;

17-0405 Wednesday “The Daily Bugle”

17-0405 Wednesday “Daily Bugle”

Wednesday, 5 April 2017

TOP
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 
here for free subscription.  Contact us
for advertising inquiries and rates.

  1. President Announces Enhanced Collection and Enforcement of Anti-dumping and Countervailing Duties, and Violations of Trade and Customs Laws 
  2. DHS/CBP Seeks Comments on CBP Forms 3124 and 3124E, Pertaining to Customs Brokers 
  3. DHS/CBP Seeks Comments on CBP Form 247, Cost Submission 
  1. Ex/Im Items Scheduled for Publication in Future Federal Register Editions 
  2. Commerce/BIS: (No new postings.) 
  3. DHS/CBP Posts Updated ACE PGA Documentation  
  4. State/DDTC: (No new postings.) 
  5. EU Implements Regulations Concerning Classification of Certain Goods in the Combined Nomenclature 
  6. EU Amends and Releases Corrigendum to Restrictive Measures Concerning ISIL (Da’esh) and Al-Qaida 
  7. UK/DIT ECO Posts Guidance on Revoked OGELs 
  1. IMV Europe: “New US Export Control Working Groups Meet at Photonics West” 
  2. ST&R Trade Report: “CBP Reviewing Information Collections on Broker Exams and Licenses, Import Costs” 
  3. ST&R Trade Report: “Trade Enforcement Efforts Expected to Increase in Wake of Presidential Directive” 
  1. M. Volkov: “A Strategy for Non-Disclosure of FCPA Violations” 
  2. Gary Stanley’s ECR Tip of the Day 
  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 (29 Mar 2017), FACR/OFAC (10 Feb 2017), FTR (15 May 2015), HTSUS (7 Mar 2017), ITAR (11 Jan 2017) 

EXIMEX/IM ITEMS FROM TODAY’S FEDERAL REGISTER

EXIM_a1

1
. President
Announces 
Enhanced Coll
ection and Enforcement of Anti-
dumping
and
Countervailing Duties
,
and Violations of Trade and Customs Laws
 

(Source:
Federal Register

 

 

82 FR 16719-16720:  Executive Order 13785
of
March 31, 2017; Establishing Enhanced Collection and Enforcement of Anti- dumping and Countervailing Duties and Violations of Trade and Customs Laws
 

 

By the authority vested in me as President by the Constitution and the laws of the United States of America, and in order to promote the efficient and effective administration of United States trade laws, it is hereby ordered as follows:
 

 

Section 1.
Policy
. Importers that unlawfully evade antidumping and countervailing duties expose United States employers to unfair competition and deprive the Federal Government of lawful revenue. As of May 2015, $2.3 billion in antidumping and countervailing duties owed to the Government remained uncollected, often from importers that lack assets located in the United States. It is therefore the policy of the United States to impose appropriate bonding requirements, based on risk assessments, on entries of articles subject to antidumping and countervailing duties, when necessary to protect the revenue of the United States.
 

 

Sec. 2.
Definitions
. For the purposes of this order:
 

  (a)
the
term ”importer” has the meaning given in section 4321 of title 19, United States Code; and
 

  (b)
the
term ”covered importer” means any importer of articles subject to antidumping or countervailing duties for which one of the following is true: U.S. Customs and Border Protection (CBP) has no record of previous imports by the importer; CBP has a record of the importer’s failure to fully pay antidumping or countervailing duties; or CBP has a record of the importer’s failure to pay antidumping or countervailing duties in a timely manner.
 

 

Sec. 3.
Implementation Plan Development
.
Within 90 days of the date of this order, the Secretary of Homeland Security shall, in consultation with the Secretary of the Treasury, the Secretary of Commerce, and the United States Trade Representative, develop a plan that would require covered importers that, based on a risk assessment conducted by CBP, pose a risk to the revenue of the United States, to provide security for antidumping and countervailing duty liability through bonds and other legal measures, and also would identify other appropriate enforcement measures. This plan shall be consistent with the requirements of section 4321 and section 1623 of title 19, United States Code, and corresponding regulations.
 

