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17-0224 Friday “The Daily Bugle”

17-0224 Friday “Daily Bugle”

Friday, 24 February 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 here for free subscription. Contact us for advertising inquiries and rates

  1. Commerce/BIS Amends EAR, Extends Validity of Temporary General License for Two ZTE Entities 
  2. Justice/ATF Seeks Comments on Form 3311.4, Application for Alternate Means of Identification of Firearms (Marking Variance) 
  3. Justice/ATF Seeks Comments on Form 10 (5320.10), Application for Registration of Firearms Acquired by Certain Government Entities 
  4. Justice/ATF Seeks Comments on Revision of a Currently Approved Collection; Inventories, Licensed Explosives Importers, Manufacturers, Dealers, and Permittees 
  5. Justice/ATF Seeks Comments on Records of Acquisition and Disposition, Collectors of Firearms 
  6. Justice/ATF Seeks Comments on Forms 5630.5R, 5630.5RC, and 5630.7, NFA-Special Occupational Taxes 
  7. State: ACIEP Meeting on 28 Feb in Wash DC Cancelled 
  1. Ex/Im Items Scheduled for Publication in Future Federal Register Editions 
  2. Commerce/BIS: Pelco Inc, to Pay $162,000 To Settle Alleged Antiboycott Violations 
  3. DHS/CBP Announces ACE Production Outage, 25-26 Feb
  4. DoD/DSS Posts Memorandum of Understanding Template in OBMS
  5. Justice: “Eleven Individuals and One Company Charged in Florida With Exporting Prohibited Articles to Syria”
  6. State/DDTC Posts Reminder on System Outage 24-25 Feb
  7. UK/DIT ECO Publishes New Consolidated List
  1. Central Michigan Life: “Program Started to Address Export Control Regulations”
  2. Fortune: “ZTE Is Getting a Slightly Longer Reprieve from U.S. Sanctions”
  3. ST&R Trade Report: “Dates and Deadlines: Duty Deferral/Drawback, First Sale, GSP, Import Restraints”
  4. ST&R Trade Report: “OTI Licenses Must be Renewed Every Three Years; First Deadline is May 31”
  1. G. Novalis: “Export Compliance in 11 Words (Part 9): Monitor!”
  2. Gary Stanley’s ECR Tip of the Day
  3. R.C. Burns: “Federal Judge Protects Banks from Injured Sailors and Widows”
  1. Friday List of Approaching Events
  1. Bartlett’s Unfamiliar Quotations 
  2. Are Your Copies of Regulations Up to Date? Latest Changes: ATF (15 Jan 2016), Customs (27 Jan 2017), DOD/NISPOM (18 May 2016), EAR (24 Feb 2017), FACR/OFAC (10 Feb 2017), FTR (15 May 2015), HTSUS (1 Jan 2017), ITAR (11 Jan 2017)

EXIMEX/IM ITEMS FROM TODAY’S FEDERAL REGISTER

EXIM_a1

1. Commerce/BIS Amends EAR, Extends Validity of Temporary General License for Two ZTE Entities
 

(Source:
Federal Register
) [Excerpts.]
 
82 FR 11505-11506: Temporary General License: Extension of Validity
* AGENCY: Bureau of Industry and Security, Commerce.
* ACTION: Final rule.
* SUMMARY: On March 24, 2016, the Bureau of Industry and Security (BIS) published a final rule, Temporary General License. The March 24 final rule created a temporary general license that restored, for a specified time period, the licensing requirements and policies under the Export Administration Regulations (EAR) for exports, reexports, and transfers (in-country) as of March 7, 2016, to two entities (ZTE Corporation and ZTE Kangxun) that were added to the Entity List on March 8, 2016. At this time, the U.S. Government has decided to extend the temporary general license until March 29, 2017. In order to implement this decision, this final rule revises the temporary general license to remove the expiration date of February 27, 2017, and to substitute the date of March 29, 2017. This final rule makes no other changes to the EAR.
* DATES: This rule is effective February 24, 2017 through March 29, 2017. The expiration date of the final rule published on March 24, 2016 (81 FR 15633) is extended until March 29, 2017.
* FOR FURTHER INFORMATION CONTACT: Chair, End-User Review Committee, Office of the Assistant Secretary, Export Administration, Bureau of Industry and Security, Department of Commerce, Phone: (202) 482-5991, Email: ERC@bis.doc.gov. …
 
   Dated: February 21, 2017.
Matthew S. Borman, Deputy Assistant Secretary for Export Administration.

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

EXIM_a22. Justice/ATF Seeks Comments on Form 3311.4, Application for Alternate Means of Identification of Firearms (Marking Variance)
(Source:
Federal Register
) [Excerpts.]
 
82 FR 11650: Agency Information Collection Activities; Proposed eCollection eComments Requested; Application for Alternate Means of Identification of Firearms (Marking Variance) (ATF Form 3311.4)
* AGENCY: Bureau of Alcohol, Tobacco, Firearms and Explosives, Department of Justice.
* ACTION: 30-day notice. …
* DATES: Comments are encouraged and will be accepted for an additional 30 days until March 27, 2017.
* FOR FURTHER INFORMATION CONTACT: Mark Pawielski, Firearm & Ammunition Technology Division either by mail at 244 Needy Road, Martinsburg, WV 25405, by email at
Mark.Pawielski@atf.gov
, or by telephone at 304 616 4304 Written comments and/or suggestions can also be directed to the Office of Management and Budget, Office of Information and Regulatory Affairs, Attention Department of Justice Desk Officer, Washington, DC 20503 or sent to
OIRA_submissions@omb.eop.gov
.
* SUPPLEMENTARY INFORMATION: …
  – The Title of the Form/Collection: Application for Alternate
Means of Identification of Firearm(s) (Marking Variance).
  – Form number: ATF Form 3311.4.
  – Component: Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Department of Justice. …
  – Abstract: The ATF Form 3311.4 provides a uniform mean for industry members with a valid Federal importer or manufacturer license, to request firearms marking variance. …
 
   Dated: February 21, 2017.
Melody Braswell, Department Clearance Officer for PRA, U.S. Department of Justice.

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

EXIM_a33. Justice/ATF Seeks Comments on Form 10 (5320.10), Application for Registration of Firearms Acquired by Certain Government Entities


(Source: Federal Register) [Excerpts.]
 
