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16-1003 Monday “The Daily Bugle”

16-1003 Monday “Daily Bugle”

Monday, 3 October 2016

TOP
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 
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  1. DHS/CBP Announces Delay of ACE Becoming the Sole CBP-Authorized EDI System for Processing Electronic Drawback and Duty Deferral Entry and Entry Summary Filings 
  1. Ex/Im Items Scheduled for Publication in Future Federal Register Editions 
  2. Commerce/BIS: Russell Henderson Marshall North Loxahatchee, FL, Denied Export Privileges for 10 Years 
  3. State/DDTC: (No new postings.) 
  4. EU Amends Restrictive Measures Concerning Libya 
  1. Expeditors News: “Update: CBP Announces Updated ACE Transition Timeline” 
  2. Reuters: “Brazil Reviewing Rules for Arms Exports, Minister Says” 
  3. ST&R Trade Report: “Defense Trade Policy Regulations Updated to Reflect Recent Changes” 
  1. R.C. Thomsen II, A.D. Paytas & M.M. Shomali: “Changes to Export Controls in September 2016” 
  1. Monday List of Ex/Im Job Openings: 120 Jobs Posted 
  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_a11. DHS/CBP Announces Delay of ACE Becoming the Sole CBP-Authorized EDI System for Processing Electronic Drawback and Duty Deferral Entry and Entry Summary Filings

 
81 FR 68023: Delay of Effective Date for the Automated Commercial Environment (ACE) Becoming the Sole CBP-Authorized Electronic Data Interchange (EDI) System for Processing Electronic Drawback and Duty Deferral Entry and Entry Summary Filings
* AGENCY: U.S. Customs and Border Protection, Department of Homeland Security.
* ACTION: Delay of effective date.
* SUMMARY: On August 30, 2016, U.S. Customs and Border Protection (CBP) published a notice in the Federal Register announcing plans to make the Automated Commercial Environment (ACE) the sole electronic data interchange (EDI) system authorized by the Commissioner of U.S. Customs and Border Protection (CBP) for processing electronic drawback and duty deferral entry and entry summary filings. The changes announced in that notice were to have been effective on October 1, 2016. This notice announces that the effective date for the transition to ACE as the sole CBP-authorized EDI system for electronic drawback and duty deferral entry and entry summary filings is delayed until further notice.
* DATES: The effective date is delayed until further notice: CBP will publish a subsequent notice announcing the effective date when ACE will be the sole CBP-authorized EDI system for processing electronic drawback and duty deferral entry and entry summary filings, and ACS will no longer be a CBP-authorized EDI system for purposes of processing these filings.
* FOR FURTHER INFORMATION CONTACT: Questions related to this notice may be emailed to ASKACE@cbp.dhs.gov with the subject line identifier reading “ACS to ACE Drawback and Duty Deferral Entry and Entry Summary Filings transition”.
* SUPPLEMENTARY INFORMATION: …
   CBP has been assessing stakeholder readiness for the mandatory transition of post-release capabilities in ACE, including the transition of electronic drawback and duty deferral entry and entry summary filings from ACS to ACE. CBP has determined that industry partners need additional time to prepare for the transition to electronic post-release capabilities in ACE. Accordingly, the effective date for all that was announced in the August 30, 2016 Federal Register notice, including the transition to ACE as the sole CBP-authorized EDI system for electronic drawback and duty deferral entry and entry summary filings, is delayed until further notice. CBP will publish a subsequent notice announcing the effective date.
 
   Dated: September 28, 2016.
Kevin K. McAleenan, Deputy Commissioner, U.S. Customs and Border Protection.

 

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

OGSOTHER GOVERNMENT SOURCES

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

 
* Treasury; Foreign Assets Control Office; NOTICES; Blocking or Unblocking of Persons and Properties [Publication Date: 4 October 2016.]  
* * * * * * * * * * * * * * * * * * * *

 
* Respondent: Russell Henderson Marshall, North Loxahatchee, FL
* Charges: On April 24, 2015, in the U.S. District Court for the Southern District of Florida, Russell Henderson Marshall (“Marshall”) was convicted of violating the International Emergency Economic Powers Act (50 U.S.C. § 1701, et seq. (2012)) (“IEEPA”). Specifically, Marshall was convicted of violating IEEPA and a U.S. Department o f Commerce denial order by engaging in negotiations concerning selling, delivering, or otherwise servicing transactions involving items exported from the United States and subject to the Regulations, to wit: three temperature transmitters used on F-16 fighter jets to Thailand, and a saddle part for the J-69 engine used on 737 military trainer aircraft to Pakistan. Marshall was sentenced to 41 months of imprisonment, two years of supervised release, a $200 assessment and ordered to surrender to U.S. Immigration and Customs Enforcement for removal from the United States upon completion of incarceration.
* Debarred: 10 Years from the date of Marshall’s conviction, until April 24, 2025.
* Date of Order: 30 Sep 2016

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

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

 
Regulations:
  – Council Implementing Regulation (EU) 2016/1752 of 30 September 2016 implementing Article 21(2) of Regulation (EU) 2016/44 concerning restrictive measures in view of the situation in Libya
 
Decisions:
  – Council Decision (CFSP) 2016/1755 of 30 September 2016 amending Decision (CFSP) 2015/1333 concerning restrictive measures in view of the situation in Libya
* * * * * * * * * * * * * * * * * * * *

NWSNEWS

NWS_a16. Expeditors News: “Update: CBP Announces Updated ACE Transition Timeline”
(Source: Expeditors News)
 
On September 28, 2016 U.S. Customs and Border Protection (CBP) updated the ACE Mandatory Use Dates page on the CBP website, announcing that the dates for the post-release capacity transition has been moved again from October 29, 2016 to tentatively January 2017.
 
