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17-0126 Thursday “The Daily Bugle”

17-0126 Thursday “Daily Bugle”

Thursday, 26 January 2017

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 
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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. DHS/CBP Postpones Effective Dates for Two EPA Rules
  4. DHS/CBP Posts Updated ACE CATAIR Documentation
  5. State/DDTC: (No new postings.) 
  1. Reuters: “UK, U.S. Should Look at Removing Trade Barriers Before Brexit: PM May”
  2. ST&R Trade Report: “Faster Issuance of Customs Rulings is Goal of COAC Initiative”
  3. ST&R Trade Report: “Single Export Licensing System Under Development”
  1. M. Lester: “EU Court Rejects Application By Russian Defence Company Almaz-Antey” 
  2. T.R. Bromund: “With Obama Gone, Firearms Industry Hopes for New Freedom for Gun Owners”
  1. Bartlett’s Unfamiliar Quotations 
  2. Are Your Copies of Regulations Up to Date? Latest Changes: ATF (15 Jan 2016), Customs (20 Dec 2016), DOD/NISPOM (18 May 2016), EAR (23 Jan 2017), FACR/OFAC (17 Jan 2017), FTR (15 May 2015), HTSUS (1 Jan 2017), ITAR (11 Jan 2017) 

EXIMEX/IM ITEMS FROM TODAY’S FEDERAL REGISTER

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OGS
OTHER GOVERNMENT SOURCES

OGS_a11. Ex/Im Items Scheduled for Publication in Future Federal Register Editions

(Source: Federal Register)
 

* Homeland Security; RULES; Civil Monetary Penalty Adjustments for Inflation [Publication Date: 27 January 2017.]
 
* U.S. Customs and Border Protection; RULES [Publication Date: 27 January 2017.]:
  – Delay of Effective Date for Importations of Certain Vehicles and Engines Subject to Federal Antipollution Emission Standards
  – Delay of Effective Date for Toxic Substance Control Act Chemical Substance Import Certification Process Revisions
  – Regulatory Implementation of the Centers of Excellence and Expertise

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OGS_a22. Commerce/BIS: (No new postings.)

(Source: Commerce/BIS)
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OGS_a33.

DHS/CBP Postpones Effective Dates for Two EPA Rules

(Source: CSMS# 17-000033, 25 Jan 2017.)
 
On January 25, 2017, the Office of the Federal Register placed on its public inspection website two notices that delay the effective dates of two final rules from January 26, 2017, to March 21, 2017. The two final rules amend the CBP regulations relating to:
  (1) the importation into the United States of certain vehicles and engines under the Clean Air Act in order to harmonize the documentation requirements applicable to different classes of vehicles and engines that are subject to the CAA’s emission standards (81 FR 94974); and
  (2) the requirement to file a Toxic Substances Control Act (TSCA) certification when importing into the customs territory of the United States chemicals in bulk form or as part of mixtures and articles containing a chemical or mixture (81 FR 94980).
 
Both final rules amended the regulations to permit importers to file the required EPA documents with CBP electronically.
 
To comply with the White House Chief of Staff memorandum issued on January 20, 2017, CBP has issued the two documents that will be published in the Federal Register on January 27, 2017, that announce that the effective date of the Final Rules are delayed for 60 days from January 20, 2017, to March 21, 2017.

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OGS_a44DHS/CBP Posts Updated ACE CATAIR Documentation

(Source: CSMS# 17-000036, 26 Jan. 2017.)
 
U.S. Customs and Border Protection (CBP) has updated the following documentation on
CBP.gov. To download a copy of the updated documents, please visit the “ACE Automated Broker Interface (ABI) CATAIR” page of
CBP.gov/ACE. You may also copy and paste the URLs above to your internet browser.
 
  (1) U.S. Customs and Border Protection (CBP) has updated and posted the
draft Automated Commercial Environment (ACE) CBP and Trade Automated Interface Requirements (CATAIR) Harmonized Tariff Schedule chapter on CBP.gov. Modifications include the removal of the other Government Agency (OGA) code from the V3 record, as well as the deletion of the associated Note 1. To download a copy of the updated draft ACE CATAIR document, please visit the “ACE Automated Broker Interface (ABI) CATAIR” page of CBP.gov/ACE and click on the “Chapters: Draft for future capabilities” tab.
 
