STRATEGIC TRADE (AMENDMENT) ACT 2017

This Act comes into operation on a date to be appointed by the Minister by notification in the Gazette.

Amendment of section 2

by substituting for the definition of “authorized officer”

the following definition:

‘ “authorized officer” means any of the officers specified in section 25a;’; and

STRATEGIC TRADE (AMENDMENT) ACT 2017

in the definition of “brokering”, by substituting for paragraphs (a) and (b) the following paragraphs:

“(a) negotiates or arranges for the purchase, sale or supply of items from one foreign country to another foreign country; or

purchases, sells or supplies such items from one foreign country to another foreign country;”.

Amendment of section 9

in subsection (4)—

in paragraph (a)—

in subparagraph (i), by substituting for subsubparagraph (B) the following subsubparagraph:

“(B) in any other case, be punished with imprisonment for a term not exceeding ten years or with a fine not exceeding ten million ringgit or with both, and in the case of a body corporate, be punished with a fine not exceeding twenty million ringgit; or”; and

in subparagraph (ii), by substituting for the words “be punished with imprisonment for a term of not less than five years or with a fine of not less than five million ringgit or with both, and in the case of a body corporate, be punished with a minimum fine of ten million ringgit” the words “be punished with imprisonment for a term not exceeding five years or with a fine not exceeding five million ringgit or with both, and in the case of a body corporate, be punished with a fine not exceeding ten million ringgit”; and

Strategic Trade (Amendment)

in subparagraph (i), by substituting for the words “be punished with imprisonment for a term of not less than ten years or with a fine of not less than ten million ringgit or with both, and in the case of a body corporate, be punished with a minimum fine of twenty million ringgit” the words “be punished with imprisonment for a term not exceeding ten years or with a fine not exceeding ten million ringgit or with both, and in the case of a body corporate, be punished with a fine not exceeding twenty million ringgit”; and

in subparagraph (ii), by substituting for the words “be punished with imprisonment for a term of not less than five years or with a fine of not less than five million ringgit or with both, and in the case of a body corporate, be punished with a minimum fine of ten million ringgit” the words “be punished with imprisonment for a term not exceeding five years or with a fine not exceeding five million ringgit or with both, and in the case of a body corporate, be punished with a fine not exceeding ten million ringgit”;

in subsection (5)—

in paragraph (a)—

in subparagraph (i), by substituting for subsubparagraph (B) the following subsubparagraph:

“(B) in any other case, be punished with imprisonment for a term not exceeding ten years or with a fine not exceeding ten million ringgit or with both, and in the case of a body corporate, be punished with a fine not exceeding twenty million ringgit; or”; and

in subparagraph (ii), by substituting for the words “be punished with imprisonment for a term of not less than five years or with a fine of not less than five million ringgit or with both, and in the case of a body corporate, be punished with a minimum fine of ten million ringgit” the words

“be punished with imprisonment for a term not exceeding five years or with a fine not exceeding five million ringgit or with both, and in the case of a body corporate, be punished with a fine not exceeding ten million ringgit”; and

in subparagraph (i), by substituting for the words “be punished with imprisonment for a term of not less than ten years or with a fine of not less than ten million ringgit or with both, and in the case of a body corporate, be punished with a minimum fine of twenty million ringgit” the words

“be punished with imprisonment for a term not exceeding ten years or with a fine not exceeding ten million ringgit or with both, and in the case of a body corporate, be punished with a fine not exceeding twenty million ringgit”; and

in subparagraph (ii), by substituting for the words “be punished with imprisonment for a term of not less than five years or with a fine of not less than five million ringgit or with both, and in the case of a body corporate, be punished with a minimum fine of ten million ringgit” the words

“be punished with imprisonment for a term not exceeding five years or with a fine not exceeding five million ringgit or with both, and in the case of a body corporate, be punished with a fine not exceeding ten million ringgit”; and

Strategic Trade (Amendment)

in subsection (6)—

in paragraph (a)—

in subparagraph (i), by substituting for subsubparagraph (B) the following subsubparagraph:

