20-0827 Thursday “Daily Bugle”

20-0827 Thursday “Daily Bugle”

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Thursday, 27 August 2020

  1. Commerce/BIS Adds Entities and Revises Entries on the Entity List
  2. Commerce/BIS: “Identification and Review of Controls for Certain Foundational Technologies”
  3. Commerce/BIS Requests Comments on Import, End-User, Delivery Verification Certificates and Firearms Entry Clearance Requirements
  1. Items Scheduled for Future Federal Register Edition
  2. Commerce/BIS: (No new postings)
  3. State/DDTC Presents “DECCS Tips and Tricks Webinar”; 9 Sep
  1. Defense News: “Congress Has Secretly Blocked US Arms Sales to Turkey for Nearly Two Years”
  1. Bird & Bird: “UK – Trade and Customs Requirements after the End of the Brexit Transition Period”
  2. GTLaw: “Importers of PPE Beware”
  3. Thompson Hine: “Commerce and Treasury Departments Sanction Entities Supporting Iran’s Mahan Air”
  1. ECS Presents: 16-17 Sep; “3rd Annual ITAR/EAR Symposium and Managing ITAR/EAR Complexities”
  2. FCC Academy Presents 4 Webinars: U.S. Export Controls: ITAR & EAR | FMS | Designing and Implementing an ICP
  1. Bartlett’s Unfamiliar Quotations 
  2. How to Publish Your Article in the Daily Bugle 
  3. Are Your Copies of Regulations Up to Date? Find the Latest Amendments Here. 
  4. Weekly Highlights of the Daily Bugle Top Stories 
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(Source: Commerce/BIS, 27 Aug 2020) [Excerpts]
85 FR 52898: Rule
* AGENCY: Bureau of Industry and Security, Commerce.
* ACTION: Final rule.
* SUMMARY: In this rule, the Bureau of Industry and Security (BIS) amends the Export Administration Regulations (EAR) by adding sixty entities, under a total of sixty-one entries, to the Entity List. These sixty entities have been determined by the U.S. Government to be acting contrary to the national security or foreign policy interests of the United States. These entities will be listed on the Entity List under the destinations of the People’s Republic of China (China), France, Hong Kong, Indonesia, Malaysia, Oman, Pakistan, Russia, Switzerland and the United Arab Emirates (U.A.E.). This rule also revises five existing entries on the Entity list, one each under the destinations of Canada, Germany, Hong Kong, Iran, and the U.A.E.
* DATES: This rule is effective August 27, 2020.

* FOR FURTHER INFORMATION CONTACT: Chair, End-User Review Committee, Office of the Assistant Secretary, Export Administration, Bureau of Industry and Security, Department of Commerce, Phone: (202) 482-5991, Fax: (202) 482-3911, Email: ERC@bis.doc.gov.

 * * * * * * * * * * * * * * * * * * * *  

(Source: Federal Register, 27 Aug 2020) [Excerpts]
85 FR 52934: Proposed Rule
* AGENCY: Bureau of Industry and Security, Commerce.
* ACTION: Advance notice of proposed rulemaking (ANPRM).
* SUMMARY: The Bureau of Industry and Security (BIS) controls the export, reexport, and transfer (in-country) of dual-use and certain military items through the Export Administration Regulations (EAR), including the Commerce Control List (CCL). Many items (commodities, software, and technology) subject to the jurisdiction of the EAR are listed on the CCL. Pursuant to the Export Control Reform Act of 2018, BIS and its interagency partners are engaged in a process to identify emerging and foundational technologies that are essential to the national security of the United States. Foundational technologies essential to the national security are those that may warrant stricter controls if a present or potential application or capability of that technology poses a national security threat to the United States. In order to determine if technologies are foundational, BIS will evaluate specific items, including items currently subject only to anti-terrorism (AT) controls on the CCL or those designated as EAR99. This ANPRM seeks public comment on the definition of, and criteria for, identifying foundational technologies. Comments on this ANPRM will help inform the interagency process to identify and describe such foundational technologies.
* DATES: Submit comments on or before October 26, 2020.
* ADDRESSES: You may submit comments through either of the following:
Federal eRulemaking Portal: http://www.regulations.gov. The identification number for this rulemaking is BIS-2020-0029.
Address: By mail or delivery to Regulatory Policy Division, Bureau of Industry and Security, U.S. Department of Commerce, Room 2099B, 14th Street and Pennsylvania Avenue NW, Washington, DC 20230. Refer to RIN 0694-AH80.

