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16-1115 Tuesday “The Daily Bugle”

16-1115 Tuesday “Daily Bugle”

Tuesday, 15 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/ITA Seeks Nominations for Trade Promotion Coordinating Committee 
  2. Energy/NNSA/State/Commerce Amend Procedures Established Pursuant to the Nuclear Non-Proliferation Act of 1978 
  1. Ex/Im Items Scheduled for Publication in Future Federal Register Editions 
  2. Commerce/BIS: (No new postings.) 
  3. State/DDTC: (No new postings.) 
  4. Treasury/OFAC Announces 2016 Fall Symposium 
  5. EU Amends Dual-Use Regulation, Annex I, IIa, IIb, and IV 
  6. EU Amends Restrictive Measures Concerning Syria 
  1. Defense News: “Israel Eases Cyber Sales Restrictions”
  2. Reuters: “ZTE Appoints Export Compliance Officer Ahead of U.S. Sanction Deadline”
  3. ST&R Trade Report: “New Export Promotion Working Group Extends Deadline for Member Nominations”
  1. D. Jacobson, G. Kelley and M. Burton: “New Harmonized EAR and ITAR Destination Control Statement Requirements Take Effect Today”
  2. J. Todd: “Export Documentation Requirements Changes Effective Today Following EAR/ITAR Amendments”
  3. M. Miller Proctor: “New Mechanism for Submitting Commodity Jurisdiction Requests to the State Department’s Directorate of Defense Trade Controls to Be Launched on November 21st”
  4. Gary Stanley’s ECR Tip of the Day
  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 (25 Nov 2016)

EXIMEX/IM ITEMS FROM TODAY’S FEDERAL REGISTER

EXIM_a1

1. Commerce/ITA Seeks Nominations for Trade Promotion Coordinating Committee
(Source: Federal Register) [Excerpts.]
 
81 FR 80015-80016: Trade Promotion Coordinating Committee
* AGENCY: International Trade Administration, U.S. Department of Commerce.
* ACTION: Notice and request for nominations from state, local, and municipal governments to the Trade Promotion Coordinating Committee State and Federal Export Promotion Coordination Working Group; extension of deadline.
* SUMMARY: The Secretary of Commerce, as Chair of the Trade Promotion Coordinating Committee (TPCC), announces the establishment of the State and Federal Export Promotion Coordination Working Group as a subcommittee of the TPCC. The Trade Facilitation and Trade Enforcement Act of 2015 (the Act) requires the President to establish this Working Group as a subcommittee of the TPCC to identify issues related to the coordination of Federal resources relating to export promotion and export financing with such resources provided by State and local governments. The original notice (FR Doc. 2016-23501) ([citation]) called for nominations to be submitted by October 24, 2016. This notice hereby extends the deadline to November 25, 2016.
* DATES: Nominations for immediate consideration for the Working Group must be received electronically on or before 5:00 p.m. (ET) on November 25, 2016. After that date, ITA will continue to accept submissions under this notice for a period of up to two years from the deadline to fill any vacancies that may arise.
* FOR FURTHER INFORMATION CONTACT: Patrick Kirwan, Director, Trade Promotion Coordinating Committee Secretariat, Room 31027, U.S. Department of Commerce, 1401 Constitution Avenue NW., Washington, DC 20230, telephone: 202-482-5455, email: StateandLocal@trade.gov.
* SUPPLEMENTARY INFORMATION: …
   The TPCC Secretariat seeks nominations for representatives fromState trade agencies and local and municipal governments to the Working Group. For purposes of this notice, a “State trade agency” is the lead official governmental trade promotion agency for a State, and includes separately established trade agencies as well as trade offices within a State agency or department or the Office of the Governor. A “local or municipal government” includes, but is not limited to, town, city, and county governments. The TPCC seeks representation of regionally diverse areas. Qualified individuals may self-nominate or be nominated by a senior level State government or local or municipal government official. To be considered, nominators should submit the following information: …
 
   Dated: November 8, 2016.
Patrick Kirwan, Director, Trade Promotion Coordinating Committee Secretariat.  

