;

16-0923 Friday “The Daily Bugle”

16-0923 Friday “Daily Bugle”

Friday, 23 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.

  1. DoD/DARS Amends DFARS, Adds Moldova as Designated Country Under WTO GPA 
  2. DoD/DARS Amends DFARS, Rights in Technical Data
  1. Ex/Im Items Scheduled for Publication in Future Federal Register Editions 
  2. Commerce/BIS: (No new postings.) 
  3. State/DDTC Posts CVP Summary Report, May 2015 – April 2016 
  1. C. Navarro: “More Imports Ensnared in Import Prohibition under new Forced Labor – This Time Peeled Garlic from China”
  2. R.C. Burns: “Bad News For Anyone Named Paul Davis”
  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 (7 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. DoD/DARS Amends DFARS, Adds Moldova as Designated Country Under WTO GPA
(Source: Federal Register) [Excerpts.]
 
81 FR 65567-65568: Defense Federal Acquisition Regulation Supplement: New Designated Country–Moldova (DFARS Case 2016-D028)
* AGENCY: Defense Acquisition Regulations System, Department of Defense (DoD).
* ACTION: Final rule.
* SUMMARY: DoD is issuing a final rule to amend the Defense Federal Acquisition Regulation Supplement (DFARS) to add Moldova as a new designated country under the World Trade Organization Government Procurement Agreement. (“WTO GPA”)
* DATES: Effective September 23, 2016.
* FOR FURTHER INFORMATION CONTACT: Ms. Amy Williams, telephone 571-372-6176.
* SUPPLEMENTARY INFORMATION: …
   This rule only updates the list of designated countries in the DFARS by adding the newly designated country of Moldova. The definition of “designated country” is updated in each of the following clauses; however, this revision does not impact the clause prescriptions for use, or applicability at or below the simplified acquisition threshold, or applicability to commercial items. The clauses are: DFARS 252.225-7017, Photovoltaic Devices; DFARS 252.225-7021, Trade Agreements; and DFARS 252.225-7045, Balance of Payments Program–Construction Material Under Trade Agreements. …
 
Jennifer L. Hawes, Editor, Defense Acquisition Regulations System. …

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

EXIM_a2

2. DoD/DARS Amends DFARS, Rights in Technical Data
(Source: Federal Register) [Excerpts.]
 
81 FR 65565-65567: Defense Federal Acquisition Regulation Supplement: Rights in Technical Data (DFARS Case 2016-D008)
* AGENCY: Defense Acquisition Regulations System, Department of Defense (DoD).
* ACTION: Final rule.
* SUMMARY: DoD is issuing a final rule to amend the Defense Federal Acquisition Regulation Supplement (DFARS) to implement a section of the National Defense Authorization Act for Fiscal Year 2016 that addresses rights in technical data relating to major weapon systems, expanding application of the presumption that a commercial item has been developed entirely at private expense.
* DATES: Effective September 23, 2016.
* FOR FURTHER INFORMATION CONTACT: Ms. Amy G. Williams, telephone 571-372-6106.
* SUPPLEMENTARY INFORMATION: …
   DoD published a proposed rule in the Federal Register at 81 FR 28812 on May 10, 2016, to implement section 813(a) of the National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2016 (Pub. L. 114-92). Section 813(a) modifies 10 U.S.C. 2321(f) to address rights in technical data relating to major weapon systems.
   Until now, except for commercially available off-the-shelf (COTS) items, a contracting officer’s challenge to asserted restrictions on technical data relating to a major system was sustained unless the contractor or subcontractor submitted information demonstrating that the item was developed exclusively at private expense.
   Section 813(a) revised 10 U.S.C. 2321(f) in two primary ways: (1) The major systems rule was narrowed to apply only to major weapon systems; and (2) the exception to the major systems rule for commercially available off-the-shelf (COTS) items was expanded to include three additional exceptions. More specifically, the formerly COTS-only exception was expanded to include (i) COTS items with modifications of a type customarily available in the commercial marketplace or minor modifications made to meet Federal Government requirements; (ii) commercial subsystems or components of a major weapon system, if the major weapon system was acquired as a commercial item in accordance with 10 U.S.C. 2379(a); and (iii) components of a subsystem, if the subsystem was acquired as a commercial item in accordance with 10 U.S.C. 2379(b).
   There were no public comments submitted in response to the proposed rule. There are no significant changes from the proposed rule made in the final rule. …
   Government procurement.
Jennifer L. Hawes, Editor, Defense Acquisition Regulations System. …

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

OGSOTHER GOVERNMENT SOURCES

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

* Justice; Alcohol, Tobacco, Firearms, and Explosives Bureau; NOTICES; Agency Information Collection Activities; Proposals, Submissions, and Approvals: Application for an Amended Federal Firearms License [Publication Date: 26 September 2016.]