According to the notice, CBP decided, “to allow additional time for our trade stakeholders to transition these capabilities to ACE.” This transition also allows for additional time to receive and review public comments on the capability changes.
 
The following capabilities will be affected by the date change:
 
  – Liquidation
  – Drawback
  – Reconciliation
  – Duty Deferral
  – Statements
 
CBP will be advising on the specific transition date in the next coming weeks.
 
The Mandatory Date page can be accessed here.
* * * * * * * * * * * * * * * * * * * *

NWS_a27. Reuters: “Brazil Reviewing Rules for Arms Exports, Minister Says”
(Source: Reuters)
 
Brazil is reviewing its procedures for controlling arms exports, Defense Minister Raul Jungmann said on Thursday, when asked about an investigation into a sale of guns by Forjas Taurus SA that allegedly violated U.N. sanctions.
 
  “We are updating the regulations in this area, seeking objectivity and transparency. They need updating,” the minister said. Jungmann said the review was part of a “periodic” update of arms export regulations.
 
Taurus, the largest weapons manufacturer in Latin America, confirmed a Reuters report this month of charges against two former executives who prosecutors allege sold weapons in 2013 to a Yemeni arms trafficker who was on a U.N. sanctions list.
 
Prosecutors said Fares Mohammed Hassan Mana’a, who was placed under U.N. sanctions in 2010 for violating an arms embargo in Somalia, then redirected the weapons into his country’s civil war.
 
In an emailed statement on Thursday, Taurus – which does not face any charges in the case – said the review on arms imports and exports was part of an ongoing discussion on changes to legislation on the purchase of Brazilian firearms that had been taking place for months.
 
Brazilian prosecutors charged the two former Taurus executives in May with shipping 8,000 handguns to Mana’a. The U.N. sanctions banned any weapons sales or financing for the trafficker, and ordered an asset freeze and travel ban on him.
 
U.S. President Barack Obama also named Mana’a and 10 others in a 2010 executive order banning business with individuals and groups accused of contributing to unrest in Somalia.
 
Taurus said in the statement that the arms were destined for the government of Djibouti and had all the necessary licenses, and Mana’a had acted as an intermediary. It said that it halted another shipment negotiated with Mana’a after learning about suspicions surrounding the Yemeni arms dealer.
 
A lawyer for the two former Taurus export executives charged by prosecutors has said the accusations “do not reflect the facts of the matter.”
* * * * * * * * * * * * * * * * * * * *

NWS_a38. ST&R Trade Report: “Defense Trade Policy Regulations Updated to Reflect Recent Changes”

 
The Department of State has issued an interim final rule amending the International Traffic in Arms Regulations as follows. These amendments were effective as of Sept. 29 and comments on them are due no later than Oct. 31.
 
  – designates Tunisia as a major non-NATO ally (MNNA status qualifies a country for certain privileges supporting defense and security cooperation, including eligibility for training, loans of equipment for cooperative research and development, and ultimately foreign military financing for commercial leasing of certain defense articles)
  – reorganizes the content in several paragraphs to clarify the intent of the ITAR (e.g., consolidating the list of proscribed countries and the provisions relevant to the rationale for defense trade sanctions)
  – updates defense trade policy regarding Eritrea, Somalia, and the Democratic Republic of Congo to reflect exemptions from the existing arms embargoes against those countries adopted by the United Nations Security Council
  – updates defense trade policy regarding Liberia and Côte d’Ivoire to reflect the termination of the UN sanctions regime (including arms embargoes) against those countries
  – updates defense trade policy regarding Sri Lanka to reflect the removal of licensing restrictions pursuant to the Consolidated Appropriations Act of 2016
  – updates defense trade policy regarding Vietnam to reflect the State Department’s lifting of the ban on lethal weapons sales to that country

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

COMMCOMMENTARY

COMM_a19. R.C. Thomsen II, A.D. Paytas & M.M. Shomali: “Changes to Export Controls in September 2016”

(Source: Thomsen & Burke, LLP) [Excerpts.]

* Authors: Roszel C. Thomsen, Esq., Roz@t-b.com; Antoinette D. Paytas, Esq., Toni@t-b.com; and Maher M. Shomali, Esq., maher@t-b.com. All of Thomsen & Burke, LLP.
 
This memo summarizes the regulatory, legislative, and enforcement developments with respect to U.S. and multilateral export controls during the month of September 2016. Changes to the regulations published in the Federal Register are explained at greater length in the Regulatory Summary, as is our custom.  
 
