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16-1208 Thursday “The Daily Bugle”

16-1208 Thursday “Daily Bugle”

Thursday, 8 December 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

[No items of interest noted today.] 

  1. Ex/Im Items Scheduled for Publication in Future Federal Register Editions 
  2. Commerce/BIS: (No new postings.) 
  3. State/DDTC: (No new postings.) 
  1. Defense News: “France, Australia Reach Deal to Share Secrets on Defense Programs”
  2. Expeditors News: “CBP Hosting Reconciliation Webinars”
  3. ST&R Trade Report: “MTB Petitions Due by Dec. 12; No Late Filings to be Accepted”
  4. ST&R Trade Report: “Tariff Schedule Amended to Reflect HS Changes, Correct Technical Errors”
  1. R.C. Burns: “Economic Sanctions and War”
  1. ECS Presents ITAR/EAR Boot Camp on 26-27 Jan in Orlando FL 
  2. SIA’s 2016 Volunteer of the Year and USG Speaker of the Year Luncheon, 17 Jan in Arlington VA, is Open for Registration 
  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 (5 Dec 2016), FACR/OFAC (4 Nov 2016), FTR (15 May 2015), HTSUS (30 Aug 2016), ITAR (5 Dec 2016)

EXIMEX/IM ITEMS FROM TODAY’S FEDERAL REGISTER

EXIM_a1


[No items of interest noted today.]
 

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OGSOTHER GOVERNMENT SOURCES

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

* Justice; Alcohol, Tobacco, Firearms, and Explosives Bureau; NOTICES; Agency Information Collection Activities; Proposals, Submissions, and Approvals: Application for Registration of Firearms Acquired by Certain Government Entities [Publication Date: 9 December 2016.]

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NWSNEWS

 
France and Australia yesterday signed a treaty for sharing classified information, a bilateral agreement aimed at supporting work on the Future Submarine Program, the two countries said Thursday.
 
  “The agreement will directly support the delivery of the Future Submarine Program and will further enable greater cooperation on a range of national security matters,” the French defense ministry and Australian Attorney General’s office said in a joint statement.
 
Defense minister Jean-Yves Le Drian and Attorney General George Brandis signed the agreement, which sets out “mechanisms and safeguards to enable the sharing of classified information,” the partner nations said.
 
The agreement covers classification and information handling, recognition of personnel and facility security clearance. Responsibility is also assigned where contractors work on projects based on classified information.
 
  “This intergovernmental agreement constitutes a significant milestone in the development of a strategic partnership between France and Australia,” the nations said.
 
For Paris, the agreement with Canberra strengthens a French economic interest in the Pacific as the New Caledonia overseas territory is a major nickel producer, a French naval officer said. The pact also boosts France’s geopolitical stake in the key Asia-Pacific region, which is unusual for a European and NATO nation.
 
Australia picked DCNS in April for exclusive negotiations for design and construction of the Future Submarine Program, worth AU$50 billion (US$37 billion) over 50 years. The French state-owned company is expected to win a share of some €8 billion, or US$ 8.5 billion, Reuters reported.
 
DCNS won the international tender which drew rival bids from Germany and Japan. Canberra selected Lockheed Martin as combat system integrator for the DCNS Barracuda Shortfin 1A. Thales, which holds 35 percent of DCNS, will work on the program through its Australian subsidiary.
 
Australia aims to build in Adelaide the 12 ocean-going attack submarines, which will be maintained over 50 years and support some 2,800 Australian jobs. DCNS estimates work on the Australian boats will support some 4,000 French jobs.

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NWS_a2
5. Expeditors News: “CBP Hosting Reconciliation Webinars”

(Source: Expeditors News)
 
U.S. Customs and Border Protection (CBP) Cargo Systems Messaging Service (CSMS) #16-000989 announced a webinar series regarding the transition from ACS to ACE for Reconciliation.
 
The series will consist of three webinars hosted by CBP’s Office of Trade and will allow the trade to ask questions and receive updates on the transition. The webinars will take place on the below dates:
 
* December 8, 2016 – 1:30pm EST
* December 15, 2016 – 1:30PM EST
* December 22, 2016 – 1:30PM EST
 
The CSMS as well as links to the registration for each webinar can be accessed here.

