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16-0822 Monday “The Daily Bugle”

16-0822 Monday “Daily Bugle”

Monday, 22 August 2016

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The Daily Bugle is a free daily newsletter from Full Circle Compliance, containing changes to export/import regulations (ATF, Customs, NISPOM, EAR, FACR/OFAC, FTR/AES, HTSUS, and ITAR), plus news and events.  Subscribe 
here for free subscription.  Contact us for advertising inquiries and rates.

  1. Justice/ATF Seeks Comments on Form ATF F 6 (5330.3A) Part I, Application and Permit for Importation of Firearms, Ammunition and Defense Articles 
  2. DHS/CBP Seeks Comments on Investigation of Claims of Evasion of Antidumping and Countervailing Duties 
  1. Ex/Im Items Scheduled for Publication in Future Federal Register Editions 
  2. Commerce/BIS: (No new postings.) 
  3. Justice: “California Woman Sentenced to 50 Months in Prison for Conspiring to Illegally Export Fighter Jet Engines and Unmanned Aerial Vehicle to China” 
  4. State/DDTC Posts Name Change for OHL (Ozburn-Hessy Logistics) Due to Acquisition By Geodis Wilson 
  5. EU Posts Notice on Measures Taken by Member States Concerning Council Regulation 428/2009, Dual-Use Regulation 
  1. ST&R Trade Report: “CBP Lays Out Procedures for Investigating Evasion of AD/CV Duty Orders” 
  1. D.M. Edelman: “Technology Increasing CBP Ability to Enforce Trade Compliance-More Audits Coming After Warning Letters Sent to Importers” 
  2. J.E. Bartlett: “Are You Ready for Changes to All These ITAR Sections?” 
  3. J. Reeves & T. Ficaretta: “ATF Reclassifies Wetted Nitrocellulose as Explosive Material Under Federal Explosives Laws” 
  4. T. Murphy: “Increase in CBP’s CEE-Driven Enforcement Activities” 
  5. Gary Stanley’s ECR Tip of the Day 
  1. The Best Customs Broker Course Presents Cleveland Boot Camp, 30 Aug – 2 Sep 
  1. Monday List of Ex/Im Job Openings: 130 Jobs Posted 
  1. Bartlett’s Unfamiliar Quotations 
  2. Are Your Copies of Regulations Up to Date? Latest Changes: ATF (15 Jan 2016), Customs (22 Mar 2016), DOD/NISPOM (18 May 2016), EAR (19 Aug 2016), FACR/OFAC (18 May 2016), FTR (15 May 2015), HTSUS (1 July 2016), ITAR (17 Aug 2016) 

EXIMEX/IM ITEMS FROM TODAY’S FEDERAL REGISTER

EXIM_a11. Justice/ATF Seeks Comments on Form ATF F 6 (5330.3A) Part I, Application and Permit for Importation of Firearms, Ammunition and Defense Articles

 
81 FR 56696-56697: Agency Information Collection Activities; Proposed eCollection eComments Requested; Application and Permit for Importation of Firearms, Ammunition and Defense Articles, ATF F 6 (5330.3A) Part I
* AGENCY: Bureau of Alcohol, Tobacco, Firearms and Explosives, Department of Justice.
* ACTION: 30-Day notice.
* SUMMARY: The Department of Justice (DOJ), Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), will submit the following information collection request to the Office of Management and Budget (OMB) for review and approval in accordance with the Paperwork Reduction Act of 1995. The proposed information collection which was previously known as Application and Permit for Importation of Firearms, Ammunition and Implements of War, ATF F 6 (5330.3A) Part I, was published in the Federal Register at 81 FR 36583, on June 7, 2016, allowing for a 60-day comment period. All previous references to “Implements of War” were changed to “Defense Articles,” since “Implements of War” was not defined in the regulations and Defense Articles is the legal description, defined in 27 CFR part 447.
* DATES: Comments are encouraged and will be accepted for an additional 30 days until September 21, 2016.
* FOR FURTHER INFORMATION CONTACT: Desiree M. Dickinson, IOI/Industry Liaison, Firearms and Explosives Imports Branch, 244 Needy Road, Martinsburg, WV 25405, at email: desiree.dickinson@atf.gov. Written comments and/or suggestions can also be directed to the Office of Management and Budget, Office of Information and Regulatory Affairs, Attention Department of Justice Desk Officer, Washington, DC 20503 or sent to OIRA_submissions@omb.eop.gov.
* SUPPLEMENTARY INFORMATION: …
  – The title of the form/collection: Application and Permit for
Importation of Firearms, Ammunition and Defense Articles. …
  – Form number: ATF F 6 (5330.3A) Part I.
  – Component: Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Department of Justice. …
  – Abstract: The application and subsequent permit are used to bring firearms, ammunition and defense articles into the United States. …
     Dated: August 17, 2016.
Jerri Murray, Department Clearance Officer for PRA, U.S. Department of Justice.

 

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EXIM_a22. DHS/CBP Seeks Comments on Investigation of Claims of Evasion of Antidumping and Countervailing Duties

(Source: Federal Register) [Excerpts.]
 
81 FR 56477-56490: Investigation of Claims of Evasion of Antidumping and Countervailing Duties
* AGENCY: U.S. Customs and Border Protection, Department of Homeland Security; Department of the Treasury.
* ACTION: Interim regulations; solicitation of comments.
* SUMMARY: In accordance with section 421 of the Trade Facilitation and Trade Enforcement Act of 2015, this rule amends the U.S. Customs and Border Protection regulations to set forth procedures for CBP to investigate claims of evasion of antidumping and countervailing duty orders.
* DATES: The interim rule is effective August 22, 2016; comments must be received by October 21, 2016.
* ADDRESSES: You may submit comments, identified by docket number, by one of the following methods: … 
* FOR FURTHER INFORMATION CONTACT: Kevin M. McCann, Chief, Analytical Communications Branch, Office of Trade, U.S. Customs and Border Protection, 202-863-6078.
* SUPPLEMENTARY INFORMATION: …
   In accordance with section 421 of TFTEA requiring that regulations be prescribed as necessary to implement these procedures, CBP is amending title 19 of the Code of Federal Regulations to create new part 165 setting forth procedures for investigating claims of evasion of AD and CVD orders. In these regulations, CBP has endeavored to make the proceedings under the EAPA as transparent as possible and to provide for full participation and engagement by all parties involved in an EAPA proceeding.
   New part 165 is drafted with a scope section followed by four subparts: General Provisions; Initiation of Investigations; Investigation Procedures; and Administrative Review of Determinations. …
 
R. Gil Kerlikowske, Commissioner, U.S. Customs and Border, Protection.
   Approved: August 17, 2016.
Timothy E. Skud, Deputy Assistant Secretary of the Treasury.
* * * * * * * * * * * * * * * * * * * *

OGSOTHER GOVERNMENT SOURCES

OGS_a13. Ex/Im Items Scheduled for Publication in Future Federal Register Editions
(Source: Federal Register)

 
* Commerce; Industry and Security Bureau; RULES; Additions and Removals of Certain Persons and Modification of Certain Entries to the Entity List [Publication Date: 23 August 2016.]

