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16-1104 Friday “The Daily Bugle”

16-1104 Friday “Daily Bugle”

Friday, 4 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 here for free subscription. Contact us for advertising inquiries and rates.

  1. Commerce/BIS Amends EAR, Updates Arms Embargoes on Cote d’Ivoire, Liberia, Sri Lanka and Vietnam, and Recognizes India as MTCR Member 
  2. DoD/DARS Amends DFARS, Pilot Program on Acquisition of Military Purpose Nondevelopmental Items 
  3. DoD/DARS Seeks Comments on Offset Costs 
  4. Justice/ATF Seeks Comments on Form ATF F 9 (5320.9), Application and Permit for Permanent Exportation of Firearms 
  5. Treasury/OFAC Terminates Former Liberian Regime of Charles Taylor Sanctions Regulations 
  6. State/DDTC Seeks Comments on Form DS-7789: Statement of Material Change, Merger, Acquisition, or Divestment of a Registered Party 
  1. Ex/Im Items Scheduled for Publication in Future Federal Register Editions 
  2. Commerce/BIS: (No new postings.) 
  3. State/DDTC Opens Registration for In-House Seminar, 14 Dec 
  4. State/DDTC Posts Notice Regarding Leadership Changes 
  1. Reuters: “Foreign Help Building Eritrea Bases Violates Embargo: U.N. Experts”
  2. ST&R Trade Report: “Dates and Deadlines: Valuation, Customs Regulations, Hazmat, FTZ”
  3. ST&R Trade Report: “Updated Global Trade and Tariff Statistics Tools Available from WTO”
  4. WZZM13: “Gun Shipments to Lebanon Brings Prison for Former Grand Rapids Businessman”
  1. W.H. Maruyama: “The Next President Will Have Broad Authority to Terminate Free Trade Agreements and Impose Punitive Duties on Foreign Countries” 
  2. R.C. Burns: “Sometimes Once Doesn’t Mean Once” 
  1. Friday List of Approaching Events 
  1. Thao Huynh Moves to Raytheon 
  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 (4 Nov 2016), FACR/OFAC (4 Nov 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, Update of Arms Embargoes on Cote d’Ivoire, Liberia, Sri Lanka and Vietnam, and Recognition of India as MTCR Member
(Source: Federal Register) [Excerpts.]
 
81 FR 76859-76861: Amendments to the Export Administration Regulations: Update of Arms Embargoes on Cote d’Ivoire, Liberia, Sri Lanka and Vietnam, and Recognition of India as Member of the Missile Technology Control Regime
* 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 implement changes in controls on arms and related materiel to Cote d’Ivoire, Liberia, Sri Lanka, and Vietnam. BIS also updates the EAR to recognize the accession of India as a member of the Missile Technology Control Regime (MTCR).
* DATES: This rule is effective November 4, 2016.
* FOR FURTHER INFORMATION CONTACT: Elan Mitchell-Gee, telephone (202) 482-4252, email elan.mitchell-gee@bis.doc.gov.
* SUPPLEMENTARY INFORMATION: …
   In this rule, BIS amends the Export Administration Regulations (EAR) to implement certain United Nations Security Council Resolutions (UNSCRs) adopted in 2016 that terminated arms embargoes against Cote d’Ivoire (UNSCR 2283) and Liberia (UNSCR 2288). Further, BIS removes U.S. arms embargo-related controls on Sri Lanka to reflect the Consolidated Appropriations Act, 2016, and on Vietnam pursuant to a determination made by the Secretary of State and announced by the President. …
   Countries listed in Country Group D:5 are subject to additional restrictions in the EAR, including on de minimis U.S. content, license exception availability, and licensing policy for certain items. For example, license applications for the export or reexport of items classified under 9×515 or “600 series” Export Control Classification Numbers (ECCNs) to countries in Country Group D:5 are reviewed consistent with the policies in Sec. 126.1 of the ITAR, as provided in paragraph (b)(ii) of Sec. 742.4 of the EAR. Additionally, license applications for items controlled on the CCL for United Nations Embargo reasons and destined to countries specified in Sec. 746.1(b) of the EAR are not approved by BIS if the authorization would be contrary to the relevant UNSCR, to the extent consistent with United States national security and foreign policy interests. As a result of this rule, the relevant additional restrictions described above no longer apply to Cote d’Ivoire, Liberia, Sri Lanka, and Vietnam.
   Finally, on June 27, 2016, India acceded to the Missile Technology Control Regime (MTCR) as the 35th member. In this rule, BIS updates the EAR to recognize the status of India as a member of the Missile Technology Control Regime by amending paragraph (d) of Sec. 742.5 to remove the reference to India as an adherent to the MTCR. This rule includes a conforming amendment. …
 
   Dated: October 28, 2016.
Kevin J. Wolf, Assistant Secretary for Export Administration.

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2. DoD/DARS Amends DFARS, Pilot Program on Acquisition of Military Purpose Nondevelopmental Items
(Source: Federal Register) [Excerpts.]
 
