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16-1212 Monday “The Daily Bugle”

16-1212 Monday “Daily Bugle”

Monday, 12 December 2016

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The Daily Bugle is a free daily newsletter from Full Circle Compliance, containing changes to export/import regulations (ATF, Customs, NISPOM, EAR, FACR/OFAC, FTR/AES, HTSUS, and ITAR), plus news and events.  Subscribe 
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  1. DHS/CBP Amends Regulations Concerning Electronic Notice of Liquidation 
  2. DHS/CBP Posts New Effective Date for ACE as Sole CBP-Authorized EDI System for Processing Electronic Drawback and Duty Deferral Entry and Entry Summary Filings 
  3. DHS/CBP Modifies and Clarifies NCAP Tests Regarding Post-Summary Corrections and Periodic Monthly Statements 
  4. DHS/CBP Modifies NCAP Test Regarding Reconciliation and Transition from ACS to ACE 
  1. Ex/Im Items Scheduled for Publication in Future Federal Register Editions 
  2. Commerce/BIS: (No new postings.) 
  3. State/DDTC Invites Industry Users that Leverage Batch Submission Process to Schedule Conference Call 
  4. EU Posts Information Privacy Agreement With U.S. Concerning Criminal Offences 
  5. EU Posts Correction Concerning Restrictive Measures Against Syria 
  1. Next Big Future: “US Congressional Report Warns That China Is Getting Even Better at Stealing US Military Technology and Secrets” 
  2. ScoopWhoop: “US Grants The Unique ‘Major Defence Partner’ Status To India. Here’s What It Means” 
  3. Washington Post: “U.S.-Iranian Man Faces Sentencing in Case That Revealed Secret Database of Americans’ Calls” 
  1. Monday List of Ex/Im Job Openings: 121 Jobs Posted 
  1. Bartlett’s Unfamiliar Quotations 
  2. Are Your Copies of Regulations Up to Date? Latest Changes: ATF (15 Jan 2016), Customs (12 Dec 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_a11. DHS/CBP Amends Regulations Concerning Electronic Notice of Liquidation

 
81 FR 890375-89381: Electronic Notice of Liquidation
* AGENCY: U.S. Customs and Border Protection, HDS; Department of the Treasury.
* ACTION: Final rule.
* DATES: This final rule is effective on January 14, 2017.
* FOR FURTHER INFORMATION CONTACT: Virginia McPherson, ACE Business Office, Office of Trade, virginia.h.mcpherson@cbp.dhs.gov. Randy Mitchell, Trade Policy and Programs, Office of Trade, randy.mitchell@cbp.dhs.gov.
* SUPPLEMENTARY INFORMATION: …
   Currently, notices of liquidation for formal entry, including notices of liquidation by operation of law, are physically posted in the customhouse or station at the port of entry on CBP Form 4333, and this physical posting is deemed the legal evidence of liquidation. When extension or suspension of liquidation occurs, official notices are mailed on an appropriately modified CBP Form 4333-A.
   On October 14, 2016, CBP published a notice in the Federal Register (81 FR 71019) proposing to amend title 19 of the Code of Federal Regulations (“19 CFR”) to reflect that official notice of liquidation, suspension of liquidation, and extension of liquidation would be posted electronically on the CBP Web site rather than being physically posted at the customhouses or stations or mailed. CBP also proposed eliminating the mailed paper courtesy notices of liquidation but stated its intention to continue sending electronic courtesy notices of liquidation, extension, and suspension via a CBP-authorized electronic data interchange system to the electronic filer when entries liquidate or are extended or suspended. The proposed amendments were intended to modernize, centralize, and facilitate the method by which importers are provided official notice of liquidation, extension, and suspension. Additionally, CBP proposed certain technical corrections to sections 159.11(a), 159.12(f), and 173.4a of 19 CFR to update the regulatory language to reflect statutory changes to sections 504 and 520 of the Tariff Act of 1930, as amended (19 U.S.C. 1504 and 1520). The notice of proposed rulemaking requested public comments. The public comment period closed on November 14, 2016. …
   Accordingly, after review of the comments and further consideration, CBP has decided to adopt as final, with the changes discussed above, the proposed rule published in the Federal Register (81 FR 71019) on October 14, 2016. Specifically, the final rule contains the following changes based on the comments:
  – Clarification in Sec. 159.9(c)(1), which pertains to the date of liquidation, that notices of liquidation will be maintained on www.cbp.gov for a minimum of 15 months.
  – Clarification in Sec. 159.9(c)(2)(i), which pertains to entries liquidated by operation of law, that notice of such will be posted when CBP determines that an entry has liquidated by operation of law.
  – Clarification in Sec. 159.9(c)(2)(ii) by making editorial changes for ease of reading.
  – Clarification in Sec. 159.9(d), which pertains to courtesy notice of liquidation, that CBP will endeavor to provide courtesy notice to the entry filer or its agent and the surety on an entry.
  – Clarification in Sec. 159.12(b), which pertains to notices of extension, that notices of extension will be maintained on www.cbp.gov for a minimum of 15 months and that courtesy notice will be sent to the entry filer or its agent and the surety on an entry.
  – Clarification in Sec. 159.12(c), which pertains to notices of suspension, that notices of suspension will be maintained on www.cbp.gov for a minimum of 15 months and that courtesy notice will be sent to the entry filer or its agent and the surety on an entry.
  – Clarification in Sec. 159.12(d)(2), which pertains to additional extensions at the importer’s request, that courtesy notice will be sent to the entry filer or its agent and the surety on an entry. …
 
R. Gil Kerlikowske, Commissioner, U.S. Customs and Border Protection.
Approved: December 6, 2016.
Timothy E. Skud, Deputy Assistant Secretary of the Treasury.
* * * * * * * * * * * * * * * * * * * *

EXIM_a22. DHS/CBP Posts New Effective Date for ACE as Sole CBP-Authorized EDI System for Processing Electronic Drawback and Duty Deferral Entry and Entry Summary Filings

(Source: Federal Register) [Excerpts.]
 
