Promoting STCs in Asia: Next Steps for CSCAP Dr. Anupam Srivastava Senior Fellow, CITS
[email protected];
[email protected] Elements of a Comprehensive STC System
Licensing
Enforcement Legal Basis Institutions Implementation (Training)
Government-industry outreach
International compliance/regime adherence
STC Licensing Official authorization by the government for the transfer of controlled goods or technologies Licensing system should be supported by laws/legislation that provide authority to designated officials/agencies to license all activities and items related to trade & transfers of sensitive dual-use goods AND military items This includes
Identifying/listing items and defining transactions that are subject to licensing process Identifying who reviews and/or issues export licenses Identifying where end-user/end-use-based controls might apply
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STC Enforcement What happens if exporters do not comply with licensing requirements? Enforcement becomes critical Requires laws & regulations that designate one or more govt agencies with enforcement authority (both dual-use & munitions) This includes: Authority to search, detain, seize, investigate shipments Understand which items/transactions/destinations might require the exporter to submit a license Capacity and resources (training, procedures & tools) to identify shipments and shippers of concern Authority & protocol to get inter-agency inputs Impose penalties for violations
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Regime Adherence in STC Regime adherence includes international cooperation on nonproliferation, through participation in – treaties, regimes, conventions and initiatives Requires the country to be a member/adherent to int’l agreements that require it to establish an STC system This includes Adopting guidelines/lists/Best Practices into national laws and procedures Coordinating with other govts & international organizations Tasking an agency, and providing it adequate budget, to participate in deliberations, investigations, interdictions
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Government-Industry Outreach in STC What happens if the industry violates STC regulations out of ignorance or confusion? Govt needs to assist the industry understand and comply with STCs Outreach requires laws & regulations that designate one or more govt agencies with the responsibility to educate industry This includes: Choosing more than one method to communicate with the industry Assistance in establishing compliance programs Incorporating feedback on efficiency/suitability of STC process and procedures
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CSCAP Memo No. 14 of 2009 Recommended specific measures involving legislation, licensing procedures, enforcement practices and industry outreach that are essential to an effective STC It was accepted by the CSCAP Steering Committee and presented to the ARF After 7 years, it is time for a detailed assessment of implementation of the identified best practices among CSCAP Member States (MS)
Sample Questions (adapted from Memo #14) STC related Legislation
Control List(s)
Export
One
Re-export
More than one
Transit
Separate for dual-use & munitions
Transshipment
Correlated with HS Codes
Brokering & other facilitation Catch-all ITT (intangible technology transfers)
Sample Questions (adapted from Memo #14) Agencies identified for each function
Electronic Tools
Licensing – nodal & other
Inter-agency data sharing
Legal updates Writing IRRs (Implementing Rules & Regulations) Update & harmonization with other regulations List(s) revision
Risk Management & Profiling
Outreach to other stakeholders • Domestic (industry & academia) • International (regional and extra-regional partners)
Info sharing with the public about license review process/procedures
Enforcement • Developing risk-management databases • Interdictions Investigation Prosecution
Electronic submission of license applications; conveying decisions
Training of Personnel Licensing Outreach Enforcement
Outreach to the stakeholders
International Coordination Treaty-regimes updates Reporting – to UNSCRs 1540; 1637 & 1718 - UNSCRs on terrorism-financing Coordination with assistance providers
Training for industry/academia
Next Steps -1 1) CITS can convert CSCAP Memo #14 into a Matrix 2) MS-CSCAP can use their internal resources to complete the Matrix for their own country 3) Alternately, they can submit (to Pacific Forum CSIS) a copy of documents that provide info corresponding to specific elements in the Matrix. CITS can analyze and help complete the Matrix 4) .CITS & Pacific Forum CSIS can review and consolidate all submissions identify any additional Best Practices of some MS & suggest how these can be adjusted & adopted by the remaining MS
Next Steps - 2 Results of these activities will be used to draft A report assessing the pros and cons of establishing common guidelines, lists of DU items & suspect entities within ASEAN Report will include a section on additional steps required by CSCAP MS to implement & enforce UNSCR 1540 Once CSCAP MS approve the Report it can be used a guide for further development of national STC systems; should improve regional coordination a copy can be submitted to the ARF to include in its dialog with the 1540 Committee