how to facilitate legitimate trade in export controls arf export licensing experts meeting 17 – 18...
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How to Facilitate Legitimate Trade in Export Controls
ARF Export Licensing Experts MeetingARF Export Licensing Experts Meeting17 – 18 Nov 0517 – 18 Nov 05
Gives recognition to companies/ organisations with an effective Internal (Export Control) Compliance Program (ICP)
Launched on 1 Nov 03
Approved Company Scheme (ACS)Approved Company Scheme (ACS)
Approved Company Scheme (ACS)Approved Company Scheme (ACS)
The need to facilitate legitimate trade among the majority of honest traders
To encourage companies to develop an effective ICP to self regulate its strategic goods trade
Companies that are equipped with an effective & competent ICP to routinely screen all of their strategic goods and technology transactions
Who are Eligible?Who are Eligible?
Benefits of Approved Company SchemeBenefits of Approved Company Scheme
Credibility
Serves as a recognition that a company has an effective ICP in place
Enhances a company’s credibility as a
responsible trading company, or business
partner
Benefits of Approved Company SchemeBenefits of Approved Company Scheme
More facilitative declaration procedures
Eligible to apply for bulk permits for
multiple shipments
Able to handle large number of
transactions in a relatively shorter turnaround time
Quality system of checks and controls to ensure compliance with the SGCA/SGCR & related domestic laws
Covers controlled products, technology, or documents in which strategic goods technology is recorded, stored or embodied
What is an Internal Compliance Program?What is an Internal Compliance Program?
BenefitsBenefits of Internal Compliance Program
ICP
Better management
Discover suspicious customers/activities
Accountability
Streamlines processes
Reinforces senior
management policy
Training
How to Develop an Effective ICP?How to Develop an Effective ICP?
The specific elements that should be
included in a company’s ICP is dependent on
The complexity of business activitiesThe nature and size of the companyThe strategic goods item(s) the company is/are
dealing inThe recipient or end-user country, and the
company’s relationship with the shipper(s) or consignee(s)
Relevant corporate policies and resources
Clear statement of corporate policy
Commitment must be well communicated
Reinforced policy statement
Company’s commitment
How to Develop an Effective ICP?How to Develop an Effective ICP?
Establish formal lines of communication
Senior management in-charge
Maintain a list of control officers
Responsible for implementation of ICP
List should be circulated
Nomination of strategic goods control officers
How to Develop an Effective ICP?How to Develop an Effective ICP?
Process in product screening
Maintain a list of strategic goods/technology
Working procedures for screening
Ability to check permit requirements
Products screening
How to Develop an Effective ICP?How to Develop an Effective ICP?
Ensure each transaction have a valid
strategic goods permit
How to Develop an Effective ICP?How to Develop an Effective ICP?
End users screening
Maintain prohibited/denial list
Legitimate transactions
Validate customers’ details
How to Develop an Effective ICP?How to Develop an Effective ICP?
Record keeping
> 2 years for export/re-export, transshipment and transit
> 5 years for transmission of technology and brokering of strategic goods and related technology
Examples of records to be kept• Bulk permits• End user certificates• Export licences• Business transaction documents• Internal audit records• Internal training records•Import authorisations
How to Develop an Effective ICP?How to Develop an Effective ICP?
Training
Conduct regular training
Keep training records
Discuss ways of improvement
How to Develop an Effective ICP?How to Develop an Effective ICP?
Audits
Conduct regular internal audits
Submit details of violations
Internal system to notify Customs of any non-compliance promptly
The ACS status will be valid for a period of 24 months from the date of approval
Validity of ACSValidity of ACS
Enable multiple strategic goods transactions
Shorter turnaround time
Not allowed for WMD goods and technology
Bulk Permit
Bulk permits
Process FlowProcess Flow
Company/business Company/business
ACS
Intra-company1 end-user /
multiple products
1 product / multiple (approved) end-users
ICPICPForm G Form G
Bulk permit- Bulk permit- Form H Form H
The granting of each bulk permit is considered on a case by case basis:
The merits of the trading/ business activity
The effectiveness of the company’s ICP
Factors considered include The nature and sensitivity of the items Frequency and volume of transactions Destination/end-users
Granting of Bulk PermitGranting of Bulk Permit
The bulk permit will be valid for a period of 12 months or upon the expiry of the ACS status, whichever is earlier
Validity of Bulk PermitValidity of Bulk Permit
The ACS status will be revoked or suspended if:
The company has violated the terms and conditions of the ACS prescribed by Singapore Customs
The company has knowingly exported/ diverted strategic goods and technology to UN prohibited countries and to countries or companies not approved by the supplying or exporting country
Revocation/Suspension of ACS StatusRevocation/Suspension of ACS Status
The ACS status will be revoked or suspended if:
The company has knowingly export/re-export, transship strategic goods/technology destined for WMD related activities
The company has failed to maintain an effective ICP
The company has not complied with any other requirements of the SGCA or its Regulations, and other related domestic laws
Revocation/Suspension of ACS Status
The Bulk Permit will be revoked or suspended if:
The company has violated the terms and conditions as prescribed in SGCR and by Singapore Customs
The ACS status is being revoked or suspended
Revocation/Suspension of Bulk PermitRevocation/Suspension of Bulk Permit
In SummaryIn Summary
ICPICPICPICP
ACSACSACSACS
Audits Audits (Compliance & Records)
Audits Audits (Compliance & Records)
Bulk PermitsBulk PermitsBulk PermitsBulk Permits
Retain/Revoke/SuspendRetain/Revoke/SuspendRetain/Revoke/SuspendRetain/Revoke/Suspend
Advice to Japan Foreign Trade Council IncAdvice to Japan Foreign Trade Council Inc
Sought Singapore Customs’ advice on compilation of comprehensive ICP guidelines on Singapore's strategic goods control, for Japanese companies
The ICP serves as valuable reference to Japanese trading companies with branch offices, subsidiaries or affiliates operating in Singapore
ConclusionConclusion
Industry needs: further facilitative measures (legitimate trade)
Careful balancing
Thank you