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16-1014 Friday “The Daily Bugle”

16-1014 Friday “Daily Bugle”

Friday, 14 October 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. Commerce/BIS Amends EAR to Permit Electronic Filing of Reports of Requests for Restrictive Trade Practice or Boycott 
  2. DHS/CBP Seeks Comments on Electronic Notice of Liquidation 
  1. Ex/Im Items Scheduled for Publication in Future Federal Register Editions 
  2. Commerce/BIS: “New Rule Enables Direct Sales to the Cuban People” 
  3. White House Issues Presidential Policy Directive on Cuba 
  4. State/DDTC: (No new postings.) 
  5. Treasury/OFAC Amends Cuban Assets Control Regulations on 17 Oct 
  6. UK BIS: “Exporting Software and Technical Information” 
  1. Expeditors News: “CBP and Census Announce ACE AESDirect Enhancements”
  2. The Gazette: “Cedar Rapids Man Sentenced for Helping Smuggle Guns to Lebanon”
  3. ST&R Trade Report: “Duty Modification Petitions May Now be Submitted; Due by Dec. 12”
  4. ST&R Trade Report: “CBP to Discontinue Paper Notices of Liquidation Actions”
  5. ST&R Trade Report: “Dates and Deadlines: Classification, Supply Chains, Apparel, AD/CV Evasion”
  6. wsoctv.com: “Charlotte Gun Smuggler Sentenced to Three Years”
  1. G.R. Tuttle III: “Census Announces ACE AESDirect Enhancements” 
  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 (30 Sep 2016), DOD/NISPOM (18 May 2016), EAR (14 Oct 2016), FACR/OFAC (18 May 2016), FTR (15 May 2015), HTSUS (30 Aug 2016), ITAR (12 Oct 2016)

EXIMEX/IM ITEMS FROM TODAY’S FEDERAL REGISTER

EXIM_a1

1. Commerce/BIS Amends EAR to Permit 
Electronic Filing of Reports of Requests for Restrictive Trade Practice or Boycott

(Source: Federal Register) [Excerpts.]
 
81 FR 70933-70935: Amendments to the Export Administration Regulations Sec. 760.5, Optional Electronic Filing of Reports of Requests for Restrictive Trade Practice or Boycott
* AGENCY: Bureau of Industry and Security, Commerce.
* ACTION: Final rule.
* SUMMARY: In this rule, the Bureau of Industry and Security (BIS) amends the Export Administration Regulations (EAR) to permit electronic submission as an additional method available to United States persons for reporting requests they receive to take certain actions in furtherance or support of an unsanctioned foreign boycott, as required under the restrictive trade practices or boycotts provisions of the EAR. These amendments are administrative changes to those provisions’ reporting requirements, which currently permit reporting of such requests solely by mail. BIS is making these amendments consistent with U.S. Government policy to modernize regulatory requirements and promote efficiency. This rule also makes conforming regulatory changes.
* DATES: This rule is effective October 14, 2016.
* FOR FURTHER INFORMATION CONTACT: Cathleen Ryan, Director, Office of Antiboycott Compliance, by telephone at (202) 482-0520 or by email at Cathleen.Ryan@bis.doc.gov.
* SUPPLEMENTARY INFORMATION: …
   Prior to this rule, Sec. 760.5(b)(4) and (5) of the EAR required United States persons to prepare reports of boycott-related requests on form BIS 621-P (single transaction) or on form BIS 6051-P (multiple transactions), both available on-line through the Office of Antiboycott Compliance (OAC) page of the BIS Web site (OAC Web page) in a fillable PDF format, and to submit the reports in duplicate paper copy to OAC postmarked by the last day of the month following the calendar quarter in which the request was received (or, if received outside the United States, by the last day of the second month following the calendar quarter in which the request was received). …
   While United States persons may continue to submit paper reports by mail consistent with Sec. 760.5(b)(4)–(b)(7), this final rule amends the EAR to allow submission of reports electronically, with the same deadlines, through the OAC Web page.
   These revisions amend only the manner of reporting by offering an alternative method of submitting the report; in all other respects, the reporting requirements remain unchanged. Electronic filing offers the recipient of a boycott-related request a faster and less burdensome method to fulfill the regulatory reporting requirement than paper submission by mail. This action is consistent with the Administration’s ongoing efforts to modernize regulatory requirements. Information on both paper and electronic submissions is available through the OAC Web page here.
   United States persons who choose to submit reports electronically may access the electronic form via a link on the OAC Web page. Once all required fields are completed and the report has been submitted electronically, an electronic “Submission Confirmation” notification, confirming the date and time of receipt of the submission by OAC, will automatically be displayed on the reporting person’s screen. Additional guidance on accessing and completing electronic reports is available on the OAC Web page or by contacting OAC at 202.482.2448.
   In this rule, BIS amends Sec. 760.5 (Reporting Requirements) by revising paragraph (b) to provide United States persons with the option to submit reports of boycott-related requests electronically through the OAC Web page, as described above. Specifically, in this rule, BIS authorizes the electronic reporting option by amending paragraphs (b)(4), (b)(5), (b)(6) and (b)(7) of Sec. 760.5 of the EAR. …
   Dated: October 7, 2016.
Matthew S. Borman, Deputy Assistant Secretary for Export Administration.

