SINGAPORE TO EXPAND STRATEGIC GOODS CONTROL LIST

UNCLAS SINGAPORE 002854 SIPDIS SIPDIS E.O. 12958: N/A TAGS: ETTC MNUC PARM PGOV PHSA PREL KNNP KOMC EFIN SN SUBJECT: SINGAPORE TO EXPAND STRATEGIC GOODS CONTROL LIST ¶1. Singapore Customs and MFA announced plans September 7 to implement an expanded strategic goods control list in January 2008 that it says will include all items covered by the Australia Group, the Nuclear Suppliers Group, the Missile Technology Control Regime, and the Wassenaar Arrangement. In an invitation-only briefing, GOS officials emphasized the need to honor Singapore's commitment to its international obligations while not interfering with legitimate trade. ¶2. The GOS will engage in four months of "industry consultations" followed by a year-long industry outreach effort concluding in December 2007 to prepare for expansion of the list. The GOS hopes to minimize disruption for businesses by introducing a licensing regime broken down into three tiers -- individual, bulk, and general. General permits will be reserved for companies that regularly trade in controlled goods and that are judged to have "effective internal controls." Customs officials said they would encourage industry to self-regulate, but said they would also perform periodic audits. ¶3. On the issue on transshipment and transit cargo, officials stated that listed items remaining in Singapore's Free Trade Zones for either 21 days or less (air, land, or rail) or 45 days of less (sea) will not require permits. When asked, Customs representatives could not say what percentage of the transshipment and transit cargo would be exempted under this clause. (Note: Singapore is the world's busiest transshipment point. End note.) This exemption will not apply to certain items, such as munitions and WMD end-use materials. ¶4. Comment: Singapore's expansion of its strategic goods control list is a positive step, though important questions need to be answered before we will be able to assess its effectiveness. Among them are how closely will Singapore's list in fact reflect those of the four regimes, and what will be the practical impact with regard to transshipped cargo, given the apparent carveout for goods transshiped through Singapore's free trade zones with a rapid turnaround time. Post will follow up with GOS officials on these issues as the regime is implemented. HERBOLD