Hisashi RIKO
Japanese outreach efforts and Capacity building Workshop on Strategic Trade Controls By Pacific Forum CSIS Taipei November 2-3, 2016 CISTEC Hisashi RIKO Copyright CISTEC(C) 2016 All Rights Reserved
1
Contents 1. Outreach and capacity-building in Japan 1) Joint Industry Seminar 2) Asia Export Control Seminar
2.
Industry’s Proactive effort for Capacity-building Copyright CISTEC(C) 2016 All Rights Reserved
2
1. Outreach and capacity-building in Japan 1) Joint Industry Outreach Seminar (JIOS) •Organizer: METI, Local Government, CISTEC •Participants: Gov. officers, Local industries/Japanese subsidiaries, affiliates •Theme: Importance of Export Control (EC) Recent Trend and Topics on Int’l EC Regime Actual practices in Industry Internal Compliance Program (ICP) etc. Copyright CISTEC(C) 2016 All Rights Reserved
3
Organizing purpose of Joint Industry Outreach Seminar(by METI 2015) In recent years, the procurement activities of goods and technologies related to Weapons of Mass Destructions (WMDs) by the entities of concern, including countries of concern and terrorist groups, have increased sophistication by utilising the means of such as export circumvention or the use of alias. Asian countries and regions are facing increased risk as a point of production or transshipment of WMDs by entities of concern. In order to effectively prevent the proliferation of WMDs as well as to maintain the international security, it is necessary to implement rigorous export control in concert amongst Asian counties and regions. Based on this situation, Japan has been organizing “Joint Industry Outreach Seminar” from 2003 JFY that aims to enhance the effectiveness of the export control of the local firms in Asian countries as well as Japanese firms in that country, and “Asian Export Control Seminar” from 1993 JFY that aims to assist export control officers in Asian countries and regions. Copyright CISTEC(C) 2016 All Rights Reserved
4
Countries where JIOS have been co-organized F.Y.2015: Thailand, Taiwan, Philippine 2014: Taiwan, Malaysia, Philippine 2013:Taiwan, Philippine 2012:Thailand, Vietnam, Indonesia 2011: Hong Kong, Taiwan, Malaysia, Philippine 2010: Malaysia, Philippine, Thailand 2009: Vietnam, Taiwan, Indonesia, Thailand 2008: Hong Kong. Indonesia, Korea 2007: Malaysia, India, Taiwan 2006: Philippine, Thailand, Hong Kong, Korea 2005: Taiwan, Singapore 2004: Korea 2003: China Copyright CISTEC(C) 2016 All Rights Reserved
5
JIOS in Taipei, 18 November 2015 Opening Remarks Mr. Eugene Y.J. Chen Chief Secretary, Bureau Of Foreign Trade, Ministry Of Economic Affairs Mr. Hisashi RIKO Member of the Board and General Manager, Export Services Department, CISTEC Mr. Shuzo TAKADA Director-General, Trade Control Department, Trade and Economy Cooperation Bureau, Ministry of Economy, Trade and Industry (METI),Japan
Copyright CISTEC(C) 2016 All Rights Reserved
6
Theme 1: Overview of Control Systems in Japan and Taiwan and Recent Trend of Control ・Overview of Japan’s Export Control System Mr. Tetsuya SHIMOKAWA, (METI), Japan
・Overview of Taiwan’s SHTC export regulations Mr. Lai, Wei-Kung, Ministry Of Economic Affairs , Taiwan
・ICP Implementation in Japan Mr. Yukio HAYANO, (METI)
・ICP Implementation in Taiwan Ms. Yu, Ya-Wen, Ministry Of Economic Affairs
Copyright CISTEC(C) 2016 All Rights Reserved
・Q&A Session
7
Theme 2: Experience Sharing in Private Sector in Japan and Taiwan ・Export Controls of Toray Industries, Inc. Mr. Takuji TAGAWA, Toray Industries, Inc.