 

Sec. 4.
Trade and Suspected Customs Law Violations Enforcement
. (a) Within 90 days of the date of this order, the Secretary of Homeland Security, through the Commissioner of CBP, shall develop and implement a strategy and plan for combating violations of United States trade and customs laws for goods and for enabling interdiction and disposal, including through methods other than seizure, of inadmissible merchandise entering through any mode of transportation, to the extent authorized by law.
 

  (b) To ensure the timely and efficient enforcement of laws protecting Intellectual Property Rights (IPR) holders from the importation of counterfeit goods, the Secretary of the Treasury and the Secretary of Homeland Security shall take all appropriate steps, including rulemaking if necessary, to ensure that CBP can, consistent with law, share with rights holders:
 

    (
i
)
any
information necessary to determine whether there has been an IPR infringement or violation; and
 

    (ii)
any
information regarding merchandise voluntarily abandoned, as de- fined in section 127.12 of title 19, Code of Federal Regulations, before seizure, if the Commissioner of CBP reasonably believes that the successful importation of the merchandise would have violated United States trade laws.
 

 

Sec. 5.
Priority Enforcement
. The Attorney General, in consultation with the Secretary of Homeland Security, shall develop recommended prosecution practices and allocate appropriate resources to ensure that Federal
prosecu
– tors accord a high priority to prosecuting significant offenses related to violations of trade laws.
 

 

Sec. 6.
General Provisions
. (a) Nothing in this order shall be construed to impair or otherwise affect:
 

    (
i
)
the
authority granted by law to an executive department or agency, or the head thereof; or
 

    (ii)
the
functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals.
 

  (b) This order shall be implemented consistent with applicable law and subject to the availability of appropriations.
 

  (c) This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.
 

 

(Presidential Sig.)
 

 

THE WHITE HOUSE,
 

March 31, 2017.  

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

EXIM_a2

2
.
DHS/CBP
Seeks Comments 
on CBP 
Forms 
3124 and 3124E
,
 Pertaining to Customs Brokers
 

(Source:
Federal Register
)
[Excerpts.]
 

 

82 FR 16603-16604: Agency Information Collection Activities: CBP Regulations Pertaining to Customs Brokers
 

 

* AGENCY: U.S. Customs and Border Protection (CBP), Department of Homeland Security.
 

* ACTION: 60-Day notice and request for comments
;
extension of an existing collection of information.

 

* ADDRESSES: Written comments and/or suggestions regarding the item(s) contained in this notice must include the OMB Control Number 1651-0034 in the subject line and the agency name. To avoid duplicate submissions, please use only one of the following methods to submit comments:
 

  (1) Email. Submit comments to:
CBP_PRA@cbp.dhs.gov

 

  (2) Mail. Submit written comments to CBP Paperwork Reduction Act Officer, U.S. Customs and Border Protection, Office of Trade, Regulations and Rulings, Economic Impact Analysis Branch, 90 K Street NE
.,
10th Floor, Washington, DC 20229-1177.
 

* FOR FURTHER INFORMATION CONTACT: Requests for additional PRA information should be directed to CBP Paperwork Reduction Act Officer, U.S. Customs and Border Protection, Office of Trade, Regulations and Rulings, Economic Impact Analysis Branch, 90 K Street NE
.,
10th Floor, Washington, DC 20229-1177, or via email
CBP_PRA@cbp.dhs.gov
. Please note that the contact information provided here is solely for questions regarding this notice. Individuals seeking information about other CBP programs should contact the CBP National Customer Service Center at 877-227-5511, (TTY) 1-800- 877-8339, or
CBP Web site

 

* SUPPLEMENTARY INFORMATION:

 

 

Title: CBP Regulations Pertaining to Customs Brokers (19 CFR part 111).
 

