1.

An Overview of the Strategic Trade Management Act

1.1 Proliferation Threat

1.1.1 Among the most important security challenges countries face today are
preventing the proliferation of weapons of mass destruction (WMD),
controlling the spread of conventional arms, and regulating transfers of goods,
software, and technologies that can be used for WMD or military purposes.

1.1.2 Confronting these challenges effectively is critical to protecting a country’s

national security, foreign policy, international commitments, population,
environment, allies, and friendly states.

1.1.3 WMD are weapons that can cause widespread damage to human and animal
life, infrastructure, environment, and evoke terror in a population. The main
types of WMD are nuclear and radiological weapons, biological weapons, and
chemical weapons.

1.1.4 Many items that can be used in developing WMD and conventional arms and
enhancing military programs have peaceful applications. These are “dual-use
items” – goods, software, and technologies that are normally used for
commercial purposes but can also be used for a WMD or military purpose.

1.1.5 The international community has responded to WMD and arms proliferation
challenges by calling upon countries to manage and control trade in military
and dual-use items, which are called “strategic goods.”

1.2 Strategic Trade Management in the Philippines

1.2.1 In response to proliferation threats, the Philippines enacted Republic Act No.
10697, otherwise known as the Strategic Trade Management Act (STMA).

1.2.2 The STMA is an “An Act Preventing the Proliferation of Weapons of Mass
Destruction by Managing the Trade in Strategic Goods, the Provision of
Related Services, and for Other Purposes.”

1.2.3 The STMA was enacted consistent with the Philippines’ national interest and
to fulfill its international commitments and obligations, including United
Nations Security Council Resolution (UNSCR) 1540.

1.2.4 The STMA enforces measures to establish domestic controls to prevent the
proliferation of weapons of mass destruction (WMD) and their means of
delivery from or within the Philippines.

1.2.5 The STMA’s main objective is to maintain international peace and security,
and promote economic growth by facilitating trade and investment through the
responsible management of strategic goods and the provision of related
services.
1.2.6 The National Security Council – Strategic Trade Management Committee
(NSC-STMCom) is the central authority on any and all matters relating to
strategic trade management with the following composition:

1.2.7 The Strategic Trade Management Office (STMO), a bureau created under the
administrative supervision of the Department of Trade and Industry, serves as
the executive and technical agency for the establishment of management
systems for the trade in strategic goods. It supervises the implementation of
the licensing system, verifies compliance with the law, and provides
information to industry, among others. Below is the composition of the STMO:

1.2.8 The STMA establishes a strategic trade management system in the

Philippines. It is based on international standards and best practices and is
consistent with UN Security Council Resolutions, international treaties, and
legal principles.

1.2.9 The STMA aims to regulate the export, import, transit and transshipment, re-
export and reassignment of strategic goods, software and technology and the
provision of related services to prevent the proliferation of weapons of mass
destruction.
1.2.10 There are three important things to remember regarding the STMA:

1.2.10.a Which items are covered under the STMA?

1.2.10.b Who are the persons covered by the STMA?

1.2.10.c What activities are covered under the STMA?

1.3 Items covered by the STMA

1.3.1 The STMA covers items, software, and technology which are referred to as
strategic goods.

1.3.2 “Strategic goods” are products that for security reasons or due to international
agreements are considered to be of such military importance that their export
is either prohibited altogether or subject to specific conditions. Simply put,
strategic goods are items listed in the National Strategic Goods List (NSGL).

1.3.3 The NSGL list down the strategic goods subject to authorization1 from the
Strategic Trade Management Office (STMO).

1.3.4 The NSGL has three annexes: Military Goods (Annex 1), Dual-Use Goods
(Annex II), and Nationally Controlled Goods (Annex III).

1.3.5 Military Goods (Annex I) refer to goods, software, and technology that are
specifically designed, developed, configured, adapted, or modified for military
end-use.

1.3.6 Dual-Use Goods (Annex II) refer to items, software, and technology which can
be used for both civil and military end-use or in connection with the
development, production, handling, operation, maintenance, storage,
detection, identification, or dissemination of WMD or their means of delivery.
An example of a dual-use good is illustrated below:

1
“Authorization” refers to an individual, global, or general license issued by the STMO for the
export, import, re-export, reassignment, transit, transhipment of strategic goods and provision of
related services.
1.3.7 Nationally Controlled Goods (Annex III) refer to strategic goods placed under
unilateral controls for reasons of national security, foreign policy, anti-
terrorism, crime control, and public safety.