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EXIM_a2

2. DHS/CBP Seeks Comments on Electronic Notice of Liquidation

(Source: Federal Register) [Excerpts.]
 
81 FR 71019-71025: Electronic Notice of Liquidation
* AGENCY: U.S. Customs and Border Protection; Department of the Treasury.
* ACTION: Notice of Proposed Rulemaking.
* SUMMARY: This document proposes to amend the U.S. Customs and Border Protection (CBP) regulations to reflect that official notice of liquidation, suspension of liquidation, and extension of liquidation will be posted electronically on the CBP Web site. This document also proposes regulatory revisions to reflect that official notice of liquidation will no longer be posted at the customhouses or stations and that official notices of suspension of liquidation and extension of liquidation will no longer be mailed. Additionally, this document proposes to make certain technical corrections to the CBP regulations.
* DATES: Comments must be received on or before November 14, 2016. …
* FOR FURTHER INFORMATION CONTACT: Virginia McPherson, ACE Business Office, Office of Trade, 571-468-5181, or virginia.h.mcpherson@cbp.dhs.gov. Randy Mitchell, Trade Policy and Programs, Office of Trade, 202-863-6532, or randy.mitchell@cbp.dhs.gov.
* SUPPLEMENTARY INFORMATION: …
   In this document, CBP is proposing to post official notice of liquidation for all entries, including entries filed in paper form, as well as official notices regarding the extension or suspension of liquidation, at www.cbp.gov. This proposed electronic posting will replace both the physical posting or lodging of bulletin notices in the customhouse as the legal evidence of liquidation and the mailed notices of extension or suspension as official notice. The information will be accessible via a conspicuous link on the www.cbp.gov Web site, labeled Bulletin Notices of Liquidation. Accordingly, upon the effective date of these regulations, CBP would no longer physically post bulletin notice of liquidation in the customhouse or station or mail notices of suspension or extension.
   The electronic bulletin notices will be searchable on the CBP Web site by using two or more of the following data elements:
  (1) Entry Number
  (2) Filer
  (3) Importer of Record Number
  (4) Port of Entry
  (5) Liquidation Date (with searchable date range)
  (6) Posted Date (date of posting of event with searchable date range)
  (7) Entry Date (with searchable date range)
  (8) Event Type (such as, Liquidated, Re-liquidated, Suspended,
Extended)
  (9) Basis (Reason for the liquidation, suspension or extension)
  (10) Action (CBP’s final determination of the duties, taxes, and fees due on the entry, i.e., No Change; Change Increase; Change Decrease)
   
