20-1202 Wednesday “Daily Bugle”

20-1202 Wednesday “Daily Bugle”

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Wednesday, 2 December 2020

  1. DOJ/ATF Requests Comments on Application and Permit for Temporary Importation of Firearms and Ammunition By Nonimmigrant Aliens
  1. Items Scheduled for Future Federal Register Edition
  2. Commerce/BIS: (No new postings)
  3. State/DDTC: “Reminder – How to Send Items to DDTC During the Covid Modified Operations”
  4. Australia: “Export Control Amendment (Miscellaneous Measures) Bill 2020”
  5. EEAS: “Operation IRINI – Statement by the Spokesperson on the Recent Inspection of a Turkish Vessel”
  6. EU Reconfirms the Authorization of the EU Military Operation IRINI in the Mediterranean
  7. UK ECJU Publishes 2019’s Strategic Export Controls Annual Report
  1. EUS: “EU Study on ‘Extraterritorial Sanctions’ & EU Responses”
  2. Global Risk Insights: “The Uncertain Future of the EU-Mercosur Trade Agreement”
  1. R/D Report: “ATF Releases Revised eForm 4473 Firearms Transaction Record”
  2. Thompson Hine: “OFAC Sanctions China National Electronics Import and Export Corporation (CEIEC)”
  1. FCC Academy Presents: 3 Dec; “U.S. Export Controls – The ABC of FMS”
  2. FD Associates Presents: “U.S. Canada Joint Certification Program (JCP)”
  1. New BITAR Update Available 
  2. Bartlett’s Unfamiliar Quotations 
  3. Are Your Copies of Regulations Up to Date? Find the Latest Amendments Here. 
  4. Weekly Highlights of the Daily Bugle Top Stories 
  5. Submit Your Job Opening and View All Job Openings 
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EXIM_a11. DOJ/ATF Requests Comments on Application and Permit for Temporary Importation of Firearms and Ammunition By Nonimmigrant Aliens

(Source: Federal Register, 2 Dec 2020) [Excerpts]
85 FR 77474: Notice
* AGENCY: Bureau of Alcohol, Tobacco, Firearms and Explosives, Department of Justice.
* ACTION: 60-Day notice.
* SUMMARY: The Department of Justice (DOJ), Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), will submit the following information collection request to the Office of Management and Budget (OMB) for review and approval in accordance with the Paperwork Reduction Act of 1995.
* DATES: Comments are encouraged and will be accepted for 60 days until February 1, 2021.
* FOR FURTHER INFORMATION CONTACT: If you have additional comments, regarding the estimated public burden or associated response time, suggestions, or need a copy of the proposed information collection instrument with instructions, or additional information, please contact: Desiree M. Dickinson, EPS/IMPORTS/FESD, either by mail at 244 Needy Road, Martinsburg, WV 25405, by email at desiree.dickinson@atf.gov, or by telephone at 304-616-4550.

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OGS_a23. Commerce/BIS: (No new postings)

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OGS_a34. State/DDTC: “Reminder – How to Send Items to DDTC During the Covid Modified Operations”
The Directorate of Defense Trade Controls (DDTC) continues its core mission activities across its Licensing, Compliance, Policy, and Management functions. However, staffing and other adjustments across the Department and interagency are being made in accordance with OPM and other guidance.
* Licensing: All electronic application systems are currently in normal operational mode, and new licenses continue to be accepted for processing. However, industry is advised of the likelihood of longer than normal processing times due to a reduction in the availability of staff in multiple organizations to review applications.
* Enrollment and Registration: Requests are still operating via the DECCS system and are being processed as they are submitted HERE.  
* Commodity Jurisdiction and General Correspondence Requests:  Continue to be processed, but responses may be delayed by this current operational environment.
* Disclosures: DDTC has a new option for industry to submit disclosures and related information pursuant to ITAR Section 127.12. Persons submitting a disclosure and/or related information (e.g., exhibits, extension requests, responses to DTCC inquires) are encouraged to send such information via email to DTCC-CaseStatus@state.gov. Please email material on company letterhead and in PDF format. It is not necessary to send a duplicate hardcopy to DTCC through the mail. In the event that a disclosure cannot be submitted via email, please use regular U.S. mail to send a hardcopy to DTCC following the normal submission process.
* Help Desk & Response Team:  Both the DDTC Help Desk (IT issues) and DDTC Response Team (forms, data processing, regulations) are running at full capacity HERE to address inquiries from industry.

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Amends the Export Control Act 2020 to: clarify the circumstances where a fit and proper person test is required for an application to vary a registration of an establishment, or to approve an alteration of an establishment; enable the rules to prescribe circumstances where the secretary may approve or refuse to approve a notice of intention to export prescribed goods; provide the secretary with the power to prescribe requirements in the rules for determining whether to issue or to refuse to issue an export permit; enable the rules to modify how certain provisions in the Act and the Administrative Appeals Tribunals Act 1975 apply to reviewable decisions for tariff rate quotas; and enable the rules to apply matters contained in any instrument of a foreign country that sets out, or provides a method for calculating, the tariff rate quota for the importation of a kind of goods into that country.
  For committee reference information, please see the Notes section at the end of this page.

