The Daily Bugle Weekly Highlights: Week 1 (30 Dec 2019 – 3 Jan 2020)

Every Monday we post the highlights out of last week’s FCC Export/Import Daily Update (“The Daily Bugle”). Send out every business day to approximately 7,500 readers of changes to defense and high-tech trade laws and regulations, The Daily Bugle is a free daily newsletter from Full Circle Compliance, edited by James E. Bartlett III, and Alexander Witt.

We check the following sources daily: Federal Register, Congressional Record, Commerce/AES, Commerce/BIS, DHS/CBP, DOE/NRC, DOJ/ATF, DoD/DSS, DoD/DTSA, FAR/DFARS, State/DDTC, Treasury/OFAC, White House, and similar websites of Australia, Canada, U.K., and other countries and international organizations.  Due to space limitations, we do not post Arms Sales notifications, Denied Party listings, or Customs AD/CVD items. To subscribe, click here.

Last week’s highlights of The Daily Bugle included in this edition are:

1. EU Commission Updates Dual-Use Goods List and Amends Community General Licenses; The Daily Bugle; Monday, 30 December; Item #5.
2. DoD/DSCA: Policy Change to Identify Missile Defense Agency as the Implementing Agency for stand-alone Cross Domain Solution FMS Cases; The Daily Bugle; Tuesday, 31 December 2019; Item #5.
3. Justice/ATF: Commerce in Explosives; 2019 Annual List of Explosive Materials; The Daily Bugle; Thursday, 2 January 2020; Item #1.
4. Commerce Adjusts Civil Monetary Penalties for Inflation; The Daily Bugle; Friday, 3 January 2020; Item #1.
5. Hong Kong TID Updates of Interest: “Air Transhipment Cargo Exemption Scheme for Specified Strategic Commodities (SCTREX)”; The Daily Bugle; Friday, 3 January 2020; Item #6.

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1. EU Commission Updates Dual-Use Goods List and Amends Community General Licenses

(Source: Official Journal of the European Union, 30 Dec 2019)

Commission Delegated Regulation (EU) 2019/2199 of 17 October 2019 amending Council Regulation (EC) No 428/2009 setting up a Community regime for the control of exports, transfer, brokering and transit of dual-use items.

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2. DoD/DSCA: Policy Change to Identify Missile Defense Agency as the Implementing Agency for stand-alone Cross Domain Solution FMS Cases

(Source: DoD/DSCA)

DSCA Policy Memo 19-13 Policy Change to Identify Missile Defense Agency as the Implementing Agency for stand-alone Cross Domain Solution FMS Cases has been posted.

This memorandum updates Figure C5.T2., of the Security Assistance Management Manual (SAMM) to provide additional guidance on developing Letters of Offer and Acceptance (LOAs) that include the transfer of stand-alone Cross Domain Solution (CDS) devices and support. Such CDS devices are intended to protect U.S. Classified Military Information (CMI) that will exist on partner nations’ network architectures as a result of a transfer of U.S. sensors or weapons systems to a Foreign Military Sales (FMS) partner.

This memo revises Table C5.T2. IA’s Authorized to Receive Letters of Request (LORs)

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3. Justice/ATF: Commerce in Explosives; 2019 Annual List of Explosive Materials

(Source: 85 FR 128) [Excerpts.]

* Agency: Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); Department of Justice.

* Action: Notice of list of Explosive Materials.

* Summary: This notice publishes the 2019 List of Explosive Materials, as required by law. The 2019 list is the same as the 2018 list published by ATF, except that the 2019 list adds four explosives not previously listed.

* Dates: The list is effective January 2, 2020.

* FOR FURTHER INFORMATION CONTACT: Krissy Carlson, Chief; Firearms and Explosives Industry Division; Bureau of Alcohol, Tobacco, Firearms, and Explosives; United States Department of Justice; 99 New York Avenue NE, Washington, DC 20226; (202) 648-7120.