For example, conducting a search by entering the port of entry and selecting a posted date would return results for all notices posted for that port for that date. However, searching with the fields specific to an interested party, such as entry number or importer of record number, will return more targeted results. When viewing the results of a search, importer of record numbers will not be displayed on the CBP Web site. CBP may add more search fields as additional capabilities are deployed.
   The liquidation information posted electronically will be updated daily. When liquidation notices are posted on www.cbp.gov, there will no longer be a need for importers or their representatives to go to the customhouse or station to obtain the official date of liquidation. Once it has been posted electronically, the information will be available on www.cbp.gov for a minimum of 15 months. Notices that are no longer available on the CBP Web site will be accessible by CBP personnel. Requests for notices that have been removed from the CBP Web site may be directed to the relevant port of entry.
   Electronic filers, using their ACE Portal Account, would be able to access historical liquidation information that is no longer available on the CBP Web site, run queries for information on recent liquidations, extensions, and suspensions, run targeted reports to conduct in-house audits, identify systemic errors, and provide insight into entries under review by CBP, all in support of improved compliance with trade laws. Obtaining an ACE Portal Account is free, and registration information is available go here. For more general information on ACE Portal Accounts, please go here.
   In addition to posting the official notice of liquidation on www.cbp.gov, CBP intends to continue sending electronic courtesy notices of liquidation, extension, and suspension via a CBP-authorized electronic data interchange system to the electronic filer when entries liquidate or are extended or suspended. However, paper courtesy notices of liquidation and paper notices of extension or suspension of liquidation will no longer be mailed. …
 
R. Gil Kerlikowske, Commissioner, U.S. Customs and Border Protection.
   Approved: October 11, 2016.
Timothy E. Skud, Deputy Assistant Secretary of the Treasury.

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OGSOTHER GOVERNMENT SOURCES

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

* Commerce; Bureau of Industry and Security; NOTICES; Agency Information Collection Activities; Proposals, Submissions, and Approvals:  Application for NATO International Competitive Bidding [Publication Date: 17 October 2016.]

* Commerce; Bureau of Industry and Security; RULES; License Exceptions; Revisions: Cuba [Publication Date: 17 October 2016.]

* Justice; Alcohol, Tobacco, Firearms, and Explosives Bureau; NOTICES; Agency Information Collection Activities; Proposals, Submissions, and Approvals: Certification on Agency Letterhead Authorizing Purchase of Firearm for Official Duties of Law Enforcement Officer [Publication Date: 17 October 2016.]

* Treasury; Foreign Assets Control Office; RULES; Cuban Assets Control Regulations [Publication Date: 17 October 2016.]

* U.S. Customs and Border Protection; NOTICES; Revocations of Customs Brokers’ Licenses [Publication Date: 17 October 2016.]

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OGS_a24
. Commerce/BIS: “New Rule Enables Direct Sales to the Cuban People”

 
On October 17, 2016, the Department of Commerce’s Bureau of Industry and Security (BIS) and the Department of the Treasury’s Office of Foreign Assets Control (OFAC) will take additional coordinated actions in support of the President’s Cuba policy.  These actions include a rule published by BIS that allows cargo aboard aircraft bound for destinations other than Cuba to transit Cuba under a license exception; authorizes exports and reexports of certain items sold directly to individuals in Cuba under a license exception; and revises the list of ineligible Cuban officials for the purposes of certain license exceptions. 
 
These actions further implement the President’s policy to chart a new course in bilateral relations with Cuba and to further engage and empower the Cuban people, announced on December 17, 2014.  The President explained that these steps build upon actions taken since 2009 that have been aimed at supporting the ability of the Cuban people to gain greater control over their own lives and determine their country’s future.  On January 16, 2015, BIS and OFAC published regulations to implement certain elements of this policy, including changes to licensing policy and license exceptions in the EAR that are consistent with U.S. support for the Cuban people (see 80 FR 2286 and 80 FR 2291).  Additionally, on July 22, 2015, BIS published a rule implementing the May 29, 2015, rescission of Cuba’s State Sponsor of Terrorism designation (see 80 FR 43314).  On September 21, 2015, January 27,2016, and March 16, 2016, BIS and OFAC published rules to further implement the President’s Cuba policy, which included additional amendments to license exceptions and licensing policy in the EAR (see 80 FR 56898, 80 FR 56915, 81 FR 4580, 81 FR 4583, 81 FR 13972, and 81 FR 13989).
 
Although these changes revise the licensing policy for certain types of exports, the United States continues to maintain a comprehensive embargo on trade with Cuba. The export and reexport to Cuba of all items subject to the EAR still requires a BIS license, unless authorized by a license exception specified in §746.2(a)(1) of the EAR or exempted from license requirements in §746.2(a)(2) of the EAR.
 
