the the strategic trade strategic trade act (sta) … · –––– 6 may 2010 (dewan negara) 6...

THE ENACTMENT OF STA 2010THE ENACTMENT OF STA 2010THE ENACTMENT OF STA 2010THE ENACTMENT OF STA 2010

UNSC Resolution 1540 in 2004 UNSC Resolution 1540 in 2004 UNSC Resolution 1540 in 2004 UNSC Resolution 1540 in 2004

� Cabinet Cabinet Cabinet Cabinet ---- 26 March 201026 March 201026 March 201026 March 2010

� Parliament Parliament Parliament Parliament

–––– 5 April 2010 (Dewan Rakyat)5 April 2010 (Dewan Rakyat)5 April 2010 (Dewan Rakyat)5 April 2010 (Dewan Rakyat)

–––– 6 May 2010 (Dewan Negara)6 May 2010 (Dewan Negara)6 May 2010 (Dewan Negara)6 May 2010 (Dewan Negara)

� Royal Assent Royal Assent Royal Assent Royal Assent ---- 2 June 20102 June 20102 June 20102 June 2010

� Gazette Gazette Gazette Gazette ---- 10 June 201010 June 201010 June 201010 June 2010

� Gazette of Regulations and Gazette of Regulations and Gazette of Regulations and Gazette of Regulations and

Orders Orders Orders Orders –––– 31 December 201031 December 201031 December 201031 December 2010

� Enforcement Enforcement Enforcement Enforcement –––– 1 April 20111 April 20111 April 20111 April 2011

� OnOnOnOn----line Permit Applicationline Permit Applicationline Permit Applicationline Permit Application

–––– 1 July 2011 1 July 2011 1 July 2011 1 July 2011 2

STA 2010STA 2010STA 2010STA 2010

REGULATIONS AND ORDERSREGULATIONS AND ORDERSREGULATIONS AND ORDERSREGULATIONS AND ORDERS

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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if these laws are in

Related

Laws

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

conflict or inconsistent: STASTASTASTA shall prevailshall prevailshall prevailshall prevail4

technologytechnologyGoods

- Listed- Unlisted

Goods- Listed

- Unlisted

FACILITATES

OBJECTIVES OF STAOBJECTIVES OF STAOBJECTIVES OF STAOBJECTIVES OF STA

WEAPONS OF MASS DESTRUCTION (WMD) & ITS DELIVERY SYSTEMS

design development production

export

transit transhipment brokering

other activities

CONTROLS

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• to take or cause to betaken out of Malaysia anyitems

• by land, sea or air• or to place any items in a

conveyance• for the purpose of such

items being taken out ofMalaysia

export

DEFINITIONSDEFINITIONSDEFINITIONSDEFINITIONS

* “items” includes goods and technology6

• to transmit technology by any means

• to a destination outside Malaysia

• includes any oral or visualtransmission of technology

• by a communication device

export

CONTINUED…CONTINUED…CONTINUED…CONTINUED…

“INTANGIBLE TECHNOLOGY “INTANGIBLE TECHNOLOGY “INTANGIBLE TECHNOLOGY “INTANGIBLE TECHNOLOGY

TRANSFERTRANSFERTRANSFERTRANSFER”

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• to bring items from anycountry into Malaysia

• by land, sea or air• where the items are to

be taken out fromMalaysia

bring in bring in transit

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• to remove items from theconveyance on which theywere brought intoMalaysia

• and to place the items onthe same or anotherconveyance for thepurpose of taking themout of Malaysia

• where these acts arecarried out using athrough bill of lading,airway bill or manifest

transshipment

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person• the activity of a personwho, either on his ownbehalf or acting as anagent on behalf ofanother person-

• (a) negotiates, arrangesor facilitates thepurchasing, financing,conveying, sale or supplyof items; or

• (b) buys, sells orsupplies such items

brokering

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Strategic ItemsStrategic ItemsStrategic ItemsStrategic Items

Listed Listed Listed Listed

A.A.A.A. MilitaryMilitaryMilitaryMilitary

B.B.B.B. DualDualDualDual----UseUseUseUse

0) Nuclear Materials, Facilities &

Equipment

1) Materials, Chemicals,

Microorganisms and Toxins

2) Material Processing

3) Electronics

4) Computers

5) Telecommunications and

Information Security

6) Sensors and Lasers

7) Navigations & Avionics

8) Marine

9) Propulsion Systems, Space

Vehicles & Related Equipment

UnlistedUnlistedUnlistedUnlisted

• If a person is informed

by the relevantauthority; OR

• If a person knows/hasreason to believe that

the item will or may beused for a restrictedactivity.

