;

16-0902 Friday “The Daily Bugle”

16-0902 Friday “Daily Bugle”

Friday, 2 September 2016

TOPThe 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. (Note: The Daily Bugle will not be published Monday, 5 September, a U.S. national holiday.)  

[No items of interest noted today.]

  1. Ex/Im Items Scheduled for Publication in Future Federal Register Editions 
  2. Commerce/BIS: (No new postings.) 
  3. DoD/DSS Announces NISPOM Change 2, Insider Threat Workshops 
  4. Justice: “Pakistani National Extradited and Sentenced for Attempting to Export Sensitive Technology for Pakistani Military” 
  5. State/DDTC: (No new postings.) 
  6. Treasury/OFAC Posts Russia/Ukraine-related General License 
  1. Expeditors News: “CBP Releases Harmonized System Update”
  2. ST&R Trade Report: “Dates and Deadlines: Importer Security Filing, Customs Regs, Cosmetics, NAFTA”
  3. ST&R Trade Report: “Trade Community Seeking Delay in ACE Transition for Drawback and Reconciliation”
  1. F.A. DeBusk, M. Duffy & T. Grove: “New OFAC Sanctions Target Russian Companies” 
  2. M. Miller Proctor: “Departments of Commerce and State Harmonize Export Destination Control Statements under Export Administration Regulations and International Traffic in Arms Regulations” 
  3. R.C. Burns: “Export Defendant Pays for Requesting Jury Trial” 
  1. Friday List of Approaching Events 
  1. Bartlett’s Unfamiliar Quotations 
  2. Are Your Copies of Regulations Up to Date? Latest Changes: ATF (15 Jan 2016), Customs (26 Aug 2016), DOD/NISPOM (18 May 2016), EAR (23 Aug 2016), FACR/OFAC (18 May 2016), FTR (15 May 2015), HTSUS (30 Aug 2016), ITAR (17 Aug 2016)

EXIMEX/IM ITEMS FROM TODAY’S FEDERAL REGISTER

EXIM_a1


[No items of interest noted today.]

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

OGSOTHER GOVERNMENT SOURCES

OGS_a11. Ex/Im Items Scheduled for Publication in Future Federal Register Editions
(Source: Federal Register)

* Commerce; Industry and Security Bureau; RULES; Validated End-User Authorization: Boeing Tianjin Composites Co., Ltd.; Amendments [Publication Date: 6 September 2016.]

* State; NOTICES; Designations as Foreign Terrorist Organizations: Kata’ib Hizballah (and Other Aliases); Review [Publication Date: 6 September 2016.]

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

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

 
To further support the implementation of NISPOM Change 2, Insider Threat Program requirements, DSS will present a series of online workshops to continue discussions regarding program implementation and to provide information on NISPOM Change 2, Insider Threat Program requirements. For more information on the workshops, go to the DSS Industry Insider Threat Information and Resources webpage.
 
Commencing on September 20, 2016, DSS will present a series of online workshops to continue discussions and further support industry in their implementation of NISPOM Change 2, Insider Threat Program requirements. During the workshops, DSS will answer questions and discuss establishment and maintenance of contractor Insider Threat Program requirements.
Please join us for the first workshop which will be conducted via Adobe Connect on September 20, 2016. Additional workshops will run through November 15, 2016. To register for the workshop, go here.

Feel free to contact dss.quantico.dss-hq.mbx.policyhq@mail.mil, with any registration difficulties!

The workshops will be held on Tuesday’s from 1 – 2:30 p.m. The dates are as follows:

  – Sept. 20, 2016
  – Sept. 27, 2016
  – Oct. 4, 2016
  – Oct. 11, 2016
  – Oct. 25, 2016
  – Nov. 1, 2016
  – Nov. 8, 2016
  – Nov. 15, 2016

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

OGS_a44
. Justice: “Pakistani National Extradited and Sentenced for Attempting to Export Sensitive Technology for Pakistani Military”

(Source:
Justice) [Excerpts.]
 
Syed Vaqar Ashraf, 71, of Lahore, Pakistan, was sentenced today to 33 months in prison by U.S. District Judge Rosemary Marquez of the District of Arizona. Ashraf previously pleaded guilty to conspiracy to export defense controlled items without a license. …
 
Ashraf attempted to procure gyroscopes and illegally ship them to Pakistan so they could be used by the Pakistani military. In an effort to evade detection, Ashraf arranged for the gyroscopes to be purchased in the name of a shell company and caused the gyroscopes to be transshipped to Belgium. Ashraf then traveled to Belgium to inspect the gyroscopes and arrange for their final transport to Pakistan.
 