 

Form Numbers: CBP Forms 3124 and 3124E.
 

 

Current Actions: CBP proposes to extend the expiration date of this information collection. There is no change to the burden hours or the information collected.

 

 

 
Abstract: Section 641 of the Tariff Act of 1930, as amended (19 U.S.C. 1641), and Part 111 of the CBP regulations govern the licensing and conduct of customs brokers. Specifically, an individual who wishes to take the broker exam must complete CBP Form 3124E, “Application for Customs Broker License Exam,” or to apply for a broker license, CBP Form 3124, “Application for Customs Broker License.” The procedures to request a local or national broker permit can be found in 19 CFR 111.19, and a triennial report is required under 19 CFR 111.30. CBP Forms 3124 and 3124E may be found on the Forms page on CBP.gov available
here
. Further information about the customs broker exam and how to apply for it may be found
here
.

 

 

  Dated: March 31, 2017.
 

Seth
Renkema
, Branch Chief, Economic Impact Analysis Branch, U.S. Customs and Border Protection.

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

EXIM_a3

3
. DHS/CBP
Seeks Comments on CBP Form 247,
Cost Submission
 

(Source:
Federal Register

[Excerpts.]
 

 

82 FR 16602-16603: Agency Information Collection Activities: Cost Submission
 

 

* AGENCY: U.S. Customs and Border Protection (CBP), Department of Homeland Security.
 

* ACTION: 60-Day notice and request for comments
;
extension of an existing collection of information.

 

* ADDRESSES: Written comments and/or suggestions regarding the item(s) contained in this notice must include the OMB Control Number 1651-0028 in the subject line and the agency name. To avoid duplicate submissions, please use only one of the following methods to submit comments:
 

  (1) Email. Submit comments to:
CBP_PRA@cbp.dhs.gov

 

  (2) Mail. Submit written comments to CBP Paperwork Reduction Act Officer, U.S. Customs and Border Protection, Office of Trade, Regulations and Rulings, Economic Impact Analysis Branch, 90 K Street NE
.,
10th Floor, Washington, DC 20229-1177.
 

* FOR FURTHER INFORMATION CONTACT: Requests for additional PRA information should be directed to CBP Paperwork Reduction Act Officer, U.S. Customs and Border Protection, Office of Trade, Regulations and Rulings, Economic Impact Analysis Branch, 90 K Street NE
.,
10th Floor, Washington, DC 20229-1177, or via email
CBP_PRA@cbp.dhs.gov
. Please note that the contact information provided here is solely for questions regarding this notice. Individuals seeking information about other CBP programs should contact the CBP National Customer Service Center at 877-227-5511, (TTY) 1-800-877-8339, or
CBP Web site

 

* SUPPLEMENTARY INFORMATION:

 

 

Title: Cost Submission.

 

 

Form Number: CBP Form 247.
 

 
 

Current Actions: CBP proposes to extend the expiration date of this information collection. There is no change to the burden hours or to the information collected.

 

 

Abstract: The information collected on CBP Form 247, Cost Submission, is used by CBP to assist in correctly calculating the duty on imported merchandise. This form includes details on actual costs and helps CBP determine which costs are dutiable and which are not. This collection of information is provided for by subheadings 9801.00.10, 9802.00.40, 9802.00.50, 9802.00.60 and 9802.00.80 of the Harmonized Tariff Schedule of the United States (HTSUS), and by 19 U.S.C. 1508 through 1509, 19 CFR 10.11-10.24, 19 CFR 141.88 and 19 CFR 152.106. CBP Form 247 may be found on the Forms page on CBP.gov,
here

 

 

  Dated: March 31, 2017.
 

Seth
Renkema
, Branch Chief, Economic Impact Analysis Branch, U.S. Customs and Border Protection.