 * * * * * * * * * * * * * * * * * * * *  

(Source: Federal Register, 27 Aug 2020) [Excerpts]
85 FR 52949: Notice
* AGENCY: Bureau of Industry and Security, Commerce.
* ACTION: Notice of Information Collection, request for comment.
* SUMMARY: The Department of Commerce, in accordance with the Paperwork Reduction Act of 1995 (PRA), invites the general public and other Federal agencies to comment on proposed, and continuing information collections, which helps us assess the impact of our information collection requirements and minimize the public’s reporting burden. The purpose of this notice is to allow for 60 days of public comment preceding submission of the collection to OMB.
* DATES: To ensure consideration, comments regarding this proposed information collection must be received on or before October 26, 2020.
* ADDRESSES: Interested persons are invited to submit comments by email to Mark Crace, IC Liaison, Bureau of Industry and Security, at mark.crace@bis.doc.gov or to PRAcomments@doc.gov. Please reference OMB Control Number 0694-0093 in the subject line of your comments. Do not submit Confidential Business Information or otherwise sensitive or protected information.
* FOR FURTHER INFORMATION CONTACT: Requests for additional information or specific questions related to collection activities should be directed to Mark Crace, IC Liaison, Bureau of Industry and Security, phone 202-482-8093, or by email at mark.crace@bis.doc.gov.

 * * * * * * * * * * * * * * * * * * * *  


(Source: Federal Register, 27 Aug 2020)
* Treasury/OFAC: NOTICES; Blocking or Unblocking of Persons and Properties [Pub. Date: 28 Aug 2020] (PDF) and (PDF)

 * * * * * * * * * * * * * * * * * * * *  

OGS_a25. Commerce/BIS: (No new postings)

 * * * * * * * * * * * * * * * * * * * *  

  Join DDTC’s CIO Karen Wrege and members from the Licensing team for our next DECCS Hot Topics webinar. In this session, we will focus on how to use the DECCS licensing application – including best practices and tips. We will review the best way to contact DDTC’s Response Team and Help Desk – and there will be time for Q&A at the end.
Topics to be discussed:
   – Accessing Licenses
   – Submitting and Signing a License 
   – Types of Licenses available in DECCS
   – Tips for easier submission, processing and License approval
   – Best ways to contact DDTC for support
Login Details:
Date: September 9th, 2020
Time: 2:00 pm – 3:00 pm EST
WebEx: Click Here
Important – If password is required when entering WebEx, type ‘census’.
Dial in for audio: 1- 800-857- 5152
Passcode: 4 2 2 9 7 0 5 #

* * * * * * * * * * * * * * * * * * * *  


  Four key members of Congress, either individually or collectively, have quietly frozen all major U.S. arms sales to Turkey for nearly two years in a move to pressure Ankara to abandon its Russian-built S-400 air defense system, Defense News has learned.
  The legislative action, which has not been previously reported, is another sign of the deeply fractured relationship between the two NATO allies, a disruption that has already led to Turkey’s expulsion from the F-35 joint strike fighter program.

  While it is unclear exactly how many potential sales have been held back, at least two significant deals are in limbo: a follow-on contract for F-16 structural upgrades and export licenses for U.S.-made engines that Turkey needs to complete a $1.5 billion sale of attack helicopters to Pakistan. Historically, the United States is the largest exporter of weapons to Turkey.

  When Congress holds up sales of major weapon systems like tanks, planes and ships, it is typically meant to rebuke a country’s specific military or political actions, such as when lawmakers attempted to block sales to Saudi Arabia and the United Arab Emirates in 2019. But freezing arms sales is a diplomatic tool that the United States hasn’t used against Turkey since 1978, after the Turkish military invaded Cyprus. …


