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16-1118 Friday “The Daily Bugle”

16-1118 Friday “Daily Bugle”

Friday, 18 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 Extends Validity of Temporary General License for Two ZTE Entities 
  2. Commerce/BIS Seeks Comments on Foreign Availability Procedures 
  3. Commerce/BIS Seeks Comments on Voluntary Self-Disclosure of Violations of the EAR 
  4. DHS/CBP Seeks Comments on Form 226, Record of Vessel Foreign Repair or Equipment Purchase 
  1. Ex/Im Items Scheduled for Publication in Future Federal Register Editions 
  2. Commerce/BIS: (No new postings.) 
  3. Commerce/Census: “Tips on How to Resolve AES Fatal Errors” 
  4. DoD/DSCA Posts SAMM and Policy Memoranda, Week 13-19 Nov 
  5. State/DDTC Posts Modifications Due to the Thanksgiving Holiday 
  6. State/DDTC Posts Reminder on DECCS Release #1 
  7. State/DDTC Updates Key Personnel Listing 
  8. UK/BIS ECO Posts Updated Consolidated Export Control List 
  1. Expeditors News: “USTR Lists GSP Items Possibly Losing Eligibility in 2016”
  2. ST&R Trade Report: “Dates and Deadlines: Classification, Import Restrictions, Export Promotion”
  3. ST&R Trade Report: “Suspension of Restrictions on Exports to Two ZTE Entities Extended”
  1. G. Barraco: “Even E-commerce Giants Lack Export Control Processes”
  2. J. Reeves & T. Ficaretta: “New ATF Form 4473 Goes Into Effect on January 16, 2017”
  3. T. Feddo, J. Burnett & J.M. Waite: “Previewing Trade Policy in the Trump Administration, Part 2: China”
  4. R.C. Burns: “Guilty As Charged”
  1. Friday List of Approaching Events
  1. Bartlett’s Unfamiliar Quotations 
  2. Are Your Copies of Regulations Up to Date? Latest Changes: ATF (15 Jan 2016), Customs (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 Extends Validity of Temporary General License for Two ZTE Entities

(Source: Federal Register) [Excerpts.]
 
81 FR 81663-81664: Temporary General License: Extension of Validity
* AGENCY: Bureau of Industry and Security, Commerce.
* ACTION: Final rule.
* SUMMARY: On March 24, 2016, the Bureau of Industry and Security (BIS) published a final rule, Temporary General License. The March 24 final rule created a temporary general license that restored, for a specified time period, the licensing requirements and policies under the Export Administration Regulations (EAR) for exports, reexports, and transfers (in-country) as of March 7, 2016, to two entities (ZTE Corporation and ZTE Kangxun) that were added to the Entity List on March 8, 2016. At this time, the U.S. Government has decided to extend the temporary general license until February 27, 2017. In order to implement this decision, this final rule revises the temporary general license to remove the expiration date of November 28, 2016, and to substitute the date of February 27, 2017. This final rule makes no other changes to the EAR.
* DATES: This rule is effective November 18, 2016 through February 27, 2017. The expiration date of the final rule published on March 24, 2016 (81 FR 15633) is extended until February 27, 2017.
* FOR FURTHER INFORMATION CONTACT: Chair, End-User Review Committee, Office of the Assistant Secretary, Export Administration, Bureau of Industry and Security, Department of Commerce, Phone: (202) 482-5991, Email: ERC@bis.doc.gov.
* SUPPLEMENTARY INFORMATION: …
   BIS issued the March 24 final rule, and the June 28 and August 19 extension of validity final rules, in connection with a request to remove or modify the listings. The March 24 final rule, and the June 28 and August 19 final rules, specified that the temporary general license was renewable if the U.S. Government determined, in its sole discretion, that ZTE Corporation and ZTE Kangxun were performing their undertakings to the U.S. Government in a timely manner and otherwise cooperating with the U.S. Government in resolving the matter which led to the two entities’ listing.
   At this time, the U.S. Government has decided to extend the temporary general license until February 27, 2017. In order to implement this U.S. Government decision, this final rule revises the temporary general license to remove the date of November 28, 2016, and substitute the date of February 27, 2017. This final rule makes no other changes to the EAR. …
 
   Dated: November 14, 2016.
Kevin J. Wolf, Assistant Secretary for Export Administration.

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EXIM_a2

2. Commerce/BIS Seeks Comments on Foreign Availability Procedures
(Source: Federal Register) [Excerpts.]
 
81 FR 81733: Submission for OMB Review; Comment Request
   The Department of Commerce will submit to the Office of Management and Budget (OMB) for clearance the following proposal for collection of information under the provisions of the Paperwork Reduction Act (44 U.S.C. Chapter 35).
  – Agency: Bureau of Industry and Security.
  – Title: Foreign Availability Procedures.
  – Needs and Uses: This information is collected in order to respond to requests by Congress and industry to make foreign availability determinations in accordance with Section 768 of the Export Administration Regulations. Exporters are urged to voluntarily submit data to support the contention that items controlled for export for national security reasons are available-in-fact, from a non-U.S. source, in sufficient quantity and of comparable quality so as to render the control ineffective. …
 
  Sheleen Dumas, PRA Departmental Lead, Office of the Chief Information Officer.