Wassenaar and Encryption Changes
 
Earlier this month, we circulated two Updates summarizing the Changes to the Encryption Regulations and Revisions to the EAR to Implement the Wassenaar Changes. These changes resulted from a final rule amending the Commerce Control List (CCL) of the Export Administration Regulations (EAR) by
 
  (1) Implementing the changes agreed to by the Wassenaar Arrangement (WA) at the 2015 Plenary by revising 58 Export Control Classification Numbers (ECCNs)and adding two ECCNs, as well as adding a General “Information Security” Note, revising WA reporting requirements, adding four (4) definitions , removing three (3) definitions, and revising twelve (12) definitions in the EAR.
  (2) Adding license exception eligibility for two (2) ECCNs and removes license exception eligibility for four (4) ECCNs.
  (3) Raising the Adjusted Peak Performance (APP) for high performance computers, as well as technology and software for the development and production of such computers.
  (4) Updating license requirements and policies associated with Category 5 – Part 2. Lastly, this rule removes the Foreign National Review requirement associated with deemed exports under License Exceptions APP and CIV.
 
As we mentioned in the Encryption Update, this is perhaps the “last gasp” of the ECR process, which so far has resulted in extensive changes to the U.S. Munitions List of the ITAR and creation of the Commerce Munitions List of the EAR, but left the controls on Encryption Items essentially static since the last significant changes in 2010. We categorized the most significant changes as Process Improvements and Updates to the “Restricted Items,” as follows:
 
Process Improvements
 
  – ENC Registration and Annual Reporting Consolidation. The ENC Registration requirement will be eliminated. However, elements of the ENC Registration will be added to the required Annual Reports for items described in Sections 740.17(b)(1) or Section 742.15(b)(1) of the EAR. (These sections describe products frequently referred to as “Unrestricted” and “Mass Market” Encryption Items.). The new, updated requirements for the Annual Reports will be published in Supplement No. 8 to Part 742 of the EAR.
  – CCATS Accepted as Substitute for Annual Reporting. Products described in a CCATS will not be subject to the new Annual Reporting requirement. This will eliminate the duplication of effort, where exporters obtain CCATS for Unrestricted and Mass Market Encryption Items that otherwise require Annual Reporting. In addition, once included in an Annual Report, products do not need to be included in subsequent Annual Reports.
  – Exports to “Less Sensitive Government End-Users” Authorized under License Exception ENC. Previously, exporters had to obtain an export license or Encryption Licensing Arrangement (ELA) in order to export Encryption Items described in Section 740.17(b)(2) to Government End-Users located in countries outside of Supplement No. 3 to Part 740 of the EAR. (Section 740.17(b)(2) describes products frequently referred to as “Restricted” Encryption Items). Such products will now become eligible for export under License Exception ENC to “Less Sensitive Government End-Users” described in a new definition added to Part 772 of the EAR. These are the same types of end-users that have been previously authorized under Global ELAs. Exports to more sensitive Government End-Users will continue to require either an ELA or an individual license.
  – Publicly Available Software and Source Code No Longer Subject to the EAR. After filing of a one-time Notification, encryption software and source code that is publicly available no longer will be subject to the EAR.
  – Amendments to the Technical Questionnaire for Encryption Items. BIS has made additions, subtractions and clarifications to the technical questionnaire that must be submitted in connection with classification requests and other submissions for encryption products. The new requirements are described in the revised Supplement No. 6 to Part 742 of the EAR.
  – Authorization of Intra-Company Transfers of Encryption Items. A new provision permitting intra-company transfers of encryption items will be added in a new Section 740.17(a)(1)(ii) of the EAR. This will authorize exports and reexports among related parties for internal use when the parent company is headquartered in a country that is listed in Supplement No. 3 to Part 740.
 
Updates to Section 740.17(b)(2) “Restricted Items”
 
The controls on Restricted Encryption Items described in Section 740.17(b)(2) of the EAR will be updated, featuring a new definition of “Network Infrastructure,” as well as some important, albeit modest, increases to the control parameters. Definition of “Network Infrastructure”. BIS will publish the following definition of “network infrastructure” as a Note to items controlled in Section 740.17(b)(2) of the EAR:   2. ‘Network infrastructure’ (as applied to encryption items). A ‘network infrastructure’ commodity or software is any “end item,” commodity or “software” for providing one or more of the following types of communications:”
 
  (a) Wide Area Network (WAN);
  (b) Metropolitan Area Network (MAN);
  (c) Virtual Private Network (VPN);
  (d) Satellite;
  (e) Digital packet telephony/media (voice, video, data) over Internet protocol;
  (f) Cellular; or
  (g) Trunked.

Note 1

to paragraph 2: ‘Network infrastructure’ end items are typically operated by, or for, one or more of the following types of end users:
 
  (1) Medium- or large- sized businesses or enterprises;
  (2) Governments;
  (3) Telecommunications service providers; or
  (4) Internet service providers.

Note 2 to paragraph 2: Commodities, software and component for the “cryptographic activation” of a ‘network infrastructure’ item are also considered ‘network infrastructure’ items.   The underlying concept is that Encryption Items sold to medium and large enterprises, and telecommunications and internet service providers, should be controlled as “Network Infrastructure” items, whereas items sold for use in branch offices of such enterprises and consumers should be exempted.
 