* Justice; Foreign Assets Control Office; NOTICES; Blocking or Unblocking of Persons and Properties [Publication Date: 26 September 2016.]

* State; NOTICES; Foreign Terrorist Organization Designations: al-Aqsa Martyrs’ Brigade (and other aliases) [Publication Date: 26 September 2016.]

*  State; NOTICES; Specially Designated Global Terrorists: Jund al-Aqsa, aka JAA, aka Jund Al-Aqsa, aka The Soldiers of Aqsa, aka Soldiers of al-Aqsa, aka Sarayat al-Quds  [Publication Date: 26 September 2016.]

* U.S Customs and Border Protection; NOTICES; Meetings: User Fee Advisory Committee [Publication Date: 26 September 2016.]

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

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

 
DTCC relaunched its company visit program (“CVP”) in 2015. The program includes onsite visits to industry as an extension of DDTC’s outreach initiatives (“CVP-O”) and engagement in existing compliance cases (“CVP-C”). CVP creates value through increased face-to-face interactions with industry, and benefits the entire Directorate by creating opportunities to share information internally and externally. This report is part of the program relaunch; additional reports summarizing CVP activity will follow. The reports will share some company best practices, provide recommendations for improving compliance programs, and include firsthand information we learned through our onsite interaction. The information included in this report is limited to our site visits and does not include observations or recommendations identified through disclosures or other enforcement activities. The reports are non-attributional and do not include any data identified as being related to a specific company.
 
Summary of Visits
 
May 2015 – April 2016
 
Start Date
End Date
Visit Type
Location
5/1/15
5/1/15
CVP-C Consent Agreement (CA) Monitoring
Poland
6/15/15
6/15/15
CVP-C CA Monitoring
GA
8/20/15
8/21/15
CVP-O
CO
8/18/15
8/19/15
CVP-C Reinstatement
CO
9/28/15
9/30/15
CVP-C CA Monitoring
Canada
11/16/15
11/16/15
CVP-O
VA
12/7/15
12/8/15
CVP-O
MA
12/10/15
12/11/15
CVP-O
RI
12/21/15
12/27/16
CVP-C CA Monitoring
WA & CA
3/9/16
3/10/16
CVP-O
UAE
3/9/16
3/10/16
CVP-O
UAE
2/8/16
2/13/16
CVP-C CA Monitoring
CA & AZ
4/11/16
4/15/16
CVP-C CA Monitoring
CA
4/21/16
4/21/16
CVP-O
Belgium
4/22/16
4/22/16
CVP-C CA Monitoring
Belgium
 
Best Practices Noted During Visits:
 
  – Requiring suppliers to complete a standardized form identifying the jurisdiction/classification of their products and related technical data. Use of such a form may drive more companies to take an active role in identifying and documenting the export control jurisdiction of their products. The form also serves as a standardized tool for clear and consistent recordkeeping.
  – Integrating export control processes into company quality systems and reviews.
  – Physically segregating ITAR-controlled research (including research using ITAR-controlled articles or technical data) at universities.
  – Providing foreign customers with a summary of
TAA requirements, and tying those requirements to the contract with the foreign end-user. This may help expedite the TAA signature process, and can serve as a tool to educate the foreign customer on limitations that may exist when procuring U.S. services and technical data.
  – Incorporating export compliance reviews into IT systems that manage project lifecycles, so that the workflow requires approval from the export compliance function prior to the bid/no-bid business decision.
  – Requiring self-classifications to be reviewed and signed by engineering and technology managers of the cognizant business and a senior technology manager from a separate business unit, serving as an independent peer reviewer.
  – Using incentive programs, such as internal recognition and/or awards, to recognize employees for compliance activities.
 
