FACILITATING TRADE IN A SECURE TRADING ENVIRONMENT

Meeting to Discuss Implementation Issues of the Strategic Trade Act 2010

STATUS OF STA
Cabinets 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 2010
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OVERVIEW OF STA

OBJECTIVES OF STA
C O N T R O
brokering transit export

L
other activities

transshipment

goods

STRATEGIC ITEMS FACILITATE:

-design -development -production

technology

WEAPONS OF MASS DESTRUCTION (WMD) & DELIVERY SYSTEMS

Protection of New Plant Varieties Act 2004 Plant Quarantine Act 1976 Customs Act 1967 Poison Act 1952

Pesticide Act 1974

Prevention and Control of Infectious Diseases Act 1988 Animals Act 1953 Atomic Energy Licensing Act 1984 Chemical Weapons Convention Act 2005

STA 2010
Malaysian Communications and Multimedia Commission Act (1998)

PREVAILING LAW conflict or inconsistency : STA shall prevail

REGULATIONS AND ORDERS

(gazetted on 31 December 2010)
STA 2010

Prescribing: forms procedures payable fees

Strategic Trade Regulations 2010 Strategic Trade (United Nations Security Council Resolutions) Regulations 2010

Strategic Trade (Strategic Items) Order 2010 Strategic Trade (Restricted End-Users and Prohibited EndUsers) Order 2010 Strategic Trade (Amendment of Schedule) Order 2010

any matter, including enforcement

Important Definitions
the Minister in charge with the responsibility for International Trade and Industry the Strategic Trade Controller appointed by the Minister and include the Deputy Strategic Controller.

Minister

Controller

Important Definitions (cont)

Authorised officer

includes: Customs and Police officers Officers of the Maritime Enforcement Agency Officers of MCMC Other officers specified by the Controller Authority designated under the related laws for the regulation of the strategic items, unlisted items and restricted activities, and includes the Controller.

Relevant Authority
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Important Definitions (cont)

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

export

to transmit technology by any means to a destination outside Malaysia, and includes any oral or visual transmission by a communication device where the technology is contained in a document the relevant part which is read out, described or otherwise displayed over the communications device (INTANGIBLE TECHNOLOGY TRANSFER)

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Important Definitions (cont) to bring items from any country into Malaysia by land, sea or air, where the items are to be taken out from Malaysia on the same conveyance does not include the passage through Malaysia in accordance with the international law of foreign conveyance carrying any items

bring in transit

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Important Definitions (cont) Remove items from the conveyance on which they were brought into Malaysia and to place the items on the same or another conveyance for the purpose of taking them out of Malaysia where these acts are carried out on a through bill of lading, through airway bill or through manifest
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transhipment

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Important Definitions (cont) Activity of a person who, either on his own behalf or acting as an agent on behalf of another person (a) negotiates, arranges or facilitate the purchasing, financing, conveying, sale or supply of items; or (b) buys, sells or supplies such items

brokering

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Important Definitions (cont)

permit

a permit issued under the Act including a special permit

items strategic items

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includes listed strategic items, unlisted items, activities and technology any items prescribed as strategic items under the Strategic Trade (Strategic Items) Order 2010

Important Definitions (cont)

(a) any activity that support development, production, handling, usage, maintenance, storage, inventory or proliferation of any WMD and its delivery system or (b) participation in transactions with person engaged in such activities

restricted activities

unlisted items
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item that may be used in a restricted activity but are not prescribed in the Strategic Trade (Strategic Items) Order 2010

EXPORT/ TRANSIT/ TRANSSHIPMENT PERMIT

TO THE RELEVANT AUTHORITY ACCOMPANIED WITH END-USE STATEMENT AND ANY ADDITIONAL DOCUMENTS IF REQUIRED

APPLICATION FOR PERMIT

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

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TYPES OF PERMITS
SINGLE-USE: ONE-TIME EXPORT, TRANSHIPMENT OR BRING IN TRANSIT PERMIT for a SINGLE COUNTRY / DESTINATION Valid for 6 months MULTIPLE- USE: MULTIPLE EXPORTS OR TRANSHIPMENT of the items for DIFFERENT COUNTRIES / DESTINATIONS Valid for 2 years BULK: MULTIPLE EXPORTS OR TRANSHIPMENT of items for a SINGLE COUNTRY / DESTINATION Valid for 2 years

PERMIT

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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

REGISTRATION OF BROKERS
Application for registration 30 working days Information and supporting needed for application

documents

Conditions for registration contract would not transfer to country/ person sanctioned by the UN or strategic items removed (foreign to foreign) in contravention of the domestic laws Grounds of refusal to register or renew registration
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in any case
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

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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 Lebanon Afghanistan Liberia Somalia

- Ivory Coast - Sudan - Iraq - Rwanda - Eritrea

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No exception for permit (cont)

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

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Who shall apply for transit/ transshipment permit?

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 authorised person acting on his behalf

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CONT
Printed copies of the gazetted Regulations and

Orders will be available at Percetakan Nasional Berhad (PNB) from 15 January 2011 The Strategic Items List can be viewed at MITIs website which is uploaded administratively to facilitate the permit application The uploaded Strategic Items List includes the Harmonised System Code for applicants easy reference

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STRATEGIC TRADE (STRATEGIC ITEMS) ORDER 2010

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 List of Dual-Use Items (Category 0-9)
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STRATEGIC TRADE (RESTRICTED END-USERS AND PROHIBITED END-USERS) ORDER 2010

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
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IMPLEMENTATION TIMELINE
2 months
1 Aug 2010 Coordination

3 months
Outreach /

3 months
Outreach /

3 months(trial)
1 July 2011 Outreach /

1 Oct 2010

1 Jan 2011

1 April 2011

meeting Establishment of online system Manpower from JPA Outreach / Publicity

Awareness Awareness Awareness Online Registration Testing of system Testing of System system Identify and development Identify and address Capacity building address Bottlenecks Bottlenecks Testing of system System integration Gazette Enforcement Regulations / by AELB Strategic Items / End User Recruitment of Issue of Export STA Issue of manpower Permits
Export Permits by AELB by all Government agencies

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Pre registration Launch by YBM on 12 Oct 2010

enforced

REGISTRATION / PERMIT APPLICATION

ONE SINGLE SYSTEM

PRE-REGISTRATION

PERMIT APPLICATION SINGLE / MULTIPLE-USE / BULK / SINGLE / MULTIPLE-USE / SPECIALPERMIT BULK PERMIT REJECTED APPROVED CUSTOMS
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APPLICANT

REGISTRATION PROCESS FLOW

DNT Registration for User ID and Password www.dagangnet.com Get User ID and Password STA Registration http://www.mytradelink.gov.my/web/guest/4 Key-in information Submit Application Approved by MITI Get Digital Signature Token from DNT Activation of Digital Signature Permit Application

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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 permits o Timeline o Who to receive notifications o Link between Port Authorities, Customs and MITI
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DISCUSSION (cont)

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
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