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16-0920 Tuesday “The Daily Bugle”

16-0920 Tuesday “Daily Bugle”

Tuesday, 20 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 
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  1. Commerce/BIS Amends EAR, Revises Entity List Regarding Twelve Chinese Entities 
  2. Commerce/BIS Amends EAR, Implements Wassenaar Arrangement 2015 Plenary Agreements re Removal of Foreign National Review Requirements, and Information Security Updates 
  3. NARA/ISOC/ISOO Amends 32 CFR Chapter XX, Government-Wide Controlled Unclassified Information (CUI) Program 
  1. Ex/Im Items Scheduled for Publication in Future Federal Register Editions
  2. Commerce/BIS: (No new postings.) 
  3. State/DDTC: (No new postings.) 
  4. EU Adopts Autonomous Sanctions Legal Framework Concerning ISIL and Al-Qaida 
  5. EU Amends for the 253rd Time Restrictive Measures Concerning ISIL and Al-Qaeda 
  1. ST&R Trade Report: “Export Regulations Revised to Reflect Changes to Dual-Use Goods List, Entity List”
  1. C. Navarro & C.A. Lewis: “Did Your Company Receive What Seems to be a Routine Informed Compliance Letters from Customs? Nothing Routine About it – Your Company is Targeted for Audit” 
  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 (20 Sep 2016), FACR/OFAC (18 May 2016), FTR (15 May 2015), HTSUS (30 Aug 2016), ITAR (8 Sep 2016) 

EXIMEX/IM ITEMS FROM TODAY’S FEDERAL REGISTER

EXIM_a1

1. Commerce/BIS Amends EAR, Revises Entity List Regarding Twelve Chinese Entities

(Source: Federal Register) [Excerpts.]
 
81 FR 64693-64698: Revisions to the Entity List
* AGENCY: Bureau of Industry and Security, Commerce.
* ACTION: Final rule.
* SUMMARY: This final rule amends the Export Administration Regulations (EAR) by revising the license requirement to apply to all items subject to the EAR for twelve Chinese entities on the Entity List. These revisions are made in order to address national security concerns resulting from the removal of certain subparagraphs of Export Control Classification Numbers (ECCNs) 5A992, 5D992 and 5E992 that occurs in the 2015 Wassenaar Implementation rule, which is also published elsewhere in this issue of the Federal Register. This rule also brings the general Entity List license requirements, policies and procedures under a single section of the EAR to assist the public to better locate and comply with these regulations.
* DATES: This rule is effective September 20, 2016.
* FOR FURTHER INFORMATION CONTACT: For questions relating to the Entity List, please contact the Chair, End-User Review Committee, Office of the Assistant Secretary, Export Administration, Bureau of Industry and Security, Department of Commerce, Phone: (202) 482-5991, Fax: (202) 482-3911, Email: ERC@bis.doc.gov. All other questions may be directed to Sharron Cook, Office of Exporter Services, Regulatory Policy Division: (202) 482-2440, Email: sharron.cook@bis.doc.gov.
* SUPPLEMENTARY INFORMATION: …
Revisions to the Entity List
  To maintain the level of national security warranted for certain encryption items, this rule revises the license requirements for twelve entities. The removal of ECCNs 5A992.a and .b, 5D992.a and .b and 5E992.a from the Commerce Control List (CCL) implemented in a separate rule entitled “Wassenaar Arrangement 2015 Plenary Agreements Implementation, Removal of Foreign National Review Requirements, and Information Security Updates,” also published in today’s Federal Register, designates these encryption items as EAR99. To prevent these EAR99 encryption items from being exported, reexported or transferred to certain prohibited end users without a license, this rule revises the license requirements of twelve Chinese entities on the Entity List to “all items subject to the EAR.” Currently, the license requirements for each of the twelve entities exclude EAR99 items. With the publication of this rule, EAR99 items will be included in the scope of the license requirements for these entities. This rule revises the license requirements for the following twelve entities in China: 33 Institute, 35 Institute, 54th Research Institute of China, Baotou Guanghua Chemical Industrial Corporation, Beijing Aerospace Automatic Control Institute (BICD), Beijing Institute of Structure and Environmental Engineering (BISE), China Aerodynamics Research and Development Center (CARDC), Northwestern Polytechnical University, Shanghai Academy of Spaceflight Technology (SAST), Shanghai Institute of Space Power Sources, Southwest Research Institute of Electronics Technology, and Xi’an Research Institute of Navigation Technology. …
   Dated: September 1, 2016.
Kevin J. Wolf, Assistant Secretary for Export Administration.

