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17-0428 Friday “Daily Bugle”

17-0428 Friday “Daily Bugle”

Friday, 28 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. Commerce/Census Updates ACE System Following 19 Apr FTR Final Rule
  4. DHS/CBP Announces ACE Certification Outage, 29-30 Apr
  5. DHS/CBP Announces Biweekly Scheduling of ACE Status Update Call
  6. DHS/ICE: Four Arizona Residents Receive Lengthy Prison Terms for Exporting Firearms and Ammunition to Hong Kong
  7. Justice: California Bay Area Residents Charged In Scheme To Export Components For Production Of Night Vision Rifle Scopes
  8. Justice: Singapore Man Sentenced to 40 Months in Prison for Plot Involving Exports to Iran of U.S. Components
  9. State/DDTC Posts Address and Name Change Announcements
  10. Treasury/OFAC Issues Belarus General License No. 2C
  11. Australian DFAT Seeks Comments on Review of Existing Autonomous Sanctions Listings
  12. German BAFA Publishes New Export Control Newsletter, Publishes New General Licenses and Announces Export Control and Compliance Update 2017
  13. Japanese METI Conducts Survey on Company Data and Contract Management, Announces Japan-Vietnam Dialogue on Distribution and Logistics
  1. AD: “Silently Conducting Business with Bogeyman Kim Jong-Un”
  2. Reuters: “EU on Course to Renew Russia Sanctions Barring Le Pen Election Win”
  3. ST&R Trade Report: “Dates and Deadlines: Trade Preferences, Import Costs, Apparel Classification, Supply Chains”
  4. ST&R Trade Report: “U.S. Won’t Terminate NAFTA “At This Time,” White House Says”
  1. M. Lester: “Lithuanian Parliament Introduces Magnitsky Sanctions Bill”
  2. R.S. Metzger: “Navigating Defense Department Cyber Rules”
  3. Gary Stanley’s ECR Tip of the Day
  4. R.C. Burns: “The Gray Lady Seems Pretty Gray About Export Law”
  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 (18 Apr 2017), FACR/OFAC (10 Feb 2017), FTR (19 Apr 2017), HTSUS (26 Apr 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.]

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OGSOTHER GOVERNMENT SOURCES

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

(Source:
Federal Register)
* U.S. Customs and Border Protection; NOTICES; Agency Information Collection Activities; Proposals, Submissions, and Approvals [Publication Dates: 1 May 2017]:
  – Entry of Articles for Exhibition
  – Temporary Scientific or Educational Purposes
  – Transportation Entry and Manifest of Goods Subject to CBP Inspection and Permit 

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3.

Commerce/Census Updates ACE System Following 19 Apr FTR Final Rule

 
As a follow-up to the publication of the “Final Rule – Foreign Trade Regulations: Clarification on Filing Requirements” published on Wednesday, April 19th, the following system updates have been made:
 
The Original ITN is available in the:
 
  – Automated Export System (AES) and in the AESDirect application
  – List of data elements that can be added to a customized AES-201 “Filer Transactions Report” and the AES-202 “USPPI Transactions Report”.
 
The AES-203 “USPPI Agent-Filed Routed Transactions” Report in ACE has been updated to include the Filer Name, Internal Transaction Number (ITN) and Date of Export. Please find the Final Rule in its entirety at
here
 
For further information or questions about the FTR, contact the
Trade Regulations Branch (TRB) of the International Trade Management Division on our International Trade Call Center at 800-549-0595, Option 3.
 
  – Email:
itmd.askregs@census.gov                        
  – Online:
census.gov/trade            
 
The entire FTR along with other information, including a list of frequently asked questions, can be found on
our website.

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4.

DHS/CBP Announces ACE Certification Outage, 29-30 Apr

(Source:
CSMS# 17-000249, 28 April 2017.)
 
New ACE Programming
 
There will be an ACE PRODUCTION Outage Saturday evening, April 29, 2017 from 2200 ET to 0400 ET Sunday, April 30, 2017 for ACE infrastructure maintenance.

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5.

DHS/CBP Announces Biweekly Scheduling of ACE Status Update Call

(Source:
CSMS# 17-000247, 27 Apr 2017.)
 
