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16-0824 Wednesday “The Daily Bugle”

16-0824 Wednesday “Daily Bugle”

Wednesday, 24 August 2016

TOP
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 
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  1. Commerce/BIS: Transportation and Related Equipment Technical Advisory Committee to Meet on 7 Sep in Wash DC 
  2. Commerce/BIS: Materials Technical Advisory Committee to Meet on 8 Sep in Wash DC 
  3. Commerce/BIS: Regulations and Procedures Technical Advisory Committee to Meet on 13 Sep in Wash DC  
  4. DHS/CBP Continues to Seek Comments on ACE Capability Addition to Electronically File Protests 
  1. Ex/Im Items Scheduled for Publication in Future Federal Register Editions 
  2. Commerce/Census: “ACE AESDirect Scheduled Outage, 27-28 Aug” 
  3. Commerce/BIS: Spectrolab, Inc. of Sylmar, CA, to Pay $90,000 to Settle Alleged Export Violations 
  4. Commerce/BIS: RHDC International, LLC (Houston), to Pay $9,000 to Settle Alleged Antiboycott Violations 
  5. Commerce/BIS Posts Notice on SNAP-R and STELA Status 
  6. OMB/OIRA Reviews of Proposed Ex/Im Regulations 
  7. State/DDTC Posts Address Change for AeroParts Engineering & Fabrication 
  8. UK BIS Blog: “Digitising the End-User Undertaking” 
  1. Expeditors News: “USITC Releases Import Monitoring Tool” 
  2. SpaceNews: “NASA Advanced Technology Reports Taken Offline After Export Control Issue” 
  1. The Trade Practitioner: “Civil Monetary Penalties for Sanctions and Export Control Violations Set to Increase” 
  2. T.P. O’Toole, R.A. Mojica & A. Walsh: “Five Steps to Protect your Company from CBP Enforcement Actions on Imports Made by Forced Labor” 
  3. Gary Stanley’s ECR Tip of the Day 
  4. R.C. Burns: “A Decade of Blogging” 
  1. The Best Customs Broker Course Presents Houston Boot Camp, 19-22 Sep 
  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 (23 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. Commerce/BIS: Transportation and Related Equipment Technical Advisory Committee to Meet on 7 Sep in Wash DC

 
81 FR 57887: Transportation and Related Equipment Technical Advisory Committee; Notice of Partially Closed Meeting
   The Transportation and Related Equipment Technical Advisory Committee will meet on September 7, 2016, 9:30 a.m., in the Herbert C. Hoover Building, Room 3884, 14th Street between Constitution & Pennsylvania Avenues NW., Washington, DC. The Committee advises the Office of the Assistant Secretary for Export Administration with respect to technical questions that affect the level of export controls applicable to transportation and related equipment or technology. …
   The open session will be accessible via teleconference to 20 participants on a first come, first serve basis. To join the conference, submit inquiries to Ms. Yvette Springer at Yvette.Springer@bis.doc.gov no later than August 31, 2016.
   For more information, call Yvette Springer at (202) 482-2813.
   Dated: August 19, 2016.
Yvette Springer, Committee Liaison Officer.
* * * * * * * * * * * * * * * * * * * *

EXIM_a22. Commerce/BIS: Materials Technical Advisory Committee to Meet on 8 Sep in Wash DC

(Source: Federal Register) [Excerpts.]
 
81 FR 57888: Materials Technical Advisory Committee; Notice of Partially Closed Meeting
   The Materials Technical Advisory Committee will meet on September 8, 2016, 10 a.m., Herbert C. Hoover Building, Room 3884, 14th Street between Constitution & Pennsylvania Avenues NW., Washington, DC. The Committee advises the Office of the Assistant Secretary for Export Administration with respect to technical questions that affect the level of export controls applicable to materials and related technology. …
   The open session will be accessible via teleconference to 20 participants on a first come, first serve basis. To join the conference, submit inquiries to Ms. Yvette Springer at Yvette.Springer@bis.doc.gov, no later than September 1, 2016. …
   For more information, call Yvette Springer at (202) 482-2813.
   Dated: August 19, 2016.