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EXIM_a3

3. Commerce/BIS Seeks Comments on Voluntary Self-Disclosure of Violations of the EAR

(Source: Federal Register) [Excerpts.]
 
81 FR 81736-81737: Proposed Information Collection; Comment Request; Voluntary Self-Disclosure of Violations of the Export Administration Regulations
* AGENCY: Bureau of Industry and Security.
* ACTION: Notice. …
* DATES: Written comments must be submitted on or before January 17, 2017.
* ADDRESSES: Direct all written comments to Jennifer Jessup, Departmental Paperwork Clearance Officer, Department of Commerce, Room 6616, 14th and Constitution Avenue NW., Washington, DC 20230 (or via the Internet at JJessup@doc.gov).
* FOR FURTHER INFORMATION CONTACT: Requests for additional information or copies of the information collection instrument and instructions should be directed to Mark Crace, BIS ICB Liaison, (202) 482-4895, Mark.Crace@bis.doc.gov.
* SUPPLEMENTARY INFORMATION: …
   This collection of information is needed to detect violations of the Export Administration Act and Regulations, and determine if an investigation or prosecution is necessary and to reach a settlement with violators. Voluntary self-disclosure of EAR violations strengthens BIS’s enforcement efforts by allowing BIS to conduct investigations of the disclosed incidents faster than would be the case if BIS had to detect the violations without such disclosures. BIS evaluates the seriousness of the violation and either
 
  (1) Informs the person making the is closure that no action is warranted;
  (2) issues a warning letter;
  (3) issues a proposed charging letter and attempts to settle the matter;
  (4) issues a charging letter if settlement is not reached; and/or
  (5) refers the matter to the U.S. Department of Justice for criminal prosecution. …
 
  Sheleen Dumas, PRA Departmental Lead, Office of the Chief Information Officer.

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EXIM_a4

4. DHS/CBP Seeks Comments on Form 226, Record of Vessel Foreign Repair or Equipment Purchase

(Source: Federal Register) [Excerpts.]
 
81 FR 81789: Agency Information Collection Activities: Record of Vessel Foreign Repair or Equipment Purchase
* AGENCY: U.S. Customs and Border Protection, Department of Homeland Security.
* ACTION: 30-Day notice and request for comments; extension of an existing collection of information. …
* DATES: Written comments should be received on or before December 19, 2016 to be assured of consideration.
* ADDRESSES: Interested persons are invited to submit written comments on this proposed information collection to the Office of Information and Regulatory Affairs, Office of Management and Budget. Comments should be addressed to the OMB Desk Officer for Customs and Border Protection, Department of Homeland Security, and sent via electronic mail to oira_submission@omb.eop.gov or faxed to (202) 395-5806.
* FOR FURTHER INFORMATION CONTACT: Requests for additional information should be directed to Paperwork Reduction Act Officer, U.S. Customs and Border Protection, Regulations and Rulings, Office of Trade, 90 K Street NE., 10th Floor, Washington, DC 20229-1177, or via email (CBP_PRA@cbp.dhs.gov). Please note contact information provided here is solely for questions regarding this notice. Individuals seeking information about other CBP programs please contact the CBP National Customer Service Center at 877-227-5511, (TTY) 1-800-877-8339, or CBP Web site. For additional help, please go here.
* SUPPLEMENTARY INFORMATION: …
  – Title: Record of Vessel Foreign Repair or Equipment Purchase.
  – Form Number: CBP Form 226.
  – Abstract: 19 U.S.C. 1466(a) provides for a 50 percent ad valorem duty assessed on a vessel master or owner for any repairs, purchases, or expenses incurred in a foreign country by a commercial vessel registered in the United States. CBP Form 226, Record of Vessel Foreign Repair or Equipment Purchase, is used by the master or owner of a vessel to declare and file entry on equipment, repairs, parts, or materials purchased for the vessel in a foreign country. This information enables CBP to assess duties on these foreign repairs, parts, or materials. CBP Form 226 is provided for by 19 CFR 4.7 and 4.14 and is accessible here. …
 
     Dated: November 14, 2016.
Seth Renkema, Branch Chief, Economic Impact Analysis Branch, U.S. Customs and Border Protection.

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OGSOTHER GOVERNMENT SOURCES

OGS_a15. Ex/Im Items Scheduled for Publication in Future Federal Register Editions
(Source: Federal Register)

* Commerce; Industry and Security Bureau; RULES; Military Aircraft, Gas Turbine Engines and Related Items License Requirements; Clarifications and Revisions [Publication Date: 21 November 2016.]

* State; RULES; International Traffic in Arms: U.S. Munitions List Categories VIII and XIX [Publication Date: 21 November 2016.]

(Editor’s note: A new edition of Bartlett’s Annotated ITAR (BITAR) will be published on Monday including the 21 November ITAR amendments.  Subscribe to the BITAR at www.FullCircleCompliance.eu.

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OGS_a37
. Commerce/Census: “Tips on How to Resolve AES Fatal Errors”

 
When a shipment is filed to the AES, a system response message is generated and indicates whether the shipment has been accepted or rejected. If the shipment is accepted, the AES filer receives an Internal Transaction Number (ITN) as confirmation. However, if the shipment is rejected, a Fatal Error notification is received.
 
