Export Controls for Dual-Use Items

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The Trade Control on Weapons of Mass Destruction Related Items Act, B.E. 2562, has been in effect since 1 January 2020, and mainly aims to regulate the export of dual-use items (DUIs). DUIs are goods, software and technologies that have a civil and/or potential military application. The Ministry of Commerce recently issued a notification implementing the Catch-all-Control (CAC) measures for DUIs. 
  
The CAC measures authorize the Department of Foreign Trade to inspect, investigate and suspend the export, re-export, transshipment and transit, if the exported product is classified as DUI. Currently there are two lists issued by the Ministry of Commerce prescribing DUIs.
  

Optional Internal Compliance Program

To avoid and mitigate complications for businesses involved with DUIs, the notification also includes an optional Internal Compliance Program (ICP). This ICP needs to be registered and certified with the Department of Foreign Trade. Then the business will be considered credible and privileged if being investigated. The ICP contains six elements, and depending on the number of elements the business complies with, it will receive a certificate as either good, very good or perfect. These six elements are:
  • Responsibility and resources for implementing ICP procedures
  • Screening processes
  • Training
  • Record keeping
  • Auditing
  • Reporting and corrective action
As mentioned above, the installment of the ICP is not mandatory, but highly recommended in case of trading dual use items. We note that under the regulations, Thai authorities have the right to stop exports (or similar) of dual use items; having a certified ICP would decrease the chance of being subject to government interjections. 

 From The Newsletter

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Martin Chrometzka

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