This guidance for Industry calls for commitment to compliance by entities whose activities are regulated by Non-Proliferation Legislation, and guidelines are offered for dealing with controls. The emphasis is on practical and relevant measures and aspects typical of quality management.  This Guide should ease trade procedures, benefit the customer and help the exporter to proceed with confidence, in the knowledge that he is not contributing to proliferation.

It should also help the exporter to overcome possible pitfalls posed by embargoes by the United Nations Security Council, as well as South African restrictions on the manufacture, trade in or transfer of controlled activities or goods, including restrictions in respect of countries and entities of proliferation concern.  This should enhance international operations and trade in that companies take note of and comply with South African national interests and international obligations, norms and best practice.

It is recommended that companies, on a voluntary basis, issue and implement their own internal compliance programmes in this regard.  An ICP is not only for large businesses and ”small” businesses could implement simplified ICPs.

1. Commitment to Compliance;
2. Nomination of responsible personnel;
3. Information and training;
4. Internal compliance procedures;
5. Handling of (suspicious) enquiries/orders;
6. Record keeping;
7. Provision for Audits; and
8. Integration with quality management practices.

This commitment to comply could be captured in a Statement or Declaration of Intent by the chairperson or chief executive of the entity, involved in or intending to become involved in any activity that is controlled by the Act. This Statement should be submitted to the NPC and should also be made visible to all employees, especially those affected by the control measures. 

The objective of this commitment is to clarify the policy of the business on non-proliferation issues and to underline the importance of effective compliance procedures.  Senior management can raise awareness, at all levels, by summarising briefly the business requirements, the strategic environment and the principles of non-proliferation controls.

By demonstrating their commitment to compliance they also strengthen the position of those charged with administering non-proliferation compliance programmes.

The statement may be general or specific in form but it could signal commitment to compliance with the applicable Legislation and Policy.

Appendix A to Part 3, gives an example of a statement or commitment that could be made by management.  It is not intended as a pro forma and businesses may wish to express their commitment according to their own style and circumstances. Persons that issue such a statement should circulate it widely to all staff, partners and associates and any sub-contractors that are involved in or intending to become involved in any controlled activity.

The objective of this element is to ensure a clear line and definition of responsibilities within the business in terms of its compliance with Legislation and Policy.  The chairperson or chief executive officer or equivalent within the business must appoint a staff member to be responsible for compliance.  All employees should be aware of the organisation’s control policy, mechanisms and procedures. All the entity’s partners / associates and sub-contractors should be made aware of the appointment.

The statement of compliance (see ICP Element 1 and Appendix A of Part 3) should include the name of the responsible staff member.  This may be supplemented by an organisational chart, which sets out each element of delegated responsibility, giving details of the post (and individual) to which it is delegated. Individual job descriptions should, where appropriate, specify responsibilities in relation to controls.

The NPC may also, for specified reasons, require entities who are involved in controlled goods and activities, to complete a training course, the content and outcome of which shall be determined by the NPC.

Entities involved in controlled activities or goods should develop awareness among business’ employees of the necessity for compliance with Non-proliferation Policy and Legislation.

The objective of this element is to ensure that entities are aware of all information relating to controls, including training material, and that they have adequate procedures in place to inform and train personnel. It is advisable that all employees receive on an annual basis (or more frequent if required) a general update on the general provisions of your business’ ICP.

It is essential to obtain and to keep up to date with relevant policy, legislation and guidelines. It is advisable to maintain a reference list of sources of information and contacts.

Procedures should be in place for acquiring details of changes/updates to policy and legislation and distributing it to relevant personnel.

Internal Non-Proliferation control training requirements for all levels of personnel should be identified and appropriate training programmes developed.

The NPS will also, as part of its outreach programme, present regular (once per year) or on-request, training courses/briefings on developments within the non-proliferation environment.

The objective of internal compliance procedures is to promote effective and appropriate procedures for processing enquiries/orders in accordance with relevant control requirements. This ICP encompasses guidelines for internal procedures, based on existing best practice.  It highlights the issues that need to be addressed by means of a checklist.

The stages detailed could include

1. Establishing whether the entities’/person’s  activities and or goods are controlled, and if so, whether the entity is registered with the NPC;
2. Establishing what type of authority or permit would be required in regard to the abovementioned activities;
3. Registration of a entity/person and/or contractors or sub-contractors, as well as establishing the control status of goods;
4. End-use/ End-User obligations;
5. The vetting of customers (see also suspicious enquiries/orders in ICP 5);
6. The process of permit applications;
7. Transfers; and
8. Freight-forwarding/Transporting (International Commercial Terms [Incoterms]);
9. Appropriate safety and security measures; and
10. Keeping of records.

Key features of best practice are:

1. A considered plan of what is needed for compliance;
2. Clear and simple procedures appropriate to the business’ structure and integrated with the business’ functions;
3. Comprehensive coverage, detailing requirements of all relevant activities related to controlled activities and or controlled goods; and
4. Adequate documentation in place (in line with other quality management initiatives).

Each of the control areas has unique requirements and therefore unique processes and procedures. See Appendix B to Part 3 for a proposed generic model.

The objective of this element is to enable entities/persons to protect themselves by avoiding involvement in activities that may be against any South African Non-Proliferation of WMD legislation. Indicators are made available to help in assessing customers and orders that may be unusual and carry possible risks, for example:

1. The diversion from the stated end-user to another end-user, possibly in another country, who may be engaged in a programme to acquire weapons of mass destruction;
2. The diversion from the stated end-use(r) to another end-use(r); and
3. The diversion to a destination subject to a United Nations arms embargo.

The vast majority of your business’ customers would be legitimate. Some customers may emerge, whose intent is to procure or divert controlled goods and activities for WMD programmes. They may attempt to obtain services or assistance from your business for prohibited activities (such as proliferation of weapons of mass destruction) or to countries or entities (companies and/or non-State actors) of proliferation concern.

There may be occasions when the nature or circumstances of an enquiry or order lead you to doubt the bona fides of the customer. This may be an international customer or a South African based customer known, or thought, to be planning to export and or source controlled goods or controlled activities to support WMD programmes.

By notifying the appropriate control authorities of their suspicions, businesses can obtain advice and guidance on the basis of comprehensive information available to the NPS.  Industry can also contribute information to the NPS that may prevent the trade in controlled goods and services. This information could include notification of suspicious requests for co-operation, as well as visits to and training at premises of industry where controlled activities take place.

Staff needs to be aware of these indicators, see Appendix C to Part 3.

The objective of record keeping is to ensure that traceable records of activities and goods are maintained for a period of at least five years so that queries about any activity or goods subject to control may be readily checked and an adequate audit trail maintained.

To facilitate record keeping, your business should consider establishing a policy for maintaining and storage of records. This policy or operational procedure should address the minimum time that records should be kept, the method of safe keeping, as well as where records will be kept.

The processing system should be reviewed to ensure a logical sequence for recording controlled activities.

See also Appendix B to Part 3.

The objective of audits is to maintain standards set in compliance procedures through periodic appraisal.  According to the size and complexity of the business, the audit may be a self-auditing procedure carried out according to a simple checklist of questions or it may be delegated to a central internal auditing function.

It is recommended that the sales/marketing section do not perform the audit.

See Appendix E to Part 3.

The objective of this element is to ensure that within quality management practices, Non-Proliferation related control compliance procedures are treated in the same manner and with equal emphasis, as other business procedures. To this end quality managers should be briefed on the Guidelines of the ICP.