For additional information, please review the rule, the Department of Commerce and Department of the Treasury’s joint fact sheet, and BIS’s updated Frequently Asked Questions, For any specific questions regarding exports or reexports to Cuba, please contact the Foreign Policy Division at (202) 482-4252.

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

 
Today, I approved a Presidential Policy Directive that takes another major step forward in our efforts to normalize relations with Cuba. This Directive takes a comprehensive and whole-of-government approach to promote engagement with the Cuban government and people, and make our opening to Cuba irreversible.
 
In December 2014, following more than 50 years of failed policy, I announced that the United States would begin a process of normalizing relations with Cuba. Since then, we’ve worked with the people and the government of Cuba to do exactly that – re-establishing diplomatic relations, opening embassies, expanding travel and commerce, and launching initiatives to help our people cooperate and innovate. This new directive consolidates and builds upon the changes we’ve already made, promotes transparency by being clear about our policy and intentions, and encourages further engagement between our countries and our people.
 
Consistent with this approach, the Departments of Treasury and Commerce issued further regulatory changes today, building on the progress made over the last two years, to continue to facilitate more interaction between the Cuban and American people, including through travel and commercial opportunities, and more access to information. This follows previous changes that helped facilitate interconnectivity between our peoples, and to promote economic reforms on the island by providing access to the dollar in international transactions. These changes are representative of the progress I saw firsthand when I visited Havana to personally extend a hand of friendship to the Cuban people. The quick flight over 90 miles of blue water belied the real barriers of the past that were crossed that day, but my interactions with everyday Cubans told a promising story of neighbors working to build broader ties of cooperation across the Americas.
 
Challenges remain – and very real differences between our governments persist on issues of democracy and human rights – but I believe that engagement is the best way to address those differences and make progress on behalf of our interests and values. The progress of the last two years, bolstered by today’s action, should remind the world of what’s possible when we look to the future together.

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OGS_a57. Treasury/OFAC Amends Cuban Assets Control Regulations Effective 17 Oct 2016

(Source: Treasury/OFAC)
 
The Department of the Treasury’s Office of Foreign Assets Control (OFAC) is amending the Cuban Assets Control Regulations, 31 C.F.R. part 515 (the “CACR”), to further implement the new policy direction toward Cuba that the President announced in December 2014.  These changes are intended to further engage and empower the Cuban people and promote political, social, and economic reform in Cuba by easing sanctions related to, among others, scientific collaboration, humanitarian activities, trade and commerce, and travel.  The CACR amendment will be published in the Federal Register on Monday (October 17, 2016), at which time the changes will take effect.  OFAC is also publishing a number of new and updated Frequently Asked Questions, a Fact Sheet, and updated Travel Guidance pertaining to this regulatory amendment.

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OGS_a68. UK BIS: “Exporting Software and Technical Information”

 
When they think about exporting, many people believe it only refers to selling physical goods to people or companies in other countries. They often don’t realise that software and technical information may also be subject to export controls, even if no money changes hands.
 
In fact, even transferring knowledge within this country may be subject to export controls in certain circumstances. So you don’t have to move something physical to be an exporter. You don’t even need to leave your office!
 
What is an export anyway?
 
Here are some examples of transfers of software and technical information:
 
  (a) A global distributor sells encryption software for military satellites. This company buys the software from manufacturers and transfers it to resellers. The reseller has to log in to a server located in another country to download the software.
  (b) An SME’s day-to-day business requires collaboration by transferring software specially designed to modify end-user data and avoid detection by computer monitoring tools.
  (c) An SME has staff visiting from an overseas office. Designs for a new toxic gas monitoring system will be discussed at their business meeting.
  (d) An academic takes source code to a convention to share with a colleague. The source code was developed in conjunction with the military for national defence purposes.
 
Why it’s important
 
Just like physical goods, exports of software and technology are controlled for several reasons, including:
 
  – concerns over potential human rights violations
  – preventing development of weapons of mass destruction
  – foreign policy and international treaty commitments
  – national and collective security of the UK and its allies
  – regional security and conflict
 
The aim is not to prevent transfers of software or technical information for legitimate commercial, research or governmental applications but to help companies conduct business while addressing these concerns. This is why some software and technology may need a licence before it can be transferred abroad.
 