82 FR 11648-11649: Agency Information Collection Activities; Proposed eCollection eComments Requested; Application for Registration of Firearms Acquired by Certain Government Entities ATF F 10 (5320.10)
* AGENCY: Bureau of Alcohol, Tobacco, Firearms and Explosives, Department of Justice.
* ACTION: 30-day notice. …
* DATES: Comments are encouraged and will be accepted for an additional 30 days until March 27, 2017.
* FOR FURTHER INFORMATION CONTACT: Gary Schaible, Office of Enforcement Programs and Services, National Firearms Act Division, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) either by mail at 99 New York Ave NE., Washington, DC 20226, by email at nfaombcomments@atf.gov, or by telephone at 202 648-7165. Written comments and/or suggestions can also be directed to the Office of Management and Budget, Office of Information and Regulatory Affairs, Attention Department of Justice Desk Officer, Washington, DC 20503 or sent to OIRA_submissions@omb.eop.gov.
* SUPPLEMENTARY INFORMATION: …
  – The Title of the Form/Collection: Application for Registration
of Firearms Acquired by Certain Government Entities.
  – Form number: ATF F 10 (5320.10).
  – Component: Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Department of Justice.
  – Abstract: The ATF Form 10 (5320.10) is used to allow State and local government agencies to register otherwise unregistrable National Firearms Act (NFA). The NFA requires the registration of certain firearms under Federal Law. The Form 10 registration, which is for official use only by the agency, allows State and local agencies to retain and use firearms which otherwise would have to be destroyed and comply with the NFA. …
 
   Dated: February 21, 2017.
Melody Braswell, Department Clearance Officer for PRA, U.S. Department of Justice.

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

EXIM_a44. Justice/ATF Seeks Comments on Revision of a Currently Approved Collection; Inventories, Licensed Explosives Importers, Manufacturers, Dealers, and Permittees
(Source: Federal Register) [Excerpts.]
 
82 FR 11650-11651: Agency Information Collection Activities; Proposed eCollection eComments Requested; Revision of a Currently Approved Collection; Inventories, Licensed Explosives Importers, Manufacturers, Dealers, and Permittees
* AGENCY: Bureau of Alcohol, Tobacco, Firearms and Explosives, Department of Justice.
* ACTION: 60-Day notice. …
* DATES: Comments are encouraged and will be accepted for 60 days until April 25, 2017.
* FOR FURTHER INFORMATION CONTACT: Anita Scheddel, Program Analyst, Explosives Industry Programs Branch, either by mail 99 New York Ave. NE., Washington, DC 20226, by email at Anita.Scheddel@atf.gov.
* SUPPLEMENTARY INFORMATION: …
  – The Title of the Form/Collection: Inventories, Licensed
Explosives Importers, Manufacturers, Dealers, and Permittees. …
  – Form number (if applicable): None.
  – Component: Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Department of Justice.
  – Abstract: The records show the explosive material inventories of those persons engaged in various activities within the explosive industry and are used by the government as initial figures from which an audit trail can be developed during the course of a compliance inspection or criminal investigation. …
 
   Dated: February 21, 2017.
Melody Braswell, Department Clearance Officer for PRA, U.S. Department of Justice.

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

EXIM_a55. Justice/ATF Seeks Comments on Records of Acquisition and Disposition, Collectors of Firearms
(Source: Federal Register) [Excerpts.]
 
82 FR 11652: Agency Information Collection Activities; Proposed eCollection eComments Requested; Records of Acquisition and Disposition, Collectors of Firearms
* AGENCY: Bureau of Alcohol, Tobacco, Firearms and Explosives, Department of Justice.
* ACTION: 30-day notice.
* DATES: Comments are encouraged and will be accepted for an additional 30 days until March 27, 2017.
* FOR FURTHER INFORMATION CONTACT: Rinell Lawrence, Firearms Industry Program Branch, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), either by mail at 99 New York Ave. NE., Washington, DC 20226, by email at fipb-informationcollection@atf.gov, or by telephone at 202-648-7190. Written comments and/or suggestions can also be directed to the Office of Management and Budget, Office of Information and Regulatory Affairs, Attention Department of Justice Desk Officer, Washington, DC 20503 or sent to OIRA_submissions@omb.eop.gov.
* SUPPLEMENTARY INFORMATION: …
  – The Title of the Form/Collection: Records of Acquisition and Disposition, Collectors of Firearms. …
  – Form number: None.
  – Component: Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Department of Justice.
  – Abstract: The recordkeeping requirement for this collection is primarily to facilitate ATF’s authority to inquire into the disposition of any firearm during the course of a criminal investigation.
 
   Dated: February 21, 2017.
Melody Braswell, Department Clearance Officer for PRA, U.S. Department of Justice.

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

EXIM_a66. Justice/ATF Seeks Comments on Forms 5630.5R, 5630.5RC, and 5630.7, NFA-Special Occupational Taxes

(Source: Federal Register) [Excerpts.]
 
82 FR 11653: Agency Information Collection Activities; Proposed eCollection eComments Requested; Extension Without Change of a Currently Approved Collection; National Firearms Act (NFA)–Special Occupational Taxes (SOT), (ATF Form 5630.5R, ATF Form 5630.5RC, and ATF Form 5630.7)
* AGENCY: Bureau of Alcohol, Tobacco, Firearms and Explosives, Department of Justice.
* ACTION: 60-Day notice. …
* DATES: Comments are encouraged and will be accepted for 60 days until April 25, 2017.
* FOR FURTHER INFORMATION CONTACT: Gary Schaible, Office of Enforcement Programs and Services, National Firearms Act Division, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) either by mail at 99 New York Ave. NE., Washington, DC 20226, by email at nfaombcomments@atf.gov, or by telephone at 202 648-7165.
* SUPPLEMENTARY INFORMATION: …
  – The Title of the Form/Collection: National Firearms Act (NFA)–
Special Occupational Taxes (SOT).
  – Form number (if applicable): ATF Form 5630.5R, ATF Form 5630.5RC, and ATF Form 5630.7.
  – Component: Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Department of Justice. …
  – Abstract: ATF F 5630.7, NFA Special Tax Registration and Return National Firearms Act is completed and returned by businesses that are subject to Special Occupational Taxes under the National Firearms Act for either initial tax payment or business information changes. This form serves as both a return and a business registration. ATF F 5630.5R, NFA Special Tax Renewal Registration and Return and ATF F 5630.5RC, NFA Special Tax Location Registration Listing are preprinted forms sent to taxpayers for Special Occupation Taxes under the National Firearms Act. Taxpayers validate/correct the information and send the forms back with payment for the applicable tax year. …
 
   Dated: February 21, 2017.
Melody Braswell, Department Clearance Officer for PRA, U.S. Department of Justice.