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EXIM_a2

2. Energy/NNSA/State/Commerce Amend Procedures Established Pursuant to the Nuclear Non-Proliferation Act of 1978
(Source: Federal Register) [Excerpts.]
 
81 FR 80051-80052: Amendment to Procedures Established Pursuant to the Nuclear Non-Proliferation Act of 1978
* AGENCY: National Nuclear Security Administration, Department of Energy; Department of State, Department of Commerce.
* ACTION: Notice.
* SUMMARY: Section 3136 of the National Defense Authorization Act for Fiscal Year 2016 (NDAA) mandates that the Office of the Director of National Intelligence (ODNI) also be consulted with respect to each authorization under section 57b.(2) of the Atomic Energy Act of 1954, as amended (AEA), to a covered foreign country as defined in section 3136(i)(2) of the NDAA. This amendment to the Procedures Established Pursuant to the Nuclear Non-Proliferation Act of 1978 implements this consultation requirement.
* DATES: Effective: November 15, 2016.
* FOR FURTHER INFORMATION CONTACT: Mr. Richard Goorevich, Senior Policy Advisor, Office of Nonproliferation and Arms Control (NPAC), National Nuclear Security Administration (NNSA), Department of Energy (DOE), 1000 Independence Avenue SW., Washington, DC 20585, Richard.Goorevich@nnsa.doe.gov, telephone 202-586-0589; or Mr. Dick Stratford, Director, Office of Nuclear Energy, Safety, and Security, Department of State (DOS), 2201 C St. NW., Room 3320, Washington, DC 20520, StratfordRJ@state.gov, telephone 202-647-4413; or Mr. Steven Clagett, Director, Nuclear and Missile Technology Division, Department of Commerce, 1401 Constitution Avenue NW., Washington, DC 20230, Steven.clagett@bis.doc.gov, telephone 202-482-1641.
* SUPPLEMENTARY INFORMATION: …
   Section 57b.(2) of the Atomic Energy Act of 1954, as amended (AEA), is implemented through the DOE/NNSA regulations under Title 10 of the Code of Federal Regulations (CPR) Part 810 (Part 810) governing exports of unclassified nuclear technology and assistance. …
This amendment addresses only Section 12 of Part D of the Procedures to implement the new requirements of Section 3136 of the NDAA, which mandates that the Director, ODNI, also be consulted with respect to each authorization under section 57b. of the AEA to a covered foreign country as defined in section 3136(i)(2) of the NDAA.
 
Amended Procedure
 
To provide for consultation with the ODNI on applications for specific authorization under section 57b.(2) of the AEA, as implemented by DOE/NNSA regulations at 10 CFR Part 810, Section 12 of Part D of the Procedures is amended as follows:

  (1) Within 10 days of receipt of an application for specific authorization for a transfer of technology controlled under 10 CFR Part 810, DOE/NNSA conducts a technical review of the application to determine whether the application is properly submitted and falls within the scope of the regulation.
  (1a) Concurrent with the internal DOE/NNSA technical review, for packages involving covered foreign countries as defined in section 3136(i)(2) of the NDAA, DOE/NNSA sends the end user, equipment, supplier information, and any other relevant information to ODNI. ODNI notifies Intelligence Community (IC) elements of the application for transfer of technology as soon as possible.
  (1b) Within 10 business days of initial notification, ODNI identifies, based on the details of the transfer application and availability, an IC point of contact (POC) to provide a response. DOE/NNSA provides ODNI with any technical reviews or assessments conducted by DOE/NNSA relevant to the technology transfer.
  (1c) Within 30 business days of receiving the end user, equipment, and supplier information from DOE/NNSA, ODNI makes its coordinated response available to: DOE/NNSA; DOS; and NRC, DOC, and DoD (collectively herein referred to as the “Consulting Agencies”).
  (2) After the DOE/NNSA technical review is complete, with expected timelines of not more than 60 days for covered foreign countries and 30 days for other destinations, DOE/NNSA transmits through appropriate means the application and DOE/NNSA analysis to DoD, DOC, DOS, and NRC for review. Within 30 days after receipt, DOS and the Consulting Agencies provide their views on the application and analysis. If DOS or a Consulting Agency notifies DOE/NNSA NPAC in writing that additional information is required, NPAC will provide appropriate time for all Consulting Agencies to consider the application and a new time line will be established for reviews based on individual circumstances. Note that the U.S. Government, through DOS, requests foreign government assurances for specific authorizations, and it is the foreign government’s control over how long it may take to deliver these assurances, which may lengthen the time line for interagency review beyond the expected 30 days.
  (3) Within 100 days following the completion of the interagency consultations, NPAC provides the Secretary of Energy with a recommendation for action on the application, including the views of DOS, the Consulting Agencies, and ODNI, if applicable. In the event that any such agencies recommend further consideration this timeline may be extended. …
 