* Commerce; Industry and Security Bureau; PROPOSED RULES; License Exceptions; Temporary Exports to Mexico [Publication Date: 23 August 2016.]

* Homeland Security ; RULES; Civil Monetary Penalty Adjustments for Inflation; Correction [Publication Date: 23 August 2016.]

* Justice; Alcohol, Tobacco, Firearms, and Explosives Bureau; NOTICES; Agency Information Collection Activities [Publication Date: 23 August 2016.]:
  – Application for Federal Firearms License
  – Notification of Change of Mailing or Premise Address  

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Wenxia Man, aka Wency Man, 45, of San Diego, was sentenced today to 50 months in prison for conspiring to export and cause the export of fighter jet engines, an unmanned aerial vehicle – commonly known as a drone – and related technical data to the People’s Republic of China in violation of the Arms Export Control Act.
 
The sentence was announced by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge Mark Selby of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) in Miami and Special Agent in Charge John F. Khin of the Department of Defense’s Defense Criminal Investigative Service (DCIS).
 
On June 9, 2016, Man was convicted by a federal jury in the Southern District of Florida of one count of conspiring to export and cause the export of defense articles without the required license.
 
According to evidence presented at trial, between approximately March 2011 and June 2013, Man conspired with Xinsheng Zhang, who was located in China, to illegally acquire and export to China defense articles including: Pratt & Whitney F135-PW-100 engines used in the F-35 Joint Strike Fighter; Pratt & Whitney F119-PW-100 turbofan engines used in the F-22 Raptor fighter jet; General Electric F110-GE-132 engines designed for the F-16 fighter jet; the General Atomics MQ-9 Reaper/Predator B Unmanned Aerial Vehicle, capable of firing Hellfire Missiles; and technical data for each of these defense articles. During the course of the investigation, when talking to an undercover HSI agent, Man referred to Zhang as a “technology spy” who worked on behalf of the Chinese military to copy items obtained from other countries and stated that he was particularly interested in stealth technology.

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Effective immediately, OHL has been acquired by Geodis Wilson and will change as follows:
 
From:
To:
OHL (S) Pte. Ltd.
Geodis Wilson Singapore Pte Ltd
OHL International Sdn. Bhd.
Geodis Wilson Freight Management Sdn Bhd
OHL (Hong Kong) Ltd.
Geodis Wilson Hong Kong Ltd
OHL (Xiamen) Co., Ltd
Geodis Wilson (China) Limited
OHL (Vietnam) Co., Ltd.
Geodis Wilson Vietnam Ltd
OHL (Taiwan) Limited
Geodis Wilson Taiwan Limited
Activair Australia Pty Ltd.
Geodis Wilson Australia Pty Ltd
Activair (UK) Ltd.
Geodis Wilson UK Ltd
BarthcoDart Global Logistics (Europe) B.V.
Geodis Wilson Netherlands B.V.
 
 
Due to the volume of authorizations requiring amendments to reflect this change, the Deputy Assistant Secretary for Defense Trade Controls is exercising the authority under 22 CFR 126.3 to waive the requirement for amendments to change currently approved license authorizations. The amendment waiver does not apply to approved or pending agreements.

All currently approved DSP authorizations identifying the old name will not require an amendment to reflect the change to new name. A copy of this website notice must be attached to the currently approved license by the license holder.
 
Pending authorizations received by DDTC identifying the old name on the license will be adjudicated without prejudice. A copy of this website notice must be attached to the approved license by the license holder.
New license applications received after September 19, 2016, identifying the old name on the license will be considered for return without action for correction.
 
All currently approved agreements will require an amendment to be executed to reflect this change. The agreement holder will be responsible for amending their agreement. The executed amendment will be treated as a minor amendment per 22 CFR 124.1(d) and must be submitted as such. New DSP-83s must be executed as a result of the name change, as applicable.
Pending agreement applications that require amending must be brought to the attention of the assigned Agreements Officer by the agreement holder. The necessary changes will be made prior to issuance when the Agreements Officer has been notified.
 
A copy of this website notice must be maintained by the license holder and presented with the relevant license to U.S. Customs and Border Protection at time of shipment.
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OGS_a57. EU Posts Notice on Measures Taken by Member States Concerning Council Regulation 428/2009, Dual-Use Regulation
 
Information Notice:
  – Information on measures adopted by Member States in conformity with Articles 5, 6, 8, 9, 10, 17 and 22 of Council Regulation (EC) No 428/2009 setting up a Community regime for the control of exports, transfer, brokering and transit of dual-use items
* * * * * * * * * * * * * * * * * * * *

NWSNEWS

NWS_a18. ST&R Trade Report: “CBP Lays Out Procedures for Investigating Evasion of AD/CV Duty Orders”

(Source: ST&R Trade Report)
 
Continuing its efforts to implement the enhanced trade enforcement authority granted by Congress earlier this year, U.S. Customs and Border Protection has published an interim rule setting forth the procedures it will use to investigate claims of evasion of antidumping and countervailing duty orders. This rule is effective as of Aug. 22 and comments on it are due by Oct. 21.
 
Evasion refers to entering goods into the U.S. customs territory for consumption by an act or omission that is material and false and results in AD or CV duties being reduced or not applied to or collected on such goods. Examples of evasion include misrepresentation of the goods’ true country of origin (e.g., through fraudulent country of origin markings on the product itself or false sales), false or incorrect shipping and entry documentation, and misreporting of the goods’ physical characteristics.
 
The Enforce and Protect Act, which was included as Title IV in the Trade Facilitation and Trade Enforcement Act signed into law this past February, created a new framework for CBP to investigate evasion allegations. CBP is proposing to amend its regulations to implement this framework as follows.
 
Initiation. CBP must initiate an investigation within 15 business days of receiving a properly filed allegation by an interested party (which could be a competing importer) or request from another federal agency that reasonably suggests evasion. Each allegation may only concern one importer, although multiple allegations against one or more importers may be consolidated. A determination to initiate an investigation must be notified to all known parties within 95 days after initiation. Parties can request protection of confidential business information (e.g., trade secrets, production costs, customer lists).
 
Investigation. Investigations will be conducted by CBP’s Trade Remedy Law Enforcement Directorate. Each investigation will cover entries made within one year of receipt of the allegation or request, though CBP may investigate other entries at its discretion. This provision will not limit CBP’s authority to act under other statutory provisions with respect to information obtained during the investigation; e.g., the assessment of penalties under 19 USC 1592.
 