Automated Broker Interface
 
Effective today, the ACE Status Update Call will now be held biweekly (every other week) on Thursdays from 2-3pm EST. Moving forward, CBP will continue to evaluate the frequency of the call and will adjust, as necessary.
 
To join the call, please use the following dial-in information: (877) 336-1828 Pass Code: 6124214.

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6.

DHS/ICE: Four Arizona Residents Receive Lengthy Prison Terms for Exporting Firearms and Ammunition to Hong Kong

(Source:
DHS/ICE) [Excerpts.]
 
Four Arizona residents have been sentenced to lengthy prison terms for their role in a scheme to illegally export weapons and ammunition to Hong Kong, following a multiagency probe that included U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
 
Peter Steve Plesinger, 55, of Sahuarita, and Stephen Edward Smith, 63, of Tucson, were sentenced Wednesday by U.S. District Judge James A. Soto. Plesinger received a term of 87 months. Smith was sentenced to 102 months in prison. Both men had previously pleaded guilty to exporting munitions to Hong Kong, dealing firearms without a license, and money laundering. Two other defendants, Irina Cvetkovic and Earl Richmond, both of Sahuarita, were charged and convicted for lessor roles in the conspiracy.
 
In 2014, law enforcement authorities in Hong Kong intercepted a package containing 139 rounds of ammunition that had been shipped from Arizona by Plesinger.  A search of the intended recipient’s Hong Kong residence resulted in the recovery of three rifles, two pistols, four rifle barrels, a silencer, and at least 9,000 rounds of ammunition. Further investigation revealed Plesinger had previously shipped those items to Hong Kong in packages with innocuous labels. Additionally, investigators determined Plesinger had been paid at least $64,500 to ship large quantities of firearms, ammunition, and silencers to Hong Kong, and that Smith had been paid at least $59,550 for making similar shipments.
 
  “The sentences imposed in this case should send a strong message to those who would consider illegally exporting firearms, ammunition, or silencers to other countries,” stated Acting United States Attorney Elizabeth A. Strange. “We will continue to work diligently with our national and international partners to vigorously investigate and prosecute such conduct.”
 
  “I wish to compliment the tenacity of the ATF agents and prosecuting attorneys who brought this case to a successful conclusion,” said ATF Assistant Special Agent in Charge Mark Murray. “Our agents left no stone unturned as they doggedly pursued these criminals and brought them to justice. ATF will continue our role in enforcing violations of the federal firearms and explosives laws both domestically and in this case internationally.”
 
  “HSI, together with our domestic and international law enforcement partners, is dedicated to making communities safer by bringing criminals to justice,” said HSI Special Agent in Charge Scott Brown. “The successful outcome of this case is a direct result of the steadfast efforts of federal agents to prevent firearms from falling into the hands of transnational criminal organizations that pose a threat to public safety both here and abroad.” … 

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7.

Justice: California Bay Area Residents Charged In Scheme To Export Components For Production Of Night Vision Rifle Scopes

(Source:
Justice) [Excerpts.] 
New charges supplement bank fraud conspiracy charges filed against the defendants in September of last year

Naum Morgovsky and Irina Morgovsky were charged today for their respective roles in an alleged scheme to export components for the production of night vision rifle scopes in violation of the Arms Export Control Act, announced United States Attorney Brian J. Stretch and Federal Bureau of Investigation Special Agent in Charge John F. Bennett.  The superseding indictment supplements bank fraud charges that were leveled in September of last year against Naum Morgovsky and Mark Migdal.
 
According to the superseding indictment, Naum and Irina Morgovsky owned night vision businesses in the United States and purchased numerous scope components including image intensifier tubes and lenses.  The superseding indictment alleges the Morgovskys conspired to ship these items to a night vision manufacturing company in Moscow, Russia that was partly owned by Naum Morgovsky.  The United States Munitions List prohibits export of the items unless the exporter obtains a license from the Department of State, Directorate of Defense Trade Controls.  According to the superseding indictment, the Morgovskys did not have such a license.
 