Can you help?
 
We are starting to work on a set of tools to make it easier for you to find out if you need a licence to export software or technical information. If you have experience in either of these areas, we would be grateful if you could complete a short survey where you can tell us about your needs and the challenges you face. You will also be able to leave your details if you would like to help us test our tools at a later date.
 
Alternatively, if you have any comments about this area or any suggestions for how we can improve the process, but don’t want to fill in the survey, please get in touch with us at userresearchforlite@digital.beis.gov.uk or respond in the comments section beneath this blog.

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NWSNEWS

NWS_a19
. Expeditors News: “CBP and Census Announce ACE AESDirect Enhancements”

 
On October 13, 2016 U.S. Customs and Border Protection (CBP) released Cargo Systems Messaging Service (CSMS) #16-000889 announcing that the AESDirect application will be updated to enhance functionality while integrating Partner Government Agency (PGA) requirements.
 
According to the CSMS, the enhancements will include:
 
  – Shipment Manager will show both the user who created or last took action on a filing
  – All Shipment Reference Number (SRN) activity will be listed in a History View on the Shipment Manager
  – Required PGA data can now be entered on the commodity line with improved functionality
 
The AESDirect enhancement will be put into place on approximately October 18, 2016.
 
The CSMS can be accessed here.
 
The Census Overview can be viewed here.

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NWS_a2
10. The Gazette: “Cedar Rapids Man Sentenced for Helping Smuggle Guns to Lebanon”

(Source: The Gazette)
 
A federal judge on Friday sentenced 23-year-old Adam Al Herz to 20 years for his part in smuggling more than 250 handguns and military style assault rifles from Cedar Rapids to Lebanon.

Assistant U.S. Attorney Richard Murphy said during the sentencing that Al Herz and his three family members were sending those guns into Hezbollah territory. Hezbollah is a known terrorist organization that has a “strong presence” in southern Lebanon. Two shipments of weapons were sent in 2014 and two more in 2015 were headed to the region, but those shipments were intercepted by authorities during the investigation, Murphy said.
 
Murphy said the Al Herz family knew those weapons could end up with Hezbollah because they’re from a village in southern Lebanon, and Adam Al Herz’s father, Ali Al Herz, still owns a house there.
 
Murphy admitted there was no evidence that any of the family members were involved in Hezbollah, but at the least, “it’s extremely reckless and dangerous conduct.” Hezbollah is an “enemy” of the U.S. and those weapons could be used against “our military and American citizens in the region.”
 
Adam Al Herz, originally charged with 20 counts, pleaded guilty in March to firearms conspiracy, conspiracy to commit money laundering and violation of the Arms Export Control Act, in that he did not have a license to export firearms.
 
Ali Al Herz, 50, his uncle Bassem Herz, 31, and Bassem’s wife Sarah Zeaiter, 24, all of Cedar Rapids, have been convicted in the gun conspiracy. The other three family members also pleaded guilty in March and are to be sentenced today.
 
Sentencing for Bassem Herz started on Thursday and was to continue today in U.S. District Court.
 
Plea agreements and criminal complaints show the four family members legally obtained weapons and ammunition from dealers in Eastern Iowa, purchasing an estimated 252 firearms over 17 months and illegally concealing them within Bobcat construction equipment in the shipping containers.
 
Authorities seized one shipment bound for Beirut in Norfolk, Virginia, in March 2015, according to the complaint. The shipment contained 53 firearms, parts, and more than 6,800 rounds of ammunition hidden in skid loaders. Many of the weapons had been placed in bags similar to the ones used at Pizza Daddy, which was owned by Ali Al Herz’s brother. The restaurant was raided in May.
 
Another intercepted container contained 99 guns, more than 9,500 rounds of ammunition and gun parts and accessories, records show.
 
The four family members were taken into custody in May 2015 after authorities The four family members were taken into custody in May 2015 after authorities raided Midamar Corp. to find firearms and ammunition concealed among bobcat skid loaders. There were also clothing drive items that Midamar was sending to Syria and Lebanon.
 
None of Midamar’s management or employees were charged in the conspiracy.
 
