Declaration of Policy
- State policy to prevent proliferation of Weapons of Mass Destruction (WMD) within the Philippines.
- Commitment to international obligations such as UN Security Council Resolution 1540.
- Aim to maintain peace, security, and economic growth via responsible management of strategic goods and related services.
- Management of trade aligned with international standards to support counter terrorism, crime control, and public safety.
Scope and Coverage
- Applies to any natural or juridical person operating in the Philippines dealing with export, import, transit, transshipment, or related services of strategic goods.
- Includes Filipino persons wherever located.
- Covers re-export and reassignment of strategic goods from the Philippines.
National Strategic Goods List (NSGL)
- A list specifying strategic goods subject to authorization.
- Must conform with international treaties and nonproliferation obligations.
- Published initially and updates published in the Official Gazette and newspapers.
- Comprises three annexes: Military Goods, Dual Use Goods, and Nationally Controlled Goods.
Definition of Terms
- Detailed definitions including:
- Authorization: licenses issued by STMO.
- Carrier: any transportation mode.
- Dual-use goods: items usable for civil and military purposes related to WMD.
- End-user and end-user certificate definitions.
- Strategic goods: items of military importance under NSGL.
- Related services: brokering, financing, transporting, technical assistance.
- WMD: weapons causing death or injury via chemicals, biological agents, radiation.
Implementing Structure and Mechanism
- NSC-Strategic Trade Management Committee (NSC-STMCom) as central authority with 13 key government members.
- Supported by agencies like Bureau of Customs, Armed Forces, PNP, and others.
Powers and Functions of NSC-STMCom
- Formulate policies and guidelines.
- Establish and update NSGL.
- Develop standard end-user certification.
- Monitor STMO implementation.
- Review appeals.
- Establish authorization exemptions.
- Coordinate with government and foreign entities.
STMO: Executive and Technical Arm
- Created under Department of Trade and Industry.
- Led by Director responsible for enforcing mandates.
- Organizational structure approved by DBM.
Powers and Functions of STMO
- Implement NSC-STMCom policies.
- Manage registration and maintain database.
- Issue or deny authorizations.
- Conduct investigations and enforcement.
- Coordinate with other agencies.
- Conduct training and facilitate international cooperation.
Responsibilities of Persons
- Requirement to obtain authorization for activities involving strategic goods.
- Must present authorization before placing goods on carriers.
- Record-keeping obligations for ten years including transaction and end-user details.
- Customs brokers must submit documentation to Bureau of Customs.
End-Use Controls
- License required for unlisted goods if related to WMD or embargoed destinations.
- Exporters must notify STMO when suspecting misuse.
Control Over End-Use in the Philippines
- STMO certifies end-use based on import certificates and related documents.
- May impose additional terms to meet exporting country requirements and national security.
- Responsible for informing authorities of destination and transit countries.
Registration
- Mandatory registration with STMO for those engaging in strategic goods trade or related services.
Issuance of Authorization
- Required before engaging in strategic goods transactions.
- Application procedures and fees prescribed by IRR.
- STMO may issue, renew, condition, suspend, revoke authorizations.
Exemptions from Authorization
- Government uses of strategic goods for military or police exempted.
- Humanitarian, peacekeeping, and law enforcement activities by government also exempted.
- Other exemptions by NSC-STMCom consideration.
Administrative Appeals
- Right to appeal decisions relating to registration or authorization.
- Appeals decision is final.
Liability Limitation
- STMO not liable for damages caused by denial or revocation of authorization.
Confidentiality
- Business proprietary information protected except for justice, law enforcement, national security, or with consent.
Unlawful Acts and Penalties
- Serious violations punishable by imprisonment (6 years 1 day to 12 years) and fines (P1,000,000 to P5,000,000).
- Includes unlicensed activities, false representations, conspiracy, forgery, obstruction.
- Lesser violations punishable by shorter imprisonment (6 months 1 day to 6 years) and smaller fines.
Attempt to Violate Act
- Penalized similarly to lesser violations.
Investigation
- STMO refers evidence of criminal violations to proper agencies: BOC, PNP, PCG, NBI.
- Cases forwarded to DOJ for preliminary investigation.
- Forfeiture proceedings for confiscated materials.
Administrative Penalties
- Limitations, revocation, fines up to P250,000 or twice the value of goods/services.
- Possible suspension or cancellation of business registration/license.
- Without prejudice to criminal charges.
Criminal Liability of Officers
- Officers who consent or tolerate violations held criminally liable as co-principals.
Administrative Liability of Government Officials
- Officials committing or facilitating violations liable under Civil Service rules and criminal liability.
- Conviction leads to dismissal.
Additional Penalty for Foreign Nationals
- Deportation after sentence served, permanent ban on entry.
Forfeiture
- Offending strategic goods and proceeds forfeited to government.
- Court authorized to order disposition by sale or other means.
- Offender barred from purchasing forfeited property.
- Proceeds paid to National Treasury.
- Expenses borne by General Appropriations Act.
- If goods outside Philippines, monetary payment may be ordered.
Protection of Officers
- No prosecution against NSC-STMCom, STMO or officers acting in good faith under the Act.
Jurisdiction
- Regional Trial Courts have jurisdiction over criminal cases and provisional remedies under the Act.
International Legal Cooperation
- DOJ responsible for requests and execution of mutual legal assistance.
- Assistance includes gathering evidence, service of process, searches, seizures, recovery of property, witness identification.
- Can refuse requests conflicting with Constitution or national interest.
- Requirements specified for mutual assistance requests.
- Documents authenticated and admissible as evidence.
- Offenses deemed extraditable.
Implementing Rules and Regulations (IRR)
- To be drafted and issued within six months.
- Drafting body composed of NSC-STMCom member agencies.
- Non-issuance does not delay the Act’s effect except suspension of administrative proceedings.
Appropriations
- Initial funding charged to current DTI budget.
- Subsequent funding included in General Appropriations Act.
Separability Clause
- Invalid provisions do not affect validity of rest of the Act.
Suppletory Application
- Revised Penal Code and applicable laws applied complementarily.
Repealing Clause
- Inconsistent laws, rules, and regulations modified or repealed accordingly.
Effectivity Clause
- Act takes effect 15 days after publication in Official Gazette or newspaper.