To help you resolve AES Fatal Errors, here are some tips on how to correct the most frequent errors that were generated in AES for this month.
 
Fatal Error Response Code: 515
 
  – Narrative: State of Origin Unknown
  – Reason: The Export Control Classification Number (ECCN) was not reported in the correct format.
  – Resolution: The Export Control Classification Number (ECCN) must be  reported in a NANNN format, where N is a numeric character and A is an alpha character. Verify the ECCN, correct the shipment and resubmit.
 
Fatal Error Response Code: 538
 
  – Narrative: Shipping Weight Must Be Greater Than Zero For MOT
  – Reason: The Mode of Transportation Code reported was one that identifies a Vessel, Rail, Truck, or Air shipment and the Shipping Weight was not reported.
  – Resolution: When the Mode of Transportation is Vessel, Rail, Truck or Air, the Shipping Weight must be reported. Verify the Mode of Transportation and Shipping Weight, correct the shipment and resubmit.
 
For a complete list of Fatal Error Response Codes, their reasons, and resolutions, see Appendix A – Commodity Filing Response Messages.
 
It is important that AES filers correct Fatal Errors as soon as they are received in order to comply with the Foreign Trade Regulations. These errors must be corrected prior to export for shipments filed predeparture and as soon as possible for shipments filed postdeparture, but not later than five calendar days after departure.
 
For further information or questions, contact the U.S. Census Bureau’s Data Collection Branch.
 
  – Telephone: (800) 549-0595, select option 1 for AES.
  – Email: askaes@census.gov
  – Online: www.census.gov/trade

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  – The 3:00 drop-off/pick-up in the second floor lobby for Wednesday, November 23rd and Friday, November 25th is cancelled.
  – The DDTC Response Team will not be taking calls or responding to emails on Thursday and Friday, November 24th and 25th.

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OGS_a610. State/DDTC Posts Reminder on DECCS Release #1

(Source: State/DDTC)
 
Reminder, the Defense Export Control and Compliance (DECCS) Commodity Jurisdiction (CJ) application will go-live Monday, November 21st at 8AM. Click here for more information.

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OGS_a711. State/DDTC Updates Key Personnel Listing

(Source: State/DDTC)
 
The Directorate of Defense Trade Controls recently updated the Key Personnel listing to include individual contact information for the Office of Defense Trade Controls Compliance. Click here to read.

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OGS_a812. UK/BIS ECO Posts Updated Consolidated Export Control List

(Source: UK/BIS ECO)
 
The latest version of the consolidated list of strategic military and dual-use items that require export authorization can be found here.

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NWSNEWS

NWS_a113. Expeditors News: “USTR Lists GSP Items Possibly Losing Eligibility in 2016”

(Source: Expeditors News)
 
In a Federal Register Notice (FRN) published on November 16, 2016 the Office of the United States Trade Representative (USTR) issued a list of eleven articles that could surpass statutory competitive need limitations (CNLs) under the Generalized System of Preferences (GSP) based on current statistics for 2016.
 
According to the notice, items placed on the possible CNL exemption list are items that, “exceed $110 million dollars, or an amount greater than 42 percent of the total value of U.S. imports of that product.”
 
The below items met the above criteria:
 
  – 0410.00.00 – Indonesia
  – 0714.90.10 – Ecuador
  – 1104.29.90 – Turkey
  – 2909.19.18 – Brazil
  – 2933.99.22 – India
  – 4011.20.10 – Indonesia
  – 4409.10.05 – Brazil
  – 6801.00.00 – Turkey
  – 6802.99.00 – Brazil
  – 8525.80.30 – Thailand
  – 9001.50.00 – Thailand
 
The final list of items excluded from GSP duty-free treatment due to exceeded CNLs for 2016 will be effective July 1, 2017. A waiver for certain items may be granted by the President before the effective date.
 
The FRN can be accessed here.

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NWS_a2
14. ST&R Trade Report: “Dates and Deadlines: Classification, Import Restrictions, Export Promotion”

 
Following are highlights of regulatory effective dates and deadlines and federal agency meetings coming up in the next week.
 
  – Nov 22: deadline for comments to ITC on potential IPR import restrictions on table saws
  – Nov 25: deadline for nominations to new export promotion working group 

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NWS_a3
15. ST&R Trade Report: “Suspension of Restrictions on Exports to Two ZTE Entities Extended”

 
The Bureau of Industry and Security has extended from Nov. 28 to Feb. 27 the expiration date of a temporary general license allowing exports of goods subject to the Export Administration Regulations from the U.S. to ZTE Corporation (Zhongxing Telecommunications Equipment Corporation) and ZTE Kangxun Telecommunications Ltd.
 
Restrictions on such exports had been imposed March 8 when BIS placed these entities (and two others) on the Entity List following its determination that they were involved in a scheme to establish, control, and use a series of shell companies to illicitly reexport controlled items to Iran. BIS subsequently issued a temporary general license that suspended these restrictions and restored the license requirements, license review policies, and license exceptions under the EAR that applied prior to March 8 to exports, reexports, and transfers (in-country) to these two entities. BIS has said that this license may be renewed if it determines that these entities are timely performing their undertakings to the U.S. government and otherwise cooperating in resolving the matter.
 
