외교부

CO-CHAIRS’ SUMMARY OF ASEAN REGIONAL FORUM (ARF)

EXPORT LICENSING EXPERTS MEETING

Singapore, 17-18 November 2005

1.      As endorsed by the 12^th ASEAN Regional Forum in Vientiane on 29 July, 2005, Singapore and Canada co-hosted the ARF Export Licensing Experts Meeting on 17-18 November, 2005, in Singapore.

2.      The meeting was co-chaired by Ms. Teo Siew Lan, Assistant-Director-General (Controls), Singapore Customs, and Mr. Michael Rooney, Director, Export Controls Division, International Trade Canada.  The meeting was attended by representatives of ARF participants, namely Australia, Brunei, Canada, China, European Union, India, Japan, the Republic of Korea, Lao PDR, Malaysia, New Zealand, Pakistan, the Philippines, the Russian Federation, Singapore, Thailand, the United States of America, Vietnam and the ARF Unit of the ASEAN Secretariat.  The Chairman of the Missile Technology Control Regime (MTCR), Ambassador Manuel Viturro de la Torre also participated in the meeting.  The list of delegates appears as ANNEX A.

AGENDA ITEM 1: WELCOME AND OPENING ADDRESS

3.      In the welcome address, Mr. Teo Eng Cheong, Director-General, Singapore Customs, welcomed the participants to the meeting and underlined the importance of export controls in the fight against the proliferation of weapons of mass destruction.  He reminded the participants that effective licensing systems contribute to reducing the risk of diversion.  In his opening address, Mr. Michael Rooney also stressed the importance of export controls as a delicate balance between the commercial interests and security interests of every country.  He outlined the key elements of effective licensing and raised the importance of industry awareness and outreach.  The opening statements appear as ANNEXES B and C.

AGENDA ITEM 2: WHAT IS THE SCOPE OF EXPORT CONTROLS

4.      The Meeting heard a presentation by Singapore on its export control regime and the requirements for physical transfers on exports, re-exports, transhipment and transit, the intangible transfer of technology and brokering activities.  Participants were also briefed by the United States on the licensing of intangible transfers of technology, including the US rules on “deemed” exports and re-exports. These presentations appear as ANNEXES D and E.

5.      Meeting participants exchanged views on the key aspects of physical transfers, including the process leading to the issuance or denial of a permit application.  Participants also discussed the challenges related to controlling the intangible transfer of technology. 

AGENDA ITEM 3: HOW TO ADMINISTER THE CONTROL LIST

6.      Australia made a presentation on the administration of control lists from the Wassenaar Arrangement, the Nuclear Suppliers Group and the Australia Group.  Ambassador Manuel Viturro de la Torre, Chairman of the Missile Technology Control Regime (MTCR), briefed the participants on the MTCR.  The participants discussed the different aspects of the munitions list and dual-use list from the various control lists.  Those who are members of the international export control regimes recognized the importance of updating and applying the regime lists in the national context and encouraged countries in the region to consider subscribing to the guidelines of the various regimes.  These presentations appear as ANNEXES F and G.

AGENDA ITEM 4: HOW TO LICENSE EXPORT CONTROLS?

7.      Canada briefed participants on critical elements of effective export controls, including the licensing approving authorities, the licence application process, complementary measures and the inter-agency consultation and coordination process (ANNEX H).  The US shared the experience of its Department of Commerce on end-user verification checks and on risk analysis (ANNEX I). 

8.      Participants discussed the challenges faced by all countries in conducting end-use checks and noted that some countries involve their diplomatic missions abroad to assist their licensing authorities in the pre-licence checks.

AGENDA ITEM 5: WHAT ARE THE CHALLENGES IN LICENSING EXPORT CONTROLS?

9.      Representatives from China and the Philippines briefed participants on their respective challenges and experience in licensing export controls.  Delegates discussed various issues including the legislative basis to license export controls and the need to involve industry.  Participants recognized that the intangible transfer of technology constitutes one of the biggest challenges for export controls.  They also discussed the difficulties for some countries with limited resources to implement comprehensive export control systems and the need for greater cooperation within the ARF on this issue.  Presentations by China and the Philippines appear as ANNEXES J and K.