On Aug. 26, 2014, Ashraf was arrested by the Belgium Federal Police at the request of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) agents, who had been conducting an undercover investigation of Ashraf’s activities. …

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

OGS_a55. State/DDTC: (No new postings.)

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

OGS_a66. Treasury/OFAC Posts Russia/Ukraine-related General License

 
Yesterday (1 Sep 2016), the Department of the Treasury’s Office of Foreign Assets Control (OFAC) updated the Specially Designated Nationals List and the Sectoral Sanctions Identifications List to target sanctions evasion and other activities related to the conflict in Ukraine.
 
Concurrent with today’s action, OFAC also published Russia/Ukraine-related General License No. 10, “Authorizing Certain Transactions Otherwise Prohibited by Executive Order 13685 Necessary to Divest or Transfer Holdings in Certain Blocked Entities”.  This general license authorizes certain transactions that are ordinarily incident and necessary to divest or transfer to a non-U.S. person holdings in PJSC Mostotrest.
* * * * * * * * * * * * * * * * * * * *

NWSNEWS

 
On August 30, 2016, U.S. Customs and Border Protection (CBP) issued Cargo Systems Messaging Service (CSMS) #16-000771 announcing the release of Harmonized System Update (HSU) 1612, containing 4,692 ABI records and 935 harmonized tariff records.
 
The CSMS specifies that, “Modifications include those made to Chapter 62 as a result of the Trade Facilitation and Trade Enforcement Act of 2015.”
 
The update also includes all required modifications for the verification of the 2016 Harmonized Tariff Schedule.
 
The CSMS can be accessed online here.

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

NWS_a28. ST&R Trade Report: “Dates and Deadlines: Importer Security Filing, Customs Regs, Cosmetics, NAFTA”

(Source: ST&R Trade Report) [Excerpts.]
 
Following are highlights of regulatory effective dates and deadlines and federal agency meetings coming up in the next week.
 
  – 6 Sep: deadline for comments to CBP on proposed rule to modify legal responsibility for importer security filing
  – 6 Sep: deadline for comments to USDA on information collections on sugar imports, agricultural exports
  – 6 Sep: deadline for comments to FTZ Board on proposed production activity at seat adjuster, wind turbine facilities
  – 6 Sep: deadline for comments to FMC on NVOCC negotiated rate arrangement information collections
  – 6 Sep: deadline for comments on potential IPR import restrictions on LED products
  – 7 Sep: conference call for Advisory Committee on Supply Chain Competitiveness
  – 8 Sep: meeting of BIS Materials Technical Advisory Committee

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

NWS_a39. ST&R Trade Report: “Trade Community Seeking Delay in ACE Transition for Drawback and Reconciliation”
(Source: ST&R Trade Report)
 
Trade associations are again asking U.S. Customs and Border Protection to delay the deployment of Automated Commercial Environment functionality that they say neither side is ready for. The Trade Leadership Council of the Trade Support Network and the American Association of Exporters and Importers are both concerned about the Oct. 1 deadline for filing drawback and reconciliation entries in ACE.
 
In separate letters, the TLC and AAEI stated that with only about a month before the mandatory ACE date most of the elements required for implementation to be successful have not been achieved. Reconciliation and drawback record sets have been developed by CBP, the letters said, but testing has only just begun and software provider access to the certification environment is still not complete. CBP is also still developing business rules and policies and has yet to promulgate any regulatory changes, which are necessary to set up systems to file under new ACE requirements that are substantially different than under the Automated Commercial System. In addition, the training of CBP personnel is not expected to take place until a week or two before the mandatory date. The letters deemed this situation “very concerning” because reconciliation and drawback are inherently complex processes that are also very paper-intensive and will thus require “significant changes” to transition to ACE.
 
The current plan to implement both processes in production while simultaneously mandating use in ACE and eliminating filings in ACS is “clearly premature,” the TLC letter said, and will have a “substantial” impact on filers. For drawback, claimants face statutory deadlines for filing claims and many will be forced to file completely on paper to protect those deadlines if they cannot file in ACE, resulting in significant expense for both the trade and CBP. For reconciliation, the timing of the Oct. 1 transition to ACE “could not be worse.” The letters explained that many importers file reconciliation in September and October to comply with the deadline for flagged entries to be “closed out” within 21 months and that importers unable to file in ACE on Oct. 1 could face liquidated damages claims for missing filing deadlines.
 
