Govt putting in place export control rules

Stuart Simons, customs and global trade leader for the global professional services firms, said the Cabinet had approved in principle a draft regulation from the Commerce Ministry for an integrated export-control system to monitor the exports – including transit and trans-shipment – of dual-use items.

He said it was the strongest message that controls would finally be introduced.

The draft would be delivered to a review committee and proposed to the Cabinet for further review and consideration, he said.

Dual-use goods are products and technologies commonly used for commercial and civilian applications but are also capable of being used in the proliferation of weapons of mass destruction. Dual-use products include carbon fibre and graphite.

Simons said the sectors principally affected by dual-use controls were wide ranging and included aerospace, marine and defence, special materials and related equipment, material processing equipment and technology, and biotechnology.

He said that with increasing concerns on global safety and security, governments worldwide, including in Southeast Asia, had introduced or intend to introduce export controls on dual-use goods to align with the global trading community’s emphasis on maintaining a secured supply chain.

Although the regulation relating to Thailand’s export control system was yet to be published, the Commerce Ministry had indicated it would adopt the list of controlled dual-use goods from the European Union.

The regulation aligned with the export control systems that were currently implemented in neighbouring countries, including Singapore and Malaysia, he said.

An exporter of the listed dual-use goods would be required to obtain export permission from the Commerce Ministry. Failure to obtain the necessary licence may result in a significant fine and imprisonment.

Simons said for goods listed in customs tariff harmonisation codes such as graphite and petroleum gas, which were not otherwise included in the dual-use list, exporters would need to self-certify to the Foreign Trade Department of the Commerce Ministry that the goods should not be considered as dual-use prior to exportation. Failure to perform the self-certification may result in fine and imprisonment.

Over the next few months, he anticipates more announcements will be made by the Commerce Ministry other government authorities on the specifics of the export control requirements that will need to be satisfied.

He said exporters needed to keep abreast of the announcements and begin to consider how these new regulations would impact on their business model and operational processes.

Companies exporting dual-use items currently listed under the European Union control list from Thailand should do this:

lRaise their awareness on export control of dual-use items and how it impacts the company’s business.

lAssess whether their goods for exports would likely be caught under the EU control list.

lReview current processes to ensure that they have the appropriate processes and procedures in place to monitor outward movement of their items from Thailand.

lAssess whether systems enhancements need to be introduced to ensure that dual-use items subject to export control could be flagged.