Yvette Springer, Committee Liaison Officer.

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

EXIM_a33. Commerce/BIS: Regulations and Procedures Technical Advisory Committee to Meet on 13 Sep in Wash

(Source: Federal Register) [Excerpts.]
 
57887-57888: Regulations and Procedures Technical Advisory Committee; Notice of Meeting
   The Regulations and Procedures Technical Advisory Committee (RPTAC) will meet September 13, 2016, 9:00 a.m., Room 3884, in the Herbert C. Hoover Building, 14th Street between Constitution and Pennsylvania Avenues NW., Washington, DC. The Committee advises the Office of the Assistant Secretary for Export Administration on implementation of the Export Administration Regulations (EAR) and provides for continuing review to update the EAR as needed. …
   The open session will be accessible via teleconference to 20 participants on a first come, first serve basis. To join the conference, submit inquiries to Ms. Yvette Springer at Yvette.Springer@bis.doc.gov no later than September 6, 2016. …
   For more information, call Yvette Springer at (202) 482-2813.
   Dated: August 19, 2016.
Yvette Springer, Committee Liaison Officer.
* * * * * * * * * * * * * * * * * * * *

EXIM_a44. DHS/CBP Continues to Seek Comments on ACE Capability Addition to Electronically File Protests

(Source: Federal Register) [Excerpts.]
 
81 FR 57928-57929: Agency Information Collection Activities: Application To Use the Automated Commercial Environment (ACE)
* AGENCY: U.S. Customs and Border Protection, Department of Homeland Security.
* ACTION: 30-Day notice and request for comments; Extension and revision of an existing collection of information. …
* DATES: Written comments should be received on or before September 23, 2016 to be assured of consideration.
* ADDRESSES: Interested persons are invited to submit written comments on this proposed information collection to the Office of Information and Regulatory Affairs, Office of Management and Budget. Comments should be addressed to the OMB Desk Officer for Customs and Border Protection, Department of Homeland Security, and sent via electronic mail to oira_submission@omb.eop.gov or faxed to (202) 395-5806.
* FOR FURTHER INFORMATION CONTACT: Requests for additional information should be directed to Paperwork Reduction Act Officer, U.S. Customs and Border Protection, Regulations and Rulings, Office of Trade, 90 K Street NE., 10th Floor, Washington, DC 20229-1177, or via email (CBP_PRA@cbp.dhs.gov). Please note contact information provided here is solely for questions regarding this notice. Individuals seeking information about other CBP programs please contact the CBP National Customer Service Center at 877-227-5511, (TTY) 1-800-877-8339, or CBP Web site at https://www.cbp.gov/. For additional help: https://help.cbp.gov/app/home/search/1.
* SUPPLEMENTARY INFORMATION: …
  – Title: Application to Use the Automated Commercial Environment (ACE). …
  – Abstract: …
   CBP is proposing to add the capability of electronically filing protests to ACE. A protest is a procedure whereby a private party may administratively challenge a CBP decision regarding imported merchandise and certain other CBP decisions. Trade members wishing to establish a protest filer account will need to submit the following data elements: …
   Dated: August 18, 2016.
Seth Renkema, Branch Chief, Economic Impact Analysis Branch, U.S. Customs and Border Protection.
* * * * * * * * * * * * * * * * * * * *

OGSOTHER GOVERNMENT SOURCES

OGS_a15. Ex/Im Items Scheduled for Publication in Future Federal Register Editions
(Source: Federal Register)

 
* Commerce; Industry and Security Bureau; NOTICES; Meetings: President’s Export Council Subcommittee on Export Administration [Publication Date: 25 August 2016.]

* Commerce; International Trade Administration; NOTICES; Meetings: President’s Export Council [Publication Date: 25 August 2016.]  

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

 
This message is intended for ACE AESDirect filers ONLY. If you are not an ACE AESDirect filer, you are not affected by this outage.
 
The outage is effective 10:00pm EST Saturday, August 27 – 4:00am EST Sunday, August 28.
 
