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 8,500 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, 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:
- State/DDTC Updates Notice on COVID Measures; The Daily Bugle; Monday, 4 May 2020; Item #6.
- State/DDTC: “ITAR–Temporary Reduction in Certain Registration Fees”; The Daily Bugle;Wednesday, 6 May 2020; Item #1.
- Canada TID Updates Notice to Exporters – Requirements for Exporting Prohibited Firearms; The Daily Bugle; Wednesday, 6 May 2020; Item #6.
- EU Commission Amends EU 2019/125 Concerning Trade in Certain Goods Could Be Used for Capital Punishment, Torture or Other Degrading Treatment or Punishment; Thursday, 7 May 2020; Item #6.
- DHS/CBP: “FDA Document Submission During COVID-19 Pandemic”; The Daily Bugle; Friday, 8 May 2020; Item #4.
State/DDTC Updates Notice on COVID Measures
(Source: State/DDTC, 1 May 2020)
Given the extraordinary impact of the COVID-19 pandemic on the national economy and Defense Industrial Base, the Directorate of Defense Trade Controls (DDTC) is temporarily reducing registration fees for DDTC registrants in Tier I and Tier II to $500 for registrations whose original expiration date is between May 31, 2020 and April 30, 2021. Also, DDTC is reducing registration fees to $500 for new applicants who submit their registration application between May 1, 2020 and April 30, 2021. All new registrants are in Tier I in the first year. This will allow new registrants and existing registrants in Tiers I and II, many of which are small and medium-sized enterprises, to receive a reduced registration fee over the course of the coming year. The fee structure for Tier III entities remains unchanged at this time. We anticipate that this temporary reduction in fees for Tier I, Tier II, and new registrants will save regulated industry over $20 million over the course of the coming year.
This temporary reduction in fees shall apply only through April 30, 2021, at which time fees for entities in Tiers I and II will return to the rates that were in effect on April 1, 2020 unless otherwise extended by a subsequent notice in the Federal Register.
State/DDTC: “ITAR–Temporary Reduction in Certain Registration Fees”
(Source: Federal Register, 6 May 2020) [Excerpts]
85 FR 26847: Rule.
* AGENCY: Department of State.
* ACTION: Temporary reduction in certain fees.
* SUMMARY: The Department of State is making a temporary change in the Tier I and Tier II and new registrant payment guidelines on the Directorate of Defense Trade Controls (DDTC) website at www.pmddtc.state.gov.
These guidelines outline the registration fees charged to persons who engage in the United States in the business of manufacturing, exporting, or temporarily importing defense articles, furnishing defense services, or who engage in brokering activities pursuant to the International Traffic in Arms Regulations (ITAR). …
* DATES: The temporary reduction in fees was effective May 1, 2020, and shall expire on April 30, 2021, unless modified by a subsequent notification in the Federal Register.
* FOR FURTHER INFORMATION CONTACT: Neal Kringel, Office of Defense Trade Controls Management, U.S. Department of State, telephone (202) 663-1282, or email DDTCResponseTeam@state.gov. ATTN: Temporary Fee Reduction.
Canada TID Updates Notice to Exporters – Requirements for Exporting Prohibited Firearms
(Source: Canada TID, 1 May 2020)
(1) The purpose of this Notice is to advise exporters of export controls implications flowing from the announcement by the Prime Minister that a number of firearms are now considered “prohibited firearms” as defined in subsection 84(1) of the Criminal Code. As per the Prime Minister’s announcement, all firearms that have been prohibited effective May 1st under the Regulations Amending the Regulations Prescribing Certain Firearms and Other Weapons, Components and Parts of Weapons, Accessories, Cartridge Magazines, Ammunition and Projectiles as Prohibited, Restricted or Non-Restricted:
- are captured under section 4.1 of the EIPA and are eligible for export only to those destinations listed on the Automatic Firearms Country Control List (AFCCL), and;
- require an individual export permit. This also applies to the export of parts related to these firearms.
(2) Items controlled under the AFCCL are enumerated in section 4.1 of the Export and Import Permits Act (EIPA). These items include, but are not limited to, cartridge magazines that are prohibited devices, full-automatic firearms or firearms that have been prescribed to be prohibited firearms, and any components or parts of such firearms that are specially designed for them.
(3) The Minister of Foreign Affairs maintains the authority to exercise discretion on a case-by-case basis over permit applications, which are approved only when the Minister is satisfied that such exports would be consistent with his legal obligations as well as Canada’s foreign, defence and security policies.
(4) Prohibited firearms and their specially designed components or parts, including the firearms newly prohibited, may only be exported to countries listed on the AFCCL. …
The export of prohibited firearms to non-Automatic Firearms Country Control List destinations is not permitted, regardless of whether the exporter possesses an export permit issued prior the reclassification of that firearm.