81 FR 89486: Effective Date for the Automated Commercial Environment (ACE) Becoming the Sole CBP-Authorized Electronic Data Interchange (EDI) System for Processing Electronic Drawback and Duty Deferral Entry and Entry Summary Filings
AGENCY: U.S. Customs and Border Protection, Department of Homeland Security.
* ACTION: General notice.
* SUMMARY: On August 30, 2016, U.S. Customs and Border Protection (CBP) published a notice in the Federal Register announcing plans to make the Automated Commercial Environment (ACE) the sole electronic data interchange (EDI) system authorized by the Commissioner of U.S. Customs and Border Protection (CBP) for processing electronic drawback and duty deferral entry and entry summary filings. The changes announced in that notice were to have been effective on October 1, 2016. On October 3, 2016, CBP published a notice in the Federal Register announcing that the effective date for the transition to ACE as the sole CBP-authorized EDI system for electronic drawback and duty deferral entry and entry summary filings would be delayed until further notice. This notice announces that the effective date for the transition will be January 14, 2017.
* DATES: Effective January 14, 2017: ACE will be the sole CBP-authorized EDI system for processing electronic drawback and duty deferral entry and entry summary filings, and ACS will no longer be a CBP-authorized EDI system for purposes of processing these filings.
* FOR FURTHER INFORMATION CONTACT: ASKACE@cbp.dhs.gov with the subject line identifier reading “ACS to ACE Drawback and Duty Deferral Entry and Entry Summary Filings transition”. …
   Dated: December 7, 2016.
R. Gil Kerlikowske, Commissioner, U.S. Customs and Border Protection.
* * * * * * * * * * * * * * * * * * * *

EXIM_a33. DHS/CBP Modifies and Clarifies NCAP Tests Regarding Post-Summary Corrections and Periodic Monthly Statements

(Source: Federal Register) [Excerpts.]
 
81 FR 89482-89485: Modification and Clarification of the National Customs Automation Program Tests Regarding Post-Summary Corrections and Periodic Monthly Statements
* AGENCY: U.S. Customs and Border Protection, Department of Homeland Security.
* ACTION: General notice.
* SUMMARY: This document announces U.S. Customs and Border Protection’s (CBP’s) plan to modify and clarify the National Customs Automation Program (NCAP) test pertaining to the processing of post-summary correction (PSC) claims to entry summaries that are filed in the Automated Commercial Environment (ACE), as well as the periodic monthly statement (PMS) test. The modifications made by this notice eliminate some requirements and liberalize certain requirements needed for the filing of a PSC making it easier for importers to file a PSC for additional entry types, and allowing for additional time to make a deposit for duties, fees and taxes owed. With regard to the PMS test program, this notice announces the time at which CBP considers a PMS as paid when filers use the Automated Clearing House (ACH) debit process. Except to the extent expressly announced or modified by this document, all aspects, rules, terms and conditions announced in previous notices regarding the tests remain in effect.
* DATES: The changes made by this notice are effective January 14, 2017.
* ADDRESSES: Comments concerning these test programs may be submitted via email to Monica Crockett at ESARinfoinbox@dhs.gov with a subject line identifier reading, “Post-Summary Corrections Processing.”
* FOR FURTHER INFORMATION CONTACT: For policy-related questions, contact John Everett via email at otentrysummary@cbp.dhs.gov. For technical questions related to ABI transmissions, contact your assigned client representative. Interested parties without an assigned client representative should direct their questions to the Client Representative Branch at (703) 650-3500.
* SUPPLEMENTARY INFORMATION: …
   This document announces numerous modifications and clarifications to the PSC and PMS tests. Each modification and clarification is discussed separately below. Except to the extent expressly announced or modified by this document, all aspects, rules, terms, requirements, obligations and conditions announced in previous notices regarding the PSC and PMS tests remain in effect. …
   This notice announces that CBP will consider a PMS as paid, in the event the importer uses the Automated Clearing House (ACH) debit process, when CBP receives confirmation from the Treasury Department that funds are available and transferred to CBP from the financial institution designated by the importer for payment of the ACH debit authorization. Prior to this modification, CBP considered a PMS as paid when CBP transmitted the debit authorization to the designated financial institution. See 69 FR 5362 (February 4, 2004). This change will result in a delay of approximately two working days in the time that CBP uses to consider a PMS as paid. It is important to note that this modification applies only to importers who participate in the test program. For all other importers, the current regulation, 19 CFR 24.25(c)(4), still applies which means CBP will consider a statement as paid upon acceptance of the ACH debit authorization. …
   Dated: December 7, 2016.
Brenda B. Smith, Executive Assistant Commissioner, Office of Trade.
* * * * * * * * * * * * * * * * * * * *

EXIM_a44. DHS/CBP Modifies NCAP Test Regarding Reconciliation and Transition from ACS to ACE

(Source: Federal Register) [Excerpts.]
 