Murphy, in arguing for more prison time, said the family did it for greed because guns are worth 10 times as much there as in this country. Murphy admitted Adam Al Herz wasn’t the leader, but an agent testified earlier that he purchased at least 62 firearms as part of the conspiracy scheme, and he also put his name on shipping documents for the containers.
 
Before U.S. District Chief Judge Linda Reade pronounced sentencing, Adam Al Herz asked the court for a “second chance,” saying he regretted what he did. He apologized to his other uncle, Maitham Herz, who owned Pizza Daddy, and to his mother for the “stress” he caused her and his other family members.
“I’m embarrassed and ashamed,” Adam Al Herz said.
 
Reade said Adam Al Herz was a “major planner” of the offense and was responsible for purchasing a number of firearms and loading the containers that were being sent to a region controlled by Hezbollah. She also pointed out he knew he shouldn’t even have guns because he was a user of illegal drugs.
 
Reade also granted the order of forfeiture for all the firearms that prosecutors included in the case, plus a money judgment totaling $33,889 that is to be assessed equally to Adam Al Herz and other family members implicated in the scheme.

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NWS_a3
11. ST&R Trade Report: “Duty Modification Petitions May Now be Submitted; Due by Dec. 12”

 
The International Trade Commission has announced that it will accept petitions for import duty suspensions and reductions from Oct. 14 through Dec. 12. Petitions must be submitted electronically via the ITC’s designated secure web portal and may be filed by members of the public who can demonstrate that they are likely beneficiaries of such changes.
 
This is the first step in the revised miscellaneous trade bill process established by the American Manufacturing Competitiveness Act enacted earlier this year. Following its receipt of the petitions filed the ITC must publish them on its website and allow public comment on them. The ITC must subsequently submit to the House Ways and Means and Senate Finance committees preliminary and final reports that include (a) the ITC’s analysis of each petition, including whether there is domestic production of the article, whether the estimated loss in revenues due to the duty suspension or reduction exceeds $500,000, and whether the duty suspension or reduction will be available to any person importing the article, and (b) the ITC’s recommendations as to whether each petition should be included in or excluded from an MTB. Congress will then make the final decision regarding those petitions that will be included in the MTB.
 
Petitioners should be prepared to complete their entire petition when they enter the portal and will not be able to edit, amend, or complete the petition at a later time. Any changes required must be made by withdrawing the original petition and filing a new one, which must be done by Dec. 12.

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NWS_a4
12. ST&R Trade Report: “CBP to Discontinue Paper Notices of Liquidation Actions”

 
U.S. Customs and Border Protection is proposing to post official notice of liquidation, suspension of liquidation, and extension of liquidation for all entries, including those filed in paper form, on its website. These electronic postings would replace both the physical posting or lodging of bulletin notices at U.S. port of entry customhouses and stations as the legal evidence of liquidation as well as the mailed notices of extension or suspension as official notice. CBP states that among the benefits of this change are more timely notice and additional protest time.
 
CBP is proposing to make these official notices accessible via a conspicuous link on its website labeled “Bulletin Notices of Liquidation.” Notices would be updated daily and remain available for a minimum of 15 months. They would searchable by using two or more of the following data elements: entry number, filer, importer of record number, port of entry, liquidation date, posted date, entry date, event type, basis, and action.
 
CBP adds that electronic filers using their ACE portal accounts would be able to access historical liquidation information no longer available on the CBP website; run queries for information on recent liquidations, extensions, and suspensions; run targeted reports to conduct in-house audits; identify systemic errors; and provide insight into entries under review by CBP. (Click here for information on an upcoming ST&R webinar on the benefits of ACE portal accounts.)
 
CBP intends to continue sending electronic courtesy notices of liquidation, extension, and suspension when appropriate. In addition, for other informal, mail, and baggage entries, CBP would continue to furnish official notices of liquidation and reliquidation by a suitable printed statement appearing on the receipt issued for duties collected, by release of the goods under a free entry, or by acceptance of the free entry after release under a special permit for immediate delivery.
 
Finally, CBP is proposing to make various technical corrections to its regulations, including the following.
 
  – 19 CFR 159.11(a) and 159.12(f) would be amended to reflect that entries are deemed liquidated based on the rate of duty, value, quantity, and amount of duties asserted by the importer of record regardless of when asserted (rather than at the time of entry, as currently stated).
 