BIS has since published a summary of the Information Security changes on its website.
 
Additional Regulatory Changes
 
Amendments to Existing Validated End-User Authorizations
 
BIS has published a final rule revising the existing Validated End-User (VEU) list for the People’s Republic of China (PRC) by updating the list of eligible destinations (facilities) for VEU Boeing Tianjin Composites Co. Ltd. (BTC). Specifically, BIS amends supplement No. 7 to part 748 of the EAR to change the written address of BTC’s existing facility. The physical location of the facility has not changed. BIS updated the facility address after receiving notification of the change from BTC. The End-User Review Committee reviewed and authorized the amendment in accordance with established procedures. The updated address contributes to maintaining accurate location information for BTC’s VEU.
 
Russian Sanctions: Additions to the BIS Entity List
 
BIS has published a final rule amending the EAR by adding eighty-one entities under eighty-six entries to the Entity List. The eighty-one entities who are added to the Entity List have been determined by the U.S. Government to be acting contrary to the national security or foreign policy interests of the United States. BIS is taking this action to ensure the efficacy of existing sanctions on the Russian Federation (Russia) for violating international law and fueling the conflict in eastern Ukraine. These entities will be listed on the Entity List under the destinations of the Crimea region of Ukraine, Hong Kong, India, and Russia.
 
This rule implements the decision of the ERC to add eighty-one entities under eighty-six entries to the Entity List. These eighty-one entities are being added on the basis of Sec. 744.11 (License requirements that apply to entities acting contrary to the national security or foreign policy interests of the United States) of the EAR. The eighty-six entries being added to the Entity List consist of seven entries in the Crimea region of Ukraine, two entries in Hong Kong, two entries in India, and seventy-five entries in Russia. There are eighty-six entries for the eighty-one entities because five entities are listed in multiple locations, resulting in five additional entries.
 
Additional information, including a list of these entities, can be found in our Regulatory Summary.
 
Russian Sanctions: Additions to the OFAC Sanctions List and New General License
 
OFAC updated the Specially Designated Nationals List and the Sectoral Sanctions Identifications List to target sanctions evasion and other activities related to the conflict in Ukraine. A list of these entries can be found in the attached Regulatory Summary.
 
Concurrent with the listed parties, OFAC also published Russia/Ukraine-related General License No. 10, “Authorizing Certain Transactions Otherwise Prohibited by Executive Order 13685 Necessary to Divest or Transfer Holdings in Certain Blocked Entities”. This general license authorizes certain transactions that are ordinarily incident and necessary to divest or transfer to a non-U.S. person holdings in PJSC Mostotrest.
 
Enforcement

Pakistani National Sentenced for Attempting to Export Sensitive Technology for Pakistani Military
 
Syed Vaqar Ashraf of Lahore, Pakistan, was sentenced to 33 months in prison this month. Ashraf previously pleaded guilty to conspiracy to export defense controlled items without a license. Ashraf attempted to procure gyroscopes and illegally ship them to Pakistan so they could be used by the Pakistani military. In an effort to evade detection, Ashraf arranged for the gyroscopes to be purchased in the name of a shell company and caused the gyroscopes to be transshipped to Belgium. Ashraf then traveled to Belgium to inspect the gyroscopes and arrange for their final transport to Pakistan.
On August 26, 2014, Ashraf was arrested by the Belgium Federal Police at the request of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) agents, who had been conducting an undercover investigation of Ashraf’s activities.
 
World Class Technology Corporation Settles with OFAC for Alleged Iranian Sanctions Violations
 
World Class Technology Corporation (WCT) of Portland, Oregon, agreed to pay $43,200 to settle potential civil liability for alleged violations of the Iranian Transactions and Sanctions Regulations (ITSR). The alleged violations involve WCT’s exportation of seven shipments of orthodontic devices, collectively valued at $59,886, from the United States to Germany, United Arab Emirates, and/or Lebanon, with knowledge or reason to know that the shipments were intended specifically for supply, transshipment, or reexportation to Iran, in apparent violation of Sections 560.204 and 560.206 of the ITSR between April 2008 and July 2010. OFAC determined that WCT did not voluntarily self-disclose the alleged violations, and that the alleged violations constitute a non-egregious case. The maximum statutory civil penalty amount for the alleged violations was $1,750,000, and the base penalty amount was $80,000.
 
PanAm Seed Company Settles with OFAC for Alleged Iranian Sanctions Violations
 
PanAmerican Seed Company (PanAm Seed) of West Chicago, Illinois, a division of Ball Horticultural Company (“Ball Horticultural”), has agreed to pay $4,320,000 to settle potential civil liability for alleged violations of the ITSR. Specifically, OFAC alleged that from on or about May 5, 2009 to on or about March 2, 2012, PanAm Seed violated Section 560.204 of the ITSR by indirectly exporting seeds, primarily of flowers, to two Iranian distributors on 48 occasions. OFAC determined that PanAm Seed did not voluntarily self-disclose the Alleged Violations to OFAC, and that the Alleged Violations constitute an egregious case. Both the statutory maximum and base penalty civil monetary penalty amounts for the Alleged Violations were $12,000,000.