Dated: November 2, 2016.
   Kasia Mendelsohn,Associate Deputy, Administrator, Office of Nonproliferation and Arms Control, National Nuclear Security Administration. Department of Energy.
   Richard J.K. Stratford,Director, Office of Nuclear Energy, Safety and Security, Bureau of International Security and Nonproliferation, Department of State.
   Matthew Borman, Deputy Assistant Secretary, Office of Export Administration, Bureau of lndustry and Security, Department of Commerce.

 

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OGSOTHER GOVERNMENT SOURCES

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

* Justice; Alcohol, Tobacco, Firearms, and Explosives Bureau; NOTICES; Commerce in Explosives: 2016 Annual List of Explosive Materials [Publication Date: 16 November 2016.]

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Save the Date!  OFAC invites you to join us for our 2016 Fall Symposium to take place in Washington, D.C. on December 7, 2016. Registration information to follow soon.

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Regulations:
  – Commission Delegated Regulation (EU) 2016/1969 of 12 September 2016 amending Council Regulation (EC) No 428/2009 setting up a Community regime for the control of exports, transfer, brokering and transit of dual-use items

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OGS_a68. EU Amends Restrictive Measures Concerning Syria

 
Regulations:
  – Council Implementing Regulation (EU) 2016/1984 of 14 November 2016 implementing Regulation (EU) No 36/2012 concerning restrictive measures in view of the situation in Syria
 
Decisions:
  – Council Implementing Decision (CFSP) 2016/1985 of 14 November 2016 implementing Decision 2013/255/CFSP concerning restrictive measures against Syria

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NWSNEWS

NWS_a19. Defense News: “Israel Eases Cyber Sales Restrictions”

(Source: Defense News)
 
After liberalizing earlier this year its export control policy on dual-use, cyber-related products and services, the Israeli government is now reaching out to select military end users in a concerted push to surge cybersecurity sales.
 
On Tuesday, Mishel Ben Baruch, director of the Defense Ministry’s Export and International Cooperation Directorate (SIBAT), told an international conference in Tel Aviv that his organization has declared 2017 “Israel’s year of cybersecurity exports” and, as such, is targeting more than 20 countries for enhanced cyber-related trade.
 
  “We identified specific opportunities and needs in more than 20 countries around the world with which SIBAT has close ties,” Ben Baruch told several hundred government and industry participants attending this year’s HLS and Cyber conference, sponsored by the Israel Export Institute.
 
According to Ben Baruch, Israel’s Ministry of Defence (MoD) this year is conducting its first dedicated “cyber situational assessment” – alongside its traditional assessment for defense trade – and plans to coordinate “a special effort to advance the exceptional capabilities of Israel’s cyber defense industries.”
 
A special SIBAT survey of potential customers and their needs, he said, indicates growing trends, including:
 
  – Development and supply of “cyber vaccines” to weapons and command and control systems.
  – Establishment of advanced national Computer Emergency Response Team centers.
  – Protection of strategic facilities.
  – Cyber-related training and trainers.
  – Advanced cybercrime tools and services.
 