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

EXIM_a77. State: ACIEP Meeting on 28 Feb in Wash DC Cancelled

(Source: Federal Register)
 
82 FR 11690: Advisory Committee on International Economic Policy Notice of Cancelation of Previously Scheduled Open Meeting
  The meeting of the Advisory Committee on International Economic Policy (ACIEP) originally scheduled from 2:00 until 5:00 p.m., on Tuesday, February 28 in Washington DC at the State Department, 320 21st St NW has been canceled. It is expected that the next ACIEP meeting will be held at the State Department in June.
  The ACIEP serves the U.S. government in a solely advisory capacity, and provides advice concerning topics in international economic policy. Further questions can be directed to Melike Yetken (YetkenMA@State.gov) Designated Federal Officer for the ACIEP.
 
Melike Yetken, Senior Advisor for Corporate Responsibility, Department of State.

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

OGSOTHER GOVERNMENT SOURCES

OGS_a18. Ex/Im Items Scheduled for Publication in Future Federal Register Editions

(Source:
Federal Register)
 
[No items of interest noted today.]  

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

OGS_a02
9. Commerce/BIS: Pelco Inc, to Pay $162,000 To SettleAlleged Antiboycott Violations
(Source: Commerce/BIS)
        
* Respondent: Pelco Inc
* Case No: 16-01
* Charges:
  – 32 Violations of 15 C.F.R. §760.2(a), Refusal To Do Business
  – 34 Violations of 15 C.F.R. §760.5, Failing to Report the Receipt of a Request to Engage in a Restrictive Trade Practice or Foreign Boycott Against a Country Friendly to the United States
* Voluntary Disclosed: P
elco Inc has voluntarily disclosed information concerning certain of its transactions to BIS
* Fine or Civil Settlement: Civil settlement of $162,000
* Debarred or Suspended from Export Transactions: Not if penalty is paid as agreed.
* Date of Order: 17 February 2017
* * * * * * * * * * * * * * * * * * * *

OGS_a2a
10. DHS/CBP Announces ACE Production Outage, 25-26 Feb
(Source: CSMS# 17-000103, 24 Feb 2017.)
 
Please be advised that there will be an ACE PRODUCTION Outage Saturday evening, February 25, 2017 from 2200 ET to 0400 ET, Sunday, February 26, 2017, for infrastructure maintenance activities.
* * * * * * * * * * * * * * * * * * * *

OGS_a3
11. DoD/DSS Posts Memorandum of Understanding Template in OBMS

(Source:
DoD/DSS
)
 
The DSS NISP Authorization Office provides a template for Memorandums of Understanding to facilitate connections between government and contractor systems. This template has the appropriate signature block and references, and is the most up-to-date approved version. The template can be found in the ODAA Bulletin Board within OBMS, under “Headquarters Bulletin Board.” Industry is not required to use the DSS template; however, doing so may expedite the coordination and approval process.

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

OGS_a4
12. Justice: “Eleven Individuals and One Company Charged in Florida With Exporting Prohibited Articles to Syria”
(Source: Justice) [Excerpts.]
 
Ali Caby, a/k/a “Alex Caby,” 40, a U.S. permanent resident currently residing in Bulgaria; Arash Caby, a/k/a “Axel Caby,” 43, of Miami, Florida; and Marjan Caby, 34, of Miami, Florida, were arrested and charged with exporting prohibited articles to Syria, in violation of the Syria trade embargo, commerce regulations and a U.S. Department of Treasury designation based on an Indictment charging eleven individuals and one foreign company. The defendants were charged by indictment for their alleged participation in a conspiracy to violate the International Emergency Economic Powers Act (IEEPA), the Export Administration Regulations (EAR), and the Global Terrorism Sanctions Regulations by exporting dual-use goods, that is, articles that have both civilian and military application. The dual-use goods were exported to Syrian Arab Airlines, the Syrian government’s airline, which is an entity designated and blocked by the U.S. Department of the Treasury’s Office of Foreign Assets Control for transporting weapons and ammunition to Syria in conjunction with Hizballah, a terrorist organization, and the Iranian Revolutionary Guard Corps (IRGC). Also charged in the indictment were Adib Zeno, Rizk Ali, Ammar Al Mounajed, Zhelyaz Andreev, Mihaela Nenova, Lyubka Hristova, Iskren Georgiev, Ivan Sergiev, and Syrian Arab Airlines, a/k/a “Syrian Air.” …
 
Specifically, the defendants are charged with: conspiracy to violate to IEEPA and to defraud the U.S. Government, in violation of Title 18, U.S. Code, Section 371; substantive violations of IEEPA and the EAR, specifically Title 15, Code of Federal Regulations, Part 746.9(a), regarding the Syrian Embargo; smuggling goods from the U.S., in violation of Title 18, United States Code, Section 554(a); submitting false or misleading export information, in violation of Title 13, U.S. Code, Section 305; conspiracy to commit money laundering, in violation of Title 18, U.S. Code, Section1956 (h); and false statements, in violation of Title 18, U.S. Code, Section 1001.
 
According to court documents, Ali Caby ran the Bulgaria office of AW-Tronics, a Miami, Florida export company that was managed by Arash Caby, and which shipped and exported various aircraft parts and equipment to Syrian Arab Airlines. Marjan Caby, AW-Tronics’ export compliance officer and auditor, facilitated these exports by submitting false and misleading electronic export information to federal agencies. All three defendants closely supervised and encouraged subordinate employees of AW-Tronics in the willful exportation of the parts and equipment to Syrian Arab Airlines, whose activities have assisted the Syrian government’s violent crackdown on its people. …
* * * * * * * * * * * * * * * * * * * *

 
DDTC systems including DTrade and EFS will be unavailable to industry from 6:00PM (ET) Friday, February 24 through 12:00PM (ET) Saturday, February 25 due to scheduled system maintenance.
* * * * * * * * * * * * * * * * * * * *

The Export Control Organisation (ECO) has published the latest edition of the consolidated list of strategic military and dual-use items that require export authorisation. The latest version came into force on 22 February 2017.
 