In addition, the superseding indictment alleges the Morgovskys took steps to conceal their crimes so that they could continue to run their illegal export business undetected.  According to the superseding indictment, Naum Morgovsky laundered the proceeds of the export conspiracy, used a bank account in the name of a deceased person to conceal the ownership and control of the scheme’s proceeds.  The superseding indictment further alleges that Irina Morgovsky allegedly used a passport that she fraudulently obtained in the name of another individual to travel to Russia three times in 2007.
 
The superseding indictment includes the charges against Naum Morgovsky and Mark Migdal in the indictment filed in September of 2016.  Specifically, the superseding indictment repeats that between June 2009 and April 2016, Morgovsky and Migdal conspired to defraud two federally-insured banks, now Bank of America and EverBank, by seeking those banks’ approval for a short sale of two condominiums owned by Migdal.  The two condominium units were in the same building in Kihei, Maui.  The superseding indictment alleges that Morgovsky and Midgal conspired to convince the banks to allow the properties to be sold in a short sale to an individual who was, in reality, deceased.  A short sale is a sale in which a lender allows a property to be sold at a price that is less than the amount owed on the loan.  According to the superseding indictment, the conspiracy also involved submission of false statements to the bank about Midgal’s employment status and income.  After the banks approved the short sales in 2009 and 2010, Migdal continued to treat the property as his own, including collecting rent and paying taxes and homeowners’ association dues.  The properties allegedly were transferred to Migdal’s wife in 2016.  
 
In addition, the superseding indictment alleges that, during 2009 and 2010, Migdal submitted false statements to a federally insured bank.  According to the superseding indictment, Migdal sought to obtain loan modifications for his residence in Portola Valley and his rental property in Mountain View by falsely stating he had rented part of his residence, by submitting a false employment offer letter, and by falsely stating his rental property in Mountain View was his principal residence. …
 
Any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.  The Superseding Indictment also seeks forfeiture of the false passport, a residence in Portola Valley, a condominium in Mountain View, and the two Hawaii condominiums.
 
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. …
 
[Editor’s Note: an overview of the charges and maximum statutory sentences against Naum Morgovsky, Irina Morgovsky, and Mark Migdal is available here.]

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OGS_a8
8. Justice: Singapore Man Sentenced to 40 Months in Prison for Plot Involving Exports to Iran of U.S. Components

(Source:
Justice) [Excerpts.]
 
Lim Yong Nam, aka Steven Lim, 43, a citizen of Singapore, was sentenced today (Thursday) to 40 months in prison for his role in a conspiracy that caused thousands of radio frequency modules to be illegally exported from the U.S. to Iran, at least 14 of which were later found in unexploded improvised explosive devices (IEDs) in Iraq. …
 
Lim was extradited in 2016 from Indonesia, where he had been detained since October 2014 in connection with the U.S. request for extradition. He pleaded guilty on Dec. 15, 2016, to a charge of conspiracy to defraud the U.S. by dishonest means. Lim will be deported upon completion of his sentence.
 
Lim and others were indicted in the District of Columbia in June of 2010 on charges involving the shipment of radio frequency modules made by a Minnesota-based company. The modules have several commercial applications, including in wireless local area networks connecting printers and computers in office settings. These modules include encryption capabilities and have a range allowing them to transmit data wirelessly as far as 40 miles when configured with a high-gain antenna. These same modules also have potentially lethal applications. Notably, during 2008 and 2009, coalition forces in Iraq recovered numerous modules made by the Minnesota firm that had been utilized as part of the remote detonation system for IEDs. According to the plea documents filed in the case, between 2001 and 2007, IEDs were the major source of American combat casualties in Iraq.
 
In a statement of offense submitted at the time of the guilty plea, Lim admitted that between August 2007 and February 2008, he and others caused 6,000 modules to be purchased and illegally exported from the Minnesota-based company through Singapore, and later to Iran, in five shipments, knowing that the export of U.S.-origin goods to Iran was a violation of U.S. law.  In each transaction, Lim and others made misrepresentations and false statements to the Minnesota firm that Singapore was the final destination of the goods; at no point in the series of transactions did Lim or any of his co-conspirators inform the company that the modules were destined for Iran.   Similarly, according to the statement of offense, Lim and others caused false documents to be filed with the U.S. government, in which they claimed that Singapore was the ultimate destination of the modules. Lim and his co-conspirators were directly aware of the restrictions on sending U.S.-origin goods to Iran.
 