The AAEI letter also criticized CBP for not officially notifying the trade community of two other changes set to take effect Oct. 1, the elimination of both blanket flagging for reconciliation and Importer Trade Activity (ITRAC) reports that provide information used to file prior disclosures, generate compliance reports, etc.

Given these issues, and recalling that CBP heeded similar trade industry concerns about ACE implementation in 2015, which allowed for “a more orderly roll out of the various entry types in ACE,” both the TLC and AAEI called on CBP to take the following steps.
 
  – immediately make drawback and reconciliation filings available fully in the certification environment so that software providers, filers and claimants can test the electronic processes and provide CBP with feedback to ensure that these systems work correctly before ACS filings are shut down
  – implement drawback and reconciliation in the ACE production environment on Oct. 1 to allow companies that are ready to file to begin testing the system in production
  – allow at least 60 days of testing in production before any mandatory date and the termination of ACS filings
  – issue business rules, policies, and regulatory changes at least 60 days before the mandatory date
  – train CBP personnel at least 60 days before the mandatory date and allow them to work claims in production to reinforce this training and ensure that the systems and business process coordinate properly

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

COMMCOMMENTARY

(Source: Authors) 
 

* Authors: F. Amanda DeBusk, Esq.,
amanda.debusk@hugheshubbard.com, 202-721-4790; Melissa Duffy, Esq.,
melissa.duffy@hugheshubbard.com, 202-721-4689; and Tyler Grove, Esq.,
tyler.grove@hugheshubbard.com, 202-721-4625. All of Hughes Hubbard & Reed LLP

On September 1, 2016, the U.S. Department of the Treasury, Office of Foreign Assets Control (“OFAC”) expanded its sanctions to target: (1) individuals and firms working to destabilize the Donbass and Crimea regions of Ukraine; (2) entities 50% owned by Gazprom, Gazprombank or the Bank of Moscow; and (3) sanctions evaders. In a press release, OFAC said the new measures were intended “to counter attempts to circumvent sanctions on Russia, to assist the private sector with sanctions compliance, and to foster a diplomatic resolution to the conflict in Ukraine.” See Press Release, Treasury Sanctions Individuals and Entities for Sanctions Evasion and Activities Related to the Conflict in Ukraine (Sept. 1, 2016), available here.

In total, OFAC added 133 new entries to its Specially Designated Nationals (“SDNs”) and Sectoral Sanctions Identifications (“SSI”) lists. (The SDN list imposes complete blocking sanctions; the SSI list imposes sanctions targeted to particular sectors and types of transactions.) OFAC also announced a new general license to authorize divestment from PJSC Mostotrest, a major Russian construction company added to the SDN list.

The sanctions come as tensions are increasing in Ukraine and days after reports that Russian state hackers allegedly accessed voting registration systems in Illinois and Arizona, which is the latest incident in a series of escalating state-sponsored cybersecurity breaches over the summer. See, e.g., Ellen Nakashima, Russian hackers targeted Arizona election system, Wash. Post (Aug. 29, 2016), available here.   The announcement also comes a week ahead of the G-20 meeting, which both the U.S. and Russian presidents plan to attend, as well as weeks before Russia is scheduled to conduct military drills in the Donbass region.

New Additions to the SDN List Include Construction, Shipping and Defense Companies Involved in Building Bridge to Crimea

The new round of sanctions added 20 new entities to the SDN list. They include 7 construction, engineering, and design companies working on construction of the Kerch Strait Bridge, which would connect mainland Russian with the Crimean peninsula. This group includes PJSC Mostotrest and SGM-Most OOO.

The new entities additionally include 5 defense firms and 6 maritime firms operating in the Crimea region. The defense firms include 3 companies that build and repair ships. The 6 maritime firms are all related to the Sovfracht-Sovmortrans Group, a shipping and logistics company that operates a ferry line that travels the same route as the Kerch Strait Bridge between Russia and Crimea.

The SDN list also adds 17 new individuals, including 6 officials in the self-proclaimed Luhansk People’s Republic and 11 officials from the Republic of Crimea. The Salvation Committee of Ukraine was added because it is owned or controlled by, or acts on behalf of, former Ukraine Prime Minister Mykola Azarov, who is an SDN.

New Additions to the SSI List

OFAC added 96 new entities to the SSI list. These entities are all subsidiaries owned 50% or more by one of three existing parent companies already listed on the SSI list. Specifically, 52 of the new entities are linked with Gazprom, 25 are linked with Gazprombank, and 19 are linked with Bank of Moscow.
The 44 entities linked with Gazprombank and Bank of Moscow are subject to Directive 1, which prohibits certain transactions or dealing in debt and equity of the sanctioned entities. The 52 entities linked with Gazprom are subject to Directive 4, which prohibits U.S. persons from providing support pertaining to Russian deepwater, arctic offshore, or shale oil projects.