CBP may collect such information as is necessary to make a determination on the evasion allegation through any means authorized by law, though the primary sources are expected to be information from its own files, other federal agencies, field work by CBP officials, and questionnaires directed to importers, foreign producers and exporters, foreign governments, etc. CBP may conduct verifications of collected information in the U.S. or in foreign countries as necessary to make a determination. CBP may make an adverse inference if a respondent does not act to the best of its ability to provide the information requested (except in the case of foreign governments) or based on the allegation, other CBP investigations, proceedings or actions regarding evasion, or any other available information.
 
Interested parties must report to CBP any knowledge or reason to suspect that the covered goods may pose a health or safety risk to U.S. consumers, and CBP must report any such risk to the appropriate federal agencies.
 
Interim Measures. CBP must determine within 90 calendar days of initiation whether there is reasonable suspicion that covered goods were entered through evasion. If that determination is affirmative, CBP will (1) suspend liquidation of unliquidated entries of covered goods entered after the date of initiation, (2) extend the period for liquidating unliquidated entries of covered goods that entered before initiation, and (3) take any additional measures necessary to protect the revenue (e.g., requiring a single transaction bond or additional security or the posting of cash deposits).
 
Determination. CBP must determine within 300 calendar days (360 in extraordinarily complicated cases) whether there is substantial evidence of evasion and must communicate that determination to the accuser and accused within five business days after making a determination. CBP’s failure to make a determination by the deadline will not result in a deemed decision as to whether or not evasion has occurred.
 
Consequences. If its determination is affirmative, CBP must (1) suspend liquidation of unliquidated entries of covered goods that entered on or after the date of initiation, (2) extend the period for liquidating unliquidated entries of covered goods that entered before initiation, (3) notify the Department of Commerce and request that it identify the appropriate AD/CV duty rates, (4) require importers of covered goods to post cash deposits, (5) assess AD/CV duties on covered goods, and/or (6) take such additional enforcement measures it deems appropriate; e.g., modifying procedures for identifying future evasion, reliquidating entries as provided by law, and referring the matter to U.S. Immigration and Customs Enforcement for possible civil or criminal investigation.
 
If its determination is negative, CBP will cease applying any interim measures and liquidate the affected entries in the normal course.
 
Review. Evasion determinations are subject to administrative review that may be requested by any party to the investigation.

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COMMCOMMENTARY

COMM_a19. D.M. Edelman: “Technology Increasing CBP Ability to Enforce Trade Compliance-More Audits Coming After Warning Letters Sent to Importers”

 
* Author: Doreen M. Edelman, Esq., Baker Donelson LLP, 202-508-3460, dedelman@bakerdonelson.com
 
I know the title of this blog is Export Compliance Matters, but I feel compelled to provide evidence that  import compliance is also becoming a serious compliance risk. Customs and Border Protection (CBP) just announced Friday that the US government is owed 2.3 billion dollars in antidumping and countervailing duties alone. Moreover,  CBP  has issued several “informed compliance” letters encouraging prior disclosure of customs violations by warning the trade community that the CBP and Immigrations and Customs Enforcement are enforcing trade violations. The issuance of the letters comes in tandem with more sophisticated auditing techniques that CBP has developed to catch violations, including using customs data provided by CBP’s Automated Commercial Environment (ACE).
 
The letters require recipients to return signed copies of the letter to CBP and urges recipients to step up monitoring efforts, encourages prior disclosures, and includes links to CBP’s series of Informed Compliance publications.  If you have received a letter pay attention as the odds are CBP’s data indicates you may have something to disclose.  If you don’t disclose and CBP finds violations, your ability to mitigate will be limited and CBP will likely impose penalties.
 
If you are importing steel, textiles, or automotive parts; or are importing from countries frequently subject to antidumping proceedings (e.g., China); or are importing merchandise that is particularly difficult to classify, you are more likely to be audited by CBP.  It is always better to do your own internal review by a qualified third party and disclose to CBP than waiting for CBP to audit you.   If you have any questions, please call my office. The more you understand your requirements the more compliant you and your company will be.

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COMM_a210. J.E. Bartlett: “Are You Ready for Changes to All These ITAR Sections?”

(Source: Author)

* Author: James E. Bartlett III, Esq., JEBartlett@JEBartlett.com; 202-802-0646

The times, they are a-changin’

– Bob Dylan

The following proposed ITAR amendments were published in 80 Fed. Reg. 29565 (May 22, 2015), but have not been published as final:
  – 126.4, Exports and Temporary Imports Made to or On Behalf of a Department of the U.S. Government
  – Twelve other sections in the May 22, 2015, proposed amendments were later amended.

The following proposed ITAR amendments were published in 80 Fed. Reg. 31525 (June 3, 2015), but have not been published as final:
  – 120.6, Defense Article
  – 120.9, Defense Service
  – 120.10, Technical Data
  – 120.11, Public Domain
  – 120.41, Specially Designed
  – 120.46, Required
  – 120.47, Development
  – 120.48, Production
  – 120.49, Technical Data the Arises During, or Results From, Fundamental Research
  – 120.52, Activities That are Not Exports, Reexport, or Retransfers
  – 127.1, Violations
  – Seven other sections in the June 3, 2015, proposed amendments were later amended

The following proposed ITAR amendments were published in 81 Fed. Reg. 6797 (Feb. 9, 2016), but have not been published as final:
  – 121.1, Cat. VIII, Aircraft and Related Articles
  – 121.1, Cat. XIX, Gas Turbine Engines and Associated Equipment

The following proposed ITAR amendments were published in 81 Fed. Reg. 8438 (Feb. 19, 2016), but have not been published as final:
  – 121.1, Cat. VIII(e), Aircraft and Related Articles; Inertial navigation systems
  – 121.1, Cat. XII, Fire Control, Laser, Imaging, and Guidance and Control Equipment
  – 121.1, Cat. XIII(a), Materials and Miscellaneous Articles; Cameras and specialized processing equipment
  – 121.1, Cat. XV(c), Spacecraft and Related Articles; GPS receiving equipment

The following final ITAR amendments will take effect on the indicated dates:

Amended by 81 Fed. Reg. 35611 (June 3, 2016, effective Sept. 1, 2016):
  – 120.17, Export
  – 120.19, Reexport
  – 120.50, Release
  – 120.51, Retransfer
  – 123.28, Scope of a License
  – 124.1, Manufacturing License Agreements and Technical Assistance Agreements
  – 124.8, Clauses Required Both in Manufacturing License Agreements and Technical Assistance Agreements
  – 124.12, Required Information in Letters of Transmittal
  – 124.16, [Removed and Reserved]
  – 125.4(b)(9), Exemption for Technical Data for US person employee
  – 126.18, Exemption for DN/TCN

