REGULATIONS OF IMPORTS AND EXPORTS BILL

Order for Second Reading read.

The Minister for Trade and Industry (Mr Yeo Cheow Tong): Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time."

The Regulation of Imports and Exports Bill provides for the registration, regulation and control of imports into and exports from Singapore. This Bill consolidates and updates two existing statutes, namely, the Control of Imports and Exports Act (Cap 56), which I will call "Control Act" for short, and the Registration of Imports and Exports Act (Cap 270), which I will call "Registration Act" for short.

[Mr Deputy Speaker in the Chair]

4.15 pm

The Minister for Trade and Industry (Mr Yeo Cheow Tong): Sir, the "Registration Act" was enacted in 1934, and the "Control Act" in 1950. The last time both Acts were amended was in 1982, to allow for the establishment of the Trade Development Board. Other than the 1982 amendments which were mainly administrative in nature, there has not been any major amendment to either of the two existing Acts since their enactment.

Sir, the trading environment in Singapore has changed significantly in the past four to five decades since the introduction of these two statutes. Singapore is now a major international trading hub. Both the volume and value of trade have increased in quantum leaps, in tandem with the growing global importance of our air and sea ports. The advent of electronic media for trade documentation adds a new dimension and poses additional challenges for trade regulation.

A comprehensive review of the two Acts was therefore necessary so as to bring the legislation in line with the prevailing trade environment and to facilitate the use of information technology. The fusion of these two Acts into a single piece of legislation would greatly facilitate and enhance the administration of our import and export trade.

By and large, the main provisions of the two existing Acts will continue to be in force. However, the provisions have been consolidated to eliminate duplication and enhance clarity, especially where the two Acts overlap, so as to facilitate easier referencing and administration.

Administratively, at present, traders in Singapore have to complete a combined declaration form in compliance with the requirements under both existing Acts. However, traders are unsure which part of the declaration refers to which Act. A single Act eliminates such doubt and uncertainty.

In drafting this consolidated Bill, my Ministry has also taken the opportunity to bring the law up to date and to enact new provisions in line with Singapore's status as an international trading centre. Hence, new provisions have been included:

First, governing the use of electronic media, ie, TradeNet, for the submission and receiving of trade documents between the traders and the authorities;

Second, for the registration of entities concerned with trade;

Third, to update penalties so as to be in line with other commercial crimes and offences; and

Fourth, to specify conditions upon which disclosure may be made to foreign government authorities.

Sir, let me now go into the key provisions of the Bill. Provisions under the two existing Acts governing the use of the TradeNet system are inadequate. Not only does it fail to deal with the novel legal issues posed by TradeNet, it also does not completely cover many other trade documents that are currently submitted electronically for administrative convenience. This Bill enhances the legislative framework governing the transmission and use of electronic data for trade documentation whilst providing safeguards for the electronic age.

Clause 29 of this Bill penalizes the unauthorised modification of computer programmes or data. This includes the destruction, damage, erasure, or insertion of computer viruses into the system. This offence is punishable by a fine not exceeding $10,000 or imprisonment for a term not exceeding two years, or both. Providing new enforcement powers, safeguards and penalties will enhance confidence in the system and encourage increased use of the electronic medium.

Clause 3 of this Bill empowers the Trade Development Board to create a register of importers, exporters or common carriers of goods. With the establishment of a register, the recalcitrant trader faces deregistration and the loss of associated trading privileges; this would heighten the risks and cost of illegal activities and serve as another deterrent.

Sir, the two existing Acts were enacted more than 40 years ago. The penalties provided for in the two Acts are now outdated and inadequate in the context of today's trading environment. There is thus a need to review the penalties so as to bring them in line with other commercial crimes and offences.

Currently, under the "Registration Act", the maximum penalty ranges from $1,000 up to a maximum of a mere $2,000. The maximum penalty under the "Control Act", for the first offence is $10,000 or three times the value of the goods in respect of which the offence was committed, whichever is the greater, or imprisonment for a term not exceeding 12 months or both. For the second and subsequent offence, it is a fine not exceeding $20,000 or four times the value of the goods, whichever is the greater, or imprisonment for a term not exceeding two years or both.

Clause 3(3) of this Bill increases the penalties to a maximum fine of $100,000 or three times the value of the goods, whichever is the higher, or two years' imprisonment or both for the first offence. For the second and subsequent offence, the penalties have been increased to a maximum fine of $200,000 or four times the value of the goods, whichever is the greater, and a maximum of three years' imprisonment or both. Hence, with the consolidation of the two existing Acts and these revisions, we are now able to impose a common set of realistic penalties.

Sir, currently there exists in the "Control Act" under section 17 an explicit provision that the powers of search are not applicable to a passenger while he is on board a vessel and in transit through Singapore to a destination outside Singapore. This restriction has been omitted from clause 21 of the new Bill, thereby allowing the search of transit passengers for contraband and other illegal goods such as narcotics.

Sir, presently, the Registration of Import and Export Rules refer only to the importer or exporter of goods obtaining the relevant inward or outward declaration. Increasingly, freight forwarders and cargo agents are submitting trade declarations to the TDB on behalf of the trader. However, if there are errors in these declarations, it is the importer or exporter who is held liable even though it may not have been his fault and he did not sign the declaration himself.

Clause 28 of the Bill aims to rectify this inequity. It provides that, in instances where the documents are submitted or declared by an agent, the agent is presumed to do so on his principal's authority. The person who signs the document is also deemed to be cognizant of all matters therein and may be held liable for their actions.

Sir, the two existing Acts provide that information, particulars or documents that have been supplied by the importer or exporter cannot be released without the prior consent in writing of the importer or exporter, except for purposes of a prosecution in Singapore. Clause 31 now provides for this provision to be widened to allow the disclosure of such information to a foreign government authority if certain conditions are met.

The nine conditions, as stipulated in clause 31(1)(4), serve as a safeguard to ensure that information is judiciously released and only for specific purposes that are not prejudicial to Singapore's essential interests.

Sir, in conclusion, I wish to point out that this new Bill addresses the major trends in trade technology. By facilitating the increased use of information technology, this Bill brings Singapore to the forefront in the use of electronic data in trade. The enhanced penalties and powers will help combat spurious and illegitimate use of Singapore's open trading system. Traders will also find that with this one consolidated Bill, the trading process is simplified and there is greater clarity in the procedures. The Regulation of Imports and Exports Bill will, therefore, remove impediments to trading activities and, in turn, further enhance Singapore's position as a thriving international trading hub.

Sir, I beg to move.

Question put, and agreed to.

Bill accordingly read a Second time and committed to a Committee of the whole House.

The House immediately resolved itself into a Committee on the Bill. - [Mr Yeo Cheow Tong].

Bill considered in Committee; reported without amendment; read a Third time and passed.