| Monday, 12 September 2016 | |  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. |
 |  | | EX/IM ITEMS FROM TODAY’S FEDERAL REGISTER |
| [No items of interest noted today.] * * * * * * * * * * * * * * * * * * * *
|
OTHER GOVERNMENT SOURCES |
1. Ex/Im Items Scheduled for Publication in Future Federal Register Editions
(Source: Federal Register) [No items of interest noted today.] * * * * * * * * * * * * * * * * * * * *
|
| * * * * * * * * * * * * * * * * * * * *
|
| U.S. Customs and Border Protection (CBP) recently launched the Trade Facilitation and Trade Enforcement Act of 2015 webpage as a means to provide the trade community information on TFTEA related issues. The webpage showcases news updates on trade enforcement and trade facilitation efforts in areas such as forced labor, anti-dumping countervailing duties, and the Automated Commercial Environment (ACE), as well as the latest on community engagement. TFTEA, as the Act is commonly referred to, is the first piece of comprehensive legislation for CBP since the Department of Homeland Security was created in 2003, designed to ensure a fair and competitive trade environment. For more information, please click here. * * * * * * * * * * * * * * * * * * * *
|
| * * * * * * * * * * * * * * * * * * * *
|
5. EU Posts Corrections Concerning Libyan Restrictive Measures Corrigenda: – Corrigendum to Council Implementing Regulation (EU) 2016/466 of 31 March 2016 implementing Article 21(2) of Regulation (EU) 2016/44 concerning restrictive measures in view of the situation in Libya – Corrigendum to Council Decision (CFSP) 2016/478 of 31 March 2016 amending Decision (CFSP) 2015/1333 concerning restrictive measures in view of the situation in Libya * * * * * * * * * * * * * * * * * * * *
|
NEWS |
6. The Medialine: “Democrats and Republicans Act to Kill Saudi Arms Deal” Two Democratic and two Republican senators are taking the lead in an attempt to kill a $1.5 billion military aid package for Saudi Arabia. Democrats Al Franken (D-Mn.) and Chris Murphy (D-Ct.) have joined with Republicans Rand Paul (R-Ky.) and Mike Lee (R-Ut.) to take the effort to derail the Obama administration’s plans to send Abrams tanks and sophisticated equipment to Riyadh a notch higher after a letter signed by 67 senators apparently had no impact on the president’s plans.
The new initiative will be a joint resolution that will have considerable value in making clear the strength of opposition to the sale that represents a rare point of agreement between the parties at a time they are barely speaking to each other.
The quartet of senators maintains that a vote on the deal can be forced per the Arms Export Control Act of 1976. Citing the poor Saudi human rights record, Sen. Paul called the proposed sale “a recipe for disaster” and escalation of the arms race in the region. . . . * * * * * * * * * * * * * * * * * * * *
|
7. ST&R Trade Report: “Defense Export Regulations Amended to Reflect Revised Definitions” The State Department has issued a final rule making further amendments to the International Traffic in Arms Regulations based on comments on a June 3 interim final rule that revised definitions and made other changes as part of the Export Control Reform Initiative. Effective Sept. 9, this final rule makes the following changes. – revises the definition of “retransfer” in 22 CFR 120.51 to clarify that temporary transfers to third parties and releases to same-country foreign persons are within the scope of the definitions – revises §126.16(a)(1)(iii) and §126.17(a)(1)(iii) to reflect the definitions of “reexport” and “retransfer” in the defense trade cooperation treaties with Australia and the United Kingdom, respectively, and to make appropriate revisions to the definitions of “reexport” in §120.19 and “retransfer” in §120.51 to reflect that these definitions do not apply in the treaty context – revises §126.18(d)(1) to clarify that the provisions include all foreign persons who meet the definition of “regular employee” in §120.39 – revises §130.2 to ensure that the scope of the Part 130 requirements does not change due to the revised and new definitions In addition, in response to public comments on the interim final rule, State has confirmed the following. – Simply allowing a foreign person in the U.S. to possess a defense article does not require authorization under the ITAR unless technical data is revealed to that person through the possession, including subsequent inspection, of the defense article, or that person is taking the defense article into an embassy. – The transfer of technical data to a foreign person is always a controlled activity that requires State Department authorization. – Theoretical or potential access to technical data is not a release. – Any release to a foreign person is a controlled event that requires authorization to all countries where that foreign person holds or has held citizenship or is a permanent resident and such authorization(s) must authorize all applicable destinations. – In circumstances where birth does not confer citizenship in the country of birth it does not confer citizenship of permanent residency in that country for purposes of the ITAR. – State will consider all circumstances surrounding any unauthorized release and will assess responsibility pursuant to its civil enforcement authority based on the relative culpability of all the parties to the transaction. – To the extent that a dual or third-country national employee of an authorized end-user, foreign signatory, or consignee acts as an authorized representative of that company, the provision of technical data by an authorized U.S. party to the foreign company through the DN/TCN employee is a reexport from the foreign company to the DN/TCN employee that may be authorized under §126.18. * * * * * * * * * * * * * * * * * * * *