81 FR 78012-78013: Defense Federal Acquisition Regulation Supplement: Pilot Program on Acquisition of Military Purpose Nondevelopmental Items (DFARS Case 2016-D014)
* AGENCY: Defense Acquisition Regulations System, Department of Defense (DoD).
* ACTION: Final rule.
* SUMMARY: DoD is adopting as final, with changes, an interim rule amending the Defense Federal Acquisition Regulation Supplement (DFARS) to implement a section of the National Defense Authorization Act for Fiscal Year 2016 that changes the criteria for the pilot program for acquisition of military purpose nondevelopmental items.
* DATES: Effective November 4, 2016.
* FOR FURTHER INFORMATION CONTACT: Ms. Carrie Moore, telephone 571-372-6093.
* SUPPLEMENTARY INFORMATION: …
   One change is made in the final rule as a result of a public comment. The prescription at DFARS 212.7103 for DFARS provision 252.212-7002, Pilot Program for Acquisition of Military-Purpose Nondevelopmental Items, is revised to clarify its use in solicitations when use of the pilot program is planned and the applicability criteria are met. …
 
Jennifer L. Hawes, Editor, Defense Acquisition Regulations System. …

 
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EXIM_a3

3. DoD/DARS Seeks Comments on Offset Costs
(Source: Federal Register) [Excerpts.]
 
81 FR 78015-78019: Defense Federal Acquisition Regulation Supplement: Offset Costs (DFARS Case 2015-D028)
* AGENCY: Defense Acquisition Regulations System, Department of Defense (DoD).
* ACTION: Proposed rule.
* SUMMARY: DoD is issuing a proposed rule amending the Defense Federal Acquisition Regulation Supplement (DFARS) to implement a section of the National Defense Authorization Act for Fiscal Year 2016 related to costs associated with indirect offsets under foreign military sales agreements.
* DATES: Comments on the proposed rule should be submitted in writing to the address shown below on or before January 3, 2017, to be considered in the formation of a final rule.
* ADDRESSES: Submit comments identified by DFARS Case 2015-D028, using any of the following methods: …
* FOR FURTHER INFORMATION CONTACT: Mr. Mark Gomersall, telephone 571-372-6099.
* SUPPLEMENTARY INFORMATION: …
   DoD published an interim rule in the Federal Register (80 FR 31309) on June 2, 2015. The comment period closed on August 3, 2015. The interim rule revised DFARS 225.7303-2, Cost of Doing Business with a Foreign Government or an International Organization, by providing guidelines to contracting officers when an indirect offset is a condition of a foreign military sales (FMS) acquisition. Specifically, the interim rule set forth that all offset costs that involve benefits provided by the U.S. defense contractor to the FMS customer that are unrelated to the item being purchased under the Letter of Offer and Acceptance (LOA) (indirect offset costs) are deemed reasonable for purposes of FAR part 31 with no further analysis necessary on the part of the contracting officer, provided that the U.S. defense contractor submits to the contracting officer a signed offset agreement or other documentation showing that the FMS customer has made the provision of an indirect offset of a certain dollar value a condition of the FMS acquisition. FMS customers are placed on notice through the LOA that indirect offset costs are deemed reasonable without any further analysis by the contracting officer. …
 
Summary of Significant Changes
 
Section 812 of the NDAA for FY 2016 amended 10 U.S.C. 2306a(b)(1) to state that submission of certified cost or pricing data shall not be required in the case of a contract, a subcontract, or modification of a contract or subcontract to the extent such data–
  (i) Relates to an offset agreement in connection with a contract for the sale of a weapon system or defense-related item to a foreign country or foreign firm; and
  (ii) Does not relate to a contract or subcontract under the offset agreement for work performed in such foreign country or by such foreign firm that is directly related to the weapon system or defense-related item being purchased under the contract.
  This proposed rule amends DFARS 215.403-1(b), Exceptions to Certified Cost or Pricing Data Requirements, and adds DFARS clause 252.215-70XX, Requirements for Certified Cost or Pricing Data for Foreign Military Sales Indirect Offset Agreements, to incorporate the revisions implemented in section 812.
  Additionally, this proposed rule relocates the language at DFARS Procedures, Guidance, and Information (PGI) 225.7303-2(a)(3) into DFARS 225.7303-2(a)(3) for clarity. In response to public comments, the rule also adds: (1) Definitions of “offset” and “offset costs” at 202.101, and (2) the appropriate reference to Federal Acquisition Regulation (FAR) part 15 and deletes the phrase “of a certain dollar value” in DFARS 225.7303-2(a)(3). …
 
Jennifer L. Hawes, Editor, Defense Acquisition Regulations System. …

 
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EXIM_a4

4. Justice/ATF Seeks Comments on Form ATF F 9 (5320.9), Application and Permit for Permanent Exportation of Firearms
(Source: Federal Register) [Excerpts.]
 
