20-0825 Tuesday “Daily Bugle”

20-0825 Tuesday “Daily Bugle”

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Tuesday, 25 August 2020

  1. Treasury/OFAC: “Notice of OFAC Sanctions Actions”
  1. Items Scheduled for Future Federal Register Edition
  2. Commerce/BIS: (No new postings)
  3. DHS/CBP: “Section 301 China Tranche 3 – $200B Product Exclusion Extensions”
  4. State/DDTC: (No new postings)
  5. EU Commission: “Joint Statement of the United States and the European Union on a Tariff Agreement”
  1. Deutsche Welle: “TikTok to Sue Trump Administration over Crackdown”
  2. WSJ: “Curtiss-Wright Discloses Possible Russia Sanctions Violations”
  1. Husch Blackwell: “USTR Requests Comments on China’s WTO Compliance”
  2. Nicholas Turner: “Sanctions Top-5 for the Week Ending 21 Aug”
  3. Squire Patton Boggs: “US-EU-UK: Export Controls and Sanctions Update”
  4. Tereposky & DeRose: “Canada Publishes Its Interpretation of the CUSMA (USMCA)”
  1. Marco Crombach Becomes COO of FCC
  1. ECTI Presents: Import 101 for Aerospace Professionals Webinar; 26 Aug
  2. FCC Academy Presents 4 Webinars: U.S. Export Controls: ITAR & EAR | FMS | Designing and Implementing an ICP
  1. Bartlett’s Unfamiliar Quotations 
  2. Are Your Copies of Regulations Up to Date? Find the Latest Amendments Here. 
  3. Weekly Highlights of the Daily Bugle Top Stories 
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(Source: Federal Register, 25 Aug 2020) [Excerpts]
85 FR 52414
* AGENCY: Office of Foreign Assets Control, Treasury.
* ACTION: Notice.
* SUMMARY: The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) is publishing the names of one or more persons that have been placed on OFAC’s Specially Designated Nationals and Blocked Persons List based on OFAC’s determination that one or more applicable legal criteria were satisfied. All property and interests in property subject to U.S. jurisdiction of these persons are blocked, and U.S. persons are generally prohibited from engaging in transactions with them.
* FOR FURTHER INFORMATION CONTACT: OFAC: Associate Director for Global Targeting, tel.: 202-622-2420; Assistant Director for Sanctions Compliance & Evaluation, tel.: 202-622-2490; Assistant Director for Licensing, tel.: 202-622-2480.

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[No items of interest posted]

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OGS_a23. Commerce/BIS: (No new postings)

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(Source: DHS/CBP, 24 Aug 2020)
  UPDATE: The functionality for the acceptance of the imported merchandise covered by 85 FR 48600 will be available in the Automated Commercial Environment (ACE) as of 7 a.m. eastern daylight time, August 25, 2020. 
  On August 11, 2020, the U.S. Trade Representative (USTR) published Federal Register (FR) Notice 85 FR 48600, extending certain product exclusions previously covered by FR Notices 84 FR 38717, 84 FR 49591, 84 FR 57803, 84 FR 61674, 84 FR 65882, 84 FR 69012, 85 FR 549, 85 FR 6674, 85 FR 9921, 85 FR 15015, 85 FR 17158, 85 FR 23122, 85 FR 27489, 85 FR 32094, 85 FR 38000, and 85 FR 42968 from Section 301 related to goods from China (Tranche 3 – $200B Action). 
  The extension relates to the imposed additional duties announced in 83 FR 47974 on Chinese goods with an annual trade value of approximately $200 billion. 
  The product exclusion extension will apply as of August 7, 2020, and will extend through December 31, 2020
  The functionality for the acceptance of the imported merchandise covered by the extension of product exclusions that were previously covered under multiple product exclusion rounds from China excluded from the Section 301 (Tranche 3 – $200B Action) duty will be available in the Automated Commercial Environment (ACE) as of 7 a.m. eastern daylight time, August 25, 2020.
  Instructions for importers, brokers, and filers on submitting entries to CBP containing granted exclusions by the USTR from the Section 301 measures are set out below:
* Per 85 FR 48600, in addition to reporting the regular Chapter 3, 8, 16, 28, 29, 32, 34, 37, 38, 39, 40, 42, 44, 48, 50, 51, 54, 55, 56, 57, 58, 60, 65, 68, 69, 70, 73, 75, 76, 82, 83, 84, 85, 87, 90, 91, and 94 classifications of the HTSUS for the imported merchandise, as of August 7, 2020, importers shall report the HTSUS classification 9903.88.56 (Articles, the product of China, as provided for in U.S. note 20(iii) to this subchapter, each covered by an exclusion granted by the USTR for imported merchandise subject to the exclusion).


