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:
- Treasury/OFAC: “North Korea Ballistic Missile Procurement Advisory”; Tuesday, 1 Sep 2020; Item #5
- State/DDTC: “Request to Publish Form DS-6004; Change End-User, End-Use and/or Destination of Hardware”; Wednesday, 2 Sep 2020; Item #1
- State/DDTC: Secretary of State National Security Determination: Upcoming Amendment of ITAR to Change the Policy of Denial for the Republic of Cyprus; Wednesday, 2 Sep 2020; Item #5
- Treasury/OFAC: “Inflation Adjustment of Civil Monetary Penalties Related to Reporting and Recordkeeping”; Thursday, 3 Sep 2020; Item #2
- DHS/CBP: “Information on Enhancements to ITRAC Data”; Friday, 4 Sep 2020; Item #3
Treasury/OFAC: “North Korea Ballistic Missile Procurement Advisory”
(Source: Treasury/OFAC, 1 Sep 2020)
The United States is issuing an advisory to alert industry worldwide to North Korea’s ballistic missile procurement activities. This advisory identifies key North Korean procurement entities and deceptive techniques employed by North Korean proliferators and procurement networks, provides an overview of U.S. sanctions authorities related to DPRK proliferation, and lists North Korea-related sanctions enforcement resources.
State/DDTC: “Request to Publish Form DS-6004; Change End-User, End-Use and/or Destination of Hardware”
(Source: Federal Register) [Excerpts]
85 FR 54613: Notice
* ACTION:Notice of request for public comment.
* SUMMARY:The Department of State is seeking Office of Management and Budget (OMB) approval for the information collection described below. In accordance with the Paperwork Reduction Act of 1995, we are requesting comments on this collection from all interested individuals and organizations. The purpose of this notice is to allow 60 days for public comment preceding submission of the collection to OMB.
* DATES:The Department will accept comments from the public up to November 2, 2020.
* SUPPLEMENTARY INFORMATION:
* Title of Information Collection: Request to Change End-User, End-Use and/or Destination of Hardware.
* OMB Control Number: 1405-0173.
* Type of Request: Revision of a Currently Approved Collection.
* Originating Office: T/PM/DDTC.
* Form Number: DS-6004.
* Respondents: Individuals, Business, or Nonprofit Organizations engaged in the business of exporting or temporarily importing defense articles or defense services. . . .
* Obligation to Respond: Voluntary.
* Abstract of Proposed Collection: The Form DS-6004, Request to Change End-User, End-Use and/or Destination of Hardware information collection is used to request DDTC approval prior to any sale, transfer, transshipment, or disposal, whether permanent or temporary, of classified or unclassified defense articles to any end-user, end-use or destination other than as stated on a license or other approval.
* ADDRESSES:You may submit comments by any of the following methods:
- Web: Persons with access to the internet may comment on this notice by going to www.Regulations.gov. You can search for the document by entering “Docket Number: DOS-2020-0038” in the Search field. Then click the “Comment Now” button and complete the comment form.
- Email: DDTCPublicComments@state.gov, ATTN: Advisory Opinion Form.
- Regular Mail: Send written comments to: Directorate of Defense Trade Controls, Department of State; 2401 E St. NW, Suite H1205, Washington, DC 20522.
You must include Form DS-6004 information collection title, and the OMB control number in any correspondence.
State/DDTC: Secretary of State National Security Determination: Upcoming Amendment of ITAR to Change the Policy of Denial for the Republic of Cyprus
(Source: State/DDTC, 2 Sep 2020)
On April 14, 2020, the President delegated to the Secretary of State the functions and authorities vested by § 1250A(d) of the National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2020 (P.L. 116-92) and § 205(d) of the Eastern Mediterranean Security and Energy Partnership Act of 2019 (Div. J. P.L. 116-94) (85 FR 35797). The Secretary subsequently determined it essential to the national security interests of the United States to waive the limitations provided in § 1250A(d) of the NDAA for FY 2020 (P.L. 116-92) and § 205(d) of the Eastern Mediterranean Security and Energy Partnership Act of 2019 (Div. J. P.L. 116-94) for one fiscal year, FY 2021.
Therefore, on October 1, 2020, the Department will temporarily amend the International Traffic in Arms Regulations (ITAR) § 126.1(r) to reflect the temporary waiver of the policy of denial on the export, reexport, retransfer, and temporary import of non-lethal defense articles and defense services destined for or originating in the Republic of Cyprus (ROC). The temporary waiver is effective for one fiscal year. The policy of the United States for lethal defense articles and defense services destined for or originating in the ROC will remain unchanged, i.e., the denial of licenses. A Federal Register Notice will be published detailing the temporary amendment.
Q: What type of equipment will the ROC be able to buy that it could not buy before?