(5) The Export and Brokering Controls Handbook explains the requirements of the export process, and also lists controls administered by other government departments. Concerning firearms, sections D.2. Automatic firearms country control list and J. Applications to export firearms, related goods, and ammunition of the Handbook are of particular interest.
(6) Exporters must prepare and submit the appropriate export permit application(s) for controlled goods, including prohibited firearms, their components or parts, and any accessories, that are proposed for export. For a step-by-step description of how to apply for an Export Permit for Firearms, Related Goods and Ammunition, please consult this website.
(7) Please note that we are currently facing permit processing delays. Exporters are advised to submit their applications four to five months in advance of the time they wish to export.
(8) This Notice has been prepared for guidance and convenience of reference only. Global Affairs Canada does not provide legal advice on the foregoing. For all purposes of interpreting and applying the law, readers should consult the Export and Import Permits Act and its associated regulations. These publications are available online.
EU Commission Amends EU 2019/125 Concerning Trade in Certain Goods Could Be Used for Capital Punishment, Torture or Other Degrading Treatment or Punishment
(Source: Official Journal of the European Union, 7 May 2020)
THE EUROPEAN COMMISSION, Having regard to the Treaty on the Functioning of the European Union,
Having regard to Regulation (EU) 2019/125 of the European Parliament and of the Council of 16 January 2019 concerning trade in certain goods which could be used for capital punishment, torture or other cruel, inhuman or degrading treatment or punishment (1), and in particular the first paragraph of Article 24 thereof,
(1) The competent authorities of the Member States are listed in Annex I to Regulation (EU) 2019/125. Belgium, Ireland, France, Croatia, Italy, Hungary, the Netherlands, Austria, Poland, Romania, Slovakia and the United Kingdom have informed the Commission that the entries concerning their competent authorities should be amended. The address for notifications to the Commission also needs to be amended.
(2) Pursuant to Articles 16 and 19 of Regulation (EU) 2019/125 an authorisation is required for exporting certain goods that could be used for the purpose of capital punishment and for brokering services or technical assistance related to such goods, which are listed in Annex IV to that Regulation.
(3) A Union General Export Authorisation, set out in Annex V to Regulation (EU) 2019/125, applies to exports to countries that have abolished capital punishment for all crimes and confirmed that abolition through an international commitment (2), if they meet the conditions and requirements for using that authorisation. Part 2 of Annex V lists the relevant countries.
(4) As regards countries that are not members of the Council of Europe, the list in Part 2 of Annex V to Regulation (EU) 2019/125 comprises those countries that have not only abolished capital punishment for all crimes but also ratified the Second Optional Protocol to the International Covenant on Civil and Political Rights (3) without making a reservation.
(5) Following their ratifications of that Protocol without making a reservation, Gambia and Madagascar meet the conditions for inclusion in the list laid down in Annex V to Regulation (EU) 2019/125.
(6) As regards the entry ‘Former Yugoslav Republic of Macedonia’, on 15 February 2019 the European Union was formally notified about the entry into force of the Prespa Agreement (4), which establishes ‘Republic of North Macedonia’ as the full name and ‘North Macedonia’ as the short name of the country (Article 1.3.a.). It is appropriate to reflect this change of name and move the relevant entry to the appropriate place in the list.
(7) Annexes I and V to Regulation (EU) 2019/125 should therefore be amended accordingly,
HAS ADOPTED THIS REGULATION:
Annexes I and V to Regulation (EU) 2019/125 are amended in accordance with the Annex to this Regulation
This Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.
This Regulation shall be binding in its entirety and directly applicable in all Member States.
Done at Brussels, 18 February 2020.
DHS/CBP: “FDA Document Submission During COVID-19 Pandemic”
(Source: DHS/CBP, 8 May 2020)
The Food and Drug Administration (FDA) continues critical work to protect public health during the COVID-19 pandemic. This work includes review of FDA regulated products offered for importation. If a request for documents is received from FDA, filers and/or importers are strongly encouraged to submit product labeling along with regularly submitted entry documents (commercial invoice, packing list, way bill, etc.). Submission of labeling will help expedite the admissibility process during this pandemic.
Labeling along with entry documents should be submitted electronically via the FDA Import Trade Auxiliary Communication System (ITACS). ITACS functionality can be accessed at https://itacs.fda.gov. This includes checking statuses, providing requested documentation and location of goods electronically, and checking the estimated laboratory analysis completion dates for lines which have been sampled.
Additional information on ITACS, including questions and answers, can be found on FDA’s ITACS for Industry webpage: https://www.fda.gov/industry/import-systems/itacs . For further questions regarding ITACS, please contact firstname.lastname@example.org.