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 8,000 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, Salvatore Di Misa, and Elina Tsapouri.
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:
- DHS/CBP Publishes ITAR Exemption Update; The Daily Bugle; Monday, 6 April 2020; Item #6.
- Japan METI Publishes Deregulatory Measures in Import and Export Procedures as a Response to COVID-19; The Daily Bugle; Monday, 6 April 2020; Item #10.
- UK DIT Offers Support to Exporters and Investors; The Daily Bugle; Tuesday, 7 April 2020; Item #5.
- EU Council Decision (CFSP) 2020/512 Implements Restrictive Measures in Iran; The Daily Bugle; Wednesday, 8 April 2020; Item #6.
- Treasury/OFAC Amends North Korea Sanctions Regulations; The Daily Bugle; Friday, 10 April 2020; Item #3.
DHS/CBP Publishes ITAR Exemption Udate
In response to the attached Federal Register Notice (FRN)/ Vol 85, No. 15/ Thursday, January 23, 2020/ Rules and Regulations, the following exemptions have been removed from the International Traffic in Arms Regulations (ITAR) and removed from the Automated Export System Trade Interface Requirements (AESTIR) Appendix O:
22 CFR 123.17 (a) (1) Components and parts for Category I (a) firearms not exceeding $100 wholesale.
22 CFR 123.17 (a) (2) Components and parts for Category I firearms not exceeding $500 wholesale to Canada.
22 CFR 123.17 (a) (3) Components and parts for Category I firearms not exceeding $500 wholesale to Canadian Government.
22 CFR 123.17 (b) Non-automatic Category I (a) firearms manufactured in or before 1898 or replica.
22 CFR 123.17 (c) Temporary export of no more than three non-automatic Category I (a) firearms and no more than 1,000 cartridges.
22 CFR 123.17 (d) Firearms for foreign persons brought in under 27 CFR 178.115 (d).
22 CFR 123.17 (e) Not more than 1,000 cartridges of ammunition for non-automatic firearms for personal use.
22 CFR 123.18 (a) (1) Non-automatic firearms for servicemen’s clubs for members of U.S. Armed Forces.
22 CFR 123.18 (a) (2) Non-automatic firearms for personal use by member of U.S. Armed Forces or civilian employee of Department of Defense.
22 CFR 123.18 (a) (3) Non-automatic firearms for personal use by U.S. Government employees.
22 CFR 123.18 (b) Not more than 1,000 cartridges of ammunition for personal use by U.S. Government employees.
85 FR3819 State Cat I-III firearms rule 1-23-20 and effective 3-9-20
Japan METI Publishes Deregulatory Measures in Import and Export Procedures as a Response to COVID-19
(Source: METI, 5 Apr 2020)
In response to expected delays and other disruptions in imports and exports as a result of the coronavirus disease 2019 (COVID-19) the Ministry of Economy, Trade and Industry (METI) has summarized trade control related procedural notifications, including some new special treatments. Please be mindful of underlined parts for changes from our previous release on February 14, 2020, including extensions in some special treatments.
In addition, METI kindly requests licensing applicants to take advantage of mail or electronic applications as much as possible. Please contact the Trade Control Department or regional offices for further details.
Note: Underlined parts represent changes from the previous press release published on February 14, 2020 titled “Relaxation of Import and Export Procedures and other Treatment as Responses to the Novel Coronavirus Epidemic.”
(1) In cases where expiration of import license is imminent (Foreign Exchange and Foreign Trade Act)
Importers are expected to apply for extension of their import license BEFORE IT ACTUALLY EXPIRES in case such license is set to expire due to delays or other disruptions as a result of the coronavirus disease 2019 (COVID-19).
(1) For applicants having difficulty in obtaining documents demonstrating necessity of license extensions, METI will alternatively accept an importer’s written self-statement explaining [i] detailed background of such necessity for extension and [ii] difficulty in obtaining such documents until June 30, 2020.
(2) For further procedural details, please refer to “Validity Period of Import Approval and Procedures for Extending the Period and Other Purposes” (Precaution for Imports 10, No.49, on May 15, 1998).
It should be noted that expired import licenses are no longer extendable and subject to re-application. Also, please note that METI cannot extend the validity periods of foreign-issued certificates such as the CITES Export Permits and the Kimberley Process Certificates.
(2) In cases where expiration of a tariff quota certificate (leather and/or leather shoes) is imminent (Interim Measures Act on Tariffs)
Importers are expected to apply for a 30-day extension of their tariff quota certificate (FY2019) BEFORE IT EXPIRES (i.e. March 31, 2020) in case such license is set to expire due to delays or other disruptions as a result of the coronavirus disease 2019 (COVID-19).
(1) Importers cannot apply for extension after April 1, 2020.
(2) For applicants having difficulty in obtaining documents demonstrating difficulties in completing customs clearance (e.g. an exporter’s communication document notifying a delay in shipment of goods, which clearly states the estimated date of arrival in Japan), METI will alternatively accept an importer’s written self-statement explaining [i] detailed background of such necessity for extension and [ii] difficulty in obtaining such documents.
(3) For further procedural details, please refer to Appendix 1 and the document “Request for Tariff Quota and Approaches to Handling Tariff Quota Certificate and Other Information for FY2019” (Precaution for Tariff Quota No.2; 20190204 Bou; No.6, on March 8, 2019).