1.3.8 However, it is important note that there are items not listed in the NSGL but
are subject to authorization by the STMO. These items are covered in the
“catch-all provision” under Section 11 of the STMA.

1.3.9 An authorization for unlisted items under the “catch-all provision” is required in
the following instances:

1.3.9.a If the exporter/ principal party has been informed by the STMO
that the goods or services are or may be used, partly or entirely, in
connection with the acquisition, development, production,
handling, operation, maintenance, storage, detection, identification
or dissemination of WMDs or their means of delivery.

1.3.9.b If the purchasing country/ country of destination or juridical/ natural

person receiving the goods is subject to an international sanction
or an arms embargo imposed by a binding resolution of the UN
Security Council, and if the exporter or principal party has been
informed by the STMO, in close consultation with the NSC-
STMCom, that the goods in question are or may be used, partly or
entirely, for a military end-use.

1.3.9.c If the exporter has been informed by the STMO that the goods in
question are or may be used, partly or entirely, as parts or
components of military items listed in the NSGL, that have been
exported from the territory of the Philippines without authorization
or in violation of an authorization.

1.3.9.d If an exporter/ principal party knows or suspects that unlisted

goods proposed for export are or may be used, partly or entirely,
for any of the uses referred to in 1.3.9.a and 1.3.9.b, or suspects
that the provision of related services will facilitate that use.

1.4 Persons covered by the STMA

1.4.1 The STMA has both territorial jurisdiction (legal ability of a State to exercise its
authority within the boundaries of its territory) and extraterritorial jurisdiction
(legal ability of a State to exercise its authority beyond its territorial limits).

1.4.2 The STMA has territorial jurisdiction over natural and juridical persons that
engages or intends to engage in the trade of strategic goods or provision of
related services. Juridical person may refer to partnership, cooperative,
corporation, government-owned and controlled corporation that engages or
intends to engage in strategic trade.

1.4.3 The STMA has extraterritorial jurisdiction over all Filipino persons, wherever
located.
1.5 Activities covered under the STMA

1.5.1 The following are the activities covered under the STMA: registration, export,
import, transit, transshipment, re-export, reassignment, and provision of
related services. Related services cover brokering, financing, transporting and
provision of technical assistance.

1.5.2 Under the STMA, registration with the STMO is the first mandatory step for
any person who engages or intends to engage in the export, import, and re-
export of strategic goods or provide related services. Only after a person is
registered with the STMO can it apply for an authorization with the STMO.

1.5.3 Further, an application for authorization shall be filed prior to engaging in the
activities covered under the STMA.

1.5.4 “Export” refers to an actual shipment of strategic goods out of the Philippines,
or to a transimission of software and technology either by electronic media or
non-electronic means.

1.4.2.a Transmission of software and technology can be done either in

electronic or non-electronic form.

1.4.2.b Electronic transmission can be done through fax, telephone,

electronic mail, or any other electronic means to an ultimate
destination outside the Philippines.

1.4.2.c Non-electronic transmission covers face-to-face communication,

personal demonstration, or handing over material information to a
foreign person wherever located.

1.5.5 “Import” refers to the shipment of goods or transmission of software and

technology by any means from a foreign country into the Philippines.

1.5.6 “Transit” refers to the shipment of strategic goods within the Philippines and
those entering and passing through the territory of the Philippines with an
ultimate destination outside of the Philippines in such a manner that the
strategic goods remain at all times in or on the same carrier.

Philippine
Waters
1.5.7 “Transshipment” refers to a mode of shipping a good on a carrier which enters
the territory of the Philippines, wherein the good is unloaded from the carrier
and reloaded in the same or on another carrier that is bound for an ultimate
destination outside the Philippines.

Philippine
Waters

1.5.8 “Re-export” refers to the export to a foreign country of strategic goods either
previously imported to or exported from the Philippines. As an illustration, a
strategic good is being exported from the Philippines to country X, then from
country X, the strategic good will again be exported to country Y. This
transaction is called re-export which requires an authorization from the STMO.

Country X Country Y

1.5.9 “Reassignment” refers to the reallocation of strategic goods previously

exported from the Philippines from one person to another within a single
foreign country by any means, including the electronic transmission of
software and technology. For instance, a strategic good is being exported
from the Philippines to Company A in country Y. Subsequently, Company A
wants to transfer the strategic good to Company B in the same country Y.
This transaction is called reassignment and would require an authorization
from the STMO.

Co. A Co. B

Country Y
1.5.10 “Related services” refer to brokering, financing, transporting in relation to the
movement of strategic goods between two foreign countries and providing
technical assistance.

