16-1101 Tuesday “The Daily Bugle”

16-1101 Tuesday “Daily Bugle”

Tuesday, 1 November 2016

TOPThe Daily Bugle is a free daily newsletter from Full Circle Compliance, containing changes to export/import regulations (ATF, Customs, NISPOM, EAR, FACR/OFAC, FTR/AES, HTSUS, and ITAR), plus news and events. Subscribe 
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[No items of interest noted today.] 

  1. Ex/Im Items Scheduled for Publication in Future Federal Register Editions
  2. Commerce/BIS: (No new postings.) 
  3. State/DDTC: (No new postings.) 
  1. The Gazette: “Leader in Lebanon Gun Smuggling Gets 27 Years in Federal Prison”
  1. Bartlett’s Unfamiliar Quotations 
  2. Are Your Copies of Regulations Up to Date? Latest Changes: ATF (15 Jan 2016), Customs (28 Oct 2016), DOD/NISPOM (18 May 2016), EAR (17 Oct 2016), FACR/OFAC (17 Oct 2016), FTR (15 May 2015), HTSUS (30 Aug 2016), ITAR (12 Oct 2016) 



[No items of interest noted today.] 

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OGS_a11. Ex/Im Items Scheduled for Publication in Future Federal Register Editions
(Source: Federal Register)

* Justice; NOTICES; Agency Information Collection Activities; Proposals, Submissions, and Approvals: Application for Permit to Import Controlled Substances for Domestic and/or Scientific Purposes [Publication Date: 2 November 2016.]

* President; ADMINISTRATIVE ORDERS; Sudan; Continuation of National Emergency (Notice of October 31, 2016) [Publication Date: 2 November 2016.]

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OGS_a22. Commerce/BIS: (No new postings.)

(Source: Commerce/BIS)
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OGS_a33. State/DDTC: (No new postings.)

(Source: State/DDTC)
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Ali Al Herz admitted to a federal judge Monday that smuggling guns to Lebanon was wrong and against the law, but he thought he was doing “right” to sell guns to people threatened by “terrorists … and ISIS.”
He thought he was being a “good Samaritan or Robin Hood.”
Al Herz, 51, of Cedar Rapids, identified as a leader of the gun conspiracy, claimed he didn’t keep the money from the gun sales. Instead, he said, he improved roads in Lebanon and did other things to help people.
U.S. District Chief Judge Linda Reade sentenced Al Herz to 27 years in prison, which is three years less than the low end of the sentencing guidelines. He also must serve three years of supervised release after prison and pay a $150,000 fine.
Al Herz pleaded guilty in March to being a prohibited person in possession of firearms, firearms conspiracy, conspiracy to commit money laundering and violation of the Arms Export Control Act, meaning he didn’t have a license to export firearms. His sentencing started earlier in October but had to be continued because it was a lengthy hearing.
Three Al Herz family members also have been convicted for their roles in smuggling weapons in 2014 and 2015.
His son, Adam Al Herz, 23, was sentenced to 20 years in prison. His brother, Bassem Herz, 31, will be sentenced Nov. 7. And Bassem Herz’s wife, Sarah Zeaiter, 24, has been sentenced to seven years.
The four family members legally obtained weapons and ammunition from dealers in Eastern Iowa, buying an estimated 252 firearms in 17 months, according to previous hearings and criminal complaints. They concealed them within Bobcat construction equipment in shipping containers.
During sentencing, Reade found Al Herz was a leader and organizer of the criminal activity. She also said he made false statements every time he bought a gun and on his permit to carry form because he denied being convicted of domestic violence and about being a marijuana user.
Al Herz also failed to report any income made from selling the firearms, Reade added.
Assistant U.S. Attorney Richard Murphy argued for prison time above the minimum guideline based on the number and types of firearms involved.
Special Agent Timothy Hunt with the Bureau of Alcohol, Tobacco, Firearms and Explosives testified at the previous hearing that Al Herz bought 21 of the 32 military-style assault rifles in the May 2015 shipments. Some of the guns resemble AR-15 rifles. Al Herz also asked one of the dealers if he could get a fully automatic firearm, which are not legal unless someone has a special, rare license, Hunt noted.
Special Agent Christopher Cantrell of the Department of Homeland Security, also testifying at the previous hearing, said Al Herz was responsible for negotiating the sale of the firearms in Lebanon. He wanted to sell them to his cousin, a customs dealer in the region, but Bassem Herz wanted to sell the guns to arms dealers with connections to Hezbollah because they could make more money. The family had a falling out over the issue and split up their transactions at one point.
Murphy, in arguing for more prison time, called Al Herz’s comments – about him being a Robin Hood trying to protect people – “preposterous.” The guns were sold in Lebanon because that’s where the family would make the most profit, he said.
Al Herz contested paying a fine, saying he didn’t have the money. But prosecutors submitted real estate records, showing Al Herz owns property in south Lebanon worth $5.8 million.
Ann Laverty, Al Herz’s lawyer, argued the property was owned by someone else and that he had sold some of the lots for less than appraised value. Laverty also said the records were in Arabic and hadn’t been verified.

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(Source: Editor)

* Aishwarya Rai Bachchan (
born 1 Nov 1973, is an Indian actress, model and the winne
r of the 
Miss World 1994
  – “Just take on what you can commit to completely at that point in time, and that way you’ll be able to give your best.”

* Larry Flynt (Larry Claxton Flynt, Jr., born 1 Nov 1942, is an American publisher and the president of Larry Flynt Publications.)

  – “There’s nothing that will change someone’s moral outlook quicker than cash in large sums.”

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6. 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.
: 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  
: 19 CFR, Ch. 1, Pts. 0-199
  – Last Amendment: 28 Oct 2016: 81 FR 74918: New Mailing Address for the National Commodity Specialist Division, Regulations and Rulings, Office of Trade; Technical Correction 

  – 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.)

  – Last Amendment: 17 Oct 2016: 81 FR 71365-71367: Cuba: Revisions to License Exceptions 

: 31 CFR, Parts 500-599, Embargoes, Sanctions, Executive Orders
  – Last Amendment: 17 Oct 2016: 81 FR 71372-71378: Cuban Assets Control Regulations  
: 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
  – The latest edition (9 May 2016) of Bartlett’s Annotated FTR (“BAFTR”), by James E. Bartlett III, is available for downloading in Word format. The BAFTR contains all FTR amendments, FTR Letters and Notices, a large Index, and footnotes containing case annotations, practice tips, and Census/AES guidance.  Subscribers receive revised copies every time the FTR is amended.  The BAFTR is available by annual subscription from the Full Circle Compliance website.  BITAR subscribers are entitled to a 25% discount on subscriptions to the BAFTR, please contact us to receive your discount code. 
, 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
  – HTS codes that are not valid for AES are available

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:
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 the essential tool of the ITAR professional. The BITAR is available by annual subscription from the Full Circle Compliance
website.  BAFTR subscribers receive a 25% discount on subscriptions to the BITAR — please
contact us to receive your discount code.  

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

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

* CAVEAT: The contents cannot be relied upon as legal or expert advice.  Consult your own legal counsel or compliance specialists before taking actions based upon news items or opinions from this or other unofficial sources.  If any U.S. federal tax issue is discussed in this communication, it was not intended or written by the author or sender for tax or legal advice, and cannot be used for the purpose of avoiding penalties under the Internal Revenue Code or promoting, marketing, or recommending to another party any transaction or tax-related matter.

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