・Export Controls of Taiwan's ICP company Ms. Frieda Huang MEDIATEK INC.
・Q&A Session
Concluding Remarks Mr. Hisashi RIKO, CISTEC Mr. Eugene Y.J. Chen, Ministry Of Economic Affairs
Copyright CISTEC(C) 2016 All Rights Reserved
8
Background and change of surrounding situation in Southeast Asia • • • • • • • •
Economic development Modernization of industry Trans-plant from US, EU, Japan etc. Local production of High tech items Transportation hub-function ASEAN unification, single window policy Front company: fake business, fake user Target as Circumvention point (DPRK) Copyright CISTEC(C) 2016 All Rights Reserved
9
An Example of Cooperation of JPN/HKG Government DC Stabilizing Power Supply Device
02/11/19 DPRK
Procurement Company
Japan
Export Banned By METI
Ｍ Company （Exporter）
03/4/8
Export
Inspection
03/4/4
Request of confiscation of the cargo
METI confiscation
Hong Kong Gov.
03/4/8
Thailand Copyright ⓒ CISTEC 2015 All rights reserved.
Telecom. Company （Importer/Exporter）
10
An Example of Inspection/Confiscation by JAPAN Customs Source: 5th report of panel of experts of UNSC
Yangon, Myanmar Soe Ming Htike Co. Ltd.
Sales/Purchase Contract? Korea Kumpyo Trading Co.?
Tokyo, Japan
WMD sanctions by UN Export/Import ban by METI
Nampo,DPRK
Inspection/Confiscation ‘12/8 Aluminum rods made in DPRK
Japan Customs Singaporean Frag Vessel Singaporean Flag Vessel WAN HAI 215 WAN HAI 313 Transshipment planned..’12/8/14 Transshipped ’12/7/27 Transshipped ’12/8/9
Kelang, Malaysia Copyright ⓒ CISTEC 2015 All rights reserved.
Shekou, China
Dalian, China 11
Aluminum Rods confiscated from the vessel bound for Myanmar at Tokyo Port 2012.8
Source: 5th report of panel of experts of UNSC 12
Actual situation of STC implementation in Southeast Asia • Different basic stance(policy) to STC, country by country • Different level of Laws and regulations • STC authorities, agencies • Insufficient training and educational systems • Awareness of industry and academia • Limited, almost no awareness of SME • STC outreach by the USA, EU Copyright CISTEC(C) 2016 All Rights Reserved
13
Effects of JIOS • • • • •
Level-up of awareness Better understanding on latest real situation Sharing of best practice/experience/knowledge Personal networking / cooperative operation Regionally, globally coordinated STC program
Copyright CISTEC(C) 2016 All Rights Reserved
14
Problems which still remain • Various level of STC implementation • Sensitive geopolitical issues/serious economical, political pressure • Incorrigible Belief that STC damages export or leads bad effect • Resistance of Academia against STC (academic freedom) • No practical countermeasures against illegal technology-transfer • Long-standing world wide issue on SME vs STC Copyright CISTEC(C) 2016 All Rights Reserved
15
Challenges • Encourage best practice/knowledge/experience sharing • Strengthen close, frank communication between Gov./Industry/Academia • Sustainable training plan with long-term view for concrete development program • Introduction of successful cases of pioneer countries • Taking AEO concept into STC, working with WCO • Cooperate with other outreaches by the US, EU, etc. Copyright CISTEC(C) 2016 All Rights Reserved
16
２) Asian Export Control Seminar Where: Tokyo Who: CISTEC, METI, MOFA, How often: Every year, since 1993 Whom: Asian neighbors What: Presentations/discussions on the latest EC related issues, Dialogues/Networking among participants Participants in 2016: 21 Countries/Region from Asia（Taiwan・・） 8 Supporting countries（US, EU, Australia, etc.） 11 Supporting Org. (UN, WCO, SIPRI, Universities, etc.) 4 Regimes (WA, NSG, AG, MTCR) Copyright CISTEC(C) 2016 All Rights Reserved
17
Photos of Asian Export Control Seminar
Copyright CISTEC(C) 2016 All Rights Reserved
18
Governmental unique authority on STC, METI
The Trade and Economic Cooperation Bureau The Trade Control Department
Security Export Control Policy Division
Security Export Inspection Office Copyright CISTEC(C) 2016 All Rights Reserved
