The Department of Trade and Industry (DTI) has issued a new memorandum circular strengthening regulatory oversight on the export, re-export, and reassignment of strategic goods, reinforcing the country’s compliance with international trade control standards.
Issued under DTI Memorandum Circular (MC) No. 25-20, which took effect on December 18, the new rules apply to all individuals and entities involved in the movement of strategic goods covered by the Philippine Strategic Trade Management Act (STMA).
Under the circular, exporters who have yet to secure authorization for covered strategic goods are required to apply for an export authorization from the Strategic Trade Management Office (STMO) of the DTI. Applications will follow the requirements and procedures outlined in DTI Memorandum Circular No. 25-17, including its subsequent amendments.
The STMO will now explicitly include provisions for re-export or reassignment as specific conditions in issued export authorizations. Exporters will not be required to obtain a separate authorization for re-export or reassignment, provided the activity involves the same item, end-use, end-user, destination country, consignee, and third parties covered by the original export license.
However, re-export, re-transfer, or reassignment may only proceed with prior written authorization from the export control authority of the importing country, the circular emphasized.
Under the guidelines, re-export refers to the shipment of strategic goods to another foreign country after they have been previously imported into or exported from the Philippines. Reassignment, meanwhile, involves the transfer of strategic goods within a single foreign country from one entity to another, including through electronic transmission of software or technology.
Pursuant to the STMA and its implementing rules and regulations (IRR), authorization holders are required to comply with recordkeeping, submission of related documents, and end-use control requirements—even for strategic goods not listed in the National Strategic Goods List.
Export authorizations remain valid for the period specified, unless suspended, revoked, or annulled by the STMO upon finding grounds provided under the STMA IRR. Strategic goods must be shipped only to approved destination countries and end-users and must be used solely for their declared purpose.
The circular reiterates that authorized goods must not be used in the development, production, handling, or proliferation of weapons of mass destruction or their delivery systems.
MC 25-20 further provides that authorization holders are subject to STMO compliance visits and are required to submit periodic usage reports through the DTI’s e-licensing system within prescribed deadlines or upon request.
Provisions on suspension, revocation, annulment, and modification of export authorizations are detailed under Sections 9, 11, 12, and 13 of the STMA IRR. Violations of the circular may result in administrative and/or criminal penalties under the STMA and other applicable laws.