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16-0929 Thursday “The Daily Bugle”

16-0929 Thursday “Daily Bugle”

Thursday, 29 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. State/DDTC Amends ITAR Parts 120 and 126 re Tunisia, Eritrea, Somalia, the Democratic Republic of the Congo, Liberia, Cote d’Ivoire, Sri Lanka, and Vietnam 
  1. Ex/Im Items Scheduled for Publication in Future Federal Register Editions
  2. Commerce/Census: “Updated AESTIR Documentation Posted on CBP.gov” 
  3. Commerce/BIS: (No new postings.) 
  4. DoD/DSS: “DISS Portal and DISS Hierarchy Management Shorts Available on STEPP” 
  5. DoD/DSS: “DSS & NISP Partners Transition To Risk Management Framework” 
  6. DoD/DSS: “Personnel Security Inquiries e-QIP Unavailable on 30 Sep” 
  7. State/DDTC: (No new postings.) 
  8. EU Renews Burundi Sanctions until 31 Oct 2017 
  1. ST&R Trade Report: “ACE Transition Delayed Again”
  1. “The Best Customs Broker Course” Presents a Free Exam-Week Boot Camp 
  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 (29 Sep 2016) 

EXIMEX/IM ITEMS FROM TODAY’S FEDERAL REGISTER

EXIM_a1

1. State/DDTC Amends ITAR Parts 120 and 126 re Tunisia, Eritrea, Somalia, the Democratic Republic of the Congo, Liberia, Cote d’Ivoire, Sri Lanka, and Vietnam
(Source: Federal Register) [Excerpts.]
 