81 FR 89486-89490: Modification of the National Customs Automation Program Test Regarding Reconciliation and Transition of the Test From the Automated Commercial System to the Automated Commercial Environment
* AGENCY: U.S. Customs and Border Protection, Department of Homeland Security.
* ACTION: General notice.
* SUMMARY: This document announces U.S. Customs and Border Protection’s (CBP’s) plan to modify the National Customs Automation Program (NCAP) test regarding reconciliation, and the transition of the test from the Automated Commercial System (ACS) to the Automated Commercial Environment (ACE). The modifications made by this notice eliminate several requirements for participation in the test, impose new data requirements, and establish the requirement that reconciliation entries be filed in ACE beginning January 14, 2017, regardless of whether the underlying entry was filed in ACS or ACE. Except to the extent expressly announced or modified by this document, all aspects, rules, terms and conditions announced in previous notices regarding the reconciliation test remain in effect.
* DATES: The changes made by this notice are effective January 14, 2017.
* ADDRESSES: Comments concerning this test program may be submitted any time during the test via email, with a subject line identifier reading, “Comment on Reconciliation test”, to OFO-RECONFOLDER@cbp.dhs.gov.
* FOR FURTHER INFORMATION CONTACT: Acenitha Kennedy, Entry Summary and Revenue Branch, Trade Policy and Programs, Office of Trade at (202) 863-6064 or acenitha.kennedy@cbp.dhs.gov.
* SUPPLEMENTARY INFORMATION: …
   This document announces that beginning January 14, 2017, all reconciliation entries must be filed in ACE regardless of whether the underlying entry was filed in ACS or ACE and regardless of whether it is a replacement, substitution or follow-up to a reconciliation entry originally filed in ACS. As of January 14, 2017, ACS is decommissioned for the filing of reconciliation entries. …
   This document announces that CBP is eliminating the requirement that reconciliation entries be filed at specified reconciliation processing ports. Beginning on January 14, 2017, reconciliation entries may be filed in ACE at any CBP port. CBP reminds importers and customs brokers that the filing of a reconciliation entry is considered customs business under 19 U.S.C. 1641, which requires that a broker wishing to file a reconciliation entry have a district or national permit authorizing the broker to file the reconciliation entry at the port where the reconciliation entry is filed. …
   This document announces that, except for suspended parties wishing to be reinstated into the test, CBP is removing the requirement that interested importers apply to participate in this test. Beginning January 14, 2017, CBP is opening this test to all non-suspended importers without any need for interested importers to apply and be accepted into the test. The only importers who may not participate in this test, i.e., not flag underlying entries for reconciliation, are those who have been suspended from participation. Any party suspended from the test will not be allowed to flag entries until the suspension period ends and the party applies for reinstatement and reinstatement is granted. Suspended importers are still required to file reconciliation entries timely during the suspension period for underlying entries flagged prior to the suspension becoming effective. Any party suspended from the test who wishes to be reinstated must submit an application to its assigned Center of Excellence and Expertise designee if it has one; otherwise the application should be submitted at the local CBP port. The application for reinstatement must address the reasons for the suspension and fully describe all corrective action taken to address the grounds for suspension. CBP will respond to all applications for re-instatement but until and unless reinstatement is granted, the suspended importers may not participate in the test, i.e., importers may not flag underlying entries for reconciliation. …
   This document announces that CBP is streamlining the process for blanket flagging underlying entries for reconciliation. Prior to the changes announced herein, importers provided CBP a request asking that CBP input and apply a blanket flag to all underlying entries filed by the importer for a specific time period. Importers also identified the specific issue(s) for which they requested that CBP input and apply the requested blanket flag. This document announces that effective January 14, 2017, importers no longer will submit requests asking that CBP apply a blanket flag on their behalf. Instead, importers may input and apply a blanket flag themselves. Importers who use blanket flagging must continue to identify the issue(s) they are flagging. …
   This document announces that beginning January 14, 2017, all test participants may request that CBP retroactively flag underlying entries on their behalf. A request may be made by sending an email to OFO-RECONFOLDER@cbp.dhs.gov. The request must be made at least 60 days before the scheduled liquidation date of the underlying entry the importer wishes to have CBP flag retroactively. CBP’s decision to grant or deny such a request is entirely discretionary and solely within CBP’s province. CBP’s decision is final and cannot be appealed. CBP will send an email to the importer or his agent when its request is approved or denied along with a list of the entry numbers, which were flagged and a list of the entry numbers which were not flagged. It should be noted that CBP intends to grant these requests sparingly and only as a courtesy where appropriate. …
   This document announces that reconciliation entries filed in ACE will be fully automated and all required data and information must be transmitted electronically on the reconciliation entry. Reconciliation entries must continue to be filed using the Automated Broker Interface (ABI). This document also announces that paper and compact disc spreadsheets will no longer be accepted as part of the filing of reconciliation entries. The data formerly contained in the associated files and spreadsheets, reduced as explained in section G below, will be transmitted electronically as part of the reconciliation entry. …
   This document announces that reconciliation entries with no changes to flagged entries must only report the flagged underlying entry numbers (no line item data) and must be filed as an aggregate reconciliation entry, i.e., no entry-by-entry reconciliation entry will be allowed when there are no changes to declare. Reconciliation entries with changes to the flagged entry will no longer have to include original transaction values, or original duties, fees and taxes amounts declared in the flagged entry. As a result, reconciliation entries with changes will only have to report the newly determined transaction value and the newly reconciled duties, fees and taxes. Reconciliation entries claiming preferential tariff treatment pursuant to a free trade agreement post-importation claim must include electronic certifications of the statements and declarations required by regulation. Reconciliation entries reconciling classification issues must provide information indicating the protest, administrative ruling or court action, which necessitates reconciling the classification of the underlying flagged entry. Reconciliation entries flagged only for a value change must indicate by checking a checkbox if the value change results in a classification change as well. …
   This document announces that reconciliation entry filers must check a checkbox indicating if a prior disclosure has been made on any of the flagged underlying entries. If no prior disclosure was made, the checkbox should not be checked. Additionally, the reconciliation entry line item data must include the line number of the underlying flagged entry being reconciled. …
   This document also announces that the Masterfile Extract and Liquidation Extract Reports that CBP provided upon request, for a fee, will be discontinued in both paper and diskette form as soon as that information is available in an ACE report CBP will be discontinuing the issuance of the Masterfile and Liquidation Extract reports because the information usually contained in these reports will be available free of charge in ACE reports for those parties having an ACE Portal Account. For information on ACE Portal Accounts please see CBP’s general notice published in the Federal Register on October 21, 2015 (80 FR 63817). ACE Portal Accounts allow the trade community to run reports, as needed, to access their customs data. CBP will provide notice that the information is available on an ACE report by announcing it on the ACE reports home page and through the issuance of a message made on the Cargo Systems Messaging Service (CSMS). CBP recommends that trade members subscribe to CSMS to receive email notifications from CBP regarding ACE reports and other important information. For information about subscribing to CSMS, please go here. …
   Dated: December 7, 2016.
Brenda B. Smith, Executive Assistant Commissioner, Office of Trade.
* * * * * * * * * * * * * * * * * * * *