81 FR 76963-76964: Agency Information Collection Activities; Proposed eCollection eComments Requested; Application and Permit for Permanent Exportation of Firearms (National Firearms Act) ATF F 9 (5320.9)
* AGENCY: Bureau of Alcohol, Tobacco, Firearms and Explosives, Department of Justice.
* ACTION: 30-Day notice. …
* DATES: Comments are encouraged and will be accepted for an additional 30 days until December 5, 2016.
* FOR FURTHER INFORMATION CONTACT: Kenneth Mason, Firearms and Explosives Services Specialist, National Firearms Act Branch, either by mail at 244 Needy Road, Martinsburg, WV 25405, or by email at nfaombcomments@atf.gov. Written comments and/or suggestions can also be directed to the Office of Management and Budget, Office of Information and Regulatory Affairs, Attention Department of Justice Desk Officer, Washington, DC 20503 or sent to OIRA_submissions@omb.eop.gov.
* SUPPLEMENTARY INFORMATION: …
  – The Title of the Form/Collection: Application and Permit for Permanent Exportation of Firearms (National Firearms Act).
  – Form number: ATF F 9 (5320.9).
  – Component: Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Department of Justice.
  – Abstract: ATF Form 9 (5320.9) is typically used by a Federal firearms licensee who has paid the special (occupational) tax to deal, manufacture or import NFA firearms. The form must be filed (in quadruplicate) for approval to permanently export NFA firearms registered in the National Firearms Registration and Transfer Record. Once authorization has been granted, one copy is retained by ATF and the remaining copies returned to the exporter to establish that the exportation took place and claim relief from liability for the transfer tax. …
 
   Dated: November 1, 2016.
Jerri Murray, Department Clearance Officer for PRA, U.S. Department of Justice.

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EXIM_a5

5. Treasury/OFAC Terminates Former Liberian Regime of Charles Taylor Sanctions Regulations

(Source: Federal Register) [Excerpts.]
 
81 FR 76861-76863: Amendments to OFAC Regulations To Remove the Former Liberian Regime of Charles Taylor Sanctions Regulations and References to Fax-on-Demand Service
* AGENCY: Office of Foreign Assets Control, Treasury
* ACTION: Final rule.
* SUMMARY: The Department of the Treasury’s Office of Foreign Assets Control (OFAC) is removing from the Code of Federal Regulations the Former Liberian Regime of Charles Taylor Sanctions Regulations as a result of the termination of the national emergency on which the regulations were based. OFAC also is amending the Reporting, Procedures and Penalties Regulations and Appendix A to chapter V by making technical changes including to remove references to OFAC’s fax-on-demand service in order to reflect the discontinuation of that service.
* DATES: Effective: November 4, 2016.
* FOR FURTHER INFORMATION CONTACT: The Department of the Treasury’s Office of Foreign Assets Control: Assistant Director for Licensing, tel.: 202-622-2480, Assistant Director for Regulatory Affairs, tel.: 202-622-4855, Assistant Director for Sanctions Compliance & Evaluation, tel.: 202-622-2490, or the Department of the Treasury’s Office of the Chief Counsel (Foreign Assets Control), Office of the General Counsel, tel.: 202-622-2410.
* SUPPLEMENTARY INFORMATION: …
   On November 12, 2015, the President issued Executive Order 13710, “Termination of Emergency With Respect to the Actions and Policies of Former Liberian President Charles Taylor” (E.O. 13710). In E.O. 13710, the President found that the situation that gave rise to the declaration of a national emergency in E.O. 13348 had been significantly altered by Liberia’s significant advances to promote democracy and the orderly development of its political, administrative, and economic institutions, including presidential elections in 2005 and 2011, which were internationally recognized as freely held; the 2012 conviction of, and 50-year prison sentence for, former Liberian President Charles Taylor and the affirmation on appeal of that conviction and sentence; and the diminished ability of those connected to former Liberian President Charles Taylor to undermine Liberia’s progress. As a result, he terminated the national emergency declared in E.O. 13348 and revoked that order.
   Accordingly, OFAC is removing the Former Liberian Regime of Charles Taylor Sanctions Regulations from the Code of Federal Regulations. Pursuant to section 202 of the National Emergencies Act (50 U.S.C. 1622) and section 1 of E.O. 13710, termination of the national emergency declared in E.O. 13348 shall not affect any action taken or proceeding pending that was not fully concluded or determined as of 2:00 p.m. eastern standard time on November 12, 2015 (the effective date of E.O. 13710), any action or proceeding based on any act committed prior to the effective date, or any rights or duties that matured or penalties that were incurred prior to the effective date. …
 
John E. Smith, Acting Director, Office of Foreign Assets Control.

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EXIM_a6

6. State/DDTC Seeks Comments on Form DS-7789: Statement of Material Change, Merger, Acquisition, or Divestment of a Registered Party
(Source: Federal Register) [Excerpts.]
 