“(B) in any other case, be punished with imprisonment for a term not exceeding ten years or with a fine not exceeding ten million ringgit or with both, and in the case of a body corporate, be punished with a fine not exceeding twenty million ringgit; or”; and

in subparagraph (ii), by substituting for the words “be punished with imprisonment for a term of not less than five years or with a fine of not less than five million ringgit or with both, and in the case of a body corporate, be punished with a minimum fine of ten million ringgit” the words

“be punished with imprisonment for a term not exceeding five years or with a fine not exceeding five million ringgit or with both, and in the case of a body corporate, be punished with a fine not exceeding ten million ringgit”; and

in subparagraph (i), by substituting for the words “be punished with imprisonment for a term of not less than ten years or with a fine of not less than ten million ringgit or with both, and in the case of a body corporate, be punished with a minimum fine of twenty million ringgit” the words

“be punished with imprisonment for a term not exceeding ten years or with a fine not exceeding ten million ringgit or with both, and in the case of a body corporate, be punished with a fine not exceeding twenty million ringgit”; and

in subparagraph (ii), by substituting for the words “be punished with imprisonment for a term of not less than five years or with a fine of not less than five million ringgit or with both, and in the case of a body corporate, be punished with a minimum fine of ten million ringgit” the words “be punished with imprisonment for a term not exceeding five years or with a fine not exceeding five million ringgit or with both, and in the case of a body corporate, be punished with a fine not exceeding ten million ringgit”.

Amendment of section 10

in subsection (2)—

in paragraph (a), by substituting for subparagraph (ii)

the following subparagraph:

“(ii) in any other case, be punished with imprisonment for a term not exceeding ten years or with a fine not exceeding ten million ringgit or with both, and in the case of a body corporate, be punished with a fine not exceeding twenty million ringgit; or”; and

Strategic Trade (Amendment)

by inserting after subsection (3) the following subsection:

“(4) In relation to strategic items, subsection (1) shall not apply to any person whose sole involvement is the provision of the following ancillary services:

transportation;

financial services;

insurance or re-insurance;

general advertisement; or

any other ancillary services as determined by the Controller.”.

Amendment of section 12

in subsection (1), by substituting for the words

“to export that unlisted item at least thirty days before that export” the words “to export, tranship or bring in transit that unlisted item at least thirty days before that export, transhipment or bringing in transit”;

in subsection (2), by substituting for the words “whether or not to allow that export to proceed” the words “whether or not to allow that export, transhipment or bringing in transit to proceed”;

in subsection (3), by substituting for the words

“that export” the words “that export, transhipment or bringing in transit”; and

in subsection (4)—

in paragraph (a)—

in subparagraph (i), by substituting for subsubparagraph (B) the following subsubparagraph:

“(B) in any other case, be punished with imprisonment for a term not exceeding ten years or with a fine not exceeding ten million ringgit or with both, and in the case of a body corporate, be punished with a fine not exceeding twenty million ringgit; or”; and

in subparagraph (ii), by substituting for the words “be punished with imprisonment for a term of not less than five years or with a fine of not less than five million ringgit or with both, and in the case of a body corporate, be punished with a minimum fine of ten million ringgit” the words “be punished with imprisonment for a term not exceeding five years or with a fine not exceeding five million ringgit or with both, and in the case of a body corporate, be punished with a fine not exceeding ten million ringgit”; and

in subparagraph (i), by substituting for the words “be punished with imprisonment for a term of not less than ten years or with a fine of not less than ten million ringgit or with both, and in the case of a body corporate, be punished with a minimum fine of twenty million ringgit” the words

Strategic Trade (Amendment)

11

“be punished with imprisonment for a term not exceeding ten years or with a fine not exceeding ten million ringgit or with both, and in the case of a body corporate, be punished with a fine not exceeding twenty million ringgit”; and

in subparagraph (ii), by substituting for the words “be punished with imprisonment for a term of not less than five years or with a fine of not less than five million ringgit or with both, and in the case of a body corporate, be punished with a minimum fine of ten million ringgit” the words

“be punished with imprisonment for a term not exceeding five years or with a fine not exceeding five million ringgit or with both, and in the case of a body corporate, be punished with a fine not exceeding ten million ringgit”.

New section 12a

have been cleared by a proper officer of customs at the last customs station on their route out of Malaysia;

have been loaded on to a conveyance which is about to depart from a port or place in Malaysia;

or

have been cleared by a proper officer of customs at an inland clearance depot or at an inland customs station on their route out of

Malaysia through a customs port or airport.

