Asia Pacific Trade & Commerce Client Conference 27 August 2015 Baker & McKenzie, Hutchison House, Hong Kong

Transcription

1 Asia Pacific Trade & Commerce Client Conference 27 August 2015 Baker & McKenzie, Hutchison House, Hong Kong Trade Singapore 1. Customs Additional Requirement on Image System Under section 90 of the Customs Act, all importers, exporters or their agents ( Traders ) are required to keep documents and records relating to the purchase, importation, sale or exportation of their goods for not less than 5 years. With effect from 1st January 2012, Traders may use an image system to store images ( Image System ) without retaining the physical paper document provided they can comply with the requirements in the Guide on Keeping and Maintaining Records in Image System (the Guide ). On 8 May 2015, Singapore Customs ( Customs ) revised the Guide to include a new requirement for all Traders who wish to keep and maintain records in Image Systems. The additional requirement provides that the Image System used must include proven hardware and software components reputable for security, quality and performance. For further information please contact Eugene Lim Tel: eugene.lim@bakermckenzie.com Ke Zhixiang Tel: zhixiang.ke@bakermckenzie.com The new requirement was included in light of the Evidence Act providing that stability and reliability of the Image System will be a relevant factor of consideration for the Courts in the event that the Image System is relied upon for the admission of evidence. It is the Traders responsibility to ensure compliance with the Guide even if they outsource the imaging, storage and maintenance of their trade documents and records to third-party service bureaus. As the Guide does not define what will constitute proven hardware and software components, Traders should remain cognizant of storage products offered by market leaders in the storage system, software and services industry and ensure that such products used are at all times stable and reliable. The failure to keep documents and records in a proper manner constitutes an offence under Singapore law. Recent Mutual Recognition Arrangements Singapore Customs signed a Mutual Recognition Arrangement ( MRA ) on 1 December 2014 with the United States Customs

2 and Border Protection ( US CBP ). The MRA has been operational with effect from 1 February Singapore Customs also signed an MRA on 27 June 2014 with the Customs and Excise Department of the Hong Kong Special Administrative Region of the People's Republic of China ("HK C&ED"). The MRA has been operational with effect from 9 Mar Under the MRAs, Singapore companies that have been certified by Singapore Customs enjoy faster customs clearances for the goods they export to the US (or Hong Kong as the case may be) and vice versa. 2. Export Control Strategic Goods Control List updates Singapore s strategic goods control list is currently prescribed in the Schedule to the Strategic Goods (Control) Order ( SGCO ) A new SGCO 2015 will be introduced in the fourth quarter of 2015 to replace the current SGCO The SGCO 2015 brings Singapore s strategic goods control list up to date with the 2014 Wassenaar Arrangement Munitions List, and the 2014 European Union s List of Dual-Use Items ( EUDL ), which is an amalgamated list of dual-use items controlled by the four multilateral export control regimes, i.e. the Wassenaar Arrangement, the Missile Control Technology Regime, the Australia Group and the Nuclear Suppliers Group. Further details on the SGCO 2015 will be announced in the coming weeks. Singapore Customs is going to organize four awareness briefings on 14, 16, 18, and 21 September 2015 regarding amendments to the strategic goods control list. The first three briefings will be industry specific: (i) aerospace, marine and oil & gas, and materials & equipment industry; (ii) semiconductor, electronics, telecom and information security; and (iii) freight forwarders/declaring agents. The last briefing on 21 September will be for general audience. Singapore Customs has limited attendance to two representatives per company for each of the awareness briefings. 3. Sanctions JCPOA Endorsed by UNSC On 14 July 2015, Iran and the EU/E3+3 (China, France, Germany, the Russian Federation, the United Kingdom, the United States, and the European Union) announced that they had agreed on a Joint Comprehensive Plan of Action ( JCPOA or Agreement ) regarding the lifting of sanctions currently 2 Baker & McKenzie Asia Pacific Trade & Commerce Client Conference 27 August 2015