81 FR 76992-76994: 30-Day Notice of Proposed Information Collection: Statement of Material Change, Merger, Acquisition, or Divestment of a Registered Party
* ACTION: Notice of request for public comment.
* SUMMARY: The Department of State is seeking Office of Management and Budget (OMB) approval for the information collection described below. In accordance with the Paperwork Reduction Act of 1995, we are requesting comments on this collection from all interested individuals and organizations. The purpose of this notice is to allow 30 days for public comment preceding submission of the collection to OMB.
* DATES: The Department will accept comments from the public up to December 5, 2016.
* ADDRESSES: Direct comments to the Department of State Desk Officer in the Office of Information and Regulatory Affairs (OIRA) at the Office of Management and Budget (OMB). You may submit comments by the following methods: …
* FOR FURTHER INFORMATION CONTACT: Steve Derscheid–Management Analyst, who may be reached at DerscheidSA@state.gov.
* SUPPLEMENTARY INFORMATION:
  – Title of Information Collection: Statement of Material Change, Merger, Acquisition, or Divestiture of a Registered Party.
  – OMB Control Number: 1405-XXXX. …
  – Originating Office: Directorate of Defense Trade Controls,
Bureau of Political Military Affairs, Department of State (T/PM/DDTC).
  – Form Number: DS-7789.
  – Abstract of Proposed Collection: The International Traffic in Arms Regulations (ITAR) Sec. Sec. 122.4 and 129.8 require registrants to notify the Directorate of Defense Trade Controls of the Department of State in the event of a change in registration information, in the event a foreign person or entity acquires a registered entity, or if the registrant is a party to a merger, acquisition, or divestiture (MAD) of an entity producing or marketing ITAR-controlled items. Based on certain conditions enunciated in the ITAR, respondents must notify DDTC of these changes at differing intervals–no less than 60 days prior to the event and/or within 5 days of its culmination. This information is necessary for DDTC to ensure registration records are accurate and to determine whether the transaction is in compliance with the regulations (e.g. with respect to ITAR Sec. 126.1); assess the steps that need to be taken with respect to existing authorizations (e.g. transfers of licenses); and to …
 
   Dated: October 26, 2016.
Lisa Aguirre, Managing Director, Directorate of Defense Trade Controls, Department of State.

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OGSOTHER GOVERNMENT SOURCES

OGS_a17. Ex/Im Items Scheduled for Publication in Future Federal Register Editions
(Source: Federal Register)

* Commerce; Industry and Security Bureau; NOTICES; Agency Information Collection Activities; Proposals, Submissions, and Approvals: Voluntary Self-Disclosure of Antiboycott Violations [Publication Date: 7 November 2016.]

* President; ADMINISTRATIVE ORDERS; Iran; Continuation of National Emergency (Notice of November 3, 2016) [Publication Date: 7 November 2016.]

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Registration for The Directorate of Defense Trade Controls (DDTC) In-House Seminar for December 14th, 2016 opens November 4th and closes November 18th. Attendees will be identified on a first-come, first-serve basis. All Attendees must be currently registered with DDTC. Preference will be given to new registrants and small-businesses. Participation will be limited to 30 attendees. A completed registration form must be sent to the DDTC In-House Seminar email, as an attachment, DDTCInHouseSeminars@state.gov.

 

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Effective Monday, November 7, 2016, Tony Dearth, Director of the Office of Defense Trade Controls Licensing, will become Acting Managing Director for Defense Trade Controls. The current Managing Director, Lisa Aguirre, has accepted a new position at the Department of Health and Human Services. A permanent successor has not yet been determined. During this time, Terry Davis will be the Acting Director of the Office of Defense Trade Controls Licensing.
 
As a reminder, the following Acting positions are still effective:
Arthur Shulman, Acting Director of the Office of Defense Trade Controls Compliance, pending the selection of a permanent replacement.
 
Rob Hart, Acting Division Chief, Regulatory and Multilateral Affairs, Office of Defense Trade Controls Policy, during the absence of Sarah Heidema who is on a one-year educational detail to National Defense University.

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NWSNEWS

NWS_a111
. Reuters: “Foreign Help Building Eritrea Bases Violates Embargo: U.N. Experts”

 
United Nations sanctions monitors warned in an annual report released on Friday that possible foreign support for a new military base and seaport in Eritrea and the presence of foreign weapons and equipment were likely in violation of an arms embargo.
 
The monitors told the U.N. Security Council last year that Saudi Arabia and the United Arab Emirates had established a military presence in Eritrea as part of the Saudi-led campaign against Houthi rebels in Yemen, which lies just 40 km (25 miles) across the Red Sea from the poor Horn of Africa nation.
 
They said the use of Eritrea’s land, waters and airspace by other countries to conduct military operations in a third state was not a sanctions violation, but warned that “compensation diverted directly or indirectly towards activities that threatened peace and security in the region, or for the benefit of the Eritrean military, would constitute a violation.”
 
In the past year the U.N. monitors collected evidence, including the construction of a new military base at Assab airport and a new seaport next to it, indicating “there may have been external support for infrastructure development that could benefit the Eritrean military.”
 
The monitors said they have also documented the presence in Eritrea “whether for training or transit, of armed personnel and related military and naval equipment of various Member States other than Saudi Arabia and the United Arab Emirates.”
 
The U.N. sanctions monitors determined the current terms of the U.N. arms embargo does not allow for such activities and recommended that the Security Council provide advice to U.N. states on compliance with the embargo.
 
They said it “could be reasonably determined” that foreign support for the construction of permanent military installations in Eritrea constitutes the provision of technical assistance, training, financial and other assistance to military activities, which is banned under the arms embargo.
 
The Saudi Arabia and United Arab Emirates missions to the United Nations were not immediately available to comment on the report by the U.N. sanctions monitors.
 