Shortly after the modules arrived in Singapore, they were kept in storage at a freight forwarding company until being aggregated with other electronic components and shipped to Iran. There is no indication that Lim or any of his co-conspirators ever took physical possession of these modules before they reached Iran or that they were incorporated into another product before being re-exported to Iran.
 
According to the statement of offense, 14 of the 6,000 modules the defendants routed from Minnesota to Iran were later recovered in Iraq, where the modules were being used as part of IED remote detonation systems. …
 
[Editor’s Note: this release was also published on the DHS/ICE Newsroom website.]

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OGS_a9
9. State/DDTC Posts Address and Name Change Announcements

(Source:
State/DDTC) [Excerpts.]
 
The Directorate of Defense Trade Controls (DDTC) has posted one address change announcement and three name change announcements. Excerpts of the announcements are included below.
 
 
Effective immediately, BAE Systems Marine Limited, Leanne House, Avon Close, Weymouth, Dorset, DT4 9UX, United Kingdom will change as follows: BAE Systems Marine Limited, Melcombe Court, 1 Cambridge Road, Weymouth, Dorset, DT4 9TT, United Kingdom. Due to the volume of authorizations requiring amendments to reflect this change, the Deputy Assistant Secretary for Defense Trade Controls is exercising the authority under 22 CFR 126.3 to waive the requirement for amendments to change currently approved license authorizations. The amendment waiver does not apply to approved or pending agreements. …
 
 
Effective May 1, 2017, Airbus DS Electronics and Border Security GmbH (EBS GmbH) will change as follows: HENSOLDT Sensors GmbH. Due to the volume of authorizations requiring amendments to reflect this change, the Deputy Assistant Secretary for Defense Trade Controls is exercising the authority under 22 CFR 126.3 to waive the requirement for amendments to change currently approved license authorizations. The amendment waiver does not apply to approved or pending agreements. …
 
 
Effective immediately, Alenia Aermacchi Inc. will change as follows: Leonardo US Aircraft, Inc. Due to the volume of authorizations requiring amendments to reflect this change, the Deputy Assistant Secretary for Defense Trade Controls is exercising the authority under 22 CFR 126.3 to waive the requirement for amendments to change currently approved license authorizations. The amendment waiver does not apply to approved or pending agreements. …
 
 
Effective June 1, 2017, Airbus DS GmbH and Airbus DS Geo GmbH will change as follows: Airbus Defence and Space GmbH. Due to the volume of authorizations requiring amendments to reflect this change, the Deputy Assistant Secretary for Defense Trade Controls is exercising the authority under 22 CFR 126.3 to waive the requirement for amendments to change currently approved license authorizations. The amendment waiver does not apply to approved or pending agreements. … 

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OGS_a1010
Treasury/OFAC Issues Belarus General License No. 2C
(Source: Treasury/OFAC)     

 
The Department of the Treasury, in consultation and coordination with the Department of State, is
authorizing by general license transactions involving certain Belarusian entities blocked pursuant to Executive Order 13405. This license does not generally authorize the release of property blocked pursuant to E.O. 13405.  
This authorization expires on 30 October 30 2017, unless extended or revoked. 

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OGS_a1111
Australian DFAT Seeks Comments on Review of Existing Autonomous Sanctions Listings

(Source:
Australia DFAT)
 
The Department of Foreign Affairs and Trade (DFAT) invites members of the public to comment on a review of Australia’s existing listings of 61 individuals and entities designated under Australia’s autonomous sanctions in response to Russia’s ongoing threat to the sovereignty and territorial integrity of Ukraine.
 
It is a criminal offence under the Autonomous Sanctions Act 2011 and the Autonomous Sanctions Regulations 2011 to directly or indirectly make an asset available to, or for the benefit of, a designated person or entity.
 
