The Daily Bugle Weekly Highlights: Week 27 (29 June- 3 July 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 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:

1. 1. DSCA Publishes Notice of Arms Sales to Indonesia; Wednesday,July 2020; Item #1
   2. DHS/CBP: “Modification of the National Customs Automation Program Test Regarding Reconciliation for Filing USMCA Post-Importation Claims”; Wednesday, 1 July 2020; Item #2
   3. EU Council: “Declaration on the Adoption by China’s National People’s Congress of a National Security Legislation on Hong Kong.”; Wednesday, 1 July 2020; Item #8
   4. Hong Kong TID: “Imports of U.S.-origin Electronics and Telecommunications Products”; Thursday, 2 July 2020; Item #9
   5. Spain’s Draft Legislation Provides Legal Framework for Sanctions Enforcement; Friday, 3 July 2020; Item #7

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   DSCA Publishes Notice of Arms Sales to Indonesia

   (Source: Federal Register, 1 Jul 2020)

   85 FR 39542: Notice
   * AGENCY: Defense Security Cooperation Agency, Department of Defense.
   * ACTION: Arms sales notice of prospective sales to Government of Indonesia
   * SUMMARY: The Department of Defense is publishing the unclassified text of an arms sales notification.
   * FOR FURTHER INFORMATION CONTACT: Karma Job at karma.d.job.civ@mail.mil or (703) 697-8976.

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   DHS/CBP: “Modification of the National Customs Automation Program Test Regarding Reconciliation for Filing USMCA Post-Importation Claims”

   (Source: Federal Register, 1 Jul 2020)

   85 FR 39576: Notice
   * AGENCY: U.S. Customs and Border Protection, Department of Homeland Security.
   * ACTION: General notice.
   * SUMMARY: This document announces a modification to the Automated Commercial Environment (ACE) National Customs Automation Program (NCAP) reconciliation prototype test to include the flagging for filing of post-importation preferential treatment claims arising under the Agreement Between the United States of America, the United Mexican States, and Canada (the USMCA) as implemented pursuant to the United States-Mexico-Canada Agreement Implementation Act (the USMCA Act). Importers may file USMCA post-importation claims for refunds of certain duties assessed on merchandise that both qualifies for preferential tariff treatment under the USMCA and was entered for consumption, or withdrawn from warehouse for consumption, on or after July 1, 2020. Unless and until the USMCA Act is subsequently amended, refunds for merchandise processing fees (MPF) are excluded from USMCA post-importation claims. Except to the extent expressly announced or modified by this document, all aspects, rules, terms and conditions announced in previously published Federal Register notices regarding the test remain in effect.
   * DATES: The test is modified to allow reconciliation of post-importation preferential tariff treatment claims to be filed on or after July 1, 2020, for refunds of certain duties assessed on merchandise that both qualifies for preferential tariff treatment under the USMCA and was entered for consumption, or withdrawn from warehouse for consumption, on or after July 1, 2020.
   * ADDRESSES: Comments concerning the reconciliation prototype test may be submitted via email to Randy Mitchell, Director, Commercial Operations, Revenue & Entry (CORE) Division, Office of Trade, U.S. Customs and Border Protection at OT-Reconfolder@cbp.dhs.gov, with a subject line identifier reading, “Modification of Reconciliation Test-USMCA”.
   * FOR FURTHER INFORMATION CONTACT: For policy-related questions, contact Randy Mitchell, Director, Commercial Operations, Revenue & Entry (CORE) Division, Office of Trade, U.S. Customs and Border Protection, at (202) 325-6532 or via email at OTReconFolder@cbp.dhs.gov, with a subject line identifier reading “Modification of Reconciliation Test-USMCA”. For technical questions related to ACE or Automated Broker Interface (ABI) transmissions, contact your assigned client representative. Interested parties without an assigned client representative should direct their questions to Tonya Perez, Director, Client Services Division, Office of Trade, U.S. Customs and Border Protection, at (571) 421-7477 or via email at gmb.clientrepoutreach@cbp.dhs.gov.

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   EU Council: “Declaration on the Adoption by China’s National People’s Congress of a National Security Legislation on Hong Kong.”

