILITARY ITEMS

• ERITREA – RESTRICTED MILITARY ITEMS

2.PROHIBITED END-USER – PROHIBITED TO DO TRANSACTIONS WITH

IMPLEMENTATION TIMELINE2 months 3 months 3 months 3 months(trial)

Coordination meeting Establishment of online system Manpower from JPA Outreach /

Publicity

Outreach / Awareness Online Registration System

development Capacity building Testing of system Gazette Regulations / Strategic Items / End User Recruitment of manpower

Outreach / Awareness Testing of system Identify and

address Bottlenecks

System integration

Outreach / Awareness Testing of

system Identify and

address Bottlenecks

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1 Oct 2010 1 April 2011 1 July 20111 Aug 2010

Pre registration –Launch by YBM on

12 Oct 2010

Issue of Export Permits

by all Government agencies

1 Jan 2011

Issue of Export Permitsby AELB

STA enforced

Enforcement by AELB

REGISTRATION / PERMIT APPLICATION

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SINGLE / MULTIPLE-USE / BULK PERMIT

CUSTOMS

ONE SINGLE SYSTEM

PRE-REGISTRATION

PERMIT APPLICATION

APPLICANT

SINGLE / MULTIPLE-USE / BULK / SPECIAL PERMIT

APPROVED

REJECTED

REGISTRATION PROCESS FLOWDNT Registration for User ID and Password

www.dagangnet.com

Get User ID and Password

STA Registration http://www.mytradelink.gov.my/web/guest/4

Approved by MITI

Key-in information

Submit Application

Get Digital Signature Token from DNT

Permit Application

Activation of Digital Signature

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OBJECTIVE OF THIS MEETING:TO ESTABLISH A STANDARD

OPERATING PROCEDURE FOR:• Application of transit/ transshipment

permits for strategic items• Discussion:o Who to apply permitso Timelineo Who to receive notificationso Link between Port Authorities,

Customs and MITI

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DISCUSSION (con’t)

o Delivery verification statement

o Model the system of notification of dangerous goods

o Standard Operating Procedure –notification process will be disseminated by Port Authorities to shipping carriers and freight forwarders

Strategic Trade ACT 2010

Documents

Transcript of Strategic Trade ACT 2010