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“FACILITATING TRADE IN A SECURE
TRADING ENVIRONMENT”
THE THE THE THE STRATEGIC TRADE STRATEGIC TRADE STRATEGIC TRADE STRATEGIC TRADE
ACT (STA) 2010 ACT (STA) 2010 ACT (STA) 2010 ACT (STA) 2010
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:
3
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
5
• 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”
7
• 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
8
CONTINUED…CONTINUED…CONTINUED…CONTINUED…
• 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
9
CONTINUED…CONTINUED…CONTINUED…CONTINUED…
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
10
CONTINUED…CONTINUED…CONTINUED…CONTINUED…
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.
11
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
12
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)
14
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.
15
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
16
AND…AND…AND…AND…AND…AND…AND…AND…
17
� 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
18
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
19
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
20
20
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
21
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.
22
SELFSELFSELFSELF----DECLARATIONDECLARATIONDECLARATIONDECLARATION
• facilitates trade
• build investors’ confidence
• enhance national image
• international obligations (UNSCR1540)
• protect exporters from beingexploited
• contribute towards international peace and security
23
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
24
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
25
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)
26
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)
27
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 toadmin.sts@miti.gov.my.
� 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.
28
REFERENCEREFERENCEREFERENCEREFERENCE
29
THANK YOU
MOHAMED SHAHABAR ABDUL KAREEM
STRATEGIC TRADE SECRETARIAT, MITI
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