For a number of years, up to and including 2012, PanAm Seed made 48 indirect sales of seeds to two Iranian distributors. PanAm Seed shipped the seeds to consignees based in two third- countries located in Europe or the Middle East, and PanAm Seed’s customers arranged for the re-exportation of the seeds to Iran. Personnel (including several mid-level managers) from various business units within PanAm Seed and/or Ball Horticultural were aware of U.S. economic sanctions programs involving Iran and the need to apply for and obtain a specific license from OFAC in order to export the seeds in question. Despite this knowledge, PanAm Seed engaged in a pattern or practice designed to conceal the involvement of Iran and/or obfuscated the fact that the seeds were ultimately destined for distributors located in Iran.

Chinese Nationals and Company Charged with Using Front Companies to Evade U.S. Sanctions

Four Chinese nationals and a trading company based in Dandong, China, were charged by criminal complaint with conspiring to evade U.S. economic sanctions and violating the Weapons of Mass Destruction Proliferators Sanctions Regulations (WMDPSR) through front companies by facilitating prohibited U.S. dollar transactions through the United States on behalf of a sanctioned entity in the Democratic People’s Republic of Korea (North Korea) and to launder the proceeds of that criminal conduct through U.S. financial institutions.
 
On Aug. 3, 2016, a U.S. Magistrate Judge Joseph A. Dickson of the District of New Jersey signed a criminal complaint charging Ma Xiaohong (Ma) and her company, Dandong Hongxiang Industrial Development Co. Ltd. (DHID), and three of DHID’s top executives, general manager Zhou Jianshu (Zhou), deputy general manager Hong Jinhua (Hong) and financial manager Luo Chuanxu (Luo), with conspiracy to violate the International Emergency Economic Powers Act (IEEPA) and to defraud the United States; violating IEEPA; and conspiracy to launder monetary instruments. OFAC also imposed sanctions on DHID, Ma, Zhou, Hong and Luo for their ties to the government of North Korea’s weapons of mass destruction proliferation efforts.
 
In addition, the department filed a civil forfeiture action for all funds contained in 25 Chinese bank accounts that allegedly belong to DHID and its front companies. The department has also requested tha the federal court in the District of New Jersey issue a restraining order for all of the funds named in the civil forfeiture action, based upon the allegation that the funds represent property involved in money laundering, which makes them forfeitable to the United States. There are no allegations of wrongdoing by the U.S. correspondent banks or foreign banks that maintain these accounts.
 
According to criminal and civil complaints, DHID is primarily owned by Ma and is located near the North Korean border. DHID allegedly openly worked with North Korea-based Korea Kwangson Banking Corporation (KKBC) prior to Aug. 11, 2009, when the OFAC designated KKBC as a Specially Designated National (SDN) for providing U.S. dollar financial services for two other North Korean entities, Tanchon Commercial Bank (Tanchon) and Korea Hyoksin Trading Corporation (Hyoksin). President Bush identified Tanchon as a weapons of mass destruction proliferator in June 2005, and OFAC designated Hyoksin as an SDN under the WMDPSR in July 2009. Tanchon and Hyoksin were so identified and designated because of their ties to Korea Mining Development Trading Company (KOMID), which OFAC has described as North Korea’s premier arms dealer and main exporter of goods and equipment related to ballistic missiles and conventional weapons. The United Nations (UN) placed KOMID, Tanchon and Hyoksin on the UN Sanctions List in 2006. In March 2016, KKBC was added to the UN Sanctions List.
 
In August 2009, Ma allegedly conspired with Zhou, Hong and Luo to create or acquire numerous front companies to conduct U.S. dollar transactions designed to evade U.S. sanctions. The complaints allege that from August 2009 to September 2015, DHID used these front companies, established in offshore jurisdictions such as the British Virgin Islands, the Seychelles and Hong Kong, and opened Chinese bank accounts to conduct U.S. dollar financial transactions through the U.S. banking system when completing sales to North Korea. These sales transactions were allegedly financed or guaranteed by KKBC. These front companies facilitated the financial transactions to hide KKBC’s presence from correspondent banks in the United States, according to the allegations in the complaints. As a result of the defendants’ alleged scheme, KKBC was able to cause financial transactions in U.S. dollars to transit through the U.S. correspondent banks without being detected by the banks and, thus, were not blocked under the WMDPSR program. …

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

MSEX/IM MOVERS & SHAKERS

MS_a110
. Monday List of Ex/Im Job Openings: 120 Jobs Posted

(Source: Editor)  


 
Published every Monday or first business day of the week.  Send openings in the following format to
apbosch@fullcirclecompliance.eu
.
 