Eritrea’s Foreign Minister Osman Saleh Mohammed told Reuters earlier this year that the United Arab Emirates now uses Eritrean “logistical facilities.” The UAE has also trained 4,000 Yemeni fighters in Assab, Eritrea.
 
The U.N. sanctions on Eritrea were mainly imposed following accusations it backed Somalia’s Islamist al Shabaab militants, a charge Asmara denies. The U.N. monitors said in the latest report that they had – for the third year in a row – not found any firm evidence of such support.
 
Eritrea has refused to engage with the U.N. monitors and they have been unable to visit the country.

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NWS_a212
. ST&R Trade Report: “Dates and Deadlines: Valuation, Customs Regulations, Hazmat, FTZ”

 
Following are highlights of regulatory effective dates and deadlines and federal agency meetings coming up in the next week.
 
  – Nov 7: deadline for comments to DOT on proposal to harmonize Hazardous Materials Regulations with international standards
  – Nov 7: deadline for comments to FTZ Board on production activity at South Carolina auto plant
  – Nov 8: deadline for comments on CBP information collections
  – Nov 10: deadline for comments to DHS on regulations to be considered for streamlining or repeal

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NWS_a313
. ST&R Trade Report: “Updated Global Trade and Tariff Statistics Tools Available from WTO”

 
The World Trade Organization issued Nov. 2 expanded editions of two of its annual statistical publications, which provide detailed data on import/export flows and tariff rates in 2015.
 
World Tariff Profiles 2016, a joint publication of the WTO, the International Trade Center, and the United Nations Conference on Trade and Development, provides information on tariffs imposed by more than 170 economies. The first part provides summary tables showing the average tariffs imposed by individual economies. The second part provides a more detailed breakdown for each economy, listing the tariffs it imposes on imports (by product group) as well as the tariffs it faces for exports to major trading partners.
 
A new section covers the use of non-tariff barriers and the special topic in this year’s issue is the 2017 version of the Harmonized System nomenclature for classifying goods, which will enter into force Jan. 1, 2016.
 
Trade Profiles 2016 provides two-page snapshots of key indicators on trade in goods and services for 195 economies. This year’s edition incorporates “Services Profiles,” which was previously published separately.
 
Each profile begins with a snapshot of the importance of trade for each economy, indicating its world ranking for trade in both goods and commercial services. For trade in goods, data is provided by product category along with the major origins and destinations for these products. Also listed are the most exported and imported goods for each economy, broken down by agricultural and non-agricultural products. For trade in commercial services, data is broken down by services category, major origins and destinations, foreign affiliates statistics, and foreign direct investment in services. The final part of the profile covers industrial property indicators, such as patent applications.

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NWS_a414
. WZZM13: “Gun Shipments to Lebanon Brings Prison for Former Grand Rapids Businessman”

(Source: WZZM13)
 
A former Grand Rapids businessman who smuggled handguns to Lebanon hidden among auto parts was sentenced Thursday, Nov. 3 to federal prison and slapped with a $10,000 fine.
 
Federal prosecutors expressed concern that the handguns were destined for a volatile area of the Middle East, potentially jeopardizing U.S. troops in the region.
 
Gilbert Oscar Elian, 55, will spend a year and a day in federal prison for conspiracy to violate the Arms Export Control Act.  
U.S. District Court Judge Gordon J. Quist ordered that Elian serve three years on supervised release once he gets out of prison.
Elian pleaded guilty to the federal offense in March
. He faced up to five years in prison and a $250,000 fine.
 
Elian’s purchase of 93 handguns from 2012-2014 at retail outlets in the Grand Rapids area drew attention from federal authorities, according to a criminal complaint filed last year.
 
  “There is no guarantee that firearms sold within Lebanon will not end up exacerbating regional conflicts in Syria and elsewhere, and negatively impact U.S. troops in the region,” Assistant U.S. Attorney Clay M. West wrote in a sentencing memorandum.

Lebanon borders Syria, which is in the midst of a civil war with hundreds of armed groups, including the Islamic State of Iraq and Syria, West noted.
 
Defense attorney Terry Tobias said Elian’s conduct did not threaten American interests overseas.
 
  “None of the firearms were military weapons,” Tobias wrote in a sentencing memorandum. “There were no fully automatic weapons, nor were there any rifles and shotguns. All were handguns of a type commonly carried by private citizens in this country for personal defense.”
 
Federal agents say Elian bought and transported dozens of handguns, although the indictment references 20 firearms hidden inside engine blocks and transmissions destined for Beirut, Lebanon.
 
A native of Lebanon and the father of four, Elian is a former member of the Lebanese Christian Forces, a military unit closely allied with the interests of the United States, Tobias wrote in a sentencing memorandum.
 
Elian was wounded in action twice. He came to the U.S. in 1984 and became a naturalized citizen. Elian continues to maintain business interests in Lebanon, but considers himself “first and foremost, an American citizen,” Tobias wrote.
 
  “It is difficult to conceive how anyone would believe that a man who had literally shed his blood in support of American interests and foreign policy would ever be inclined to work against those same principles,” he wrote.
 
Media reports “mischaracterized him as a terrorist” and compelled the family’s decision to move to northern Virginia, Tobias wrote.
 
