Pakistan's Strategic Export Controls (Latest Developments)
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1 Commitment, Responsibility, Due Diligence Pakistan's Strategic Export Controls (Latest Developments) ISSI Seminar, Islamabad 3 May
2 Sequence An Overview of Pakistan s Strategic Export Control System Outreach and Awareness Raising Capacity Building and CIT Access to WeBOC SLIMS (SECDIV Licensing and Information Management System) Control Lists Review/Revision Internal Compliance Programme (ICP) Guidelines Engagement with International Export Control Regimes 2
3 Pakistan s Strategic Export Control System Export Control Act No V 2004 Control Lists 2005 Establishment of SECDIV 2007 Oversight Board 2007 Export Control (Licensing & Enforcement) Rules
4 Salient Features of Export Control Act 2004 The Act enables the Government to control export, re-export, transshipment, transit of goods, technologies, material and equipment that may contribute to the designing, development, production, stockpiling, maintenance or use of nuclear and biological weapons and their delivery systems Wide jurisdiction (also includes Pakistanis visiting or working abroad) It also prohibits diversion of controlled goods and technologies Envisages an authority to administer rules and regulations framed under this legislation. Also provides for the establishment of an Oversight Board to monitor the implementation Comprehensive control lists and catch-all provision Licensing and record keeping provisions The Act also covers intangible technology transfer by electronic means like , fax, telephone etc. or through technical assistance in the form of instruction, skill, training, working knowledge, consulting services, etc Penal provisions up to 14 years imprisonment and Rs. 5 million fine plus confiscation of assets/property 4
5 Strategic Export Control Division (SECDIV) Act as Licensing and Enforcement Coordinating Authority Single Agency Technical experts (Policy, Licensing, Regulations, Enforcement, IT) Makes Rules and Regulations Reviews Control Lists (CLs) Outreach & CIT 5
6 SECDIV- Organogram Director General Director Policy Director Licensing & Regulations Director Enforcement Deputy Director Policy Deputy Director Enforcement Deputy Director Investigation/Legal 2 x Database Manager / IT Professional Deputy Director Regulations Deputy Director Licensing 4 x Licensing Assistant Directors 2 x Regulations Assistant Directors 4 x Licensing Assistant Directors 6
7 Pakistan s Strategic Export Control Regime Oversight Board Oversight Board was approved on July 11, It is Chaired by the Secretary, Ministry of Foreign Affairs 11 Members representing different Ministries/Departments Functions o To monitor implementation of SECA-2004 Contd o To monitor functioning of SECDIV and provide guidance /directions for achieving the set objectives 7
8 Pakistan s Strategic Export Control Regime Contd SECDIV Licensing Process Apply for Registration Registration Number by SECDIV (SRN) Submit License Application Applicant & Other Relevant Departments Decision Verify Classification WeBOC Web Based One Customs Interagency Review Technical & Policy Review 8
9 SECDIV Activities - Latest Developments Outreach and Awareness Raising:- Targeted Outreach Plan formulated - Approved by Chairman OSB Visited major industrial hubs Discussion/interaction with academia & research institutions CIT - (Customs, Border Agencies, Pakistan Post) 197 officials trained so far 9
10 SECDIV Activities Contd Training o Basic Orientation Course - module developed three cycles conducted so far Strengthening Export Control Enforcement o o o Commodity Identification Training (CIT) Institutionalized Introductory lecture on CIT during International Course on Postal Aviation and Mail Security for ECO Countries at ECO Postal Staff College Pakistan Nuclear Regulatory Authority s Nuclear Security Action Plan (NSAP) 10
11 SECDIV Activities Strengthening inter-agency coordination:- o Services are generally administered by separate agencies and each one has own priorities and interests o Inter-agency coordination needed to address systemic loop holes o Shared responsibility should not create gaps Contd Outreach and awareness raising visits have helped in addressing overlapping SECDIV regularly interacts with other regulatory authorities such as NA CWC and PNRA etc. Online interface through WeBOC will further enhance coordination with Customs 11
12 SECDIV Activities Contd Outreach Lahore Chamber of Commerce and Industry IDEAS 2014 CIT FBR Training Academy Lahore CIT Sost Dry Port 12
13 SECDIV Activities Contd SECDIV Access to WeBOC:- WeBOC (Web Based One Custom) is electronic Customs filing and clearance system Customs has agreed in principle to provide access to SECDIV Will facilitate real time sharing of information Red flag and risk assessment of dual use items will be built in Interface between SLIMS and WeBOC will be set up 13
14 SECDIV Activities Contd 14
15 Control Lists Review Initially notified in October 2005 CLs Classification is based on the EU pattern Review Process Review is done as a routine by a standing JWG, which is an inter-ministerial body Contain items requiring a license. There is catch-all provision in the law 1 st review in July nd review in March 2015 As of now, CLs are in complete harmony with the lists maintained by NSG, MTCR, and AG Technological advancements and amendments done by international export control regimes are regularly monitored 15
16 Internal Compliance Guidelines notified through Gazette Notification on 3 October 2014 Two main sections One generally for all entities including exporters, manufacturers, freight forwarders etc. and one specific to academic/research institutions ICP is an in-house mechanism consisting of policies, procedures and guidelines that entities adopt to facilitate compliance for minimizing the risk of law violations Sets out guidelines on self regulation for a small, medium, and large entity An effective institutional ICP provides a method of routinely screening transactions, contacts, and dealings etc. Self regulation contributes to overall effectiveness of the country s export control system Strengthens Catch all 16
17 Engagement with International Export Control Regimes Engagement with the international export control regimes is considered important Earlier in 2013, trilateral meeting with the chairmanship troika of the NSG was held. NSG troika invited to visit Pakistan Regular interaction with MTCR. MTCR delegation visited Islamabad in 2103, under the German Chairmanship and in February 2016 Hosted a delegation of AG, in February 2013 Regular interaction with WA and participation in its outreach meetings since
18 Thank You 18
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