AGENDA ITEM 6: HOW TO FACILITATE LEGITIMATE TRADE IN EXPORT CONTROLS

10.  Under this agenda item, Singapore presented a system (Approved Company Scheme) which recognizes companies and organisations with an effective internal compliance program (ANNEX L).  Participants discussed the benefits and challenges of an Internal Compliance Program and the means to effectively develop such a program.  In this context, participants also discussed the use of internal company watch lists in their licence processing and other issues related to penalties on non-compliance.  Participants also discussed the benefits of bulk permits in the facilitation of legitimate trade and underlined the importance of carefully balancing trade and security interests. 

11.  The EU also presented various tools available to facilitate legitimate trade in export controls, including the “Standard Individual Export Licences”, the “Open Individual Export Licence”, the “Global Project Licence”, the “Open General Export Licences”, the “Community General Export Authorization”, the “Standard Individual Trade Control Export Licence”, the “Open Individual Trade Control Export Licence” and the “Open General Trade Control Licence” (ANNEX M).

AGENDA ITEM 7: HOW AND WHAT TO TELL THE INDUSTRY ABOUT EXPORT CONTROLS

12.  The participants discussed the importance of conducting industry outreach in order to create awareness within industry of export controls and educate the exporting community on all aspects of the export control requirements.  Canada, Japan and Singapore shared their respective experiences in industry outreach.  Participants recognized that the establishment of Internal Compliance Programs is also important for industry outreach.  The meeting also identified the main tools to conduct industry outreach, including seminars, courses, field visits, news releases and the establishment of mailing lists.  Participants also discussed the importance of involving industry early in the process for countries establishing export control systems.  During the discussion on industry outreach, the necessity to raise awareness amongst government authorities was also raised, including the importance of providing training to enforcement authorities.  Presentations by Canada, Japan and Singapore appear as ANNEXES N, O and P respectively.

AGENDA ITEM 8: BREAKOUT GROUP DISCUSSIONS

13.  Following the exchange of views in plenary on the key elements of export licensing, delegates participated in four breakout group discussions. 

14.  Singapore led the discussion on the challenges in product classification and on the challenges ahead in licensing export controls in the Asia Pacific region (ANNEXES Q and R).  Canada led the discussion on how to ensure compliance with licence conditions (ANNEX S) while the EU made a presentation on how to reach out to the Research and Development and brokering industries (ANNEX T). 

15.  The breakout groups allowed the participants to explore in greater detail some issues discussed in the plenary and to touch upon other aspects related to export licensing.  The importance for governments to be actively engaged with industry and academia in promoting compliance with Intangible Technology Transfer laws was stressed in breakout groups.  The plenary also noted recommendations from the breakout groups, including the proposal that ARF countries which can provide technical assistance identify their area of specialization with a view to sharing that information with recipient countries.  The breakout groups also contributed to the identification of best practices in export licensing.

AGENDA ITEM 9: STATUS OF IMPLEMENTATION OF EXPORT CONTROLS BY ARF COUNTRIES

16.  Under this agenda item, participants exchanged views on export controls in general and the challenges they are facing in implementing export control systems.  The meeting recognized that export controls should be seen as part of the broader ARF security agenda, especially as the threat of terrorism, the proliferation of weapons of mass destruction, the spread and diversion of conventional arms and dual-use technologies continue to challenge the security of our region.  Presentations by India, Brunei, New Zealand and Vietnam appear in ANNEXES U, V, W and X respectively.

AGENDA ITEM 10: SUMMARY AND CONCLUSION

17.  The participants identified a series of best practices in export licensing.  These best practices are not legally-binding.  They constitute a tool available to countries to enhance the licensing process in export controls.  Participants recommended that the attached draft of best practices in ANNEX Y be submitted for consideration and endorsement to the ARF.  Participants were invited to submit their comments on the draft best practices to the co-chairs by 20 December 2005.

18.  Participants welcomed this first ever ARF meeting on export licensing and expressed the hope that ARF participants will increase their cooperation on export controls with a view to enhancing export licensing capacity in the region.  Recognizing the value of experts meetings in export controls, participants invited the ARF to consider the possibility of holding similar experts meetings on export control related topics such as enforcement issues.  They also recommended that a list of points of contact for export licensing in ARF countries be established.  An initial list compiled from meeting participants appears in ANNEX Z.  The co-chairs sought the support of the ARF Unit to follow-up with ARF participants in order to complete the list and update it on a regular basis.

ACKNOWLEDGEMENT

19.  Participants expressed their gratitude and appreciation to the people and Government of Singapore for the warm hospitality and the excellent arrangements made for the meeting.  The participants also thanked Canada for co-hosting the meeting.

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