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EXIM_a2

2. Commerce/BIS Amends EAR, Implements Wassenaar Arrangement 2015 Plenary Agreements re Removal of Foreign National Review Requirements, and Information Security Updates
(Source: Federal Register) [Excerpts.]
 
81 FR 64655-64692: Wassenaar Arrangement 2015 Plenary Agreements Implementation, Removal of Foreign National Review Requirements, and Information Security Updates
* AGENCY: Bureau of Industry and Security, Commerce.
* ACTION: Final rule.
* SUMMARY: The Bureau of Industry and Security (BIS) maintains, as part of its Export Administration Regulations (EAR), the Commerce Control List (CCL), which identifies certain items subject to Department of Commerce jurisdiction. This final rule revises the CCL, as well as corresponding parts of the EAR, to implement changes made to the Wassenaar Arrangement’s List of Dual-Use Goods and Technologies (WA List) maintained and agreed to by governments participating in the Wassenaar Arrangement on Export Controls for Conventional Arms and Dual-Use Goods and Technologies (Wassenaar Arrangement, or WA) at the December 2015 WA Plenary Meeting (the Plenary). The Wassenaar Arrangement advocates implementation of effective export controls on strategic items with the objective of improving regional and international security and stability. This rule harmonizes the CCL with the changes made to the WA List at the Plenary by revising Export Control Classification Numbers (ECCNs) controlled for national security reasons in each category of the CCL, as well as making other associated changes to the EAR.
   The changes to the WA List include raising the Adjusted Peak Performance (APP) for high performance computers. The President’s report for High Performance Computers was sent to Congress on June 1, 2016, to set forth the new APP in accordance with the National Defense Authorization Act (NDAA) for FY1998.
   This rule also makes changes to the EAR that were not agreed to at the WA Plenary. APP parameters are amended in several places in the EAR by this rule, such as APP parameters in the de minimis rules, License Exception APP, and related reporting requirements. BIS is also updating license requirements and policies associated with Category 5–Part 2, including revising Export Control Classification Numbers 5A992, 5D992 and 5E992. In addition, this rule removes the Foreign National Review requirement associated with deemed exports under License Exceptions APP and CIV.
* DATES: This rule is effective: September 20, 2016.
* FOR FURTHER INFORMATION CONTACT: For general questions contact Sharron Cook, Office of Exporter Services, Bureau of Industry and Security, U.S. Department of Commerce at 202-482-2440 or by email: Sharron.Cook@bis.doc.gov.
   For technical questions contact:
 
  – Categories 0, 1 & 2: Michael Rithmire at 202-482-6105
  – Category 3: Brian Baker at 202-482-5534
  – Categories 4 & 5: Information Technology and Control Division 202-482-0707
  – Category 6 (optics): Chris Costanzo at 202-482-0718
  – Category 6 (lasers): Mark Jaso at 202-482-0987
  – Category 6 (sensors and cameras): John Varesi 202-482-1114
  – Category 8: Michael Tu 202-482-6462
  – Categories 7 & 9: Daniel Squire 202-482-3710 or Reynaldo Garcia 202-482-3462
  – Category 9×515 (Satellites): Mark Jaso at 202-482-0987 or Reynaldo Garcia at 202-482-3462
* SUPPLEMENTARY INFORMATION: The Supplementary Information is separated into four parts:
 
  – Part I–Wassenaar Arrangement Agreement Implementation;
  – Part II–Information Security Update and Simplification;
  – Part III–High Performance Computer Adjusted Peak Performance (APP) changes; and
  – Part IV–Removal of the Foreign National Review (FNR) procedure.
 