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

OGSOTHER GOVERNMENT SOURCES

OGS_a14. Ex/Im Items Scheduled for Publication in Future Federal Register Editions
(Source: Federal Register)

* Commerce; Industry and Security Bureau; RULES; Revisions to the Unverified List [Publication Date: 6 April 2017.]
 
 
* Commerce; Industry and Security Bureau; NOTICES; Denials of Export Privileges [Publication Date: 6 April 2017.]:
  – Amin Al-Baroudi a/k/a Abu al-Jud
  – Juan Jose Estrada
  – Sihai Cheng a/k/a Alex Cheng a/k/a Chun Hai Cheng
  – Song II Kim a/k/a Kim Song Il
 
* Treasury; Foreign Assets Control Office; NOTICES; Blocking or Unblocking of Persons and Properties [Publication Date: 6 April 2017.]

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

(Source: Commerce/BIS)

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

OGS_36.

DHS/CBP Posts Updated ACE PGA Documentation Posted

(Source:
CSMS# 17-000197, 5 Apr 2017.)
 
Trade Policy Updates
 
U.S. Customs and Border Protection (CBP) has posted an updated Partner Government Agency (PGA) Automated Commercial Environment (ACE) CBP and Trade Automated Interface Requirements (CATAIR) chapter on CBP.gov. Details for the updated ACE PGA CATAIR chapter are below:
 
  – Stand-alone filing for Partner Government Agency data (PE/PX) – In the PE10 record, in NOTE 6, entry type codes 6 and 22 have been removed, since they are not subject to Prior Notice requirements.
 
 
To download a copy of the updated ACE PGA documentation, please visit the “ACE Automated Broker Interface (ABI) CATAIR” page of CBP.gov/ACE. You may also copy and paste the above URL to your internet browser. 

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

OGS_aa47. 
State/DDTC: (No new postings.)

(Source:
State/DDTC)

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

OGS_aa58. EU Implements Regulations Concerning Classification of Certain Goods in the Combined Nomenclature

 
Regulations:
  –
Commission Implementing Regulation (EU) 2017/635 of 30 March 2017 concerning the classification of certain goods in the Combined Nomenclature

  – Commission Implementing Regulation (EU) 2017/636 of 30 March 2017 concerning the classification of certain goods in the Combined Nomenclature 

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

OGS_aa69.

EU Amends and Releases Corrigendum to Restrictive Measures Concerning ISIL (Da’esh) and Al-Qaida

 
Regulations:
  –
Commission Implementing Regulation (EU) 2017/637 of 4 April 2017 amending for the 265th time Council Regulation (EC) No 881/2002 imposing certain specific restrictive measures directed against certain persons and entities associated with the ISIL (Da’esh) and Al-Qaeda organisations
 
Corrigenda:
  –
Corrigendum to Commission Implementing Regulation (EU) 2017/326 of 24 February 2017 amending for the 261st time Council Regulation (EC) No 881/2002 imposing certain specific restrictive measures directed against certain persons and entities associated with the ISIL (Da’esh) and Al-Qaida organisations (
OJ L 49, 25.2.2017)

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

OGS_aa710.

UK/DIT ECO Posts Guidance on Revoked OGELs

(Source:
UK/DIT
ECO)   
 
The Export Control Organisation (ECO) of the UK Department of International Trade (DIT) has published the following guidance on various Revoked Open General Export Licenses (OGELs). 
 
 
Below are the previous, revoked versions of the printed circuit boards and components for military goods licence. These documents are provided as a reference for exporters.
 
 
The
current and in-force version of this licence allows, subject to certain conditions, the export or transfer of printed circuit boards (PCBs) and components for military goods.
 
 
Below are the previous, revoked versions of this licence. These documents are provided as a reference for exporters.
 
 
The 
current and in-force version of this licence allows, subject to certain conditions, the export or transfer of goods, software or technology from the UK to any of the countries listed in the licence.
 
 
Below are the previous, revoked versions of this licence. These documents are provided as a reference for exporters.
 