Amended by 81 Fed. Reg. 49531 (July 28, 2016, effective Dec. 31, 2016):
  – 121.1, Cat. XIV, Toxicological Agents, Including Chemical Agents, Biological Agents, and Associated Equipment
  – 121.1, Cat. XVIII, Directed Energy Weapons

Amended by 81 Fed. Reg. 54732 (Aug. 17, 2016, effective Nov. 15, 2016):
  – 120.5, Relation to Regulations of Other Agencies; Export of Items Subject to the EAR
  – 123.4, Temporary Import License Exemptions
  – 123.9, Country of Ultimate Destination and Approval of Reexports or Retransfers
  – 123.13, Domestic Aircraft Shipments via a Foreign Country
  – 124.7, Information Required in all Manufacturing License Agreements and Technical Assistance Agreements
  – 124.8, Clauses Required Both in Manufacturing License Agreements and Technical Assistance Agreements
  – 124.9, Additional Clauses Required Only in Manufacturing License Agreements
  – 124.12, Required Information in Letters of Transmittal
  – 124.14, Exports to Warehouses or Distribution Points Outside the United States
  – 125.2, Exports of Unclassified Technical Data
  – 125.7, Procedures for the Export of Classified Technical Data and Other Classified Defense Articles
  – 126.9, Advisory Opinions and Related Authorizations

The only available fully updated ITAR (latest edition 17 Aug 2016) is contained in Bartlett’s Annotated ITAR (“The BITAR”), by James E. Bartlett III. A revised edition will be published on September 1, 2016, containing all amendments effective on that date. The BITAR contains all ITAR amendments to date, plus a large Index, and over 700 footnotes containing case annotations, practice tips, DDTC guidance, and explanations of errors in the official ITAR text. Subscribers receive updated copies of the BITAR in Word by email, usually revised within 24 hours after every ITAR amendment. The BITAR is the essential tool of the ITAR professional. The BITAR is available by annual subscription from the Full Circle Compliance website.

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COMM_a311. J. Reeves & T. Ficaretta: “ATF Reclassifies Wetted Nitrocellulose as Explosive Material Under Federal Explosives Laws”

(Source: R/D Alert)
 
* Authors: Johanna Reeves, Esq., 202-715-9941, jreeves@reevesdola.com; and Teresa Ficaretta, Esq.,202-715-9183, tficaretta@reevesdola.com. Both of Reeves & Dola LLP.
 
In an Explosives Industry Newsletter issued in June 2016, the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”) reclassified wetted nitrocellulose containing greater than 12.6 percent nitrogen as a high explosive under the federal explosives laws. As explained below, this is a dramatic and sudden change in agency policy with a significant impact on the ammunition industry. The new policy was announced in a newsletter without any opportunity for industry input.

I. Background

The federal explosives laws, 18 U.S.C. Chapter 40, regulate commerce in “explosive materials.” The term “explosive materials” is defined as explosives, blasting agents, and detonators. The term “explosives” is defined as any chemical compound mixture or device the primary or common purpose of which is to function by explosion. The definition requires ATF to publish an annual list of explosives that fit within the statutory definition. The 2015 List of Explosives is available here.

Exemptions from the requirements of the federal explosives laws are provided, in pertinent part, for: (1) the transportation, shipment, receipt, or importation of explosive materials for delivery to any federal or State agency; (2) for small arms ammunition and components thereof; and (3) for the manufacture under the regulation of the U.S. military of explosive materials for their official use.

The term “ammunition” is defined in 27 C.F.R. § 555.11 as follows:

“Small arms ammunition or cartridge cases, primers, bullets, or smokeless propellants designed for use in small arms, including percussion caps, and 3/32 inch and other external burning pyrotechnic hobby fuses. The term does not include black powder.”

ATF’s longstanding position is that the small arms ammunition exemption applies only to .50 caliber or smaller rifle or handgun ammunition as well as certain shotgun ammunition. This position is clear in a June 2013 Explosive Industry Newsletter addressing exploding ammunition.

ATF also exempts other components of small arms ammunition from the requirements of the law and regulations, but only if such components are listed in the definition of “ammunition” in 27 C.F.R. § 555.11. This means that smokeless powder and primers are exempt from record keeping and storage requirements. However, other explosive materials used to manufacture ammunition will not be exempt until incorporated into one of the components of ammunition listed in the regulation, including smokeless powder or a complete round of small arms ammunition. Thus, wetted nitrocellulose containing greater than 12.6 percent nitrogen may be lawfully shipped, transported, or received only by persons holding federal explosives licenses or permits. Nitrocellulose must be recorded in records of acquisition in accordance with 27 C.F.R. § 555.123(b). The wetted nitrocellulose must also be recorded in the daily summary of magazine transactions required by 27 C.F.R. 555.127 and stored in storage magazines meeting the construction, tables of distance, and other requirements of storage regulations in 27 C.F.R. Part 555. At the point the nitrocellulose is incorporated into smokeless powder or a complete round of ammunition, it is exempt from the requirements of the record keeping, storage, and other requirements of federal law and regulations.

II. ATF Newsletter Article

The June 2016 newsletter article states that ATF was recently asked about the status of nitrocellulose under the federal explosives laws and regulations. The article notes that “Nitrocellulose explosive” is on ATF’s List of Explosive Materials and states ATF has determined that “nitrocellulose containing greater than 12.6 percent nitrogen is a high explosive under 27 C.F.R. Part 555.” The article indicates ATF is aware that the U.S. Department of Transportation may assign a nonexplosive classification to nitrocellulose when it has been wetted with water or alcohol, based, in part, on the diminished likelihood of explosion in a transportation accident. However, because nitrocellulose retains its explosive characteristics when the water or alcohol is removed, the wetted nitrocellulose remains a nitrocellulose explosive subject to all controls of the federal explosives laws. Because of the diminished likelihood of wetted nitrocellulose exploding, “ATF will consider variance requests to store the wetted material under an alternative arrangement.”

III. Impact of ATF Reclassification

Manufacturers and importers of smokeless propellant have relied on ATF private letter rulings issued prior to 2016 stating that nitrocellulose wetted with water not less than 25 percent by mass is not subject to regulation under the federal explosives laws. Accordingly, the manufacturers have set up their logistics, storage and operations consistent with nitrocellulose not being regulated as an explosive. Manufacturers and importers may not have adequate storage facilities or record keeping systems to comply with the law. Licensed manufacturers also rely on private, unlicensed vendors to store wetted nitrocellulose in facilities that do not comply with storage requirements. A number of manufacturers also report an adverse impact on their contracts to supply smokeless propellant and finished rounds of ammunition to the Department of Defense.