* Importers shall not submit the corresponding Chapter 99 HTS number for the Section 301 duties when HTS 9903.88.56 is submitted.

  Imports which have been granted a product exclusion from the Section 301 measures, and which are not subject to the Section 301 duties, are not covered by the Foreign Trade Zone (FTZ) provisions of the Section 301 Federal Register notices, but instead are subject to the FTZ provisions in 19 CFR part 146.
  To request a refund of Section 301 duties paid on previous imports of products granted duty exclusions by the USTR, importers may file a Post Summary Correction (PSC) if within the PSC filing timeframe. If the entry is beyond the PSC filing timeframe, importers may protest the liquidation if within the protest filing timeframe. The latest guidance on the process for submitting retroactive claims for product exclusions to CBP is found in CSMS 42566154.
  In situations where an importer has requested a product exclusion and the request is pending with the USTR, importers or their licensed representative may submit a request to extend the liquidation of impacted unliquidated entry summaries to CBP.
  Reminder: importers, brokers, and/or filers should refer to CSMS 39587858 (Entry Summary Order of Reporting for Multiple HTS when 98 or 99 HTS are required) for guidance when filing an entry summary in which a heading or subheading in Chapter 99 is claimed on imported merchandise.

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  United States Trade Representative Robert Lighthizer and European Union Trade Commissioner Phil Hogan today announced agreement on a package of tariff reductions that will increase market access for hundreds of millions of dollars in U.S. and EU exports. These tariff reductions are the first U.S.-EU negotiated reductions in duties in more than two decades.
  Under the agreement, the EU will eliminate tariffs on imports of U.S. live and frozen lobster products. U.S. exports of these products to the EU were over $111 million in 2017. The EU will eliminate these tariffs on a Most Favored Nation (MFN) basis, retroactive to begin August 1, 2020. The EU tariffs will be eliminated for a period of five years and the European Commission will promptly initiate procedures aimed at making the tariff changes permanent.
  The United States will reduce by 50% its tariff rates on certain products exported by the EU worth an average annual trade value of $160 million, including certain prepared meals, certain crystal glassware, surface preparations, propellant powders, cigarette lighters and lighter parts. The U.S. tariff reductions will also be made on an MFN basis and retroactive to begin August 1, 2020.
  “As part of improving EU-US relations, this mutually beneficial agreement will bring positive results to the economies of both the United States and the European Union. We intend for this package of tariff reductions to mark just the beginning of a process that will lead to additional agreements that create more free, fair, and reciprocal transatlantic trade” said Ambassador Lighthizer and Commissioner Hogan.

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(Source: Deutsche Welle, 23 Aug 2020)[Excerpts]

  The massively popular app is under pressure to comply with President Donald Trump’s executive order or face a potential shutdown in the US. It isn’t the only Chinese-owned app in Washington’s crosshairs.
  Popular social media app TikTok announced Saturday that it planned to sue the Trump administration over an executive order which could ban the Chinese-owned service from being used in the US.
  “To ensure that the rule of law is not discarded and that our company and users are treated fairly, we have no choice but to challenge the Executive Order through the judicial system,” said a TikTok spokesman, adding that the company plans to file the motion next week.
  US President Donald Trump signed an executive order in August giving TikTok’s Chinese-based parent company ByteDance 90 days to divest the US operations of TikTok before the app is banned.  
  Trump has accused TikTok of being a threat to national security, saying the app’s data collection policy “threatens to allow the Chinese Communist Party access to Americans’ personal and proprietary information.”

