Cablegate: Singapore to Expand Strategic Goods Control List

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DE RUEHGP #2854 2510947
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P 080947Z SEP 06
FM AMEMBASSY SINGAPORE
TO RUEHC/SECSTATE WASHDC PRIORITY 1141
INFO RUEKJCS/SECDEF WASHINGTON DC PRIORITY
RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY
RUEAHLC/DEPT OF HOMELAND SECURITY CENTER WASHINGTON DC PRIORITY

UNCLAS SINGAPORE 002854

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E.O. 12958: N/A
TAGS: ETTC MNUC PARM PGOV PHSA PREL KNNP KOMC EFIN
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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

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