A: The temporary waiver will allow for commercial purchases of non-lethal defense articles and defense services described on the U.S. Munitions List. Potential exports to Cyprus will be reviewed on a case-by-case basis for compliance with U.S. law and policy, the same practice we follow with all our partners.
Q: What is the definition of non-lethal defense articles and defense services?
A: The ITAR does not define “non-lethal.” The interagency license approval process will review potential exports to Cyprus on a case-by-case basis to ensure only non-lethal defense articles and defense services are approved for export.
Q: Will this waiver apply only to government purchases or also to civilian/private end users?
A: Currently, the ITAR allows the commercial sale of defense articles and defense services for the United Nations Forces in Cyprus or for civilian end-users. The only change this temporary ITAR amendment makes is to enable the ROC government to purchase non-lethal defense articles and defense services.
Q: If the government receives an export license in FY21, do the subject defense articles and defense services need to be delivered within FY21?
A: No. Export authorizations issued by the Department’s Directorate of Defense Trade Controls (DDTC) may be valid for up to 48 months, or four years, and will not be automatically revoked or rescinded if/when the temporary amendment to the ITAR expires.
Q: Why is the temporary waiver only for one year?
A: The provisions of the Eastern Mediterranean Security and Energy Partnership Act of 2019 and the FY 2020 NDAA dictate that waivers can only be issued on a one-year basis.
Treasury/OFAC: “Inflation Adjustment of Civil Monetary Penalties Related to Reporting and Recordkeeping”
(Source: Federal Register, 3 Sep 2020) [Excerpts]
85 FR 54911: Rule
* AGENCY: Office of Foreign Assets Control, Treasury.
* ACTION: Interim final rule with request for comments.
* SUMMARY: The Department of the Treasury’s Office of Foreign Assets Control (OFAC) is issuing this interim final rule to further implement the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, by adjusting for inflation its civil monetary penalties for failure to comply with certain recordkeeping and reporting requirements, which are contained in OFAC’s Economic Sanctions Enforcement Guidelines in OFAC’s Reporting, Procedures and Penalties Regulations.
* DATES: This rule is effective October 5, 2020. Comments must be received on or before October 5, 2020.
* ADDRESSES: You may submit comments by either of the following methods:
- Federal eRulemaking Portal: www.regulations.gov. Follow the instructions on the website for submitting comments. Refer to Docket Number OFAC-2020-0001.
- Mail: Attn: Request for Comments (Inflation Adjustment of Civil Monetary Penalties Related to Reporting and Recordkeeping), Office of Foreign Assets Control, Department of the Treasury, 1500 Pennsylvania Avenue NW, Freedman’s Bank Building, Washington, DC 20220. Refer to Docket Number OFAC-2020-0001.
- Instructions: All submissions received must include the agency name and the docket number that appears at the end of this document. All comments, including attachments and other supporting materials, will become part of the public record and subject to public disclosure. Sensitive personal information, such as account numbers or Social Security numbers, should not be included. Comments generally will not be edited to remove any identifying or contact information.
* FOR FURTHER INFORMATION CONTACT: OFAC: Assistant Director for Licensing, 202-622-2480; Assistant Director for Regulatory Affairs, 202-622-4855; or Assistant Director for Sanctions Compliance & Evaluation, 202-622-2490.
DHS/CBP: “Information on Enhancements to ITRAC Data”
(Source: DHS/CBP, 4 Sep 2020)
U.S. Customs and Border Protection (CBP) is enhancing the Importer Trade Activity (ITRAC) report capability in ACE Reports to improve performance, providing members of the trade community quicker, on-demand access to their data at no cost.
The benefits that the enhancements to the ITRAC report functionality will bring to the trade community include:
- Access to data in minutes rather than weeks
- Access to the most current information about import transactions
- Access to ITRAC data with no processing fee, through ACE Reports via a user’s ACE Secure Data Portal account
In preparation for the transition, CBP conducted a review of the data fields provided under the current ITRAC process. The review determined that one data field, Remarks Text, could no longer be included. Sufficient manual or automated resources are not available to maintain a review of all information. Because of the risk of sensitive data being entered and inadvertently shared, the Remarks Text field will be removed from the ITRAC data available in CD format beginning on September 15, 2020. All other ITRAC data will remain intact in ACE Reports and in the CD format.
The purpose of the ITRAC program has been to provide trade users with access to a listing of their past import transactions as far back as five years. This information is important for historical analysis and research conducted to support business purposes, and CBP is looking forward to providing trade users with these enhanced capabilities.
ACE Reports is free reporting tool available to the trade community for accessing their trade data. To access ACE Reports, users must first create an ACE Portal account. Details on setting up an ACE Portal account can be found at cbp.gov/trade/automated.