COMPANY; LOCATION; POSITION TITLE (WEBLINK); CONTACT INFO; REQ ID

*” New listing this week:

 

* 3M; Maplewood MN;
Trade Compliance Project Leader
; Requisition ID: 112850

* AAR Corp; Wood Dale IL;
Trade Compliance Manager
; Requisition ID: 5923

* Abbvie; Lake County IL;
Senior Analyst, Global Trade Compliance
; Requisition ID: 1605835

* Agilent; Singapore;
Global Trade Compliance Manager – South Asia Region
; Requisition ID: 2068249

* Amazon; London, UK;
Trade Compliance Program Manager (M/F)
; Requisition ID: 429019

* Amazon; Seattle WA;
Compliance Investigator
; Requisition ID: 432560
* Amazon; Seattle WA;
Compliance Investigator
; Requisition ID: 432561
* Amazon; Seattle WA;
Compliance Investigator
; Requisition ID: 432564
* Amazon; Seattle WA;
Sanctions Compliance Specialist
; Requisition ID: 431298

* Amazon; Seattle WA;
NA Compliance Analyst; Requisition ID: 256357

* Amazon; Seattle WA;
Prime Air Trade Compliance Program Manager; Requisition ID: 395658

* Amazon; Singapore;
Sr. Trade Compliance Manager
; Requisition ID: 441734

* Aramco Services Company; Houston TX;
Trade Compliance Specialist
; Requisition ID: 295802

* Armstrong Flight Research Center; Edwards AFB CA; Export Control Specialist; Requisition ID: AF16D0026

* Beckman Coulter; Nyon Switzerland;
Senior Trade Compliance Manager – L&D EMEAI
; Requisition ID: DIA009227


* Bourns Inc.; Riverside CA;
Director Worldwide Contracts
;
BournsHR.Riv@bourns.com


* Bunn-O-Matic Corporation; Springfield IL;
Global Logistics Analyst
;
employment.openings@bunn.com
; GO1678
* Bunn-O-Matic Corporation; Springfield IL;
Global Trade Compliance Analyst
;
employment.openings@bunn.com
; GO1687

* Cargill; Wayzata MN;
North America Customs Advisor

* Citigroup; Tampa FL;
Compliance Officer – Global Sanctions OFAC Compliance
; Requ
isition ID:
16065173

* CONMED Corporation; Utica NY;
Logistics & Trade Compliance Analyst
; Requisition ID: 3469

* Continental; Manila,
Philippines;
Head of Transportation and Foreign Trade Compliance
; Requisition ID: 42475BR

* Coriant; Naperville IL;
Sr Mgr of Global Trade Compliance
; Requisition ID: 11353

* DeLaval; Kansas City MO;
Trade Compliance Manager

* DoD/DSS; Parsippany NJ; Industrial Security Specialist; Requisition ID: DSS-16-1758834-B

* DoD/DSS; San Diego CA; Industrial Security Specialist; Requisition ID: DSS-16-1748385-MP

* DRS Technologies; Germantown MD;
Senior Trade Compliance Manager
;
Requisition ID: 54749
* DRS Technologies; Melbourne FL;
Senior Trade Compliance Specialist
; Requisition ID: 59327

*
DynCorp International LLC; Fort Worth TX;
BD Trade Compliance Manager
; Requisition ID: 1601114

* Esterline Technologies Corporation; Bellevue WA;
Audit Manager – Compliance
; Requisition ID: 8215BR

* Esterline Technologies Corporation; Bellevue WA;
Senior Manager Trade Compliance – Segment Jurisdiction and Classification
; Requisition ID: 7187BR


* Esterline Technologies Corporation; Buena Park CA;
Trade Compliance Specialist 3
; Requisition ID: 6025BR

* Esterline Technologies Corporation; Brea CA;
Trade Compliance Manager; Requisition ID: 7333BR

* Esterline Technologies Corporation; Paso Robles CA;
Trade Compliance Manager
; Requisition ID: 6148BR

* Esterline Technologies Corporation; Tijuana, Mexico;
Trade Compliance Specialist IV
; Requisition ID: 8341BR

* Esterline Technologies Corporation; Valencia CA;
Trade Compliance Manager
; Requisition ID: 6648BR

* Expeditors; Bangkok, Thailand; Regional Trade Compliance Manager – Indochina & Philippines
* Export Solutions Inc.; Melbourne FL; 

Trade Compliance Specialist II

info@exportsolutionsinc.com

* FLIR Systems; Arlington VA;
Director of Defense Trade Licensing & Compliance

* Google; Hyderabad, India; 
Logistics Trade Compliance Manager, APAC/India 

* Graco; Rogers MN;
Trade Compliance Supervisor 

* Henderson Group Unlimited Inc.; Wash DC;
Commodities Jurisdiction Analyst
;
alannasmith@hendersongroupinc.net


* Henkel; Amsterdam, the Netherlands;
Global Trade Compliance Manager (m/f)
; Requisition ID:
160004JX

* IBM; Dallas TX;
Global Trade Compliance Senior Analyst
; Requisition ID: 55904BR
* IBM; Tulsa OK;
Global Trade Compliance Manager
; Requisition ID: 61779BR

* ICAT Logistics; Elkridge MD;
Domestic Operations Agent 

* ICAT Logistics; Elkridge MD;
International Operations Agent 


*
IPG Photonics; Oxford MA;
Trade Compliance Analyst

* L-3 Communications; Greenville TX;
International Trade Compliance Admin 2
; Requisition ID: 083430