These 96 entities were already subject to sanctions because they are 50% or more owned by companies designated on the SSI list. Because determining ownership is often difficult, these listings will make due diligence, screening and compliance easier for industry.

Bank Rossiya Related Entity Named as Sanctions Evader

CJSC ABR Management was designated as an SDN. The OFAC press releases states that this company was established by officials at Bank Rossiya, an SDN, to manage the bank’s assets. Bank Rossiya was previously designated for its close ties to Vladimir Putin’s inner circle.

New General License

OFAC announced the release of General License 10, which authorizes U.S. persons to divest their holdings in PJSC Mostotrest, one of the new additions to the SDN list, which would otherwise be blocked. The general license is valid until October 1, 2016.

PJSC Mostotrest is one of the largest construction companies in Russia, and the fact that OFAC issued the general license suggests that there is U.S. investment in this company.

Conclusion

The sanctions announced on September 1, 2016 represent an escalation of the U.S.’s sanctions against Russia. Although this round of sanctions is the first from OFAC in nearly nine months, it demonstrates the administration’s willingness to react to increased Russian activity in eastern Ukraine, Crimea and cyberspace. In addition to sending a message about continued U.S. support for Ukraine, these sanctions also send a message to Russia that hacking and any attempts to interference with the November elections will have severe consequences.

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

 
* Author: Melissa Miller Proctor, Esq., Polsinelli PC, mproctor@polsinelli.com, 602-650-2002.
 
On August 17, 2016, the Commerce Department’s Bureau of Industry and Security (BIS) and the State Department’s Directorate of Defense Trade Controls (DDTC) published final rules in the Federal Register effectively harmonizing the export destination control statements mandated by the Export Administration Regulations (EAR) and the International Traffic in Arms Regulations (ITAR). Generally, under the current rules, destination control statements (“DCS”) are placed on commercial invoices, air waybills, bills of lading and other shipping documents that will accompany export shipments from the United States in order to put the foreign end-users on notice that the goods they are receiving are subject to U.S. laws and regulations and may require prior U.S. government authorization before they can be reexported or retransferred. The ITAR DCS is currently required for all exports, reexports and retransfers of defense articles designated on the U.S. Munitions List (USML) per 22 C.F.R. Section 123.9. Similarly, per 15 C.F.R. Section 758.6 of the EAR, the DCS is required for exports of goods that are subject to the EAR and that are classified in Export Control Classification Numbers (ECCNs)-the EAR DCS is not currently required for goods classified as EAR99; however, it is generally a recommended “best practice” for exporters to utilize the DCS for all export shipments that are subject to the EAR, regardless of an item’s classification.
 
Currently, the ITAR DCS language differs from the language mandated under the EAR. As a result, companies whose product lines are subject to the ITAR and EAR have the additional burden of ensuring that the appropriate language appears on their export shipments-even putting both the ITAR and EAR statements on the same set of documents to ensure compliance with both sets of regulations. However, as part of the U.S. export control reform process, the BIS and the DDTC have decided to harmonize the two sets of statements, as well as mandate that they be inserted only on commercial invoices-they will no longer need to appear on the bills of lading, air waybills or other shipping documents. Effective as of November 15, 2016, the new harmonized DCS language that must be used under both the ITAR and the EAR will be as follows:
 
These items are controlled by the US government and authorized for export only to the country of ultimate destination for use by the ultimate consignee or end-user(s) herein identified. They may not be resold, transferred, or otherwise disposed of, to any other country or to any person other than the authorized ultimate consignee or end-user(s) either in their original form or after being incorporated into other items, without first obtaining approval from the US government or as otherwise authorized by US law and regulations.
 
Unfortunately, that is where the harmonization appears to end, as both agencies will also impose additional requirements related to the use of DCS. For example-
 
New ITAR Destination Control Statement Requirements:
 
  – The ITAR DCS language has been harmonized with the EAR language.
  – The ITAR DCS must appear on the commercial invoice (exports, reexports and retransfers).
  – The commercial invoice must also specify: (a) destination country; (b) end-user’s name; and, (c) license number or license exception.
  – The USML Category of the item is not required on the commercial invoice.
  – If an item subject to the EAR is included in the shipment, the exporter must provide the EAR export classification to the end-user (i.e., ECCN or EAR99).
 
