;

17-0414 Friday “The Daily Bugle”

17-0414 Friday “Daily Bugle”

Friday, 14 April 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

[No items of interest noted today.]  

  1. Ex/Im Items Scheduled for Publication in Future Federal Register Editions 
  2. Commerce/BIS: (No new postings.) 
  3. DHS/CBP Announces ACE PRODUCTION Outage, 15 Apr
  4. DHS/CBP Posts Notice on Required Security Change for All ACE Portal Accounts
  5. DHS/CBP Updates ACE PGA Document
  6. State/DDTC: (No new postings.)
  7. Canada Repeals Sanctions against Côte D’Ivoire and Liberia
  1. Expeditors News: “India Announces Changes Relating to Customs Act”
  2. Indian Express: “US Sees India as Key Nation in Asia Pacific Region: Pentagon”
  3. ST&R Trade Report: “Dates and Deadlines: Buy American, Aluminum Extrusions, CAFTA-DR, Import Assessments”
  4. ST&R Trade Report: “Miscellaneous Trade Bill Report Documents Domestic Production, Objections to Petitions
  5. WorldECR News Alert, 13 Apr
  1. Ammoland: “Former U.S. State Dept Official Comments on Export Compliance Best Practices”
  2. G. Hagen: “Who’s on First-When is an Embargo not an Embargo?”
  3. M. Volkov: “Wells Fargo’s Desperate Need for a Compliance and Business Ethics Function (Part III of III)”
  4. R. Gardenier: “Compliance, Straight Up”
  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 (6 Apr 2017), FACR/OFAC (10 Feb 2017), FTR (15 May 2015), HTSUS (7 Mar 2017), ITAR (11 Jan 2017)
  3. Weekly Highlights of the Daily Bugle Top Stories 

EXIMEX/IM ITEMS FROM TODAY’S FEDERAL REGISTER

EXIM_a1


[No items of interest noted today.]

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

OGSOTHER GOVERNMENT SOURCES

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

(Source:
Federal Register)

* Treasury; Foreign Assets Control Office; NOTICES; Blocking or Unblocking of Persons and Properties [Publication Date: 17 April 2017.]

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

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

(Source:
CSMS #17-000219, 14 Apr 2017)
 
There will be an ACE PRODUCTION Outage Saturday evening, April 15, 2017 from 2300 ET to 0100 ET Sunday, April 16, 2017 for infrastructure maintenance activities.
* * * * * * * * * * * * * * * * * * * *

(Source:
CSMS #17-000217, 14 Apr 2017)
 
Federal Regulations require that sensitive data be protected when being disseminated over the internet. Transport Layer Security (TLS) is the government approved security mechanism to protect sensitive data during internet transmission. Currently, ACE supports versions 1.0, 1.1, and 1.2 of the TLS protocol.
 
On May 1, 2017, U.S. Customs and Border Protection (CBP) will discontinue supporting versions 1.0 and 1.1 of TLS. To comply with government regulations, all ACE Secure Data Portal users are being notified that CBP will be phasing out versions 1.0 and 1.1 of TLS and will only support version 1.2
 
Please note: The ACE Portal will not be accessible to users who operate computers that run operating systems older than Windows 7.
 

For more information about portal system requirements, please visit the “Using the ACE Secure Data Portal” page on CBP.gov/ACE, and scroll down to the bottom of the page.

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

(Source:
CSMS #17-000215, 13 Apr 2017)
 
U.S. Customs and Border Protection (CBP) has updated the Automated Commercial Environment (ACE) Partner Government Agency (PGA) Electronic Filing Status document posted on CBP.gov.
 
To download a copy of the updated ACE PGA Filing Status document, please visit the “ACE Features” page of CBP.gov/ACE, and click on the “PGA Integration” tab.
* * * * * * * * * * * * * * * * * * * *

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

 
The Honourable Chrystia Freeland, Minister of Foreign Affairs, announced today that Canada is repealing its sanctions against Côte d’Ivoire and Liberia under the United Nations Act.