Security Export Licensing Division 19 19
METI’s related sections and functions • Security Export Control Policy Division Manages export control regulations Joins discussions in export control related regimes Organizes International outreach activities (meetings, seminars)
• Security Export Inspection Office Makes inspections at exporters Gives advices on ICP Domestic outreach activities Copyright CISTEC(C) 2016 All Rights Reserved
20
Organization exclusively dedicated to STC. CISTEC About CISTEC •Founded in April 1989 •non-profit, non-governmental organization dealing with security export control issues comprehensively. •Associated members: 435(as of Sep. 2016) •Associated University members:24
Copyright CISTEC(C) 2016 All Rights Reserved
21
CISTEC has received the award “Export Controls Consultant of the Year” from WorldECR in 2015
Copyright CISTEC(C) 2016 All Rights Reserved
22
１) Function related to Outreach • Assist METI in Joint Industry Outreach Seminar ・functions as an organizer/co-organizer ・participate JIOS as a lecturer/speaker ・arrange proper lecturers/speakers from members • Participate various outreach/workshop etc. outside Japan organized by other governments, think-tanks, universities etc. as a speaker, panelist to introduce experience/know-how /best practice in Japan • Send mission to US and EU every each year since 2002 and firstly to ASEAN in 2016 to have dialogues with Governments, Associations, Research institutes, law firms, and private companies Copyright CISTEC(C) 2016 All Rights Reserved
23
2) Function related to Capacity-building CISTEC Committees : • • • • • • •
100% volunteer based activity Members from various industries Members with rich experience/background Open-minded dialogue/discussion Spirit of sharing best practice/know-how Can find real specialists of every sector Contacts with responsible officers of METI
Copyright CISTEC(C) 2016 All Rights Reserved
24
Organization of Committees
Copyright CISTEC(C) 2016 All Rights Reserved
25
3) STC Certification Program • • • • •
STC-Associate ： 26,603 holders (34 times Exam.) STC-Advanced ： 781 holders (4 times Exam.) STC-Semi-Expert ： 128 holders (4 times Exam.) STC-Legal Expert ： 311 holders (8 times Exam.) STC-Expert ： 408 holders (11 times Exam.) (As of Sept. 2016) NOTE : - The “ONLY” Certification of Knowledge and Skills on STC - “Good Motivation” to Generate Passion and Purpose for Qualification and Awareness both Inside and Outside of Company Copyright CISTEC(C) 2016 All Rights Reserved
26
2． Industry’s Proactive effort for Capacity-building 1) Establish ICP (internal control program) 2) Conduct In-house trainings/seminars 3) Outsource to various seminars held outside 4) Participate STC related activities outside e.g. CISTEC Committee, working group Copyright CISTEC(C) 2016 All Rights Reserved
27
1) ICP (Internal Compliance Program) • METI’s strong advice to industry since 1987 • Legal requirement since 2010 • Registration of ICP at METI approx. 1500 active exporters as of May 2016 • Publication of approx. 620 registered company name on METI HP as of July 2016 • Condition for obtaining bulk licenses • Annual check by METI if internal procedures are carried out according to ICP • On-site inspection by METI with short notice • Model ICP, ICP Guidance provided by CISTEC Copyright CISTEC(C) 2016 All Rights Reserved
28
2) Industry’s in-house trainings/seminars • • • • •
For top management For middle management For persons in charge/staffs Direct on-site training for overseas offices Direct on-site training for subsidiaries/affiliates inside/outside Japan • By specific business sectors/handling items • By specific themes Copyright CISTEC(C) 2016 All Rights Reserved
29
Thank you very much !! http://www.cistec.or.jp [email protected]
Copyright CISTEC(C) 2016 All Rights Reserved
30
1
Contents 1. Outreach and capacity-building in Japan 1) Joint Industry Seminar 2) Asia Export Control Seminar
2.