  (2) The
ACE CATAIR PE PX Standalone document has been updated. 
In the PE 15: Updated the length of the Prior Notice Confirmation Number from 15 to 21.
Added a sentence to Note 1 about the length of the PNC number.
 
  (3) The
Draft ACE CATAIR Statement Update IG has been updated. 
Updated to report the deletion of two condition codes/narratives and add one new condition code in the SU Statement update IG, ACE Error Dictionary for Statements and Appendix G.
 
  (4) The
ACE CATAIR Statement Error Dictionary has been updated. 
Updated to report the deletion of two condition codes/narratives and add one new condition code in the SU statement update IG, ACE Error Dictionary for Statements and Appendix G.
 
  (5) The
ACE CATAIR Appendix G Condition Codes and Text has been updated.
 
Updated to report the deletion of two condition codes/narratives and add one new condition code in the SU Statement update IG, ACE Error Dictionary for Statements and Appendix G.
 
  (6) The
Document Image System Implementation Guide has been updated.

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OGS_a65. State/DDTC: (No new postings.)

(Source:
State/DDTC)

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MSNEWS

MS_a1
6.

Reuters: “UK, U.S. Should Look at Removing Trade Barriers Before Brexit: PM May”

 
British Prime Minister Theresa May said on Thursday Britain and the United States could look at areas where both could remove some trade barriers to their mutual advantage while she negotiates the country’s exit from the EU.
 
May told reporters aboard a government plane heading to the United States, where she will meet President Donald Trump on Friday, that Britain was limited in how far “we can go in terms of a formal free trade agreement” while still a member of the European Union.
 
  “I think there is much that we can do in the interim in terms of looking at how we can remove some of the barriers to trade in a number of areas. We’re able to see an advantage for both of us even if we haven’t actually been able to sign that legal free trade agreement,” she said.
 
May also said it was important that the Iran nuclear deal was enforced and that Trump had told her that he was committed to NATO.

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NWS_a27.

ST&R Trade Report:”Faster Issuance of Customs Rulings is Goal of COAC Initiative”

 
The Commercial Customs Operations Advisory Committee has created a working group to examine ways to accelerate the issuance of U.S. Customs and Border Protection rulings.
 
COAC states that the current system of CBP rulings and decisions (e.g., binding rulings, internal advice, protest review decisions) “affords an indispensable degree of transparency and informed compliance for the international trade community.” This system includes the review and reconsideration of binding CBP rulings and decisions to promote uniform guidance. These tools “are vital for both proper business planning and for affording traders due process.”
 
However, COAC adds that in a number of instances “the prolonged time taken for consideration and issuance of these decisions may diminish their value to the trader.” As a result, the working group will seek to identify areas for process improvement in the receipt of requests for, and issuance of, CBP headquarters rulings and decisions focusing on tariff classification, valuation, origin, preference programs, drawback, and other aspects of the entry and duty refund process. …

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NWS_a3
8.

ST&R Trade Report: “Single Export Licensing System Under Development”

 
The Census Bureau reports in its January 2017 “TradeSource” publication that work on a single export licensing system is underway. The Single Trade Application and Reporting System is being designed to replace the Directorate of Defense Trade Control’s DTRADE system, the Bureau of Industry and Security’s SNAP-R system, and the Office of Foreign Assets Controls’ OASIS system.
 
According to Census, an interagency working group was formed in March 2016 to begin working on the STARS requirements. This working group deployed the first deliverable of this initiative in June 2016 by standing up a
single landing page designed for new exporters to obtain information on determining license requirements and acquiring license authorizations from the DDTC, BIS, and OFAC.
 
The next step – identifying the list of data elements to be required within STARS – began in June and is still underway. Census states that once this list is complete the working group will begin providing information on the data elements before having discussions on system requirements and design. To brainstorm ideas Census plans to form external working groups, one of which will be composed of industry representatives with demonstrated experience in the current license applications and another that will include service providers, software vendors, and information technology specialists.

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COMMCOMMENTARY

COMM_a19. M. Lester: “EU Court Rejects Application By Russian Defence Company Almaz-Antey”

 
* Author: Maya Lester, Esq., Brick Court Chambers,
maya.lester@brickcourt.co.uk, +44 20 7379 3550.
 
