Singapore updated its strategic goods control regime on 3 August 2020 to ensure robust administration of controls and effective risk assessments, while ensuring the facilitation of legitimate trade. Key amendments include ensuring individual and bulk permit holders have access to English translations for strategic trade records kept in other languages. For bulk permit holders, expanded document categories under recordkeeping requirements and monthly reporting will apply. A new offence has also been created for failing to amend permits in the event that information submitted under initial permit application processes subsequently change.
- Review current processes to understand which expanded documentation and operational requirements have already been captured.
- Identify gaps between current recordkeeping measures and new requirements.
- For bulk permit holders or registered brokers, reach out to Singapore Customs relationship managers to understand when relevant monthly reports are required to be submitted.
In more detail
As part of its efforts to prevent the proliferation of weapons of mass destruction, Singapore regulates (amongst other activities) the transhipment, transit, transmission and export of military and dual-use goods and technology.
The key legislation governing this is Singapore’s Strategic Goods (Control) Act (Chapter 300) (“SGCA”). Recent amendments to the SGCA’s implementing regulations, the Strategic Goods (Control) Regulations (“SGCR”) took effect on 3 August. Pursuant to these amendments, Singapore Customs also published Circular No: 05/2020. We provide an overview of key updates below:
- English Translations Required. If documents maintained under recordkeeping requirements are not in English, English translations have to be provided within 14 days upon request by Singapore Customs.
- Amendments to Permits. Should information supplied or any supporting documentation under a permit change after permit grant, permit holders must apply to amend permit within 14 days. The recent SGCR amendment creates a new offence for failing to amend permits.
- Monthly Reports. Bulk permit holders must submit monthly reports to Singapore Customs “on the 14th of every month, or at such other time or interval as required”. These reports have to contain information relating to the goods, documents or technologies that are transferred under the bulk permit including the transferred items’ descriptions, values, quantities, dates of transfer, supplier information; end-user information; and any other relevant information Singapore Customs may require. Circular No: 05/2020 provides guidance for monthly reports concerning intangible transmissions of technology (“ITT”). ITT reports should be sent to [email protected] on the 14th of every month or upon request.
- Expanded Recordkeeping Requirements for Bulk Permit Holders. The scope of documents required to be maintained by bulk permit holders have also been significantly expanded. Apart from the information requirements under paragraph 3 above, bulk permit holders will now also be required to maintain screening documents, business transactional documents, internal audit reports, internal training records, instructions to business affiliates, and reports of any non-compliance, where applicable.
- Registered Persons (Brokering). Registered persons for brokering must also submit a report (including a report stating a nil return) to Singapore Customs on the 30th day of June and December in each calendar year, or at such other time or interval as required by Singapore Customs.