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CLASSIFICATION OF PRODUCTS OR ITEMSCLASSIFICATION OF PRODUCTS OR ITEMSCLASSIFICATION OF PRODUCTS OR ITEMSCLASSIFICATION OF PRODUCTS OR ITEMS

1111 CCCC 1111 18181818

Technical Category Product Group Regime Origin

Item. No.

0 Nuclear Materials, Facilities and Equipment

1 Materials, Chemicals,

“Microorganism” and “Toxins”

2 Material Processing3 Electronics4 Computers

5 Telecommunications and “Information Security”

6 Sensors and Lasers7 Navigation and Avionics8 Marine

9 Propulsion Systems, Space Vehicles and Related Equipment

A Systems, Equipment, Components

B Test, Inspection and Product Equipment

C Materials

D SoftwareE Technology

0:Wassenaaror NSG Trigger

List1: MTCR2: NSG

Dual-Use List

3: AG4: CWC

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STRATEGIC ITEMSSTRATEGIC ITEMSSTRATEGIC ITEMSSTRATEGIC ITEMSCategories and Numbering SchemeCategories and Numbering SchemeCategories and Numbering SchemeCategories and Numbering Scheme

e.g e.g e.g e.g 1C1181C1181C1181C118Titanium-stabilised duplex stainless steel (Ti-DSS) having all of the

following:

a) Having all of the following characteristics:

� Containing 17.0 - 23.0 weight percent chromium and 4.5 - 7.0 weight percent nickel;

� Having a titanium content of greater than 0.10 weight percent; and

� A ferritic-austenitic microstructure (also referred to as a two-phase microstructure) of which at least 10 percent is austenite by volume

(according to ASTM E-1181-87 or national equivalents); and

b) Having any of the following forms:

� Ingots or bars having a size of 100 mm or more in each dimension;

� Sheets having a width of 600 mm or more and a thickness of 3 mm or

less; or

� Tubes having an outer diameter of 600 mm or more and a wall

thickness of 3 mm or less.13

3

e.g 1C350e.g 1C350e.g 1C350e.g 1C350TRIETHANOLAMINE (CAS 102TRIETHANOLAMINE (CAS 102TRIETHANOLAMINE (CAS 102TRIETHANOLAMINE (CAS 102----71717171----6)6)6)6)

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Military Use• Triethanolamine is a precursor for nitrogen mustard gas.

Commercial Use• It is extensively used in personal care products, including soaps, shampoos, hair styling products and dyes, skin cleansers, and cosmetics. It is also used in the textile industry.

Triethanolamine serves as an additive for cement, concrete, and polymers (including resins and rubber).

• Transit and Transshipment

– 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.

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EXEMPTIONSEXEMPTIONSEXEMPTIONSEXEMPTIONS

HOWEVER…HOWEVER…HOWEVER…HOWEVER…� No exemption for transit for:

North Korea and Iran

� No exemption for transit for Military Items to:

Congo Ivory Coast Lebanon Sudan

Afghanistan Iraq Liberia Rwanda

Somalia Eritrea Libya

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AND…AND…AND…AND…AND…AND…AND…AND…

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� No exemption for Transshipment Permit for

Schedule Three items of the STA Regulations2010, 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, testequipment

LICENSING MINISTRY/AGENCIESLICENSING MINISTRY/AGENCIESLICENSING MINISTRY/AGENCIESLICENSING MINISTRY/AGENCIES

Strategic Trade

Secretariat, MITI

Malaysian

Communications and Multimedia Commission

(MCMC)

Atomic Energy

Licensing Board (AELB)

Pharmaceutical

Services Division, Ministry of Health

ENFORCEMENT AGENCIESENFORCEMENT AGENCIESENFORCEMENT AGENCIESENFORCEMENT AGENCIES

Royal Malaysian

Customs

Royal Malaysian

Police

Malaysian

Maritime Enforcement

Agency

MCMC

Other officers

specified by the Controller

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PARTNER AGENCIES

PERMITPERMITPERMITPERMIT

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

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

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CATEGORIES OF PERMITSCATEGORIES OF PERMITSCATEGORIES OF PERMITSCATEGORIES OF PERMITS