In this section, “customs airport”, “customs port”,

“inland clearance depot” and “proper officer of customs”

shall have the same meaning assigned to it in the

Customs Act 1967 [Act 235].”.

Amendment of section 14

in subsection (3), by substituting for the words “be punished with imprisonment for a term of not less than ten years or with a fine of not less than ten million ringgit or with both, and in the case of a body corporate, be punished with a minimum fine of twenty million ringgit” the words “be punished with imprisonment for a term not exceeding ten years or with a fine not exceeding ten million ringgit or with both, and in the case of a body corporate, be punished with a fine not exceeding twenty million ringgit”; and

Strategic Trade (Amendment)

in subsection (4), by substituting for the words “be punished with imprisonment for a term of not less than ten years or with a fine of not less than ten million ringgit or with both, and in the case of a body corporate, be punished with a minimum fine of twenty million ringgit” the words “be punished with imprisonment for a term not exceeding ten years or with a fine not exceeding ten million ringgit or with both, and in the case of a body corporate, be punished with a fine not exceeding twenty million ringgit”.

Amendment of section 23

any officer of customs;

any police officer;

any officer of the Malaysian Maritime Enforcement

Agency;

any officer of the Malaysian Communications and

Multimedia Commission;

any officer of the Atomic Energy Licensing Board;

any officer of the Pharmaceutical Services Division,

Ministry of Health;

any officer of the Central Bank of Malaysia;

any officer of the Securities Commission Malaysia;

any officer of the Labuan Financial Services Authority;

and

any other officers as determined by the Controller.”.

Amendment of section 33

in subsection (1), by substituting for the words

“a minimum fine of” the words “a fine not exceeding”;

and

in subsection (2), by substituting for the words “a minimum fine of” the words “a fine not exceeding”.

Strategic Trade (Amendment)

15

Amendment of section 41

by inserting after the words “order the disposal of the”

the words “items,”; and

by inserting after the words “other article in which the”

the words “items,”.

Amendment of section 45

by inserting after the words “in respect of any” the words “items,”; and

by inserting after the words “other article in which the”

the words “items,”.

New section 50a

any offence under this Act and any regulations made under the Act that may be compounded;

the criteria for compounding such offence; and

the method and procedure for compounding such offence.

The authorized officer may, with the consent in writing of the Public Prosecutor, compound any offence committed by any person under this Act and prescribed to be a compoundable offence by making a written offer to the person suspected to have committed the offence to compound the offence upon payment to the authorized officer of an amount of money not exceeding fifty per centum of the amount of maximum fine for that offence within such time as may be specified in his written offer.

An offer under subsection (2) may be made at any time after the offence has been committed but before any prosecution for it has been instituted.

If the amount specified in the offer is not paid within the time specified in the offer or such extended time as the authorized officer may grant, prosecution for the offence may be instituted at any time after that against the person to whom the offer was made.

Where an offence has been compounded under subsection (2), no prosecution shall be instituted in respect of the offence against the person to whom the offer to compound was made, and any items, strategic items and unlisted items together with any container, package, conveyance and other article in which the items, strategic items and unlisted items are stored, kept or found, record, book, account, document and computerized data seized in connection with the offence may be released or disposed by the Controller in accordance with section 41, subject to such terms as he thinks fit.

All sums of money received by the authorized officer under this section shall be paid into and form part of the

Federal Consolidated Fund.”.

Amendment of section 55

Any action or proceedings commenced or pending immediately before the date of coming into operation of this Act shall, after the date of coming into operation of this Act, be continued as if the principal Act had not been amended by this Act.

Where on the date of coming into operation of this Act, application for a permit or special permit under section 14 of the principal Act is pending before the relevant Authority, the provisions of the principal Act relating to application for a permit or special permit as amended by this Act shall apply.

Where on the date of coming into operation of this Act, application for a registration to carry out brokering of strategic items under section 19 of the principal Act is pending before the relevant Authority, the provisions of the principal Act relating to the definition of the term brokering and non-application of section 11 in respect of the provision of ancillary services relating to strategic items as amended by this Act shall apply.

KUALA LUMPUR