In spring 2016, the United Nations Security Council adopted resolutions 2283 and 2288, which terminated all sanctions against Côte d’Ivoire and Liberia, respectively, as both countries have made considerable progress in terms of peace and stability.

As a member state of the United Nations, Canada welcomed the decisions of the United Nations Security Council and passed the necessary regulations to lift all of Canada’s sanctions against Côte d’Ivoire and Liberia.
 
ASSOCIATED LINKS
 
* * * * * * * * * * * * * * * * * * * *

NWSNEWS

NWS_a1
8
. Expeditors News: “India Announces Changes Relating to Customs Act”

 
On March 31, 2017 the Central Board of Customs and Excise of India (CBEC) announced amendments to Sections 46 and 47 of the Customs Act of 1962 that went into effect on April 1, 2017.
 
The change to Section 46 advises that once goods arrive to the customs station by aircraft, vessel, or vehicle where they are to be cleared, the bills of entry (BoE) must be submitted no later than the day following arrival (excluding holidays). If the entry is not presented within the specified timeframe the Importer, “shall be liable to pay charges… at the rate of” 5,000 Rupees per day for the first 3 days, followed by 10,000 per day.
 
Amendments to Section 47 include changes to the manner of payment of duties and advise that the, “importer shall have to make payment of duty on the same day in case of self-assessed BoE and in case of re-assessment or provisional assessment, within one day after return of BoE.”
 
The Customs notice can be accessed here.
 
The notice for the Gazette of India can be accessed here.

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

 
The US sees India as a pivotal nation for its security in the Asia Pacific region, the Pentagon has said as the Trump administration quietly started the process of implementing the recent designation of India as a “major defence partner”. …
 
A day before Mr. Trump was sworn in as the 45th President of the US, the Department of Commerce federal notification that relaxed India-specific defence export control norms. Under this, the Bureau of Industry and Security (BIS) amended the Export Administration Regulations (EAR) by establishing a licensing policy of general approval for exports or re-exports to or transfers within India of items subject to the EAR. …
 
“India is the only country in the world authorised to receive both military and dual-use items under a VEU programme,” the State Department Spokesperson said in response to a question. …
* * * * * * * * * * * * * * * * * * * *

 
Following are highlights of regulatory effective dates and deadlines and federal agency meetings coming up in the next week. …
 
  – 19 Apr: deadline for comments to USDA on revisions to import requirements for plant pests
  – 19 Apr: deadline for comments to USDA on proposed revision to nutrition labeling requirements for meat and poultry products
  – 19 Apr: deadline for comments to USDA on proposed assessments on imports of organic products
  – 20 Apr: deadline for comments to ITC on potential remedial actions in IPR probe of ATMs
  – 21 Apr: deadline for comments to ITC on markets for digital products and services
  – 21 Apr: deadline for comments to CITA on CAFTA-DR short supply petition on twill weave fabric
* * * * * * * * * * * * * * * * * * * *

 
The Department of Commerce has published a report required as part of the revamped miscellaneous trade bill process approved by Congress in 2016. The MTB temporarily reduces or suspends tariffs paid on imported inputs and products for which there is no or insufficient domestic production and availability.
 
The International Trade Commission has previously gathered MTB petitions, published them online for public comment, and announced the availability of comments submitted for review. For each of the hundreds of petitions submitted, the DOC report documents (a) whether or not domestic production of the subject article exists and, if so, whether a domestic producer of that article objects to the petition; (b) any technical changes to the article description necessary for U.S. Customs and Border Protection to administer the duty suspension or reduction; and (c) possible overlap between petitions and existing antidumping and countervailing duty orders.
 