* SUPPLEMENTARY INFORMATION:  Pursuant to 18 U.S.C. 841(d) and 27 CFR 555.23, the Department of Justice must publish and revise at least annually in the Federal Register a list of explosives determined to be within the coverage of 18 U.S.C. 841 et seq. The list covers not only explosives, but also blasting agents and detonators, all of which are defined as “explosive materials” in 18 U.S.C. 841(c).  . . .

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4. Commerce Adjusts Civil Monetary Penalties for Inflation

(Source: Federal Register, 3 Dec 2019.) [Excerpts.]

FR 85 207-210: Civil Monetary Penalty Adjustments for Inflation

* AGENCY: Office of the Chief Financial Officer and Assistant Secretary for Administration, Department of Commerce.

* ACTION: Final rule.

* SUMMARY: This final rule is being issued to adjust for inflation each civil monetary penalty (CMP) provided by law within the jurisdiction of the United States Department of Commerce (Department of Commerce). The Federal Civil Penalties Inflation Adjustment Act of 1990, as amended by the Debt Collection Improvement Act of 1996 and the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, required the head of each agency to adjust for inflation its CMP levels in effect as of November 2, 2015, under a revised methodology that was effective for 2016 which provided for initial catch up adjustments for inflation in 2016, and requires adjustments for inflation to CMPs under a revised methodology for each year thereafter. The 2019 adjustments for inflation to CMPs to the Department of Commerce’s CMPs were published in the Federal Register on February 7, 2019, and became effective March 1, 2019. The annual methodology provides for the improvement of the effectiveness of CMPs and to maintain their deterrent effect. Agencies’ annual adjustments for inflation to CMPs shall take effect not later than January 15. The Department of Commerce’s 2020 adjustments for inflation to CMPs apply only to CMPs with a dollar amount, and will not apply to CMPs written as functions of violations. The Department of Commerce’s 2020 adjustments for inflation to CMPs apply only to those CMPs, including those whose associated violation predated such adjustment, which are assessed by the Department of Commerce after the effective date of the new CMP level.

* DATES: This rule is effective January 15, 2020. …

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5. Hong Kong TID Updates of Interest: “Air Transhipment Cargo Exemption Scheme for Specified Strategic Commodities (SCTREX)”

(Source: Hong Kong Trade and Industry Department, 2 Jan 2020.) [Excerpts.]

The Trade and Industry Department (TID) of Hong Kong has released the following document(s) on its website:

Circulars

* Strategic Trade Controls Circular No. 1/2020 Air Transhipment Cargo Exemption Scheme for Specified Strategic Commodities (SCTREX): List of Valid Registrants (as at 1 January 2020)

Introduction

(1) The Trade and Industry Department implements the Air Transhipment Cargo Exemption Scheme for Specified Strategic Commodities (SCTREX) (referred below as “the Scheme”) to facilitate the air transhipment of specified strategic commodities through Hong Kong.  Registrants under the Scheme are, subject to certain conditions, exempted from licensing requirements under the Import and Export Ordinance (Cap. 60) and the Import and Export (Strategic Commodities) Regulations (Cap. 60G) (referred below as “the Regulations”) in respect of air transhipment cargo of specified strategic commodities.

Scope of Exemption

(2) The Scheme applies to airlines, ground handling agents and freight forwarders successfully registered and granted with a Certificate of Exemption by the Director-General of Trade and Industry.(3) The Scheme covers specified strategic commodities listed in Schedule 1 to the Regulations, except products listed in Schedule 2, which are air transhipment cargo handled by registrants under the Scheme and remain within the confines of the cargo transhipment area of the Hong Kong International Airport pending onward flights.  The licensing requirements for the import and export of strategic commodities specified in Schedule 1 that are not on the air-to-air transhipment mode and those in Schedules 2, 3 and 4 of the Regulations are not affected by the Scheme.  Transhipment of strategic commodities not granted exemption under the Scheme must be covered by valid import and export licence. ..