The General Court of the EU has dismissed the annulment application brought by Almaz-Antey, a Russian defence firm, which challenged its listing on the EU’s sanctions that target people and entities responsible for undermining the territorial integrity of Ukraine. [FN/1]  This is the 2nd judgment interpreting the EU’s targeted Russia sanctions (the 1st being Rotenberg – see previous
blog).
 
The EU’s reasons given for including Almaz-Antey in July 2014 are that it is a state owned company that manufactures weapons for the Russian army, an army which provides heavy weaponry to Ukrainian separatists used for shooting down aircraft. The Court rejected the applicant’s challenge to the proportionality of the listing criterion, finding that the EU had legitimately amended the criteria to include people / entities “materially or financially supporting actions which undermine or threaten the territorial integrity, sovereignty and independence of Ukraine”. And the Court held that it was legitimate to include the applicant on the basis of that criterion even though the evidence showed that it had not supplied weapons to Ukraine or for use there; it was enough that it was a state-owned company supplying weapons to the Russian army which itself supplies weapons to the separatists in Eastern Ukraine.
 
As is often the case, the Court rejected the applicant’s other arguments based on vague reasons, rights of defense and proportionality, and ordered the applicant to pay the EU Council’s costs. There are interesting comments at paras 147-8 of the judgment about the Council’s use of press articles as evidence.
 
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COMM_a210
T.R. Bromund: “With Obama Gone, Firearms Industry Hopes for New Freedom for Gun Owners”

(Source:
The Daily Signal)
 
Author: Ted R. Bromund, Senior Research Fellow, The Heritage Foundation,
staff@heritage.org, 202-675-1761. 
 
In past years, the SHOT Show-the Shooting, Hunting, and Outdoor Trade Show; organized annually by the National Shooting Sports Foundation, held this year in Las Vegas-has been marked by delight at the booming firearms market, clouded by concerns about impending executive actions by now-former President Barack Obama.
 
This year, SHOT was the exact opposite: hopes for regulatory relief from President Donald Trump, tempered with regret at the end of-or at least a pause in-the remarkable sales run of the past eight years.
 
For say what you will about Obama-and SHOT Show attendees often do-he drove firearms sales better than anyone except, maybe, Bill and Hillary Clinton.
 
Obama’s record on this score is remarkable.
 
Firearms transactions in the U.S. are preceded by background checks through the National Instant Criminal Background Check System (NICS)-and in each of the 17 months prior to the election in November, the volume of NICS checks was higher than in the corresponding month of the previous year.
 
But now the party, if not over, is emptying out. Preliminary figures suggest a decline of 20 percent in NICS checks since the election, and there are similar patterns in excise tax payments and hunting licenses.
 
Even in the fascinating realm of National Firearms Act weapons-machine guns, certain shotguns, and silencers-which has seen price increases of up to 10,000 percent over the past 20 years, much of the market appears to have stabilized.
 
The firearms market is as complex as firearms themselves. But no one I spoke to at SHOT doubted that Obama was one of the major causes of the market surge since 2008. He promoted panic buying, encouraged aspiring and worried collectors, and pushed hesitating purchasers into action.
 
The irony is that, for all his supposed desire to get guns off the streets, Obama ended his presidency having put a great many more on them.
 
Obama was more successfully vexatious on the regulatory front. You can’t take a serious interest in things like the Arms Trade Treaty without realizing that, no matter what liberals think, the firearms industry (manufacturers and retailers alike) is among the most highly regulated in the United States.
 
There is a Bureau of Alcohol, Tobacco, Firearms and Explosives form for everything, and if you do not have an organized mind, you are likely to get into trouble very quickly.
 
The industry has adapted to this, and though firearms attorneys regale each other with stories of bad clients (and ATF inspections seemingly driven by pique, not policy), what it wants isn’t a looser rope for people who can’t play by any rules. Rather, it wants consistent rules that don’t unnecessarily hinder lawful business.
 
One problem with Obama was that, for all his airy protestations of respect for the Second Amendment, he clearly despised both the firearms industry and anyone who bought one of their products.
 
But another-and related-problem was that his administration did little to help the industry, and a good deal to get in its way.
 
So much of the talk at SHOT this year was about regulatory relief. National Firearms Act collectors hope for an amnesty to get tens-or perhaps hundreds-of thousands of war trophy machine guns out of America’s attics (and the estates of the veterans who collected them) and lawfully registered.
 