The ITC will next submit preliminary (in June) and final (in August) reports on the petitions to the House Ways and Means and Senate Finance committees on the petitions received. These reports will take the DOC’s findings into account and contain the ITC’s analysis of each petition, including whether each duty suspension or reduction would result in more than $500,000 in estimated revenue loss and would be available to any person importing the article. The reports will also detail the ITC’s recommendations as to whether each petition should be included in an MTB; should be included with specified technical changes, changes in product scope, or adjustments in the amount of duty reduction; should not be included because the petition does not meet the requirements or the petitioner is not a likely beneficiary; or should not be included for other reasons.
 
Congress will make the final decision regarding those imported articles that will be included in a final MTB.
* * * * * * * * * * * * * * * * * * * *

 
  (1) EU and Japan ramp up North Korea sanctions
  (2) Canada to consider sanctions for violation of human rights
  (3) UK Export Control Organisation revokes military OGELS
  (4) US threatens to impose fresh sanctions on Syria
  (5) UK: Financial sanctions in Policing and Crime Act 2017 now in force
 
[Editor’s Note: To subscribe to WorldECR, the journal of export controls and sanctions, please visit
http://worldecr.com/.]
* * * * * * * * * * * * * * * * * * * *

COMMCOMMENTARY

COMM_a113. Ammoland: “Former U.S. State Dept Official Comments on Export Compliance Best Practices”
(Source:

Ammoland
) [Excerpts.]

Jeff Grody, Executive Director of Orchid Advisors’ Export Services Practice, interviewed former DDTC chief compliance official, Sue Gainor, about export compliance program best practices. The interview provides firearm and ammunition industry executives with her perspective on the International Traffic in Arms (ITAR) compliance practices of DDTC registrants.

Grody: Sue, your former position gives you unique perspective on the compliance risks faced by industry. At a high level, what are DDTC’s expectations regarding registrants’ ITAR compliance programs?


         Gainor: Put simply, DDTC expects registrants to comply with the ITAR. DDTC communicates this expectation and expresses the importance of having well-functioning compliance programs in many ways, such as industry outreach at conferences/speaking engagements, the company visit program, and through all its interactions with the regulated industry. DDTC conducts well over 120 industry outreach events annually and highlights the importance of a good compliance program at most, if not all, of those events. The regulatory goal is for registrants to develop compliance programs that suit their business model not for the government to dictate what these programs should look like. DDTC doesn’t seek to tell the regulated industry how to comply just that it must comply.

Grody: From your perspective, how much does an exporter need to know about the foreign consignees and end users with whom it does business? What can you share about DDTC’s perspective on vetting of international counterparties as an element of exporters’ compliance programs?


         Gainor: Regulators encourage exporters to develop sufficient relationships with their distributors, intermediate consignees, and end-users to be confident those parties are able and willing to comply with the ITAR. Given that they are responsible under Section 127.1(c) of the ITAR for what happens to defense articles and technical data once they’re exported, authorized exporters would be wise to minimize their exposure by ensuring they are dealing with reputable and compliant distributors, intermediaries, and end-users. DDTC encourages exporters to conduct denied party screening as an element of their compliance programs, but such screening shouldn’t be the sum total of exporters’ due diligence. Periodic post-sale checks, for example, are a prudent way to ensure recipients are meeting their obligations. Exporters would be wise to retain records of all due diligence efforts, as DDTC will request those records should it learn of a violation.

Grody: Part of the Government’s enforcement of the ITAR involves checking on end users who receive ITAR-controlled defense articles and technical data from the U.S. to confirm they have not been diverted and are being used in a manner consistent with the export license. The Government calls this the “Blue Lantern” program. How can an exporter, as a private party, uncover problems with its overseas counterparties?


