Sts Presentation Slide-090212_slide amd

8/3/2019 Sts Presentation Slide-090212_slide amd

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PROLIFERATION THREATS &

CHALLENGES

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y Access to dual-use, WMD-relevantitems & technologies by States with

questionable conduct or intent

y Access by non-state actors/terrorist

groups

y Emerging suppliers (states)

y Industry (complicit or ignorant)

y Inadequate strategic trade

controls in transit or transshipment

states

* Growing dual-use applications of items & technologiesrequires balancing trade with security imperatives.


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THE ENACTMENT OF STA 2010

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UNSC Resolution 1540 in 2004y Cabinet - 26 March 2010

y Parliament

5 April 2010 (Dewan Rakyat)

6 May 2010 (Dewan Negara)y Royal Assent - 2 June 2010

y Gazette - 10 June 2010

y Gazette of Regulations and

Orders 31 December 2010

y Enforcement 1 April 2011

y On-line Permit Application

1 July 2011

Permit Validation by Customs

- 1 March 2012


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REGULATIONS AND ORDERS

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STA 2010

Strategic Trade

Regulations 2010Strategic Trade

(Strategic Items)

Order 2010

Strategic Trade(Restricted End-Users

and Prohibited End-

Users) Order 2010

Prescribes:

forms procedures

any matter,

including

enforcement

payable

fees


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Related

Laws

PesticideAct 1974

Animals Act1953

MalaysianCommunications and

MultimediaCommission Act

1998

PoisonAct

1952

Plant

Quarantine Act

1976

Atomic Energy

Licensing Act

1984

ChemicalWeapons

Convention Act

2005

Customs Act1967

Prevention and

Control of

Infectious DiseasesAct 1988

Protection of

New Plant

Varieties Act

2004

If these laws are in conflict orinconsistent:

STA shall prevail5


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technologytechnologyGoods

- Listed

- Unlisted

Goods- Listed

- Unlisted

FACILITATES

WEAPONS OF MASS DESTRUCTION (WMD) & ITS DELIVERY

SYSTEMS

design development production

export

transit transhipment brokering

other

activitiesCONTROLS

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OBJECTIVES OF STA


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LICENSING MINISTRY/AGENCIES

Strategic TradeSecretariat, MITI

Malaysian

Communications andMultimedia Commission

(MCMC)

Atomic Energy

Licensing Board

(AELB)

Pharmaceutical

Services Division,

Ministry of Health

ENFORCEMENT AGENCIES

Royal Malaysian

Customs

Royal Malaysian

Police

Malaysian

Maritime

Enforcement

Agency

MCMC

Other officersspecified by

the Controller

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to take or cause to betaken out of Malaysiaany items

by land, sea or air

or to place any items in aconveyance

for the purpose of suchitems being taken out of

Malaysia

export

* items include goods and technology

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DEFINITIONS


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to bring items from anycountry into Malaysia

by land, sea or air

where the items are tobe taken out from

Malaysia

bring intransit

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CONT


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to remove items from theconveyance on which theywere brought intoMalaysia

and to place the items onthe same or another conveyance for thepurpose of taking themout of Malaysia

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

transhipment

10

CONT


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the activity of a person

who, either on his ownbehalf or acting as anagent on behalf of another person-

(a) negotiates, arrangesor facilitates thepurchasing, financing,conveying, sale or supply

of items; or

(b) buys, sells or supplies such items

brokering

11

CONT


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BROKERING CONT

Transaction of WMD UNSCR 1540s call to prevent

any assistance to such activities as an accomplice.

A broker is person/entity who facilitates the

transaction of a strategic trade item from country A

to country B.

A broker does not necessarily have to be in

possession of the brokered item or even land it in

Malaysia

For the purpose of the STA 2010, the person/entityinvolved in brokering should be domiciled in

Malaysia.


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BROKERING CONT Who is a broker?

-Individuals

- Companies

- Freight forwarders

- Delivery services

- Financial institutions

-Agents for foreign manufacturers

A brokerhas to be registered under the STA 2010 to

deal in the specified strategic items. Registration

certificate is valid for a period ofone year.

Exemption - if he/she is involved in bringing in

exhibits for Governments international events such

as LIMA, Defence Services Asia Exhibition, etc.

However, brokers to inform the Strategic Trade

Secretariat prior to the events.


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BROKER CERTIFICATE FORM 8

(PAGE 1 OF 2)


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WHAT ABOUT GOVERNMENT AND

VISITING FORCE?

According to Reg. 22, the requirement for permit shall not apply

to:

a) any act authorised by or carried out for or on behalf of the

Government;

b) the following acts carried out by a military, naval or air force

of a foreign government (not being a visiting force) in the

course of duty:

i. the export, transhipment or bringing in transit of any

strategic items or unlisted items that are brought into

Malaysia by that force; or

ii. the transmission of any technology that is brought intoMalaysia or received by that force from its government;

or

c) the export, transhipment or bringing in transit of any

strategic items or unlisted items by or on behalf of a

visiting force in the course of duty.