(Source: Bird & Bird, Aug 2020)    
* Author: Richard Eccles, 44-(0)20-7415-6000, Bird & Bird
  The UK government published detailed guidance in July 2020 for traders on the trade and customs requirements to be fulfilled for trade between the UK and the EU following the end of the Brexit transition period on 31 December 2020.  At that point, the UK will cease to be a member of the EU Single Market and of the EU Customs Union, and trade between the UK and the EU will generally be subject to the same requirements as those for trade between the UK and the rest of the world.
  The government has also published policy papers, in August 2020, regarding trade between Great Britain and Northern Ireland having regard to the requirements of the Northern Ireland Protocol under the UK/EU Withdrawal Agreement.  Under the Protocol, the soft border between Northern Ireland and the Republic of Ireland will be maintained, but EU customs duty and VAT requirements must be fulfilled on transit from Great Britain to Northern Ireland in respect of any goods which are at risk of onward movement from Northern Ireland to the EU, i.e. in practice the Republic of Ireland.  The policy papers published by the UK government in August are the first step in the process of establishing the detailed requirements that will apply in relation to the Northern Ireland border.  The government is also setting up a Trader Support Service to assist traders in relation to the Northern Ireland border requirements. 
Trade Between the UK and the EU
  The requirements that traders must follow are set out in a detailed government “Border Operating Model”, The Border with the European Union – Importing and Exporting Goods which can be found here.
  As from 1 January 2021, customs declarations will be required in respect of both imports from the EU and exports to the EU, and customs duties will be payable on imports from the EU under the new UK Global Tariff.  For this purpose, importers will need to determine and state the origin, classification and customs value of the goods.  However, as regards imports from the EU, it will be possible to defer customs declarations on standard goods by up to six months and also to defer the payment of customs duties on such imports until the declarations are made.  Importers will also need to account for and pay VAT on goods imported from the EU.  Importers who are VAT-registered will be able to use postponed VAT accounting.  Importers who are not VAT-registered will have the same options to report and pay import VAT as they do for customs duty. 
  Safety and security declarations will be needed on exports and imports of goods between the UK and the EU.  These will be needed for exports from the UK to the EU as from 1 January 2021.  However, safety and security declarations on imports from the EU to the UK will only be required as from 1 July 2021.
  Customs declarations will in any event be required for controlled goods and excise goods (including alcohol and tobacco products).  There will be additional checks on all high risk live animals and plants (with a requirement to pre-notify for certain movements).  Products of animal origin, including meat, milk and egg products and all regulated plants and plant products will require pre-notification and health documentation as from April 2021.  However any physical checks will be conducted at the point of destination (rather than a border control post) until July 2021. 
  Some of the requirements foreseen in the government’s Border Operating Model could be removed or reduced in scope if a free trade agreement were concluded between the UK and the EU with effect from the end of the transition period, depending on its contents.  For example customs duties might be eliminated by such a free trade agreement, though insofar as they are merely reduced, the relevant arrangements on the Model will still apply.  In any event, the Border Operating Model does not apply to matters covered by the Northern Ireland Protocol (please see below).
  There are a number of steps that traders can take to prepare for compliance with these trade and customs requirements.  These are specified in the Border Operating Model and include the following:
  • Apply for an EORI (Economic Operator Registration and Identification) number;
  • Appoint a customs intermediary (such as a customs agent, a fast parcel operator, a freight forwarder or a broker) to carry out customs declarations and other formalities; and
  • Apply for a duty deferment account, to enable payment of customs duty, excess duty and import VAT by monthly direct debit instead of on individual consignments.
Trade between Great Britain and Northern Ireland
  Requirements concerning trade relating to the Northern Ireland border will remain subject to the decisions of the special committee of the UK/EU Joint Committee under the Withdrawal Agreement.  However, the UK government’s August 2020 policy papers are indicative of its proposals, reflecting the fact that Northern Ireland will remain part of the UK customs territory but that the government will need to respect the requirements of the Northern Ireland Protocol (under the UK/EU Withdrawal Agreement) concerning transit of products from the UK via Northern Ireland to the EU (in particular the Republic of Ireland).  The Withdrawal Agreement and the Northern Ireland Protocol will continue to apply even if no UK/EU free trade agreement is concluded.
The UK government’s August 2020 policy papers indicate the following:
  Trade from Northern Ireland to Great Britain: The UK government intends to ensure unfettered access for Northern Irish businesses to the rest of the UK internal market, so that trade from Northern Ireland to Great Britain continues as it does now, without any declarations, tariffs or new regulatory or customs checks.  This will apply to Northern Ireland businesses including businesses headquartered in Great Britain with operations in Northern Ireland.  Businesses in Ireland will need to follow the normal processes for importing goods into the UK, including the submission of customs declarations and payment of any import duties. 
  Trade from Great Britain to Northern Ireland: In accordance with the Northern Ireland Protocol, the UK authorities will apply EU customs rules to goods entering Northern Ireland to ensure that applicable EU tariffs are paid in respect of goods at risk of transiting to Ireland.  This will require new administrative processes including new electronic import declaration requirements and the provision of safety and security information, all of which are intended by the UK government to be streamlined and simplified to the maximum extent. 
Trade between Northern Ireland and the EU: There will be no change as regards the movement of goods between Northern Ireland and EU Member States taking into account Northern Ireland’s status under the Northern Ireland Protocol of being subject to EU customs rules and a wide range of EU Single Market rules as regards goods.  There will therefore be no new paperwork or tariff or quota requirements or rules of origin requirements within the EU Single Market as regards goods in free circulation in Northern Ireland.  As a result, Northern Ireland businesses will be able to trade freely within both the UK internal market and the EU Single Market.  This arrangement reflects the requirements of the Belfast Agreement (also known as the Good Friday Agreement), which are safeguarded by the Northern Ireland Protocol.
Trade between Northern Ireland and the rest of the world: There will broadly be no change to trading processes as between Northern Ireland and non-EU countries.  As Northern Ireland will continue to be part of the UK’s customs territory, Northern Ireland will benefit from future UK free trade agreements.  Tariffs will apply to goods imported from non-EU countries to Northern Ireland in accordance with the UK tariff regime, unless (where UK and EU tariffs differ) the goods are considered to be ‘at risk’ of moving into the EU.  The final regime in this respect will be determined by the UK/EU Joint Committee under the Northern Ireland Protocol.
  Under the Northern Ireland Protocol of the Withdrawal Agreement, Northern Ireland will continue to be subject to EU VAT legislation for goods, in order to avoid a hard border between Northern Ireland and Ireland.  The European Commission has proposed amendments to the VAT Directive 2006/112 to enable EU VAT provisions to be applied to goods in accordance with the Protocol requirements.  The aim is for these amendments to be adopted rapidly with an implementation date in line with the end of the transition period on 31 December 2020. 
  However, as regards services, Northern Ireland will be treated, along with the rest of the UK, as being outside the EU.  There will therefore be dual VAT systems in Northern Ireland, for goods and services respectively.