For background on the updates to the consolidated list, please see notice to exporters 2017/02: Export Control Order 2008 amended.
* * * * * * * * * * * * * * * * * * * *

NWSNEWS

 
The Office of Research Compliance at Central Michigan University described efforts to establish an export compliance program. The program would work to ensure research and sensitive information potentially shared with countries the government lists as a “risk” to the U.S. adheres to federal export control policy.
 
Robert Bienkowski, research compliance director, discussed the program at the Academic Senate meeting on Tuesday, Feb. 21. He explained most researchers are unaware of federal export control regulations, and other institutions have faced significant fines – with faculty sometimes charged with jail-time – because the regulations “are not widely understood.”
 
While emphasizing the export compliance program will not add extra burden for most faculty, specific types of research, travel practices and shared information may require a federal license, which the program would help regulate.
 
Bienkowski said export control regulations help the government regulate the flow of sensitive information and technology to certain countries, people, and institutions who are on Export Control lists. Affected faculty are those who want to share information or send things, such as military technology or dangerous bacteria, to certain countries, persons or institutions that have been identified as risks to America.
 
Export control regulations may affect traveling faculty and students and visiting researchers from the countries and institutions identified as a risk.
 
Bienkowski said faculty who travel abroad and spend money might unknowingly pay institutions on the Export Control list, and do so illegally because they didn’t apply for a license.

  “For instance, if I wanted to travel to Iran to study archaeological sites, I would have to spend money to hire assistants and transportation, so spending money there would require a license,” he said.
 
Bienkowski also said issues may arise for visiting researchers from countries considered a risk, depending on the type of research they’re involved with and seminars they attend, especially if the subject is not considered “fundamental.”

Foreign graduate students from countries on the Export Control list also have the same restrictions as visiting researchers.

The list includes people, entire countries, companies and institutions. Some countries included are Libya, Lebanon, Syria, Somalia and Sudan.
 
The risk lists are governed by three sets of regulations: Export administration regulations issued by the Department of Commerce; international trafficking and arms regulations issued by the Department of State, and Office of Foreign Asset Control sanctions issued by the Department of Treasury.
 
  “The purpose of the regulations is to protect the interest of the U.S. by controlling proliferation of military technology and non-military technology that have dual-use,” Bienkowski said. “(Regulations) enforce state opposition to flow of money to embargoed countries, entities and persons.”
 
Most university research is excused from the regulations due to the fundamental research exemption, Bienkowski said, and almost all research at CMU qualifies as fundamental research.

Fundamental Research, he explained, is basic and applied studies that are normally published and shared with the broad scientific community.
 
Faculty and students should be cautious to avoid violating the regulations when their research is not considered fundamental, Bienkowski said. He described the practice of “deemed exports” as a “minefield” that has gotten American researchers penalized in the past.
 
Deemed exports occur when sensitive information or technology is shared with foreign persons in the U.S. that could be considered an export to that person’s home country.

However, CMU is not a major research school and the labs on campus do not work with sensitive items on these lists, he said.
Sen. Maureen Eke expressed concern with the compliance program to the regulations, stating it would affect those who are “transnational.”
 
  “I live in two regions, I am trans-cultural and do a lot of transnational work,” said Eke, a professor of English language and literature. “I hope the university takes into consideration that a number of us were not born in this country. We work overseas. Please think about a policy that is not hostile to the kind of work we do.”
 
Bienkowski said violations of these regulations are rare – CMU has no violations and there have only been seven university violations nationwide during the past 13 years.
 
However, penalties are “severe” and “embarrassing,” Bienkowski said, citing reports of universities being fined $100,000 and researchers being imprisoned up to four years for violations.
Sen. Carolyn Dunn said she supports the idea of CMU coming up with a policy addressing Export Control regulations.
 
  “We need a policy because we want to protect our academic freedom, but at the same time we need to make sure our faculty are traveling safely,” said Dunn, associate vice president for institutional diversity, equity & inclusion.
* * * * * * * * * * * * * * * * * * * *

NWS_a216. Fortune: “ZTE Is Getting a Slightly Longer Reprieve from U.S. Sanctions”
(Source:
Fortune
)
 
Chinese telecom equipment maker ZTE has been granted a slightly longer reprieve from export restrictions imposed by the U.S. government as it seeks to resolve a probe of alleged violations of U.S. sanctions on Iran.
 
The U.S. Commerce Department extended ZTE’s temporary export license until March 29, the agency said in an online posting on Thursday. The license was set to expire on Monday.
 
The extension allows U.S. firms to continue to supply the Chinese company with software, technology, and components despite the restrictions announced in March 2016.
 
But the latest window is smaller than earlier 90-day reprieves granted by the Commerce Department, which keeps the pressure on and may be interpreted in two ways, according to Washington attorney Douglas Jacobson.
 
  “It indicates the final settlement is imminent or is just a stopgap to give the new administration time to decide how they want to proceed,” said Jacobson, who specializes in international trade law and represents a number of U.S. companies that supply ZTE.
 
ZTE said on Feb. 14 it was negotiating with the Commerce Department, the U.S. Treasury Department, and the U.S. Department of Justice to conclude an investigation into its re-exporting American-made items to Iran and other sanctioned countries in violation of U.S. law.
 
It said the anticipated penalties would likely have a material impact on the company’s financial results. ZTE has annual sales of more than $15 billion.

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

NWS_a317. ST&R Trade Report: “Dates and Deadlines: Duty Deferral/Drawback, First Sale, GSP, Import Restraints”
 
Following are highlights of regulatory effective dates and deadlines and federal agency meetings coming up in the next week. …
 
  – Feb 28: USTR annual hearing on IPR protection and enforcement
  – Feb 28: deadline for comments to FMC on request for new rules against unfair port charges
  – Mar 1: deadline for comments to ITC on economic effects of significant U.S. import restraints
  – Mar 3: deadline for comments to CBP on proposal to accept donations to help identify infringing imports
  – Mar 3: deadline for comments to ITC on modifications to GSP coverage

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

NWS_a418. ST&R Trade Report: “OTI Licenses Must be Renewed Every Three Years; First Deadline is May 31”
 
The Federal Maritime Commission has notified ocean transportation intermediaries that it will soon launch its online OTI license renewal process. A total of nearly 5,000 OTIs will need to renew their licenses, a process that will take place over three years with approximately 160 renewals per month. Failure to renew an OTI license could result in its revocation or suspension.
 