  “There was no mention of the more than 30 years he had lived here and no mention of his ownership of several businesses,” Tobias wrote. “The news reports failed to mention that he had served with distinction in a military unit which supported the United States Marine Corps.”

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COMMCOMMENTARY

COMM_a1
15. W.H. Maruyama: “The Next President Will Have Broad Authority to Terminate Free Trade Agreements and Impose Punitive Duties on Foreign Countries”

(Source: Hogan Lovells)
 
* Author: Warren H. Maruyama, Esq., Hogan Lovells,
warren.maruyama@hoganlovells.com, 202-637-5716.
 
Under U.S. law, the President can terminate U.S. trade agreements after giving appropriate notice to U.S. trading partners and the Congress. While the President must consult with the Congress before taking this step, termination does not require Congressional legislation or approval.
 
The basic legal authority for U.S. free trade agreements is the Trade Act of 1974 (1974 Act), which authorized the President to negotiate trade agreements dealing with tariff and non-tariff barriers. Importantly, Section 151 of the 1974 Act authorized the President to submit such agreements to Congress for approval under the so-called “fast-track”/Trade Promotion Authority (TPA) procedures. Subsequent extensions of TPA in the Omnibus Trade Act of 1988, Trade Promotion Authority Act of 2002, and Bipartisan Congressional Trade Priorities and Accountability Act of 2015 (TPA Act of 2015) have extended the fast-track/TPA procedures in Section 151 to permit new agreements.
 
All of the extensions have incorporated key provisions of the 1974 Act, including section 125, which gives the President what is commonly referred to as “termination and withdrawal authority.” Under Section 125(a), every trade agreement entered into by the U.S. must contain a provision allowing the U.S. to withdraw after giving appropriate notice (normally 6 months). Section 125(b) gives the President additional authority to revoke any earlier Presidential proclamations implementing U.S. tariff reductions under the agreement. Paragraph (c) gives the President authority to proclaim higher U.S. tariffs up to a maximum of 50 percent above the rate in Column 2 of the U.S. tariff schedule on January 1, 1975, or 20 percent above the rate in effect for that country on January 1, 1975. Finally, Section 125(e) provides that existing U.S. tariff levels normally should remain in effect for one year after termination of an agreement. Paragraph (e) reflects concern on the part of the Congress about the potentially disruptive economic effects of sudden and precipitous tariff increases, and gives traders and markets time to adjust. However, in special circumstances, the President can impose higher U.S. tariffs in less than one year after notifying the Congress and holding a public hearing, and if there is a need for truly expeditious action, the President can move without a hearing as long as a public hearing is held promptly after such action.
 
The termination and withdrawal provisions of the 1974 Act apply to NAFTA, WTO, and other U.S. trade agreements. NAFTA was negotiated under a grant of fast-track/TPA authority in the Omnibus Trade and Tariff Act of 1988 (1988 Act). Section 1105 of the 1988 Act made the termination and withdrawal provisions of Section 125 fully applicable to NAFTA.
 
As a result, the President has full authority to unilaterally terminate NAFTA if he or she so desires. This would require six months’ notice under NAFTA Article 2205, which allows a party to withdraw six months after providing written notice of withdrawal to the other parties. Thus, if the President (1) gives six months’ notice under NAFTA Article 2205 to Mexico and/or Canada, (2) terminates the free trade agreement, and (3) issues a proclamation under Sections 125(b) and 125(c) revoking U.S. NAFTA tariff concessions and imposing higher tariffs on imports from Mexico and/or Canada, U.S. tariffs would then increase up to 20 percent above their rates in effect on January 1, 1975 after a transition period of six months to a year. The same authority applies to U.S. Membership in the WTO and other U.S. free trade agreements.
 
The President also has broad authority to unilaterally impose punitive U.S. tariffs under U.S. trade law. Section 125 of the Trade Act of 1974 give the President authority to raise U.S. duties after terminating NAFTA or other trade agreements. However, because these increases are capped at 20-50 percent higher than the rates previously in effect on January 1, 1974, Section 125 would lead to only modest increases for many products.
 
Accordingly, a President who is determined to impose punitive tariffs is likely to turn to other sources of trade authority, including:
 
  – Section 301/Unfair Trade Practices – Section 301 of the Trade Act of 1974 gives the United States Trade Representative (USTR), at the direction of the President, broad authority to respond to unfair trade practices, such as violations of trade agreements, or to “an act, policy, or practice of a foreign country that is unreasonable or discriminatory and burdens or restricts U.S. commerce.” If a President directs the USTR to impose higher tariffs on a trade partner, e.g. 45% tariffs on imports from China or 35% tariffs on Mexico, USTR has clear authority to do so. While USTR has interpreted Section 301(a) to require it to take potential trade agreement violations to the WTO, and has been very reluctant to use Section 301(b) to challenge “unreasonable” practices that are not covered by WTO rules, there is nothing to stop it from doing so and acting more aggressively if it wants.  
 