81 FR 66804-66807: RIN 1400-AD95; Amendment to the International Traffic in Arms Regulations: Tunisia, Eritrea, Somalia, the Democratic Republic of the Congo, Liberia, Cote d’Ivoire, Sri Lanka, Vietnam, and Other Changes
* AGENCY: Department of State.
* ACTION: Interim final rule.
* SUMMARY: The Department of State is amending the International Traffic in Arms Regulations (ITAR) to designate Tunisia as a major non- NATO ally (MNNA); reorganize the content in several paragraphs to clarify the intent of the ITAR; update defense trade policy regarding Eritrea, Somalia, the Democratic Republic of the Congo, Liberia, and Côte d’Ivoire to reflect resolutions adopted by the United Nations Security Council; update defense trade policy regarding Sri Lanka to reflect the Consolidated Appropriations Act, 2016; and update defense trade policy regarding Vietnam to reflect a determination made by the Secretary of State.
* DATES: The rule is effective on September 29, 2016 . The Department of State will accept comments on this interim final rule until October 31, 2016.  …
* FOR FURTHER INFORMATION CONTACT: Mr. C. Edward Peartree, Director, Office of Defense Trade Controls Policy, U.S. Department of State, telephone (202) 663-2792, or e-mail DDTCResponseTeam@state.gov. ATTN: Regulatory Change, ITAR Section 126.1 Update 2016.
* SUPPLEMENTARY INFORMATION: In Presidential Determination No. 2015-09, on July 10, 2015, President Obama exercised his authority under § 517 of the Foreign Assistance Act of 1961 (FAA) to designate Tunisia as a MNNA for the purposes of the FAA and the Arms Export Control Act (AECA). The Department of State amends ITAR § 120.32 to reflect this change.
   Paragraphs (a), (c), and (d) of § 126.1 of the ITAR are updated to enhance their clarity. The fundamental content of the aforementioned paragraphs is not changing, but is reorganized in this rule by subject matter. The lists of proscribed countries were previously in multiple paragraphs, but are now consolidated in paragraph (d). Provisions relevant to the rationale for defense trade sanctions, previously located in paragraphs (a), (c), and (d) are now consolidated in paragraph (c).
   Section 126.18 of the ITAR is amended to maintain conformity with revised paragraph (d) of ITAR § 126.1.
   Recent actions by the United Nations (UN), Congress, and the Executive require the Department to amend ITAR § 126.1 to reflect the change in policy towards individual nations identified in that section. On October 23, 2015, the United Nations Security Council (UNSC) adopted United Nations Security Council Resolution (UNSCR) 2244, which reaffirmed the arms embargoes on Eritrea and Somalia. Exemptions from the arms embargo on Somalia are set forth in paragraphs 6 through 11 of UNSCR 2111 and paragraphs 2 through 9 of UNSCR 2142. Thus subparagraphs (1) and (2) of § 126.1 (m) of the ITAR have been revised to reflect this change, and subparagraphs (3) through (6) are added to reflect new exceptions for Somalia as enumerated in UNSCR 2111. The revised control text follows the language as published in the aforementioned UNSCRs.
   Exemptions from the arms embargo on Eritrea are set forth in paragraphs 12 and 13 of UNSCR 2111; consequently, Eritrea will be moved to paragraph (h) of § 126.1. The revised control text follows the language as published in the aforementioned UNSCRs.
   The Department modifies paragraph (h) of ITAR § 126.1 accordingly. On June 23, 2016, the UNSC adopted Resolution 2293, which expanded the exemptions from the arms embargo on the Democratic Republic of the Congo. Exemptions from the arms embargo are set forth in paragraph 3 of the UNSCR. The revised control text follows the language as published in the aforementioned UNSCR.
   The Department modifies paragraph (i) of ITAR § 126.1 accordingly. On May 25, 2016, the UNSC adopted Resolution 2288, which terminated the sanctions regime against Liberia, including restrictions on exports to Liberia of arms and related materiel.
   The Department reserves paragraph (o) to remove Liberia from ITAR § 126.1. On April 28, 2016 the UNSC adopted Resolution 2283, which terminated the sanctions regime against Côte d’Ivoire, including restrictions on exports to Côte d’Ivoire of arms and related materiel.
   The Department reserves paragraph (q) to remove Côte d’Ivoire from ITAR § 126.1. Licensing restrictions relating to Sri Lanka articulated in section 7044(e) of the Consolidated Appropriations Act, 2015, P.L. 113-235, and in previous appropriations acts, were not carried forward in section 7044(e) of the Consolidated Appropriations Act, 2016, P.L. 114-113. Therefore, the Department reserves paragraph (n) to remove Sri Lanka from ITAR § 126.1.      The Secretary of State lifted the ban on lethal weapons sales to Vietnam in May 2016. Accordingly, the Department reserves paragraph (l) and the associated note to remove Vietnam from ITAR § 126.1. For more information, please visit the Directorate of Defense Trade Controls (DDTC) internet website at https://www.pmddtc.state.gov/.
* REQUEST FOR COMMENTS. The Department invites public comment regarding the organization and clarity of paragraphs (a), (c), and (d) of ITAR § 126.1, as set forth in this rulemaking. Comments regarding the foreign policy of the United States as described herein are outside of the scope of this request.  …
  Accordingly, for the reasons set forth above, Title 22, Chapter I, Subchapter M, parts 120 and 126 are amended as follows:
PART 120 – PURPOSE AND DEFINITIONS  …
 
§ 120.32 Major non-NATO ally.
Major non-NATO ally, as defined in section 644(q) of the Foreign Assistance Act of 1961 (22 U.S.C. 2403(q)), means a country that is designated in accordance with section 517 of the Foreign Assistance Act of 1961 (22 U.S.C. 2321k) as a major non-NATO ally for purposes of the Foreign Assistance Act of 1961 and the Arms Export Control Act (22 U.S.C. 2151 et seq. and 22 U.S.C. 2751 et seq.). The following countries are designated as major non-NATO allies: Afghanistan (see § 126.1(g) of this subchapter), Argentina, Australia, Bahrain, Egypt, Israel, Japan, Jordan, Kuwait, Morocco, New Zealand, Pakistan, the Philippines, Republic of Korea, Thailand, and Tunisia. Taiwan shall be treated as though it were designated a major non-NATO ally.
 