         Gainor: Blue Lantern is the Government’s program for monitoring a small percentage of transactions in the defense trade enterprise. Data gathered through this program allows the Government to have confidence in the overall level of regulatory compliance overseas. DDTC submits an annual Blue Lantern report to Congress. To develop confidence in foreign parties to exports, exporters should develop relationships with foreign parties so they can gauge those parties’ willingness and ability to comply with the ITAR. Exporters may also engage U.S. embassy personnel (e.g., foreign commercial service representatives) for information about local distributors, intermediaries, or end-users. Exporters may also seek similar information from business associations located abroad (e.g., chambers of commerce). Such efforts help exporters ‘know their territory’ and minimize interactions with potential violators.

Grody: Sue, I want to turn now to technology control, in other words, the portion of a registrant’s export compliance program that primarily involves protecting technical data. With technical data, one export compliance risk is exposing technical data to foreign persons in the United States. Even if a manufacturer has good compliance procedures in place for its own employees, the component suppliers, finishing houses, tooling vendors and other third parties who receive technical data to perform their functions may expose the technical data to foreign persons without the manufacturer’s knowledge. What does DDTC expect of manufacturers in this regard?


         Gainor: DDTC encourages registrants to help their suppliers (and distributors, intermediaries, end-users) comply with the ITAR. The ways registrants help their suppliers vary widely, but can include formal or informal information-sharing processes, cooperative discussions about or reviews of supplier compliance programs, and registrant-conducted supplier training. Some registrants are reluctant to help suppliers, fearing such help makes them more liable for any supplier violations. As the regulatory system’s compliance goal is protecting foreign policy and national security, DDTC hopes registrants would contribute to the effort to ensure their suppliers comply.  …

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

 
* Author: Gary Hagen, principal export controls professional, Pacific Northwest National Laboratory. Contact Mr. Hagen here.
 
Who’s on First-When is an Embargo not an Embargo?
 
If you’ve never seen the classic Who’s on First comedy routine, well, then your cultural education is just sadly incomplete.
 
That rapid fire shtick turns on the routine use of double meanings, viz. person names and field positions. The listener is left hanging on by their fingernails and only once they follow the twists and turns in that dialogue do they get the joke and enjoy a good belly laugh.
 
We have recently seen a modern adaptation of the Who’s on First routine play out with regards to double meanings; in this case, when is an embargo not an embargo?
 
The sanctions picture for Sudan is somewhat complex at the moment, finding its origins and its impacts in various federal regulations, executive orders, and other designations. Below are the highlights.
 
INTRO
 
It is important to keep in mind that the US Department of State continues to publish the State Sponsors of Terrorism list. You will readily see that Sudan continues to be one of three designated state sponsors of terrorism. The list had included six countries earlier in this millennium, but Libya, North Korea and Cuba have all been removed from that short list in recent years for various reasons. Three others remain: Sudan, Syria, and Iran. The effect of such a designation is to impose a fairly comprehensive embargo against the designated country. Other than humanitarian relief, little else is authorized in the way of transactions, as a matter of law (sans a specific license from one or more federal agencies). That’s the generic picture, but now for the shtick on Sudan.
 
EXECUTIVE ORDER 13067
 
Executive Order 13067 instituted Sudan sanctions under the Clinton Administration. The EO prohibits the export or reexport, directly or indirectly, to Sudan of any goods, technology (technical data, software, or other information), or services by any U.S. person, wherever located, or requiring the issuance of a license by a federal agency . . . of the facilitation by a U.S. person, including but not limited to brokering activities, of the export or reexports of goods, technology, or services . . . to Sudan from any location . . . or the performance by any U.S. person of any contract, including a financing contract, in support of a . . . governmental project in Sudan; or the grant or extension of credits or loans by any United States person to the Government of Sudan. Whew!
 
EXECUTIVE ORDER 13761
 
However, comma, Executive Order 13761 was issued by the outgoing Obama Administration on January 13, 2017. It provided that if the Secretary of State publishes a notice in the Federal Register on or before July 12, 2017 stipulating that certain criteria have been met by the Government of Sudan, then effective July 12, 2017, sections 1 and 2 of EO 13067 will be revoked. This would provide authorization for most of the activities listed in this article’s paragraph immediately above. Again, this is a delayed implementation, with a caveat.
 