 
The
current and in-force version of this licence allows, subject to certain conditions, the export or transfer of goods, software or technology from the UK to any of the countries listed in the licence.
 
 
Below are the previous, revoked versions of this licence. These documents are provided as a reference for exporters.
 
 
The
current and in-force version of this licence allows, subject to certain conditions, the export or transfer of goods, software or technology from the UK to any of the countries listed in the licence.
 
 
Below are the previous, revoked versions of this licence. These documents are provided as a reference for exporters.
 
 
The
current and in-force version of this licence allows, subject to certain conditions, the export or transfer of goods, software or technology from the UK to any of the countries listed in the licence.
 
 
Below are the previous, revoked versions of this licence. These documents are provided as a reference for exporters.
 
 
The
current and in-force version of this licence allows, subject to certain conditions, the export or transfer of goods, software or technology from the UK to any of the countries listed in the licence.

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

NWSNEWS

NWS_a111.

IMV Europe: “New US Export Control Working Groups Meet at Photonics West”

 
… SPIE, the international society for optics and photonics, in conjunction with the US Department of Commerce Sensors and Instrumentation Technical Advisory Committee (SITAC), have formed three export control working groups: detectors and cameras, which covers uncooled, cooled, shortwave infrared (SWIR), crycoolers, readout integrated circuits (ROICs), and image intensifiers; lasers; and lenses and optics. The first meeting of these groups was at Photonics West in San Francisco, California on 1 February 2017.
 
The working groups are comprised of representatives from industry and universities, with a purpose to assist in identifying areas in need of improvement in the export control system, as well as develop proposals to make a change. The groups will also serve as a resource to the US government to provide advice regarding potential regulatory changes. … 

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

NWS_a212.

ST&R Trade Report: “CBP Reviewing Information Collections on Broker Exams and Licenses, Import Costs”

 
U.S. Customs and Border Protection is soliciting comments through June 5 on the proposed extension of the following information collections.
 
Broker Exams and Licenses. An individual who wishes to take the customs broker examination or apply for a broker license must complete, as applicable, CBP Form 3124E, Application for Customs Broker License Exam, or CBP Form 3124, Application for Customs Broker License. The procedures to request a local or national broker permit can be found in 19 CFR 111.19 and a triennial report is required under 19 CFR 111.30.
 

Cost Submission.
CBP Form 247, Cost Submission, includes details on the actual costs of imported goods and helps CBP determine which costs are dutiable and which are not. 

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

NWS_a3
13. ST&R Trade Report: “Trade Enforcement Efforts Expected to Increase in Wake of Presidential Directive”

 
President Trump has issued an executive order directing federal authorities to step up the collection of antidumping and countervailing duties and the prosecution of trade and customs law violations. Importers should act quickly to review their processes, practices, and entry data to identify potential trade compliance risks. Reporting and correcting any violations that may be discovered could mitigate negative consequences.
 
AD/CV Duties. In August 2016 the Government Accountability Office reported that $2.3 billion in AD and CV duties went uncollected over the previous 15 years, that 20 importers accounted for about half that amount, and that about 95 percent of the total was associated with importers of goods from China. The GAO said that U.S. Customs and Border Protection was taking steps to improve AD/CV duty collections, such as revising bonding formulas and centralizing the management of bonds, but lacked key information that could aid those efforts. The report also noted the challenge posed by the United States’ complex and retrospective AD/CV duty collection system.
 
The new EO focuses on strengthening bonding requirements for importers of goods subject to AD or CV duties for which CBP has no record of previous imports or has a record of the importer’s failure to pay AD/CV duties in full or on time. If a CBP risk assessment identifies any such importer as posing a risk to U.S. revenue, that importer would have to provide security for AD/CV duty liability through bonds and other legal measures.
 