Designations of individuals and entities made under the Autonomous Sanctions Regulations 2011 expire after three years, unless extended by the Minister for Foreign Affairs.
 
Details of the listings currently under review and how to make a submission may be found on the
sanctions page of this website.
 
The full list of persons and entities designated for targeted financial sanctions under Australian law, including Australian autonomous sanctions in relation to Ukraine, are on the
DFAT Consolidated List.

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German BAFA Publishes New Export Control Newsletter, Announces Publication of New General Licenses and BAFA/BIS Export Control and Compliance Event 
(Source: German BAFA)

 
Yesterday (Thursday), the Information Service of the German Federal Office for Economic Affairs and Export Control (BAFA) published the April 2017 issue of its Export Control Newsletter.  The content of this newsletter was included in the Daily Bugle of Thursday, 27 April 2017, item #7. 
Today (Friday), BAFA published the May 2017 issue of its Export Control Newsletter. 
The content of the newsletter is included below.
 
EUROPEAN UNION LAW / EMBARGO MEASURES
 
Egypt
 
In accordance with the Council Implementing Regulations (EU) 2017/490 of 21 March 2017 (OJ L 76 of 22.3.2017, p. 8) and (EU) 2017/491 of 21 March 2017 (OJ L 76 of 22.3.2017, page 10) implementing Council Regulation (EU) No. 270/2011 concerning restrictive measures directed against certain persons, entities and bodies in view of the situation in Egypt, four persons were deleted from the list in Annex I to Regulation (EU) No. 270/2011. In addition, the statements of reasons for six persons were amended and the identifying information concerning one listed person was updated.
 
Iran
 
The Council Implementing Regulation (EU) 2017/685 of 11 April 2017 (OJ L 99 of 12.4.2017, page 10) implementing Council Regulation (EU) No. 359/2011 concerning restrictive measures directed against certain persons, entities and bodies in view of the situation in Iran (non-nuclear-related sanctions due to human rights violation) updated the entries concerning 22 persons listed in Annex I to Regulation (EU) No. 359/2011.
 
Yemen
 
The Council Implementing Regulation (EU) 2017/628 of 3 April 2017 (OJ L 90 of 4.4.2017, page 1) implementing Article 15 (3) of Regulation (EU) No. 1352/2014 concerning restrictive measures in view of the situation in Yemen updated the entries related to four persons subject to restrictive measures in Annex I to Regulation (EU) No. 1352/2014.
 
Libya
 
The Council Implementing Regulation (EU) 2017/489 of 21 March 2017 (OJ L 76 of 22.3.2017, page 3) implementing Article 21 (5) of Regulation (EU) 2016/44 concerning restrictive measures in view of the situation in Libya updated the information relating to 15 persons and two entities that are subject to restrictive measures and are listed in Annexes II and VI to Regulation (EU) 2016/44.
 
The amendment implements the resolutions adopted by the United Nations Security Council Committee on 11 November 2016 and 6 January 2017.
 
North Korea
 
The Council Regulation (EU) 2017/658 of 6 April 2017 (OJ L 94 of 7.4.2017, page 3) amending Regulation (EC) No. 329/2007 concerning restrictive measures against the Democratic People’s Republic of Korea imposed new restrictive measures. Among others, the ban on EU investment in and with North Korea to the conventional arms-related industry, metallurgy, metal working and aerospace sector is further expanded and the provision of certain services to entities and citizens in North Korea is banned.
 
The Commission Implementing Regulation (EU) 2017/661 of 6 April 2017 (OJ L 94 of 7.4.2017, page 25) amending Council Regulation (EC) No. 329/2007 concerning restrictive measures against the Democratic People’s Republic of Korea amended the Annexes Ih, II, III, IIIa, IIIb and V to Regulation (EC) No. 329/2007. Some luxury goods, the products copper, nickel, silver and zinc, the statues as well as helicopters and vessels that are subject to import or export ban are specified in detail. Furthermore there was an updated of competent authorities in the Member States. In addition, four natural persons were added to the list of persons and entities subject to restrictive measures.
 