* L-3 Communications, Platform Integration Division; Waco TX;
Export/Import Compliance Administrator A3
; Requisition ID: 083171

* Lam Research Corporation; Fremont CA:
Foreign Trade Analyst 6
; Requisition ID: 12079BR

* Lumber Liquidators; Toano VA;
Compliance Auditor
; Requisition ID: 913

* Lumber Liquidators; Toano VA;
Supply Chain Compliance Specialist
; Requisition ID: 1578

* Lutron; Coopersburg PA; Trade Compliance Coordinator; Requisition ID: 2834

* Lutron; Coopersburg PA;
Trade Manager
; Requisition ID: 2926

* MACOM; Lowell MA;
Trade Compliance Analyst
;
David.Cassin@MACOM.com
; Requisition ID: 1522

* MACOM; Lowell MA;
Trade Compliance Analyst 1
; Requisition ID: 1529

* Meggitt (Erlanger), LLC; Erlanger KY;
Trade Compliance Manager
; Requisition ID: 22005

* Meggitt Advanced Composites Limited; Shepshed, UK;
Trade Compliance Officer
; Requisition ID: 22122

* Meggitt PLC, Los Angeles;
Trade Compliance Administrator II
; Requisition ID: 22591

* Mentor Graphics; Fremont CA;
Senior Global Trade Compliance Manager
; Requisition ID: 5129

* Microsoft; Redmond WA;
Trade Director, Regulatory Compliance & Standards
;
rybeli@microsoft.com
; Requisition ID: 973167

* Michael Baker International; Reston VA;
Export Compliance Officer
;
IRC52307

* Monsanto; St Louis MO;
Import/Export Trade Specialist
; Requisition ID: 01CGT
* Moog; East Aurora NY;
Export Compliance Manager
;
anihill@moog.com
; Requisition ID: 161913

* 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

* Northrop Grumman Corporation; Sierra Vista AZ and Herndon VA;

International Trade Compliance Analyst 4
; Requisition ID: 16008077 

* Northrop Grumman Corporation; Falls Church VA;
International Trade Compliance Analyst 3/4
; Requisition ID: 16016665

* Northrop Grumman Corporation; Falls Church VA;
Manager 2, Global Trade Security & Compliance
; Requisition ID: 16014585

* Northrop Grumman Corporation; International Posting (Europe);
Global Trade Management Europe 1
; Requisition ID: 16016526

* Northrop Grumman Corporation; Herndon VA;
Manager International Trade Compliance 2
; Requisition ID:
16003572
* Northrop Grumman Corporation; Linthicum MD;
International Trade Compliance Analyst 3
; Requisition ID: 16013233
* Northrop Grumman Corporation; San Diego CA;
Manager International Trade Compliance 2
; Requisition ID: 16017984


* PerkinElmer; Waltham MA;
Manager Trade & Customs

* Qorvo; Richardson TX;
Import/Export Analyst
; Requisition ID:
0004791
* Raytheon; Arlington VA;
Export Licensing SME/Empowered Official
; Requisition ID: 85810BR


* Raytheon; El Segundo CA;
Manager I Export-Import Control
; Requisition ID: 85354BR

* Raytheon; Fullerton CA;
Global Trade Compliance Manager
; Requisition ID: 85521BR

* Raytheon; Indianapolis IN;
Director Export-Import Control
; Requisition ID: 86373BR
* Raytheon; Indianapolis IN;
Principal SC Compliance Specialist
; Requisition ID: 84932BR

* Raytheon; Rosslyn VA;
Director of Licensing; Requisition ID: 83836BR


* Raytheon; Waltham MA;
Sr Principal SC Compliance Specialist
; Requisition ID: 86169BR

* Sandia National Laboratories; Albuquerque NM;
International Trade Compliance Analyst
; Requisition ID:
654962

* Sekisui; San Diego CA;
International Trade Compliance Associate
; Requisition ID: 1196

*
Sierra Nevada Corporation; Denver CO;
Trade Compliance Licensing Manager
; Requisition ID:
R0001568

* SpaceX; Washington DC;
Counsel – Export Compliance Officer


* Tecomet; Lansing MI;
Export Control Coordinator – EAR/ITAR
; Requisition ID: 1539

* TE Connectivity; Middletown PA;
Senior Director Global Trade Services
; Requisition ID: 2016-73314

* Teva Pharmaceuticals USA, Inc.; North Wales PA;
Export Compliance Specialist; Requisition ID: 16-17768

* Textron Systems; Hunt Valley MD;
Principal Export Compliance Analyst
; Requisition ID: 242851

* Textron Systems; Wilmington MA;
Principal Export Compliance Analyst
; Requisition ID: 242857


* ThermoFisher Scientific; Frederick MD and Pittsburgh PA;
Sr Manager IT Compliance
; Requisition ID: 36114BR
* ThermoFisher Scientific; Matamoros, Mexico;
Import/Export Supervisor
; Requisition ID: 39750BR
* ThermoFisher Scientific; Shanghai, China;
Compliance Director, Greater China
; Requisition ID: 38520BR
* ThermoFisher Scientific; Shanghai, China;
Sr. Compliance Specialist
; Requisition ID: 37066BR
* ThermoFisher Scientific; Tewksbury MA;
Import/Export Specialist
; Requisition ID: 37409BR