ACE AESDirect filers may submit shipments under the AES Downtime Policy. State Department licensable shipments cannot be exported under the AES Downtime Policy and must be held until the connection is restored and an Internal Transaction Number (ITN) is received. Once connection is brought back on-line after the outage, all shipments that were exported under the AES Downtime Policy must be filed along with any new AES transactions.
 
If you use the AES Downtime Policy for export, please contact the port from which you will be exporting. In lieu of the AES Proof of Filing citation, please use the AES Downtime citation, which consists of the phrase AESDOWN, your individual company’s Filer ID, followed by the date.
 
For example: AESDOWN 123456789 08/27/2016
 
Please see the CBP web site for further information on the AES Downtime Policy.
 
For further information or questions, contact the U.S. Census Bureau’s Data Collection Branch.
 
  – Telephone: (800) 549-0595, select option 1 for AES
  – Email: askaes@census.gov

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

 
* Respondent: Spectrolab, Inc., Sylmar, CA.
* Charges: One charge of 15 CFR 764.2(e), Acting with Knowledge of a Violation:
   On or about August 27, 2014, Spectrolab sold and transferred an item to be exported from the United States and subject to the Regulations with knowledge or reason to know that a violation of the Regulations was intended or about to occur in connection with the item. Specifically, Spectrolab sold and transferred a Large Area Pulsed Solar Simulator (“LAPSS II”), valued at $414,679 and designated under the Regulations as EAR99, for export to Pakistan, knowing or with reason to know that the intended end user was Pakistan’s Space and Upper Atmosphere Research Commission (“SUPARCO”), that SUPARCO was listed on BIS’s Entity List, that a license was required to export the item to SUPARCO, and that no such export license had been obtained for this export.  
* Penalty: Civil penalty of $90,000.
* Debarred: Not if penalty is paid as agreed. 
* Date of Order: 22 August 2016.

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

        
* Respondent: RHDC International, LLC (Houston)
* Case No: 14-03
* Charges: Five charges of 15 C.F.R. §760.5 – Failing to Report the Receipt of a Request to Engage in a Restrictive Trade Practice or Foreign Boycott Against a Country Friendly to the United States:
   During the period January 2011 through January 2013, RHDC engaged in transactions involving the sale and/or transfer of goods or services (including information) from the United States to Kuwait, Lebanon, Qatar and the United Arab Emirates, activities in the interstate or foreign commerce of the United States, as defined in Section 760.1(d) of the Regulations. In connection with these activities, RHDC, on five occasions, received a request to take an action which would have the effect of furthering or supporting a restrictive trade practice or unsanctioned foreign boycott. RHDC failed to report its receipts of these requests to the Department of Commerce, as required by Section 760.5 of the Regulations.
* Fine or Civil Settlement: Civil penalty of $9,000
* Debarred or Suspended from Export Transactions: Not if penalty is paid as agreed.
* Date of Order: 11 August 2016
* * * * * * * * * * * * * * * * * * * *

OGS_a59. Commerce/BIS Posts Notice on SNAP-R and STELA Status

(Source: Commerce/BIS)
 
On Aug 19th, BIS experienced technical failure of one of our computer security devices and as a result, SNAP-R and STELA could not be accessed.   BIS took round-the-clock action to correct this issue and service was restored on the evening of Aug 22nd. This failure was not caused by a cyber-related issue and no data were compromised or exfiltrated. BIS takes stewardship of your export licensing data seriously and did not make the system available for use until we were confident in the integrity and security of your data. Thank you for your patience while we resolved this issue.

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OGS_a610. OMB/OIRA Reviews of Proposed Ex/Im Regulations
(Source:
OMB/OIRA
)     
 
* Commerce Control List: Removal of Certain Nuclear Nonproliferation (NP) Column 2 Controls
  – AGENCY: DOC-BIS
  – STAGE: Final Rule
  – RECEIVED DATE: 08/23/2016
  – RIN: 0694-AH04
  – Status: Pending Review
* * * * * * * * * * * * * * * * * * * *

OGS_a711. State/DDTC Posts Address Change for AeroParts Engineering & Fabrication
(Source: State/DDTC) [Excerpts.]
 