Industry’s Proactive effort for Capacity-building Copyright CISTEC(C) 2016 All Rights Reserved
2
1. Outreach and capacity-building in Japan 1) Joint Industry Outreach Seminar (JIOS) •Organizer: METI, Local Government, CISTEC •Participants: Gov. officers, Local industries/Japanese subsidiaries, affiliates •Theme: Importance of Export Control (EC) Recent Trend and Topics on Int’l EC Regime Actual practices in Industry Internal Compliance Program (ICP) etc. Copyright CISTEC(C) 2016 All Rights Reserved
3
Organizing purpose of Joint Industry Outreach Seminar(by METI 2015) In recent years, the procurement activities of goods and technologies related to Weapons of Mass Destructions (WMDs) by the entities of concern, including countries of concern and terrorist groups, have increased sophistication by utilising the means of such as export circumvention or the use of alias. Asian countries and regions are facing increased risk as a point of production or transshipment of WMDs by entities of concern. In order to effectively prevent the proliferation of WMDs as well as to maintain the international security, it is necessary to implement rigorous export control in concert amongst Asian counties and regions. Based on this situation, Japan has been organizing “Joint Industry Outreach Seminar” from 2003 JFY that aims to enhance the effectiveness of the export control of the local firms in Asian countries as well as Japanese firms in that country, and “Asian Export Control Seminar” from 1993 JFY that aims to assist export control officers in Asian countries and regions. Copyright CISTEC(C) 2016 All Rights Reserved
4
Countries where JIOS have been co-organized F.Y.2015: Thailand, Taiwan, Philippine 2014: Taiwan, Malaysia, Philippine 2013:Taiwan, Philippine 2012:Thailand, Vietnam, Indonesia 2011: Hong Kong, Taiwan, Malaysia, Philippine 2010: Malaysia, Philippine, Thailand 2009: Vietnam, Taiwan, Indonesia, Thailand 2008: Hong Kong. Indonesia, Korea 2007: Malaysia, India, Taiwan 2006: Philippine, Thailand, Hong Kong, Korea 2005: Taiwan, Singapore 2004: Korea 2003: China Copyright CISTEC(C) 2016 All Rights Reserved
5
JIOS in Taipei, 18 November 2015 Opening Remarks Mr. Eugene Y.J. Chen Chief Secretary, Bureau Of Foreign Trade, Ministry Of Economic Affairs Mr. Hisashi RIKO Member of the Board and General Manager, Export Services Department, CISTEC Mr. Shuzo TAKADA Director-General, Trade Control Department, Trade and Economy Cooperation Bureau, Ministry of Economy, Trade and Industry (METI),Japan
Copyright CISTEC(C) 2016 All Rights Reserved
6
Theme 1: Overview of Control Systems in Japan and Taiwan and Recent Trend of Control ・Overview of Japan’s Export Control System Mr. Tetsuya SHIMOKAWA, (METI), Japan
・Overview of Taiwan’s SHTC export regulations Mr. Lai, Wei-Kung, Ministry Of Economic Affairs , Taiwan
・ICP Implementation in Japan Mr. Yukio HAYANO, (METI)
・ICP Implementation in Taiwan Ms. Yu, Ya-Wen, Ministry Of Economic Affairs
Copyright CISTEC(C) 2016 All Rights Reserved
・Q&A Session
7
Theme 2: Experience Sharing in Private Sector in Japan and Taiwan ・Export Controls of Toray Industries, Inc. Mr. Takuji TAGAWA, Toray Industries, Inc.
・Export Controls of Taiwan's ICP company Ms. Frieda Huang MEDIATEK INC.