  “The Israel defense industries have amazing capabilities in research and development and technology, some of which is traditional defense technologies being adapted for cyber,” Ben Baruch said.
 
According to Israel’s National Cyber Directorate (NCD), cyber-related exports in 2015 amounted to about $4 billion, about $800 million above year-end 2014 figures and more than all other nations combined apart from the US.
 
Estimated Israeli cyber exports for 2016 are expected to “come very close or even exceed” the $5 billion mark, an NCD official told Defense News on Tuesday.
 
Such figures, he said, included all cyber-related exports, from commercial off-the-shelf and dual-use capabilities through sensitive military-end use products, services and technologies.
 
Earlier this year, after years of heated debate between the NCD and the MoD, Israeli Prime Minister Benjamin Netanyahu determined that Israel would liberalize licensing and technology transfer restrictions for all but military and defense end users.
 
As such, the government is forming a new authority to be managed jointly by the NCD and the Ministry of Economy for oversight and management of all commercial and most dual-use exports.
 
In a June interview, NCD Director Eviatar Matania said the new policy would be guided by the internationally accepted Wassenaar Arrangement for dual-use exports, “but nothing more than that.”
 
  “Most of the time, there will be a pre-ruling in favor of the exporters; a presumption of approval, instead of a presumption of denial,” Matania had said. “Most product solutions and technologies should not be licensed, aside from those that are a part of the Wassenaar. But even within Wassenaar, there will be a pre-ruling if, for example, you sell to the United States.”
 
Matania noted that only cyber-related exports to military users and international security agencies would remain under the purview of the MoD, with input from the Foreign Ministry.
 
  “It’s not like we took away from MoD things for which it must be responsible,” he said at the time. “The Ministry of Economy, together with the NCD, will have a new mechanism specifically crafted to the cyber domain.”
 
In his conference presentation on Tuesday, Ben Baruch declined to name the 20-some countries identified by the MoD as targets of opportunity for enhanced cyber-related exports.
 
When asked to clarify, an MoD source whispered, on condition of anonymity: “Definitely not Russia.”

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NWS_a2
10. Reuters: “ZTE Appoints Export Compliance Officer Ahead of U.S. Sanction Deadline”

(Source: Reuters)
 
Chinese telecoms equipment group ZTE Corp, facing U.S. sanctions that could come this month, on Tuesday said it had appointed a new chief export compliance officer based in the United States.
 
Matthew Bell was appointed chief export compliance officer and legal counsel, and will also serve as chief compliance officer and legal counsel for ZTE USA, the firm’s U.S. subsidiary, the firm said.
 
An imposition of a ban from Nov. 28 for U.S. component makers and software firms to do business with ZTE threatens to cut off much of the supply chain for the Chinese network equipment and smartphone maker.
 
The U.S. Commerce Department ordered the trade ban in March this year over allegations that ZTE violated U.S. sanctions on Iran by selling products with U.S. technology into the country. It subsequently gave ZTE reprieves that were extended to Nov. 28 while the company seeks to reach a settlement.
 
Uncertainty brought about by the export restrictions have weighed heavily on ZTE’s share price this year, with the stock down 33 percent in Hong Kong.
 
Bell – who joins from U.S. engineering firm Kellogg Borwn & Root – will report to Chief Compliance Officer Cheng Gang, ZTE said.

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NWS_a3
11. ST&R Trade Report: “New Export Promotion Working Group Extends Deadline for Member Nominations”

 
The Department of Commerce has extended through Nov. 25 the deadline for nominations for membership on a new State and Federal Export Promotion Coordination Working Group under the Trade Promotion Coordinating Committee. The Trade Facilitation and Trade Enforcement Act requires the establishment of this working group and directs it to engage in the following activities.
 
  – identify issues related to the coordination of federal, state, and local resources relating to export promotion and export financing
  – identify ways to improve coordination of export promotion and export financing activities through the TPCC annual strategic plan
  – develop a strategy for improving coordination of federal and state export promotion and export financing resources, including methods to eliminate duplication of effort and overlapping functions
  – develop a strategic plan for considering and implementing the suggestions of the working group as part of the TPCC annual strategic plan
 
Members of the working group will include representatives from state trade agencies and local and municipal governments representing regionally diverse areas as well as representatives of the federal departments and agencies that are represented on the TPCC.