House Ways and Means Committee Chair Kevin Brady, R-Texas, said this provision “operationalizes new tools Congress put in place in the customs enforcement bill” enacted in 2016. Nicole Bivens Collinson, president, international trade and government relations, for Sandler, Travis & Rosenberg, said CBP has already reached out to trade groups to discuss how to meet the new requirement.
 
Trade and Customs Law Violations. The EO directs the Department of Homeland Security, through CBP, to develop and implement a strategy and plan for combating violations of U.S. trade and customs laws for goods and for enabling interdiction and disposal of inadmissible merchandise entering through any mode of transportation, including through methods other than seizure.
 
Further, the EO enhances CBP’s authorization to share with intellectual property rights holders any information (1) necessary to determine whether there has been an IPR infringement or violation or (2) regarding goods voluntarily abandoned prior to seizure whose importation would have violated U.S. trade laws.
 
Finally, the EO directs the Justice Department to work with DHS to develop recommended prosecution practices and allocate appropriate resources to ensure that federal prosecutors accord a high priority to (apparently criminal) prosecution of significant offenses related to trade law violations.
 
For more information on these directives and how your company should respond, please contact Larry Ordet at (305) 894-1003 or at
lordet@strtrade.com

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

COMMCOMMENTARY

COMM_a114.

M. Volkov: “A Strategy for Non-Disclosure of FCPA Violations”

(Source:
Volkov Law Group Blog. Reprinted by permission.)
 
* Author: Michael Volkov, Esq., Volkov Law Group,
mvolkov@volkovlaw.com, 240-505-1992.
 
We all understand that issues are not black and white, meaning there are areas of gray when analysis and cost-benefits need to be weighed. Lawyers are regularly identifying legal risks and applying such risks to specific courses of action. Depending on the countervailing considerations, lawyers can recommend moving forward in the face of a specific risk.
 
Much has been written (including on this blog) about the calculation to voluntarily disclose potential FCPA violations to the Justice Department and the SEC. The Justice Department’s FCPA Pilot Program is designed to encourage companies to voluntarily disclose and cooperate with the government in the hopes of earning a 50 percent reduction from the bottom of the fine range (or even a declination). We do not know yet whether the FCPA Pilot Program has had any appreciable impact on the number of companies voluntarily disclosing potential violations to the government.
 
In the ordinary course of business, companies may face situations where it has to determine whether to cross the DOJ threshold and disclose potential FCPA violations. One important point has to be understood – once a company chooses to disclose, it has to fully cooperate, remediate and assist the government to determine the full nature and extent of any violations. Additionally, the company has to turn over all information concerning culpable individuals. In doing so, the company effectively cedes control of its destiny over this FCPA issue to the Justice Department.
 
The Justice Department decides whether a fine has to be paid and how much of a fine; whether remediation has been sufficient and whether a corporate monitor is required. The company has very little power except its ability to advocate and persuade the Justice Department. It is extremely difficult, if not impossible, for a company to walk away from a possible settlement after the company has cooperated. A company will not suddenly pull out and go to trial.
 
In determining whether to voluntarily disclose to the government, the company has to weigh the risks of detection and the possible outcome of such a course. For example, a company may choose not to disclose, accept the risk of detection, and then decide to cooperate after it is detected. The company cannot seek the benefits of the FCPA Pilot Program. However, it can still earn credit for cooperation and remediation.
 
Voluntary disclosure can be the preferred strategy when faced w a multi-country or multi-region bribery violations.  A relatively “minor” set of violations contained to one country and involving non-significant amounts of money may be appropriate for a non-disclosure strategy.
 
If the company chooses not to disclose, the company should take a number of affirmative steps.
 
First, the company has to investigate the potential FCPA violations to ensure that the conduct has ceased, and to define the nature and extent of the violations. If the conduct involves third parties, the company has to audit the third party so it has a complete picture of the third party’s involvement.
 
The company’s investigation has to be conducted under the protection of attorney-client privilege. Given the importance of the investigation, the matter has to be handled carefully and privilege maintained.
 