PART 126 – GENERAL POLICIES AND PROVISIONS  …
Section 126.1 is amended by:
   a. Revising paragraphs (a), (c), and (d);
   b. Adding paragraph (h);
   c. Revising paragraphs (i)(2) and (3):
   d. Adding paragraph (i)(5):
   e. Removing and reserving paragraph (l);
   f. Revising paragraph (m); and
   g. Removing and reserving paragraphs (n), (o), and (q).
Section 126.18 Section 126.18 is amended by adding a final sentence of paragraph (c)(2) to read: “Although nationality does not, in and of itself, prohibit access to defense articles, an employee who has substantive contacts with persons from countries listed in § 126.1(d)(1) shall be presumed to raise a risk of diversion, unless DDTC determines otherwise.”
[Editor’s note:  The above changes have been made in the 29 Sep 2016 revised edition of Bartlett’s Annotated ITAR (BITAR), distributed to subscribers earlier today.  To get your copy, subscribe at www.FullCircleCompliance.eu.]

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OGS
OTHER GOVERNMENT SOURCES

OGS_a12. Ex/Im Items Scheduled for Publication in Future Federal Register Editions
(Source: Federal Register)

* Defense; RULES; Federal Acquisition Regulations; New Designated Countries – Ukraine and Moldova [Publication Date: 30 September 2016.]

* State; NOTICES; Designations as Global Terrorists: Anas El Abboubi, aka Anas el-Abboubi, aka Anas al-Abboubi, aka Anas Al-Italy, et al. [Publication Date: 30 September 2016.]

* Treasury; Foreign Assets Control Office; NOTICES; Blocking or Unblocking of Persons and Properties [Publication Date: 30 September 2016.]

* U.S. Customs and Border Protection; RULES; Importations of Pesticides and Pesticidal Devices [Publication Date: 30 September 2016.]

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OGS_a23. Commerce/Census: “Updated AESTIR Documentation Posted on CBP.gov”

(Source: census@subscriptions.census.gov, 29 Sep 2016)
 
U.S. Customs and Border Protection (CBP) removed the draft status of the following Automated Export System Trade Interface Requirements (AESTIR) documents and has posted them to the “AESTIR Appendices” and “AESTIR Commodity and Transportation Formats” pages of CBP.gov:
 
 
For more information regarding these changes, please click on the hyperlinks above or visit the “AESTIR Introduction and Guidelines” page of cbp.gov. You may also contact CBP at askace@cbp.dhs.gov or the help desk at 1-866-530-4172, press option 1 and request the ACE Export Team for assistance. Alternatively, users may also contact William Delansky at william.s.delansky@cpb.dhs.gov or David Garcia at david.uscs.garcia@cbp.dhs.gov.
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OGS_a64. Commerce/BIS: (No new postings.)

(Source: Commerce/BIS)
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OGS_a35. DoD/DSS: “DISS Portal and DISS Hierarchy Management Shorts Available on STEPP”

(Source: DoD/DSS)
 
Attention! DISS Portal (EX101.16) and DISS Hierarchy Management (EX100.16) shorts are now available on STEPP.

Individuals must have or create a STEPP account in order to access these shorts. Once signed into STEPP, students can locate the shorts by entering “DISS” or the corresponding codes listed above into the STEPP Search function. For questions, contact CDSE.

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OGS_a46. DoD/DSS: “DSS & NISP Partners Transition To Risk Management Framework”

(Source: DoD/DSS)
 
Effective October 3, 2016, all NISP partners and cleared industry will transition to Risk Management Framework. All expiring accreditations and requests of new accreditations for stand-alone systems must be submitted to DSS using RMF guidelines.
 
The DSS RMF is promulgated in the DSS Assessments and Authorization Process Manual (DAAPM). The DAAPM provides guidance, templates, security controls, System Security Plan (SSP) Templates and other artifacts necessary for the RMF transition and necessary to meeting mandated implementation timelines.

The DSS RMF Resource Center, located at www.dss.mil/rmf, provides implementation guidance and procedures for management of all facilities, networks and systems under DSS cognizance. Contact your regional Authorizing Official (AO) with questions.