OGSOTHER GOVERNMENT SOURCES

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


* President; ADMINISTRATIVE ORDERS; Syria; Arms Export Control Act Waiver to Support U.S. Special Operations to Combat Terrorism (Presidential Determination No. 2017-05 of December 8, 2016) [Publication Date: 13 December 2016.] 
* * * * * * * * * * * * * * * * * * * *

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

OGS_a67. State/DDTC Invites Industry Users that Leverage Batch Submission Process to Schedule Conference Call

(Source: State/DDTC)
 
Industry users that leverage the batch submission process are invited to schedule an individual conference call with DDTC’s CIO for inquiries and discussion about how the batch process will work with upcoming DDTC changes to its systems and forms in calendar year 2017. Conference calls will be 20 minutes each, with time slots available daily from 11am-1pm EST., starting December 13, 2016 – January 13, 2017. To reserve a time slot with DDTC’s CIO contact the DDTC Helpdesk at 202-663-2838.

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

 
International Agreements:
  – Council Decision (EU) 2016/2220 of 2 December 2016 on the conclusion, on behalf of the European Union, of the Agreement between the United States of America and the European Union on the protection of personal information relating to the prevention, investigation, detection, and prosecution of criminal offences
  – Agreement between the United States of America and the European Union on the protection of personal information relating to the prevention, investigation, detection, and prosecution of criminal offences

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

OGS_a49. EU Posts Correction Concerning Restrictive Measures Against Syria
 
Corrigenda:
  – Corrigendum to Council Decision (CFSP) 2015/1836 of 12 October 2015 amending Decision 2013/255/CFSP concerning restrictive measures against Syria  
* * * * * * * * * * * * * * * * * * * *

NWSNEWS

 
US intelligence agencies determined that several years ago China stole secrets relating to the F-35 jet fighter from a US contractor. The design secrets were detected in China’s new J-20 stealth fighter and the J-31.

The stolen secrets included details of the F-35’s electro-optical targeting system, radar-absorbing coatings and engine nozzles.


Taiwan remains a major spying target of China and, since 2002, 56 Chinese agents have been arrested there after being caught obtaining sensitive information, including about US technology shared with Taipei.

  “In recent years, Chinese agents have extracted data on some of the most advanced weapons and weapons systems in the US arsenal, such as jet fighters and unmanned submersible vehicles,” states the annual report of the US-China Economic and Security Review Commission, released on November 16.

 
The United States faces a large and growing threat to its national security from Chinese intelligence collection operations. Among the most serious threats are China’s efforts at cyber and human infiltration of U.S. national security organizations. These operations are not a recent phenomenon, but reports of Chinese espionage against the United States have risen significantly over the past 15 years. The threat from Chinese intelligence operations also extends overseas.

For example, China’s growing technical intelligence * collection capabilities are increasing its ability to monitor deployed U.S. military forces. Moreover, by infiltrating and attempting to infiltrate defense entities in U.S. ally and partner countries, China could affect U.S. alliance stability and indirectly extract sensitive U.S. national defense information. Meanwhile, the national security implications of Chinese intelligence collection operations have grown amid U.S.-China competition and Beijing’s expanding military might.

Chinese intelligence threat is increasing as China reforms and centralizes its intelligence apparatus and gains experience conducting spying operations. China is also improving its human spy service.

The military spy agencies were the subject of a major reform effort in late 2015 that moved them from the General Staff Department of the People’s Liberation Army to a new military service-level group called the Strategic Support Force.

U.S. Defense Industrial Entities   
China’s intelligence collection operations targeting U.S. defense industrial entities and its acquisition of sensitive defense technology could undermine U.S. military superiority by accelerating China’s military modernization and giving China insight into the capabilities and operation of U.S. weapons and weapons systems.

Some spies were caught but there are more spies and operatives across the defense agencies, companies, contractors of the US and its allies.

  – In June 2016, Wenxia “Wency” Man, a Chinese-born naturalized U.S. citizen, was convicted of conspiring with an agent in China to illegally export to China the MQ-9 Reaper/Predator B unmanned aerial vehicle, as well as engines used in the F-35, F-22, and F-16 jet fighters and technical data associated with these platforms.