  – Section 122/Balance-of-Payments – Section 122 of the Trade Act of 1974 authorizes the President to deal with “large and serious United States balance-of-payments deficits” by imposing temporary import surcharges not to exceed 15% ad valorem on imported goods, temporary quotas, or some combination of both. This 15% surcharge would be on top of any existing U.S. duties. One disadvantage is that the duties can only remain in effect 150 days, unless this period is extended by an Act of Congress.
 
  – Section 232(b)/National Security – Section 232(b) of the Trade Expansion Act of 1962 authorizes the Secretary of Commerce to investigate whether imports pose a threat to U.S. national security. Based on the Secretary’s report, the President is authorized to negotiate agreements to limit or restrict imports, or to “take such other actions as the President deems necessary to adjust the imports of such article so that such imports will not threaten to impair the national security.”  
 
  – IEEPA/International Economic Emergencies – Finally, the International Emergency Economic Powers Act (IEEPA) gives the President broad authority to deal with any “unusual and extraordinary threat, which has its source in whole or in substantial part outside the United States, to the national security, foreign policy, or economy of the United States …” Although the President must consult with the Congress, submit a report, and provide periodic follow-up reports, IEEPA does not require Congressional approval. These measures can last indefinitely. The United States has maintained its system of export controls for several decades under IEEPA, because of Congress’ inability to agree on new export control authorization legislation.
 
In sum, the President has ample authority under U.S. trade law to terminate U.S. trade agreements and impose prohibitively higher tariffs on certain U.S. trading partners. While this step would be ill-advised and likely trigger a costly trade war, it is fully permitted by U.S. law and does not require Congressional approval.

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COMM_a2
16. R.C. Burns: “Sometimes Once Doesn’t Mean Once”

(Source:
Export Law Blog
. Reprinted by permission.)
 
* Author: R. Clifton Burns, Esq., Bryan Cave LLP, Wash DC, 202-624-3949,
Clif.Burns@bryancave.com
)
 
This blog previously reported on the recent changes to the encryption rules.   One less-than-carefully drafted provision in those amendments has been causing some confusion relating to the annual self-classification reports
 
The issue is whether an item once listed on a self-classification report needs to be relisted on subsequent reports.  Before the recent amendments, products needed to be relisted on subsequent reports for each year in which they were exported during the time frame covered by the classification report.
 
The new rules say this:
 

Your encryption self-classification report must include the information described in paragraph (a) of Supplement No. 8 to part 742 for each applicable encryption commodity, software and component made eligible for export or reexport under § 740.17(b)(1) of the EAR.
Each product must be included in a report only one time. However, if no new products are made eligible for export or reexport during a calendar year, you must send an email to the addresses listed in paragraph (e)(3)(ii)(A) of this section stating that nothing has changed since the previous report.

 
At least one law firm has, with some justification, read the language saying that a product must be “included in a report only one time” to mean that items need not be included in subsequent annual reports unless, presumably, the encryption functionality of the item has changed.
 
At the BIS Update 2016, BIS officials made clear that they do not think that the language means what it appears to say. Instead, they asserted, items needed to be included on subsequent annual self-classification report even if encryption funtionality of the item has not changed since the last report. Apparently the language is thought by the agency to mean that you only have to list an item once on the same report, although why anyone ever thought that they would have to list any product more than once on the same report is puzzling.
 
No one from the agency, however, at least that I heard, could explain what “becomes eligible for export” means. The reporting requirement in the previous version was for items “exported or reexported pursuant to an encryption registration.” Unfortunately this new language requiring the listing in the report of every encryption item “eligible for export” during the reporting period would appear to apply to every encryption item that the company filing the report might have been able to export during the reporting period.  This would be the case whether or not it was actually exported. The safest course, then, for upcoming self-classification reports is to include every item with encryption functionality that was available for sale during the reporting period.
 
Note:
My apologies for the picture of my dog wearing a Cubs hat.  However, there this:  (a) the Cubs victory justifies all actions by longtime Cubs fans that are not otherwise illegal, immoral, or rude and (b) a dog picture is the only possible way to make a post about BIS’s encryption rules even vaguely interesting.  (Editor’s note:  To see Clif’s dog, you will need to go to his blog at the “Source” URL.)

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TrainingEX/IM TRAINING EVENTS & CONFERENCES

TE_a217
. 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:

* 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: London UK; “Customs Compliance Held in Partnership with HMRC;” C5

* 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 15: Webinar; “U.S. Export Controls for Academia;” ECTI; danielle@learnexportcompliance.com; 540-433-3977

* 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 17: Rotterdam NL; “NIDV Conference & Exhibition 2016;” The Netherlands Industries for Defence & Security
* Nov 17: Webinar; “Election 2016: Winners, Losers, and What It Means for Trade;”
Sandler, Travis & Rosenberg, P.A.;
webinarorganizers@strtrade.com 

* 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: Melbourne FL; “ACE is the Place for EEI/AES Export Declarations;” Space Coast World Trade Council; bcantillon@bellsouth.net
* Dec 2: Long Beach CA; “
FTA Annual Holiday Celebration;” Foreign Trade Association

* 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 13: Shanghai; “
5th Advanced China Forum on Import Compliance;” American Conference Institute

* Jan 23-26: San Diego, CA; “
EAR/ITAR/OFAC Compliance Seminar Series
;” ECTI;
jessica@learnexportcompliance.com
; 540-433-3977