New EAR Destination Control Statement Requirements:
 
  – The EAR DCS language has been harmonized with the ITAR language.
  – Exporters must insert the export classification on the commercial invoice for items classified in ECCN 9X515 and 600-series ECCNs.
  – The DCS is not required for exports of EAR99 items or items exported under License Exceptions BAG or GFT
  – All other items exported from the United States (i.e., tangible exports), even those exported NLR, will require the EAR DCS.
 
The new rules will take effect on November 15, 2016; therefore, U.S. exporters are advised to begin taking steps now to update their Enterprise Resource Planning (ERP) systems to reflect the new destination control statement language and the additional export classification information that may be required to be printed on their commercial invoices.

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

COMM_a312. R.C. Burns: “Export Defendant Pays for Requesting Jury Trial”
(Source:
Export Law Blog
. Reprinted by permission.)
 
* Author: R. Clifton Burns, Esq., Bryan Cave LLP, Wash DC, 202-624-3949,
Clif.Burns@bryancave.com
)
 
This blog has closely followed the case involving Alexander Fishenko and his company ARC Electronics, mostly because the government larded the export charges against Fishenko with bogus “spying” charges premised on an alleged charge that he failed to register under the Foreign Agent Registration Act.  Those charges were bogus because the act makes clear that selling goods to a foreign government is not an activity that requires registration.
 
A number of the employees of ARC were also indicted on export charges in connection with the exports to Russia without the required BIS licenses. One of them, Anastasia Diatlova, the most junior sales clerk in the organization, is now apparently facing harsher sentencing than other sales clerks at ARC because she ticked off the government by making them go to trial, or at least that’s the claim made in the Sentencing Memorandum filed by Ms. Diatlova’s attorneys. That memo argues that she should get the same sentence of time served as the other sales clerks in the organization. (Fishenko, who owned Arc and ran the operation, pleaded guilty and was sentenced to ten years.)
 
Apparently time served was offered in the plea deal but Diatlova went to trial anyway.  That decision was premised on the reasonable belief that someone who had only an eighth grade education, received little if any compliance training, and had previously refused to sell parts where she knew them to be restricted was unlikely to have known that the one export with which she was involved and charged was illegal.
 
But, juries being juries, and with the prosecutors no doubt screaming “spy” and “Russia” at every available opportunity, the jury convicted her anyway. And now the government wants revenge and has taken the offer of a sentence of time served off the table. That is, of course, their right, but it seems petty and almost despicable in the case of a $15/hour sales clerk who sold an item that probably would have been licensed if one had been requested. One has to wonder why the government was chasing her anyway other than as potential low-hanging fruit that could result in another notch on their holsters.
* * * * * * * * * * * * * * * * * * * *

TrainingEX/IM TRAINING EVENTS & CONFERENCES

TE_a213
. Friday List of Approaching Events

(Sources: Event sponsors.) 
 
Published every Friday or last publication day of the week. Send events to
apbosch@fullcirclecompliance.eu
, composed in the below format:

* DATE: PLACE; “TITLE;” SPONSOR; WEBLINK; CONTACT (email and phone number)
 
Continuously Available Training:
* Executive Masters: “
International Trade Compliance
;” University of Liverpool;
exed@liverpool.ac.uk
;
+44 (0) 20 768 24614
* E-Seminars: “
US Export Controls” / “Defense Trade Controls
;” Export Compliance Training Institute;
danielle@learnexportcompliance.com 
* On-Line: “
Simplified Network Application Process Redesign (SNAP-R)
;” Commerce/BIS; 202-482-2227
* E-Seminars: “
Webinars On-Demand Library
;” Sandler, Travis & Rosenberg, P.A.
 
Training by Date:

* Sep 7: Wash DC; “ComDef 2016; IDEAA, Inc.

* Sep 7: Webinar; “
Navigating the Customs Regulations to Find the Information You Need
;”
Sandler, Travis & Rosenberg, P.A.;
Webinarorganizers@strtrade.com 

* Sep 9: Woodbridge VA; “
2016 Fall Golf Outing
;” Society for International Affairs

* Sep 12-15: Chicago, IL: “United States Export Control (EAR/OFAC/ITAR);” ECTI; jessica@learnexportcompliance.com; 540-433-3977

* Sep 12-14: Isle of Palms SC; “43rd South Carolina International Trade Conference;” South Carolina International Trade Conference

* Sep 12-13: Wash DC; “
WorldECR Export Controls and Sanctions Forum 2016
;” WorldECR;
Mark.Cusick@WorldECR.com 