1.5.8.a “Brokering” refers to activities such as: (a) negotiating or arranging

transactions that involve the shipment of strategic goods from a
foreign country to any other foreign country, or (b) selling or
buying with the intent to move strategic goods that are in a
broker’s possession or control from a foreign country to any other
foreign country. The definition of brokering under the STMA differs
from the definition of brokers under the Customs Modernization
and Tariff Act and Comprehensive Firearms and Ammunition
Regulation Act.

1.5.8.b “Financing” refers to making available or providing funds to

facilitate the movement/ flow of: (a) strategic goods and/or related
service if this contributes to WMD or their means of delivery, or (b)
military goods for a destination subject to a UN Security Council
embargo or to prohibited/restricted end-users.

1.5.8.c “Transporting” refers to the act of moving the strategic goods,

agreeing to move them, any supporting services being provided to
the transport provider, and any act calculated to promote their
supply or delivery if this contributes to WMD, or means of their
delivery, or military goods if destined to an embargoed destination
subject to a UN Security Council embargo, or to prohibited/
restricted end-users.

1.5.8.d “Technical assistance” refers to any support provided in relation to

strategic goods such as repair, development, manufacture,
assembly, testing, maintenance, or any other technical service,
and may take such forms as instruction, training, transmission of
working knowledge or skills, or consulting services. This can be
provided through verbal, written, or electronic means.
2. Overview of STMO’s Application Procedure

2.1 Overview of Application Procedure

2.1.1 There are two (2) main steps in order to secure an authorization from the
STMO: (a) application for entry into the register, and (b) application for authorization.
3. Registration

3.1 Registration under the STMA

3.1.1 Registration is the act of entering into the STMO register persons who
engages or intends to engage in the export, import, and re-export of strategic
goods or provide related services.

3.1.2 Registration is a mandatory requirement prior to applying for an authorization

for export, import, re-export, and provision of related services.

3.1.3 The purpose of registration is:

3.1.3.a To identify all persons in the Philippines engaged in strategic trade.

3.1.3.b To ensure that traders are familiar with their obligations and the
requirements under the STMA.

3.1.3.c To enable the STMO to verify the bona fide nature of traders.

3.2 Who Needs to Register

3.2.1 Any person who engages or intends to engage in the export, import, and re-
export of strategic goods, or provides related services such as brokering,
financing, transporting, or technical assistance must register directly with the
STMO prior to applying for an authorization or a governmental end-use
assurance.

3.3 How to Register

3.3.1 Any natural or juridical person that needs to register must submit a standard-
format application together with related documents to the STMO. The
application must be signed by the applicant or an authorized representative.

3.3.2 Applications and any materials attached to the application must be submitted
in English.

3.3.3 The application form for registration shall be in the manner and form as
prescribed by the STMO (please see 3.9.1).

3.3.4 The following documents should be appended in the application:

3.3.5.a Relevant license/s or business permits.

3.3.5.b Copy of document nominating a senior manager as a responsible

person for STMA Compliance.

3.3.5.c Description of strategic trade relevant activity or reason for

 registration, if no website available.

3.3.5.d Description of Internal Compliance Program (ICP), if applicable.

3.3.5.f Organizational chart showing the relationship among the

company's parent, subsidiaries, affiliates, or multiple divisions or
facilities, if applicable.

3.3.5.g An internal organizational chart (i.e., showing responsibilities or

reporting relationships of individuals or offices within the
company), if applicable.

3.4 Timeline for Review of Applications

3.4.1 The STMO shall review an application within 30 calendar days from the date
the application was accepted for processing.

3.4.2 If the STMO requires additional information or if the information submitted

required additional verification, the STMO may extend the period for an
additional 30 calendar days. The applicant will be notified within 2 calendar
days of said extension.

3.4.3 If the applicant fails to complete the requested information or requirements,

the STMO will send a follow-up letter to the applicant. If the applicant does not
submit the required information or document within the given deadline, the
STMO will close down the application for registration.

3.5 Review of Applications for Registration

3.5.1 Below is the STMO workflow chart for reviewing applications for registration:

3.5.2 The STMO makes a decision after careful consideration of all available
information. It may refer the application for an advisory opinion to other
government agencies, if needed.
3.5.3 The STMO may refuse to enter a person into the Register based on the
following reasons:

3.5.3.a If the applicant falsely represents or conceals any material fact or

submits misleading information, including the submission of forged
documents.

3.5.3.b In the past five years, the applicant had been held responsible for
violating an international embargo or sanction binding on the
Philippines.

3.5.3.c National security related civil or criminal proceedings have

commenced against the applicant.