  – In June 2016, Amin “Amy” Yu, a Chinese national and permanent resident of the United States, pleaded guilty to illegally acting as an agent of the Chinese government. Ms. Yu illegally exported commercial technology used in marine submersible vehicles * to conspirators at China’s Harbin Engineering University, a research institute that supports PLA Navy military modernization.

  – In March 2016, Su Bin, a Chinese national, pleaded guilty to conspiring from 2008 to 2014 to steal U.S. military technical data, including data on the Boeing C-17 Globemaster military transport aircraft and jet fi ghter aircraft, and export this information to China. Some of Mr. Su’s co-conspirators were members of the PLA Air Force.

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

NWS_a2
11. ScoopWhoop: “US Grants The Unique ‘Major Defence Partner’ Status To India. Here’s What It Means”

(Source: ScoopWhoop Media [India industry blog])
 
Defence Minister Manohar Parrikar and outgoing US Defence Secretary Ashton Carter on Thursday finalised the “major defence partner” status to India which will fast-track cooperation and sharing of high-end American defence technology.
 
Both sides also vowed to expand the bilateral defence cooperation as Carter met Parrikar for the record breaking seventh time.
 
So what does it mean to be a “major defence partner” of the US?
 
The status means that for defense-related trade and technology transfer, India would now be treated at par with America’s closest allies.
 
According to the joint statement by both countries, the designation as a Major Defense Partner, is a status unique to India and institutionalises the progress made to facilitate defence trade and technology-sharing with India to a level at par with that of the United States’ closest allies and partners, and ensures enduring cooperation into the future.
 
What does it mean for India?
 
  – Simply put, India now can get access to 99% of the US defense technologies as the export hurdle of high tech US military hardware and technology to India is removed.
  – India would also receive license-free access to a wide range of dual-use technologies in conjunction with steps that India has committed to take to advance its export control objectives.
  – US government will inform the review of requests to export defense articles, defense services, or related technology to India under the Arms Export Control Act, and inform any regulatory and policy adjustments that may be appropriate.
  – In support of India’s Make in India initiative, and to support the development of robust defense industries and their integration into the global supply chain, the United States will continue to facilitate the export of goods and technologies for projects, programs and joint ventures
  – The deal also means approval and facilitation of transfer of advanced technology, consistent with US conventional arms transfer policy, to support combined military planning with India’s military for missions such as humanitarian assistance and disaster relief, counter piracy, freedom of navigation, and maritime domain awareness missions, and to promote weapons systems interoperability.

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

NWS_a3
12. Washington Post: “U.S.-Iranian Man Faces Sentencing in Case That Revealed Secret Database of Americans’ Calls”

(Source: Washington Post)
 
A U.S. citizen born in Iran whose federal prosecution helped expose the secret, decades-long collection of Americans’ outbound overseas calls has asked for leniency at sentencing set for Monday, arguing among other reasons that his guilty plea did U.S. law enforcement a favor.
 
Shantia Hassanshahi, 61, pleaded guilty Sept. 14 in federal court in Washington to one count of unlawfully conspiring to export technology to Iran when he sent devices used to protect the civilian power grid.
 
Through his attorneys, he said when he pleaded and gave up his appeal rights, he also spared the government the risk that an appeals judge could side with him and someday toss not only his case but other convictions prosecutors won using the database of billions of calls.
 
Hassanshahi’s lawyers said in sentencing documents that he deserves credit and should be sentenced to no more than the time he already has served–which is about two months in jail and about three years total under electronic monitoring or strict supervision.
 
U.S. prosecutors have asked U.S. District Judge Rudolph Contreras to give Hassanshahi three years, which would still be shorter than the 47 to 56 months that federal guidelines recommend.
 
Assistant U.S. Attorney Frederick W. Yette of the District did not directly address the argument by Hassanshahi’s lawyers, but wrote that a three-year prison term would be “in line” with penalties in three similar illegal export cases in the wake of a 2015 deal with Iran that lifted most sanctions in exchange for Iran’s mothballing its nuclear program.
 
Hassanshahi was arrested in 2013.
 
  “To promote respect for the law – both by the defendant and the public – it is necessary and appropriate to impose a meaningful sentence,” Yette wrote. “
“Hassanshahi should not be permitted to flout U.S. sanctions laws now, with a slap on the wrist.”
 
Hassanshahi’s lawyers, John P. Pierce of Washington and Saied Kashani of Los Angeles, said their client’s case differed from the others’ because it involved purely civilian and non-nuclear electrical equipment.
 
The U.S. government “does not contend that Mr. Hassanshahi’s activities contributed in any way to Iran’s military, nuclear, strategic or terrorism capabilities,” they wrote.
 
Hassanshahi was arrested in Los Angeles after agents said they used the secret database to link his phone to a call made to Iran. He was identified through the database by Immigration and Customs Enforcement’s Homeland Security Investigations.

Hassanshahi admitting using his California company, Hasston Inc., to purchase devices from a Canadian manufacturer and to ship them to Iran in violation of U.S. export laws.
 
Under a judge’s order, a Drug Enforcement Administration official submitted an affidavit in the case in 2015 acknowledging that until 2013, U.S. law enforcement periodically asked U.S. telecommunications service providers, which weren’t identified, for phonemetadata – but not the actual conversations – on outbound overseas calls to a list of countries, which also weren’t identified.
 
The countries “have a demonstrated nexus to international drug trafficking and related criminal activities,” the DEA official said, and the phone data collected consisted of the numbers that made and received calls, and the date, time and length of the calls.
 
The Justice Department said the system was ultimately terminated and all information deleted, and that it had not been active or searchable since September 2013.
 