* Sep 13-16: Dallas; “‘Partnering for Compliance™’ West Export/Import Control Training and Education Program;” Partnering for Compliance West; Ailish@PartneringForCompliance.org; 321-952-2978

* Sep 13-14: Silicon Valley CA; “
Complying with U.S. Export Controls
;”
Dept. of Commerce/Bureau of Industry and Security

* Sep 14-15: Annapolis; “
EAR/ITAR Boot Camp;” Export Compliance Solutions (ECS);
spalmer@exportcompliancesolutions.com; 866-238-4018

* Sep 14-16: Dallas TX; “
7th Annual ‘Partnering For Compliance™’ West Export/Import Control Program
;” Partnering For Compliance™
* Sep 14-15: Detroit MI; “
Export Compliance, International Documentation and Automated Commercial Environment
;” East Michigan District Export Council

* Sep 15: London; “Making Better License Applications;”
UK/BIS Export Control Organisation;
denise.carter@bis.gsi.gov.uk 

* Sep 15: Silicon Valley CA; “
Encryption Controls
;”
Dept. of Commerce/Bureau of Industry and Security

* Sep 19-22: Houston TX; “
Customs Broker Exam Boot Camp
;” Export-Import Law Institute;
info@bestcustomsbrokercourse.com
; 800-256-2013

* Sep 20: Oxford UK; “Intermediate Seminar;”
UK/BIS Export Control Organisation;
denise.carter@bis.gsi.gov.uk 

* Sep 20: Orlando FL; “
AES Compliance Seminar
;” Dept. of Commerce/Census
& M-Palm;
shawn@m-palm.com 

* Sep 20-21: Shanghai; “
2nd Advanced Conference on China Antitrust
;” American Conference Institute
* Sep 20: Webinar; “NISP Administration & Policy Analysis (NAPA) Industry Insider Threat Workshop;” Dept. of Defense/Defense Security Service

* Sep 21: Buffalo NY; “
Essentials of U.S. Export Controls
;”
Dept. of Commerce/Bureau of Industry and Security

* Sep 21: Oxford UK; “Beginners Workshop;”
UK/BIS Export Control Organisation;
denise.carter@bis.gsi.gov.uk 

* Sep 21: Oxford UK; “Making Better Licence Applications;”
UK/BIS Export Control Organisation;
denise.carter@bis.gsi.gov.uk 
* Sep 21-24: San Antonio TX; “
Texas Customs Brokers Brokers & Forwarders Association Annual Conference
;” Texas Brokers and Forwarders Association
* Sep 21: Wash DC; “
In-House Industry Seminar
;” Dept. of State/DDTC;
DDTCeSeminars@state.gov 

* Sep 22: Buffalo NY; ”
How to Develop an Export Management and Compliance Program
;”
Dept. of Commerce/Bureau of Industry and Security

* Sep 27-29: London UK; “Annual Anti-Bribery and International Trade Conference;” Email Kate Bullard to Request an Invitation to this Event; Baker McKenzie

* Sep 27: Webinar; “NISP Administration & Policy Analysis (NAPA) Industry Insider Threat Workshop;” Dept. of Defense/Defense Security Service

* Sep 28: DIY Encryption Classification 2016 Edition; ECTI; http://www.learnexportcompliance.com/Webinars/DIY-Encryption-Classification-2016-Edition.aspx; danielle@learnexportcompliance.com; 540-433-3977 

* Sep 28-29: Amsterdam NL: “Defence Expors 2016;” SMi

* Oct 3-6: Amsterdam NL: “United States Export Control (EAR/OFAC/ITAR) (for EU and other non-US Companies);” ECTI;jessica@learnexportcompliance.com; 540-433-3977

* Oct 4: Webinar; “NISP Administration & Policy Analysis (NAPA) Industry Insider Threat Workshop;” Dept. of Defense/Defense Security Service

* Oct 5: Leeds UK; “Intermediate Seminar;”
UK/BIS Export Control Organisation;
denise.carter@bis.gsi.gov.uk 

* Oct 6: Leeds UK; “Beginners Workshop;”
UK/BIS Export Control Organisation;
denise.carter@bis.gsi.gov.uk 
* Oct 6: Leeds UK; “Control List Classification – Combined Dual Use and Military;”
UK/BIS Export Control Organisation;
denise.carter@bis.gsi.gov.uk 