Publication of the change in classification in an industry newsletter without advance notice has left manufacturers scrambling to determine what standards ATF will allow for alternate storage and record keeping and to obtain permits for unlicensed storage vendors. In the meantime, manufacturers and importers are violating federal law, as ATF allowed no grace period for coming into compliance. We note that ATF has authorized such periods in the past when changing agency positions. For example, see ATF’s November 12, 2010 Open Letter regarding explosive pest control devices.

IV. Conclusion

ATF’s sudden and unexpected change in policy on wetted nitrocellulose will likely have a significant impact on industry’s ability to deliver products to the military and commercial markets. Industry members have relied on the exemption for wetted nitrocellulose for many years and are aware of no accidental detonations or diversion of this product into illicit channels. Consequently, it is unclear why ATF believed it necessary to change its policy and, more importantly, why ATF announced the change in a newsletter article with no advance notice to industry.
We are working with ATF to address the issues raised in this alert, including a possible agency announcement of delayed enforcement. We will notify our readers of any developments in the future.

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COMM_a412. T. Murphy: “Increase in CBP’s CEE-Driven Enforcement Activities”

(Source: Author)
 
* Author: Ted Murphy, Esq., Baker & McKenzie LLP, 202-452-7069, ted.murphy@bakermckenzie.com
 
We want to make you aware of two developments from last week that will likely result in an increase in U.S. Customs and Border Protection (CBP) enforcement actions.  The first was the publication of a report by the United States Government Accountability Office (GAO) critical of CBP’s handling of antidumping/countervailing duty (AD/CVD) orders.  The report, which is entitled, “Antidumping and Countervailing Duties:  CBP Action Needed to Reduce Duty Processing Errors and Mitigate Nonpayment Risk” concluded that CBP failed to collect approximately $2.3 billion in antidumping & countervailing duties between Oct. 1, 2001 and Sept. 30, 2014.  While this may not be entirely CBP’s fault (e.g., the retrospective nature of our trade remedies law), the GAO takes CBP to task for “miss[ing] opportunities to identify and mitigate nonpayment risk.”  Given the politics surrounding this issue (the report was delivered to the Senate Finance Committee), we can expect to see increased AD/CVD enforcement as CBP attempts to demonstrate its commitment to addressing this issue.
 
The second was the pre-publication by CBP of interim regulations entitled, “Investigation of Claims of Evasion of Antidumping and Countervailing Duties”.  These regulations were mandated by section 421 of the Trade Facilitation and Trade Enforcement Act of 2015, which was signed into law earlier this year.  The interim regulations, which will take effect on Monday, August 22, 2016, establish procedures for investigating claims of AD/CVD order evasion.  The procedures contain detailed timelines for initiating, conducting and completing investigations based on claims from private parties or other government agencies.  The process created by the interim regulations has numerous advantages over the e-allegation system (which will continue to exist) and we expect that it will be well-used by domestic producers, as well as companies who have reason to believe that competitors are not properly declaring merchandise subject to AD/CVD orders upon importation.

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COMM_a513. Gary Stanley’s ECR Tip of the Day

(Source: Defense and Export-Import Update; available by subscription from
gstanley@glstrade.com
)
 
* Author: Gary Stanley, Esq., Global Legal Services, PC, (202) 352-3059,
gstanley@glstrade.com
 

The provisions of ITAR § 126.18 apply to not only ITAR agreements (Manufacturing License Agreements, Technical Assistance Agreements and Warehouse and Distribution Agreements), but also approved export licenses, other export authorizations, and license exemptions under which a defense article is received.

* * * * * * * * * * * * * * * * * * * *

TEEX/IM TRAINING EVENTS & CONFERENCES

TE_a114. The Best Customs Broker Course Presents Cleveland Boot Camp, 30 Aug – 2 Sep
(Source: Jessica Ortiz, jessicao@exportimportlaw.com)

* What: 4-Day Boot Camp to prepare you for the October 2016 exam
* When: August 30-September 2, 2016
* Where: Bendix Commercial Vehicle Systems, LLC, 901 Cleveland Street, Elyria, OH
* Sponsor: Bendix Commercial Vehicle Systems, LLC and The Best Customs Broker Course
* Instructor: Ruth Rodriguez, Attorney
* Register: Here, or call Jessica Ortiz at 817-913-8549 or e-mail jessicao@exportimportlaw.com.
* * * * * * * * * * * * * * * * * * * *

MSEX/IM MOVERS & SHAKERS

MS_a115
. Monday List of Ex/Im Job Openings: 130 Jobs Posted

(Source: Editor)  


 
Published every Monday or first business day of the week.  Send openings in the following format to
apbosch@fullcirclecompliance.eu
.
 
COMPANY; LOCATION; POSITION TITLE (WEBLINK); CONTACT INFO; REQ ID

*” New listing this week:

 

* AAR Corp; Wood Dale IL;
Trade Compliance Manager
; Requisition ID: 5923

* Airschott / Seaschott; Wash DC/National;
National Sales Director
;
newhire@airschott.com

* Amazon; Beijing, China; 
Trade Compliance Program Manager
; Requisition ID: 344454

* Amazon; Luxembourg; Export Trade Compliance Specialist (M/F); Requisition ID: 341349

* Amazon; London, UK;
Trade Compliance Program Manager (M/F)
; Requisition ID: 429019

* Amazon; Gdansk, Poland;
Senior Compliance Associate – German; Requisition ID: 400464

* Amazon; Gdansk, Poland;
Global Trade Subject Matter Expert – German; Requisition ID: 402913
* Amazon; Iasi, Romania;
Global Trade Subject Matter Expert with French; Requisition ID: 409568
* Amazon; Iasi, Romania;
Global Trade Subject Matter Expert with Italian or Spanish; Requisition ID: 409569
* Amazon; Iasi, Romania;
Senior Compliance Associate – English; Requisition ID: 421325
* Amazon; Iasi, Romania;
Senior Compliance Associate – French; Requisition ID: 422484
* Amazon; Iasi, Romania;
Senior Compliance Associate – Italian; Requisition ID: 422476
* Amazon; Iasi, Romania;
Senior Compliance Associate – Spanish; Requisition ID: 422482
* Amazon; Seattle WA;
Corporate Counsel, AWS Trade Compliance
; Requisition ID: 404016

* Amazon; Seattle WA;
Compliance Investigator; Requisition ID: 422931
* Amazon; Seattle WA;
Compliance Investigator
; Requisition ID: 432560
* Amazon; Seattle WA;
Compliance Investigator
; Requisition ID: 432561
* Amazon; Seattle WA;
Compliance Investigator
; Requisition ID: 432563
* Amazon; Seattle WA;
Compliance Investigator
; Requisition ID: 432564
* Amazon; Seattle WA;
Sanctions Compliance Specialist
; Requisition ID: 431298

