Industry Outreach November 18th, 2005 Ministry of Economy, Trade and Industry (METI) Japan.

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Presentation transcript:

Industry Outreach November 18th, 2005 Ministry of Economy, Trade and Industry (METI) Japan

1 Outline Need for Industry Outreach –Types of Unintentional Illegal Exports Steps for Industry Outreach –Awareness Raising –Supporting Establishment/Implementation of Internal Compliance Program Recent Trend

2 Need for Industry Outreach Legal framework, adequate licensing, stringent enforcement are all essential for effective export controls Exporters observance to the export control system is also essential, while more compliance is needed for some exporters There is a room for the government to support and cooperate with industry to enhance export control systems as a whole

3 Most violations are unintentional Reference: METI Types of Illegal Exports in Japan ( )

4 Steps for Industry Outreach 1.Awareness Raising 2.Supporting Companies to Establish/Implement Internal Control Program

5 Awareness Raising 1.Distributing Pamphlets -brief outline of export controls -140,000 already distributed

6 Awareness Raising 2. Internet Website - Information on legislation, application procedures, among others

7 3. Seminars - Mainly for companies in local areas - Held 47 times for 3,500 companies (Japan in FY2004) 4. Telephone Consultation - Around 100 consultation per month (Japan) Awareness Raising

8 9.Violations and Reporting 1.Basic Policies 2.Organization 3.Procedures 4.Shipment Confirmation 5.Audit 6.Training 7.Record keeping 8.Guidance for Subsidiaries 1. Elements of ICP Support to Establish /Implement Internal Compliance Program

9 2. Advantage of Establishing ICP 1.Minimize the burden of the company 2.Effective not only for exports of goods but also for intangible transfer e.g. , fax, peoples knowledge 3.Facilitation of communication between authority and industry Support to Establish /Implement Internal Compliance Program

10 (1) Support to Establish ICP - Pamphlets - Model internal compliance program for reference (2) Support to Implement ICP - Visit and advise companies - Declaration from companies - Carrying names of companies with ICP on website Supporting Companies to Establish /Implement Internal Compliance Program 3.Measures to be taken

11 NPO as a bridge between government and industry Center for Information on Security Export Control (CISTEC) -Research and Analysis -Supporting Industry 1.Various guidance and consultation 2.Publication -International cooperation with other institute

12 Number of Associated Members of CISTEC (year) (number) -Most of the top 50 companies covering two thirds of exports in Japan are included - They have own compliance program

13 Summary and Comments Stringent export control system in government authority and cooperation from industry are both essential Communication by both sides and establishing ICP is an essential step and various approaches are possible.