OFAC GENERAL LICENSE
 
But as if that wasn’t enough to get your head spinning, the U.S. Department of the Treasury, Office of Foreign Assets Control followed suit with a General License pertaining to Sudan on January 17, 2017. This final rule issued by OFAC published an amendment to the Sudanese Sanctions Regulations that appears to provide an “all clear” for activities prohibited under the Executive Orders cited above. Although that might be the impression at first glance, attention must be specifically given to Note 2 to 31 CFR 538.540 which states (and I quote in full, with emphasis added):
 

This authorization is effective on January 17, 2017 and
does not eliminate the need to comply with other provisions of 31 CFR chapter V or other applicable provisions of law, including any requirements of agencies
other than the Department of the Treasury’s Office of Foreign Assets Control. Such requirements include the Export Administration Regulations (15 CFR parts 730 through 774) administered by the Bureau of Industry and Security of the Department of Commerce and the International Traffic in Arms Regulations (22 CFR parts 120 through 130) administered by the Department of State.

 
IN CONCLUSION
 
And so what all that says is that if any other U.S. Government Agency requires a license for activities with respect to Sudan, then nothing in the OFAC General License supersedes that requirement. In fact, Commerce does require licenses for all items/information subject to the Export Administration Regulations with respect to Sudan. This is specifically because the Export Administration Regulations also continue to list Sudan as a Terrorist Supporting Country (country group E:1), and is subject to a rather comprehensive embargo for that reason. All shipments of equipment, providing technical assistance or training that releases technical information about controlled goods, to Sudan, from any location, requires a specific license from the US Department of Commerce, Bureau of Industry and Security, the OFAC general license notwithstanding.
 
Recap: So when is an embargo not an embargo? Well, not yet. Get the joke? Me neither.
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COMM_a315
. M. Volkov: “Wells Fargo’s Desperate Need for a Compliance and Business Ethics Function (Part III of III)”

(Source:
Volkov Law Group Blog. Reprinted by permission.)
 
* Author: Michael Volkov, Esq., Volkov Law Group, mvolkov@volkovlaw.com, 240-505-1992.
 
[Editor’s note: This is the final part of Michael Volkov’s trilogy of commentaries on Wells Fargo. The
first and second part were included in the Daily Bugle of Wednesday, 12 April, and Thursday, 13 April 2017.]
 
While reading the independent directors’ report on the Wells Fargo sales incentives scandal, you will be overwhelmed by the feeling of frustration. At the same time, what is described in the report is the extent to which every control function came up against the problem staring them in the face – Wells Fargo’s sales incentive program was out of control.
 
Notwithstanding the 20-20 hindsight pictured in the report, the perfect solution to the problem, and maybe the real way to have avoided the problem all together was fairly simple – an empowered ethics and compliance office.
 
If someone asks you what was the most important lesson learned from the Wells Fargo fiasco, you can confidentially respond – the absence of an independent and empowered compliance function. It is easy to imagine how such a function, if it had a seat at the business table, would have responded to a proposed sales incentive program that rewarded sales staff based on the number of accounts opened rather than focusing on promoting customer service. Numbers of accounts bears no relation to quality of service, and in the end an ethics and compliance program officer would have pointed out the problem with the sales incentives program based on its skewed and illogical incentives.
 
There is no need to scratch your head on this one. Moreover, you can add Wells Fargo to the list of scandals where a robust ethics and compliance function would have had the best chance of preventing the scandal in the first place. An independent compliance function with a regular reporting relationship to the CEO may have woken up former CEO Stumpf, and if not, the Wells Fargo board may have assisted in this process. Just like GM, VW, VimpelCom and Takata, an ethics and compliance function would have been the fail safe against disaster and criminal behavior.
 
