http://www.aelb.gov.my
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 2010
2
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WHY MALAYSIA REQUIRE THE STA?
(1) PROLIFERATION CONCERNS
Growing threat since 2000 of the use and proliferation of WMD
North Korea and Iran (clandestine nuclear weapons
programme)
Iraq (chemical & biological weapons attacks against the Kurds)
September 11, 2001 attacks: concerns on attempts by terrorists to
acquire WMD
3
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CONT…
Resulted in International initiative to maintainvigilance over the transfer of:
goods equipment material and related technologies
for the design, development, production and delivery ofWMD
For this purpose, various arms control/ dual-use goods regimes established. Usuallyinitiated by individual countries over certaingoods/ technology of concern and lateradopted by “like-minded” countries
4
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WHY MALAYSIA REQUIRE THE STA?
(2) INTERNATIONAL CONTROL REGIMES
TO comply to United Nation Security Council Resolution
(UNSCR) in particular UNSCR 1540 (and others UNSCR 1703,
1708, 1803 etc);
To effectively implement and Comply to Non Proliferation
Treaty of Nuclear Non Proliferation Treaty (NPT);
To effectively implement obligation under Chemcial Weapon
Convention (CWC)
To effectively implement obligation under Bilogical Weapon
Convention (BWC)
Committed by Malaysia;
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WHY MALAYSIA REQUIRE THE STA?
(2) UN SECURITY COUNCIL RESOLUTION
SCR 1540 – OP3(d) requires all States to -
take and enforce effective measures to establish domesticcontrols to prevent the proliferation of nuclear, chemical, orbiological weapons and their means of delivery, including byestablishing appropriate controls over related materials andto this end shall
…establish, develop, review and maintain appropriateeffective national export and trans-shipment controls oversuch items, including appropriate laws and regulations tocontrol export, transit, trans-shipment and re-export…”
NB: As a UN Member State, Malaysia is bound by Articles 25 and 48 of
the Charter of the United Nations to comply with and implement these
obligations.
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WHY MALAYSIA REQUIRE THE STA?
(3) INTERNATIONAL CONTROL REGIMES
To be consistent with the Internationally Export Control
Regimes supporting the Export Control at the Global Market;
Wassenaar Arrangement (WA)
Missile Technology Control Regime (MTCR)
Nuclear Supplier‟s Group (NSG)
Australia Group (AG)
Zangger Committee (ZC)
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REGIME ITEMS CONTROLLED
Wassenaar
Arrangement
Categories 1 – 9: Special Materials and related equipment, Materials Processing,
Electronics, Computers, Telecommunications, Information Security, Sensors and
Lasers, Navigation and Avionics, Marine, Aerospace and Propulsion;
Sensitive List & Very Sensitive List (of the items in Categories 1-9);
Munitions List
MTCR Certain complete rocket systems (includes ballistic missiles, space launch
vehicles (SPVs) and sounding rockets); Unmanned air vehicles (UAV) systems
(includes cruise missiles, drones, UAVs and remotely piloted vehicles (RPVs) );
missile-related technology
NSG Nuclear material; nuclear reactors and equipment therefore; non-nuclear material
for reactors; plant and equipment for the reprocessing, enrichment and
conversion of nuclear material and for fuel fabrication and heavy water
production; technology associated with each of the above items; includes a
Trigger List – which triggers safeguards as a condition of supply of these items;
nuclear-related dual-use equipment, materials, software and related technology
Australia
Group
List of over 63 chemical weapons precursors; dual-use chemical manufacturing
facilities, equipment and related technology;
Biological weapons elements: plant pathogens; animal pathogens; biological
agents; dual-use biological equipment and related technology
Zangger
Committee
Art. III para 2 of the Non-Proliferation Treaty – items “especially designed or
prepared equipment or material for the processing, using or production of special
fissionable material”; maintains a Trigger List which triggers safeguards as a
condition of supply of nuclear-related strategic goods8
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MODELLING BY THE EU DUAL USE LIST
Categories and Numbering Scheme
1 C 1 18
Technical Category Product Group Regime Origin Item. No.