Recommendations/Observations for Improvement:
 
  – U.S. companies may consider additional outreach and training on ITAR compliance for foreign partners and customers.
  – Processes for identifying dual and third country nationals (DTCNs) should include a requirement to review the bona fide regular employee status in accordance with ITAR Section 126.18.
  – A U.S. applicant should consider including in contracts with foreign parties terms and conditions that ensure it has direct physical access to its U.S. person employees providing defense services. This allows the U.S. applicant to directly oversee compliance of its employees, as required per ITAR 127.1(c).
  – In order to maintain objectivity, universities should ensure internal, independent reviews are used to determine the ITAR-controlled status of current programs and future opportunities.
  – Compliance personnel should identify and document all IT systems that store, or have the potential to store, ITAR-controlled technical data. A current record of who has access to these applications should be maintained.
 
DTCC Takeaways
 
  – With growing frequency, U.S. persons are employed abroad to assist with maintenance, operation and training related to U.S. defense articles acquired by foreign military forces. These activities by U.S. persons may constitute defense services, requiring DDTC registration and authorization coverage. DTCC also notes that former U.S. military personnel who will be working for foreign government-owned entities while carrying out such activities may not be aware – and their would-be employers may not be aware – of separate DOD employment authorization requirements applicable to these arrangements.
  – DDTC should consider increasing its outreach and training initiatives for foreign parties to ITAR authorizations.
  – Companies continue to invest in the areas of IT security and data protection. DDTC should consider providing guidance specifying when a company would be expected to maintain access logs that can verify “potential” versus “actual” access to technical data.

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COMMCOMMENTARY

COMM_a16. C. Navarro: “More Imports Ensnared in Import Prohibition under new Forced Labor – This Time Peeled Garlic from China”

(Source: Hogan Lovells)
 
* Author: Chandri Navarro, Esq., Hogan Lovells , chandri.navarro@hoganlovells.com, 202-637-5640.
 
On Friday, September 16, 2016, U.S. Customs and Border Protection (CBP) issued yet another Withhold Release Order (WRO) on imports allegedly made with forced labor. CBP posted to its website a new WRO on peeled garlic from Hongchang Fruits & Vegetable Products Co., Ltd., adding peeled garlic from China to the list of products that are prohibited from importation.
 
Food products importers should quickly ascertain if they are importing or purchasing peeled garlic products from Hongchang, and should be prepared for supply chain disruptions for garlic products imported from China. CBP is likely to question all imports of garlic from China, regardless of supplier or importer, in order to ascertain if they do or could contain peeled garlic from Hongchang Fruits & Vegetable Products Co., Ltd.
 
Earlier this year, during congressional testimony, CBP Commissioner Gil Kerlikowske indicated his agency’s plans to increase its trade enforcement activities following enactment of the Trade Facilitation and Trade Enforcement Act of 2015 (the Act) on February 24, 2016. The Act empowers CBP to increase enforcement in several critical areas, including the importation of goods produced with slave or forced labor.
 
CBP has yet to issue regulations implementing the forced labor provisions, and has only issued Fact Sheets that provide little detail regarding how importers can prove compliance with the law. The Hogan Lovells’ International Trade and Investment practice, along with Investigation practice have been providing clients with advice on how to prepare for potential WROs, as well as dealing with WROs and detained shipments. We have met with key officials on Capitol Hill and CBP and will continue to follow developments in this emerging area.

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COMM_a27
.
R.C. Burns: “Bad News For Anyone Named Paul Davis”

(Source:
Export Law Blog
. Reprinted by permission.)
 
* Author: R. Clifton Burns, Esq., Bryan Cave LLP, Wash DC, 202-624-3949,
Clif.Burns@bryancave.com
)
 
Yesterday, the Office of Foreign Assets Control (“OFAC”) designated PacNet Services, a Canadian payments processing company, and many of its officers and employees as SDNs under the Transnational Criminal Organization (TCO) program. According to OFAC’s press release, PacNet “knowingly process[ed] payments on behalf of a wide range of mail fraud schemes that target victims in the United States and throughout the world.” Prior to this designation, only ten individuals and entities (comprising seven organizations) had been designated under the TCO program.
 
