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The Department of Trade and Industry-Strategic Trade Management Office has issued guidelines for third parties acting as exporters on record to export strategic goods
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Memorandum Circular No. 23-12 details the conditions and requirements for third parties who perform services required to facilitate the cross-border movement of strategic goods
The Department of Trade and Industry-Strategic Trade Management Office (DTI-STMO) has issued guidelines for third parties acting as exporters on record (EOR) to export strategic goods.
Memorandum Circular (MC) No. 23-12, dated September 13 and effective immediately, pertains to third parties engaged with the Philippine government to facilitate the cross-border movement of strategic goods. These third parties can either be individuals contracted by an STMO authorization holder or authorized representatives of foreign entities.
An EOR refers to the natural or juridical person indicated in the export declaration. The EOR could be the owner of the goods or services being sent abroad or a third party contracted by the owner.
In an announcement, the STMO said MC 23-12 “introduces a framework for responsible and secure logistics operations vis-à-vis strategic trade management” and details the conditions and requirements for third parties who perform services required to facilitate the cross-border movement of strategic goods. All relevant stakeholders are advised to review the circular and ensure compliance with its provisions.
Under MC 23-12, a person contracted by an STMO authorization holder will not be required to register or apply for an authorization under the STMO. The third party should coordinate with the STMO authorization holder regarding their responsibility in filling out the export declaration, pursuant to STMO MC No. 22-04, which provides the revised guidelines for export clearance.
An authorized representative of a foreign person, meanwhile, may use the General Authorization (GA) on Temporary Export for Repair, Maintenance, or Replacement of Certain Strategic Goods (GEN-2022-A) to specific destination countries under the conditions specified in GEN-2022-A.
Prior registration with the STMO is mandatory before using the GA. If dealing with strategic goods or destinations not covered by GEN-2022-A, the authorized representative of a foreign person should register and seek authorization from the STMO.
MC 23-12 emphasizes that third parties should adhere to DTI MC No. 22-04 and include the STMO authorization number in Box 31 (second line of the Marks & No. of Packages portion) of the export declaration form and other shipping documents.
Any violation of the provisions under MC 23-12 will be considered an unlawful act under Sections 19 and 20 of the Strategic Trade and Management Act (STMA) and will be penalized accordingly.
Republic Act (RA) No. 10697 (An Act Preventing the Proliferation of Weapons of Mass Destruction [WMD] by Managing the Trade in Strategic Goods, the Provision of Related Services, and for Other Purposes), or the STMA, was signed into law in 2015 to comply with United Nations (UN) Security Council Resolution No. 1540.
This UN resolution “imposes binding obligations on all states to adopt legislation to prevent the proliferation of nuclear, chemical, and biological weapons and their means of delivery, and establish appropriate domestic controls over related materials to prevent their illicit trafficking.”
Strategic goods encompass products deemed of significant military importance due to security concerns or international agreements. Their export is either subject to specific conditions or entirely prohibited. The law also encompasses the control of intangibles such as software and technology.
STMO serves as the executive and technical agency of the government in establishing the management systems for trade in strategic goods pursuant to STMA.
The law’s implementation occurs in phases, with exports being the first sector covered.
As of January 1, STMO has begun enforcing the authorization requirement for exporting strategic goods. Future phases will include other types of shipments, such as transit/transshipment, re-export/re-assignment, related services (e.g., transportation, brokering), and imports. – Roumina Pablo
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