Jun 2011
The regulations
These set out the various obligations to be met by exporters, the documents to be used in relation to permits, end-user statements, delivery verification statements, etc, as well as the mandatory record keeping / reporting requirements and penalties for infringement.
1. Strategic Trade (Restricted end-users and prohibited end-users) Order 2010
This Order sets out the restricted end-users and prohibited end-users lists including the embargoed countries, entities, and individuals. It also defines military items and restricted military items.
Restricted end-users (countries and destinations) include:
- Islamic Republic of Iran ("Iran") and Democratic People's Republic of Korea ("DPRK") - both designated as embargoed with no exception for transit;
- Democratic Republic of Congo, Ivory Coast (Cote d'Ivoire), Lebanon and Sudan - designated as embargoed countries. Transit permits will be required for military items; and
- Both military items in transit to Afghanistan, Iraq, Liberia, Rwanda and Somalia as well as restricted military items in transit to Eritrea are subject to transit permit.
Prohibited end-users include:
- Five (5) individuals from DPRK, thirty-four (34) individuals from Iran and seven (7) key persons of the Iranian Revolutionary Guard Corps (IRGC); and
- Eight (8) entities from DPRK, fifty four (54) entities from Iran, three(3) IRGC entities including fifteen (15) entities owned, controlled or acting on behalf of IRGC, and three (3) entities owned, controlled or acting on behalf of the Islamic Republic of Iran Shipping Lines (IRISL)
2. Strategic Trade (Strategic items) Order 2010
Strategic items are categorised as follows in the Order:
Part 1 - Military items
Part 2 - Dual use items
Category 0 - Nuclear materials, facilities and equipment
Category 1 - Special materials and related equipment
Category 2 - Materials processing
Category 3 - Electronics
Category 4 - Computers
Category 5 - Telecommunications and "information security"
Category 6 - Sensors and lasers
Category 7 - Navigation and avionics
Category 8 - Marine
Category 9 - Aerospace and propulsion
Other considerations
Internal Compliance Programme (ICP)
It has been officially announced that authorities expect any applicant for a bulk or multiple permit to have implemented an ICP before they will even consider granting such a permit.
Broadly, an ICP would include having amongst others:
- A nominated person responsible for export control compliance;
- Persons responsible for applying for export permits;
- A written company policy on export controls;
- Proof of awareness of export controls within the organisation;
- An end use screening process;
- Training plans; and
- Record keeping system and self audit undertaking.
Businesses having their own or outsourced operations in Malaysia should take note of this and remember that implementing an ICP takes time.