The head of PacNet, who was designated as part of yesterday’s OFAC action, is an individual and pilot named Paul Davis. According to OFAC, in one of its more colorful allegations, Davis used his piloting skills and aircraft “to move illicit bulk cash within Europe.”
 
Long term readers surely see now what’s coming next. Over the next several weeks, it is likely that anyone anywhere in the world named Paul Davis will confront a financial nightmare as banks, credit card companies and anyone else with screening software will deny them loans, seize their credit card payments, cancel their leases, and otherwise muck up any financial transactions in which they are involved. And, of course, since these Paul Davises are not the “real” Paul Davis, they have no rights at OFAC other than to try to unblock funds each and every time that happens.
 
It really is time for OFAC to have the common decency to figure out a solution for these unintended collateral consequences that occur when people with common names are designated. They do it for companies, like Tidewater, Inc, but simply cannot be bothered with mere individuals. And parents, before giving your kids a common name, think twice. Naming your kid Uriah Aloysius is beginning to look pretty attractive.

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TrainingEX/IM TRAINING EVENTS & CONFERENCES

TE_a28
. 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 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

Informed Compliance Letter from U.S. Customs
;” Deleon Trade LLC, Tuttle Law, and the Braumiller Law Group

* 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: North Reading MA; “Real-World Implementation of the New Export Control Definitions and DCS Rules” Massachusetts Export Center

* 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 10: Webinar; “Exports 101;” Foreign Trade Association

* 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: Farmington Hills MI; “Harmonized Tariff Schedule – Classifications;”
Sandler, Travis & Rosenberg, P.A.; bwhite@sttas.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: Farmington Hills MI; “NAFTA Qualification, Compliance and Recordkeeping (Non-Automotive);”
Sandler, Travis & Rosenberg, P.A.; imeyer@sttas.com

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

* Oct 13: Webinar; “Creative Uses of Standby Letters of Credit and Other Security Tools for Exporters” Massachusetts Export Center

* 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 20: Lowell MA; “Essentials of Harmonized Tariff Classification and Free Trade Agreement Compliance” Massachusetts Export Center

* Oct 20: Webinar; “Conflicts Between EU and US Export Rules;” ECTI; danielle@learnexportcompliance.com; 540-433-3977

* 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: Cerritos CA; “CTPAT Internal Auditor Training Program;” Foreign Trade Association

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


* Nov 9: Sturbridge MA; “Export School Fast Track Certificate Program” Massachusetts Export Center

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

* Nov 14: Long Beach CA; “44th Annual Golf Tournament;” Foreign Trade Association

* 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: Westborough MA; “Essentials of Export Logistics & Regulatory Compliance” Massachusetts Export Center

* 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 9: Boston MA; “Export Expo” Massachusetts Export Center

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

* Dec 16: Webinar; “Navigating the Intersection of HR and Trade Compliance” Massachusetts Export Center

* 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_a19. Bartlett’s Unfamiliar Quotations

(Source: Editor)
 
Notable birthdays:
 
* Robert Bosch (23 Sep 1861 – 12 Mar 1942, was a German industrialist, engineer, and inventor.)
  – “I don’t pay good wages because I have a lot of money; I have a lot of money because I pay good wages.”
 
* Horace Walpole (Horatio Walpole, 4th Earl of Oxford ; 24 Sep 1717 – 2 Mar 1797, was an English art historian, man of letters, antiquarian, and Whig politician.
  – “The whole secret of life is to be interested in one thing profoundly and in a thousand things well.”
 
Friday funnies:
 
Noah and his wife are standing looking at the ark after the flood is over. Noah’s wife says, “I don’t like it Noah — that giant boat is going to be sitting out there on our property forever, blocking our view.  Can’t you get rid of it?” Noah says, “Don’t worry about it dear. It’s taken care of, I left the two termites on board.”
  — Jacob Dickmann, Georgia, Iowa

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

EN_a210. 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 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. 
 
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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.
 
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INTERNATIONAL TRAFFIC IN ARMS REGULATIONS (ITAR)
: 22 C.F.R. Ch. I, Subch. M, Pts. 120-130
  – 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 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.

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