Effective immediately, AeroParts Engineering & Fabrication, Christiaan Huygensstraat11, 3261 LP Oud-Beijerland, The Netherlands will change as follows: AeroParts Engineering & Fabrication, Albert Einsteinstraat 6, 3261 LP Oud-Beijerland, The Netherlands. 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. …
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OGS_a812. UK BIS Blog: “Digitising the End-User Undertaking”

(Source: UK BIS Blog)
 
One of an exporter’s more onerous tasks is the completion of an end-user undertaking. These are commonplace across the export control community and usually come in the form of paper documents that an exporter has to get their customers to fill out in advance of trade, outlining what the end user plans to do with the exported items.
 
There’s no doubting the importance of an end-user undertaking; nobody wants the items listed in the UK Strategic Export Control Lists to end up in the wrong hands, to be used in ways that can cause harm to innocent parties. We need to know where things are going so we can ensure safe trade – it’s the absolute purpose of export control.
 
That said, the process can be a real pain for exporters because of how an EUU has to be filled out, and how documents need to be shifted back and forth between the parties to the deal. Delays, miscommunication, documents lost, all these and others can add to the difficulty of an already tricky business.
 
So we’re going to digitise it – with your help.
 
EUU and you
 
Our plan is to include a digital end-user undertaking as part of the implementation of SIELs and other licence types in the new licensing system. OGELs don’t normally require an end-user undertaking, and as we’re moving those across from SPIRE first our work on the EUU is in its infancy, but we’re now at the stage where we need input from exporters.
 
Can you answer these questions for us?
 
  – How often do you need to get an EUU?
  – What do you find most painful about the paper-based EUU system?
  – What do you want to see in a digital version of the EUU?
 
So we can make a system that works for exporters, we need to know what you don’t like about how the EUU works now. We already have an idea from previous research where issues often arise while completing an EUU but at this point we need those assumptions either confirmed or challenged, and the more feedback we can get the better.
 
An example of the type of information we’re after involves emails. With a digital system, it seems a retrograde step to ask you to fill out the end user’s details and then print out a form to physically send to them – our assumption is that our users will want the end user to fill out their part of the documentation online as well.
 
But will this cause any problems? Do you work with customers who don’t have an email address, meaning we need to retain some form of paper-led service, or does virtually everyone in the import/export field in 2016 communicate electronically?
 
We’re also looking for people who actually fill out the end-user undertakings. If you complete EUUs either as an importer or in any other capacity, we’d very much like to hear your views on the process. We’re interested in:
 
  – at what stage in the lifecycle of a deal you would expect to receive an EUU request
  – how long it takes to complete an EUU
  – whether there’s anything you need to complete an EUU that you don’t normally have to hand (ie details that you have to go and find out)
 
If you, or anyone you know, has filled out EUUs in the past, we’d love to know all about it.
 
Suggestions and requests
 
If you can help us out in this area, you can either respond with what you need from the EUU in the comments beneath this blog, or get in touch with our researcher Andrea (andrea.agueci@digital.bis.gov.uk). We’re aiming to have a prototype of the digital EUU ready soon, at which point we’ll be looking for users to help us test it so if you’re willing to get involved with that please indicate that when you get in touch.
 
Also, if you have any contacts who you have sent an EUU request to in the past, who you think might be willing to discuss the process with us, please ask them to contact Andrea at the address above. Hopefully we can smooth this process out for both exporter and end user, but we’ll need your help to get there.

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

NWSNEWS

NWS_a113. Expeditors News: “USITC Releases Import Monitoring Tool”
(Source: Expeditors News)
 
On August 23, 2016 the U.S. International Trade Commission (USITC) announced in a News Release the launch of its new Import Monitoring Tool, which examines whether import data has changed over a period of time and allows imports to access that data.
 
The Import Monitoring Tool was created to comply with Section 603 of the Trade Facilitation and Trade Enforcement Act of 2015 (TFTEA), which stated that the ITC is required to, “make available on its website an import monitoring tool that provides public access to data on the volume and value of goods imported into the United States.”
 
The Import Monitoring Tool is now available and can be accessed here.
 