However, civil liberties groups called the database a disturbing overreach of a 1988 counternarcotics law. They said authorities used a statute designed to allow limited subpoenas for information about drug trafficking and money laundering to carry out bulk collection of records about Americans’ calls overseas for more than 20 years, share such information with other government agencies, and investigate non-drug-related crimes.
 
The result was the first known effort to gather data on Americans in bulk without a warrant, a model for the massive terrorist phone surveillance effort the National Security Agency launched after the Sept. 11, 2001, terrorist attacks, although the Justice Department version was apparently run with fewer regulations and oversight.
 
USA Today reported in April 2015 that the data collection was “one of the most important and effective Federal drug law enforcement initiatives,” in the words of a 1998 Justice Department letter seeking call records.
 
The DEA collected billions of records using administrative subpoenas, which unlike court subpoenas or search warrants do not require involvement from prosecutors, grand juries or a judge but can be issued directly by law enforcement on a showing of “relevance” to a criminal investigation.
 
The program was shut down after former NSA contractor Edward Snowden disclosed the NSA’s more sweeping collection efforts, triggering a national debate about the scope of government surveillance.

In court papers, Hassanshahi’s lawyers said the government in negotiations before his plea deal rejected a defense proposal to go to trial with both sides stipulating to the same facts showing the government could have proven its case against Hassanshahi, but preserving his right to appeal if he were convicted.
 
The government rejected that option, Hassanshahi’s lawyers wrote, because if their client won an appeal it could have put “at risk” “every other case in which the government utilized the database.”

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MSEX/IM MOVERS & SHAKERS

MS_a113
. Monday List of Ex/Im Job Openings: 121 Jobs Posted

(Source: Editor)  


 
Published every Monday or first business day of the week.  Send openings in the following format to
apbosch@fullcirclecompliance.eu
.
 
COMPANY; LOCATION; POSITION TITLE (WEBLINK); CONTACT INFO; REQ ID

#” New listing this week:

 

* Amazon; London, UK;
Senior Trade Compliance Program Manager (M/F)
; Requisition ID: 429019

* Amazon; Seattle WA;
Compliance Investigator
; Requisition ID: 432564

* Amazon; Seattle WA;
Sanctions Compliance Specialist
; Requisition ID: 467576

* Amazon; Seattle WA;
NA Compliance Analyst; Requisition ID: 256357

* Amazon; Seattle WA;
Prime Air Trade Compliance Program Manager; Requisition ID: 395658

* Amazon; Singapore;
Sr. Trade Compliance Manager
; Requisition ID: 441734
# Amazon; Tokyo, Japan;
JP Export Compliance Manager
; Requisition ID: 464733

* Aramco Services Company; Houston TX;
Trade Compliance Specialist
; Requisition ID: 295802

# AstraZeneca; Wilmington DE;
Sr. Import Analyst
; Requisition ID: R-001528
# Avigilon; Plano, TX;
Global Trade Compliance Manager
; Requisition ID: 2016-2551


* Bayer; Leverkusen, Germany;
Head of Customs & International Trade Classification (m/f)
; Requisition ID: 0000180456


* Boeing; Bristol, UK;
Trade Control Specialist
; Requisition ID: 1600018482


# Boeing; Denver CO;
Trade Control Specialist Mid-Level
; Requisition ID: 1600020407
# Boeing; Huntington Beach CA;
Trade Control Specialist
; Requisition ID: 1600019369

* Boeing; Neu-Isenburg, Germany;
Trade Specialist 4 m/f
; Requisition ID: 760960

# Colony Brands, Inc.; Monroe WI;
Assistant Trade Compliance Manager
; Requisition ID: 16-0954

* Continental; Manila,
Philippines;
Head of Transportation and Foreign Trade Compliance
; Requisition ID: 42475BR


* Coriant; Naperville IL;
Sr Mgr of Global Trade Compliance
; Requisition ID: 11353

* Crane Aerospace and Electronics; Chandler AZ;
Sr. Export Compliance Analyst; Requisition ID: 4725

* Crane Currency; Nashua NH;
Import/Export & Logistics Manager
; Requisition ID: 2016-1459

* CSL Behring; King of Prussia PA;
Global Trade Compliance Manager
; Requisition ID: R-031549

*
DRS Technologies; Dayton OH;
Senior Trade Compliance Specialist III
; Requisition ID: 61027

* DRS Technologies; Germantown MD;
Senior Trade Compliance Manager
;
Requisition ID: 54749

* Edgewell Personal Care; Milford CT; 
Export Compliance and Security Lead
; Requisition ID: NAM00808

* Emerald Performance Materials; Vancouver WA;
Manager, North America Logistics

* Esterline Technologies Corporation; Bellevue WA;
Audit Manager – Compliance
; Requisition ID: 8215BR

* Esterline Technologies Corporation; Bellevue WA;
Sr. Trade Compliance Manager – Sensors & Systems (Engineering)
; Requisition ID: 8791BR
* Esterline Technologies Corporation; Brea, CA;
Logistics Coordinator
; Requisition ID:
8887BR

* Esterline Technologies Corporation; Brea CA;
Trade Compliance Manager; Requisition ID: 7333BR

# Esterline Technologies Corporation; Buena Park, CA;
Manager, Shipping and Inventory Control
; Requisition ID:
9046BR

* Esterline Technologies Corporation; Paso Robles CA;
Trade Compliance Manager
; Requisition ID: 6148BR

* Esterline Technologies Corporation; Tijuana, Mexico;
Import-Export Specialist
; Requisition ID: 8617BR