(Source: Wall Street Journal, 21 Aug 2020) [Excerpts]

  Curtiss-Wright Corp. may have violated U.S. sanctions on Russia after a blacklisted company acquired two of its longstanding customers, according to a securities filing by the manufacturer.
  Davidson, N.C.-based Curtiss-Wright disclosed the potential breach in a filing this week with the U.S. Securities and Exchange Commission. The company, which makes components and provides products and services to the defense, aerospace and industrial sectors, said in the disclosure that it notified sanctions authorities and retained outside counsel to investigate.
  The disclosure was made as a part of the successful issuance and sale of $300 million in senior notes, which the company said it expected to use for general corporate purposes. The potential sanctions violation is immaterial to the corporation, a Curtiss-Wright representative said.
  The acquisition of the unnamed customers, which occurred some time in 2019, happened without the knowledge of Curtiss-Wright, the company said in its filing. Curtiss-Wright said it voluntarily disclosed the matter in January to the U.S. Treasury Department’s Office of Foreign Asset Controls, which enforces U.S. sanctions.
  Curtiss-Wright said its investigation into the incident revealed the two customers weren’t initially captured under sanctions the Obama 
administration imposed on Russia in 2014 for the country’s annexation of the Crimea region of Ukraine. “Change of ownership resulted in beneficial ownership sanctions now capturing our two longtime customers,” the company said. 
  Curtiss-Wright’s banks didn’t halt transactions with the blacklisted entity that acquired the two customers, which the company didn’t name, due to actions of a contracts administrator, according to the filing. The administrator had modified the credit terms of invoices for products that had already shipped so the banks would allow payments, Curtiss-Wright said.
  The contracts administrator had acted without the consent of management and was subsequently fired, Curtiss-Wright said, in what its counsel believed are mitigating factors.


* Author: Camron J. Greer, 1-202-378-2413, Husch Blackwell LLP
  The Office of the U.S. Trade Representative (USTR) requests comments to assist in the preparation of its annual report to Congress on China’s compliance with commitments made in connection to its accession to the World Trade Organization (WTO) in 2001. The deadline for the submission of comments is September 16, 2020. The interagency Trade Policy Staff Committee (TPSC) will pose questions on submitted comments by September 30, 2020, and commenters can respond to TPSC’s questions up until October 14, 2020. The USTR’s previous annual report on China’s WTO compliance can be viewed here.
  The terms of China’s accession to the WTO are contained in Protocol of Accession of the People’s Republic of China, the Working Party Report, and the WTO agreements, which can be found here under sections V and VI of the webpage. According to the USTR’s notice, comments on China’s compliance with WTO commitments can include, but are not limited to, the following:
  • Trading rights
  • Import regulation (e.g. tariffs, tariff-rate quotas, quotas, import licenses)
  • Export regulation
  • Internal policies affecting trade (e.g. subsidies, standards and technical regulations, sanitary and phytosanitary measures, government procurement, trade-related investment measures, taxes and charges levied on imports and exports)
  • Intellectual property rights (including intellectual property rights enforcement)
  • Services
  • Rule of law issues (e.g. transparency, judicial review, uniform administration of laws and regulations) and status of legal reform
  • Other WTO commitments
  Additionally, USTR requests that interested parties specifically identify unresolved compliance issues that warrant review by USTR’s China Enforcement Task Force.

(Source: Medium, 25 Aug 2020)

