We would like to inform you that the Thai TCWMD Act (Trade Controls on Weapons of Mass Destruction related Items) has received Royal assent and will be effective on 1st January 2020. What to know? The TCWMD Act was published in the Royal Gazette on 30th April 2019.
The general provisions of the Act (i.e. the definitions, Committee under the act) entered into force immediately, however, the main enforcement provisions on exporters/business operators (i.e. requirement to obtain the licenses/self-certification) will come into force on 1st January 2020. The details of the controlled goods lists have not yet been announced since the supporting regulations are still under consideration. Exporters may consult the government website to test how the license/self-certification process would function, but should be aware that the process is still subject to changes. Additionally, there are some indicative lists published by the Thai Department of Foreign Trade that can be used as a guideline until the definitive lists are announced. Apart from the certification/licenses required before exportation, the TCWMD Act also contains a catch-all provision which allows Customs to block exports of any suspect shipments. The Act will be enforced by means of civil, criminal and administrative penalties, against exporters who fail to comply with its provisions.
What to do?
It is crucial for Thai exporters to start preparing now for export controls under the TCWMD Act to avoid disruptions to their supply chains after 1 January 2020. Companies must determine whether they are dealing with potential in-scope goods or not, start screening business partners and train employees on implementing control processes. Also, they need to review whether their companies are suited/eligible for annual/bulk licensing to help facilitate the export process.
Deloitte can help your business prepare accordingly where needed. We provide hands-on, practical on-site trainings on export controls for logistics, commercial and other personnel at competitive prices. We can perform export control risk assessments and sanctioned party screening to identify compliance risks and we can support with the setup of Internal Compliance Program so the company can apply for annual export license.
Finally, there will be further regulations relevant to TCWMD Act announced soon. Exporters/business operators should ensure that they keep up to date on the developments in this area.
Julia leads Deloitte’s Global Export Controls & Sanctions team in London. She has led compliance-enhancing projects for a number of years in a variety of industries, including financial services, consumer products, oil and gas, aerospace & defence, manufacturing and the technology, media and telecommunications industries. She is a specialist in US, EU, UK, French, German and other EU Member State military, dual-use and sanctions regulations. Julia has a thorough understanding of the export control challenges faced by companies involved in international trade activities. More broadly, Julia supports her clients in developing integrated compliance programmes to manage their regulatory compliance requirements (including export controls, ABAC and data privacy), with a focus on lean business requirements to manage regulatory obligations. Julia has also been involved in the development of a number of different technology solutions to manage export compliance requirements, and has supported clients to develop and implement their digital strategies for effective compliance management.