OTI license renewal dates will be determined by the last and second-to-last digits of the license number, as follows.
 
Last digit
Must file by the last day of
1
January
2
February
3
March
4
April
5
May
6
June
7
July
8
August
9
September
0
October
 
 
Second-to-last digit
Renewal years
1,2,3
2017
2020
2023
2026
2029
2032
2035
4,5,6
2018
2021
2024
2027
2030
2033
2036
7,8,9,0
2019
2022
2025
2028
2031
2034
2037
 
The FMC states that the first 146 licensees will receive email renewal notifications on March 2, which is 90 days prior to the first renewal deadline of May 31. These notifications will contain instructions as well as a username and password and a link to the renewal site. Once logged in the licensee will have the option of self-completing the renewal or assigning it to a third party (i.e., an attorney or FMC practitioner). A pre-populated form FMC-18 containing data on file will be presented to the user to be confirmed or updated.
 
OTI license renewals will not require a fee or the recertification of the licensee or the existing qualified individual.
* * * * * * * * * * * * * * * * * * * *

NWSCOMMENTARY

COMM_a1
19. G. Novalis: “Export Compliance in 11 Words (Part 9): Monitor!”
 
* Author: Gregory Novalis, Export Compliance Solutions LLC,
 
Once you have an export compliance program in place, continuous monitoring is critically important to provide reasonable assurance of its effectiveness, enable you to make incremental adjustments to changing situations, and show you ways to improve the program’s efficiency. Annual compliance audits and assessments will be limited in their effectiveness and afford inadequate protection unless they are supported and complemented by the ongoing review processes that should be an integral part of compliance management.

 
Congratulations! It took a lot of hard work, and more time than you’d expected, but you’ve finally succeeded in getting a comprehensive export compliance program up and running at your company. You’re satisfied that it’s all there-the works, the whole enchilada, all the compliance essentials we’ve been looking at in this series:
 
  – Risk analysis and planning
  – A thorough manual with written policies and detailed procedures
  – Upper management commitment and involvement
  – Initial and repeated multi-level employee training
  – Clear delineation of roles, responsibilities, and accountability
  – Procedures for jurisdictional determination and product classification
  – Obtaining approval for licenses and agreements
  – Tracking the use of exemptions and exceptions
  – Labeling and marking controlled items and technical data
  – Real-time screening of customers, suppliers, service contractors, business partners, new hires, and other parties
  – Physical security
  – IT security
  – Mandatory recordkeeping and records-retention practices
  – Mandatory reporting to the government agencies
  – Periodic internal and external reviews, with follow-up of findings
 
All good. Sounds fantastic. We’ve got just a few more questions for you before you take off on that well-earned vacation you’ve been looking forward to. Here’s one:
 
What provisions have you made for monitoring the operation of your program? In other words, how do you plan to make sure your policies and procedures continue to be adequate and continue to function properly? And how do you plan to make sure you won’t be the last to know if they aren’t working as they should?
 
In compliance management, as in every other part of life, no matter how carefully you’ve planned and how well you’ve done your homework, there are sure to be some unforeseen challenges. Issues will surface that were not initially identified. A procedure that looked good on paper will be put into practice and turn out to be . . . not so good. Situations and personnel will change without warning, giving rise to a whole new set of problems.
 
Even the best-designed compliance program is bound to require fine-tuning and frequent adjustments in response to:
 
  – Changes in business needs
  – Changes in U.S. export laws and regulations
  – Changes in federal agency enforcement policies
  – Changes in technology
  – Changes in the national economy
  – Changes in the global marketplace
  – Changes in the global threat environment.
 
Yes, the annual risk assessments and compliance audits that you wisely included in your compliance plan are one important tool for coping with those challenges, but periodic audits cannot be the whole solution. All too often compliance audits are conducted too long after non-compliance events have already occurred to allow you to correct the issues and problems they uncover before a great deal of damage has been done.
 
If your company is committing an export violation today, or is about to do so, do you really want to be first apprised of the situation by the annual compliance audit report? Don’t put off tomorrow what can be done today!
 
As a compliance officer, you need windows into your compliance program that allow you to view the current state of your company’s internal processes and see which areas need more attention right now. Periodic company-wide audits and assessments are most effective when they are informed and supplemented by day-to-day and week-to-week feedback from operational management, as well as frequent tests, checks, surveys, and “mini-audits” of specific processes and risk points.
 
Preventing the occurrence of export violations, or at least stopping them before they can multiply, is nearly always less costly and stressful than dealing with their aftermath. Successfully detecting intentional deviations from processes and procedures-such as when an employee purposely ignores or contravenes compliance safeguards for his or her own advantage or convenience-has the added benefit of reinforcing the perception that management prioritizes export compliance, is watching, and will take prompt action when problems occur.
 
That’s undoubtedly why the DDTC’s
Compliance Program Guidelines counsel “internal monitoring” that involves “measurement of effectiveness of day-to-day operations” with “emphasis on validation of full export compliance, including adherence to license and other approval conditions.”
 
It’s also why the BIS’s Office of Exporter Services included “internal and external compliance monitoring,” along with periodic audits, as one of the
Nine Key Elements of an Effective Compliance Program. In the agency’s 145-page handbook for U.S. exporters, Compliance Guidelines: How to Develop an Effective Export Management and Compliance Program and Manual, the BIS recommends “a transaction-level and process-level review of compliance efforts with a special emphasis placed on areas of high risk,” noting that such monitoring can “successfully focus attention at the business-unit level on risk areas at an early stage, affording the opportunity to correct deficiencies before they result in major problems.”
 
The DDTC and BIS guidance documents agree that internal and external monitoring are both important. Every company or organization, in addition to actively monitoring itself, needs outside assurance from an independent third party that its compliance efforts are on the right track.  
 
The following compliance “best practices” also fall under the general rubric of export compliance monitoring:
 
  – Self-monitoring and reporting by operations staff in all export-related departments and divisions of the company on the effectiveness of specific compliance processes and procedures is requested and implemented.
 
  – Timely crosstalk is encouraged among employees in export-related departments, divisions, and branches within the company to ensure that practical compliance experiences and lessons learned are communicated throughout the entire organization, with a view to improving the effectiveness and efficiency of export controls and promoting consistency of procedures.
 
  – Clear and specific internal procedures have been established and communicated to all employees, including contract employees, for the reporting of potential export compliance problems to management, including the option of reporting export violations anonymously through a mailbox, website, or helpline.
 