For the other two entities (Beijing 8-Star and ZTE Parsian) there continues to be a license requirement for all items subject to the EAR and a license review policy of presumption of denial. The license requirement applies to any transaction in which items are to be exported, reexported, or transferred (in-country) to either of these entities or in which they act as purchaser, intermediate consignee, ultimate consignee or end-user. In addition, no license exceptions are available for exports, reexports or transfers (in-country) to these entities.
 
Click here to access a list of frequently-asked questions about these restrictions and their impact.

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COMMCOMMENTARY

COMM_a1
16. G. Barraco: “Even E-commerce Giants Lack Export Control Processes”

(Source: Global Trade, 10 Nov 2016)
 
* Author:
Gary M. Barraco, Director, Global Product Marketing, Amber Road.
 
Amazon.com
has dominated the ecommerce industry since its humble beginnings in 1995 as an online reseller of books. In its first two months in business, it received orders from customers in all 50 U.S. states and 45 countries with sales up to $20,000 per week. Today, the company offers over 183 million products with newer endeavors like music, groceries, and apparel serving more than 224 million customers.
 
Amazon has an estimated to 65 million U.S. Prime members, more than double what it had two years ago and the product offerings have grown well beyond just books. In 2017, the marketplace’s apparel sales are expected to top Macy’s as the biggest U.S. clothing seller. Then there’s the latest announcement in October about plans to build convenience stores and curbside pickup locations for prepared foods.

Incredible growth like this doesn’t come without its ups and downs. In 2014, 37 percent of Amazon’s sales came from international markets but rather than go up, this number has declined in recent years. This has left investors wondering what the market share will be in the future. Amazon admits it’s improperly equipped for crossborder transactions and is diligently working to fix those issues. But the same problems plaguing many ecommerce retailers have worsened, keeping these companies falling short of their capabilities.
 
To prepare for the impending growth through ecommerce channels, retailers must understand their customers’ demand for convenience and remove any obstacles from cross-border commerce. At a recent conference, I was approached by a major footwear manufacturer expressing concerns about B2B shipments into South America because they lack a robust process for import regulation compliance. The obstacles include an ever-changing global trade environment, varying country tariffs, and the accurate classification of products. It’s imperative to maintain timely access to global trade information, master product classification, and comprehensively calculate landed costs at the time of order entry to address these challenges.
 
As ecommerce continues to boom, shipping to customers in more countries complicates the export compliance challenges and increases regulatory risk. Many exporters will struggle to effectively determine license requirements, perform export compliance checks, and generate international trade documents.

Manually conducting a search for license requirements, especially those of foreign governments and agencies, can be time consuming. But just as Amazon experienced, running afoul of export regulations can result in significant fines, criminal penalties and potential loss of export privileges.
 
For the fourth time in as many months, U.S. aviation safety regulators have proposed a fine on Amazon.com Inc. for allegedly shipping hazardous materials by aircraft. According to the Federal Aviation Administration, in August 2015, FedEx workers at a sorting facility in Cary, Illinois, discovered a leaking package that held two 14-ounce bottles of a flammable, ethanol-based hair tonic. The FAA alleges that the shipment wasn’t packaged or marked properly to show it contained hazardous material and shipping papers didn’t provide required details, including emergency response information.
Early this year, regulators in the U.K. charged Amazon with similar violations including an attempt to ship lithium-ion batteries on passenger aircraft that are barred from carrying the batteries.
 
Automation and trade content is required to ensure compliance. Once identified, exporters have the responsibility to generate and transmit forms to their freight forwarders, customers, and appropriate government authorities, and retain audit history. Whether a global enterprise-sized company or SMB, there are export management solutions that can help.
 
There is clearly a large market opportunity associated with global ecommerce. Companies must address several challenges to make strides and grow through this channel. Retailers, consumer products companies, 3PLs, ecommerce marketplaces, and others need to create a comprehensive plan, which includes partnering with a solution provider experienced in global trade regulations and practices.

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COMM_a2
17. J. Reeves & T. Ficaretta: “New ATF Form 4473 Goes Into Effect on January 16, 2017”

(Source: R/D Alert)
 
* Authors: Johanna Reeves, Esq., 202-715-9941, jreeves@reevesdola.com; and Teresa Ficaretta, Esq.,202-715-9183, tficaretta@reevesdola.com. Both of Reeves & Dola LLP.
 
Today the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) announced that federal firearms licensees (FFLs) must begin using a new Form 4473 (Firearms Transaction Record) on January 16, 2017. FFLs are required to complete the Form 4473 prior to transferring firearms to unlicensed purchasers.

The most significant change to the form is a requirement for the seller to certify the Form 4473 was completed at the licensed premises. The remainder of the changes are technical and clarifying amendments incorporating previous ATF policies.

Previous editions of the form will be obsolete after January 15, 2017. It is important for FFLs to begin using the new form on January 16, 2016, as ATF may take enforcement action against any FFL who uses obsolete versions of the Form 4473.