3 imposed against Iran. If fully implemented, the JCPOA will ultimately see the comprehensive lifting of all UN Security Council ( UNSC ) sanctions targeting Iran, as well as multilateral and national sanctions related to Iran s nuclear programme, including increasing access in areas of trade, technology, finance, and energy. In return, Iran will curb its nuclear programme and provide access to the International Atomic Energy Agency ( IAEA ) for verification purposes. There will also be a 65-day snapback mechanism by which sanctions can be reinstated for non-compliance, subject to a dispute resolution process. The UNSC adopted Resolution 2231 (2015), endorsing the JCPOA on 20 July This Resolution sets out a rigorous monitoring mechanism and timetable for the implementation of the JCPOA and paves the way for the lifting of UNSC sanctions against Iran. Briefly, 90 days after the adoption of Resolution 2231, (i.e., on 18 October 2015), unless all parties agree on an earlier date ("Adoption Day"), all parties commitments under the JCPOA will come into effect. However, UN, sanctions will only begin to be relaxed once the IAEA has verified that Iran has implemented its nuclear-related commitments under the JCPOA ( Implementation Day ). There is no hard date for when Implementation Day will occur. The U.S. State Department advised that their best estimate is 6 to 9 months from Adoption Day. 4. FTAs/WTO EU Singapore and the European Union ( EU ) concluded negotiations for a free trade agreement (the EUSFTA ) on 17 October The EUSFTA will be the first deal between the EU and a Southeast Asian economy, and will be highly beneficial to the 10,000 European companies in Singapore. It will also provide an avenue for Europe to access the 600 million consumers in the ASEAN market. GCC Singapore and the Gulf Corporation Council ( GCC ) signed a free trade agreement on 15 December 2008 ( GSFTA ). The GSFTA entered into force in Singapore on 1 September The GSFTA will benefit not only Singapore citizens, permanent residents, local companies, but also multinational corporations constituted under the law of Singapore and have substantive business operation in Singapore. The GSFTA covers trade in goods, services, investment, rules of origin, customs procedures, government procurement, e-commerce and economic cooperation. According to the customs duties elimination 3 Baker & McKenzie Asia Pacific Trade & Commerce Client Conference 27 August 2015

4 schedule of the GCC States, approximately 93.3% of all Singaporean goods exported to the GCC qualify for tariff-free concessions, while an additional 2.7% tariff lines will qualify in ITA On 24 July 2015, 54 members of the World Trade Organisation ( WTO ) ( Participants ) finalised negotiations to expand the products covered by the 1996 Information Technology Agreement ( ITA 1996 ). These negotiations resutled in the Declaration on the Expansion of Trade in Information Technology Products ( ITA Expansion Declaration ). Key features of the ITA Expansion Declaration include: 201 new IT products ("Covered Products") are eligible for tariff elimination regardless of origin; Participants are to submit their draft schedules to modify their existing tariff schedules ("Draft Schedules") by 30 October 2015, for review and approval by 4 December 2015; Customs duties are to be eliminated in four equal phases by 1 July 2016, 1 July 2017, 1 July 2018, and 1 July 2019; Other duties and charges of any kind imposed on or in connection with the importation of the Covered Products are to be eliminated by 1 July 2016; and The implementation of the tariff eliminations and reductions for the Covered Products under the ITA Expansion Declaration is to start when the approved Draft Schedules represent 90% of world trade in the Covered Products. Commerce 5. Personal Data Protection Act The Personal Data Protection Act, 2012 ("PDPA") provides a baseline data protection law in Singapore which regulates the collection, use, disclosure and transfer of individuals personal data by organisations. The PDPA contains two sets of provisions: (A) Data protection and (B) Do Not Call ("DNC") Registry. Notably, the DNC provisions set out the obligations of organisations prior to sending of certain marketing messages to Singapore telephone numbers. The DNC Registry consists of three separate registers kept and maintained by the Personal Data Protection Commission ("PDPC") covering telephone calls, SMS and faxes. Users and subscribers of Singapore telephone 4 Baker & McKenzie Asia Pacific Trade & Commerce Client Conference 27 August 2015

5 numbers are able to register their numbers on one or more registers depending on their preference. Prior to sending certain marketing messages to Singapore telephone numbers, organisations are required to: 1. Check the relevant register to confirm if the number is listed there; 2. Provide information on the individual or organisation who sent or authorised the sending of the marketing message; and 3. Not conceal or withhold the calling line identity of the sender of the marketing message. Organisations may not need to check the registers when the user or subscriber of a Singapore telephone number has given clear and unambiguous consent in written or other accessible form to the sending of the marketing message to that number. Failure to comply with the PDPA can result in complaints and investigations / audits by the PDPC. The PDPC has broad powers to give directions to the infringing organization, including to order the payment of a financial penalty of up to S$1 million. Individuals who suffer loss or damage as a result of contravention of the data protection obligations in the PDPA have private rights of action and can commence civil proceedings against the organization. A contravention of the DNC provision in the PDPA is criminal in nature and may lead to the imposition of fines up to S$10,000 per offence. The PDPA was enforced in phases. The provisions relating to the DNC Registry came into effect on 2 January 2014 and the provisions relating to the main data protection on 2 July After the transition period, the PDPC may conduct investigations upon complaint or on its own accord to determine whether an organisation is complying with the Act. Companies are welladvised to take heed of the investigative powers of the PDPC. 5 Baker & McKenzie Asia Pacific Trade & Commerce Client Conference 27 August 2015