* Author: Nicholas Turner, Esq., 852-5998-7559, Steptoe & Johnson HK
  Here are five things that happened this week in the world of economic sanctions that I think you should know about.
  1. US Secretary of State Mike Pompeo notified the United Nations Security Council that the US government would attempt to trigger the “snapback” provision of the 2015 Joint Comprehensive Plan of Action (JCPOA) to prevent the lifting of the UN arms embargo on Iran set to expire in October 2020. (More on this below.)
  2. The US Office of Foreign Assets Control (OFAC) named two UAE-based companies and one Iranian national in the UAE as Specially Designated Nationals (SDNs) pursuant to Executive Order 13224 for procuring and delivering US-origin aircraft parts for Iran’s Mahan Air. The US Department of Justice (DOJ) simultaneously announced charges against the individual and one of the companies for violating US export controls and sanctions.
  3. The European Council announced that EU leaders agreed to prepare new sanctions against individuals in Belarus “responsible for violence, repression, and election fraud” following the country’s disputed presidential election on 9 August 2020. The US State Department issued a statement in support “of the aspirations of the Bearusian people.” In June 2020, the President renewed a US national emergency under Executive Order 13405 of 16 June 2006, authorizing blocking sanctions in relation to Belarus.
  4. OFAC named four Ugandan individuals, including two judges and a lawyer, as SDNs under the Global Magnitsky Sanctions program pursuant to Executive Order 13813 for their roles in a bribery scheme leading to fraudulent adoptions of Ugandan-born children. Meanwhile, the DOJ charged the Ugandan lawyer and one US national for violating the Foreign Corrupt Practices Act (FCPA) and other laws in connection with the scheme.
  5. OFAC announced the designation of Syrian President Bashar Al-Assad’s press officer and her husband, a prominent member of the Syrian Ba’ath Party, as SDNs pursuant to Executive Order 13573. Meanwhile, the State Department announced the designation of one of Assad’s “henchman” and three military officials under Executive Order 13894.


  Secretary Pompeo explained in a news conference that the US government considers the political commitments made in the JCPOA to be separate from UN Security Council Resolution 2231 (2015), which implements the agreement. Essentially, the United States is arguing that Resolution 2231, by its terms, gives the United States the right to continue participating in the sanctioning process as a member of the UN Security Council, despite the US withdrawal from the JCPOA in 2018. (The diplomatic equivalent of tearing up your ticket after the train’s left the station.) I have to admit, to me, it’s not a terrible argument, albeit cheeky to the extreme. And, personally, I would rather see this worked out in the Security Council than outside of it.

* Principal Author: George N. Grammas, Esq., 1-202-626-6234, Squire Patton Boggs
  This publication from our International Trade Practice looks at the shifting regulatory framework for international trade compliance on both sides of the Atlantic.
  In this issue, we cover:
  • BIS Adds Certain Cultivation Chambers and Precursor Chemicals to the CCL
  • BIS Permits Release of “Technology” in the Context of Standards Organizations
  • DDTC Amends Licensing Policy Regarding the Hong Kong Special Administrative Region (Hong Kong)
  • US Department of Treasury Office of Foreign Assets Control (OFAC) Reaches Settlement With Several Companies
  • OFAC Issues Global Magnitsky General License and Frequently Asked Question
  • Federal Grand Jury Indicts California-based Company, Company President and Employee in Alleged Scheme to Violate the Export Control Reform Act
  • Department of Justice Sentences Massachusetts Man for Smuggling Goods From the US to Iran
  • EU Council Amends North Korean Sanctions and Extends Venezuelan Sanctions Listings
  • The Paris Court of Appeal Holds That US Sanctions Cannot Be Considered as Mandatory Rules in France
  • EU Renews Crimea and Sevastopol Sanction
  • EU Renews Economic Sanctions on Specific Economic Sectors of the Russian Federation
  • EU Announces That the Free Trade Agreement With Vietnam Entered Into Force
  • EU Calls for More Transparency on COVID-19 Trade-related Measures by WTO Members
  • EU Affirms Airbus Compliance
  • EU Plans on Restricting Exports of Communication Interception and Cybersurveillance Equipment and Technology to Hong Kong
  • EU and UK Prepare for Hard Brexit
  • The UK Imposes First Human Rights Sanctions
  • The UK Extends Arms Embargo on People’s Republic of China to Hong Kong
  • The UK Announces Plans to Remove Huawei from UK 5G Networks by 2027
  • The UK Plans to Resume Granting Export Licenses of Military Equipment to Saudi Arabia

(Source: Trade & ISDS, 21 Aug 2020)

* Principal Author: Daniel Hohnstein, 613-237-9005, Tereposky & Derose LLP
  On 22 August 2020, the Canadian Statement on Implementation of the Canada-United States-Mexico Agreement was published in the Canada Gazette, Part 1.
  The Statement sets out Canada’s interpretation of the CUSMA (which is called the USMCA by the United States and the T-MEC by Mexico). Its objective is to explain the basic rights and obligations in the CUSMA from Canada’s perspective, including how Canada intends to exercise its rights while observing its commitments.
  On a chapter-by-chapter basis, the Statement provides a summary of Canada’s interpretation of each provision and outlines how Canada has implemented the Agreement into domestic law. The Statement also sets out additional actions that the Government will undertake to maximize the benefits of the negotiated outcomes of the new Agreement.