The full text of the ATF notice is accessible on ATF’s website. 

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COMM_a3
18. T. Feddo, J. Burnett & J.M. Waite: “Previewing Trade Policy in the Trump Administration, Part 2: China”

(Source: Alston & Bird LLP)
 
* Authors: Thomas Feddo, Esq., thomas.feddo@alston.com, 202-239-3521; James Burnett, Esq., james.burnett@alston.com, 202-239-3364; and Jason M. Waite, Esq., jason.waite@alston.com, 202-239-3455. All of Alston & Bird LLP.
 
Throughout Donald Trump’s campaign, a prominent theme was the candidate’s willingness to address perceived shortcomings in the United States’ trade policies and dealings with foreign countries. These reforms, should they come to pass, would have significant impact on U.S. trade relations and are likely to invite legal challenges at the World Trade Organization (WTO) and under other agreements. For companies engaged in international trade activities, Trump’s proposals have the potential to disrupt global supply chains, investment decisions and business operations in multiple markets.
 
He also threatened new tariffs against China and, if necessary, withdrawal from the WTO if China did not agree.
 
In the second of a three-part series, we analyze the Trump Administration’s potential China policy. Part 1 explored current trade agreements. Part 3 will discuss sanctions regimes on Iran, Cuba and Russia.
 
Currency Manipulation
 
Trump has pledged to act within his first 100 days in office to “instruct the Treasury Secretary to label China a currency manipulator.” Currently, executive authority regarding currency manipulation is governed by the Trade Facilitation and Trade Enforcement Act of 2015 (TFTEA), which introduced new “intensified evaluation provisions” to the currency policies of major U.S. trading partners.
 
The TFTEA reformed reporting and analysis requirements of the Omnibus Trade and Competitiveness Act of 1988. The 1988 Act mandated an annual analysis by Treasury, in consultation with the International Monetary Fund (IMF), to “consider whether countries manipulate the rate of exchange between their currency and the United States dollar for purposes of preventing effective balance of payments adjustments or gaining unfair competitive advantage in international trade.”
 
The TFTEA reforms now require that Treasury undertake an enhanced analysis of exchange rates and externally oriented policies for each major trading partner that has:
 
  (1) a significant bilateral trade surplus with the U.S.;
  (2) a material current account surplus; and
  (3) engaged in persistent one-sided intervention in the foreign exchange market.
 
Treasury has created a “Monitoring List” of major trading partners that merit attention based on an analysis of the three criteria. Specifically, an economy is added to the Monitoring List when it meets two of the three criteria. Once added, an economy will remain on the Monitoring List for at least two consecutive reports to help ensure that any improvements in performance versus the criteria are durable, not due to temporary one-o factors. Six major trading partners of the U.S. are included on the Monitoring List in the most recent report: China, Japan, South Korea, Taiwan, Germany and Switzerland. Critically, in the biannual reports since the TFTEA became law, Treasury has found that no trading partner has met all three criteria specified in law.
 
Treasury has determined the following thresholds for the three criteria for enhanced analysis specified in the TFTEA:
 
  (1) a significant bilateral trade surplus with the U.S. larger than $20 billion;
  (2) a material current account surplus larger than 3 percent of GDP; and
  (3) persistent, one-sided intervention, including net purchases of foreign currency, conducted repeatedly, totaling more than 2 percent of an economy’s GDP over a 12-month period. Again, no economy has yet satisfied all three criteria.
 
In its October 2016 report, the Treasury noted that U.S. Financial diplomacy has secured important commitments in recent years regarding exchange rate policy from G-7 and G-20 members. In particular, the G-7 has committed to orient fiscal and monetary policies toward domestic objectives using domestic instruments and to not target exchange rates. The G-20 has committed to refrain from competitive devaluations and to not target exchange rates for competitive purposes. This year, G-20 members also agreed to consult closely on exchange markets-an important component of G-7 communiques in the past, but never before included as a G-20 commitment. Further, the IMF has improved the exchange rate analysis in its bilateral and multilateral reports, and Treasury is working with the IMF to further strengthen this analysis.
 
The TFTEA also mandates that the President create an Advisory Committee on International Exchange Rate Policy to provide advice to the Secretary of the Treasury on the impact of international exchange rates and financial policies on the economy of the U.S. Pursuant to the TFTEA, the Advisory Committee will be composed of nine members, with three appointed by the President, three by the president pro tempore of the Senate and three by the Speaker of the House. Treasury has led a charter for the Advisory Committee in accordance with the Federal Advisory Committee Act.
 