Al Qaida and ISIL (Da´esh)
 
In accordance with the Commission Regulations (EU) 2017/494 of 21 March 2017 (OJ L 76 of 22.3.2017, page 18), (EU) 2017/557 of 24 March 2017 (OJ L 80 of 25.3.2017, page 14), (EU) 2017/630 of 3 April 2017 (OJ L 90 of 4.4.2017, page 6) and (EU) 2017/637 of 4 April 2017 (OJ L 91 of 5.4.2017, page 7) amending for the 262nd , 263rd , 264th  and 265th times 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, four entries were amended in the list set out in Annex I to Regulation (EC) No. 881/2002 and one entry was deleted.
 
The amendments implement the resolutions adopted by the Sanctions Committee of the United Nations Security Council on March 16, 21, 29 and 30, 2017.
 
INSIDE BAFA
 
Publication of New General Licences
 
The General Licences, except General Licence No. 16, were extended until 31 March 2018. The General Licence No. 16 was extended until 30 June 2017 only, a further extension is, however, envisaged. In addition, the content of all General Licences was revised.
 
For the full text go to: ”
Allgemeine Genehmigungen” (General Licences; in German), “Liste der Allgemeinen Genehmigungen” at BAFA’s website.
 
Save the Date: BAFA/BIS Export Control and Compliance Update 2017 on 14 June 2017
 
The Federal Office for Economic Affairs and Export Control (BAFA) has again invited the Bureau of Industry and Security (BIS) to inform about the current state of US export control reform and latest trends of export control policy. The event will be held in
Frankfurt on Main on
14 June 2017. All presentations will be given in English.
 

  – More information (in German) is available here and here.  

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OGS_a1313
Japanese METI Conducts Survey on Company Contract and Data Management, Announces Japan-Vietnam Dialogue on Distribution and Logistics

(Source:
METI)
 
The Japanese Ministry of Economy, Trade and Industry (METI) has published the following two updates on its website.
 

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NWSNEWS

NWS_a1
14.

AD: “Silently Conducting Business with Bogeyman Kim Jong-Un”

(Source:
Algemeen Dagblad, in Dutch) [Translated Excerpts.]
It is one of the most closed off and dangerous countries in the world. Nevertheless, some Dutch entrepreneurs conduct business with North Korea. …
 
[Maarten] Jongsma is one of the few Dutchmen who, over the past few years, developed serious ties with North Korea. In 2004, North Koreans approached his Vegetation Research Institute in Wageningen, because the country wanted to better guard itself against potato diseases. He allowed North Korean students conduct research in his lab, traveled to the country annually, and assisted Dutch breeders. “We have a flawed image of the country,” says Jongsma. So many nice, intelligent, driven people live there. But all we get to see here, is the image of a mad dictator.”
 
Only a limited number of Dutch companies openly trade with North Korea. “Many business owners are hesitant, ” says Paul Tjia, a Dutch consultant in the field of IT-outsourcing.  “It is perfectly possible to conduct business in North Korea, if only you can break the communication barrier.” …
 
It is allowed to conduct business with North Korea, but doing so is a large taboo. Tjia does not want to tell which companies he guides during his business travels (“that is not appreciated”). No wonder, says Korea expert Remco Breuker. “I know that Dutch companies go to North Korea to develop goods, software and IT, for example. But nobody wants to openly doing business with a regime that is starving its own people and actively tests nuclear missiles.”
 
… Companies whose products are found in North Korea, want to be clear about the following: there are no exports to North Korea. “We do not know how our products get there, ” says Jesper Kleingeld of Heineken, the beer that is served in many North Korean restaurants. “We do not bring anything there. But if we export to China, of course we can not prevent a third party from shipping it to North Korea. ”Bavaria gives the same explanation for the presence of its products in North Korea. And how the hotels in Pyongyang managed to get the revolving doors made by Boon Edam? “We don’t know,” says spokesman Henk Goede. “We have once heard of a door which we supplied to China, go to North Korea. That’s all.”  … 

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NWS_a2
15.

Reuters: “EU on Course to Renew Russia Sanctions Barring Le Pen Election Win”

 
The European Union will seek to renew economic sanctions against Russia when they expire at the end of July, encouraged by U.S. President Donald Trump’s unexpectedly frosty relations with Moscow, EU diplomats and officials said.
 