3.5.3.d Any other national security concerns that may exist.

3.6 Entry into the Register

3.6.1 If the STMO approves the application, the natural or juridical person is
entered into the Register. The registration certificate bearing the registration
number, date of registration, and other relevant information shall be issued on
paper or electronically.

3.6.2 Any registered person shall provide the registration number when preparing
and submitting a license application or in any other communication with the
STMO.

3.7 Amendment of Register Entry

3.7.1 If any change occurs in the information submitted to the STMO during
registration, the registered person shall file a written application for
amendment of register entry.

3.7.2 The STMO may refuse to amend a register entry if in the past five years, the
applicant had been held responsible for violating an international embargo or
sanction binding on the Philippines.

3.8 Deletion from the Register

3.8.1 Registration may be revoked on the following grounds:

a. At the request of the person entered into the Register.

b. If the person entered in the register has not applied for any
authorization from STMO within two (2) years from its issuance.

c. If new facts emerge which would have resulted in a denial to enter the
person onto the Register at the time of application.
 d. If the person entered into the Register is held responsible for violating
any legal provisions related to national security

e. If the person entered into the Register is held responsible for violating
an international sanction or embargo binding on the Philippines.

f. The natural person who is entered into the Register dies.

g. The juridical person who is entered into the Register is dissolved.

h. By order of a competent court.

i. Any other national security, foreign policy, counter-terrorism, crime

control, or public safety related concerns.

3.9 Documents Pertinent to Registration

3.9.1 Guidance on how to fill-up the registration form

3.9.2 Sample Registration Form

3.9.3 Sample Registration Certificate

 Guide to Filling-up the Registration Form

ENTRY DESCRIPTION EXAMPLE

01 Person to be State the applicant’s complete ABC Inc.
Registered name/ business name.
02 Organizational Type Select as appropriate. Corporation
03 SEC/ DTI Registration For sole proprietorship, indicate CN2xxxxxxx
No./ Passport No. the Certificate Number from the
Business Name Registration
Certificate issued by the
Department of Trade and
Industry.

For corporation, indicate

Company Registration Number
from the Certificate of
Incorporation issued by the
Securities and Exchange
Commission.

For individual person, provide

the valid passport number.
04 Date of Incorporation/ Indicate the date of issuance of 01/01/2008
Registration the Certificate of Business
Name Registration by DTI or
the Certificate of Incorporation
by SEC.
05 Address State the complete address of Ayala Avenue, Makati
applicant’s principal place of City
business where the records will
be kept and which can be
produced or made readily
available upon request of the
STMO or the NSC-STMCom.
06 Telephone No./ E-mail For sole proprietorship/ Contact No.:
to address/ Fax No./ individual person, provide the +632xxxxxxx
09 Website Address contact number, fax number,
and e-mail address of the Fax No.:
owner of the business. +632xxxxxxx

For corporation, provide the E-mail address:

contact number, fax number opinc@abcinc.com
and e-mail address of the
company. Website must be Website Address
provided if available. www.abcinc.com
10 Business Activities Provide the principal business
activities of the corporation or
company. Select as
appropriate.
11 Contact Person State the name and Name: Juan Dela Cruz
designation, home address,
telephone/ mobile number, fax Designation/
number, e-mail home address, Department: Logistics
and valid government ID Officer/ Global
 number of the contact person Compliance
who will be designated and will
serve as the focal person to Address: Block X, Lot
any STMA related concerns Y, Ylang-ylang Street,
and with whom STMO can Makati City
immediately coordinate with for
any issues and queries Tel/ Mobile No.:
regarding the transaction. +63917xxxxxxx
Please do not list an individual
who is not familiar with the Fax No.:
transaction. +63917xxxxxxx

E-mail:
JDCruz@abcinc.com

Government ID
Number: C11xxxxxxxx
12 Person responsible State the name and Name and Designation:
person for STMA designation, address, Pedro Dela Cruz
Compliance telephone/ mobile number, fax
number, e-mail home address, Designation/
and valid government ID Department: Chief
number of the person Executive Officer
nominated, i.e. via Board
Resolution, as the responsible Address: Block AB,
person for STMA compliance to Lot Z, Sampaguita
ensure that the company’s Street, Makati City
operation comply with STMA
provisions. Must be a senior Tel/ Mobile No.:
officer, owner, partner or +63917xxxxxxx
equivalent.
Fax No.:
 +63917xxxxxxx

