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Stakeholders should properly classify their items, software, or technology on the National Strategic Goods List before applying to register them with the Strategic Trade Management Office
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This ensures stakeholders avoid unnecessary regulations, STMO said
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Those who have determined their commodities are not on the NSGL do not need to register with the STMO
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The NSGL describes with specificity the strategic goods that are subject to authorization
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Commodity classification determines whether an item, software, or technology satisfies the control conditions outlined on the NSGL
Proper classification of commodities on the National Strategic Goods List (NSGL) is a requirement before applying for registration with the Strategic Trade Management Office (STMO).
In an STMO announcement dated January 26, the Department of Trade and Industry-attached office said “stakeholders shall properly classify their item, software of technology under the NSGL” before going for STMO registration in order to “avoid the burden of complying with unnecessary regulations.”
Stakeholders whose commodities are not on the NSGL do not need to register with the STMO, the agency said.
The NSGL describes with specificity the strategic goods subject to authorization. Commodity classification, meanwhile, determines whether an item, software, or technology satisfies the control conditions outlined on the NSGL.
A specific NSGL code is assigned to a particular item, software, or technology that is required to be submitted to the STMO when applying for registration. The step-by-step process for commodity classification is provided in DTI Memorandum Circular No. 21-10.
The NSGL and commodity classification are pursuant to Republic Act No. 10697, or “An Act Preventing the Proliferation of Weapons of Mass Destruction (WMD) by Managing the Trade in Strategic Goods, the Provision of Related Service, and for Other Purposes.”
The STMA was signed into law in 2016 to comply with United Nations Security Council Resolution No. 1540.
The 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.”
The STMA aims to regulate the export, import, transit and transshipment, re-export and reassignment of strategic goods, software and technology and the provision of related services to prevent the proliferation of WMD.
The NSGL consists of three annexes: military goods, dual-use goods, and nationally controlled goods.
Military goods refer to goods, software, and technology that are specifically designed, developed, configured, adapted, or modified for military end-use.
Dual-use goods refer to items, software, and technology that can be used for both civil and military purposes or in connection with the development, production, handling, operation, maintenance, storage, detection, identification, or dissemination of WMD or their means of delivery.
Nationally controlled goods refer to strategic goods placed under unilateral control for reasons of national security, foreign policy, antiterrorism, crime control, and public safety.
The STMO serves as the executive and technical agency of the government in establishing the management systems for trade in strategic goods pursuant to STMA.
STMO is enforcing a phased implementation of the STMA and has started with exports. Last January 1, STMO has started implementation of the requirement for authorization prior to the export of strategic goods.
STMO earlier said it is focused more on exports than imports, as the latter is already regulated by other government agencies such as the Philippine Drug Enforcement Agency and Philippine National Police-Firearms and Explosives Division.
STMO will gradually cover other types of shipments, including transit/transshipment, re-export/re-assignment, related services (e.g. transporting, brokering), and imports.
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