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NWS_a3
6. ST&R Trade Report: “MTB Petitions Due by Dec. 12; No Late Filings to be Accepted”

 
The International Trade Commission has issued a reminder that miscellaneous trade bill petitions seeking import tariff suspensions or reductions must be filed by 5:15 p.m. EDT Dec. 12 and that late filings will not be accepted. MTB petitions (including those revised to address deficiencies) filed on or after Dec. 13 or filed improperly will have to wait until October 2019 for another opportunity to be considered.
 
The ITC urges filers to submit their petitions as early as possible for two reasons.
 
  – The Commission’s MTB web portal will only accept completed petitions and will not accept petitions after the deadline, meaning filers need to begin the process well before the deadline.
  – The longer filers wait to submit the less likely it is that ITC staff will have enough time to find
 
any problems in their petitions, and the less time filers will have to file a new petition (the only way to make any needed amendments or corrections), before the deadline, particularly if there is a surge in the number of petitions filed late in the filing period. The ITC notes that many of the petitions filed to date have contained article descriptions that are deficient and that U.S. Customs and Border Protection may not be able to administer.
 
If you have already submitted an MTB petition, we recommend an immediate review prior to the Dec. 12 deadline.

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NWS_a4
7. ST&R Trade Report: “Tariff Schedule Amended to Reflect HS Changes, Correct Technical Errors”

 
President Obama has issued a proclamation making the following changes to the Harmonized Tariff Schedule of the U.S.
 
  – modifications to (a) reflect amendments to the International Convention on the Harmonized Commodity Description and Coding System and (b) provide for the continuation of previously proclaimed staged duty reductions under the U.S. free trade agreements with Australia, Morocco, the Dominican Republic and Central America, Oman, Peru, Korea, and Panama for goods classifiable in the amended provisions (effective with respect to goods entered or withdrawn from warehouse for consumption on or after Jan. 3, 2017)
  – corrections to technical errors in a previous proclamation modifying the HTSUS to (a) implement the duty reductions under the expanded World Trade Organization Information Technology Agreement (effective with respect to goods entered or withdrawn from warehouse for consumption on or after July 1, 2016) and (b) reflect the extension through Sept. 30, 2025, of the regional apparel program and the third-party fabric program under the African Growth and Opportunity Act (effective with respect to goods entered or withdrawn from warehouse for consumption on or after Dec. 1, 2016)
  – removal of additional U.S. Note 4 to Chapter 71 to reflect the revocation of the ban on imports of jadeite and rubies, and articles of jewelry containing jadeite and rubies, mined or extracted from Burma
 
View Document(s):

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COMMCOMMENTARY

COMM_a18. R.C. Burns: “Economic Sanctions and War”

(Source:
Export Law Blog
. Reprinted by permission.)
 
* Author: R. Clifton Burns, Esq., Bryan Cave LLP, Wash DC,
Clif.Burns@bryancave.com
, 202-508-6067)
 
Dec. 7, 2016.  As the year (and the current administration) draws to an end, there has not been much news on the export front.  So, I’m using today, which is Pearl Harbor Day, to raise the question as to whether U.S. sanctions on Japan for its aggression in China were effective at anything other than forcing the Japanese to attack the United States.  Economic sanctions are usually seen as a diplomatic alternative short of war without remembering that, at least on one occasion, many think economic sanctions may have precipitated war.
 
In 1939 the United States, concerned about Japanese aggression in China, terminated the 1911 commercial treaty with Japan, which laid the groundwork for cutting of exports to Japan. On July 31, under the authority of the Export Control Act passed earlier that month, exports of fuels, lubricant, certain metals  to Japan were prohibited.   Effective October 16 of that year, exports of scrap iron and steel to Japan were cut off.  Finally, on July 26, 1941, Roosevelt, utilizing the provisions of the Trading with the Enemy Act, froze all Japanese assets in the United States.
 
These actions had a significant impact on Japan.  An intercepted and decrypted cable between Foreign Minister Teijiro Toyoda  to Ambassador Kichisaburo Nomura on July 31 said:
 
Commercial and economic relations between Japan and third countries, led by England and the United States, are gradually becoming so horribly strained that we cannot endure it much longer. Consequently, our Empire, to save its very life, must take measures to secure the raw materials of the South Seas.
 
