Responsibilities of Persons.
SEC. 10. Responsibilities of Persons. – It shall be the responsibility of any person, subject to this Act; who intends to engage in the export, import, transit, and transshipment of strategic goods, under the NSGL, or the provision of related services to obtain an authorization from the STMO as provided in this Act and its implementing rules and regulations. In addition, any person who intends to engage in the re-export or reassignment of strategic goods is required to obtain an authorization when this has been made a condition for the authorization of the exports from the Philippines.
No person shall be allowed to place .any strategic goods in or on any carrier located within the territorial and economic jurisdiction of the Philippines without the consent of the owner or operator of the carrier. Such owners and operators shall be prohibited from allowing the placement of strategic goods in or on any carrier unless the person presents an authorization issued by the STMO to export, import, transit or transship strategic goods.
All persons engaged in the business involving strategic goods are required to keep at their principal place of business, in the manner prescribed by the IRR to be issued by the NSC-STMCom for a period often (10) years from the date of the completion of the transaction, all records of the transaction and/or books of accounts, business and computer systems and all commercial and technical data related to the transaction including:
a. The description of the strategic goods or related services;
b. The quantity and the value of the strategic goods or value of the related service provided;
c. The name and address of the parties in the transaction or activity;
d. The end-use and end-user of the strategic goods or related services; and
e. The date of the transaction or activity.
The customs broker shall submit to the BOC, a copy of the authorization and a copy of the extract of the manifest of the carrier, in or on which the strategic goods were loaded prior to its departure or arrival.
End-Use Controls.
SEC. 11. End-Use Controls. – End-use controls may be imposed on strategic goods that are not in the NSGL (unlisted goods) and related services, and shall apply as follows:
a. An individual license shall be required for the export, re-export, reassignment, transit and transshipment of unlisted goods, or the provision of technical assistance or related services if the exporter or principal party has been informed by the STMO that the goods or services are or may be used, partly or entirely, in-connection with the acquisition, development, production, handling, operation, maintenance, storage, detection, identification or dissemination of WMDs or their means of delivery;
b. An individual license shall also be required for the export, re-export, reassignment, transit and transshipment of unlisted goods, or the provision of technical assistance or related services if the purchasing country or country of destination or juridical or natural person receiving the goods is subject to an international sanction or an arms embargo imposed by a binding resolution of the UN Security Council and if the exporter or principal party has been informed by the STMO in close consultation with the NSC-STMCom that the goods in question are or may be used, partly or entirely, for a military end-use;
c. An individual license shall also be required for the export of unlisted goods, or the provision of related services if the exporter has been informed by the STMO that the goods in question are or may be used, partly or entirely, as parts or components of military items listed in the NSGL, that have been exported from the territory of the Philippines without license or in violation of a license; and
d. If an exporter or principal party has knowledge or has grounds for suspecting that unlisted goods proposed for export are or may be used, partly or entirely, for any of the uses referred to in paragraphs (a) and (b), or for suspecting that the provision of related services will facilitate that use, the exporter or principal party must notify the STMO. The STMO shall decide whether or not such goods are subject to a license.
Control Over End-Use of Strategic Goods in the Philippines Under Governmental End-Use Assurances.
SEC. 12. Control Over End-Use of Strategic Goods in the Philippines Under Governmental End-Use Assurances. – The STMO, in consultation with the NSC-STMCom as may be necessary, is authorized to certify the end-use of strategic goods in the Philippines based on the International Import Certificate, End-Use Certificate and Delivery Verification Certificate.
The STMO, within the limits of its competence on the basis of end-use licensing documents, shall exercise the function of certification of the end-use of strategic goods. In addition to the standard end-use certification assurances contained in the end- use documents, the STMO, in consultation with the NSC- STMCom, may add other terms and conditions in order to meet the requirements of the exporting country of the goods and the security interest of the Philippines.
The STMO shall be responsible for informing the competent authority of the end-use country and all countries through which the goods will be transshipped or transited. In fulfilling this responsibility, the STMO may request additional documents such as declarations of the shippers or refer to other relevant information obtained in the course of performing their functions under this Act.
The application, issuance, modification, suspension, or revocation procedures of end-use certification documentation shall be in accordance with the IRR and in consultation with the NSC-STMCom as may be necessary.
Registration.
SEC. 13. Registration. – Any person who engages or intends to engage in the export, import, and re-export of strategic goods or provide related services shall register directly with the STMO.
Issuance of Authorization.
SEC. 14. Issuance of Authorization.- Any person, prior to engaging in the export, import, re-export, reassignment, transit, transshipment of strategic goods, or the provision of technical assistance or related services shall apply for an authorization from the STMO. The application shall be in the manner and form prescribed under the IRR of this Act. The STMO is authorized to collect fees to cover the cost to be incurred in the processing of applications for authorization.
The STMO may issue an authorization to an applicant subject to conditions it may deem fit. It may renew an authorization with or without conditions.
The STMO may deny, issue with or without conditions, modify, limit, suspend, revoke, or annul the authorization based on its discretionary powers as specified in the IRR.
Exemption from Authorization Requirement.
SEC. 15. Exemption from Authorization Requirement. – An authorization is not required under the following circumstances:
a. Import of strategic goods by the government for the use of the Philippine military or police forces;
b. Temporary export of strategic goods by the government for the use of the Philippine military or police forces assigned outside of Philippine jurisdiction;
c. Export, transit, and transshipment of strategic goods •which are provided in connection with a military, peacekeeping, or government humanitarian mission;
d. Export, import, transit and transshipment of strategic goods by the government in connection with law enforcement activities; and
e. Any other circumstances as provided by the NSC-STMCom pursuant to Section 7(f) of this Act.
Administrative Appeals.
SEC. 16. Administrative Appeals. – Any person whose .registration or authorization has been denied, suspended, modified, limited, revoked, or annulled, and any person upon whom administrative penalties have been imposed shall have the right =to appeal in accordance with the IRR. The decision on the appeal is final and executory.
Liability Limitation.
SEC. 17. Liability Limitation. – If the STMO denies, suspends, limits, revokes or annuls an authorization or registration, it shall not be liable for damages that may be caused by such acts.
Confidentiality of Business Proprietary Information.
SEC. 18. Confidentiality of Business Proprietary Information. – Any information obtained under this Act that are marked as confidential business information shall not be disclosed to any other party except in the furtherance of justice and law enforcement, national security or foreign policy interest, as determined by the STMO, unless the party providing such information has consented to its disclosure.
Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).