(1) In cases where expiration of export license is imminent (Foreign Exchange and Foreign Trade Act)
Exporters are expected to apply for extension of their export license BEFORE IT ACTUALLY EXPIRES in case such license is set to expire due to delays or other disruptions as a result of the coronavirus disease 2019 (COVID-19).
(1) For further procedural details, see the document “Operation of the Export Trade Control Order” (Precaution for Exports 62, No.11, on November 6, 1987).
It should be noted that expired import licenses are no longer extendable and subject to re-application. In addition, please note that validity periods of the CITES Export Permit, the Kimberley Process Certificates, and the Certificates of Origin are not extendable.
(2) In cases where the conditions set in the export license are not fulfillable before the deadline (Foreign Exchange and Foreign Trade Act)
Deadlines of conditions set in the export license, for all destinations, (e.g. reports for installation of machine tools) are automatically extended until June 30, 2020. While application for such extensions are not required, exporters are requested to fulfill the conditions as soon as possible if such conditions become fulfillable even before the new deadline.
The specific dates for the special treatments may be subject to further extension if necessary.
Revision of related notices
On March 5, 2020, METI established the provisions for partial revision of the Measures on Trade Control as Responses to Coronavirus Disease 2019 (COVID-19) (Precaution for Exports 2020, No.3; Precaution for Imports 2020, No.1; and Precaution for Tariff Quota No.3, which are all dated February 14, 2020). For details, visit the following websites.
Website for trade control (in Japanese)
Website for security and trade control
UK DIT Offers Support to Exporters and Investors
(Source: UK ECJU, 6 Apr 2020) [Excerpts]
The Department for International Trade outlines support available to 160,000 exporters and international investors.
- 160,000 exporters and investors trading internationally reached by government with outline of support on offer.
- UK businesses now eligible to secure export insurance cover to major international markets.
Guidance on how to help secure export finance to keep trading during the coronavirus outbreak has been set out by government in direct communication to 160,000 exporters and investors Today (Monday 6 April).
As well as advice on what financial support is available for companies to manage the impacts of coronavirus, DIT stands ready to provide assistance with customs authorities to ensure smooth clearance of businesses’ products, and to offer advice on intellectual property and other issues with business continuity.
The message follows the news that UK businesses will now be eligible to secure export insurance cover to markets including the EU, US, Japan, Australia, New Zealand, Canada, Iceland, Norway and Switzerland with immediate effect, following UK Export Finance expanding the scope of its Export Insurance Policy (EXIP). Exports from the UK to these markets totalled £499 billion last year, accounting for 74% of all international sales from the UK. …
Businesses are being encouraged to:
- Visit theBusiness Support website for more information about measures and support available to their business.
- Pay particular attention to theguidance for employees employers and businesses which is being updated regularly with the latest advice.
- Read the guidance forUK businesses trading internationally.
- Takesteps to protect themselves and others.
EU Council Decision (CFSP) 2020/512 Implements Restrictive Measures in Iran
(Source: Official Journal of the European Union, 7 Apr 2020) [Excerpts]
The Council of the European Union, having regard to the Treaty on European Union, and in particular Article 29 thereof, having regard to the proposal of the High Representative of the Union for Foreign Affairs and Security Policy, whereas:
(1) On 12 April 2011, the Council adopted Decision 2011/235/CFSP
(2) On the basis of a review of Decision 2011/235/CFSP, the Council considers that the restrictive measures set out therein should be renewed until 13 April 2021.
(3) The Council has also concluded that the entries concerning 82 persons included in the Annex to Decision 2011/235/CFSP should be updated.
(4) Decision 2011/235/CFSP should therefore be amended accordingly,
HAS ADOPTED THIS DECISION:
Decision 2011/235/CFSP is amended as follows:
(1) in Article 6, paragraph 2 is replaced by the following:
This Decision shall apply until 13 April 2021. It shall be kept under constant review. It shall be renewed, or amended as appropriate, if the Council deems that its objectives have not been met.’;
(2) the Annex is amended as set out in the Annex to this Decision.
This Decision shall enter into force on the date of its publication in the Official Journal of the European Union.
Treasury/OFAC Amends North Korea Sanctions Regulations
(Source: Federal Register, 10 Apr 2020) [Excerpts]
85 FR 20158: Final rule.
* AGENCY: Office of Foreign Assets Control, Treasury.
* ACTION: Final rule.
* SUMMARY: The Department of the Treasury’s Office of Foreign Assets Control (OFAC) is amending the North Korea Sanctions Regulations to implement the Treasury-administered provisions of the North Korea Sanctions and Policy Enhancement Act of 2016, as amended by the Countering America’s Adversaries Through Sanctions Act and the National Defense Authorization Act for Fiscal Year 2020. Specifically, OFAC is incorporating blocking and correspondent account sanctions provisions,
adding a new prohibition that is applicable for persons that are owned or controlled by a U.S. financial institution and established or maintained outside the United States, adding new statutory exemptions relevant to certain newly added prohibitions, making technical and conforming edits to three definitions, revising an interpretive provision, and updating the authorities and delegation sections of the regulations. OFAC is also amending the definition of luxury goods.
* DATES: This rule is effective April 10, 2020.
* FOR FURTHER INFORMATION …