The full News Release can be accessed here.
* * * * * * * * * * * * * * * * * * * *

NWS_a214. SpaceNews: “NASA Advanced Technology Reports Taken Offline After Export Control Issue”
(Source: SpaceNews) [Excerpts.] 
 
NASA has taken offline technical reports associated with a cutting-edge technology program out of concerns of a possible export control breach, an agency official said Aug. 24.
 
Speaking at annual symposium of the NASA Innovative Advanced Concepts (NIAC) program in Raleigh, North Carolina, Jason Derleth, the NIAC program executive at NASA Headquarters, said the final reports associated with various NIAC research projects have been removed from the agency’s website after one of them appeared to contain information that ran afoul of the International Traffic in Arms Regulations (ITAR) export control rules.
 
  “We’ve had to remove the studies because of a potential ITAR violation by one of our fellows,” Derleth said. “So now we’re going through and doing all of the ITAR checks to make sure that everything is perfectly legal.”
 
He did not elaborate on the specific study or technology issue that raised the potential of an ITAR violation. He did say that the review would take a “few months,” after which the reports would be placed back online.
 
The NASA website makes no mention of export control as the cause of the missing reports. “Due to technical difficulties, we have had to remove the NIAC final reports,” the page on the site that previously listed funded studies with links to final reports. “We are working to resolve the issues and will re-post as soon as is feasible.” …
 
NIAC is part of NASA’s Space Technology Mission Directorate, which incorporates a number of programs for developing technologies at various stages of maturity. While much of that work is related to NASA’s long-term plans for human missions to Mars, NIAC is free to explore other technologies that could render some of those plans obsolete.
 
  “NIAC isn’t here to walk along the planned technology pathway,” Derleth said at the workshop. “We’re here to leapfrog, skip and break the roadmaps.”
* * * * * * * * * * * * * * * * * * * *

COMMCOMMENTARY

COMM_a115. The Trade Practitioner: “Civil Monetary Penalties for Sanctions and Export Control Violations Set to Increase”
 
Under the authority of the Federal Civil Penalties Inflation Adjustment Act of 1990 (the Act), as amended, OFAC is adjusting for inflation the maximum amount of the civil monetary penalties that may be assessed under its relevant regulations. For instance, for penalties assessed under the authority of the International Emergency Economic Powers Act (IEEPA), penalties will increase to the greater of US$284,582 or twice the amount of the underlying transaction per violation. Importantly, the new civil monetary penalty amounts will only be applicable to civil monetary penalties assessed after 1 August 2016, where the associated violations occurred after 2 November 2015.
 
The Act applies also to penalty provisions of the Arms Export Control Act (AECA) (22 U.S.C. 2751 et seq.), which authorises the International Traffic in Arms Regulations (ITAR). Effective 1 August 2016, civil monetary penalties now capped at US$500,000 per violation of the controls on the temporary import and export of defence articles and defence services will increase to US$1,094,010 per ITAR violation.
* * * * * * * * * * * * * * * * * * * *

COMM_a216. T.P. O’Toole, R.A. Mojica & A. Walsh: “Five Steps to Protect your Company from CBP Enforcement Actions on Imports Made by Forced Labor”
 
* Authors: Timothy P. O’Toole, Esq., totoole@milchev.com, 202-626-5552; Richard A. Mojica, Esq., rmojica@milchev.com, 202-626-1571; and Austen Walsh, Esq., awalsh@milchev.com, 202-626-5566. All of
Miller & Chevalier Chartered.
 
The Commissioner of U.S. Customs and Border Protection (CBP) has promised more enforcement actions against companies importing products made by forced labor. His statements follow an amendment to the customs laws earlier this year which closed a loophole exempting products that were in short supply in the United States from the general prohibition on forced labor imports, set forth in Section 307 of the Tariff Act of 1930. Since this change, CBP created a task force focused on the interdiction of forced labor imports, and has detained shipments of merchandise suspected of being made by forced labor. Given the expected uptick in CBP enforcement actions, importers should consider conducting forced labor-focused due diligence on their supply chains, starting with the steps discussed below.

The Forced Labor Statute and the Amendment  

As amended, Section 307 of the Tariff Act of 1930, known as the Forced Labor Statute, prohibits the importation of products made, wholly or in part, with convict labor, forced labor (including child labor) or indentured labor under penal sanctions — with no exceptions.