* Oct 9-11: Grapevine TX: “DFW Fall Conference;” ICPA

* Oct 11: Webinar; “NISP Administration & Policy Analysis (NAPA) Industry Insider Threat Workshop;” Dept. of Defense/Defense Security Service

* Oct 12: Laredo TX; “
AES Compliance Seminar
;” Dept. of Commerce/Census;
shawn@m-palm.com

* Oct 12-13: Miramar FL; “7th Maritime/Logistics Seminar;” ABS-Consulting; albert@abs-consulting.net; 954-218-5285.
* Oct 12-13: New Orleans; “
Critical Compliance: Jurisdiction/Classification, Auditing & Recordkeeping
;” Export Compliance Solutions (ECS);
spalmer@exportcompliancesolutions.com
; 866-238-4018

* Oct 13-14: London; “
WorldECR Export Controls and Sanctions Forum 2016
;” WorldECR;
Mark.Cusick@WorldECR.com 

* Oct 17-20: Huntsville AL; “
EAR/ITAR/OFAC Compliance
;” ECTI;
jessica@learnexportcompliance.com
; 540-433-3977

* Oct 18-19: New Orleans; “
ITAR/EAR Critical Compliance Jurisdiction/Classification Auditing/Recordkeeping
” Export Compliance Solutions;
spalmer@exportcompliancesolutions.com
; 866-238-4018

* Oct 18-19: San Francisco; “9th West Coast FCPA Enforcement & Compliance Conference;” American Conference Institute

* Oct 18-19: Washington, DC; “International Technology Transfers, Cloud Computing, and Deemed Exports;” American Conference Institute; americanconference.com/techtransfers OR 1-888-224-2480

* Oct 19: London; “Control List Classification – Dual Use;” UK/BIS Export Control Organisation; denise.carter@bis.gsi.gov.uk 

* Oct 19-20: Oslo Norway; “US Defense Contracting and DFARS Compliance;” C5

* Oct 20: London; “Making Better License Applications;”
UK/BIS Export Control Organisation;
denise.carter@bis.gsi.gov.uk 

* Oct 24-25: Arlington VA; “2016 Fall Conference;” Society for International Affairs; admin@siaed.org 

* Oct 25: Troy MI; “Incoterms;” East Michigan District Export Council
* Oct 25: Webinar; “NISP Administration & Policy Analysis (NAPA) Industry Insider Threat Workshop;” Dept. of Defense/Defense Security Service

* Oct 31-Nov 2: Wash DC; “
Commerce/BIS Update 2016 Conference on Export Controls
;” U.S. Dept. of Commerce/Bureau of Industry and Security;
UpdateConference@bis.doc.gov
; 202-482-6031

* Oct 31-Nov 3: Wash DC; “US Export Controls Seminar;” ECTI; jessica@learnexportcompliance.com; 540-433-3977

* Nov 1: Webinar; “NISP Administration & Policy Analysis (NAPA) Industry Insider Threat Workshop;” Dept. of Defense/Defense Security Service

* Nov 2: Chicago; “AES Compliance Seminar;” Dept. of Commerce/ Census & M-Palm; shawn@m-palm.com 

* Nov 3-4: Amsterdam International Trade & Compliance Conference;
Email Claudia Wehmeijer to Request an Invitation; Baker McKenzie

* Nov 6-7: Singapore; “
Singapore Conference
;” International Compliance Professionals Association;
wizard@icpainc.org 

* Nov 8: London; “Control List Classification – Military;”
UK/BIS Export Control Organisation;
denise.carter@bis.gsi.gov.uk 

* Nov 8: Webinar; “NISP Administration & Policy Analysis (NAPA) Industry Insider Threat Workshop;” Dept. of Defense/Defense Security Service

* Nov 9: London; “Making Better License Applications;”
UK/BIS Export Control Organisation;
denise.carter@bis.gsi.gov.uk 


* Nov 10-11: Shanghai; “
ICPA China Conference
;” International Compliance Professionals Association;
wizard@icpainc.org 

* Nov 14-16: London; “Expert Industry and Regulatory Advice for Solutions to Export Controls’ Global Compliance Risks;” Informa Maritime

* Nov 14-17: Phoenix AZ; “
EAR/ITAR/OFAC Compliance
;” ECTI;
jessica@learnexportcompliance.com
; 540-433-3977

* Nov 15-16: Santa Clara, CA, and webinar; “Year-End Review of Import/Export Developments;” Baker & McKenzie; Register Here; or call Lillian Han415-576-3061lillian.han@bakermckenzie.com 
* Nov 15: Webinar; “NISP Administration & Policy Analysis (NAPA) Industry Insider Threat Workshop;” Dept. of Defense/Defense Security Service