  – 19 CFR 159.12(f)(2) would be removed because CBP is no longer required, when liquidation continues to be suspended beyond four years due to a statute or court order, to liquidate the entry within 90 days from when the suspension is removed.

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NWS_a5
13. ST&R Trade Report: “Dates and Deadlines: Classification, Supply Chains, Apparel, AD/CV Evasion”

 
Following are highlights of regulatory effective dates and deadlines and federal agency meetings coming up in the next week.
 
  – Oct 17: deadline for comments to FTZ Board on expansion of FTZ 283 in Tennessee
  – Oct 17: deadline for comments to BIS on information collection regarding foreign availability procedures
  – Oct 17: deadline for comments to DEA on proposal to update import/export rules for controlled substances and listed chemicals
  – Oct 18: deadline for comments on FTZ production authority for vessel manufacturing facility
  – Oct 21: deadline for comments to CBP on procedures for investigating AD/CV duty order evasion
  – Oct 21: deadline for comments to DEA on extension of application for permit to import controlled substances
  – Oct 21: deadline for comments to CBP on proposed revocation and modification of classification and other rulings

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NWS_a6
14. wsoctv.com: “Charlotte Gun Smuggler Sentenced to Three Years”

(Source: wsoctv.com)
 
A federal judge sentenced a Charlotte man to more than three years in prison Thursday for smuggling guns and ammunition into West Africa.
 
Richmond Attah, 34, was charged in February with one count of violating the Arms Export Control Act, one count of illegal firearms dealing, two counts of smuggling goods from the U.S. and four counts of making false statements to a firearms dealer, according to federal authorities.
 
Attah apologized to the court and prosecutors for his actions during his sentencing. He does not have a criminal history and asked for a second chance.
 
  “I strongly believe the United States also believes in second chances,” Attah said.
 
His father, Sampson Attah, dressed in his CATS work uniform wiped away tears as he pleaded for a lighter sentence.
 
  “He has been a good boy and a very respectful boy,” he said. “I’ll make sure he’ll never ever involve himself in this criminal activity again.”
 
Prosecutor Kevin Zolot acknowledged Attah’s lack of criminal history, but stressed the seriousness of Attah’s actions.
 
  “He knew what he was doing, he knew it was wrong,” Zolot said.
 
He said the government still does not know whose hands the guns ultimately end up in.
 
U.S. District Judge Max Cogburn said Attah was facing between 46 and 57 months. However, prosecutors and Attah’s defense attorney mentioned a sealed motion in court that resulted in a downward variance. Cogburn ultimately reached a sentence of 37 months.
 
Cogburn said Attah was lucky to become a U.S. citizen before the crimes or he could have been “shipped” off.
 
  “We have won the lottery,” Cogburn said referring to freedoms as an American. “Everybody seems to want to come here because you are able to live your life freely.”
 
Officials said between September 2013 and December 2015 Attah purchased approximately 63 firearms and 3,500 rounds of ammunition from various stores, Internet vendors and at gun shows. The indictment then states on Sept. 4, 2015, Attah traveled from Charlotte to Ghana.
 
Attah hid $30,100 in his luggage during his return trip, falsely declaring on customs paperwork that he was bringing $350 back into the U.S., according to the charges.
 
The indictment alleges Attah purchased 22 more firearms and ammunition from dealers between November 2015 and December 2015 in North Carolina.
 
The indictment said Attah lied on his application and said the guns were for him when he purchased several of the weapons from Mount Holly Gun and Pawn.

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COMMCOMMENTARY

COMM_a1
15. G.R. Tuttle III: “Census Announces ACE AESDirect Enhancements”


* Author: George R. Tuttle III, Esq., Law Offices of George R. Tuttle, george.tuttle.iii@tuttlelaw.com, 415-986-8780.
 
U.S. Customs and Border Protection (CBP) will be updating the ACE AESDirect application with new enhancements, including the ability to add
Licenses and Permits from Partnership Government Agencies
(PGA’s) to the electronic filing. The new enhancements will be effective around October 18, 2016. Full details are listed in the
ACE AESDirect Enhancements Overview – October 2016
, which highlights these changes in detail.
 
