Question & AnswerQ&A (Republic Act No. 10697)
The official title is the "Strategic Trade Management Act (STMA)."
The policy is to be free from Weapons of Mass Destruction (WMD) within its territory consistent with national interest and international commitments, to prevent proliferation of WMD and maintain peace and security while promoting economic growth through responsible management of strategic goods and related services.
It applies to any natural or juridical person in the Philippines engaged in export, import, transit, or transshipment of strategic goods, as well as Filipino persons providing related services wherever located, including re-export and reassignment of strategic goods.
The NSGL is a list describing strategic goods subject to authorization, conforming with international non-proliferation obligations and treaties. It contains three annexes: Military Goods (Annex 1), Dual Use Goods (Annex 2), and Nationally Controlled Goods (Annex 3).
Strategic goods are products considered of military importance, either prohibited or subject to specific export conditions, generally suitable for military use or WMD production, including goods listed in the NSGL Annex 1, 2, and 3, as well as any unlisted goods subject to authorization.
The Strategic Trade Management Office (STMO) is responsible for issuing or denying authorizations for export, import, re-export, reassignment, transit, transshipment of strategic goods, and provision of related services.
Any person who willfully violates the Act shall be imprisoned for six years and one day to twelve years and fined from one million pesos to five million pesos, depending on the severity of the violation.
The STMO can impose limitation, revocation or annulment of authorizations or registrations, fines up to P250,000 or twice the value of the goods/services, and request cancellation or suspension of the entity's license to operate.
It serves as the central authority on strategic trade management, formulating policies, establishing the NSGL, reviewing appeals, coordinating with agencies and foreign entities, and implementing this Act effectively.
Authorization is not required for import of strategic goods by the government for Philippine military or police use, temporary export for the same purpose, goods provided in military, peacekeeping or humanitarian missions, government law enforcement activities, and other exemptions provided by NSC-STMCom.