The TFTEA does not provide the President with direct authority to label a country as a “currency manipulator” absent a finding via the Treasury, nor does it authorize the imposition of tariffs or taxes as a remedy if such a finding is made. Instead, following a finding by Treasury of manipulation that confers an unfair trade advantage, the TFTEA instructs the Treasury to consult in “enhanced bilateral engagement” with a country to seek changes to relevant economic policies and eliminate currency undervaluation. After a year of such engagement, if the Treasury finds that consultations have failed to resolve the undervaluation, then the Act authorizes the President to take one or more of the following measures:
 
  (A) Prohibit the Overseas Private Insurance Corporation from approving any new financing [for projects in the named country].
  (B) … Prohibit the Federal Government from procuring, or entering into any contract for the procurement of, goods or services from that country….
  (C) Instruct the United States Executive Director of the [IMF] to call for additional rigorous surveillance of the macroeconomic and exchange rate policies of that country and, as appropriate, formal consultations on findings of currency manipulation.
  (D) Instruct the United States Trade Representative to take into account, in consultation with the Secretary, in assessing whether to enter into a bilateral or regional trade agreement with that country or to initiate or participate in negotiations with respect to a bilateral or regional trade agreement with that country, the extent to which that country has failed to adopt appropriate policies to correct the undervaluation and surpluses. …
 
Essentially, this provision would bar the inclusion of the country in a U.S. free trade agreement negotiation.
 
The limited authority in the TFTEA reduces the flexibility of the incoming Trump Administration regarding Chinese currency policy. The next report on currency policies of major trading partners by the Treasury is due in April 2017. We anticipate that the Advisory Committee and Congress may seek to pressure Treasury’s international economic staff regarding their findings, but the legal criteria are clear. Additionally, current global macro trends indicate that major economies, including China, have throughout 2016 been seeking to prevent depreciation of their currencies, and such efforts would not lend themselves to a finding of currency manipulation that favors exports.
 
Chinese currency policy, however, remains an issue that has bipartisan support in Congress for greater U.S. action. Democratic Senators Chuck Schumer (NY) and Debbie Stabenow (MI) are among the most vocal critics of Chinese currency policy, and this issue could provide one potential common ground between congressional Democrats and the Trump Administration. Separate from Treasury actions, we also anticipate the use of the private right of action under Section 301 of the Trade Act of 1974 by aggrieved U.S. industries, particularly steel, to seek an investigation by the U.S. Trade Representative (USTR) on the subsidy e ect of Chinese currency.
 
WTO Cases and Other Legal Action Against China
 
Trump has pledged to “instruct the U.S. Trade Representative to bring trade cases against China, both in this country and at the WTO.” Trump’s campaign platform alleged that “China’s unfair subsidy behavior is prohibited by the terms of its entrance to the WTO.”
 
The Obama Administration filed 14 WTO disputes against Chinese trade practices from 2009 to 2016, and the USTR’s enforcement staff and office of general counsel are well-positioned to initiate new cases, provided there is substantial industry support and participation in the lengthy processes involved with bringing such high-level disputes. We anticipate that the Trump Administration will consider filing cases regarding state support for Chinese steel producers as well as China’s use of its antimonopoly law as leverage in IP licensing disputes between Chinese companies and U.S. patent holders. Such cases remain highly dependent on the willingness of U.S. companies to provide proprietary information and endure exposure to possible retaliation in the Chinese market.
 
Trump has also stated that he would “use every lawful presidential power to remedy trade disputes if China does not stop its illegal activities, including its theft of American trade secrets-including the application of tariffs consistent with Section[s] 201 and 301 of the Trade Act of 1974 and Section 232 of the Trade Expansion Act of 1962.”
 
Section 301 of Chapter 1 of Title III of the Trade Act of 1974 concerns investigations by the Office of the USTR into allegations that foreign countries are denying benefits to the U.S. under trade agreements or are otherwise engaged in unjustifiable, unreasonable or discriminatory acts that burden or restrict U.S. commerce. In general, the USTR may initiate investigations upon petition by any interested person or upon its own initiative. The key question at the outset of the Trump Administration will concern the likelihood that the new USTR will self-initiate such investigations regarding either the provision of state subsidies in Chinese industry or the denial of market access to various U.S. industries that may violate China’s WTO obligations.
 
Section 301 does authorize retaliatory actions, including retaliatory tariffs in the same amount as damages suffered by U.S. industry from the actions of a foreign trading partner. The relationship between Section 301 and the WTO is critical to determinations of action since the WTO has ruled that discriminatory actions that do not follow from an authorization provided by a WTO dispute ruling are in violation of the WTO agreements. Nevertheless, the Trump Administration could pursue action following a USTR investigation and consultation with Congress that could erect tariffs on Chinese imports for the duration of a Chinese legal challenge of those actions at the WTO.
 
Under Section 232 of the Trade Expansion Act of 1962, the Secretary of Commerce conducts investigations to determine whether articles are being imported into the U.S. in such quantities or under such circumstances as to threaten to impair national security. On the basis of a report by the secretary, the President has authority to take action to “adjust the imports” of the article in question. Conceivably, such adjustments may include the imposition of temporary duties, quotas, tariff rate quotas or outright importation prohibitions. Use of a Section 232 action by the Trump Administration would likely engender a WTO challenge centered on the national security exemption of the GATT (Article XXI), which has never been the subject of a WTO dispute.
 
China Nonmarket Economy Status
 
Regardless of the December deadline for WTO members to recognize China as a market economy for the purpose of trade remedy investigations, the Trump Administration will likely continue U.S. policy treating all Chinese trade remedy matters on a case-by-case basis and deny market economy status generally to the Chinese economy.

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

COMM_a4
19. R.C. Burns: “Guilty As Charged”

(Source:
Export Law Blog
. Reprinted by permission.)
 