The Justice Department’s investigation of Wells Fargo is ongoing and we do not know where the criminal and civil chips may fall. There are plenty of candidates for criminal prosecution, most especially Carrie Tolstedt, who was well aware of the consequences of Wells Fargo’s sales abuse tactics, and brazenly fought off questions and oversight of the Community Banks’ sales program.
 
As we add Wells Fargo to the list of corporate scandals, it would be a mistake to chalk up the sales abuses, resulting sales misconduct, and attempted cover up to a “mistake” in judgment. Instead, the answer is fairly straightforward – had business ethics been empowered and with an appropriate seat at the business table, Wells Fargo would likely have avoided this entire mess.
 
While we look through the rubble of past corporate scandals, it is easy to see how instilling business ethics would inform corporate governance and protect a company from deviating from corporate governance norms. I am consistently amazed at how so many large companies with successful business records ignore the value and necessity for business ethics and compliance. A culture of ethics and compliance is an invaluable asset, and very few companies have demonstrated a commitment to ethics and compliance as a long-term strategy for financial sustainability.
 
Wells Fargo’s existing Values and Principles statement while attractive on paper was never given the deference it deserved, nor was there any serious consideration of how to conduct business in accordance with it Values and Principles statement. To Wells Fargo managers and employees, the disconnect between words and conduct stand as a stark testament to a horrific corporate scandal that resulted in serious harm to customers, employees and Wells Fargo’s reputation.
 
Wells Fargo stands as another testament to the consequences of ignoring ethics and compliance. The damage to its reputation is staggering, and the ability of Wells Fargo to recover will depend on a sustained commitment to ethics and compliance, and careful management of its business practices. In this situation, Wells Fargo would be wise to ensure that ethics and compliance considerations are given appropriate deference and consideration in the future.

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

COMM_a4
16. R. Gardenier: “Compliance, Straight Up”

(Source: BizTimes) [Excerpts.]
 
* Author: Robert Gardenier, President of M.E. Dey & Co. Contact information here.

Supply Chain Compliance: What Importers and Exporters Should Know
 
DWYS, SWYD (aka, “Do what you say, say what you do”) is an aphorism for importers and exporters that defines compliance, as well as the integrity of their supply chain. With product quality, great service and timely responses, integrity is no doubt already a large part of your business.
 
In addition, it’s important to keep in mind that your supply chain’s domestic and international functions are most efficient when established processes are communicated, implemented and understood by all stakeholders. Likewise, as an exporter, adding to net margins by selling overseas must follow processes already in place. Understanding and keeping up-to-date with any changes to trade regulations is no easy task, so here are a few guidelines to follow as an importer and/or exporter to avoid noncompliance and costly mistakes. …

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TEEX/IM TRAINING EVENTS & CONFERENCES

TE_a217
. 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)

#” New listing this week:   
 
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:

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

* Apr 18: Webinar; “
How to Improve Export Compliance with Effective Audits
;” ECTI;
danielle@learnexportcompliance.com
; 540-433-3977

* Apr 20: The Hague, Netherlands; ”
Exportcontrole en Strategische Goederen” (Event in Dutch); Dutch Ministry of Foreign Affairs

* Apr 25: Webinar; ”
Antidumping 101: Minimizing Risk, Maximizing Compliance;” Sandler, Travis & Rosenberg, P.A.;
webinarorganizers@strtrade.com 

# Apr 25: Webinar; “
FCPA Violations – Only a Risk For Big Companies?
;” Robins Kaplan LLP

* 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 
* Apr 28: Wash DC; “
Enforce and Protect Act Workshop
;” Dept. of Homeland Security/Customs and Border Protection

* 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 3: Webinar; “
Building the Business Case for Export Compliance
;” Amber Road

* May 4-5: Aarhus, Denmark; “
Dual-Use Conference 2017 – Drones & Space
;” European Network of Defence-Related Regions