DNT Registration for User ID and Passwordwww.dagangnet.com

Get User ID and Password

STA Registration http://www.mytradelink.gov.my

Approved by MITI

Key-in information

Submit Application

Get Digital Signature Token from DNT

Permit Application

Activation of Digital Signature

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REGISTRATION PROCESS FLOWREGISTRATION PROCESS FLOWREGISTRATION PROCESS FLOWREGISTRATION PROCESS FLOW

SINGLE / MULTIPLE-USE /

BULK PERMIT

CUSTOMS

ONE SINGLE SYSTEM

PRE-REGISTRATION

PERMIT APPLICATION

APPLICANT

SINGLE / MULTIPLE-USE / BULK

/ SPECIAL PERMIT

APPROVED

REJECTED

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REGISTRATION / PERMIT APPLICATIONREGISTRATION / PERMIT APPLICATIONREGISTRATION / PERMIT APPLICATIONREGISTRATION / PERMIT APPLICATION

• Effective 1 July 2011 a compulsory field inthe K2 and K8 customs declaration forms todeclare whether products exported arestrategic items or non-strategic items.

• If product is ticked as strategic item, thesystem will prompt for the STA exportpermit license number to be entered.

• A Circular on the self-declaration bycompanies and permit validation by RoyalMalaysian Customs was issued by theStrategic Trade Secretariat on 30 June 2011.It is available on MITI website for reference.

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SELFSELFSELFSELF----DECLARATIONDECLARATIONDECLARATIONDECLARATION

• facilitates trade

• build investors’ confidence

• enhance national image

• international obligations (UNSCR1540)

• protect exporters from beingexploited

• contribute towards international peace and security

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BENEFITSBENEFITSBENEFITSBENEFITS

� MNCs vs local SMEs

� Transit / Transshipment� Brokers – who are they?� Product identification - Export Control

Classification Number (ECCN) / Harmonised System (HS) Code

� Trade vs Security� Costs� Implementation issues � Enforcement

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CHALLENGESCHALLENGESCHALLENGESCHALLENGES

DO NOT

Export without a permit

Export to restricted end-user without

special permit

Export to prohibited end-user

Provide technical assistance for use in

connection with a restricted activity

Do brokering without

registration

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OFFENCES

PENALTIESPENALTIESPENALTIESPENALTIES• Severity of penalty depends on intent and knowledge

For arms and related materials• With the intent and knowledge to unlawfully export,

tranship or bring into transit without a permit:• Where death is the result – a death sentence or

imprisonment for natural life• In the case of a body corporate a minimum fine of RM

30 million• In any other case, imprisonment for not less than 10

years or with a fine of not less than RM10 million orboth (body corporate – RM20 million)

• Without the intent and knowledge to unlawfully export,tranship or bring into transit without a permit:• Imprisonment of not less than 5 years or fine of not

less than RM5 million or both (body corporate - RM10million)

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For strategic items and unlisted items

• With the intent and knowledge to unlawfully export,

transship or bring into transit without a permit:

• imprisonment for a term of not less than 10years or a fine of not less than RM10 million or

both (body corporate – RM20 million)

• Without the intent and knowledge to unlawfullyexport, tranship or bring into transit without a

permit:• imprisonment of not less than 5 years or fine of

not less than RM5 million or both (body

corporate - RM10 million)

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CONT…CONT…CONT…CONT…

� www.miti.gov.my > Guidelines > Strategic Trade Act

� A copy of the Strategic Trade Act 2010, Regulations and Orderscan be purchased from Percetakan Nasional Berhad or isavailable upon subscription athttp://www.lawnet.com.my/lawnetPublic/

� Feedback and comments on this subject can be sent [email protected].

� STS Hotline – 03-6203 9846

� STS Client Day, every Wednesday on the fourth week of themonth, 10.00 am to 12.00 noon at the Strategic TradeSecretariat Office, MITI.

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REFERENCEREFERENCEREFERENCEREFERENCE

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THANK YOU

MOHAMED SHAHABAR ABDUL KAREEM

STRATEGIC TRADE SECRETARIAT, MITI

the the strategic trade strategic trade act (sta) … · –––– 6 may 2010 (dewan negara) 6...

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