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