CBP has not yet amended its regulations or issued formal guidance on its procedures for investigating allegations of forced labor. However, according to a fact sheet posted on CBP’s website, anyone who has reason to believe imported products are made by forced labor may petition CBP to initiate an investigation. If CBP determines that the allegations “reasonably but not conclusively” indicate that the merchandise was manufactured by forced labor, CBP will issue a withholding release order (WRO), effectively detaining the merchandise at the U.S. border. At that point, an importer will be given the opportunity to petition CBP for release (i.e., prove that the merchandise is, in fact, not manufactured by forced labor). If the proof submitted does not establish the admissibility of the merchandise, or if none is provided, CBP will exclude the shipment and initiate forfeiture proceedings. Alternatively, the importer may choose to export the merchandise.

Many questions still remain about this investigative process. For example, CBP has not yet clarified what satisfies the “reasonably but not conclusively” standard to issue a WRO, or what an importer must do to successfully petition the release of detained merchandise. It is also not clear how CBP will address a shipment where products suspected of being made by forced labor are commingled with others.

Renewed Enforcement of the Forced Labor Statute  

CBP is now required to issue periodic reports to Congress on its efforts to enforce the prohibition on forced labor, including the number of instances in which merchandise was denied entry. This reporting obligation will likely result in an increased emphasis on forced labor investigations and detentions. Indeed, CBP has already issued its first three WROs under the new law (one relating to an artificial sweetener, the others on chemicals imported from China). CBP also announced that it increased the size of its forced labor task force in order to enhance its ability to self-initiate investigations.

Steps to Consider  

Below are five steps that your company should consider to lower the risk of forced labor of enforcement actions by CBP:  

  (1) Learn how to identify “red flags” and vulnerability to forced labor in your supply chain
. Although specific risk factors vary by industry and geographic area, monitoring for red flags such as the use of labor recruiters, the presence of migrant workers, a high incidence of temporary workers and suppliers appearing on a U.S. government blacklist is critical to detect merchandise produced by forced labor in your company’s supply chain. The presence of red flags does not necessarily indicate a violation has occurred, but should stimulate further scrutiny by your company.

  (2) Screen the names of your company’s suppliers against the applicable U.S. government blacklists
. The U.S. Department of Labor maintains a list of goods and their source countries which it has reason to believe are produced by child labor or forced labor (available here). CBP also publishes a list of the foreign entities and commodities subject to an active detention order on its website (here). Screening your company’s suppliers against those lists is an effective step to mitigate risk; however, it is important to do more. Screening often produces complicated issues about whether a match has actually occurred and what to do after it is determined that a supplier is on one of the applicable lists. A trained, experienced person must be part of the screening process to ensure it works as efficiently and as effectively as possible.

  (3) Insert a Forced Labor Statute compliance clause in supplier contracts and require periodic certifications
. In addition to representations concerning the prohibition on forced labor, the contract clause should set forth supplier obligations designed to protect your company. The most effective contract clauses require suppliers to actively monitor their own supply chains and establish the right to audit the supplier and to terminate the agreement in the event of noncompliance with the prohibition on forced labor. Consider requiring suppliers to certify compliance with that clause on a periodic basis.

  (4) Offer training to employees and implement an internal reporting mechanism
. For company employees to carry out a policy against the import of goods produced through forced labor, they must be trained on that policy and should understand how to report potential violations. Trainings should make employees aware of your company’s policy of compliance and should also sensitize employees to the type of situations in which risks could arise. In addition, your company should ensure that employees are given ample resources to report possible violations as quickly as possible. Anonymous hotlines or other similar reporting mechanisms can serve as an important tool to allow your company to get ahead of any problems, rather than being blindsided.

