|
|
|
|
|
|
|
IP Newsletter | Summer 2015
|
|
|
|
|
|
|
|
|
|
|
PATENT
|
|
|
|
|
|
Amendment to Regulations on Export Control of Strategic Goods
|
|
|
|
|
The Ministry of Industry, Trade and Energy ("MOTIE") amended the Regulations on Export Control of Strategic Goods ("Regulations") on July 20, 2015. The Regulations are directed to export control of "Strategic Goods" for the purpose of keeping global peace and maintaining safety and national security. "Strategic Goods" refers to goods, technology and software controlled under multinational strategic materials export control regimes such as the Wassenaar Arrangement, the Nuclear Suppliers Group, etc.
Main points of the amendments are summarized below.
|
|
|
|
|
|
|
Who may apply for export license (new Art. 18, Par. 2)
Who may apply for export license is newly defined as follows:
|
|
|
|
|
| (i) |
one who has ownership in Strategic Goods to be exported and directly controls and leads the export thereof;
|
| (ii) |
one who is comprehensively authorized to export Strategic Goods by a foreign-resident who has ownership in the Strategic Goods and directly controls and leads the export of thereof;
|
| (iii) |
one who exports contract-manufactured Strategic Goods or Strategic Goods for contract-manufacturing.
|
|
|
|
|
|
This amendment is intended to clarify who is responsible for obtaining an export license, and thus, who may be subject to sanctions in case of export without the necessary export license.
|
|
|
|
|
|
|
|
Korean text is given priority in interpretation of the Regulations (Art. 98)
The Regulations define the Strategic Goods in the annex of the Regulations with detailed specification and function. The goods listed in the annex are substantially similar to those covered by the multinational strategic materials export control regimes. The annex is currently available in Korean and English, but some provisions have discrepancies between the Korean and English text. However, the amendment makes clear that the Korean text will have priority over the English text. Therefore, in assessing whether your product needs an export license as a Strategic Good, the Korean text of the annex should be reviewed.
|
|
|
|
|
|
|
Exemptions from the export license requirement are expanded (Art. 26, Par. 1)
Although pre-export license is exempted, the Exporter is obliged to report the export to the authority within seven (7) days after export.
|
|
|
|
|
| 1) |
Currently, dual use goods controlled under the Wassenaar Arrangement are exempted from export license if the total price is USD 3,000 or less. The amendment increases the upper limit to USD 8,000. However, the exemption does not apply to dual use goods which are (i) sensitive or super-sensitive items, or (ii) software, subject to the Wassenaar Arrangement, or (iii) controlled under other multinational export control regimes.
|
|
| 2) |
If Strategic Goods are exported for presentation in trade fairs, sample displays or exhibitions, on the condition that the goods are returned to Korea or destroyed in the country of export within one year, the export license is exempted, except for (i) sensitive or super-sensitive dual use goods of the Wassenaar Arrangement, (ii) dual use goods from the CAT1 of the Missile Technology Control Regime, (iii) goods from the Military Goods Control List, (iv) goods from the Australia Group, and (v) goods from the Chemical Weapons Convention.
|
|
| 3) |
An exemption is newly added to cover the re-export of the imported Strategic Goods if a country of zone "A" (29 countries which have joined the four multinational export control regimes, such as Japan and the US) approved the re-export with confirmation of the final user. However, this exemption does not apply if the Strategic Goods relates to nuclear material or equipment.
|
|
| 4) |
An exemption is newly added to cover the export of the Strategic Goods if a country of zone "A" approved the export with confirmation of the final user and the Korean exporter is engaged in intermediary trade or export from a foreign country directly to another foreign country without importing into Korea. However, this exemption does not apply if the Strategic Goods relates to nuclear material or equipment.
|
|
| 5) |
An exemption is newly added to cover the export of dual use goods for the purpose of examination, testing and repair on the condition that the goods are returned to Korea, or destroyed in the country of export, within one year. However, this exemption does not apply to (i) sensitive or super-sensitive dual use goods of the Wassenaar Arrangement, (ii) dual use goods from the CAT1 of the Missile Technology Control Regime, (iii) goods from the Military Goods Control List, (iv) goods from the Australia Group, and (v) goods from the Chemical Weapons Convention.
|
|
|
|
|
|
|
|
|
Exemptions from the export license requirement applicable to Strategic Technology are also amended. Under the current Regulations, transfer of Strategic Technology to ex-pat employees and executives of a Korean entity is exempted from the export license requirement. The amendment further specifies the scope of the ex-pat employees and executives to those who have an employment agreement with the Korean entity (Art. 26, Par. 3).
|
|
|
|
|
|
|
|
|
MOTIE has prohibited export transactions with companies, entities or persons who have been identified as "parties of concern". The amendment provides a legal basis for the list of the parties of concern, who are unlikely to be granted an export license (Art. 90-2). Thus, exporters must check with MOTIE or the Korea Strategic Trade Institute (KOSTI) to determine whether a potential party in an export transaction is identified as a party of concern.
|
|
|
|
|
|
|
|
|
Back to Main Page
|
|
|
|
|
|
|
|
|
|
If you have any questions regarding this article, please contact:
|
|
|
|
|
|
|
|
|
|
|
|
For more information, please visit our website: www.ip.kimchang.com
|
|
|
|