The Strategic Trade Act (STA) 2010: Malaysias

Experience in the Implementation of Strategic

Trade Management
Yangon, Myanmar
24 June 2015

THE ENACTMENT AND IMPLEMENTATION OF

STA 2010
UNSC Resolution 1540 in 2004
Cabinet
- 26 March 2010
Parliament
5 April 2010 (Lower House)
6 May 2010 (Senate)
Royal Assent
- 2 June 2010
Gazette
- 10 June 2010
Gazette of Regulations and Orders
31 December 2010
Enforcement
1 April 2011
Online Permit Application
1 July 2011
Permit Validation (Customs)
March 2012
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OBJECTIVE OF STA 2010

Transit

Transshipment

Export

CONTROLS
(Catch-all)

Goods
Listed
Unlisted

Design

Brokering

Other
activities

FACILITATES

Development

Intangible
Technology
Software

Production

WEAPONS OF MASS DESTRUCTION (WMD) & ITS DELIVERY SYSTEMS

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Challenges
Low level of
awareness and
understanding

Limited Expertise

Inter Agency
Coordination

To implement
robust Control
system without
affecting trade

Challenges

New Act,
Regulations and
Orders

Inadequate Human
Resources

Budget
Constraints

Reliable and
Effective Online
System
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MALAYSIAS EXPERIENCE IN THE

IMPLEMENTATION OF STM
1. We learned from the experience of others, especially our
neighbors, to get a better handle on the various aspects of
export control
2. Implementation can be quicker and more effective if the
implementing agency understands trade and the trading
environment
3. An Inter-agency (a whole Government) approach is vital and
indispensable in implementation and enforcement
4. Know your Stakeholders and work with them
5. Take advantage of assistance available from donor countries
and international organizations
6. Outreach is a vital tool for industry awareness and compliance
and should start even before the law is drafted
7. Use information technology to the fullest. Online registration,
application and approval for permits is trade facilitating
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MALAYSIAS EXPERIENCE IN THE

IMPLEMENTATION OF STM
1. We learned from the experience of others, especially our
neighbors, to get a better handle on the various aspects of
export control
2. Implementation can be quicker and more effective if the
implementing agency understands trade and the trading
environment:
This is trade policy issue, not a security issue

In Malaysia, the Ministry of International Trade and Industry is the

custodian Ministry and the focal point for the implementation of
STA.
(extracted from 1540, Compass, Vol. 1, Issue 2 (2012), Facilitating Trade in A Secure Trading
Environment Mohamed Shahabar Abdul Kareem)

Minister of International Trade and Industry

Strategic Trade Secretariat
Partner Licensing Agencies

Enforcement

Poisons
Pharmaceutical
Services Division

Royal Malaysian
Customs

Royal Malaysian
Police

Telecommunications &
Electronics
Malaysian
Communications and
Multimedia
Commission

Nuclear
related Items /
Materials

Malaysian
Malaysian Maritime
Communications
and
Enforcement Agency
Multimedia
Commission

Other officers specified by the

Controller

PARTNER LICENSING AGENCIES

Licensing on behalf of Secretariat for items related to

STA 2010, under their expertise
Abide by guidelines, SOPs, KPIs issued by Secretariat
Has full authority over items covered within their
respective Act, which are not listed under STA 2010

PARTNER ENFORCEMENT AGENCIES

All cases referred to Secretariat

No unilateral actions
Final decision on the strategic nature of item is made
by the Secretariat, after consultation with technical
agencies
Criminal cases investigated by police after a police
report is made
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MALAYSIAS EXPERIENCE IN THE

IMPLEMENTATION OF STM
3. An Inter-agency (a whole Government) approach is vital
and indispensable in implementation and enforcement:
STRATEGIC TRADE ACTION COMMITTEE (STAC)
1.Ministry of International Trade and Industry
2.Ministry of Foreign Affairs (MOFA)
3.National Authority, Chemical Weapons Convention, MOFA
4.Disease Control Division, Ministry of Health
5.Pharmaceutical Services Division, Ministry of Health
6.Pesticide Control Division, Ministry of Agriculture
7.Veterinary Services Division, Ministry of Agriculture
8.Attorney General Chambers
9.Atomic Energy Licensing Board
10.Royal Malaysian Customs
11.Royal Malaysian Police
12.Science and Technology Research Institute for Defence
13.Malaysia Maritime Enforcement Agency
14.Malaysia Communication and Multimedia Commission
15.National Security Council
16.Financial Intelligence Unit, Central Bank of Malaysia

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MALAYSIAS EXPERIENCE IN THE

IMPLEMENTATION OF STM
4. Know your Stakeholders and work with them

Private
Sector
Foreign
Governments

Government
Agencies

STA
2010
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Know your Stakeholders

Engage industry from the beginning

Industry

Manufacturers
Traders
Brokers
Industry Associations
Consultants
Freight Forwarders
Shipping Agents

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MALAYSIAS EXPERIENCE IN THE

IMPLEMENTATION OF STM
5. Take advantage of assistance available from donor
countries and international organizations
Drafting of Laws and Regulations
Industry Outreach
Study Tours and Site Visits
Capacity Building
Technical Support
Who are they? The US, EU, Australia, Japan, South Korea,
New Zealand, UNSCR 1540 Committee, ASEAN? Singapore,
Malaysia?

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MALAYSIAS EXPERIENCE IN THE

IMPLEMENTATION OF STM
6. Outreach is a vital tool for industry awareness and
compliance and should start even before the law is drafted:
Meet the
Client Day
Session
Engagement
with
Association

Training

Outreach
Through
Inter-Agency
Meeting

Consultation

MITI
Websites

International
Seminars

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Outreach
Needs of industry understood
Address issues and problems of exporters and brokers in
the implementation of the Act
Get support to implement the Act
Network with the industry

Narrow down the group of proliferators

Improve knowledge and share experience

Teamwork and shared decision making

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MALAYSIAS EXPERIENCE IN THE

IMPLEMENTATION OF STM
7. Use information technology to the fullest. Online
registration, application and approval for permits is trade
facilitating
EASY SELF-DECLARATION
1 July 2011: compulsory product declaration field in the
Customs declaration forms - strategic items or nonstrategic items
If declared as strategic items, the system will prompt for
the STA permit number

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TRADE FACILITATION
ePERMIT STA ONLINE REGISTRATION/PERMIT
APPLICATION SYSTEM
Web-based pre-registration
Web-based system for the application and approval of permits
Approved permits will be transmitted to Customs Information
System for cross-reference purposes against Customs
declaration
Designed to meet the specific requirements of STA for the
purposes of products monitoring and standard
Creates a virtual community for key players in the trade supply
chain - paper-less environment
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ONLINE REGISTRATION/PERMIT
APPLICATION
(ONE SINGLE ONLINE SYSTEM)
PRE-REGISTRATION

APPROVE

REJECT

PERMIT APPLICATION
(SINGLE / MULTIPLE-USE / BULK / SPECIAL*)

APPROVE

CUSTOMS

REJECT

APPLICANT

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DEVELOPMENTS IN ASEAN
Singapore established Strategic Goods (Control) Act in
2003, Malaysia established Strategic Trade Act in 2010
Philippines, Thailand, Indonesia, Vietnam have initiated
steps towards Strategic Trade Management (STM)
ASEAN economies should preferably adopt a common
lists such as the EU Control lists for trade facilitation
ASEAN Single Window (ASW) and STM
ASEAN ECONOMIC COMMUNITY (AEC 2015)

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