* Author: R. Clifton Burns, Esq., Bryan Cave LLP, Wash DC, 202-624-3949,
Clif.Burns@bryancave.com
)
 
Oh dear. Apparently His Rotundity, the Dear Leader of North Korea, is annoyed that people that he can’t throw into internment camps and execute are mentioning that his aspirations to become a triathelete have been sabotaged by third and fourth helpings of yangnyeom tongdak. The chief offenders appear to be Internauts in China that refer to Kim Jong Un as Jin San Pang which, apparently, translates as – snicker, snicker – Kim Fatty the Third.
 
This blog, following the long-standing tradition of ridiculing the appearance of national enemies, has been on the forefront of suggesting that the Nork Dictator might benefit by a few less cigarettes and a few more jogs around the Chosŏn’gul: 55

관저
, his main palace. But we haven’t gone quite as far as Jin San Pang. Even with our post titled Fat Man Sanctioned Over Little Boy
 
Jin San Pang, aka His Obesity Kim Jong Un, has asked China to censor the use of Jin San Pang on Chinese websites. In the grand tradition of the Chinese government, they have both completely censored the offensive, if accurate, nickname Jin San Pang, at the same time that they have denied censoring the name and expressed shock and profound disappointment that anyone would dare to suggest that they would tamper with free speech on the Internet.

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

TrainingEX/IM TRAINING EVENTS & CONFERENCES

TE_a220
. 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 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

* Nov 29: Webinar; “
Beyond Antidumping Duties: Other Remedies for Unfair Trade
;”
Sandler, Travis & Rosenberg, P.A.;
webinarorganizers@strtrade.com 

* 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 7: Wash DC; “
OFAC 2016 Fall Symposium
;” Office of Foreign Assets Control

* 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 8: Webinar; “Legal Framework of Importing, Exporting and Foreign Investment;” Intredex, Inc.

* 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 11: London UK; “
Control List Classification – Military
;” UK/BIS Export Control Organisation;
denise.carter@bis.gsi.gov.uk 

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


* Jan 18: Bristol UK; “
Intermediate Seminar
;” UK/BIS Export Control Organisation;
denise.carter@bis.gsi.gov.uk 
* Jan 19: Bristol UK; “
Beginners Workshop
;” UK/BIS Export Control Organisation;
denise.carter@bis.gsi.gov.uk 
* Jan 19: Bristol UK; “
Making Better License Applications
;” UK/BIS Export Control Organisation;
denise.carter@bis.gsi.gov.uk 
* Jan 19: Bristol UK; “
Control List Classification – Combined Dual Use and Military
;” UK/BIS Export Control Organisation;
denise.carter@bis.gsi.gov.uk 

* 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 6: Manchester UK; “
Nuclear Course
;” UK/BIS Export Control Organisation;
denise.carter@bis.gsi.gov.uk 

* 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

* Feb 21: San Diego CA; “AES Compliance Seminar;” Dept. of Commerce/Census

* Feb 22: Newcastle UK; “
Intermediate Seminar
;” UK/BIS Export Control Organisation;
denise.carter@bis.gsi.gov.uk 

* Feb 23: Long Beach CA; “AES Compliance Seminar;” Dept. of Commerce/Census

* Feb 23: Newcastle UK; “
Beginners Workshop
;” UK/BIS Export Control Organisation;
denise.carter@bis.gsi.gov.uk 
* Feb 23: Newcastle UK; “
Making Better License Applications
;” UK/BIS Export Control Organisation;
denise.carter@bis.gsi.gov.uk 
* Feb 23: Newcastle UK; “
Control List Classification – Combined Dual Use and Military
;” UK/BIS Export Control Organisation;
denise.carter@bis.gsi.gov.uk 

* 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 8: London UK; “
Control List Classification – Combined Dual Use and Military
;” UK/BIS Export Control Organisation;
denise.carter@bis.gsi.gov.uk 
* Mar 9: London UK; “
Making Better License Applications
;” UK/BIS Export Control Organisation;
denise.carter@bis.gsi.gov.uk 

* 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 15: Birmingham UK; “
Intermediate Seminar
;” UK/BIS Export Control Organisation;
denise.carter@bis.gsi.gov.uk 

* Mar 15: Miami FL; “AES Compliance Seminar in Spanish;” Dept. of Commerce/Census

* Mar 16: Miami FL; “AES Compliance Seminar;” Dept. of Commerce/Census
* Mar 16: Birmingham UK; “
Beginners Workshop
;” UK/BIS Export Control Organisation;
denise.carter@bis.gsi.gov.uk 
* Mar 16: Birmingham UK; “
Making Better License Applications
;” UK/BIS Export Control Organisation;
denise.carter@bis.gsi.gov.uk 
* Mar 16: Birmingham UK; “
Control List Classification – Combined Dual Use and Military
;” UK/BIS Export Control Organisation;
denise.carter@bis.gsi.gov.uk 

* 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


* Apr 18: Milwaukee WI; “AES Compliance Seminar;” Dept. of Commerce/Census
* Apr 26: London UK; “
Intermediate Seminar
;” UK/BIS Export Control Organisation;
denise.carter@bis.gsi.gov.uk 
* Apr 27: London UK; “
Beginners Workshop
;” UK/BIS Export Control Organisation;
denise.carter@bis.gsi.gov.uk 
* Apr 27: London UK; “
Making Better License Applications
;” UK/BIS Export Control Organisation;
denise.carter@bis.gsi.gov.uk 