Virtually everyone hopes Congress will pass the
Hearing Protection Act, which would remove silencers from the National Firearms Act. In Europe, silencers (more accurately called suppressors) can be bought off the shelf, whereas in the U.S., by accident of history, they are tightly controlled.
 
With more than half the states now allowing the use of silencers in hunting, and as shooting ranges don’t want to annoy their neighbors, the act commands wide support.
 
Then there is the matter of firearms imports and exports. The U.S. is a bigger importer than exporter, and with the U.S. market no longer skyrocketing upward, some manufacturers are likely to cut costs by importing more parts and components.
 
But the Obama administration seemed to
specialise in causing trouble for importers and exporters alike.
 
From refusing to finish export control reform for firearms (where the National Shooting Sports Foundation rightly continues to lead the charge), to banning the re-import of some U.S.-origin firearms, to high fees imposed by the State Department, to recent decisions on the registration of manufacturers and the treatment of parts and components for export, the Obama White House did what it could, where it could, to keep old regulatory barriers in place and to raise new ones-to the detriment of people who are only interested in following the law.
 
Many at SHOT-indeed, almost everyone-thus hope that the Trump administration will improve the regulatory environment for firearms.
 
Of course, right now, everyone is free to dream, and lots of industries have similar hopes. But if the administration is looking for a roadmap on firearms, it can’t do much better than an article by Teresa Ficaretta and Johanna Reeves of Reeves & Dola, “10 Things Trump Can Do for the Firearms Industry,” just published in
Small Arms Defense Journal.
 
To their excellent list, I would add just two items.
 
First, Trump should “unsign” the Arms Trade Treaty as soon as possible. From the point of view of SHOT, the risk of this treaty is that it will become a reason (or an excuse) for imposing more of those vexatious regulations in which the Obama administration specialized.
 
Of course, there is much more to the Arms Trade Treaty than that, but that is enough.
 
Second,
he should do the same to CIFTA, a treaty on the illicit manufacturing of firearms that, though not well known, is even worse-and much more onerous-than the Arms Trade Treaty.
 
Both treaties will achieve nothing of use. Both were also favorites of Obama-and liberals will not forget them.
 
Their danger rests not in any possibility of gun confiscation, which thanks to the sales Obama helped to provoke has been rendered even more impossible than ever. Their danger rests in the encouragement both treaties offer to the regulator.
 
That’s a much more subtle danger, but it’s one of which firearms importers, exporters, manufacturers, and owners, as the Obama years have shown, have good cause to be wary.

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ENEDITOR’S NOTES

(Source: Editor)

* Virginia Woolf (Adeline Virginia Woolf, born Stephen; 25 Jan 1882 – 28 Mar 1941, was an English writer and one of the foremost modernists of the twentieth century. One of her most famous works A Room of One’s Own (1929), with its famous dictum, “A woman must have money and a room of her own if she is to write fiction.”)
  – “One cannot think well, love well, sleep well, if one has not dined well.”
 
* Somerset Maugham (William Somerset Maugham, 25 Jan 1874 – 16 Dec 1965, was a British playwright, novelist and short story writer. He was among the most popular writers of his era and reputedly the highest-paid author during the 1930s.)
  – “At a dinner party one should eat wisely but not too well, and talk well but not too wisely.” 

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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: 20 Dec 2016: 81 FR 92978-93027: Regulatory Implementation of the Centers of Excellence and Expertise 

* 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: 23 Jan 2017: 82 FR 7641-7642: Updated Statements of Legal Authority for the Export Administration Regulations 

  
*
FOREIGN ASSETS CONTROL REGULATIONS (OFAC FACR)
: 31 CFR, Parts 500-599, Embargoes, Sanctions, Executive Orders
  – Last Amendment: 17 Jan 2017: 82 FR 4793-4794: Sudanese Sanctions Regulations 
 
*
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 Jan 2017: 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: 1 Jan 2017: 2017 Basic HTS  
  – 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: 11 Jan 2017: 82 FR 3168-3170: 2017 Civil Monetary Penalties Inflationary Adjustment
 – The only available fully updated copy (latest edition 24 Jan 2017) 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, 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 subscribers to inform 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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