* Expeditors; Bangkok, Thailand; Regional Trade Compliance Manager – Indochina & Philippines
* Export Solutions Inc.; Melbourne FL; 
Trade Compliance Specialist II

info@exportsolutionsinc.com

* Facebook; Menlo Park CA;
Head of Global Trade Compliance Operations

* FD Associates; Senior Export Compliance Associate,
jobs@fdassociates.net

* FLIR Systems; Arlington VA;
Director of Defense Trade Licensing & Compliance

* FLIR; Arlington VA;
Sr. Defense Trade Licensing & Compliance Analyst
; Requisition ID: 7924
* FLIR; Billerica MA; 
Sr. Defense Trade Licensing & Compliance Analyst
;
Requisition ID: 8008
# General Electric (Global Operations); Wash DC;
Administrator, International Trade Compliance
; Requisition ID: 2786498

* General Dynamics; South Wales, UK;
Senior Trade Compliance Officer
; Requisition ID: 6079

# HARMAN; Novi MI;
Senior Export Compliance Specialist; Requisition ID: 94688

# HARMAN; Novi MI;
Senior Import Compliance Specialist; Requisition ID: 94686

* Hewlett Packard Enterprise; Amstelveen, The Netherlands;
Customs and Compliance Manager
; Requisition ID: 1585140

* Ingersoll Rand; San Diego, CA;
Trade Compliance Manager (Trilingual: English, Spanish, and Portuguese)
; Requisition ID: 1610632

* Intel; Santa Clara, CA;
Global Export Compliance Specialist
; Requisition ID: JR0814909

# Intel; Santa Clara CA;
Export Compliance Specialist
; Requisition ID: JR0005160

* Lam Research Corporation; Fremont CA:
Foreign Trade Analyst 6
; Requisition ID: 12079BR

* Leica Biosystems; Nußloch, Germany;
Trade Compliance Manager (Import-Export)
; Requisition ID: COR000633

* Linde; Stewartsville NJ;
Compliance Administrator; Requisition ID: 916130

* Lumber Liquidators; Toano VA;
Compliance Auditor
; Requisition ID: 913

* Lutron; Coopersburg PA;
Trade Manager-Export
; Requisition ID: 2926

* Lutron; Coopersburg PA; Trade Compliance Coordinator; Requisition ID: 2834

* Medtronic; Heerlen, The Netherlands;
Trade Compliance Analyst
; 16000DYY

* Meggitt PLC; Los Angeles CA;
Export Control/Trade Compliance Administrator
; Requisition ID: 22591

* Meggit PLC; Los Angeles CA;
Trade Compliance Officer
* Meggit PLC; Simi Valley CA;
Trade Compliance Administrator

* Meggitt Control Systems; North Hollywood CA;
Trade Compliance Officer
;
jenn.avritt@meggitt.com
; Requisition ID: 23720

* Meggitt Advanced Composites Limited; Shepshed, UK;
Trade Compliance Officer
; Requisition ID: 22122

* Merck KGaA; South West England, UK;
Trade Compliance Specialist
; Requisition ID: 153405

* Microsoft; Redmond WA;
Trade Director, Regulatory Compliance & Standards
;
rybeli@microsoft.com
; Requisition ID: 973167

* Moog; East Aurora NY;
Export Compliance Manager
;
anihill@moog.com
; Requisition ID: 161913
* North Dakota State University; Fargo, ND;
Research Integrity and Compliance Administrator-Export Control
; Requisition ID: 1600266

* Northrop Grumman T
echnology Services Sector, Advanced Defense Services (ADS) Division
; International Posting (Saudi Arabia);
Manager International Trade Compliance 1
(Saudi Arabia)
; Requisition ID: 16003577

* Northrop Grumman Corporation; Falls Church VA;
International Trade Compliance Analyst 3/4
; Requisition ID: 16026961

* Northrop Grumman Corporation; Linthicum MD;
International Trade Compliance Analyst 3
; Requisition ID: 16013233

* Northrop Grumman Corporation; Rolling Meadows IL;
International Trade Compliance Analyst 2
; Requisition ID: 16024684


* Pall Corporation; Portsmouth, UK;
Trade Compliance Specialist
; Requisition ID: SHA000201 

* Parexel; Buenos Aires, Argentina;
Trade Compliance Specialist
; Requisition ID: pare-10055899

* PerkinElmer; Waltham MA;
International Trade Compliance Associate, Informatics


* Raytheon; Arlington VA;
Export Licensing Manager I
; Requisition ID: 88665BR
*Raytheon; Arlington VA;
Export Licensing Manager I
; Requisition ID: 87321BR

# Raytheon; Cambridge MA;
Export Compliance Agreement Owner
; Requisition ID: 87607BR

* Raytheon; El Segundo CA;
Import Control & Compliance Administration
; Requisition ID: 87699BR

* Raytheon; Fullerton CA;
Global Trade Compliance Manager
; Requisition ID: 85521BR

* Raytheon; Indianapolis IN;
Principal SC Compliance Specialist
; Requisition ID: 84932BR

* Smith and Wesson; Springfield MA;
International Sales Administrator
; Requisition ID: SCB-1223


* State Department; Wash DC;
Supervisory Compliance Specialist; Requisition ID: HRSC/T/PM-2017-0003


* Tenneco; Edenkoben, Germany;
Global Trade Compliance Manager (m/w)
; Requisition ID: 176871-846

# Tesla Motors; Fremont CA;
International Tax Lead/Senior International Tax Counsel; Requisition ID: 35593

* Tesla Motors; Fremont CA;
Global Trade Compliance Manager
; Requisition ID: 40738 