  – Employees understand that management considers the reporting of suspected export violations to be the duty of each employee and know that they will be protected from retribution or retaliation of any kind if they raise questions or concerns about compliance in good faith.
 
  – On-site end-use monitoring of personnel performing defense services is performed frequently by qualified export compliance staff to ensure that their activities remain within the scope of the relevant export authorization.
 
  – Previously identified export compliance problems or high-risk areas are revisited to ensure that the prescribed corrective actions were implemented and that they have been effective.
 
Unlike banks and financial institutions, who may choose to concentrate their compliance monitoring on those transactions with the highest impact on revenue, exporters of defense articles and services, dual-use commodities, technical data, and controlled technology, when monitoring ITAR, EAR, and OFAC compliance, may sometimes need to focus on business areas that have a relatively small revenue impact but carry a large compliance risk. Manufacturing or distribution operations in a developing country, for example, or exports to new trading partners in a formerly embargoed nation whose U.S. trade sanctions were only recently lifted, might be relatively small now, when measured by current sales or profits, but multiple compliance challenges and the potential for serious penalties may call for close and continuous monitoring.
 
Monitoring day-to-day compliance may seem unexciting, like performing routine maintenance on your car. It undoubtedly requires a significant investment of time, effort, and money, and the benefits may not be immediately evident. But most car owners understand that failure to do so is a sure recipe for disaster. In other words, don’t let procrastination get in the way of success and continuously monitor your compliance program!

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

COMM_a2
20. Gary Stanley’s ECR Tip of the Day
(Source: Defense and Export-Import Update; available by subscription from
gstanley@glstrade.com
)
 
* Author: Gary Stanley, Esq., Global Legal Services, PC, (202) 352-3059,
gstanley@glstrade.com
 
Section 1296 of the National Defense Authorization Act for Fiscal Year 2017 maintains the prohibition on procurement by the U.S. Department of Defense of People’s Republic of China-origin items that meet the definition of goods and services controlled as munitions items when moved to the “600 series” of the Commerce Control List.
* * * * * * * * * * * * * * * * * * * *

COMM_a3
21. R.C. Burns: “Federal Judge Protects Banks from Injured Sailors and Widows”
(Source:
Export Law Blog
. Reprinted by permission.)
 
* Author: R. Clifton Burns, Esq., Bryan Cave LLP, Wash DC,
Clif.Burns@bryancave.com
, 202-508-6067)
 
A recent decision by a federal district court in New York prohibited sailors and their families holding a $314 million judgement against Sudan from collecting any of the judgment from funds that had been wired by a Sudanese bank to various other banks and that were then blocked under the Sudanese Sanctions Regulations.  The judgment arose from Sudan’s participation in Al Qaeda’s bombing of the U.S.S. Cole on October 12, 2000.  Instead, now that the Sudanese Sanctions have been lifted, those funds will go to the banks and not to the sailors and their families.
 
The decision is premised on a highly questionable reading of section 201(a) the Terrorism Risk Insurance Act. That section permits victims of terrorism to execute judgments arising from a terrorist act “against the blocked assets of that terrorist party,” including the blocked assets of “any agency or instrumentality of” that terrorist party.
 
At issue were funds transferred by El Nilein Bank.  The bank was an instrumentality of the Sudanese government when the funds were blocked, which is why they were blocked in the first place, but not at the time the plaintiff sought to attach the assets. The court held that the TRIA did not apply because El Nilein was not an agency of the Sudanese government at the time the plaintiffs attempted to attach the funds and because the blocked funds, under New York law, were the property of the blocking bank and not El Nilein.
 
Oddly, the court reached these conclusions without even citing the definition of “blocked assets” in section 201(d)(2) of the TRIA, a definition which would seem to mandate the exact opposite conclusion.
 
The term “blocked asset” means- (A) any asset seized or frozen by the United States under section 5(b) of the Trading With the Enemy Act (50 U.S.C. App. 5(b)) or under sections 202 and 203 of the International Emergency Economic Powers Act (50 U.S.C. 1701; 1702)
 
As readers of this blog know well, OFAC takes the position that assets can be frozen under IEEPA even if they are not legally owned by the blocked party and are legally owned by another party. It is sufficient that the blocked person has some interest, direct or indirect, including a contingent interest. So, an asset can be a “blocked asset” of a party even if it is not the property of that party.   Moreover, under the court’s analysis, a wire blocked by an intermediate bank can never be levied against under TRIA unless the intermediate bank was itself a blocked party – an absurd result that Congress never could have intended.
 
This definition of “blocked asset” also is inconsistent with the Court’s idea that the blocked assets could not be seized because Nilein Bank was not an agency of Sudan at the time the plaintiffs sought to attach the blocked assets. The definition is, significantly, in the past tense. As a result, under this definition and under OFAC rules, the wires did not become unblocked when Nilein Bank was allegedly privatized. The blocked funds did not cease being the “blocked assets” of an agency of Sudan because of that privatization; they would only cease to be such blocked assets when they were unblocked. Nor is there any conceivable reason why Congress would want to create, as the Court did, a class of blocked assets of unblocked parties that are somehow exempt from the TRIA.
* * * * * * * * * * * * * * * * * * * *

TEEX/IM TRAINING EVENTS & CONFERENCES

TE_a222
. Friday List of Approaching Events

(Sources: Event sponsors.) 
 
Published every Friday or last publication day of the week. Send events to
apbosch@fullcirclecompliance.eu
, composed in the below format:

* DATE: PLACE; “TITLE;” SPONSOR; WEBLINK; CONTACT (email and phone number)
 
Continuously Available Training:
* Executive Masters: “
International Trade Compliance
;” University of Liverpool;
exed@liverpool.ac.uk
;
+44 (0) 20 768 24614
* E-Seminars: “
US Export Controls” / “Defense Trade Controls
;” Export Compliance Training Institute;
danielle@learnexportcompliance.com 
* On-Line: “
Simplified Network Application Process Redesign (SNAP-R)
;” Commerce/BIS; 202-482-2227
* E-Seminars: “
Webinars On-Demand Library
;” Sandler, Travis & Rosenberg, P.A.
 