* Troy Corporation; Florham Park NJ;
Global Trade and Compliance Manager
; Requisition ID: 306


* United Technologies Corporation, UTC Aerospace Systems; Charlotte NC;
Self-Assessment Senior Specialist
; Requisition ID: 13727BR 
* United Technologies Corporation, UTC Aerospace Systems; Charlotte NC;
Sr. Manager, ITC Contracts & Central Functions
; Requisition ID: 31767BR

* United Technologies Corporation, UTC Aerospace Systems; Charlotte NC;
Manager, ITC-Authorizations
; Requisition ID: 22846BR  
* United Technologies Corporation, UTC Aerospace Systems; Charlotte NC;
Specialist, ITC IT Systems
; Requisition ID: 33792BR

* United Technologies Corporation, UTC Aerospace Systems; Charlotte NC;
Program Manager, Customs
; Requisition ID: 31331BR
* United Technologies Corporation, UTC Aerospace Systems; Charlotte NC;
* United Technologies Corporation, UTC Aerospace Systems; Charlotte NC;
International Trade Compliance Auditor
; Requisition ID: 34285BR

* United Technologies Corporation, UTC Aerospace Systems; Danbury CT;
ITC Site Lead
; Requisition ID: 30565BR

* United Technologies Corporation, UTC Aerospace Systems; Danbury CT; 
Sr Analyst, International Trade Compliance
; Requisition ID: 28174BR


* United Technologies Corporation, UTC Aerospace Systems; Phoenix AZ; Sr Analyst, International Trade Compliance; Requisition ID: 30058BR 
* United Technologies Corporation, UTC Aerospace Systems; Pueblo CO; 
Sr Analyst, Intl Trade Compliance
; Requisition ID: 27643BR


* United Technologies Corporation, UTC Aerospace Systems; Westford MA;
Segment Lead, International Trade Compliance
;
Requisition ID: 30451BR

* Vista Outdoor; Overland Park KS;
Import Specialist, International Trade Operations
; Requisition ID: R0000433

* VWR International, LLC; Radnor PA;
Senior Specialist – Import Compliance
; Requisition ID: 11513


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

ENEDITOR’S NOTES

 
Notable birthdays:

* Gore Vidal (born Eugene Louis Vidal; 3 Oct 1925 – 31 Jul 2012, was an American writer and a public intellectual known for his patrician manner, epigrammatic wit, and polished style of writing.)
  – “It is not enough to succeed. Others must fail.”
 
* Thomas Wolfe (Thomas Clayton Wolfe, 3 Oct 1900 – 15 Sep 1938, was an American novelist of the early twentieth century. Wolfe wrote four lengthy novels, Look Homeward, Angel, being the best known.)
  – “You have reached the pinnacle of success as soon as you become uninterested in money, compliments, or publicity.”
 
* George Bancroft (3 Oct 1800 – 17 Jan 1891, was an American historian and statesman. During his tenure as U.S. Secretary of the Navy, he established the United States Naval Academy at Annapolis in 1845.)
  – “By common consent gray hairs are a crown of glory; the only object of respect that can never excite envy.”

Monday is pun day.

Q. What’s a good name for a retired artist?

A. “Drew.”

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

EN_a212
. 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.
 
*
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, footnotes to amendments that will take effect on 15 November and 31 December, plus a large Index and over 750 footnotes containing case annotations, practice tips, DDTC guidance, and explanations of errors in the official ITAR text.  Subscribers receive updated copies of the BITAR in Word by email, usually revised within 24 hours after every ITAR amendment.  The BITAR is the essential tool of the ITAR professional.  The BITAR is available by annual subscription from the Full Circle Compliance website.  BAFTR subscribers receive a 25% discount on subscriptions to the BITAR, please contact us to receive your discount code.

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

EPEDITORIAL POLICY

* The Ex/Im Daily Update is a publication of FCC Advisory B.V., edited by James E. Bartlett III and Alexander Bosch, and emailed every business day to approximately 7,500 readers of changes to defense and high-tech trade laws and regulations. We check the following sources daily: Federal Register, Congressional Record, Commerce/AES, Commerce/BIS, DHS/CBP, DOJ/ATF, DoD/DSS, DoD/DTSA, State/DDTC, Treasury/OFAC, White House, and similar websites of Australia, Canada, U.K., and other countries and international organizations.  Due to space limitations, we do not post Arms Sales notifications, Denied Party listings, or Customs AD/CVD items.

* INTERNET ACCESS AND BACK ISSUES: The National Defense Industrial Association (“NDIA”) posts the Daily Update on line, and maintains back issues since August, 2009 here.

* RIGHTS & RESTRICTIONS: This email contains no proprietary, classified, or export-controlled information. All items are obtained from public sources or are published with permission of private contributors, and may be freely circulated without further permission. Any further use of contributors’ material, however, must comply with applicable copyright laws.

* CAVEAT: The contents 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.

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