Second, the company has to discipline all managers and employees who were involved in the bribery scheme. If there are any third parties involved – agents or distributors – they should be terminated pursuant to contractual provisions.
 
Third, the company has to remediate its compliance program and ensure that enhancements are implemented to prevent such conduct from recurring. The enhancements should be comprehensive and specifically tailored to the root cause of the violations. The Justice Department has made clear that the compliance enhancements should be tailored to the root cause analysis of the violations. An aggressive auditing program should be tailored to review the matter and continuing activities to ensure that no FCPA violations have recurred.
 
These basic steps obviously are very general in nature. The specific circumstances relating to FCPA violations can require changes in the above strategy.
 
One final important point to follow a strategy of non-disclosure is the need to document each step in the process, the review of the actions and appropriate approvals for each step. Such a review process usually will involve the audit committee.
 
The goal of a non-disclosure strategy is to put the company in the exact position it would be in the absence of a voluntary disclosure. In other words, the company should complete an internal investigation, discipline responsible employees and third parties who participated in the scheme, remediate the violations, and document every step that the company takes to respond to the situation. If the Justice Department discovers the violations and seeks information about the potential violations, the company is in a positive position to respond to the inquiries.

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

COMM_a215.

Gary Stanley’s ECR Tip of the Day

 
* Author: Gary Stanley, Esq., Global Legal Services, PC, (202) 352-3059,
gstanley@glstrade.com
 
At this time, supplemental information in support of an electronically submitted Commodity Jurisdiction Request cannot be uploaded electronically. 
There are two methods for providing additional information. 
The first is to send the information via open e-mail to
DDTCResponseTeam@state.gov
. Include in the Subject line the CJ case number. In the body of the e-mail indicate the DS-4076 Block number to which the information corresponds, and reason/s for supplemental submission such as another USG agency requested the information.
 
If the information includes proprietary information that you would prefer not to send via open e-mail, the second method is to deliver to DDTC Policy the information as a PDF on a CD, properly marked to include CJ case number, CJ Block number to which the information corresponds, and reason/s for supplemental submission such as another USG agency requested the information. The proper delivery address is:
 
Regular Mail
 
Directorate of Defense Trade Controls
Attn: DTCP
PM/DDTC, SA-1, 13th Floor
2401 E Street, N.W.
U.S. Department of State
Washington, DC 20522-0113
 
Overnight Courier
      
Directorate of Defense Trade Controls
Attn: DTCP
U.S. Department of State
PM/DDTC, SA-1, 13th Floor
2401 E Street, N.W.
Washington, DC 20037
 
In either case, the information will be downloaded into the official electronic CJ file and distributed to the interagency working groups. Only information formally submitted to DDTC can be considered in the CJ review process.

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

ENEDITOR’S NOTES


Booker T. Washington
(
Booker Taliaferro Washington 5 Apr 1856 – 14 Nov 1915, was an American educator, author, orator, and advisor to presidents of the United States. Between 1890 and 1915, Washington was the dominant leader in the African-American community.
)
  – “Nothing ever comes to one, that is worth having, except as a result of hard work.”
  – “Character is power.”
 

Thomas Hobbes
(
5 Apr 1588 – 4 Dec 1679, was an English philosopher who is considered one of the founders of modern political philosophy. Hobbes is best known for his 1651 book Leviathan, which established the social contract theory that has served as the foundation for most later Western political philosophy.)
  – “It is not wisdom but Authority that makes a law.”
 

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

EN_a317
. 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: 29 Mar 2017: 82 FR 15461-15463: Removal of Certain Persons From the Entity List; and 82 FR 15458-15461: Removal of Certain Persons From the Entity List; Addition of a Person to the Entity List; and EAR Conforming Change.

  
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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. 
 
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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.
 
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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: 7 Mar 2017: Harmonized System Update 1702, containing 1,754 ABI records and 360 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 8 Mar 2017) of the ITAR is 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 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.

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