Training by Date:

*
Feb 27-Apr 3: Santa Ana CA; “
Import Compliance Training Program (Mondays 8am-11am)
;” California Global Trade Logistics Initiative, Orange County Center for International Trade
Development

* Mar 5-6: Dubai UAE; “Trade Compliance in the Middle East;” C5

* Mar 6-8: San Diego CA; “
Basics of Government Contracting
;” Federal Publications Seminars

* Mar 7-10: Orlando; “
‘Partnering for Compliance™’ East Export/Import Control Training and Education Program
;” Partnering for Compliance East;
Ailish@PartneringForCompliance.org
; 321-952-2978 

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

* Mar 8: Webinar; “
GTM Webinar Series Part Two: Product Classification;” Amber Road

* Mar 9: London UK; “
Making Better License Applications
;” UK/BIS Export Control Organisation;
denise.carter@bis.gsi.gov.uk 

* Mar 12-15: Miami; “ICPA Miami Conference;”

International Compliance Professionals Association;
wizard@icpainc.org 

* Mar 13-15: Newport Beach CA; “2017 Winter Back to Basics Conference;” Society for International Affairs

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

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

* Mar 16: Miami FL; “AES Compliance Seminar;” Dept. of Commerce/Census
* Mar 16: Birmingham UK; “
Beginners Workshop
;” UK/BIS Export Control Organisation;
denise.carter@bis.gsi.gov.uk 
* Mar 16: Birmingham UK; “
Making Better License Applications
;” UK/BIS Export Control Organisation;
denise.carter@bis.gsi.gov.uk 
* Mar 16: Birmingham UK; “
Control List Classification – Combined Dual Use and Military
;” UK/BIS Export Control Organisation;
denise.carter@bis.gsi.gov.uk 
*
Mar 16: Webinar; “
Faculty or Consultant? Implications for University Export Compliance
;”
ECTI; danielle@learnexportcompliance.com; 540-433-3977

* Mar 17: Chicago IL; “
Customs Education & Solutions Seminar
;” AAEI; Chris Enyart,
cenyart@aaei.org
, +1-202-857-8009

* Mar 20-22: Orlando FL; “
Basics of Government Contracting
;” Federal Publications Seminars

* Mar 20-23: Singapore; “United States Export Control (EAR/OFAC/ITAR) (for Asia-Pacific and other non-US Companies);” ECTI; jessica@learnexportcompliance.com; 540-433-3977

* Mar 20: Webinar; “
GTM Webinar Series Part Three: License Determination;” Amber Road

* Mar 21: London UK; “
Export Control Symposium 2017
;” Department for International Trade;
denise.carter@trade.gsi.gov.uk 

* Mar 21: Wash DC; “
Hiccup or Hardball: China’s Role in America’s Future
;” American Bar Association

* Mar 21: Webinar; “ Importer Self-Assessment – What It Really Takes;” Sandler, Travis & Rosenberg, P.A.; webinarorganizers@strtrade.com * Mar 22: Detroit MI; “AES Compliance Seminar;” Dept. of Commerce/Census itmd.outreach@census.gov 

* Mar 28-29: San Francisco CA; “7th Advanced Industry Forum on Global Encryption, Cloud & Cyber Export Controls;” American Conference Institute
* Mar 28-29: Scottsdale AZ; “ITAR/EAR Critical Compliance;” Export Compliance Solutions; spalmer@exportcompliancesolutions.com

* Mar 28: Webinar; “
In Uncertain Times, the Only Certainty is Enforcement
;” ECTI;
danielle@learnexportcompliance.com
; 540-433-3977

* Mar 29: London UK; “
Control List Classification – Combined Dual Use and Military
;” UK/BIS Export Control Organisation;
denise.carter@bis.gsi.gov.uk 

*  Mar 29-30: Phoenix/Scottsdale AZ; “Critical Compliance & TAA Workshop;” spalmer@exportcompliancesolutions.com; 866-238-4018 / 410-757-1919
* Apr 3-5: Sterling VA; “
Basics of Government Contracting
;” Federal Publications Seminars

* Apr 3-6: Wash DC; “EAR/OFAC/ITAR Commercial and Military Export Controls/How US Controls Impact Non-US Companies, Affiliates and Transactions, PLUS Other Country Controls Comparison to US (EU & Canada) Seminar;” ECTI; jessica@learnexportcompliance.com; 540-433-3977

* Apr 4: Webinar; “
GTM Webinar Series Part Four: Supply Chain Collaboration;” Amber Road
* Apr 11: Webinar; “
GTM Webinar Series Part Five: Free Trade Agreements;” Amber Road

* Apr 18: Milwaukee WI; “AES Compliance Seminar;” Dept. of Commerce/Census itmd.outreach@census.gov 

* Apr 26: London UK; “
Intermediate Seminar
;” UK/BIS Export Control Organisation;
denise.carter@bis.gsi.gov.uk 
* Apr 27: London UK; “
Beginners Workshop
;” UK/BIS Export Control Organisation;
denise.carter@bis.gsi.gov.uk 
* Apr 27: London UK; “
Making Better License Applications
;” UK/BIS Export Control Organisation;
denise.carter@bis.gsi.gov.uk 

* May 1-4: Las Vegas; “
EAR Export Controls / ITAR Defense Trade Controls Seminar
;” ECTI;
jessica@learnexportcompliance.com
; 540-433-3977

* May 1-2: Tucson AZ; “2017 Spring Conference;” Society for International Affairs
* May 7-9: Toronto; “ICPA Toronto Conference;”
International Compliance Professionals Association;
wizard@icpainc.org 

* May 8-10: San Diego CA; “
Basics of Government Contracting
;” Federal Publications Seminars

* May 10: London UK; “
Control List Classification – Military
;” UK/BIS Export Control Organisation;
denise.carter@bis.gsi.gov.uk 

* May 10: Baltimore MD; “
AES Compliance Seminar
;” Dept. of Commerce/Census Bureau;
itmd.outreach@census.gov 

* May 11: London UK; “
Making Better License Applications
;” UK/BIS Export Control Organisation;
denise.carter@bis.gsi.gov.uk 

* May 15-18: London UK; “United States Export Control (EAR/OFAC/ITAR) Seminar in London (for EU and other non-US Companies);” ECTI; jessica@learnexportcompliance.com; 540-433-3977

* May 17-19: Minneapolis MN; “
Basics of Government Contracting
;” Federal Publications Seminars

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

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

* May 23: Tampa FL; “AES Compliance Seminar;” Dept. of Commerce/Census Bureau; itmd.outreach@census.gov 