* Amazon; Seattle WA;
NA Compliance Analyst; Requisition ID: 256357

* Amazon; Seattle WA;
Global Trade Compliance Program Manager – Corporate Projects; Requisition ID: 390244
* Amazon; Seattle WA;
Prime Air Trade Compliance Program Manager; Requisition ID: 395658

* Amber Road; Mclean VA;
Senior Trade Specialist

* Armstrong Flight Research Center; Edwards AFB CA; Export Control Specialist; Requisition ID: AF16D0026

* ASML; Hong Kong or Taiwan; Expertise Manager International Trade, Customs and Export Controls APAC; Requisition ID: TW00208

* Aviall; Dallas TX;
Sr. Regulatory & Export Compliance Specialist
; Requisition ID: 11624

* Baylor University; Waco TX;
Manager Export Compliance; Requisition ID: S030428

* Beckman Coulter; Nyon Switzerland;
Senior Trade Compliance Manager – L&D EMEAI
; Requisition ID: DIA009227

* Boeing; Brisbane, Australia;
International Trade Compliance Officer
; Requisition ID:
BOE/1218243X

* Boeing; Huntington Beach CA;
Trade Control Project Manager
; Requisition ID: 1600013450

* Boeing; Huntington Beach CA;
Trade Control Specialist
; Requisition ID: 1600014196
* Boeing; Mesa AZ;
Trade Controls/Exports – First Line Manager
; Requisition ID: 1600014070 

* Boeing; Ridley Park PA;
Trade Controls/Exports – First Line Manager
; Requisition ID: 1600014074
* Boeing; SeaTac WA;
Transportation Analyst
; Requisition ID:
1600014143

* Boeing; St. Louis MO;
Trade Control Specialist, Systems – Mid level
; Requisition ID: 1600013476

* BMW Group; Woodcliff Lake NJ;
Manager, Export Control
; Requisition ID: 160001NR


* Bourns Inc.; Riverside CA;
Director Worldwide Contracts
;
BournsHR.Riv@bourns.com

* Choice Logistics; New York;
Manager, Global Trade Operations

* CONMED Corporation; Utica NY;
Logistics & Trade Compliance Analyst
; Requisition ID: 3469

* Cummins, Inc.; Columbus IN; 
Export Controls Analyst Senior
;
scot.lashley@cummins.com

* DoD/DSS; Parsippany NJ; Industrial Security Specialist; Requisition ID: DSS-16-1758834-B
* DoD/DSS; San Diego CA; Industrial Security Specialist; Requisition ID: DSS-16-1748385-MP

* DRS Technologies; Germantown MD;
Senior Trade Compliance Manager
;
Requisition ID: 54749

*
DynCorp International LLC; Fort Worth TX;
BD Trade Compliance Manager
; Requisition ID: 1601114

* Esterline Technologies Corporation; Bellevue WA;
Senior Manager Trade Compliance – Segment Jurisdiction and Classification
; Requisition ID: 7187BR


* Esterline Technologies Corporation; Buena Park CA;
Senior Trade Compliance Manager
; Requisition ID:  5742BR
* Esterline Technologies Corporation; Buena Park CA;
Trade Compliance Specialist 3
; Requisition ID: 6025BR

* Esterline Technologies Corporation; Brea CA;
Trade Compliance Manager; Requisition ID: 7333BR

* Esterline Technologies Corporation; Paso Robles CA;
Trade Compliance Manager
; Requisition ID: 6148BR
* Esterline Technologies Corporation; Valencia CA;
Trade Compliance Manager
; Requisition ID: 6648BR

* Export Solutions Inc.; Melbourne FL; 
Trade Compliance Specialist II

info@exportsolutionsinc.com

* FedEx Trade Networks; Memphis TN;
Managing Director, Regulatory Affairs & Compliance – Brokerage
;
Cindyallen@fedex.com
; Requisition ID: 1001410BR
* FLIR Systems; Arlington VA;
Director of Defense Trade Licensing & Compliance

* Google; Hyderabad, India; 
Logistics Trade Compliance Manager, APAC/India 

* Graco; Rogers MN;
Trade Compliance Supervisor 

* Henderson Group Unlimited Inc.; Wash DC;
Commodities Jurisdiction Analyst
;
alannasmith@hendersongroupinc.net


* Hub Group; Dallas TX;
International Compliance Analyst
* IBM; Dallas TX;
Global Trade Compliance Senior Analyst
; Requisition ID: 55904BR

* ICAT Logistics; Elkridge MD;
Domestic Operations Agent 

* ICAT Logistics; Elkridge MD;
International Operations Agent 

* Intel; Santa Clara CA;
Global Import Regulatory Program Manager; Requisition ID: 802320


* L-3 Communications, Platform Integration Division; Waco TX;
Export/Import Compliance Administrator A3
; Requisition ID: 083171

* Lam Research Corporation; Fremont CA:
Foreign Trade Analyst 6
; Requisition ID: 12079BR

* Lennox International; Richardson TX;
Trade Compliance Administrator
; Requisition ID: 2016-8055

* Lumber Liquidators; Toano VA;
Analyst, Customs Compliance
; Requisition ID: 182

* Lumber Liquidators; Toano VA;
Compliance Auditor
; Requisition ID: 913

* Lutron; Coopersburg PA; Trade Compliance Coordinator; Requisition ID: 2834

* Lutron; Coopersburg PA;
Trade Manager
; Requisition ID: 2926
* MACOM; Lowell MA;
Trade Compliance Analyst
;
David.Cassin@MACOM.com
; Requisition ID: 1522
* Mars; Chicago IL;
Trade Compliance Analyst
; Requisition ID: 60654
* Mars; Chicago IL;
Trade Compliance Specialist
; Requisition ID: 69456
* Meggitt (Erlanger), LLC; Erlanger KY;
Trade Compliance Manager
; Requisition ID: 22005
* Meggitt Advanced Composites Limited; Shepshed, UK;
Trade Compliance Officer
; Requisition ID: 22122

* Meggitt Sensing Systems; Orange Country, CA;
Sr Trade Compliance Administrator
; Requisition ID: 22377

* Meggitt (North Hollywood), Inc., North Hollywood, CA;
Trade Compliance Administrator II
; Requisition ID: 22591
* Meggitt; North Tustin CA;
Senior Trade Compliance Administrator

* Moog; East Aurora NY;
Export Compliance Manager;
anihill@moog.com; Requisition ID: 161913

*
MTEQ, Inc.; Lorton VA;
Export Control Specialist
;
hr@mteq.com
; Requisition ID: 422

