Shippers of strategic goods required to register beginning first quarter of 2019
THE Philippine Strategic Trade Management Office (STMO) has released implementing guidelines for the registration of traders, transport companies, and other service providers that import, export and move strategic goods. Registration will be required beginning the first quarter of 2019.
Strategic goods are products considered to be of such military importance—due to security reasons or international agreements— that their export is either subject to specific conditions or prohibited altogether. Under the National Strategic Goods List (NSGL), these goods come under three categories: military, dual-use and nationally controlled goods.
The impending registration requirements for shippers and service providers is in keeping with Republic Act (RA) 10697, “An Act Preventing the Proliferation of Weapons of Mass Destruction (WMD) by Managing the Trade in Strategic Goods, the Provision of Related Service, and for Other Purposes.
Also called Strategic Trade Management Act (STMA), the law was signed in 2016 to comply with United Nations Security Council Resolution 1540. The resolution bound states to adopt legislation that would “prevent proliferation of nuclear, chemical and biological weapons, and their means of delivery, and establish appropriate domestic controls over related materials to prevent their illicit trafficking.”
The law aims to regulate the export, import, transit and transshipment, reexport and reassignment of strategic goods, software and technology and provision of related services to prevent proliferation of WMD.
Under the supervision of the Department of Trade and Industry (DTI), Strategic Trade Management Office serves as the government’s executive and technical agency in establishing management systems for the trade of strategic goods pursuant to STMA.
Registration is required before a shipper or service provider can apply for an authorization to export, import, reexport or provide services related to strategic goods. Any person who engages or intends to engage in the export, import, and reexport of strategic goods, or provides related services such as brokering, financing, transporting, or giving technical assistance must register directly with STMO prior to applying for an authorization or a governmental end-use assurance.
The authorization allows only a specific transaction, or a series of transactions, as described in the application and any supporting documents. An application may be approved in whole or in part, or limited by conditions.
Military goods refer to goods, software, and technology designed, developed, configured, adapted, or modified for military-end-use.
Dual-use goods refer to items, software, and technology intended for both civil and military-end-use, or are used to develop, produce, handle, operate, maintain, store, detect, identify or disseminate WMD or their means of delivery.
Nationally controlled goods refer to strategic goods placed under unilateral controls for reasons of national security, foreign policy, antiterrorism, crime control and public safety.
The STMO, in consultation with the National Security Council – Strategic Trade Management Committee (NSC-STMCom), will issue an enduse assurance, considered a formal security guarantee, upon the request of the country where the strategic items originated.