The Daily Bugle Weekly Highlights: Week 31 (27 – 31 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. Whitehouse: “Statement on Unmanned Aerial Systems Exports”; Monday, 27 July 2020; Item #5
2. UK DIT: “List of Goods Imported Into GB from the EU that Are Controlled”; Tuesday, 28 July 2020; Item #7
3. State/DDTC: “Extension to Certain Temporary Suspensions, Modifications, and Exceptions for the Durations Described Herein to Certain Provisions of the ITAR” ; Wednesday, 29 July 2020; Item #2
4. Commerce/BIS Revises the Export Administration Regulations and Suspends License Exceptions for Hong Kong; Friday, 31 July 2020; Item #1
5. EU Council Updates; Friday, 31 July 2020; Item #7

 

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Whitehouse: “Statement on Unmanned Aerial Systems Exports”

(Source: Whitehouse Press Secretary, 24 Jul 2020)

 

  Today, President Donald J. Trump is taking action to improve the standards for exporting Unmanned Aerial Systems (UAS).  While the Missile Technology Control Regime (MTCR) is critical in slowing proliferation and promoting peace and security, it is in dire need of modernization as it applies to UAS.  In a sector of rapidly evolving technology, the MTCR’s standards are more than three decades old.  Not only do these outdated standards give an unfair advantage to countries outside of the MTCR and hurt United States industry, they also hinder our deterrence capability abroad by handicapping our partners and allies with subpar technology.  More than two years of discussion with MTCR partners were unable to produce consensus on this overdue reform.  Therefore, the President has decided to invoke our national discretion to treat a carefully selected subset of MTCR Category I UAS, which cannot travel faster than 800 kilometers per hour, as Category II.  As such, the United States has determined that it will overcome the MTCR’s strong presumption of denial for this UAS subset.

  This action, which is consistent with MTCR Guidelines and the objectives of the April 2018 UAS Export Policy, will increase our national security by improving the capabilities of our partners and increase our economic security by opening the expanding UAS market to United States industry.  It also sets a strong example for other MTCR partners to adopt the same standard.

  United States UAS exports continue to be subject to the rigorous review criteria outlined in the UAS Export Policy, the Conventional Arms Transfer Policy, and the Arms Export Control Act, as well as the specific nonproliferation criteria identified in the MTCR Guidelines.  Likewise, approving or denying a UAS sale to any country is a whole-of-government decision and takes into account our national security, nonproliferation, and foreign policy objectives, as well as the purchasing country’s ability to responsibly use and safeguard United States-origin technology.  The United States looks forward to all MTCR nations joining us in adopting this new standard.

 

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UK DIT: “List of Goods Imported Into GB from the EU that Are Controlled”

(Source: UK Department for International Trade, 27 Jul 2020)

 

  You’ll need to follow normal import declarations rules for controlled goods imported into Great Britain from the EU from 1 January to 30 June 2021.

  From 1 January to 30 June 2021, if you import goods which are not controlled into Great Britain from the EU, you can record the goods in your own records without getting authorisation in advance.

  But if the goods are on the below list, you must follow normal rules for making import declarations.

  Read the full list here.

 

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State/DDTC: “Extension to Certain Temporary Suspensions, Modifications, and Exceptions for the Durations Described Herein to Certain Provisions of the ITAR” 

(Source: Federal Register) [Excerpts]

 

85 FR: 45733 Notice

* AGENCY: Department of State. 

* ACTION: Extension of temporary suspensions, modifications, and exceptions. * SUMMARY: The Department of State is issuing this document to inform the public of an extension to certain temporary suspensions, modifications, and exceptions for the durations described herein to certain provisions of the International Traffic in Arms Regulations (ITAR) in order to provide for continued telework operations during the current SARS-COV2 public health emergency. These actions are taken in order to ensure continuity of operations within the Directorate of Defense Trade Controls (DDTC) and among members of the regulated community. 

* DATES: This document is issued July 29, 2020.

* FOR FURTHER INFORMATION CONTACT: Sarah Heidema, Office of Defense Trade Controls Policy, U.S. Department of State, (202) 663-1282, or DDTCResponseTeam@state.gov. ATTN: Extension of Suspension, Modification, and Exception. 

* SUPPLEMENTARY INFORMATION: On May 1, 2020, the Directorate of Defense Trade Controls (DDTC) published in the Federal Register a notification of certain temporary suspensions, modifications, and exceptions to the ITAR, necessary in order to ensure continuity of operations within DDTC and among entities registered with DDTC pursuant to part 122 of the ITAR (85 FR 25287). These actions were taken pursuant to ITAR § 126.2, which allows for the temporary suspension or modification of provisions of the ITAR, and ITAR § 126.3, which allows for exceptions to provisions of the ITAR. These actions were taken in the interest of the security and foreign policy of the United States and warranted as a result of the exceptional and undue hardships and risks to safety caused by the public health emergency related to the SARS- COV2 pandemic. The President declared a national emergency on March 13, 2020, as a result of this public health crisis.   . . . .

 

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Commerce/BIS Revises the Export Administration Regulations and Suspends License Exceptions for Hong Kong

(Source: Federal Register, 31 Jul 2020) [Excerpts]

 

85 FR 45998: Rule

* AGENCY: Bureau of Industry and Security, Commerce.

* ACTION: Final rule.

* SUMMARY: The Bureau of Industry and Security (BIS) amends the Export Administration Regulations (EAR) to suspend the availability of all License Exceptions for Hong Kong that provide differential treatment as compared to those available to the People’s Republic of China (PRC). As announced on BIS’s website on June 30, 2020, these License Exceptions are no longer available for exports and reexports to Hong Kong, and transfers within Hong Kong, of all items subject to the EAR. BIS is taking this action as part of revised U.S. policy toward Hong Kong in response to the newly imposed security measures on Hong Kong by the Chinese Communist Party. These new security measures undermine Hong Kong’s autonomy and thereby increase the risk that sensitive U.S. technology and items will be illegally diverted to unauthorized end uses and end users in the PRC or to unauthorized destinations such as Iran or North Korea. This rule includes saving clauses for items, including for deemed exports.

* DATES: This rule is effective July 31, 2020.

* FOR FURTHER INFORMATION CONTACT: Patricia Muldonian, Office of National Security and Technology Transfer Controls, patricia.muldonian@bis.doc.gov.

 

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EU Council Updates

(Source: Council of the European Union, 31 Jul 2020)

 

* Council implements decision (cfsp) 2020/1137 of 30 Jul concerning restrictive measures in view of the situation in Libya. Read more here

* Council implements regulation (eu) 2020/1129 of 30 Jul concerning restrictive measures against the Democratic People’s Republic of Korea. Read more here

* Council’s decision (cfsp) 2020/1134 of 30 Jul extending decision (cfsp) 2017/915 on union outreach activities in support of the implementation of the Arms Trade Treaty. Read more here