* Newell Rubbermaid; Downers Grove IL;
Customs Compliance Senior Specialist
; Requisition ID: 1601936
 


* Nike; Shanghai, China; Customs Coordinator; Requisition ID: 4375 

* Northrop Grumman T
echnology Services Sector, Advanced Defense Services (ADS) Division
; International Posting (Saudi Arabia);
Manager International Trade Compliance 1
(Saudi Arabia)
; Requisition ID: 16003577

* Northrop Grumman Corporation; Falls Church VA;
Corporate Counsel – Export/Import
; Requisition ID: 16011617
* Northrop Grumman Corporation; Sierra Vista AZ and Herndon VA;

International Trade Compliance Analyst 4
; Requisition ID: 16008077 

* Northrop Grumman Corporation; Falls Church VA;
International Trade Compliance Analyst 3/4
; Requisition ID: 160146665
* Northrop Grumman Corporation; International Posting (Europe);
Global Trade Management Europe 1
; Requisition ID: 16016526
* Northrop Grumman Corporation; Herndon VA;
Manager International Trade Compliance 2
; Requisition ID:
16003572
* Northrop Grumman Corporation; Linthicum MD;
International Trade Compliance Analyst 3
; Requisition ID: 16013233
* Northrop Grumman Corporation; McLean VA;
International Trade Compliance Analyst 4
; Requisition ID: 16014848
* Northrop Grumman Corporation; San Diego CA;
Manager International Trade Compliance 2
; Requisition ID: 16017984


* OSI Systems, Inc.; Hawthorne CA;
Manager, Global Trade Compliance
;
kbutcher@osi-systems.com
; Requisition ID: 9380


* PPG; Sylmar CA;
Export Compliance Coordinator
; Requisition ID: 1600003880
* Premier Farnell; Chicago IL; Trade Compliance Manager – America’s; Requisition ID: 3589

* Qorvo; Richardson TX;
Import/Export Analyst
; Requisition ID:
0004791

* Raytheon; Arlington VA/Wash DC;
Export Licensing Manager
; Requisition ID: 83780BR


* Raytheon; Arlington VA/Wash DC;
Export Compliance Manager
; Requisition ID: 81732BR

* Raytheon; Arlington VA/Wash DC;
Export Licensing Subject Matter Expert
; Requisition ID: 83147BR


* Raytheon; El Segundo CA, Fullerton CA, Goleta CA;
Export Compliance – Agreements Authorization Owner
; Requisition ID: 80519BR


* Raytheon; Rosslyn VA;
Director of Licensing; Requisition ID: 83836BR

* Raytheon; Tucson AZ;
Export Compliance – Agreements Authorization Owner
; Requisition ID: 80648BR


* S.C. Johnson & Son, Inc.; Racine WI;
Trade Compliance Senior Analyst
; Requisition ID: 4757BR
*
Sierra Nevada Corporation; Denver CO;
Trade Compliance Licensing Manager
; Requisition ID:
R0001568

* Tecomet; Lansing MI;
Export Control Coordinator – EAR/ITAR
; Requisition ID: 1539

* Textron Systems; Hunt Valley MD;
Principal Export Compliance Analyst
; Requisition ID: 242851

* Textron Systems; Wilmington MA;
Principal Export Compliance Analyst
; Requisition ID: 242857


* ThermoFisher Scientific; Fremont CA;
Senior Global Trade Compliance Analyst
; Requisition ID: 38513BR

* Tokyo Electron; Austin TX;
Import/Export Compliance Analyst
; Requisition ID: 5423BR

* Troy Corporation; Florham Park NJ;
Global Trade and Compliance Manager
; Requisition ID: 306

* United Technologies Corporation, Otis; United States Government Compliance Officer and Contract Specialist; Requisition ID: 30518BR

* United Technologies Corporation, Pratt & Whitney; East Hartford CT;
Specialist, ITC, Export Authorizations
; Requisition ID: 30745BR  

* United Technologies Corporation, UTC Aerospace Systems; Charlotte NC;
Self-Assessment Senior Specialist
; Requisition ID: 13727BR 
* United Technologies Corporation, UTC Aerospace Systems; Charlotte NC;
Program Manager, Customs
; Requisition ID: 31331BR 
* United Technologies Corporation, UTC Aerospace Systems; Charlotte NC;
Sr. Manager, ITC Contracts & Central Functions
; Requisition ID: 31767BR
* United Technologies Corporation, UTC Aerospace Systems; Charlotte NC;
Sr. Mgr, Intl Trade Compl

; Requisition ID: 30525BR  

* United Technologies Corporation, UTC Aerospace Systems; Princeton NJ;
Specialist, International Trade Compliance
; Requisition ID: 22945BR

* United Technologies Corporation, UTC Aerospace Systems; Colorado Springs CO; 
Intl Trade Compliance Site Lead
; Requisition ID: 28655BR

* United Technologies Corporation, UTC Aerospace Systems; Danbury CT;
ITC Site Lead
; Requisition ID: 30565BR

* United Technologies Corporation, UTC Aerospace Systems; Danbury CT; 
Sr Analyst, International Trade Compliance
; Requisition ID: 28174BR
* United Technologies Corporation, UTC Aerospace Systems; Phoenix AZ;
Manager, ITC Operational Excellence
; Requisition ID: 28044BR

* United Technologies Corporation, UTC Aerospace Systems; Phoenix AZ;

* United Technologies Corporation, UTC Aerospace Systems; Phoenix AZ; Sr Analyst, International Trade Compliance; Requisition ID: 30058BR 
* United Technologies Corporation, UTC Aerospace Systems; Pueblo CO; 
Sr Analyst, Intl Trade Compliance
; Requisition ID: 27643BR


* United Technologies Corporation, UTC Aerospace Systems; Westford MA;
Segment Lead, International Trade Compliance
;
Requisition ID: 30451BR

* Virgin Galactic; Mojave CA;
Export Compliance Officer
; Requisition ID: 2016-2355

* Vista Outdoor; Overland Park KS;
Import Specialist, International Trade Operations
; Requisition ID: R0000433

* Westinghouse Electric Company; Cranberry Township PA;
Lead, Global Nuclear Export Control

* Zimmer Biomet; Miami FL; 
Trade Compliance Manager – Latin America
; Requisition ID: 542281


* * * * * * * * * * * * * * * * * * * *

ENEDITOR’S NOTES

 

“There are better starters than me, but I’m a strong finisher.”

  – Usain Bolt (Usain St. Leo Bolt, born 21 Aug. 1986, is a Jamaican sprinter. Regarded as the fastest human being ever timed, he is the first man to hold both the 100 meter and 200 meter world records since fully automatic time became mandatory. He also holds the world record in the 4 × 100 meter relay. He is the reigning World and Olympic champion in these three events.)

