CATCH - ALL CONTROLS SINGAPORE CUSTOMS Joint Industry Outreach - PowerPoint PPT Presentation

SINGAPORE’S RELEVANT ACTIVITY OR “CATCH - ALL” CONTROLS SINGAPORE CUSTOMS Joint Industry Outreach Seminar 2018 3 December 2018 We Make Trade Easy, Fair & Secure Singapore Tang Marriott Hotel Presented by Esther Ng We Make Trade Easy, Fair & Secure

Strategic Goods Control Act (2 St (2003) Strategic Goods (Control) Act Strategic Goods Strategic Goods Strategic Goods (Control) (Control) (Control) Order (Brokering) Order Regulations Fourth Schedule – Transhipment List ML 1 - 4 & 8 ML & DL List Fifth Schedule – Transit List Goods and Technology not listed, but a person Relevant Activity knows/ suspects/ has been notified, are intended or likely to be used for WMD purpo ses We Make Trade Easy, Fair & Secure 2

What is Relevant Activity? Relevant Activity The development, production, handling, operation, maintenance, storage, detection, identification or dissemination of any nuclear , chemical , or biological weapon The development, production, maintenance or storage of missiles which are capable of delivering any such weapon We Make Trade Easy, Fair & Secure 3

Dual Use Items Possibly Used for WMD Steel pipes Helium gas Ammonium Chloride Connectors We Make Trade Easy, Fair & Secure 4

Reasons for Relevant Activity Control Keep Pace with Evolving Technology Modifications Basic & Upgrading Components Relevant Activity Control We Make Trade Easy, Fair & Secure 5

Singapore’s Relevant Activity Clause a) Has been notified by Customs; That the goods Strategic would be used Goods wholly or in permit b) Knows; or connection required if with a relevant company or activity c) Has person: Reasonable Grounds to Suspect We Make Trade Easy, Fair & Secure 6

Permits For “Relevant Activity” Export Transhipment/Transit Export of goods and technology Transhipment and transit of goods and known/suspected/been informed to be technology known/suspected/been used for WMD purposes informed to be used for WMD purposes Permits Intangible Transfer of Technology Brokering Apply for a ITT permit for “relevant Apply for a brokering permit for “catch - all” activity” transactions transactions (known/ suspected/been (known/suspected/been informed to be informed to be used for WMD purposes) used for WMD purposes) We Make Trade Easy, Fair & Secure 7

Best Practices - Relevant Activity Compliance • Always screen customers and end-users against denied or Screen sanctioned parties lists prior to each sale for WMD proliferation risk. Enquire • When in doubt, enquire more details on the end use of the items. Assess • Assess the sale transaction for WMD proliferation risk . • Inform Customs if you know or suspect that your items may be or Inform likely to be used for relevant activity. • Submit to Customs either an application to seek preliminary Submit advice on strategic goods transaction or a permit application for relevant activity . We Make Trade Easy, Fair & Secure 8

Best Practices - Relevant Activity Compliance Gather information about the Email to shipment Customs_STGC@customs.gov.sg • Consignee details • Include information or explanation on • Information on why you suspect that intermediaries the shipment may be • Delivery information intended for relevant • Item description & details activity end-use. (model/ CASRN, etc) • Technical specifications We Make Trade Easy, Fair & Secure 9

Red Flags (Customer/ End User) • Suspicious identity • Involved in military-related business • Listed in the UNSC sanctioned entity list • No business background • Reluctant to offer information • Requests shipment or labelling of goods that are inconsistent with usual practices • Unfamiliar with the product characteristics and end-use • Declines routine installation, training or maintenance services We Make Trade Easy, Fair & Secure 10

Red Flags (End-use/ Product) • Delivery dates are vague • Out of the way destinations • Products do not fit the buyer’s line of business • Buyer is evasive and unclear about the product • The shipping route is abnormal • The packaging is inconsistent with the stated method of shipment or destination • Equipment is to be installed in an area under strict security control We Make Trade Easy, Fair & Secure 11

Relevant Activity Offences a) Has been c) Has Reasonable b) Knows Notified Grounds to Suspect • Did not take up a • Did not take up a • Did not take up a requisite permit permit despite permit despite after being knowing that having grounds to notified to do so goods would be suspect that goods used for relevant would be used for activity relevant activity We Make Trade Easy, Fair & Secure 12

Penalties for Offences (SGCA) 1 st Conviction (per count) • Fine for up to $100,000 or 3 times the value of the goods – whichever is higher; or • Imprisonment for up to 2 years; or • Both 2 nd or Subsequent Conviction (per count) • Fine for up to $200,000 or 4 times the value of the goods – whichever is higher; or • Imprisonment for up to 3 years; or • Both We Make Trade Easy, Fair & Secure 13

Thank You We Make Trade Easy, Fair & Secure 14