・Q&A Session
Concluding Remarks Mr. Hisashi RIKO, CISTEC Mr. Eugene Y.J. Chen, Ministry Of Economic Affairs
Copyright CISTEC(C) 2016 All Rights Reserved
8
Background and change of surrounding situation in Southeast Asia • • • • • • • •
Economic development Modernization of industry Trans-plant from US, EU, Japan etc. Local production of High tech items Transportation hub-function ASEAN unification, single window policy Front company: fake business, fake user Target as Circumvention point (DPRK) Copyright CISTEC(C) 2016 All Rights Reserved
9
An Example of Cooperation of JPN/HKG Government DC Stabilizing Power Supply Device
02/11/19 DPRK
Procurement Company
Japan
Export Banned By METI
Ｍ Company （Exporter）
03/4/8
Export
Inspection
03/4/4
Request of confiscation of the cargo
METI confiscation
Hong Kong Gov.
03/4/8
Thailand Copyright ⓒ CISTEC 2015 All rights reserved.
Telecom. Company （Importer/Exporter）
10
An Example of Inspection/Confiscation by JAPAN Customs Source: 5th report of panel of experts of UNSC
Yangon, Myanmar Soe Ming Htike Co. Ltd.
Sales/Purchase Contract? Korea Kumpyo Trading Co.?
Tokyo, Japan
WMD sanctions by UN Export/Import ban by METI
Nampo,DPRK
Inspection/Confiscation ‘12/8 Aluminum rods made in DPRK
Japan Customs Singaporean Frag Vessel Singaporean Flag Vessel WAN HAI 215 WAN HAI 313 Transshipment planned..’12/8/14 Transshipped ’12/7/27 Transshipped ’12/8/9
Kelang, Malaysia Copyright ⓒ CISTEC 2015 All rights reserved.
Shekou, China
Dalian, China 11
Aluminum Rods confiscated from the vessel bound for Myanmar at Tokyo Port 2012.8
Source: 5th report of panel of experts of UNSC 12
Actual situation of STC implementation in Southeast Asia • Different basic stance(policy) to STC, country by country • Different level of Laws and regulations • STC authorities, agencies • Insufficient training and educational systems • Awareness of industry and academia • Limited, almost no awareness of SME • STC outreach by the USA, EU Copyright CISTEC(C) 2016 All Rights Reserved
13
Effects of JIOS • • • • •
Level-up of awareness Better understanding on latest real situation Sharing of best practice/experience/knowledge Personal networking / cooperative operation Regionally, globally coordinated STC program
Copyright CISTEC(C) 2016 All Rights Reserved
14
Problems which still remain • Various level of STC implementation • Sensitive geopolitical issues/serious economical, political pressure • Incorrigible Belief that STC damages export or leads bad effect • Resistance of Academia against STC (academic freedom) • No practical countermeasures against illegal technology-transfer • Long-standing world wide issue on SME vs STC Copyright CISTEC(C) 2016 All Rights Reserved
15
Challenges • Encourage best practice/knowledge/experience sharing • Strengthen close, frank communication between Gov./Industry/Academia • Sustainable training plan with long-term view for concrete development program • Introduction of successful cases of pioneer countries • Taking AEO concept into STC, working with WCO • Cooperate with other outreaches by the US, EU, etc. Copyright CISTEC(C) 2016 All Rights Reserved
16
２) Asian Export Control Seminar Where: Tokyo Who: CISTEC, METI, MOFA, How often: Every year, since 1993 Whom: Asian neighbors What: Presentations/discussions on the latest EC related issues, Dialogues/Networking among participants Participants in 2016: 21 Countries/Region from Asia（Taiwan・・） 8 Supporting countries（US, EU, Australia, etc.） 11 Supporting Org. (UN, WCO, SIPRI, Universities, etc.) 4 Regimes (WA, NSG, AG, MTCR) Copyright CISTEC(C) 2016 All Rights Reserved
17
Photos of Asian Export Control Seminar
Copyright CISTEC(C) 2016 All Rights Reserved
18
Governmental unique authority on STC, METI
The Trade and Economic Cooperation Bureau The Trade Control Department
Security Export Control Policy Division