MS_a113. Marco Crombach Becomes COO of FCC  

(Source: Editor)
Marco Crombach, MSc, formerly Senior Manager, Full Circle Compliance, BV (“FCC”), headquartered in the Netherlands, has become FCC’s Chief Operations Officer.  Contact Marco at mfncrombach@fullcirclecompliance.eu or 31-654-140-527.

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* What: Import 101 for Aerospace Professionals
* When: 26 Aug; 1:00 p.m. (EDT)
* Where: Webinar
* Sponsor: Export Compliance Training Institute (ECTI)
* ECTI Speaker: Marc Binder
* Register: here or Ashleigh Foor, 1-540-433-3977,
* * * * * * * * * * * * * * * * * * * *

Intro to ITAR & EAR from a non-US Perspective
Tuesday, 8 September 2020
More Info
Special Offer: $199
The ABC of Foreign Military Sales (FMS)
Tuesday, 29 September 2020
Designing and Implementing an ICP
Tuesday, 6 October 2020 More Info
Wednesday, 7 October
More Info
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EN_a116. Bartlett’s Unfamiliar Quotations

(Source: Editor)

* Bret Harte (born Francis Brett Hart; 25 Aug 1836 – 5 May 1902; was an American short story writer and poet, best remembered for his short fiction featuring miners, gamblers, and other romantic figures of the California Gold Rush.)

  – “The only sure thing about luck is that it will change.” 
  – “Never a tear bedims the eye that time and patience will not dry.”
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The official versions of the following regulations are published annually in the U.S. Code of Federal Regulations (C.F.R.), but are updated as amended in the Federal Register.  The latest amendments are listed below.
Latest Update 


5 Apr 2019: 84 FR 13499:

Civil Monetary Penalty Adjustments for Inflation. 
20 Aug 2020: 85 FR 51335 and  51596: Additions to the Entity List, removal of Huawei’s temporary general license, and supplemental license requirements for parties listed on the Entity List.
DOC FOREIGN TRADE REGULATIONS (FTR): 15 CFR Part 30.   24 Apr 2018: 83 FR 17749: Foreign Trade Regulations (FTR): Clarification on the Collection and Confidentiality of Kimberley Process Certificates.  

: DoD 5220.22-M. Implemented by Dep’t of Defense. 

18 May 2016: Change 2: Implement an insider threat program; reporting requirements for Cleared Defense Contractors; alignment with Federal standards for classified information systems; incorporated and cancelled Supp. 1 to the NISPOM (Summary here.)  
DOE ASSISTANCE TO FOREIGN ATOMIC ENERGY ACTIVITIES: 10 CFR Part 810.    23 Feb 2015: 80 FR 9359: comprehensive updating of regulations, updates the activities and technologies subject to specific authorization and DOE reporting requirements. 

15 Nov 2017, 82 FR 52823: miscellaneous corrections include correcting references, an address and a misspelling.

DOJ ATF ARMS IMPORT REGULATIONS: 27 CFR Part 447-Importation of Arms, Ammunition, and Implements of War. 
14 Mar 2019: 84 FR 9239: Bump-Stock-Type Devices.


29 Jul 2020: 85 FR 45513 Extension to Certain Temporary Suspensions, Modifications, and Exceptions due to Corona Virus.  The latest edition of the BITAR is 29 July 2020.  

DOT FOREIGN ASSETS CONTROL REGULATIONS (OFAC FACR): 31 CFR, Parts 500-599, Embargoes, Sanctions, Executive Orders

17 Jul 2020: 85 FR 43436: Nicaragua Sanctions Regulations. 


1 Jan 2019: 19 USC 1202 Annex.
  – HTS codes for AES are available here.
  – HTS codes that are not valid for AES are available here.

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