1. STRATEGIC TRADE ACT (STA) 2010
“FACILITATING TRADE IN A SECURE TRADING ENVIRONMENT”

2. EUMCCI INFORMATION SESSION
16 December 2010
MOHAMED SHAHABAR ABDUL KAREEM
STRATEGIC TRADE CONTROLLER
STRATEGIC TRADE SECRETARIAT
EUMCCI INFORMATION SESSION

3. THE ENACTMENT OF STA 2010 Cabinet approval – 26 March 2010 Parliament
– 5 April 2010 (Dewan Rakyat)
– 6 May 2010 (Dewan Negara)
Royal Assent
– 2 June 2010
Gazette
– 10 June 2010

4. OBJECTIVES OF STA technology goods transhipment transit brokering
other activities
export
CONTROL STRATEGIC ITEMS
FACILITATE
technology
goods
design
development
production
WEAPONS OF MASS DESTRUCTION (WMD) & DELIVERY SYSTEMS

5. STRATEGIC ITEMS Sensors and lasers Military items Marine
Aerospace and Propulsion
Materials processing
Special materials and related equipment
Electronics
Computers
Telecommunications and information security
Navigation and avionics
Nuclear materials, facilities and equipment

6. STA 2010 Prevailing Law conflict or inconsistency : STA shall prevail
Plant Quarantine Act 1976
Animals Act 1953
Prevention and Control of Infectious Diseases Act 1988
Atomic Energy Licensing Act 1984
Chemical Weapons Convention Act 2005
Poison Act 1952
Customs Act 1967
Protection of New Plant Varieties Act 2004
Pesticide Act 1974
Malaysian Communications and Multimedia Commission Act (1998)
Prevailing Law
conflict or inconsistency : STA shall prevail

7. Licensing Ministry / Agencies: Enforcement Agencies:
PARTNER AGENCIES
Licensing Ministry / Agencies:
Ministry Of International Trade And Industry
Malaysian Communication And Multimedia Commission
Atomic Energy Licensing Board
Pharmaceutical Division, Ministry Of Health
Enforcement Agencies:
Royal Malaysian Customs
Royal Malaysian Police
Malaysian Maritime Enforcement Agency

8. STRATEGIC TRADE ACT CONSULTATIVE COMMITTEE
Focal point / Coordination
Review / update policy / Regulation / Order
Investigation / audit reports
Outreach strategies and joint programs
Coordinate capacity building programs with international donors
Address implementation issues
Enforcement

9. REGULATIONS AND ORDERS
STA 2010
Strategic Trade Regulations 2010
Strategic Trade (Strategic Items) Order 2010
Prescribing:
Strategic Trade (Restricted End-Users and Prohibited End-Users) Order 2010
forms
procedures
any matter, including enforcement
payable fees

10. TYPES OF PERMITS PERMIT SINGLE-USE: SPECIAL: MULTIPLE- USE: BULK:
ONE-TIME PERMIT for a SINGLE COUNTRY / DESTINATION
Valid for 6 months
SPECIAL:
end-user is RESTRICTED END-USER
Valid for 1 year
MULTIPLE- USE:
multiple exports, transhipment or bringing in transit of the items for DIFFERENT COUNTRIES / DESTINATIONS
Valid for 2 years
BULK:
MULTIPLE exports, transhipment or bringing in transit of items for a SINGLE COUNTRY / DESTINATION

11. OFFENCES OFFENCES Export without a permit
Export to restricted end-user without special permit
Export to prohibited end-user
Technical assistance for use in connection with restricted activity
Brokering without registration

12. PENALTIES the most severe penalty is: death; or life imprisonment; or
if such offence is committed by a body corporate, a minimum fine of RM30 million.

13. Important Definitions * “items” includes goods and technology
export
to take or cause to be taken out of Malaysia any items*
by land, sea or air
or to place any items in a conveyance
for the purpose of such items being taken out of Malaysia
* “items” includes goods and technology

14. “INTANGIBLE TECHNOLOGY TRANSFER”
CONTINUED…
export
to transmit technology by any means
to a destination outside Malaysia
includes any oral or visual transmission of technology
by a communication device
“INTANGIBLE TECHNOLOGY TRANSFER”

15. CONTINUED… bring in transit
to bring items from any country into Malaysia
by land, sea or air
where the items are to be taken out from Malaysia

16. CONTINUED… transhipment to remove items from the conveyance
on which they were brought into Malaysia
and to place the items on the same or another conveyance
for the purpose of taking them out of Malaysia
where these acts are carried out on a through bill of lading, through airway bill or through manifest

17. CONTINUED…
brokering
the activity of a person who, either on his own behalf or acting as an agent on behalf of another person-
(a) negotiates, arranges or facilitate the purchasing, financing, conveying, sale or supply of items; or
(b) buys, sells or supplies such items

18. IMPLEMENTATION TIMELINE
2 months
3 months
3 months(trial)
1 Aug 2010
1 Oct 2010
1 Jan 2011
1 April 2011
1 July 2011
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
Testing of system
Enforcement by AELB
STA enforced
Issue of Export Permits
by all Government agencies
Issue of Export Permits
by AELB
Pre registration – Launch by YBM on 12 Oct 2010

19. REGISTRATION / PERMIT APPLICATION
ONE SINGLE SYSTEM
PRE-REGISTRATION
PERMIT APPLICATION
SINGLE / MULTIPLE-USE / BULK / SPECIAL PERMIT
SINGLE / MULTIPLE-USE / BULK PERMIT
REJECTED
APPROVED
CUSTOMS
APPLICANT

20. REGISTRATION PROCESS FLOW
DNT Registration for User ID and Password
Get User ID and Password
STA Registration
Key-in information
Submit Application
Approved by MITI
Get Digital Signature Token from DNT
Activation of Digital Signature
Permit Application

21. OUTREACH Manufacturers / exporters Local SMEs Traders Brokers
Industry associations
Consultants
Freight forwarders
Shipping agents
Foreign missions
Academicians/ researchers
Government agencies

22. BENEFITS facilitate trade build investors’ confidence
enhance national image
international obligations (UNSCR 1540)
protect exporters from being exploited
contribute towards international peace and security

23. It is not business as usual It is implemented in phases
CHALLENGES
It is complex
It is not business as usual
It is implemented in phases

24. THANK YOU