   (Source: Council of the European Union, 1 Jul 2020)

   The Standing Committee of China’s National People’s Congress adopted the National Security Law in Hong Kong on 30 June and subsequently promulgated it in Hong Kong the same day. The European Union reiterates its grave concerns about this law which was adopted without any meaningful prior consultation of Hong Kong’s Legislative Council and civil society.

   The European Union has a strong stake in the continued stability and prosperity of Hong Kong under the “One Country, Two Systems” principle. It attaches great importance to the preservation of Hong Kong’s high degree of autonomy, in line with the Basic Law and with international commitments, as well as to the respect for this principle.

   There are concerns about the conformity of the new law with Hong Kong’s Basic Law and with China’s international commitments. In line with assurances that China gave in the past, the European Union considers it essential that the existing rights and freedoms of Hong Kong residents are fully protected, including freedom of speech, of the press and of publication, as well as freedom of association, of assembly, of procession and of demonstration. The provisions of the International Covenant on Civil and Political rights (ICCPR) as enshrined in Hong Kong legislation must continue to be fully applied.

   The European Union is concerned that the law risks seriously undermining the high degree of autonomy of Hong Kong, and having a detrimental effect on the independence of the judiciary and the rule of law. Both of these principles remain essential for the continued stability and prosperity of Hong Kong, and are therefore of vital interest to the European Union and the international community.

   The European Union urges China to avoid any act which undermines Hong Kong’s autonomy in the legal field, including in terms of human rights.
   The European Union is assessing the implications of such a law and will continue to raise its concerns in its dialogue with China. It will continue to follow developments closely, including in the context of the upcoming Legislative Council elections on 6 September, which need to proceed as planned and in an environment conducive to the exercise of democratic rights and freedoms as enshrined in the Basic Law.

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   Hong Kong TID: “Imports of U.S.-origin Electronics and Telecommunications Products”

   (Source: Hong Kong Trade and Industry Department, 2 Jul 2020)

   This circular informs traders of the U.S. export licence requirement for U.S.-origin electronics and telecommunications products export / re-export to or transfer within Hong Kong starting from 30 June 2020.

   Details
   According to the Bureau of Industry and Security (“BIS”) of the U.S. Department of Commerce’s latest announcement on 30 June 2020 about the U.S.’ licensing requirements for export / re-export to or transfer within Hong Kong, with effect from 30 June 2020, U.S. export authorisation, which is usually in the form of an individual validated licence issued by the BIS, will be required for electronics and telecommunications products under Export Control Classification Numbers (“ECCN”) 3A001, 3A002.h, 3B001, 3B002, 3C002.a, 3C005, 3C006, 5A001, 5B001 and their sub-categories, amongst other types of products1.
   There is no change to Hong Kong’s import and export licensing control on strategic commodities as required under the Import and Export Ordinance (Chapter 60 of the Laws of Hong Kong) and the Import and Export (Strategic Commodities) Regulations (Chapter 60G of the Laws of Hong Kong).
   Traders importing the U.S.-origin products concerned are advised to liaise and check with their exporters / manufacturers, particularly to obtain the necessary and applicable U.S. export authorisation according to the latest requirements.
   In this connection, since U.S. Licence Exception GBS is inapplicable for export / re-export to or transfer within Hong Kong with effective from 30 June 2020, TID will liaise with the licensees concerned to cancel the relevant unused licences. Otherwise, traders might risk themselves violating the relevant U.S. laws and regulations.

   Enquiry
   If you have any enquiry concerning this circular, please contact Miss Cas Lam at telephone number 2398 5575 or by email at stc@tid.gov.hk.

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   Spain’s Draft Legislation Provides Legal Framework for Sanctions Enforcement

   (Source: Spanish Government, 2 Jul 2020) [Excerpts]

   The present Draft Law transposes the EU Community Directive 2018/843 on the prevention of money laundering and terrorist financing -V Directive- and modifies Law 10/2010. The European Directive incorporates new measures aimed at reinforcing the preventive systems of the member countries. The new Draft Law advances in the reinforcement of the money laundering and terrorist financing control system, incorporating new community provisions and including additional improvements in the current regulation to increase the effectiveness of prevention mechanisms. …