* Nov 16: Manchester UK; “Intermediate Seminar;”
UK/BIS Export Control Organisation;
denise.carter@bis.gsi.gov.uk 

* Nov 17: Manchester UK; “Beginners Workshop;”
UK/BIS Export Control Organisation;
denise.carter@bis.gsi.gov.uk 
* Nov 17: Manchester UK; “Making Better License Applications;”
UK/BIS Export Control Organisation;
denise.carter@bis.gsi.gov.uk 
* Nov 17: Manchester UK; “Control List Classification Combined Dual Use and Military;”
UK/BIS Export Control Organisation;
denise.carter@bis.gsi.gov.uk 

* Nov 24: London; “
Cyber Export Controls 2016
;”
UK/BIS Export Control Organisation;
denise.carter@bis.gsi.gov.uk 

* Nov 30: London; “Control List Classification – Dual Use;”

UK/BIS Export Control Organisation;
denise.carter@bis.gsi.gov.uk

* Nov 29-Dec 2: Washington, D.C.; “
33rd International Conference on the Foreign Corrupt Practices Act
“; American Conference Institute
* Dec 1: London; “Making Better License Applications;”
UK/BIS Export Control Organisation;
denise.carter@bis.gsi.gov.uk 

* Dec 2: Wash DC; “
SIA Holiday Party
;” Society for International Affairs

* Dec 5-8: Miami FL; “
EAR/ITAR/OFAC Compliance Seminar Series
;” ECTI;
jessica@learnexportcompliance.com
; 540-433-3977

* Dec 7: Boston; “
AES Compliance Seminar
;”
Dept. of Commerce/Census
& M-Palm;
shawn@m-palm.com  

* Dec 7: London; “Intermediate Seminar;”
UK/BIS Export Control Organisation;
denise.carter@bis.gsi.gov.uk 
* Dec 8: London; “Beginners Workshop;”
UK/BIS Export Control Organisation;
denise.carter@bis.gsi.gov.uk 
* Dec 8: London; “Making Better License Applications;”
UK/BIS Export Control Organisation;
denise.carter@bis.gsi.gov.uk 

* Dec 14: Wash DC; “In-House Industry Seminar;” Dept. of State/DDTC; DDTCInHouseSeminars@state.gov

* Jan 23-26: San Diego, CA; “
EAR/ITAR/OFAC Compliance Seminar Series
;” ECTI;
jessica@learnexportcompliance.com
; 540-433-3977

* Mar 13-15: Newport Beach CA; “2017 Winter Back to Basics Conference;” Society for International Affairs

* Mar 20-23: Singapore; “
United States Export Control (EAR/OFAC/ITAR) (for Asia-Pacific and other non-US Companies)
;” ECTI;
jessica@learnexportcompliance.com
; 540-433-3977

* Jun 12-15: San Francisco; “
United States Export Control (EAR/OFAC/ITAR) Seminar
;” ECTI;
jessica@learnexportcompliance.com
; 540-433-3977

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

ENEDITOR’S NOTES

EN_a114. Bartlett’s Unfamiliar Quotations

(Source: Editor)

“I can’t take a well-tanned person seriously.”
  – Cleveland Amory (2 Sep 1917 – 14 Oct 1998, was an American author, reporter and commentator and animal rights activist.)

“Poorly paid labor is inefficient labor, the world over.”
  – Henry George (2 Sep 1839 – 29 Oct 1897, was an American political economist, journalist, and philosopher.)
 
This week’s blonde joke:
 
A tour bus stops at Runnymede, England, and the guide says “Here is where the barons of England forced King John to sign the Magna Carta.” A blonde asks, “When was that?” “1215,” the guide replies. The blonde sighs, checks her watch, and sighs, “Shucks, we just missed it.”
  – Val Temrowski, Richmond, VA

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

EN_a215. 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:
26 Aug 2016: 81 FR 58831-58834: Administrative Exemption on Value Increased for Certain Articles

* 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.  Please contact us to receive your discount code. 
 
*
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: 30 Aug 2016; Harmonized System Update (HSU) 1612, containing 4,692 ABI records and 935 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
  – 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 
  – Latest effective change: 1 Sep 2016: 81 Fed. Reg. 35611-35617 (June 3, 2016, effective 1 Sep 2016): Sections from parts 120, 123, 124, 125, and 126.
  – The only available fully updated copy (latest edition 1 Sep 2016) of the ITAR with all amendments 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 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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