| |
COMMENTARY |
8. J. Reeves & K. Heubert: “Exporters Must Prepare for New Destination Control Statement” * Authors: Johanna Reeves, Esq., 202-715-9941, jreeves@reevesdola.com; and Katherine Heubert, Esq., 202-715-9940, kheubert@reevesdola.com. Both of Reeves & Dola LLP. Beginning November 15, 2016, exporters will be required to incorporate the new harmonized Destination Control Statement (“DCS”) as part of the commercial invoice for tangible exports, reexports, and retransfers of items controlled under either the International Traffic in Arms Regulations (ITAR) or the Export Administration Regulations (EAR). The DCS shall read as follows: These items are controlled by the U.S. 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 U.S. government or as otherwise authorized by U.S. law and regulations. The State Department’s Directorate of Defense Trade Controls (DDTC) and the Commerce Department’s Bureau of Industry and Security (BIS) announced the harmonized DCS in Final Rules published concurrently in the Federal Register on August 17, 2016 (81 FR 54732 and 81 FR 54721, respectively). Exporters should note that the final rules remove the requirement for placing the DCS on other “transportation documents” like the bill of lading, air waybill, or other shipping documents. Both rules also clarify that the DCS is only required on items exported in tangible form. In addition to updating the DCS, the DDTC Final Rule makes revisions to the ITAR to provide guidance on the use of license exemptions for the export of items subject to the EAR that are shipped with ITAR-controlled items, as well as clarifies that items subject to the EAR are not defense articles, even when exported under an ITAR authorization. We anticipate industry may face an initial burden to update internal systems to apply the new DCS. The ultimate streamlining effect of a single DCS hopefully will make the effort worthwhile. This Alert provides a brief summary of the changes made to the ITAR and EAR, but is not intended to be a substitute for reviewing the two Federal Register Notices (linked above). Companies should carefully review the new DCS requirements, in conjunction with this Alert. * * * * * * * * * * * * * * * * * * * *
| |
EX/IM TRAINING EVENTS & CONFERENCES |
9. ECTI Presents Understanding the Shift of Toxicological Agents and Directed Energy Weapons from the USML to the CCL Webinar, 27 Oct (Source: Danielle McClellan, dmcclellan@tradecontrols.com ) * What: Understanding the Shift of Toxicological Agents and Directed Energy Weapons from the USML to the CCL Webinar * When: October 27, 2016; 1:00 p.m. (EDT) * Where: Webinar * Sponsor: Export Compliance Training Institute (ECTI) * ECTI Speaker: Jennifer Saak * Register: Here , or Danielle McClellan, 540-433-3977, dmcclellan@tradecontrols.com . * * * * * * * * * * * * * * * * * * * *
|
EX/IM MOVERS & SHAKERS |
10. DDTC Appoints Art Schulman as Acting Director of DTCC The State Department’s Directorate of Defense Trade Controls (DDTC) has posted notice that Arthur Schulman has been appointed Acting Director, Office of Defense Trade Controls Compliance (DTCC), replacing Sue Gainor, who departed DDTC in July 2016. Mr. Schulman, a graduate of Tulane University and George Washington University Law School, was General Counsel of the Wisconsin Project on Nuclear Arms Control before joining DDTC. * * * * * * * * * * * * * * * * * * * *
|
11 . Monday List of Ex/Im Job Openings: 120 Jobs Posted (Source: Editor) COMPANY; LOCATION; POSITION TITLE (WEBLINK); CONTACT INFO; REQ ID “*” New listing this week:
* 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
* United Technologies Corporation, UTC Aerospace Systems; Danbury CT; ITC Site Lead ; Requisition ID: 30565BR
* * * * * * * * * * * * * * * * * * * * | |
| EDITOR’S NOTES |
| * H.L. Mencken (Henry Louis Mencken; 12 Sep 1880 – 29 Jan 1956; was an American journalist, satirist, cultural critic and scholar of American English. Known as the “Sage of Baltimore”, he is regarded as one of the most influential American writers and prose stylists of the first half of the twentieth century.) – “The whole aim of practical politics is to keep the populace alarmed (and hence clamorous to be led to safety) by menacing it with an endless series of hobgoblins, all of them imaginary.”
– It is hard to believe that a man is telling the truth when you know that you would lie if you were in his place.
Monday is pun day: Q. What do you call a disagreement between pirates?
A. An arrrrrrg-ument.
* * * * * * * * * * * * * * * * * * * *
|
13 . 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. – 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 – Last Amendment: 26 Aug 2016: 81 FR 58831-58834: Administrative Exemption on Value Increased for Certain Articles – Last Amendment: 7 Sep 2016: 81 FR 61595-61612: Russian Sanctions: Addition of Certain Entities to the Entity List – 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. – HTS codes for AES are available here . – HTS codes that are not valid for AES are available here. – Latest Amendment: 8 Sep 2016; 81 FR 62004-62008: 22 CFR Parts 120, 125, 126, and 130; Public Notice: 9672; RIN: 1400-AD70; International Traffic in Arms: Revisions to Definition of Export and Related Definitions
– The only available fully updated copy (latest edition 8 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. * * * * * * * * * * * * * * * * * * * *
| |
| * 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. |
Stay Connected
 |
| | | |
Copyright © 2016. All Rights Reserved. | | | |