# Tesla Motors; Fremont CA;
Global Supply Manager – Logistics; Requisition ID: 38153

# Tesla Motors; Fremont CA;
Group Manager – Logistics Sourcing; Requisition ID: 38574

# Tesla Motors; Fremont CA;
Logistics Analyst; Requisition ID: 38499

* Textron Systems; Wilmington MA;
Principal Export Compliance Analyst
; Requisition ID: 242857


* Thales; Piscataway NJ;
Manager, Trade Compliance
; Requisition ID: R0012077

* Thales; Piscataway NJ;
Trade Compliance Specialist/Facility Security Officer; Requisition ID: R0012102

* ThermoFisher Scientific; Madison WI;
Import/Export Compliance Coordinator
; Requisition ID: 41440BR

* ThermoFisher Scientific; Matamoros, Mexico;
Import/Export Supervisor
; Requisition ID: 39750BR

* ThermoFisher Scientific; Shanghai, China;
Compliance Director, Greater China
; Requisition ID: 38520BR

* ThermoFisher Scientific; Shanghai, China;
Trade Compliance Specialist
; Requisition ID: 42144BR
* ThermoFisher Scientific; Shanghai, China;
Trade Compliance Specialist – CMC
; Requisition ID: 42143BR

* Toyota; Dallas TX;
Export Control Analyst
; Requisition ID: TMS003DS

* Tractor Supply Company; Brentwood TN;
Customs Process Manager
;
nknott@tractorsupply.com
; Requisition ID: 16-986

* Troy Corporation; Florham Park NJ;
Global Trade and Compliance Manager
; Requisition ID: 306


* United States Pharmacopeia; Rockville MD OR Frederick MD;
Trade Compliance Specialist
;
Meaghan Ireland –
mci@usp.org
;
Requisition ID: 709-679

* United Technologies Corporation, UTC Aerospace Systems; Charlotte NC;
Manager, ITC-Authorizations
; Requisition ID: 22846BR  

* United Technologies Corporation, UTC Aerospace Systems; Charlotte NC;
* United Technologies Corporation, UTC Aerospace Systems; Charlotte NC;
International Trade Compliance Auditor; Requisition ID:
34285BR
* United Technologies Corporation, UTC Aerospace Systems; Charlotte NC;
* United Technologies Corporation, UTC Aerospace Systems; Charlotte NC;
* United Technologies Corporation, UTC Aerospace Systems; Charlotte NC;
Program Manager, Customs; Requisition ID:
31331BR


* United Technologies Corporation, UTC Aerospace Systems; Charlotte NC;
Specialist, ITC IT Systems
; Requisition ID: 33792BR
* United Technologies Corporation, UTC Aerospace Systems; Charlotte NC;
Sr Mgr, Intl Trade Compl
; Requisition ID: 30525BR

* United Technologies Corporation, UTC Aerospace Systems; Phoenix AZ; Sr Analyst, International Trade Compliance; Requisition ID: 30058BR 


* United Technologies Corporation, UTC Aerospace Systems; Windsor Locks CT;
ITC Investigator; Requisition ID: 28069BR


# University of Central Florida; Orlando FL;
Export Control Analyst
; Requisition ID: 42319

* University of Florida; Gainesville FL; Asst. Director Research Admin. – Export Control; Requisition ID: 499437 

* XPO Logistics; Greenwich CT;
Global Trade Compliance Analyst

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

ENEDITOR’S NOTES

(Source: Editor) 

 
*
Aleksandr Solzhenitsyn (11 Dec 1918 – 3 Aug 2008, was a Russian novelist, historian, and short story writer. An outspoken critic of the Soviet Union and communism, he was allowed to publish only one work in the Soviet Union,
One Day in the Life of Ivan Denisovich.  After this he had to publish in the West, most notably
Cancer Ward and
The Gulag Archipelago. In 1970, Solzhenitsyn was awarded the Nobel Prize in Literature.)

  – “You only have power over people so long as you don’t take everything away from them. But when you’ve robbed a man of everything, he’s no longer in your power – he’s free again.”

 

*
Gustave Flaubert (12 Dec 1821 – 8 May 1880, was an influential French novelist who was perhaps the leading exponent of literary realism in his country. He is known especially for his first published novel,
Madame Bovary.)

  – “The most glorious moments in your life are not the so-called days of success, but rather those days when out of dejection and despair you feel rise in you a challenge to life, and the promise of future accomplishments.”

 

Monday is pun day:

 

Q. What do you get when you cross a snowman with a vampire?

A. Frostbite.

 

Q. What does Long John Silver do before going to bed at night?

A. He puts his ship on auto-pirate.  

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

EN_a315
. 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: 12 Dec 2016: 81 FR 890375-89381: Electronic Notice of Liquidation 

* 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 (9 Mar 2016) of Bartlett’s Annotated FTR (“BAFTR”), by James E. Bartlett III, is available for downloading in Word format. The BAFTR contains all FTR amendments, FTR Letters and Notices, a large Index, and footnotes containing case annotations, practice tips, and Census/AES guidance.  Subscribers receive revised copies every time the FTR is amended. The BAFTR is available by annual subscription from the Full Circle Compliance website.  BITAR subscribers are entitled to a 25% discount on subscriptions to the BAFTR.
 
*
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: 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 9 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.  

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

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 of this newsletter 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.

* SUBSCRIPTIONS: Subscriptions are free.  Subscribe by completing the request form on the Full Circle Compliance website.

* TO UNSUBSCRIBE: Use the Safe Unsubscribe link below.

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