Pakistan's Strategic Export Controls(Latest Developments)

ISSI Seminar, Islamabad3 May 2016

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Commitment, Responsibility, Due Diligence

• 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

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Sequence

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 – 2009

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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 tothe designing, development, production, stockpiling, maintenance or use ofnuclear 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 thislegislation. Also provides for the establishment of an Oversight Board tomonitor the implementation

• Comprehensive control lists and catch-all provision

• Licensing and record keeping provisions

• The Act also covers intangible technology transfer by electronic means likeemail, fax, telephone etc. or through technical assistance in the form ofinstruction, skill, training, working knowledge, consulting services, etc

• Penal provisions up to 14 years imprisonment and Rs. 5 million fine plusconfiscation of assets/property

• Act as Licensing and Enforcement CoordinatingAuthority

• Single Agency – Technical experts (Policy, Licensing,Regulations, Enforcement, IT)

• Makes Rules and Regulations

• Reviews Control Lists (CLs)

• Outreach & CIT

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Strategic Export Control Division (SECDIV)

Director General

Director

Enforcement

Director

Licensing & RegulationsDirector

Policy

Deputy Director

Policy

Deputy Director

Licensing

Deputy Director

Regulations

4 x Licensing

Assistant Directors

2 x Regulations

Assistant Directors

Deputy Director

Investigation/LegalDeputy Director

Enforcement

4 x Licensing

Assistant Directors

2 x Database

Manager / IT

Professional

SECDIV- Organogram

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Pakistan’s Strategic Export Control Regime

• Oversight Board

– Oversight Board was approved on July 11, 2007. It is Chaired by theSecretary , Ministry of Foreign Affairs

– 11 Members – representing different Ministries/Departments

– Functions

o To monitor implementation of SECA-2004

o To monitor functioning of SECDIV and provide guidance /directionsfor achieving the set objectives

Contd…

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SECDIV Licensing Process

Verify Classification

Submit License Application

Registration Number by

SECDIV (SRN)

Apply for Registration

Decision

Interagency Review

Technical & Policy Review

WeBOCWeb Based One

Customs

Applicant & Other Relevant Departments

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Pakistan’s Strategic Export Control RegimeContd…

SECDIV Activities - Latest Developments

Outreach and Awareness Raising:-

• Targeted Outreach Plan formulated - Approved byChairman OSB

– Visited major industrial hubs

– Discussion/interaction with academia & research institutions

• CIT - (Customs, Border Agencies, Pakistan Post) – 197officials trained so far

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SECDIV Activities

• Trainingo Basic Orientation Course - module developed – three cycles conducted

so far

• Strengthening Export Control Enforcemento Commodity Identification Training (CIT) – Institutionalized

o Introductory lecture on CIT during International Course on “PostalAviation and Mail Security for ECO Countries” at ECO Postal StaffCollege

o Pakistan Nuclear Regulatory Authority’s Nuclear Security Action Plan(NSAP)

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Contd…

SECDIV Activities

• Strengthening inter-agency coordination:-

o Services are generally administered by separate agencies and eachone has own priorities and interests

o Inter-agency coordination needed to address systemic loop holes

o Shared responsibility should not create gaps

• Outreach and awareness raising visits have helped inaddressing overlapping

• SECDIV regularly interacts with other regulatoryauthorities such as NA CWC and PNRA etc.

• Online interface through WeBOC will further enhancecoordination with Customs

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Contd…

Outreach – Lahore Chamber of

Commerce and Industry

CIT – FBR Training Academy

Lahore CIT – Sost Dry Port

IDEAS 2014

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Contd…

SECDIV Activities

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SECDIV Activities

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

Contd…

SECDIV Activities

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Contd…

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 aninter-ministerial body

Contain items requiring a license. There is “catch-all” provision in the law

1st review in July 2011

2nd 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 exportcontrol regimes are regularly monitored

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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’

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Engagement with InternationalExport Control Regimes

• Engagement with the international export control regimesis considered important

• Earlier in 2013, trilateral meeting with the chairmanshiptroika of the NSG was held. NSG troika invited to visitPakistan

• Regular interaction with MTCR. MTCR delegation visitedIslamabad in 2103, under the German Chairmanship and inFebruary 2016

• Hosted a delegation of AG, in February 2013

• Regular interaction with WA and participation in itsoutreach meetings since 2012

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Thank You