Aiming for that perfect balance
New Strategic Trade Scheme facilitates trade while enhancing control

Governments worldwide have been stepping up efforts to curb the proliferation of weapons of mass destruction (WMD). Likewise, Singapore has tightened control over the movement of strategic goods and related technology. However, stiffer regulations can have a negative impact on trade. To enable companies to reap the benefits of trade and technology collaboration while minimising threats to our security, Singapore Customs launched the Strategic Trade Scheme (STS).

Mr Teo Eng Cheong, Director-General of Singapore Customs, presenting the certificate of accreditation for Tier 3 to Mrs Dora Syn, Trade Compliance Manager, Symantec Asia Pacific Pte Ltd.
Strategic goods are goods relating to the development, production and use of nuclear, chemical and biological weapons, and also conventional arms and military equipment. They include certain dual-use goods with civilian and sensitive military applications and that can be used as precursors or components for WMD.

Come 1 January 2008, the list of strategic goods under the Strategic Goods Control System will be expanded.

The revised list will include high-end computers and telecommunications systems, equipment and components; marine systems, equipment and components; propulsion systems, space vehicles and related equipment; and navigation and avionics of certain specifications. Their related software and technology will also be controlled.

Enhancing the permit regime
In line with its vision to be "an active and valuable partner for the trading community", Singapore Customs continually seeks ways to simplify customs procedures to facilitate trade. On the other hand, as the national authority responsible for strategic goods control, it will not compromise on security.

Get more information
Learn more about the Strategic Trade Scheme here or download the handbook. Click here for related story on the role of Singapore Customs as the national authority for the administration of the Strategic Goods (Control) Act.
The STS, launched on 18 June 2007, is the result of the agency's ongoing efforts to enhance both control and facilitation.

It promotes effective internal export control compliance and also provides facilitative permit declaration procedures for traders of strategic goods for non-WMD-related uses.

Catering to wide-ranging business needs
The STS is a three-tier permit regime that caters to companies with different levels of readiness in terms of their internal controls. The level of facilitation and flexibility granted will be contingent upon the quality of the company's internal (export control) compliance programme.

Tier 1: This tier allows a company to export, re-export, transship or bring in transit strategic goods on a per transaction basis.
Tier 2: A Tier 2 company can obtain one-time approval to export, re-export or transship multiple products and their related technology to a specific end-user or a specific product and its related technology to multiple end-users. To qualify, a company needs to have a reasonably sound internal export control compliance programme.
Tier 3: Companies that export or re-export multiple products and their related technology to customers and overseas offices will find this tier most useful. To qualify, companies must have a robust internal export control compliance programme.

I would like to encourage companies that are involved in the trading of strategic goods to consider implementing robust internal compliance programmes and enjoy facilitated trading procedures under the STS.  
 
 
Mr Teo Eng Cheong
Director-General of Singapore Customs
 

To date, three companies – LSI Technology Singapore Pte Ltd, Infineon Technologies Asia Pacific Pte Ltd and Symantec Asia Pacific Pte Ltd – have received accreditation under Tier 3 of the enhanced permit regime.

Urging more companies to come onboard the scheme, Mr Teo Eng Cheong, Director-General of Singapore Customs, said: "I would like to encourage companies that are involved in the trading of strategic goods to consider implementing robust internal compliance programmes and enjoy facilitated trading procedures under the STS."

Three companies – LSI Technology Singapore Pte Ltd, Infineon Technologies Asia Pacific Pte Ltd and Symantec Asia Pacific Pte Ltd – have received the certification of accreditation for Tier 3.
 

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