* May 24-25: Annapolis MD; “
Advanced ITAR/EAR Compliance: Using Export Controls to Your Advantage
;” 
spalmer@exportcompliancesolutions.com
; 866-238-4018 / 410-757-1919

* Jun 5-7: Boston MA; “
Basics of Government Contracting
;” Federal Publications Seminars

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

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

* Jun 11-13: Dublin IRL; “ICPA Dublin Conference;”

International Compliance Professionals Association;
wizard@icpainc.org 

* Jun 12-15: San Francisco; “
United States Export Control (EAR/OFAC/ITAR) Seminar
;” ECTI;
jessica@learnexportcompliance.com
; 540-433-3977

* Jun 12: Shanghai China; “
5th Advanced China Forum on Import Compliance
;” American Conference Institute

* Jun 13: Philadelphia PA; “AES Compliance Seminar;” Dept. of Commerce/Census Bureau; itmd.outreach@census.gov 

* Jun 14: Kegsworth, Derby UK; “
Intermediate Seminar
;” UK/BIS Export Control Organisation;
denise.carter@bis.gsi.gov.uk 
* Jun 15: Kegsworth, Derby UK; “
Beginners Workshop
;” UK/BIS Export Control Organisation;
denise.carter@bis.gsi.gov.uk 
* Jun 15: Kegsworth, Derby UK; “
Making Better License Applications
;” UK/BIS Export Control Organisation;
denise.carter@bis.gsi.gov.uk 
* Jun 15: Kegsworth, Derby UK; “
Control List Classification – Combined Dual Use and Military
;” UK/BIS Export Control Organisation;
denise.carter@bis.gsi.gov.uk 
* July 11-12: Seattle WA; “ITAR/EAR Boot Camp;” spalmer@exportcompliancesolutions.com; 866-238-4018 / 410-757-1919
* Jul 17-19: Hilton Head Island SC; “
Basics of Government Contracting
;” Federal Publications Seminars
* Aug 14-16: McLean VA; “
Basics of Government Contracting
;” Federal Publications Seminars

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

International Compliance Professionals Association;
wizard@icpainc.org

* Sep 6: Nashville TN; “AES Compliance Seminar;” Dept. of Commerce/Census Bureau; itmd.outreach@census.gov 

* Sep 12-13: Annapolis MD; “ITAR/EAR Boot Camp;” spalmer@exportcompliancesolutions.com; 866-238-4018 / 410-757-1919

* Sep 12-13: Wash DC; “Interactive Export Controls Workshop;” ECTI; jessica@learnexportcompliance.com; 540-433-3977

* Sep 18-20: Las Vegas NV; “
Basics of Government Contracting
;” Federal Publications Seminars

* Oct 2-5: Columbus OH; “University Export Controls Seminar;” ECTI; jessica@learnexportcompliance.com; 540-433-3977

* Oct 12: Boston MA; “AES Compliance Seminar;” Dept. of Commerce/Census Bureau; itmd.outreach@census.gov 

* Oct 22-24: Grapevine TX; “
Annual ICPA Fall Conference
;” International Compliance Professional Association;
Wizard@icpainc.org 

* Oct 23-24: Arlington VA; “

2017 Fall Advanced Conference
;” Society for International Affairs

* Oct 30-Nov 2: Phoenix AZ; “
ITAR Defense Trade Controls / EAR Export Controls Seminar
;” ECTI;
jessica@learnexportcompliance.com
; 540-433-3977

* Nov 6-8: Chicago IL; “
Basics of Government Contracting
;” Federal Publications Seminars

* Nov 7: Norfolk, VA; “AES Compliance Seminar;” Dept. of Commerce/Census Bureau; itmd.outreach@census.gov 

* Dec 5: San Juan PR; “AES Compliance Seminar in Spanish;” Dept. of Commerce/Census Bureau; itmd.outreach@census.gov 

* Dec 6: Wood Ridge NJ; “
AES Compliance Seminar
;” Dept. of Commerce/Census Bureau;
itmd.outreach@census.gov 

* Dec 7: Laredo, TX; “AES Compliance Seminar in Spanish;” Dept. of Commerce/Census Bureau; itmd.outreach@census.gov 

* Dec 11-13: Sterling VA; “
Basics of Government Contracting
;” Federal Publications Seminars

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

ENEDITOR’S NOTES

EN_a123. Bartlett’s Unfamiliar Quotations

(Source: Editor) 

* Chester W. Nimitz (Chester William Nimitz, 24 Feb 1885 – 20 Feb 1966, was an admiral of the United States Navy, and played a major role in the naval history of World War II as Commander in Chief, United States Pacific Fleet. He was the last U.S. officer who served in the 5-star rank of Fleet Admiral.)
  – “God grant me the courage not to give up what I think is right even though I think it is hopeless.”
 
* George William Curtis (24 Feb 1824 – 31 Aug 1892, was an American newspaper editor, writer, and public speaker, an advocate for African American equality and civil rights, and was one of the founders of the Republican Party.)
  – “It is not the ship so much as the skillful sailing that assures the prosperous voyage.”
 
Friday funnies:
 
A man was sitting in a bar and was pretty well oiled at closing time.  He fell on the floor and couldn’t walk out.  So the bartender, a gentle soul, helped him out the door and propped him up against a lamp post, leaving him there. But the man fell again, so he crawled to the next lamp post, couldn’t get up, and so on until he finally got home and collapsed on the porch. He banged on the door. His wife opened the door and said, “You must have really tied one on tonight!” “How did you know that?” he asked. “You left your wheelchair in the bar,” she answered.
  — Joseph Frazier, Portland, OR

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

EN_a224. 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: 27 Jan 2017: 82 FR 8589-8590: Delay of Effective Date for Importations of Certain Vehicles and Engines Subject to Federal Antipollution Emission Standards; and 82 FR 8590: Delay of Effective Date for Toxic Substance Control Act Chemical Substance Import Certification Process Revisions

* 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: 24 Feb 2017: 82 FR 11505-11506: Temporary General License: Extension of Validity

  
*
FOREIGN ASSETS CONTROL REGULATIONS (OFAC FACR)
: 31 CFR, Parts 500-599, Embargoes, Sanctions, Executive Orders
  – Last Amendment: 10 Feb 2017: 
82 FR 10434-10440: Inflation Adjustment of Civil Monetary Penalties 
 
*
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 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: 10 Feb 2017: Harmonized System Update 1701, containing 1,295 ABI records and 293 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: 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.  

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

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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