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   On 22 November, the Operation EUNAVFOR MED IRINI inspected a Turkish-flagged merchant vessel in the Mediterranean. Given the pattern of navigation of this vessel, Operation IRINI had reasonable grounds to suspect that it could be acting in violation of the UN arms embargo.
   Prior to this action, as foreseen by the United Nations Security Council Resolution 2292 (2016), Operation IRINI had made good faith efforts to seek the consent of the flag State by giving the Turkish Ministry of Foreign Affairs a 4 hour notice in line with the international maritime practice. Operation IRINI even agreed to extend this notice by an additional hour at the request of the Turkish Embassy in Rome, where Operation IRINI’s Headquarters are located. Having received no answer from Turkey after the elapsed time, Operation IRINI boarded the vessel and inspected it in accordance with internationally agreed procedures including NATO procedures. Operation IRINI’s boarding team acted with the highest degree of professionalism and no incident was registered throughout the action.
   The inspection was suspended later on, when Turkey formally and with delay notified Operation IRINI of its refusal to grant the permission to inspect the vessel. Until then, the inspection had found no evidence of illicit material on board and the vessel was cleared to pursue its route.
   Operation EUNAVFOR MED IRINI is mandated by the European Union to contribute to the implementation of the arms embargo on Libya in accordance with the UN Security Council Resolutions 2292 (2016) and 2526 (2020).
These resolutions are binding for all UN Member States, including the Republic of Turkey. Furthermore, UN Security Council Resolution 2292 (2016) calls upon all flag States to cooperate with inspections. 
   Operation IRINI is a concrete contribution to international efforts to help to end the conflict in Libya. It has demonstrated its ability to monitor arms embargo violations on both sides of the conflict in Libya, and it reports accordingly to the UN Sanctions Committee.
   We are currently at a crucial juncture for Libya’s future and the implementation of the Berlin Process. Operation IRINI’s mandate is more important today than ever to ensure the viability of the 23 October ceasefire agreement and the return to peace and stability in Libya.

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Having regard to the Treaty on European Union, and in particular Article 38 thereof,
Having regard to Council Decision (CFSP) 2020/472 of 31 March 2020 on a European Union military operation in the Mediterranean (EUNAVFOR MED IRINI) (1), and in particular Article 8(3) thereof,
(1)    On 31 March 2020, the Council adopted Decision (CFSP) 2020/472, which established and launched a European Union military operation in the Mediterranean (EUNAVFOR MED IRINI)for the period until 31 March 2021.
(2)    Article 8(3) of Decision (CFSP) 2020/472 provides that, notwithstanding this period, the authorisation of the operation is to be reconfirmed every four months and that the Political and Security Committee is to prolong the operation unless the deployment of maritime assets of the operation produces a pull effect on migration on the basis of substantiated evidence gathered according to the criteria set out in the Operations Plan.
(3)    On 23 July 2020, the Political and Security Committee adopted Decision (CFSP) 2020/1104 (2), reconfirming the authorisation of the operation until 30 November 2020.
(4)    The Operation Commander has provided monthly pull factor reports.
(5)    The authorisation of the operation should be reconfirmed for the third four-month period of its mandate and the operation should be prolonged accordingly,

Article 1: The authorisation of EUNAVFOR MED IRINI is hereby reconfirmed and the operation is prolonged for the period from 1 December 2020y to 31 March 2021.
Article 2:  This Decision shall enter into force on the date of its adoption.
Done at Brussels, 26 November 2020.

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(Source: UK ECJU, 1 Dec 2020)
  This report gives a detailed overview of the UK’s Strategic Export Controls work in January to December 2019.
  Our annual report is normally published before the summer recess. This year, it was deferred due to the coronavirus (COVID-19) pandemic and prioritising the business-critical function of processing applications for strategic export licenses.
Get a copy here.