  (5) Audit high-risk suppliers
. When red flags regarding a current or potential supplier arise, your company should consider auditing that supplier. Such audits may include interviews with relevant actors (such as managers, workers, labor recruiters and suppliers) as well as a review of personnel files, employment records and other relevant documentation. While a lot remains to be seen with regard to the CBP’s enforcement of the prohibition on forced labor, it is clear that a supply chain audit report will be the most effective way to demonstrate that detained merchandise was not produced with forced labor.
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COMM_a317. 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 BIS Entity List does not include U.S. persons.
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COMM_a418. R.C. Burns: “A Decade of Blogging”
(Source:
Export Law Blog
. Reprinted by permission.)
 
* Author: R. Clifton Burns, Esq., Bryan Cave LLP, Wash DC, 202-624-3949,
Clif.Burns@bryancave.com
)
 
Ten years ago from this past Sunday, on August 21, 2006, I put up the first post on this blog. I had zero readers. I bet no one ever even read that post until, perhaps, today. In fact, according to my server logs, I had a grand total of 53 people come to read the blog in August 2006, and most of them were probably web-crawling robots.
 
Since then, I’ve put up 1,370 posts. The site has had 3.9 million visits. Each month, an average of 8,000 unique visitors drop by. And for that, I want to thank each and every one of my readers who have made this possible.
 
That includes the anonymous BIS agent in New Jersey who for several years posted anonymously from his home computer comments reviling me as an uneducated imposter. His chief complaint was that I referred to “BIS ALJs” rather than his preferred, and more eloquent, alternative: “Coast Guard ALJs Who Are Assigned To Hear BIS Cases But Who Are Paid By The Coast Guard Which In Turn Is Reimbursed By BIS For The ALJs’ Time.” I think he may have, in one of his comments, even called for my law school to revoke my degree and, in another, for me to refund all the legal fees that I had collected in my lifetime. He hasn’t been around for quite some time and I rather miss him.
 
I also want to thank the commenters who caught and pointed out things that I actually got wrong or that I should have mentioned but didn’t. I’ve learned things from them as I hope readers may have learned things from me.
 
Without question, thanks are also due to Jim Bartlett, who has regularly republished each and every post in The Daily Bugle, even ones where I tried to sneak in naughty words or risqué double entendres that might offend his family audience.
 
I’ve tried these last ten years to make export law entertaining, which, I suppose, is rather like trying to stage a punk rock version of La Bohème with a fifth grade cast and a pit orchestra of ukuleles – easier said than done and not something that will appeal to everyone. But once you’ve gone through the effort to rent the house and put a show like that on the stage, there’s no point in cancelling the performance.

[Editor’s note to Clif:  Your Export Law Blog is a valued feature of the Daily Bugle, and I have heard from several of my readers, “The first thing I do is go the bottom and read the Clif Burns column!” How you find the time during your busy law practice for your well-researched and creative writing is a mystery. So when are you going to publish your novel? — Jim Bartlett]
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TEEX/IM TRAINING EVENTS & CONFERENCES

TE_a119
. The Best Customs Broker Course Presents Houston Boot Camp, 19-22 Sep

(Source: Jessica Ortiz; jessicao@exportimportlaw.com)

* What: 4-Day Boot Camp to prepare you for the October 2016 exam
* When: September 19- 22, 2016
* Where: CEVA Logistics Corporate Office, 15414 International Plaza, Houston, Texas
* Sponsor: CEVA Logistics 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.

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

ENEDITOR’S NOTES

 

“Out of the water, I am nothing.”

  – Duke Kahanamoku (Duke Paoa Kahinu Mokoe Hulikohola Kahanamoku, 1890-1968, was a native Hawaiian competition swimmer who popularized the ancient Hawaiian sport of surfing.  He was a five-time Olympic medalist in swimming.)

 

“The reason why worry kills more people than work is that more people worry than work.”

  – Robert Frost (Robert Lee Frost, 1874-1963, was an American poet.  Frost was named Poet laureate of Vermont, and received four Pulitzer Prizes for Poetry.)

“People who insist on telling their dreams are among the terrors of the breakfast table.”

 – Max Beerbohm (Sir Henry Maximilian Beerbohm, 1872-1956, was an English essayist, parodist, and caricaturist.)

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EN_a221
. 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: 23 Aug 2016: 81 FR 57451-57456: Addition of Certain Persons to the Entity List  

  
*
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.

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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.

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