   Please note that a particular part of the EAR may be affected by more than one of these Parts and the supplementary information in that Part of the summary will only pertain to the revisions related to that Part. …
 
   Dated: September 1, 2016.
Kevin J. Wolf, Assistant Secretary for Export Administration.

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EXIM_a3

3. NARA/ISOC/ISOO Amends 32 CFR Chapter XX, Government-Wide Controlled Unclassified Information (CUI) Program

(Source: Federal Register) [Excerpts.]
 
81 FR 63324 (Sep. 14, 2016):  NATIONAL ARCHIVES AND RECORDS ADMINISTRATION Information Security Oversight Office 32 CFR Part 2002 [FDMS No. NARA-15-0001; NARA-2016- 048] RIN 3095-AB80, Controlled Unclassified Information
* AGENCY: Information Security Oversight Office, NARA.
* ACTION: Final rule.
* SUMMARY: As the Federal Government’s Executive Agent (EA) for Controlled Unclassified Information (CUI), the National Archives and Records Administration (NARA), through its Information Security Oversight Office (ISOO), oversees the Federal Government-wide CUI Program. As part of that responsibility, ISOO is issuing this rule to establish policy for agencies on designating, safeguarding, disseminating, marking, decontrolling, and disposing of CUI, self-inspection and oversight requirements, and other facets of the Program. The rule affects Federal executive branch agencies that handle CUI and all organizations (sources) that handle, possess, use, share, or receive CUI-or which operate, use, or have access to Federal information and information systems on behalf of an agency.
* DATES: This rule is effective November 14, 2016. The Director of the Federal Register approves the incorporation by reference of certain publications listed in the rule as of November 14, 2016.
* FOR FURTHER INFORMATION CONTACT: Kimberly Keravuori, by email at regulation_comments@nara.gov, or by telephone at 301-837-3151. You may also find more information about the CUI Program, and some FAQs, on NARA’s Web site at http://www.archives.gov/cui/.
* SUPPLEMENTARY INFORMATION: Background In November 2010, the President issued Executive Order 13556, Controlled Unclassified Information, 75 FR 68675 (November 4, 2010) (the Order) to “establish an open and uniform program for managing [unclassified] information that requires safeguarding or dissemination controls.” Prior to that time, more than 100 different markings for such information existed across the executive branch. This ad hoc, agency-specific approach created inefficiency and confusion, led to a patchwork system that failed to adequately safeguard information requiring protection, and unnecessarily restricted information-sharing. As a result, the Order established the Controlled Unclassified Information (CUI) Program to standardize the way the executive branch handles information that requires safeguarding or dissemination controls (excluding information that is classified under Executive Order 13526, Classified National Security Information, 75 FR 707 (December 29, 2009), or any predecessor or successor order; or the Atomic Energy Act of 1954 (42 U.S.C. 2011, et seq), as amended). To develop policy and provide oversight for the CUI Program, the Order also appointed NARA as the CUI EA. NARA has delegated this authority to the Director of ISOO, a NARA component.
 