Security Export Inspection Office Copyright CISTEC(C) 2016 All Rights Reserved
Security Export Licensing Division 19 19
METI’s related sections and functions • Security Export Control Policy Division Manages export control regulations Joins discussions in export control related regimes Organizes International outreach activities (meetings, seminars)
• Security Export Inspection Office Makes inspections at exporters Gives advices on ICP Domestic outreach activities Copyright CISTEC(C) 2016 All Rights Reserved
20
Organization exclusively dedicated to STC. CISTEC About CISTEC •Founded in April 1989 •non-profit, non-governmental organization dealing with security export control issues comprehensively. •Associated members: 435(as of Sep. 2016) •Associated University members:24
Copyright CISTEC(C) 2016 All Rights Reserved
21
CISTEC has received the award “Export Controls Consultant of the Year” from WorldECR in 2015
Copyright CISTEC(C) 2016 All Rights Reserved
22
１) Function related to Outreach • Assist METI in Joint Industry Outreach Seminar ・functions as an organizer/co-organizer ・participate JIOS as a lecturer/speaker ・arrange proper lecturers/speakers from members • Participate various outreach/workshop etc. outside Japan organized by other governments, think-tanks, universities etc. as a speaker, panelist to introduce experience/know-how /best practice in Japan • Send mission to US and EU every each year since 2002 and firstly to ASEAN in 2016 to have dialogues with Governments, Associations, Research institutes, law firms, and private companies Copyright CISTEC(C) 2016 All Rights Reserved
23
2) Function related to Capacity-building CISTEC Committees : • • • • • • •
100% volunteer based activity Members from various industries Members with rich experience/background Open-minded dialogue/discussion Spirit of sharing best practice/know-how Can find real specialists of every sector Contacts with responsible officers of METI
Copyright CISTEC(C) 2016 All Rights Reserved
24
Organization of Committees
Copyright CISTEC(C) 2016 All Rights Reserved
25
3) STC Certification Program • • • • •
STC-Associate ： 26,603 holders (34 times Exam.) STC-Advanced ： 781 holders (4 times Exam.) STC-Semi-Expert ： 128 holders (4 times Exam.) STC-Legal Expert ： 311 holders (8 times Exam.) STC-Expert ： 408 holders (11 times Exam.) (As of Sept. 2016) NOTE : - The “ONLY” Certification of Knowledge and Skills on STC - “Good Motivation” to Generate Passion and Purpose for Qualification and Awareness both Inside and Outside of Company Copyright CISTEC(C) 2016 All Rights Reserved
26
2． Industry’s Proactive effort for Capacity-building 1) Establish ICP (internal control program) 2) Conduct In-house trainings/seminars 3) Outsource to various seminars held outside 4) Participate STC related activities outside e.g. CISTEC Committee, working group Copyright CISTEC(C) 2016 All Rights Reserved
27
1) ICP (Internal Compliance Program) • METI’s strong advice to industry since 1987 • Legal requirement since 2010 • Registration of ICP at METI approx. 1500 active exporters as of May 2016 • Publication of approx. 620 registered company name on METI HP as of July 2016 • Condition for obtaining bulk licenses • Annual check by METI if internal procedures are carried out according to ICP • On-site inspection by METI with short notice • Model ICP, ICP Guidance provided by CISTEC Copyright CISTEC(C) 2016 All Rights Reserved
28
2) Industry’s in-house trainings/seminars • • • • •
For top management For middle management For persons in charge/staffs Direct on-site training for overseas offices Direct on-site training for subsidiaries/affiliates inside/outside Japan • By specific business sectors/handling items • By specific themes Copyright CISTEC(C) 2016 All Rights Reserved
29
Thank you very much !! http://www.cistec.or.jp [email protected]
Copyright CISTEC(C) 2016 All Rights Reserved
30
