Section 5Sec./Art. 5

Definition of Terms. As used in this Act:

a. Authorization refers to an individual, global or general license issued by the Strategic Trade Management Office (STMO) for the export, import, re-export, reassignment, transit, transshipment of strategic goods and provision of related services;

b. Carrier refers to any vessel, train, vehicle, aircraft or other modes of transportation;

c. Document refers to any record on paper, in electronic form, kept on any magnetic, optical, chemical or other medium; photograph map, plan, graph, picture or drawing or device;

d. Dual-use goods refer to items, software, and technology which can be used for both civil and military end-use or in connection with development, production, handling, operation, maintenance, storage, detection, identification, or dissemination of WMD or their means of delivery. These goods are listed in Annex 2 of the NSGL;

e. End-use controls refer to a specific procedure authorizing the establishment of controls over any item, software, and technology not listed in the NSGL (unlisted goods) based on concerns related to WMD, their means of delivery, or military end-use in destinations subject to embargoes decided by the United Nation (UN) Security Council, or to prohibited/restricted end-users;

f. End-user refers to a person who is outside or inside the Philippines and is the recipient and ultimate user of the strategic goods and related services that are exported from or imported to the Philippines;

g. End-user certificate refers to a document which contains confirmation of the following: (a) that the end-user has undertaken to import the goods with specific value and amount; (b) the purpose of the use of the goods; and (c) that the end-user shall not re-export or re-assign the goods without prior written authorization. The certificate likewise refers to a document that verifies the end-use and end-user of military and dual-use items as defined by this Act;

h. Export refers to an actual shipment of strategic goods out of the Philippines, or to a transmission of software and technology by electronic media, including by fax, telephone, electronic mail or any other electronic means to an ultimate destination outside the Philippines. The term includes making available in electronic form such software and technology to persons outside the Philippines. It also applies to non-electronic reassignments of software or technology through face-to-face communication, personal demonstration, or handing over material or information to a foreign person wherever located;

i. 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 if destined for a destination subject to a UN Security Council embargo or to prohibited/restricted end- users;

j. Import refers to the shipment of strategic goods or transmission of software or technology by any means from a foreign country into the Philippines;

k. Juridical person refers to either: (a) a partnership, a cooperative, and a private corporation, to which the law grants a juridical personality, separate and distinct from that of each shareholder, partner, or member, or (b) a government-owned and -controlled corporation created by law that engages or intends to engage in the trade of strategic goods or provision of related services;

l. Knowledge refers to awareness or cognizance that a circumstance exists or is substantially certain to occur. It is also an awareness or cognizance of facts and circumstances that would lead a reasonable person to believe its existence or factual occurrence. It also refers to the willful disregard of facts known to a person or willful avoidance of facts;

m. Military goods refer to items, software, and technology that are specifically designed, developed, configured, adapted, or modified for military end-use. These goods are fisted at Annex 1 of the NSGL;

n. Military end-use refers to: (a) incorporation into military goods listed in the NSGL; (b) use of production, test or analytical equipment and its components for the development, production or maintenance of military goods listed in the NSGL; and (c) use of any unfinished products in a plant for the production of military goods listed in the NSGL;

o. Nationally controlled goods refer to strategic goods placed under unilateral controls for reasons of national security, foreign policy, anti-terrorism, crime control, and public safety;

p. Premises refer to any land, place or building, whether open or enclosed, and whether built on or not, including any free trade zones within the territory of the Philippines;

q. 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;

r. Re-export refers to the export to a foreign country of strategic goods either previously imported to or exported from the Philippines;

s. Registration refers to the act of entering the exporters, importers and brokers of strategic goods and providers of services into the registry established by the STMO;

t. Related services refer to brokering, financing, and transporting in relation to the movement of strategic goods between two (2) foreign countries and providing technical assistance. For this purpose, 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 brokers possession or control from a foreign country to any other foreign country;

u. Software refers to a collection of one or more programs or micro programs fixed in any tangible medium of expression;

v. Strategic goods refer to 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. Such goods are generally suitable to be used for military purposes or for the production of WMD, and for the purposes of this Act, Are goods listed in the NSGL under Annex 1 (Military Goods); Annex 2 (Dual Use Goods); Annex 3 (Nationally Controlled Goods); and any unlisted goods as provided for in Section 11;

w. 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. Technical assistance can be provided by inter alia verbal, written or electronic means;

x. Technology refers to specific information and processes necessary for the development, production, or use of strategic goods, and may take such forms as blueprints, plans, diagrams, models, formulae, tables, engineering designs and specifications, manuals, and instructions written or recorded on other media or devices such as disk, tape, read-only memories;

y. 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;

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

aa. 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;

bb. Unlisted goods refer to goods that are not in the NSGL and may be subject to an authorization requirement under this Act; and

cc. WMD refers to any destructive device or weapon that is designed or intended to cause death or serious bodily injury through the release, dissemination, or impact of toxic or poisonous chemicals, or their precursors, any weapon involving a biological agent, toxin, or vector, or any weapon that is designed to release radiation or radioactivity at a level dangerous to human life. This includes, but not limited to: (a) nuclear and radiological explosive devices and their major sub-systems; (b) chemicals covered by Schedule I, II and III of the Chemical Weapons Convention; and (c) biological agents and biologically derived substances specifically developed, configured, adapted, or modified for the purpose of increasing their capability to produce casualties in humans or livestock, degrade equipment, or damage crops.

CHAPTER II

IMPLEMENTING STRUCTURE AND MECHANISM