# May 4: Webinar; “
GTM Webinar Series Part Five: Free Trade Agreements
;” Amber Road

* 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 9: Webinar; ”
Exports – New Incentives, Old Rules;” Sandler, Travis & Rosenberg, P.A.;
webinarorganizers@strtrade.com 

* 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 11: Milwaukee WI; “
Wisconsin International Trade Conference
;” MMAC’s World Trade Association

* 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 17: The Hague, Netherlands; ”
Exportcontrole en Strategische Goederen” (Event in Dutch); Dutch Ministry of Foreign Affairs

# May 17: Webinar; “
Best Practices for Automating RPS
;” Amber Road

* May 17: Webinar; ”
Preparing for a Customs Investigation;” Sandler, Travis & Rosenberg, P.A.;
webinarorganizers@strtrade.com 

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

* Mary 23: Chicago IL; ”
2017 Global Trade & Commercial Compliance Update;” Baker McKenzie; Eunkyung Kim Shin, +1 312 861 8211,
eunkyung.kim.shin@bakermckenzie.com 

* 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

* May 24-25: Scottsdale AZ; ”
2017 West Coast Trade Symposium;” Dept. of Homeland Security/Customs and Border Protection

* 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: Frankfurt am Main, Germany; “
BAFA / BIS Export Control and Compliance Update 2
;” Bundesamt für Wirtschaft und Ausfuhrkontrolle  

* 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 
* Jun 21: Brussels, Belgium; “
Export Controls and Economic Sanctions: US & EU Update 2017
;” International Chamber of Commerce Belgium

* 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

* Jul 26-27
: Seattle WA; “
2017 Export Controls Conference
;” Dept. of Commerce/U.S. Commercial Service, Dept. of Homeland Security/Homeland Security Investigations, Seattle University, Dorsey & Whitney LLP

* 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

* Sep 20-22: Houston TX; ”
Advanced Topics in Customs Compliance Conference;” Deleon Trade LLC

# Sep 27-28: Rome, Italy; “
Defence Exports 2017
;” SMi

* 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_a118
. Bartlett’s Unfamiliar Quotations

(Source: Editor) 

*
Arnold J. Toynbee (14 Apr 1889 – 22 Oct 1975, was a British historian, philosopher of history, research professor of International History at the London School of Economics and the University of London and author of numerous books.)
  – “Civilizations die from suicide, not by murder.”
 
*
Leonardo da Vinci (Leonardo di ser Piero da Vinci, 15 Apr 1452 – 2 May 1519, was an Italian polymath whose areas of interest included invention, painting, sculpting, architecture, science, music, mathematics, engineering, literature, anatomy, geology, astronomy, botany, writing, history, and cartography, and he is widely considered one of the greatest painters of all time.)
  – “It had long since come to my attention that people of accomplishment rarely sat back and let things happen to them. They went out and happened to things.” 
  – “Learning never exhausts the mind.”
 
Friday Funnies:
 
* Walking down the street with a friend, a guy says, “I have been having a problem with my eyes. All I can see is spots. Everywhere I look: spots, spots, spots.” His friend asks, “Have you seen a doctor?” “No,” he replies, “just spots.”
  — Matt Groth, Milwaukee, WI
 
* “I was addicted to hokey-pokey, but I turned myself around.”
  — Laura Lyons, Fremont, CA                                         

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

EN_a219. 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 [New effective date: 21 March 2017.]; and 82 FR 8590: Delay of Effective Date for Toxic Substance Control Act Chemical Substance Import Certification Process Revisions
[New effective date: 21 March 2017.]

* 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: 6 Apr 2017: 82 FR 16730-16733: Revisions to the Unverified List (UVL)

  
*
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: 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 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.  

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

EN_a320
. Weekly Highlights of the Daily Bugle Top Stories

(Source: Editor)
 

Review last week’s top Ex/Im stories in “Weekly Highlights of Daily Bugle Top Stories” posted here.

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

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.

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

* TO UNSUBSCRIBE: Use the Safe Unsubscribe link below.

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