Singapore Warns Companies About Using It to Circumvent Other Nations' Chip Export Controls
Singapore said it’s boosting enforcement against companies that may be using the country to circumvent foreign nations’ export controls on advanced chips, warning businesses that it may take legal action or impose other penalties.
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The country will take “firm and decisive action” against companies violating Singapore’s trade laws, and it will take other “appropriate action” against companies or people “engaged in fraudulent or dishonest practices to evade export controls that they are subject to,” Singapore’s customs authority and trade ministry said in an April 4 circular.
Singapore noted that several countries recently have imposed controls on “advanced semiconductors, semiconductor manufacturing equipment” and artificial intelligence-related technologies, and Singapore’s laws are aligned with “major multilateral export control regimes” and U.N. sanctions resolutions.
“Businesses operating in Singapore should also remain informed of and take into account the implications of other countries’ export controls on their international business activities,” it said. “The Singapore Government does not condone businesses deliberately using their association with Singapore to circumvent or violate the export controls of other countries. This applies to all our trading partners.”
The warning comes weeks after Singapore authorities charged three men with fraud after linking them to alleged illegal exports of advanced chips made by American semiconductor firm Nvidia (see 2503030014). The U.S. has been asking Asian nations to more closely track shipments of advanced semiconductors, including those subject to U.S. export controls, to make sure companies aren’t using their countries to illegally divert chips to China (see 2503270019).
Singapore said companies doing business in the country “must conduct their activities transparently and in full compliance with applicable laws and regulations.” It also said businesses could face “legal, operational and reputational consequences” if they are found to be using the country to violate other nations’ laws.
The agencies said companies should have in place a “robust” compliance program to protect themselves against “inadvertent violations.” That should include know-your-customer practices and end-user screenings to make sure any deals are with “legitimate customers or end-users that adhere to relevant export control regulations,” Singapore said. Companies should also watch for red flags, such as customers using abnormal shipping routes, and it urged businesses to review its guidance on sanctions lists and red flags.
It also said companies should consider working with “appropriate legal expertise, where necessary, for international business activities involving controlled technologies.”
“Singapore will continue to uphold our reputation as a global hub for technology and trade, safeguard the integrity of our business environment, and support continued access to leading edge technology for legitimate companies operating here,” it said.