The bloc imposed sanctions on Russia after Moscow annexed Crimea from Ukraine in 2014 and then backed separatist rebels in the east, helping drag relations between President Vladimir Putin and the West to a post-Cold War low.
 
While EU leaders have so far backed the sanctions, not all have done so with the same zeal. After Trump’s campaign promises of warmer ties with Moscow the EU’s resolve to remain united on the issue was seen being tested.
 
But with the U.S. leader’s perceived shift in stance toward Russia, those pressures have eased, for now. A more imminent risk to the EU’s united front, officials say, would be a surprise win for the far-right Marine Le Pen in France’s presidential election on May 7.
 
  “It seems a roll-over will be much less problematic than anyone expected,” said one EU diplomat from a member state keen to maintain the sanctions.
 
Among the strongest supporters of renewing the sanctions are Sweden, the Baltic states and Poland, whose voice has been weakened by Britain’s decision to leave the EU.
 
Those less convinced include Italy, Greece, Cyprus, Hungary, Spain and Bulgaria, who argue that three years of sanctions have failed to sway Moscow, and would like to restore business ties.
 
  “We don’t like the sanctions,” said a Brussels-based diplomat from one of these countries.
 
  “It’s a huge business loss for us. But we will be with the majority,” the diplomat added, acknowledging that a renewal of the sanctions regime looked likely.
 
The EU last month extended until September a blacklist of Russian individuals and entities for their role in the turmoil in Ukraine. And it is all but certain to extend separate restrictions on doing business in Crimea before the current ban expires in late June.
 
The renewal of sanctions requires unanimous support. An EU official dealing with the issue said this looked on track.
 
  “First, we extend the Crimea ones. The economic ones should come after the June EU leaders’ summit. There are two things that can affect this: the French elections and Trump,” the official said.
 
Le Pen opposes Russia sanctions and wants them lifted. If she wins the presidency, France could block an extension.
 
EU SEES WASHINGTON “TURNING OUR WAY”
 
The simmering conflict in eastern Ukraine has killed more than 10,000 people.
 
Germany and France, the EU’s two leading powers which brokered peace agreements between Kiev and the Russia-backed rebels in 2014 and 2015, play a leading role in sanction decision-making through their debriefings to other EU states.
 
While the United States has no direct involvement, it is a strong influencer. Under Trump’s predecessor, Barack Obama, the G7 group of industrialized economies used to seek a joint stance on Russia which the European members took back to other EU states.
 
This may happen again when G7 leaders meet on May 26-27, a month ahead of the EU leaders’ meeting in Brussels. It will be the first such summit with Trump and will also include Germany, France, Italy and Britain.
 
A third EU diplomat said that after concerns at the start of the Trump presidency, there was now a growing sense the White House would not be at odds with the EU stance.
 
  “People didn’t ask before for fear of getting the wrong answer,” said a senior EU diplomat. “And it may prove the right strategy, the Americans seem to be turning around our way.”
 
A fourth EU diplomat said the United States appeared largely absent from the Russia sanctions discussion. EU officials, though, do not rule out a thawing of Washington-Moscow relations at some point.
 
  “A roll-over of sanctions is not in doubt now, but who knows further down the line, without U.S. support,” the diplomat said.

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NWS_a3
16.

ST&R Trade Report: “Dates and Deadlines: Trade Preferences, Import Costs, Apparel Classification, Supply Chains”

 
Following are highlights of regulatory effective dates and deadlines and federal agency meetings coming up in the next week. …
 
  – 3 May: deadline for comments to ITC on potential
IPR import restrictions on robotic vacuum cleaners
  – 5 May: effective date of FMC rule easing
regulatory burdens on maritime supply chain users

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NWS_a4
17.

ST&R Trade Report: “U.S. Won’t Terminate NAFTA “At This Time,” White House Says”

 
President Trump has informed the leaders of Canada and Mexico that he has “agreed not to terminate NAFTA at this time,” according to a White House statement. The leaders also “agreed to proceed swiftly … to enable the renegotiation of the NAFTA deal to the benefit of all three countries.”
 