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COMMCOMMENTARY

COMM_a112. D. Jacobson, G. Kelley and M. Burton: “New Harmonized EAR and ITAR Destination Control Statement Requirements Take Effect Today”

 
* Authors: Douglas N. Jacobson, Esq.,
djacobson@jacobsonburton.com
, 202-431-2407; Glen N. Kelley, Esq.,
gkelley@jacobsonburton.com
, 212-658-0601; and Michael L. Burton, Esq.,
mburton@jacobsonburton.com
, 202-957-8009. All of Jacobson Burton Kelley PLLC.
 
This is a reminder that today, November 15, 2016, is the effective date of the final BIS and DDTC rules implementing the new harmonized EAR and ITAR Destination Control Statement (DCS) and making changes to other shipping requirements. The text of the final rules published by DDTC and BIS on August 17, 2017 can be found here (ITAR) and here (EAR).
 
As a result, the following language must now be included on the Commercial Invoice associated with items on the Commerce Control List (CCL) or US Munitions List (USML) that are exported from the United States:
 
“These items are controlled by the U.S. Government and authorized for export only to the country of ultimate destination for use by the ultimate consignee or end-user(s) herein identified. They may not be resold, transferred, or otherwise disposed of, to any other country or to any person other than the authorized ultimate consignee or end-user(s), either in their original form or after being incorporated into other items, without first obtaining approval from the U.S. government or as otherwise authorized by U.S. law and regulations.”
 
This new DCS language only has to be included on the Commercial Invoice and no longer needs to be included on the shipping documents, such as the bill of lading or airwaybill, as in the past. While we have had a number of clients express concerns that this language exceeds the size of the current DCS field on invoices generated in their ERP system, BIS and DDTC have stated that this language cannot be shortened or modified.
 
While this language only has to be included on the commercial invoices for items actually on the CCL (i.e., those items with an ECCN and not classified as EAR99), BIS has stated that it is permissible to include this DCS language on commercial invoices associated with the export of EAR99 goods, if the exporter chooses to do so.
 
In addition to including the new DCS language on the commercial invoices, the following additional requirements also take effect today:
 
Exports of ITAR controlled goods on the USML
New section 123.9 of the ITAR requires the commercial invoice associated with the shipment of ITAR controlled defense articles to include the following additional information:
 
  –
name of country of ultimate destination;
  –
name of the end-user; and
  –
license or other approval number or exemption citation
 
Exports of “600” series and 9×515 Controlled Goods –
The BIS final rule also modifies section 758.6 of the EAR to require the commercial invoice to include the ECCN(s) for any goods that are classified in the “600 Series” on the CCL (military parts and components) or items that are classified in ECCNs 9×515 (i.e., ECCNs 9A515 and 9B515 covering spacecraft and commercial satellites) that are exported from the US. The ECCN of other items not included in these classifications does not have to be included on the Commercial Invoice, but it is useful to include them. 
 
The purpose of the DCS and other informational requirements “is to ensure that [the export control information regarding the item] ultimate consignee and/or end user(s) that will be in a position to make a subsequent reexport or transfer (incountry), so they are aware the item in question is subject to U.S. reexport controls.”  However, neither the EAR and ITAR require the DCS to be included on the Commercial Invoice associated with the reexport or transfer of US export controlled items from one country to another.
 