* Jan 31-Feb 1: Toronto; “
6th Forum on US Export & Re-Export for Canadian Operations;” American Conference Institute
* Feb 1: Wash DC; “
3rd National Forum on CFIUS & Team Telecom;” American Conference Institute
* Feb 8-9: Wash DC; “7th Annual Advanced ITAR & EAR Compliance;” marcus evans

* Feb 20-23: Orlando; “
United States Export Control (EAR/OFAC/ITAR) Seminar
;” ECTI;
jessica@learnexportcompliance.com
; 540-433-3977

* Mar 5-6: Dubai UAE; “Trade Compliance in the Middle East;” C5

* Mar 7-10: Orlando; “
‘Partnering for Compliance™’ East Export/Import Control Training and Education Program
;” Partnering for Compliance East;
Ailish@PartneringForCompliance.org
; 321-952-2978

* Mar 12-15: Miami; “ICPA Miami Conference;”
International Compliance Professionals Association;
wizard@icpainc.org 

* Mar 13-15: Newport Beach CA; “2017 Winter Back to Basics Conference;” Society for International Affairs

* Mar 17: Chicago IL; “
Customs Education & Solutions Seminar
;” AAEI; Chris Enyart,
cenyart@aaei.org
, +1-202-857-8009

* 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

* May 1-2: Tucson AZ; “2017 Spring Conference;” Society for International Affairs
* May 7-9: Toronto; “ICPA Toronto Conference;”
International Compliance Professionals Association;
wizard@icpainc.org 

* May 15-18: London UK; “

United States Export Control (EAR/OFAC/ITAR) Seminar in London (for EU and other non-US Companies)
;” ECTI;
jessica@learnexportcompliance.com
; 540-433-3977

* Jun 11-13: Dublin IRL; “ICPA Dublin Conference;”
International Compliance Professionals Association;
wizard@icpainc.org 

* Jun 12-15: San Francisco; “

United States Export Control (EAR/OFAC/ITAR) Seminar
;” ECTI;
jessica@learnexportcompliance.com
; 540-433-3977

* Sep 4-9: Galveston TX; “ICPA Conference at Sea;”
International Compliance Professionals Association;
wizard@icpainc.org 

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

MSEX/IM MOVERS & SHAKERS

MS_a118. Thao Huynh Moves to Raytheon
(Source: Thao Huynh)
 
Thao C. Huynh has moved from Bell Helicopter Textron Inc., to Raytheon Missile Systems, where she now serves at Sr. Manager, Global Trade.  Contact Thao at 520-794-3765 or Thao.C.Huynh@raytheon.com.
* * * * * * * * * * * * * * * * * * * *

ENEDITOR’S NOTES

EN_a119. Bartlett’s Unfamiliar Quotations

(Source: Editor)
 

* Will Rogers (William Penn Adair “Will” Rogers, 4 Nov 1879 – 15 Aug 1935, was a stage and motion picture actor, vaudeville performer, American cowboy, humorist, newspaper columnist, and social commentator.)
  – “I don’t make jokes. I just watch the government and report the facts.”
 
* Will Durant (William James “Will” Durant, 5 Nov 1885 – 7 Nov 1981; was an American writer, historian, and philosopher. He is best known for The Story of Civilization, 11 volumes written in collaboration with his wife, Ariel Durant.)
  – “In my youth I stressed freedom, and in my old age I stress order. I have made the great discovery that liberty is a product of order.”
 
Friday Funnies:
 
A man and a woman who have never met before find themselves assigned to the same sleeping room on a transcontinental train. They go to the conductor who tells them the train is overbooked, nothing else is available, and they will have to make do. After the initial embarrassment and uneasiness, they agree to room together; the man in the upper berth and the woman in the lower berth. In the middle of the night, the man leans over, wakes the woman and says, “I’m sorry to bother you, but I’m awfully cold and I was wondering if you could go to the closet and get me another blanket?” The woman leans out and with a glint in her eye says, “I have a better idea. Just for tonight let’s pretend that we are married.” The man happily says, “OKAY. AWESOME!” The woman says, “GOOD … get your own damn blanket!”
  — Sally Scinto-Reinertson, Wausau, WI

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

EN_a220. 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:
28 Oct 2016: 81 FR 74918: New Mailing Address for the National Commodity Specialist Division, Regulations and Rulings, Office of Trade; Technical Correction

* 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: 4 Nov 2016: 81 FR 76859-76861: Amendments to the Export Administration Regulations: Update of Arms Embargoes on Cote d’Ivoire, Liberia, Sri Lanka and Vietnam, and Recognition of India as Member of the Missile Technology Control Regime 

  
*
FOREIGN ASSETS CONTROL REGULATIONS (OFAC FACR)
: 31 CFR, Parts 500-599, Embargoes, Sanctions, Executive Orders
  – Last Amendment: 4 Nov 2016: 81 FR 76861-76863: Amendments to OFAC Regulations To Remove the Former Liberian Regime of Charles Taylor Sanctions Regulations and References to Fax-on-Demand Service 
 
*
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.

* 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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