* Principal Author: Laura Siegel Rabinowitz, Esq., 1-212-801-9201, Greenberg Traurig LLP

  Importers of personal protective equipment (PPE) should be careful to classify imported merchandise correctly, be prepared for the possibility of additional tariffs on products manufactured in China, and correctly declare and mark products with the country of origin. Since the Coronavirus Disease 2019 (COVID-19) pandemic entered the United States in early 2020, companies have been rushing to import masks, face shields, disposable gowns, thermometers, hand sanitizer, and disinfecting wipes to meet the sudden increased demand. Large orders and importations continue as the virus persists across the country. Timeframes to meet orders are typically short and importers may be caught off guard concerning U.S. Customs and Border Protection (CBP) compliance.

  The Tariff Act of 1930 requires importers to use reasonable care to enter and classify imported merchandise. Importers must also take care to ensure they are using the most recent version of the U.S. Harmonized Tariff Schedule (HTS), and consider changes in nomenclature that can result in goods suddenly classified under new tariff provisions. For example, plastic face shields, as late as May 2020 were classified under Subheading 3926.90.9990 as “other articles of plastic.” More recently the International Trade Commission added a new provision, subheading 3926.90.9990 for “plastic face masks and shields.”
In addition, pursuant to Section 301 of the Trade Act of 1974 the Trump administration has imposed additional tariffs, at either 25% or 7.5% of the value of most products manufactured in China and imported into the United States. Following are related considerations for importers:
  • Confirm whether the merchandise is on a Section 301 list.
  • Determine if the imported products can take advantage of one of the many exclusions from these additional duties granted by the Office of the U.S. Trade Representative (USTR). These exclusions are based on tariff classifications, modified by specific product descriptions.
  • Note that all exclusions have an expiration date, unless the exclusion approval has been extended. To date, no exclusions extend beyond Dec. 31, 2020.
  • USTR has yet to release the list of products that will be subject to a specific exclusion for COVID-19-related products. The Section 301 situation for products from China is fluid and requires constant monitoring.
  • The country of origin of all imported products must be declared to CBP at entry, and all products of foreign origin must be properly marked with the country of origin (usually, but not always, the country of manufacture). Because of the additional tariffs for Chinese products, CBP is especially attuned to the potential for transshipment and carefully monitors shipments for misdeclaration or mismarked goods.
  • Finally, most PPE articles, in addition to complying with CBP import requirements, must also comply with U.S. Food and Drug Administration (FDA)-related regulatory requirements. Failure to fully comply with FDA regulations will result in the goods being denied entry into the United States.