0 Nuclear Materials, Facilities and
Equipment
1 Materials, Chemicals,
“Microorganism” and “Toxins”
2 Material Processing
3 Electronics
4 Computers
5 Telecommunications and
“Information Security”
6 Sensors and Lasers
7 Navigation and Avionics
8 Marine
9 Propulsion Systems, Space
Vehicles and Related Equipment
A Systems,
Equipment,
Components
B Test, Inspection
and Product
Equipment
C Materials
D Software
E Technology
0: Wassenar
or NSG
Trigger
List
1: MTCR
2: NSG
Dual-Use
List
3: AG
4: CWC
9
Controlled items are identified by a unique 5-character number
- e.g 1C118
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e.g 1C118
Titanium-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.
3
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Existing domestic
lawsinsufficient to cover the
strategic items
currently regulated
by internationa
l control regimes
Sectoralbased
Not designed to
control strategic items that
can be used for WMD purposes
WHY MALAYSIA REQUIRE THE STA?
(4) INADEQUACY OF DOMESTIC LEGAL FRAMEWORK
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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
conflict or inconsistency : STA shall prevail
Malaysian Communications and
Multimedia Commission Act (1998)
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C O N T R O L
export transshipmenttransitbrokeringother
activities
STRATEGIC ITEMS technologygoods
FACILITATE:
-design -development -production
OBJECTIVES OF STA
WEAPONS OF MASS DESTRUCTION (WMD) &
DELIVERY SYSTEMS13
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KEY FEATURES OF STA
6
PARTS
I. Preliminary
II.
Appointment & Powers of
Strategic Trade Controller
III.
Control of Strategic Items, Unlisted
Items and Restricted Activities
IV.
Permit & Registrations
V.
Enforcement
VI.
General
14
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• Customs and Policeofficers
• 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
SALIENT POINTS - STA
15
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Investigation
Arrest without Warrant
Search of Conveyances
Interception of Communications
Examination of a person acquainted
with case
Search and Seizure Without Warrant
Access to Places/
Premises
Access to Computerize
d Data
Use of Force
POWERS OF THE AUTHORISED
OFFICERS
16
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PARTNER AGENCIES
Enforcement Agencies:
Royal Malaysian
Customs
Royal Malaysian Police
Malaysian Maritime
Enforcement Agency
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Licensing Ministry /
Agencies:
• Ministry Of International
Trade And Industry
• Malaysian
Communication And
Multimedia Commission
• Atomic Energy Licensing
Board
• Pharmaceutical Division,
Ministry Of Health
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• to take or cause to be taken out ofMalaysia any items by land, sea orair, or to place any items in aconveyance for the purpose ofsuch items being taken out ofMalaysia; or
• to transmit technology by anymeans to a destination outsideMalaysia, and includes any oral orvisual transmission by acommunication device(“INTANGIBLE TECHNOLOGYTRANSFER”)
export
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SALIENT POINTS - STA
http://www.aelb.gov.my
• to bring items from any countryinto Malaysia by land, sea orair, where the items are to betaken out from Malaysia on thesame conveyance
• does not include the passagethrough Malaysia in accordancewith the international law offoreign conveyance carryingany items
bring in transit
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SALIENT POINTS - STA
http://www.aelb.gov.my
• Remove items from theconveyance on which theywere brought into Malaysiaand to place the items on thesame or another conveyancefor the purpose of takingthem out of Malaysia
• where these acts are carriedout on a through bill oflading, through airway bill orthrough manifest
transhipment
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SALIENT POINTS - STA
http://www.aelb.gov.my
• Activity of a person who,either on his own behalf oracting as an agent on behalfof another person-
• (a) negotiates, arranges orfacilitate the purchasing,financing, conveying, sale orsupply of items; or
• (b) buys, sells or suppliessuch items
brokering
21
SALIENT POINTS - STA
http://www.aelb.gov.my
PERMIT
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 end-user is
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
TYPES OF PERMITS
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PERMIT APPLICATION
TO THE RELEVANT AUTHORITY
ACCOMPANIED 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
(Details are prescribed in the Regulations)
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WHO SHALL APPLY FOR
TRANSIT/ TRANSHIPMENT
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
24
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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
25
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• Transit and Transshipment
– arrive in a free commercial zone (FCZ)
– remain in the FCZ
– no more than 30 days
26
CONT…
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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
27
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NO EXCEPTION FOR PERMIT
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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PENALTIES
• 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 or both (body
corporate – RM20 million)
• Without the intent and knowledge to unlawfully export,
transship 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)
29
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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 10 years or a fine
of not less than RM10 million or both (body corporate –
RM20 million)
• Without the intent and knowledge to unlawfully export,
transship 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…
http://www.aelb.gov.my
STA 2010
REGULATIONS AND ORDERS
(published in government gazette 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
First Schedule:
Forms
Third Schedule: Strategic
items –transshipment
permit required
Second
Schedule: Fees
Fourth Schedule: Record keeping
Prescribing:
Strategic Trade
(Amendment of
Schedule) Order 2010
Strategic Trade
(United Nations
Security Council
Resolutions)
Regulations 2010
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REGULATIONS
6
PARTS
Part I. Preliminary
Part II.