Back to top

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  At the request of the European Parliament Committee on International Trade, the EU Directorate General for External Policies of the EU has published a study on extraterritorial sanctions on trade and investments and European responses.
  The study says US sanctions directed against Iran, Cuba and Russia (Nord Stream 2) have become “a critical challenge for the EU” and that other international players, such as China, may also adopt such measures. It assesses the economic impact of these measures and suggests that the EU could:
  • Intensify “the coherent and joint voicing of the lack of legality of extraterritorial sanctions with third countries and institutions” because “consistent statements may have an impact on the political discourse in the US, send a strong signal to the international community and contribute to the urgently needed clarification of international law on the issue”;
  • Encourage and assist EU businesses in bringing claims in international investor-state arbitration and in US courts;
  • Invite Member States to bring inter-State disputes under bilateral treaties and complaints in the WTO;
  • Consider taking “unfriendly acts”, e.g. in relation to diplomatic/consular relations, or eventually countermeasures against “illicit sanctions”;
  • Consider using SWIFT to block transactions as a sanction or countermeasure (as a last resort in response to “grave violations of international law with important repercussions for the EU”);
  • Counter the effects of foreign sanctions by robust EU blocking legislation and enforcement by Member States, including by extending the Blocking Statute to cover US measures concerning Nord Stream 2;
  • “Improve INSTEX”‘
  • Promote the Euro to take a larger role in the international financial system; and
  • Establish an EU agency of Foreign Assets Control (EU-AFAC) to promote credibility and provide practical assistance to EU businesses.

(Source: Global Risk Insights, 1 Dec 2020) [Excerpts]

   The agreement would create the largest free-trade zone in the world, cut tariffs for many products, and simplify customs procedures. For the EU, this means more exports in spheres like machinery, automobiles and pharmaceuticals, while Mercosur countries would export more meat, poultry, sugar and other agricultural products to the European single market.
  The Mercosur countries make up a market of 260 million consumers for EU companies, with an annual GDP of €2.2 trillion. The free trade deal was struck at a time of unstable trade relations with the US, therefore it was praised by both sides as a commitment to rules-based trade in an era of protectionism.
Optimists hoped the ratification process would be concluded by the end of 2020.However, the process is just at its beginning. Ratification on the EU side requires the approval from all of the 27 member states and the European Parliament. 
  Several national parliaments, including the ones in Austria, the Netherlands, and Ireland, have voted against the deal. Luxembourg has refused to give its support, as did France and Italy. In a non-binding resolution from October 7th, the European Parliament has also stated its opposition to the agreement with Mercosur in its current form. 
What are the obstacles?
  Firstly, many farmers’ unions and lobbies across Europe are worried about the competition of cheaper South American products such as meat and cane sugar. Many national policymakers have supported those worries, which the Commission tried to address by preparing a €1 billion aid package for agri-food companies affected by the changes.
  Secondly, there are many concerns about the environmental impacts of the deal.Politicians and NGOs across Europe are worried about deforestation and fires in the Amazon, which are caused by human activity. Most of the rainforest is located in Brazil, where President Jair Bolsonaro and his cabinet are renowned for pursuing environmentally damaging policies.
  Given the EU’s goal of conducting a trade policy based on values such as sustainable development, importing more products that cause deforestation – such as soya beans or mining commodities – would be contradictory to EU values and its reputation at home and abroad.

Future scenarios
   It is unlikely that all EU member states would ratify the deal in its current form, especially in the short-term. 
  One option would be for governments to refuse ratification until satisfactory conditions are introduced, especially in terms of ensuring the enforceability of the sustainable development section. Environmental commitments from Mercosur could be monitored and reported by civil society, scientists or NGOs, for example.
  Another scenario would be to mandate the Commission to completely renegotiate the deal. This would be a difficult task, given that it took twenty years to reach the initial agreement. Moreover, the Mercosur countries would also have to agree to renegotiate. 
  There is also a risk that it is not ratified at all. But would this help the cause of limiting deforestation at all? Given that last year’s criticism has not changed the course of President Bolsonaro’s policies, a rejection of the accord would not help the case of environmental protection.
  Finally, even if the EU-Mercosur deal goes through, it is unclear whether the political tensions, especially between Macron and Bolsonaro, will allow the cooperation dialogue to be as strong as expected. Last year, Macron issued personal criticisms against Bolsonaro, stating that the latter “lied” about his commitment to biodiversity. Bolsonaro’s dismissal of the fires as a non-serious issue is adding fuel to the fire. This summer he stated that the Amazon cannot burn because it is a “humid” forest, adding that there is an “environmental sect” in Europe that is working against Brazilian agricultural commerce.
Overall, to benefit from the advantages of this agreement, both parties will need to find a compromise, especially over agriculture and climate change commitments. For the time being, the strong opposition and political tensions prevent any progress both for the deal’s implementation and for environmental protection.


Firearms Transaction Record

* Principal Author: Johanna Reeves, Esq., 1-202-715-9941, Reeves & Dola LLP
The Bureau of Alcohol, Tobacco, Firearms and Explosives announced today that the eForm 4473 (Form 5300.9) has been revised and is available for download. Pursuant to the Gun Control Act, the Form 4473 is required for “over-the-counter” firearm dispositions from a licensed manufacturer, importer, or dealer to a non-licensee.
ATF made the following revisions to the eform application:
  • Question 5: Caliber or Gauge – This field is now free text. The user may record “none” or “N/A” if/when appropriate.
  • Question 34: Transferor’s Name – This field is no longer required to be completed before the user can view and print the form. This question must be completed before the firearm is transferred.
  • Microsoft Edge – When utilizing a Windows Operating System, in order to properly view and print completed forms, the user must change their PDF default settings to Microsoft Edge. Instructions on how to change your default settings can be found on the application page at https://www.atf.gov/firearms/applications-eform-4473-download.
For those who do not utilize the eForm 4473, the fillable .pdf version of the form is available at ATF’s website.