[Editor’s note:  All of the ITAR amendments effective today are contained in the 15 November 2016 edition of Bartlett’s Annotated ITAR (“BITAR”), sent today to BITAR subscribers.  For BITAR subscription information, go to www.FullCircleCompliance.eu.]
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COMM_a213. J. Todd: “Export Documentation Requirements Change Today Following EAR/ITAR Amendments”
(Source: Benesch)
 
* Author: Jonathan Todd, Esq., Benesch, jtodd@beneschlaw.com, 216-363-4658
 
Export control documentation requirements are changing effective November 15, 2016. Specifically, the Department of Commerce’s Bureau of Industry and Security, and the Department of State’s Directorate of Defense Trade Controls, amended the requirements for where the Destination Control Statement (“DCS”) must appear and its contents. Each agency published its Final Rule with respect to these amendments in the Federal Register on August 17, 2017 (81 FR 54721, 54732). The paperwork and processes used by exporters, carriers, and forwarders engaged in the export trade are affected by these changes.
 
Commerce and State examined the mandatory DCS requirements under both the Export Administration Regulations (“EAR”) and the International Traffic in Arms Regulations (“ITAR”) as part of the President’s Export Control Reform initiative. Whether under EAR or ITAR, the DCS shares the common purpose of alerting parties outside the United States that shipments exported from the U.S. are subject to U.S. export controls and the reexport, diversion, or in-country transfer may be prohibited by U.S. law. The agencies sought to simplify the DCS requirements and harmonize mandatory language as set forth in 15 CFR 758.6 and 22 CFR 123.9. As a result, the DCS may now appear solely on the commercial invoice and the specific language is identical regardless of the agency with jurisdiction.
 
DCS No Longer Required For Transportation Documents
 
The regulatory compliance burden on carriers, forwarders, and exporters is lessened by the DCS amendments. Transportation documents, such as the bills of lading and international air waybills issued by carriers and forwarders, are no longer required to carry the DCS as of November 15. Historically, the DCS requirement was applied broadly and imposed on these transportation documents. However, transportation documents face formatting constraints and often do not reach the consignee or end-user to whom they are intended to provide notice.
 
As part of the amendments, Commerce and State agree to remove the requirement that the DCS appear on transportation documents by requiring, instead, that it appear only on the commercial invoice. Each agency now observes that the practical intent behind the DCS, which is to provide appropriate notice at destination, is best achieved by placing the DCS on the commercial invoice alone as it is most likely to reach the consignee or end-user. Commerce also confirmed that any condition on a license issued prior to August 17, 2016, that requires placing the DCS on documents other than the commercial invoice, including transportation documents, are no longer applicable as of November 15, 2016.
 
DCS Now Contains New Harmonized Language
 
The DCS language required to appear on commercial invoices by 15 CFR 758.6 and 22 CFR 123.9 is now identical, stating as follows: “These items are controlled by the U.S. Government and authorized for export only to the country of ultimate destination for use by the ultimate consignee or end-user(s) herein identified. They may not be resold, transferred, or otherwise disposed of, to any other country or to any person other than the authorized ultimate consignee or end-user(s), either in their original form or after being incorporated into other items, without first obtaining approval from the U.S. government or as otherwise authorized by U.S. law and regulations.” Additional commercial invoice disclosure requirements are provided in the respective regulations.
 
The net effect of these changes is a clearer and less complicated approach to the DGS requirement. The overall compliance burden is decreased while the likelihood of successful, error-free, regulatory compliance is increased. However, all exporters, carriers, and forwarders are well advised to take this opportunity to carefully examine their paperwork and processes in response to these amendments.

[Editor’s note:  All of the ITAR amendments effective today are contained in the 15 November 2016 edition of Bartlett’s Annotated ITAR (“BITAR”), sent today to BITAR subscribers.  To get your subscription to the BITAR, go to www.FullCircleCompliance.eu.]
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COMM_a314. M. Miller Proctor: “New Mechanism for Submitting Commodity Jurisdiction Requests to the State Department’s Directorate of Defense Trade Controls to Be Launched on November 21st”
(Source: Polsinelli PC)

* Author: Melissa Miller Proctor, Esq., Polsinelli PC, mproctor@polsinelli.com, 602-650-2002.
 