General Requirements
Part III.
Permits
Part IV.
Registration of Brokers
Part V.
Record Keeping
Part VI.
Enforcement
33
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FIRST SCHEDULE - FORMS
• Form 1: Application for permit/ renewal of permit
• Form 2: Export/ transit/ transshipment permit
• Form 3: Application for special permit
• Form 4: Special permit
• Form 5: End-use statement
• Form 6: Delivery verification statement
• Form 7: Application for registration/ renewal of registration for
brokers
• Form 8: Certificate of registration of brokers
• Form 9: Register for export/ transit/ transshipment/ brokering
• Form 9: Notice of disclosure for information
34
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END-USE STATEMENT SHOULD
CONTAIN THE FOLLOWING
INFORMATION
Supplier name
Items description
Value and quantity
End use of strategic items
End use location of strategic items
Certification
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Definitions:
●dual-use items
●military items
●strategic items
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
10 Categories of Items under the List of Dual-Use Items
STRATEGIC TRADE
(STRATEGIC ITEMS) ORDER 2010
http://www.aelb.gov.my
Definitions
●military items
●prohibited end-user
●restricted end-user
●restricted military items
3 Schedules
First
Restricted End-Users
Second
Prohibited End- Users
Third
Restricted Military Items
STRATEGIC TRADE
(RESTRICTED END-USERS AND
PROHIBITED END-USERS) ORDER 2010
http://www.aelb.gov.my
(con’t)
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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Implementing the STA is complex
Seen as trade disruptive
New classifications (ECCN vs HS
Codes)
„Catch all‟ provisions
Very severe penalties
Multi-agency effort
Low awareness of stakeholders
THE CHALLENGE (1)
40
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THE CHALLENGE (2)
It is a balancing act
Trade facilitation vs Security
Domestic realities - local SMEs
Political pressure vs Domestic apathy
Transit/Transshipment/Brokering –
manufacturers/exporters
Unrealistic expectations of stakeholders
http://www.aelb.gov.my
It is not business as usual
Onerous responsibility on
business
Compliance costs
Fear – impact on business
Problems experienced in
Outreach
THE CHALLENGE
(3)
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The implementation plan
Should provide certainty
Should allow for planning (compliance
costs, process, customer engagement)
Should be well supported with capacity
building programs
Sufficient time to create awareness and
implement Act
THE CHALLENGE
(4)
43
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IMPLEMENTATION TIMELINE
2 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
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
Permits
by AELB
STA
enforce
d
Enforcement
by AELB
http://www.aelb.gov.my
REGISTRATION / PERMIT APPLICATION
SINGLE / MULTIPLE-
USE / BULK PERMIT
CUSTOMS
ONE SINGLE SYSTEM
PRE-REGISTRATION
PERMIT APPLICATION
APPLICANT
SINGLE / MULTIPLE-USE /
BULK / SPECIAL PERMIT
APPROVED
REJECTED
http://www.aelb.gov.my
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
Approved by MITI
Key-in information
Submit Application
Get Digital Signature Token from DNT
Permit Application
Activation of Digital Signature
http://www.aelb.gov.my
• facilitate trade
• build investors‟ confidence
• enhance national image
• international obligations (UNSCR 1540)
• protect exporters from being exploited
• contribute towards international peace and security
BENEFITS
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CONCLUSION
STA is intended to protect Malaysia andMalaysian exporters from being exploited byproliferators and those that profit from theiractivities without compromising legitimatetrade in the strategic items concerned.
STA will put in place a centralized andcomprehensive regime to enable Malaysia tocontribute to the maintenance ofinternational peace and security bycombating the proliferation of WMD.
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THANK YOU
Prepared by ;
Atomic Energy Licensing Board
Sources:
Strategic Trade Secretariat, MITI
Strategic Trade Act 2010