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OGS_a57. DoD/DSS: “Personnel Security Inquiries e-QIP Unavailable on 30 Sep”

(Source: DoD/DSS)
 
Personnel security inquiries to include e-QIP (option #2) of the DSS Knowledge Center will be unavailable on Friday, September 30, 2016, but will resume normal business hours on Monday, October 3, 2016.
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OGS_a78. State/DDTC: (No new postings.)

(Source: State/DDTC)
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OGS_a89. EU Renews Burundi Sanctions until 31 Oct 2017

 
On 29 September 2016, the Council renewed the EU restrictive measures against Burundi until 31 October 2017. These measures consist of a travel ban and asset freeze against four persons whose activities were deemed to be undermining democracy or obstructing the search for a political solution to the crisis in Burundi. These activities include acts of violence, repression or incitement to violence, and acts which constitute serious human rights violations.
 
The EU has repeatedly and continuously called on all parties to refrain from, and to condemn, any acts of violence. This is essential if the conditions for progress in the search for a political solution to the crisis are to be put in place and maintained.
 
The Council considered that the absence of progress in the situation regarding the four persons under restrictive measures justified the prolongation of the sanctions.
 
The names of the persons concerned and the reasons for listing them are included in the annex to the decision of 1 October 2015 published in the Official Journal.
 
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NWSNEWS

 
U.S. Customs and Border Protection has announced that it is again postponing the mandatory use of the Automated Commercial Environment for liquidation, drawback, reconciliation, duty deferral, collections, statements, and the Automated Surety Interface. This transition had been scheduled to take place Oct. 29 but CBP states that additional time is needed for stakeholders to prepare and for the agency to gather public comment on the associated regulatory changes. CBP is now targeting January 2017 for the transition and will provide additional clarification regarding the precise date in the coming weeks.
 
In the meantime, all capabilities included in the forthcoming transition that CBP has planned for the certification environment are now operational in that environment, and CBP encourages trade users to take advantage of the additional time to test their software fully. CBP also encourages the trade community to continue to participate in ACE partner government agency pilots, noting that PGAs will provide additional information regarding the conclusion of their pilots as appropriate.
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TEEX/IM TRAINING EVENTS & CONFERENCES

 
* What: Free Customs Broker exam-week study boot camp
* Where: Dallas, Texas
* When: Mon-Thurs, 3-6 October 2016
* Sponsor: Gonzalez, Rolon, Valdespino, and Rodriguez, LLC
* Comments: If you are registered to take the October 5, 2016, customs broker exam, and if you will benefit from a last-minute, full-day cram session with an instructor and other students, you are invited to attend this free course. Instead of waiting weeks or months for CBP to officially tell you whether you passed, attend the Wednesday and/or Thursday Post-Exam Review to informally determine your score.
* Register: Here

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ENEDITOR’S NOTES

(Source: Editor)

 

Notable birthdays:

 

* Jean Francois Paul de Gondi (Jean François Paul de Gondi, cardinal de Retz, 29 Sep 1613 – 24 Aug 1679, was a French churchman, writer of memoirs, and agitator in the Fronde, a series of civil wars in France between 1648 and 1653.)
  – “Nothing sways the stupid more than arguments they can’t understand.”


* Miguel de Cervantes (Miguel de Cervantes Saavedra, 29 Sep 1547 – 22 April 1616, was a Spanish writer who is widely regarded as the greatest writer in the Spanish language, and one of the world’s pre-eminent novelists. His major work, Don Quixote, considered to be the first modern novel, is a classic of Western literature, and is regarded as one of the best works of fiction ever written.)

  – “To be prepared is half the victory.”
  – “Never stand begging for that which you have the power to earn.”

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EN_a2
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.
 
*
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: 29 Sep 2016:
81 FR 66804-66807: RIN 1400-AD95; Amendment to the International Traffic in Arms Regulations: Tunisia, Eritrea, Somalia, the Democratic Republic of the Congo, Liberia, Cote d’Ivoire, Sri Lanka, Vietnam, and Other Changes

  – The only available fully updated copy (latest edition 29 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 with 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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