Beginning on November 21st, as part of the DDTC’s IT Modernization project, the State Department’s Directorate of Defense Trade Controls (DDTC) will require Commodity Jurisdiction (CJ) requests to be submitted online via the new Defense Export Control and Compliance System (DECCS) which will interface with the USXPORTS system. Companies engaged in aerospace and defense-related industries, whose activities are subject to the International Traffic in Arms Regulations (ITAR), have the option of submitting CJ requests to the DDTC for a formal and binding determination as to whether their goods, software or technical data are subject to the ITAR or to the Export Administration Regulations. The DECCS will eventually be used not only for the submission of CJ requests, but also for DDTC annual registrations and ITAR license applications (i.e., for the current DSP-5, DSP-6, DSP-61, DSP-73, DSP-74, DSP-85 and DSP-119 authorizations). The CJ request application will be the first module rolled out in the DECCS. Once all of the remaining modules are launched, DECCS will replace the current D-TRADE system, EFS, MARY and ELLIE. All of the DECCS modules will be accessible through the DDTC’s website.
 
Once the CJ request module goes live on November 21st, companies may access the DECCS using a web browser such as Internet Explorer, Google Chrome and Mozilla Firefox. Usernames and passwords will be required to log in to most of the modules in the DECCS except for the CJ request application. Digital certificates currently being used by companies for their D-TRADE submissions will also be allowed in the DECCS environment. There will be a total of fifteen (15) screens in the CJ application that companies will need to navigate through and complete. As companies are preparing their CJ requests, they will have the ability to save the applications and access them again at a later date. Once the company has submitted its CJ request into the DECCS, a pop-up message will be generated confirming that the application has been received and showing the unique CJ number assigned to the case, which should be used to track the status of the application through the ELISA system. The DDTC’s CJ determination letter will be mailed in hardcopy to the company; however, the DDTC is planning to roll out an automated dissemination process for CJ determinations down the road.
 
Companies may continue submitting CJ requests through EFS until November 16, 2016, and no additional CJ requests will be accepted until the DECCS application is released on November 21st. CJ applications pending with the DDTC on November 21st will be automatically transferred over to the USXPORTS system for continued processing.

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COMM_a415. Gary Stanley’s ECR Tip of the Day
(Source: Defense and Export-Import Update; available by subscription from
gstanley@glstrade.com
)
 
* Author: Gary Stanley, Esq., Global Legal Services, PC, (202) 352-3059,
gstanley@glstrade.com
 
For purposes of ITAR DSP-5 employment licenses for foreign national employees, a foreign person is considered an employee of a U.S. company when the foreign person is a full time regular employee, directly paid, insured, hired/fired and/or promoted exclusively by the U.S. person. The employee, however, need not LIVE in the United States to be employed by the U.S. person. The U.S. person is liable to ensure all foreign person employees are compliant with U.S. export laws regardless of residence.
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ENEDITOR’S NOTES

EN_a116. Bartlett’s Unfamiliar Quotations

(Source: Editor)

* Erwin Rommel (Johannes Erwin Eugen Rommel, 15 Nov 1891 – 14 Oct 1944, popularly known as the Desert Fox, was a senior German Army officer during World War II.)
  – “Don’t fight a battle if you won’t gain anything by winning.”
 
* Johann Kaspar Lavater (15 Nov 1741 – 2 Jan 1801, was a Swiss poet, writer, philosopher, physiognomist and theologian.)
  – “He who seldom speaks, and with one calm well-timed word can strike dumb the loquacious, is a genius or a hero.”
  – “If you wish to appear agreeable in society, you must consent to be taught many things which you know already.” 

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EN_a217. 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 
 
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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 (15 Nov 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. 
 
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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.
 
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INTERNATIONAL TRAFFIC IN ARMS REGULATIONS (ITAR)
: 22 C.F.R. Ch. I, Subch. M, Pts. 120-130
  – Latest Amendment: 12 Oct 2016 (effective 15 Nov 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 15 Nov 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 took effect on 15 November and will take effect on 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.  

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EPEDITORIAL POLICY

* The Ex/Im Daily Update is a publication of FCC Advisory B.V., edited by James E. Bartlett III and Alexander Bosch, and emailed every business day to approximately 8,000 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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