* May 1-4: Las Vegas; “
EAR Export Controls / ITAR Defense Trade Controls Seminar
;” 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 10: London UK; “
Control List Classification – Military
;” UK/BIS Export Control Organisation;
denise.carter@bis.gsi.gov.uk 
* May 11: London UK; “
Making Better License Applications
;” UK/BIS Export Control Organisation;
denise.carter@bis.gsi.gov.uk 

* 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

* May 17: Southampton UK; “
Intermediate Seminar
;” UK/BIS Export Control Organisation;
denise.carter@bis.gsi.gov.uk 
* May 18: Southampton UK; “
Beginners Workshop
;” UK/BIS Export Control Organisation;
denise.carter@bis.gsi.gov.uk 

* May 23: Tampa FL; “AES Compliance Seminar;” Dept. of Commerce/Census

* Jun 5-8: Wash DC; “
United States Export Control (EAR/OFAC/ITAR) Seminar
;” ECTI;
jessica@learnexportcompliance.com
; 540-433-3977

* Jun 7: London UK; “
Control List Classification – Combined Dual Use and Military
;” UK/BIS Export Control Organisation;
denise.carter@bis.gsi.gov.uk 
* Jul 10-12; Baltimore MD; “
2017 Summer Back to Basics Conference
;” Society for International Affairs

* 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

* Jun 13: Philadelphia PA; “AES Compliance Seminar;” Dept. of Commerce/Census
* Jun 14: Kegsworth, Derby UK; “
Intermediate Seminar
;” UK/BIS Export Control Organisation;
denise.carter@bis.gsi.gov.uk 
* Jun 15: Kegsworth, Derby UK; “
Beginners Workshop
;” UK/BIS Export Control Organisation;
denise.carter@bis.gsi.gov.uk 
* Jun 15: Kegsworth, Derby UK; “
Making Better License Applications
;” UK/BIS Export Control Organisation;
denise.carter@bis.gsi.gov.uk 
* Jun 15: Kegsworth, Derby UK; “
Control List Classification – Combined Dual Use and Military
;” UK/BIS Export Control Organisation;
denise.carter@bis.gsi.gov.uk 

* Sep 4-9: Galveston TX; “ICPA Conference at Sea;”

International Compliance Professionals Association;
wizard@icpainc.org

* Sep 5: Nashville TN; “AES Compliance Seminar;” Dept. of Commerce/Census
* Oct 12: Boston MA; “AES Compliance Seminar;” Dept. of Commerce/Census

* Oct 23-24: Arlington VA; “
2017 Fall Advanced Conference
;” Society for International Affairs

* Nov 7: Norfolk, VA; “AES Compliance Seminar;” Dept. of Commerce/Census

* Dec 5: San Juan PR; “AES Compliance Seminar in Spanish;” Dept. of Commerce/Census
* Dec 7: Laredo, TX; “AES Compliance Seminar in Spanish;” Dept. of Commerce/Census

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

ENEDITOR’S NOTES

EN_a121. Bartlett’s Unfamiliar Quotations

(Source: Editor)

* Peter Drucker (Peter Ferdinand Drucker, 19 Nov 1909 – 11 Nov 2005, was an Austrian-born American management consultant, educator, and author, whose writings contributed to the philosophical and practical foundations of the modern business corporation.)
  – “Never mind your happiness; do your duty.”
 
* Billy Sunday  (William Ashley “Billy” Sunday, 19 Nov 1862 – 6 Nov 1935, was an American athlete who, after being a popular outfielder in baseball’s National League during the 1880s, became the most celebrated and influential American evangelist during the first two decades of the 20th century.)
  – “More men fail through lack of purpose than lack of talent.”
 
* James A. Garfield (James Abram Garfield, 19 Nov 1831 – 19 Sep 1881, was the 20th President of the United States, serving from March 4, 1881, until his assassination later that year.)
  – “A pound of pluck is worth a ton of luck.”
 
Friday funnies:

Two hunters from Minnesota get a pilot to fly them to Canada to hunt moose. They bag four. As they start loading the plane for the return trip, the pilot tells them the plane can take only two of the moose. The lads object strongly. “Last year we shot four, and the pilot let us take them all four on board, and he had the same plane as yours.” Reluctantly, the pilot gives in and lets them load all four. However, even with full power, the little plane can’t handle the load and crashes a few moments after takeoff.  Climbing out of the wreckage, one Minnesotan asks the other, “Any idea where we are?” The second replies, “Yah, I tink we pretty close to where we crashed last year.”
  — Jerry Olson, Spokane, Washington
 
This week’s blonde joke:

A blonde drove down the interstate to catch her flight.  As she neared the airport exit, she saw a sign that read “Airport Left,” so she said “Darn!” and turned around and headed back home.
  — Peggy Robinson, Trenton, Missouri 

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

EN_a222. 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 (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. 
 
*
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 (effective 31 Dec 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 21 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 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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