   We understand the concerns raised in these comments and agree that the penalties and consequences for failing to adequately protect CUI of some types may differ significantly from failure to protect CUI of other types. That being said, we cannot adjust the definition of CUI to exclude export controlled or other protected information; the Executive Order’s definition of CUI is clear and includes all unclassified information that laws, regulations, and Government-wide policies require to have safeguarding or dissemination controls. However, this very concern is the reason why the CUI Program includes both CUI Basic and CUI Specified groups. When we reviewed all the types of protected unclassified information that existed across the Government, and reviewed all the authorities giving rise to each type, we were very aware that some types of protected information had specific protection requirements spelled out in laws-export-related information subject to confidentiality requirements under the Export Administration Act of 1979, as amended (EAR), being one, the Confidential Information Protection and Statistical Efficiency Act (CIPSEA) being another-and they thus could not be handled in the same manner as the vast majority of other CUI types. …
 
   The CUI Program markings will replace other designations, such as SBU, FOUO, and OUO, and any agency- specific labels for CUI, which will all be discontinued. As a result, concerns about how they will integrate are moot. Some CUI qualifies as CUI Specified (such as export controlled information and confidential statistical information under the Confidential Information Protection and Statistical Efficiency Act) due to the existing statutory regime already established for controlling that type of information. …
 
   Regarding the questions about derived CUI, the bottom line is that certain types of information qualify as CUI. If an item of information qualifies as CUI, it doesn’t matter whether it is in some way also derived from another item of information that qualifies as CUI, and it should be marked as CUI either way. Its status as CUI depends upon the information itself and whether it meets the requirements in a law, regulation, or Government-wide policy that establish it as needing controls on safeguarding or disseminating. A document containing CUI that is derived from another document that contains CUI would also be CUI-because it contains controlled information, not simply because it is derived from a document that contains CUI. It is possible the original document contains both CUI and non-CUI and the derived document could therefore contain only information derived from the non-CUI portions of the original document. In such a case, the derived document would not become CUI simply because the information was derived from a CUI document. …
 
   Conclusion: We have thoroughly and carefully considered all the comments and have attempted to clearly explain in this supplementary information section some of our reasoning and changes to the regulation since it was proposed, in hopes of better conveying the scope and nature of the CUI Program and its requirements to those who had questions or concerns. We appreciate the comments and the effort individuals and organizations made to craft them and to think about the CUI Program and the implications of the regulation’s provisions. The comments helped us refine the rule into a much better regulation and one that more clearly explains the Program and its requirements. We realize any new program brings change, and that those changes can be confusing, can seem inconsistent or incompletely thought out, and can appear to be hugely burdensome or unnecessarily complicated at first encounter. We hope that we have alleviated much of those concerns by our responses to these comments and the changes to the regulation. However, if you have additional questions or would like more information, please visit our CUI Web site at http://www.archives.gov/cui/ or contact us directly. We have had to make compromises to the goal of complete or absolute uniformity in deference to the need to balance between several competing, legitimate interests and to develop a Program and requirements that can work for a variety of agencies and types of information, as well as those who receive CUI from agencies. However, we believe strongly that, in the course of those efforts and all the input, discussions, comments, and work contributed by our partners on the CUI Advisory Council and at NIST, agency and industry experts who generously consulted with us, and the many industry, business, organizational, and individual reviewers, we have been able to develop a sound CUI Program that significantly increases uniformity throughout the executive branch, appropriately protects CUI while encouraging sharing and access when appropriate, and does so with the least amount of burden, complexity, and change possible.   …
 
  Dated: August 30, 2016.
David S. Ferriero, Archivist of the United States.

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OGS
OTHER GOVERNMENT SOURCES

OGS_a14. Ex/Im Items Scheduled for Publication in Future Federal Register Editions
(Source: Federal Register)

* Industry and Security Bureau; NOTICES; Orders Denying Export Privileges: Francisco Javier Mendoza-Esquivel, Big Spring, TX [Publication Date: 21 September 2016.]

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OGS_a25. Commerce/BIS: (No new postings.)

(Source: Commerce/BIS)
* * * * * * * * * * * * * * * * * * * *

OGS_a36. State/DDTC: (No new postings.)