E-mail:
 PDCruz@abcinc.com

Government ID
Number: C11xxxxxxxx
13 Description of Provide description of the Integrated Circuits
commodities and/ or commodities or services
services rendered.
14 NSGL Code Refer to the codes in the NSGL 3A001
as provided in the three
Annexes. The NSGL Code of
the commodities must meet the
description and specification
under the NSGL.
15 Countries of Provide the countries where the USA, Japan, Korea
destination item/s will be exported or where
the services will be provided.
16 Estimated number of Provide the estimated number 2 contracts/ annum
contracts per annum of strategic trade-related
contracts in a year for the
 commodity and in the country
of destination.
17 Estimated number of Provide the estimated number 50 shipments/ annum
shipments per annum of shipments in a year for the
commodity and in the country
of destination.
18 Conforme Signature of the senior officer/ Pedro dela Cruz
person responsible for STMA
compliance (see entry 12).

Note: Before submitting the application form for registration, please make sure that
all the information provided are correct. The processing timeline will commence only
after submission of all necessary documents and information.
 Strategic Trade Management Office
3F Tara Bldg., 389 Sen. Gil J. Puyat Avenue, 1200 Makati City, Philippines
Telephone: (+632) 403.1419
Fax: (+632) 896.4431

APPLICATION FOR ENTRY INTO REGISTER

STMO Registration No.: Application Date: Type of Application:

(For official use only) (dd/mm/yyyy) New Amendment
PERSON TO BE REGISTERED
01 Name/ Business Name:
02 Organizational Type:
Individual Corporation Partnership Others _________________
03 SEC/ DTI Registration No./ Passport No.: 04 Date of Incorporation/ Registration:
(dd/mm/yyyy)

05 Address:

06 Telephone No.: 08 Fax No.:

07 E-mail address: 09 Website Address (if available):

10 Business Activities: (Check more than one classification, if necessary)

Manufacturer Exporter Importer Others ____________
11 CONTACT PERSON
Name: Designation/ Department:

Address: Government ID Number:

Telephone/ Mobile/ Fax No.: E-mail address:

12 PERSON RESPONSIBLE FOR STMA COMPLIANCE

Name: Designation/ Department:

Address: Government ID Number:

Telephone/ Mobile/ Fax No.: E-mail address:

13 Description of 16 Estimated number 17 Estimated number

15 Countries of
commodities and/ or 14 NSGL Code of export contracts of export shipments
destination
services per annum per annum

Additional Supporting Documentation (Check applicable block/s to indicate the document you are attaching)
1. Relevant license/s or business permits.
2. Copy of document appointing a Senior Manager as the responsible person for STMA Compliance.
3. Description of strategic trade relevant activity/ reason for registration, if no website available.
4. Description of Internal Compliance Program (ICP), if applicable.
5. Organizational chart showing the relationship among the company’s parent, subsidiaries, affiliates, or multiple division
or facilities, if applicable.
6. Internal organizational chart (i.e., showing responsibilities or reporting relationships of individuals or offices within the
company), if applicable.
The applicant hereby certifies that:
1. He/ she is authorized to sign the application.
2. He/ she agrees and consents that the Strategic Trade and Management Office (STMO) may collect, use, disclose,
and process the personal information set out in this document pursuant to Republic Act No. 10173.
3. He/ she authorizes the representatives of the STMO and the Philippine law enforcement authorities to verify/validate
the contents stated herein and access documentations and premises, when necessary.
4. He/ she agrees that any information in this document that are marked confidential business information shall not be
disclosed to any other party except in the furtherance of justice and law enforcement, national security, or foreign
policy interest.
5. He/ she has read and understood his/ her obligations under the Strategic Trade Management Act (STMA) and its
Implementing Rules and Regulations (IRR).
6. He/she shall notify the STMO in writing within 5 working days if the circumstances or information to the current
application are subject to change.
7. He/ she warrants that the foregoing document has been accomplished by him/ her, and is a true and correct and
complete statement pursuant to pertinent laws, rules and regulations of the Republic of the Philippines.
8. By signing below, he/ she warrants that he/ she have read, understood and agreed to the above provisions.
18 Conforme:
Name: Stamp (if applicable):

Title:

Signature: Date:
 This certifies that

ABC Inc.
Ayala Avenue,
Makati City, Metro Manila, Philippines

is registered with the STRATEGIC TRADE MANAGEMENT OFFICE pursuant to the

provisions of Republic Act No. 10697 and its Implementing Rules and Regulations.

The Strategic Trade Management Office hereby issues this

Certificate of Registration
on February 24, 2019 , in MAKATI CITY, Philippines.

Registration No. 000001

This certificate is not a license to engage in the trade of strategic goods and related services.