COM_a212. Thompson Hine: “OFAC Sanctions China National Electronics Import and Export Corporation (CEIEC)”

(Source: SmarTrade, 1 Dec 2020)

* Author: Scott Diamond, 1-202-263-4197, Thompson Hine 
  On November 30, 2020, the Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned and placed on the Specially Designated Nationals (SDN) List China National Electronics Import and Export Corporation (CEIEC). The Treasury Department indicated in a press release that this designation was due to CEIEC’s support for “the illegitimate Maduro regime’s efforts to undermine democracy in Venezuela, including its efforts to restrict internet service and conduct digital surveillance and cyber operations against political opponents. Chinese technology companies, including CEIEC, continue to challenge democratic values of freedom and transparency by developing and exporting tools to monitor, censor, and surveil citizens’ activities on the internet.” A State Department press release added that “CEIEC has provided software, training, and technical expertise to the [Maduro] regime’s entities. It provides cyber support and technical experts to state-run telecommunications provider Venezuelan National Telephone Company (CANTV) which controls 70 percent of internet service in Venezuela and frequently blocks online independent newspapers and speeches by opposition members.”
  According to OFAC, CEIEC has over 200 subsidiaries and offices around the world. Thus, CEIEC’s designation on the SDN List could have far reaching implications with the application of OFAC’s “50% Rule,” which states that property of entities directly or indirectly owned 50% or more by one or more blocked persons are also considered blocked, even if not listed on the SDN List. As a result of CEIEC’s placement on the SDN List, all property and interests in property of CEIEC, or any entity in which it owns, directly or indirectly, a 50% or greater interest, that are in the United States or in the possession or control of U.S. persons must be blocked and reported to OFAC. In announcing this action, OFAC issued General License No. 38 under the Venezuela Sanctions Regulations, which authorizes until January 14, 2021 all transactions and activities otherwise prohibited that are ordinarily incident and necessary to the wind-down of transactions involving CEIEC. The license does not authorize “any debit to an account” of CEIEC or any entity that CEIEC owns by more than 50%. Entering into new business with CEIEC “will not be considered wind-down activity” according to OFAC pursuant to a newly posted frequently asked questions.


Thur, 3 Dec; 15:00 pm – 17:00 pm (CET) /09:00 am – 11:00 am (EST) /06:00 am – 08:00 am (PST)

Presenters: Mike Farrell & Jim Bartlett
Register or find more information for the course here
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* What:  Webinar “U.S. Canada Joint Certification Program (JCP)” — Agenda
* When:  Thursday 10 Dec; 1-2:15 PM
* Where:  Your computer 
* Sponsor:  FD Associates
* Presenters: Jenny Hahn, President, FD Associates & Keil Ritterpusch, Senior Compliance Associate.  * Register HERE, call 1-703-847-5801, or email info@fdassociates.net.
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EN_a615. New BITAR Update Available

(Source: Editor)

  Bartlett’s Annotated ITAR™ (the “BITAR”) contains the full text of the International Traffic in Arms Regulations, 22 C.F.R. §§ 120-130, with features added by the author, including a Table of Contents, nearly 1,000 footnotes, section histories, appendixes containing government guidance, user aides, and a huge 34-page Index. The text is the same as published in the latest official version, 22 C.F.R. §§ 120-130, with all amendments published in the Federal Register, but the official version contains no footnotes, appendixes, or index.  If you are not yet a BITAR subscriber, go HERE to subscribe.
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EN_a116. Bartlett’s Unfamiliar Quotations

(Source: Editor)

Russell Lynes (Joseph Russell Lynes, Jr.; 2 Dec 1910 – 14 Sep 1991; was an American art historian, photographer, author, and managing editor of Harper’s Magazine.
  – “If you can’t ignore an insult, top it; if you can’t top it, laugh it off; and if you can’t laugh it off, it’s probably deserved.”  
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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. 

18 Nov 2020: 
85 FR 73411:  Revisions to Export Enforcement Provisions. 

24 Apr 2018: 83 FR 17749: Foreign Trade Regulations (FTR): Kimberley Process Certificates.  The latest edition of the BAFTR is 
9 Nov 2020.

: 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.


28 Sep 2020: 85 FR 60874: Temporary Amendment for Republic of Cyprus. The latest edition of the BITAR is 1 Dec 2020. 

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