(Source: State/DDTC)
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OGS_a47. EU Adopts Autonomous Sanctions Legal Framework Concerning ISIL and Al-Qaida

 
On 20 September 2016, the Council adopted a legal framework, which, for the first time, will allow the EU to apply sanctions autonomously to ISIL/Da’esh and Al-Qaida and persons and entities associated or supporting them. Until now sanctions could only be applied to persons and entities listed by the United Nations or by EU member states acting individually.
 
The EU will be able to impose a travel ban on individuals and an asset freeze on individuals and entities that are identified as being associated with ISIL (Da’esh)/ Al-Qaida. This means that all their assets in the EU will be frozen and that EU persons and entities will also be prohibited from making any funds available to listed persons or entities.
 
The individuals and entities targeted include those who have participated in the planning or perpetrating of terrorist attacks or have provided ISIL (Da’esh)/ Al-Qaida with financing, oil or arms, or have received terrorist training from them. Persons or entities could also be listed for activities such as recruiting; inciting or publicly provoking acts and activities in support of these organisations, or being involved in serious abuses of human rights outside the EU, including abduction, rape, sexual violence, forced marriage and enslavement of persons.
 
The EU will also be able to impose restrictive measures on individuals travelling or seeking to travel both outside the EU, and into the EU, with the aim of supporting, ISIL (Da’esh)/Al-Qaida or receiving training from them. Such measures will target particularly the so-called “foreign fighters“. As a result the EU will be able to list any person who  meets the criteria – including EU nationals who have supported these organisations outside the EU and who then return. The travel ban will prevent listed persons from entering any EU member state. In the case of a listed EU national, the travel ban will prevent the listed person from travelling to any EU member state other than the member state of which that person is a national. 
 
Upon agreement on listing proposals from member states, persons and entities will be listed through a Council decision and a Council regulation adopted unanimously.
 
* * * * * * * * * * * * * * * * * * * *

OGS_a58. EU Amends for the 253rd Time Restrictive Measures Concerning ISIL and Al-Qaeda

 
Regulations:
  – Commission Implementing Regulation (EU) 2016/1683 of 19 September 2016 amending for the 253rd time Council Regulation (EC) No 881/2002 imposing certain specific restrictive measures directed against certain persons and entities associated with the ISIL (Da’esh) and Al-Qaeda organisations

 

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

NWSNEWS

 
Dual-Use Goods. The Bureau of Industry and Security has issued a final rule that, effective Sept. 20, revises the Commerce Control List and corresponding parts of the Export Administration Regulations to implement changes made to the Wassenaar Arrangement’s List of Dual-Use Goods and Technologies at the December 2015 WA plenary meeting, which include raising the adjusted peak performance for high-performance computers.
 
This rule (1) amends APP parameters in several places in the EAR, such as in the de minimis rules, license exception APP, and related reporting requirements, (2) updates license requirements and policies associated with Category 5 – Part 2, including revising ECCNs 5A992, 5D992, and 5E992, and (3) removes the foreign national review requirement associated with deemed exports under license exceptions APP and CIV.
 
Shipments of items removed from license exception eligibility or eligibility for export, reexport, or transfer (in-country) without a license (NLR) as a result of this rule that were on dock for loading, on lighter, laden aboard an exporting carrier, or en route aboard a carrier to a port of export on Sept. 20 pursuant to actual orders for exports, reexports, or transfers to a foreign destination may proceed to that destination under the previous license exception eligibility or NLR so long as they have been exported, reexported, or transferred before Nov. 21. Any such items not actually exported, reexported, or transferred before midnight on Nov. 21 will require a license in accordance with this rule.
 
Entity List. Separately, BIS has issued a final rule that addresses national security concerns resulting from the removal of certain subparagraphs of ECCNs 5A992, 5D992, and 5E992 in the WA rule discussed above and the designation of these encryption items as EAR99 by revising the license requirements for 12 Chinese entities on the Entity List to cover “all items subject to the EAR,” including EAR99 items.
 
This rule also brings the general Entity List license requirements, policies, and procedures under a single section of the EAR (but does not change them) to help the public better locate and comply with these regulations.
 