The economic impact of the embargo forced Japan to seize the missing resources, and the U.S. naval presence in the Pacific was seen by them as something that could hinder those plans.  That is the germ of the argument that in the case of Japan, sanctions may have provoked war rather than deterred it.  
Here’s an
article
with an opposite view.  It argues that Japanese aggression caused the sanctions.
 
I think the truth is somewhere in the middle of these two arguments. Sanctions alone did not force Japan to war.  It was probably headed down that road before the imposition of economic sanctions.  But it certainly was a factor that increased the chance of war and accelerated its onset.

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TEEX/IM TRAINING EVENTS & CONFERENCES

TE_a19
. ECS Presents ITAR/EAR Boot Camp on 26-27 Jan in Orlando FL

(Source: Suzanne Palmer, spalmer@exportcompliancesolutions.com)
 
* What: ITAR/EAR Boot Camp, Orlando, FL
* When: January 26-27. 2016
* Sponsor: Export Compliance Solutions (ECS)
* ECS Speaker Panel:  Suzanne Palmer, Mal Zerden
* Register Here or by calling 866-238-4018 or e-mail spalmer@exportcompliancesolutions.com

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TE_a210
. SIA’s 2016 Volunteer of the Year and USG Speaker of the Year Luncheon, 17 Jan in Arlington VA, is Open for Registration

(Source: Jill Garrison, jillgarrison@siaed.org)
 
* What: 2016 Volunteer of the Year and USG Speaker of the Year Luncheon
* When: Tuesday, January 17, 2017
* Where: Le Meridien Arlington, 1121 19th Street North, Arlington, VA
* Sponsor: Society for International Affairs (SIA)
* Speaker: Assistant Secretary of Commerce for Export Administration, Kevin Wolf
* Topic: Export Control Reform – Observations on where we’ve been; Insights as to where we’re going
* Register: Here or contact Jill Garrison, jillgarrison@siaed.org.

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ENEDITOR’S NOTES

EN_a111. Bartlett’s Unfamiliar Quotations

(Source: Editor)

* Joel Chandler Harris (9 Dec 1848 – 3 July 1908, was an American journalist, fiction writer, and folklorist best known for his collection of Uncle Remus stories.)
  – “Watch out when you’re getting all you want. Fattening hogs ain’t in luck.
 
* Johann Zimmermann (Johann Georg Ritter von Zimmermann, 8 Dec 1728 – 7 Oct 1795, was a Swiss philosopher, author, and physician.)
  – “A moral lesson is better expressed in short sayings than in long discourse.”

* Horace (Quintus Horatius Flaccus, 8 Dec 65 BC – 27 Nov 8 BC, was the leading Lyric poet during the time of Emperor Augustus.)


  –
“Carpe diem, quam minimum credula postero.” 
(
“Seize the day; trust tomorrow e’en as little as you may.”
– Horace, Odes 1:11.)

* Editor’s Note: Reader Ivan Koves, Holland & Hart, points out that yesterday’s birthday quote from Eli Wallach,
“When you have to shoot, shoot, don’t talk” was not from Wallach as Calvera in
The Magnificent Seven, but was from Wallach as Tuco in
The Good, the Bad and Ugly.  Watch Tuco deliver the famous line at
https://www.youtube.com/watch?v=jYGRIGwR7Uo. Thanks, Ivan.  Such are the dangers of Wikipedia.

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EN_a212. 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: 5 Dec 2016: 81 FR 87426-87427: Amendment to the Export Administration Regulations: Removal of Semiconductor Manufacturing International Corporation From the List of Validated End-Users in the People’s Republic of China (effective 5 Dec 2016); and 81 FR 87424-87426: Amendment to the Export Administration Regulations: Removal of Special Iraq Reconstruction License (effective 4 Jan 2017) 

  
*
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. 
  – Last change per Presidential Proclamation: 81 FR 87401-87407 (Dec. 2, 2016): Proclamation 9549 of 1 Dec 2016.
  – 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: 5 Dec 2016 (effective 5 Dec 2016): 81 FR 87427-87430: Corrections & Additions to ITAR Parts 120, 121, 122, 124, 126 and 127
  – The only available fully updated copy (latest edition 5 Dec 2016) of the ITAR with all amendments is contained in Bartlett’s Annotated ITAR (“BITAR”), by James E. Bartlett III.  The BITAR contains all ITAR amendments to date, footnotes to amendments that will take on 31 December 2016, plus a large Index, 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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