 

“Language… has created the word ‘loneliness’ to express the pain of being alone. And it has created the word ‘solitude’ to express the glory of being alone.”

  – Paul Tillich (Paul Johannes Tillich, 1886-1965, was a German American Christian existentialist philosopher and Lutheran theologian, widely regarded as one of the most influential theologians of the twentieth century.)

 

Monday is pun day.

 

Q.  “How did they know the woman in Jaws had dandruff?”

A.  “They found her head and shoulders on the beach.”

  – Valerie Hood, Easthampton, MA
* * * * * * * * * * * * * * * * * * * *

EN_a217
. Are Your Copies of Regulations Up to Date?
(Source: Editor)

The official versions of the following regulations are published annually in the U.S. Code of Federal Regulations (C.F.R.), but are updated as amended in the Federal Register.  Changes to applicable regulations are listed below.
 
*
ATF ARMS IMPORT REGULATIONS
: 27 CFR Part 447-Importation of Arms, Ammunition, and Implements of War
  – Last Amendment: 15 Jan 2016: 81 FR 2657-2723: Machineguns, Destructive Devices and Certain Other Firearms; Background Checks for Responsible Persons of a Trust or Legal Entity With Respect To Making or Transferring a Firearm 
 
*
CUSTOMS REGULATIONS
: 19 CFR, Ch. 1, Pts. 0-199
  – Last Amendment: 22 Mar 2015: 81 FR 15159: Customs and Border Protection’s Bond Program; Correction 

* DOD NATIONAL INDUSTRIAL SECURITY PROGRAM OPERATING MANUAL (NISPOM): DoD 5220.22-M
  – Last Amendment: 18 May 2016: Change 2: Implement an insider threat program; reporting requirements for Cleared Defense Contractors; alignment with Federal standards for classified information systems; incorporated and canceled Supp. 1 to the NISPOM  (Summary here.)

* EXPORT ADMINISTRATION REGULATIONS (EAR): 15 CFR Subtit. B, Ch. VII, Pts. 730-774 
  – Last Amendment: 19 Aug 2016: 81 FR 55372-55374: Temporary General License: Extension of Validity  

  
*
FOREIGN ASSETS CONTROL REGULATIONS (OFAC FACR)
: 31 CFR, Parts 500-599, Embargoes, Sanctions, Executive Orders
  – Last Amendment: 18 May 2016: 81 FR 31169-31171: Burmese Sanctions Regulations   
 
*
FOREIGN TRADE REGULATIONS (FTR)
: 15 CFR Part 30
  – Last Amendment: 15 May 2015; 80 FR 27853-27854: Foreign Trade Regulations (FTR): Reinstatement of Exemptions Related to Temporary Exports, Carnets, and Shipments Under a Temporary Import Bond 
  – HTS codes that are not valid for AES are available
here.
  – The latest edition (9 Mar 2016) of Bartlett’s Annotated FTR (“BAFTR”), by James E. Bartlett III, is available for downloading in Word format. The BAFTR contains all FTR amendments, FTR Letters and Notices, a large Index, and footnotes containing case annotations, practice tips, and Census/AES guidance.  Subscribers receive revised copies every time the FTR is amended. The BAFTR is available by annual subscription from the Full Circle Compliance website.  BITAR subscribers are entitled to a 25% discount on subscriptions to the BAFTR.
 
*
HARMONIZED TARIFF SCHEDULE OF THE UNITED STATES (HTS, HTSA or HTSUSA)
, 1 Jul 2016: 19 USC 1202 Annex.  (“HTS” and “HTSA” are often seen as abbreviations for the Harmonized Tariff Schedule of the United States Annotated, shortened versions of “HTSUSA”.)
  – Last Amendment: 5 Aug 2016; Harmonized System Update (HSU) 1610, containing 12,995 ABI records and 2,287 harmonized tariff records.
  – HTS codes for AES are available
here
.
  – HTS codes that are not valid for AES are available
here.
 
INTERNATIONAL TRAFFIC IN ARMS REGULATIONS (ITAR): 22 C.F.R. Ch. I, Subch. M, Pts. 120-130 (Caution — The ITAR as posted on GPO’s eCFR website and linked on the DDTC often takes several weeks to update the latest amendments.)
   – Latest Amendment:
17 Aug 2016: 81 FR 54732-54737: Amendment to the International Traffic in Arms Regulations: Procedures for Obtaining State Department Authorization To Export Items Subject to the Export Administration Regulations; Revision to the Destination Control Statement; and Other Changes
  – The only available fully updated copy (latest edition 17 Aug 2016) of the ITAR is contained in Bartlett’s Annotated ITAR (“BITAR”), by James E. Bartlett III.  The BITAR contains all ITAR amendments to date, plus a large Index, and over 700 footnotes containing case annotations, practice tips, DDTC guidance, and explanations of errors in the official ITAR text.  Subscribers receive updated copies of the BITAR in Word by email, usually revised within 24 hours after every ITAR amendment.  The BITAR is THE essential tool of the ITAR professional.  The BITAR is available by annual subscription from the Full Circle Compliance website.  BAFTR subscribers receive a 25% discount on subscriptions to the BITAR, please contact us to receive your discount code.

* * * * * * * * * * * * * * * * * * * *

EPEDITORIAL POLICY

* The Ex/Im Daily Update is a publication of FCC Advisory B.V., edited by James E. Bartlett III and Alexander Bosch, and emailed every business day to approximately 7,500 readers of changes to defense and high-tech trade laws and regulations. We check the following sources daily: Federal Register, Congressional Record, Commerce/AES, Commerce/BIS, DHS/CBP, DOJ/ATF, DoD/DSS, DoD/DTSA, 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.

* INTERNET ACCESS AND BACK ISSUES: The National Defense Industrial Association (“NDIA”) posts the Daily Update on line, and maintains back issues since August, 2009 here.

* RIGHTS & RESTRICTIONS: This email contains no proprietary, classified, or export-controlled information. All items are obtained from public sources or are published with permission of private contributors, and may be freely circulated without further permission. Any further use of contributors’ material, however, must comply with applicable copyright laws.

* CAVEAT: The contents of this newsletter cannot be relied upon as legal or expert advice.  Consult your own legal counsel or compliance specialists before taking actions based upon news items or opinions from this or other unofficial sources.  If any U.S. federal tax issue is discussed in this communication, it was not intended or written by the author or sender for tax or legal advice, and cannot be used for the purpose of avoiding penalties under the Internal Revenue Code or promoting, marketing, or recommending to another party any transaction or tax-related matter.

* SUBSCRIPTIONS: Subscriptions are free.  Subscribe by completing the request form on the Full Circle Compliance website.

* TO UNSUBSCRIBE: Use the Safe Unsubscribe link below.

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