Shipments of items removed from eligibility for a license exception or NLR export, reexport, or transfer (in-country) as a result of this rule that were en route aboard a carrier to a port of export, reexport, or transfer on Sept. 20 pursuant to actual orders for export, reexport, or transfer to a foreign destination may proceed to that destination under the previous eligibility for a license exception or NLR.

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COMMCOMMENTARY

 
* Authors: Chandri Navorro, Esq., chandri.navarro@hoganlovells.com, 202-637-5640; and Craig A. Lewis, Esq., craig.lewis@hoganlovells.com, 202 637 8613. Both of Hogan Lovells.
 
 
U.S. Customs and Border Protection (CBP) recently issued letters to many major U.S. importers that encourage the recipients to review their recent trade data and CBP’s Informed Compliance Publications (ICPs), and remind them of potential CBP enforcement actions in the case of non-compliance with U.S. Customs laws. Several firm clients have received these letters in the past week. In recent meetings in Washington, D.C. with CBP officials and the Customs bar, we have confirmed that CBP is sending the letters to the top importers that have not been audited in the past ten years, and is targeting companies it views as being at higher risk for Customs non-compliance. CBP officials state that that companies that receive these letters can expect to be subject to a “Focused Assessment” or other CBP audit in the near future.
 
Most importantly, CBP’s letters contain language informing the importer that future violations “could result in seizure and forfeiture of imported merchandise and/or the assessment of monetary penalties.” We understand that CBP is putting the companies on notice for increased penalties, and for a more aggressive stance by Customs regarding the validity of prior disclosures made during the course of an audit.
 
CBP indicated that the letters are intended to encourage importers to conduct internal reviews and to file prior disclosures, and that where prior disclosures are not submitted, CBP will recommend more penalties than has been traditionally the case with Customs audits and Focused Assessments in the past. Importers should ensure that their Import Compliance officials are aware of these letters and CBP’s new audit and prior disclosure procedure.
The letters do not have any impact on a company’s existing obligations, as under “reasonable care”, all importers are already legally obligated, among other things, to review Informed Compliance publications such as those provided with the letter, to have robust import compliance programs in place, and failure of such reasonable care has always put the Company at risk of Customs penalties under 19 U.S.C. § 1592. However, it serves as an indication that the company will likely be subject to a CBP audit in the near future.
 
As a result, companies should ascertain if they have received such a letter, and if so, should start preparing for a CBP audit. Specifically, companies should review their Customs Compliance policies and procedures, and start reviewing the company’s import data to identify any potential compliance failures and penalty risks. All importers are legally obligated to exercise reasonable care with regard to their imports, and CBP believes this reasonable care due diligence is demonstrated through a Customs Compliance Program. In particular, CBP auditors would expect the top importers targeted by these letters to have a robust Customs Compliance Program in place.

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ENEDITOR’S NOTES

(Source: Editor)

 

Notable birthdays:

 

* Joyce Brothers (Joyce Diane Brothers, née Bauer; 27 Oct 1927 – 13 May 2013, was an American psychologist, television personality and columnist, who wrote a daily newspaper advice column from 1960 to 2013.)

  – “Success is a state of mind. If you want success, start thinking of yourself as a success.”

 

* Red Auerbach (Arnold Jacob “Red” Auerbach, 29 Sep 1917 – 28 Oct 2006, was an American basketball coach of the Washington Capitols, the Tri-Cities Blackhawks and the Boston Celtics.)

  – “Just do what you do best.”

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EN_a2
12. 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: 20 Sep 2016: 81 FR 64693-64698: Revisions to the Entity List; and 81 FR 64655-64692: Wassenaar Arrangement 2015 Plenary Agreements Implementation, Removal of Foreign National Review Requirements, and Information Security Updates  

  
*
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 May 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 (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: 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.

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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 subscribers to inform 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.

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