The new changes and enhancements include:
 
  (1) The Shipment Manager will now show the user who created or last took action on each filing, not just the original user who created the filing.
  (2) All the activity for a specific Shipment Reference Number (SRN) will be shown through a new History View (Count) feature on the Shipment Manager.
  (3) The design and functionality of the commodity line will be enhanced with the ability to enter required PGA data.
 
For further questions, contact the U.S. Census Bureau’s Data Collection Branch:
 
  – Telephone: (800) 549-0595, select option 1 for AES
  – Email:
askaes@census.gov

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

TrainingEX/IM TRAINING EVENTS & CONFERENCES

TE_a216
. 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:

* 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

Informed Compliance Letter from U.S. Customs
;” Deleon Trade LLC, Tuttle Law Offices, and the Braumiller Law Group
* Oct 18: Wichita KS; “
Automated Commercial Environment (ACE) Portal Training
;” U.S. Commercial Service, Mid-America District Export Council, Kansas Global Trade Services, and Kansas Department of Commerce;
schletzbaum@kansasglobal.org

* Oct 19: London; “Control List Classification – Dual Use;” UK/BIS Export Control Organisation; denise.carter@bis.gsi.gov.uk 

* Oct 19: Olathe KS; “
Automated Commercial Environment (ACE) Portal Training
;” U.S. Commercial Service, Mid-America District Export Council, Kansas Global Trade Services, and Kansas Department of Commerce;
schletzbaum@kansasglobal.org 

* 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; Baker McKenzie; claudia.wehmeijer@bakermckenzie.com; + 31 20 551 7481

* 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 13-15: Miami FL; “
Conference of the Americas
;” Florida Customs Brokers & Freight Forwarders; 
info@fcbfconference.com
; 305-499-9490

* 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; A Year-End Review of Import/Export Developments; Baker McKenzie; Brendan.Gilmartin@bakermckenzie.com; 415-591-3246

* 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 16: Webinar; “
Classification: Advanced Classification, Part 1;”
Sandler, Travis & Rosenberg, P.A.;
webinarorganizers@strtrade.com

* 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 1-2: Arlington VA; “
2016 East Coast Trade Symposium
;” Dept. of Homeland Security/U.S. Customs and Border Protection

* 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 14: Webinar; “
Classification: Advanced Classification, Part 2;”
Sandler, Travis & Rosenberg, P.A.;
webinarorganizers@strtrade.com

* 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_a117. Bartlett’s Unfamiliar Quotations

(Source: Editor)
 
Notable birthdays:
 
* Friedrich Nietzsche (Friedrich Wilhelm Nietzsche, 15 Oct 1844 – 25 Aug 1900, was a German philosopher, cultural critic, poet, philologist, Latin, and Greek scholar whose work has exerted a profound influence on Western philosophy and modern intellectual history.)

  – “There are no facts, only interpretations.”

 

* William Penn (14 Oct 1644 – 30 July 1718, was an English real estate entrepreneur, philosopher, early Quaker, and founder of the Province of Pennsylvania.)

  – “Time is what we want most, but what we use worst.”

 

Friday funnies:

 

Three drunks get on a train at Paddington Station, London and fall asleep. When the train stops, they wake with a start. The first drunk says, “Is this Wembley?”  The second says, “No, it’s Thursday,” and the third drunk says, “So am I, let’s get off and have a drink.”

  – Eddie Shirkie, Hove, British Columbia

This 
week’s Blonde Joke (submitted by a blonde):
Q. How long does it take for a brunette to wash her hair? 
A. It doesn’t matter – she’ll have all Saturday night to do it. 

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

EN_a218. 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:
30 Sep 2016: 81 FR 67140-67144: Notice of Arrival for Importations of Pesticides and Pesticidal Devices

* 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: 14 Oct 2016: 81 FR 70933-70935: Amendments to the Export Administration Regulations: Reporting Requirements Optional Electronic Filing of Reports of Requests for Restrictive Trade Practice or Boycott.

  
*
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. 
 
*
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
  – Latest Amendment: 12 Oct 2016: 81 FR 70340-70357: Amendment to the International Traffic in Arms Regulations: Revision of U.S. Munitions List Category XII and associated sections.
  – The only available fully updated copy (latest edition 12 Oct 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 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 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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