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PERMIT

SINGLE-USE

ONE-TIME EXPORT, TRANSHIPMENT OR BRING IN TRANSIT PERMITfor a SINGLE COUNTRY / DESTINATION

Valid for6 months

SPECIAL

ONE-TIME EXPORT, TRANSHIPMENT OR BRING IN TRANSIT PERMITfor a SINGLE COUNTRY / DESTINATION which the end-user is a

RESTRICTED END-USER

Valid for1 year

MULTIPLE- USE(*NEEDS INTERNAL

COMPLIANCE PROGRAMME)

MULTIPLE EXPORTSOR TRANSHIPMENT ofthe items forDIFFERENT

COUNTRIES /DESTINATIONS

Valid for2 years

BULK (*NEEDS ICP)

MULTIPLE EXPORTS ORTRANSHIPMENT of itemsfor a SINGLE COUNTRY /

DESTINATION

Valid for2 years

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It is a set of procedures that have to be implementedwithin a company before an item is exported using

multiple-use or bulk permit.

The procedures in place ensure that the company

complies with the Strategic Trade Act 2010 andassociated Regulations.

The Controls can be done:

- manually

- electronically, etc.

Other names for ICP:

- Internal Control Plan

- Export Management System

- Export Compliance Program

- Trade Compliance Program


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Centralise export-related procedures

Standardise control procedures

Provide early warning

Generate record keeping and completedocumentation forsensitive exports

Develop and maintain good relationship with export

control authorities

Keep updated on export control laws and regulations Train all employees on the need for export control

(company-wide)


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Ensure compliance with applicable laws andregulations

Detect export control violations

Contribute to non-proliferation of sensitiveitems, technology and information


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Company-wide awareness of export control

Highest level of support, i.e. letter from CEO or

equivalent

Clearly assigned accountability

Written compliance manuals, policies and procedures

ICP to be integrated with standard business

procedures

On-going training on policies and procedures

Regular audits/self-assessments

Corrective action plans


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AN EFFECTIVE ICP REQUIRES THEFOLLOWING:

1) Management Commitment

2) Screening Process

3) Training

4) Record-keeping

5) Audit


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Strategic Items

Listed

A. Military

B. Dual-Use

0) Nuclear Materials, Facilities &

Equipment

1) Materials, Chemicals,Microorganisms and Toxins

2) Material Processing

3) Electronics

4) Computers

5) Telecommunications and

Information Security6) Sensors and Lasers

7) Navigations & Avionics

8) Marine

9) Propulsion Systems, Space

Vehicles & Related Equipment

Unlisted

If a person is informed

by the relevant

authority; OR

If a person knows/has

reason to believe that

the item will or may be

used for a restricted

activity.

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Classification of Products or Items


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STRATEGIC ITEMSCategories and Numbering Scheme

0 B 0 01Technical 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 Security6 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:Wassenaar

or NSG

Trigger

List

1: MTCR

2: NSG

Dual-Use

List

3: AG

4: CWC

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Military ListML1.a - Rifles, carbines, revolvers, pistols, machine pistols and

machine guns

ML3.a - Ammunition for the weapons under ML1, ML2 or ML12

ML4 - Bombs, torpedoes, rockets, missiles, other explosive

devices

ML5.b - Target acquisition, designation, range-finding,

surveillance or tracking systems

ML7 - Chemical or biological toxic agents, riot control

agents, radioactive materials, related equipment,components and materials

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Military ListML9 - Vessels of war (surface or underwater), special naval

equipment, accessories, components and other surface

vessels

(a) - Vessels and components

(b)- Engines and propulsion systems

ML10 - Aircraft, lighter-than-air vehicles, unmanned airborne

vehicles, aero-engines and aircraft equipment

(c) - Unmanned airborne vehicles and related equipment

(g) - Military crash helmets and protective masks

(h) - Parachutes, paragliders and related equipment

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Military ListML11 - Electronic equipment

(a) - Electronic equipment specially designed for military use

(b) - Global Navigation Satellite Systems (GNSS) jamming

equipment

ML13 - Armoured or protective equipment, constructions and

components(c) - Helmets manufactured according to military standards or

specifications

(d) - Body armour and protective garments, manufactured

according to military standards or specifications

ML21 - Software

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1B001-Filament Winding Machines

Commercial Uses and Resources

Filament Winding Machines are used tomanufacture a wide variety of productsincluding:

sporting goods such as golf clubsshafts, bicycle frames, and baseballbats

storage tanks, pipes, bearings several aerospace components

Manufacturers ARCOTRONICS ITALIA SpA - Italy Automated Dynamics - Schenectady, NY Entec Composite Machines, Inc. - Salt Lake

City, UT , POURTIER - Gauder Group - France Proton Products - United Kingdom

TCI Machinery, Inc. - Gastonia,

Information http://www.fas.org/nuke/control/mtcr/

text/mtcr_handbook_item6.pdf

Over half the bike is filament wound parts

Filament wound paddles


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Filament Winding Machines

Appearance


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Other examples - ML 4- Bombs, torpedoes, rockets, missiles,

other explosive devices and charges and related equipment

and accessories, as follows, and specially designed components


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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.

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EXEMPTIONS


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North Korea Iran Congo Ivory Coast

Lebanon Sudan Afghanistan Iraq

Liberia Rwanda Somalia Eritrea

Libya31

HOWEVER, THE EXEMPTIONS DO NOT APPLY TO

THE FOLLOWING COUNTRIES


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ANDAND

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y No exemption for Transhipment Permit for

Schedule Three 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


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DNT Registration for User ID and Password

www.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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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 APPLICATION


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