  The Department of Commerce’s Bureau of Industry and Security (BIS) and the Treasury Department’s Office of Foreign Assets Control (OFAC) announced sanctions against several persons and entities determined to be supporting Iran’s Mahan Air in violation of U.S. sanctions toward Iran. According to both agencies, the involved companies have provided key parts and logistics services for Mahan Air, which was first sanctioned in March 2008 for providing support to Iran’s Islamic Revolutionary Guard Corps-Qods Force (IRGC-QF) and has subsequently been found to provide transportation for other illicit purposes.
OFAC Designations
  On August 19, 2020, OFAC designated UAE-based Parthia Cargo and Delta Parts Supply FZC for their “material support” of Mahan Air, while also designating Iranian national Amin Mahdavi for owning or controlling Parthia Cargo. According to an OFAC press release, “[t]he services provided by Parthia Cargo and Delta Parts Supply FZC help Mahan Air sustain its fleet of western-manufactured aircraft and allow it to support the Iranian regime’s destabilizing

agenda through activities that include the transportation of terrorists and lethal cargo to Syria to prop up the murderous Assad regime, as well as the more recent transportation of Iranian technicians and technical equipment to Venezuela to support the illegitimate Maduro regime’s efforts to revive energy production ruined by corruption and mismanagement.”

  As a result of this action, these entities and have been placed on OFAC’s Specially Designated Nationals (SDN) List and all property and interests in property of these entities/person that are in the United States or in the possession or control of U.S. persons must be blocked and reported to OFAC. Further, any foreign financial institution that knowingly facilitates a significant financial transaction or provides significant financial services for these persons could be subject to U.S. correspondent account sanctions or payable-through account sanctions.

BIS Temporary Denial Order
  On August 21, 2020, BIS issued a Temporary Denial Order (TDO) against six parties in Indonesia for operating an international procurement network of aircraft parts suppliers and repair facilities to acquire and repair U.S.-origin goods for Mahan Air. Named in the TDO are: (1) Sunarko Kuntjoro, (2) Satrio Wihargo Sasmito, (3) Triadi Senna Kuntjoro, (4) PT MS Aero Support, (5) PT Antasena Kreasi, and (6) PT Kandiyasa Energi Utama. BIS has determined that each has been involved “in operating an international procurement scheme to illegally obtain and repair U.S.-origin aircraft parts on behalf of Mahan Air and Mustafa Oveici (Oveici), an Iranian executive for Mahan Air.”

  Under the TDO, each person and entity has been denied export privileges to prevent an imminent or ongoing export control violation. The TDOs are issued for a renewable 180-day period and prohibit persons from exporting or reexporting any item subject to the Export Administration Regulations (EAR) to or on behalf of the denied person. It also prohibits the denied person from themselves dealing in items subject to the EAR, and prohibits the denied persons from negotiating, storing, forwarding, or engaging in other dealings related to items subject to the EAR.


* What: 3rd Annual ITAR/EAR Symposium and Managing ITAR/EAR Complexities 2-Day Webinar
* When: 16-17 Sep
* Where: Your Computer
* Sponsor: Export Compliance Solutions & Consulting (ECS)
* ECS and Guest Speakers: Suzanne Palmer, Mal Zerden, Lisa Bencivenga, Debi Davis, Scott Jackson
* Register: here or write to liz@exportcompliancesolutions.com or call 1-866-238-4018

* * * * * * * * * * * * * * * * * * * *

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
* * * * * * * * * * * * * * * * * * * *


EN_a113. Bartlett’s Unfamiliar Quotations

(Source: Editor)

* Samuel Adams (27 Sep 1722 – 2 Oct 1803; was an American statesman, political philosopher, and one of the Founding Fathers of the United States. He was a politician in colonial Massachusetts, a leader of the movement that became the American Revolution, and one of the architects of the principles of American republicanism that shaped the political culture of the United States. He was a second cousin to his fellow Founding Father, President John Adams.)

 – “The Constitution shall never be construed to prevent the people of the United States who are peaceable citizens from keeping their own arms.”
  – “It does not take a majority to prevail but rather an irate, tireless minority, keen on setting brushfires of freedom in the minds of men.”
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(Source: Jim Bartlett, Daily Bugle Editor)
  Your analysis and commentary on a current trade issue can generate new clients from among the Daily Bugle’s subscribers (over 10,000 world-wide). We receive far more articles every day from law firms and consultants than we can publish, but if you would like have your article published, please contact Jim Bartlett at 1-202-802-0646 or JEBartlett@JEBartlett.com.
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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. 
27 Aug 2020: 85 FR 52898Additions of Entities to the Entity List and Revisions of entries 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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