Trump has repeatedly criticized NAFTA and had reportedly been close to issuing an executive order announcing that the U.S. would withdraw from it shortly before agreeing to renegotiate it. According to press reports, Trump said that the U.S. will “give renegotiation a good, strong shot” but that he reserves the right to terminate NAFTA if the U.S. is “unable to make a fair deal.”
 
Formal talks cannot begin until 90 days after the president notifies Congress of his intent to renegotiate the agreement. A Reuters article cited one administration official as saying that will not happen until the full Senate confirms Robert Lighthizer as U.S. trade representative. The Senate Finance Committee
approved Lighthizer’s nomination April 24.

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

COMMCOMMENTARY

COMM_a118.

M. Lester: “Lithuanian Parliament Introduces Magnitsky Sanctions Bill”

 
* Author: Maya Lester, Esq., Brick Court Chambers,
maya.lester@brickcourt.co.uk, +44 20 7379 3550.
 
The Lithuanian parliament has introduced a bill that, if passed, would establish “Magnitsky-style” sanctions that ban people involved in human rights abuses, corruption, or money laundering from entering Lithuania.  The sanctions are named after Russian lawyer Sergei Magnitsky, whose death in Russian custody in 2009 prompted the US to introduce the first sanctions of this kind on human rights abusers in Russia. A Canadian parliamentary committee recommended that the Canadian government follow the US, UK, and several other countries in imposing Magnitsky-style sanctions earlier this month (see previous 
blog).

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

COMM_a219.

R.S. Metzger: “Navigating Defense Department Cyber Rules”

 
* Author: Robert S. Metzger, Esq.,
rmetzger@rjo.com, Rogers Joseph O’Donnell PC.
 
Defense contractors by Dec. 31 are expected to provide “adequate security” to protect “covered defense information” using cyber safeguards.
 
This obligation arises from a Defense Acquisition Regulation System Supplement clause, “Network Penetration Reporting and Contracting For Cloud Services,” that was finalized last October and described in the National Institute of Standards and Technology (NIST) Special Publication 800-171. Thousands of companies who sell directly to the Defense Department, and thousands more who sell to its suppliers, are or will be, subject to the rule.
 
The Pentagon is well-justified to seek improved cyber protection of sensitive but unclassified technical information. Hackers have exploited network vulnerabilities in the defense supply chain for the unauthorized exfiltration of valuable and sensitive defense information. Senior defense officials have expressed alarm at this persistent and pervasive economic espionage.
 
Since 2013, the Defense Department has used acquisition regulations to protect controlled technical information significant to military or space. Other forms of information may not have direct military or space significance, but loss of confidentiality through a cyber breach can produce serious, even grave national injury.
 
The Defense Department is the leader among federal agencies in using its contractual power to cause its vendors to improve their cybersecurity. The principal instruments are two contract clauses, DFARS 252.204-7008, “Compliance with Safeguarding Covered Defense Information Controls,” and DFARS 252.204-7012, “Safeguarding Covered Defense Information and Cyber Incident Reporting.” Both were the subject of final rulemaking released Oct. 21.
 
Where the -7008 “compliance” clause is included in a solicitation, the offeror commits to implement the SP 800-171 safeguards by the end of this year. Defense Department contracts will include the -7012 “safeguards” clause, which defines the types of information that must be protected, informs contractors of their obligation to deliver “adequate security” using SP 800-171 controls, and obligates reporting to the department of cyber incidents. 
 
Every responsible defense supplier supports the objectives of these cyber DFARS rules. But the requirements are complex and are not currently well-understood. Outside of a few of the largest, dedicated military suppliers, many companies in the defense supply chain view these rules with a mix of doubt, concern and alarm. This recipe serves neither the interests of the Defense Department nor its industrial base.
 
A technology trade association, the IT Alliance for Public Sector, released a white paper that examines the Defense Acquisition Regulation System Supplement and other federal initiatives to protect controlled unclassified information. The goal was to assist both government and industry to find effective, practical and affordable means to implement the new cyber requirements. The paper examines these five areas: designation, scope, methods, adoption and compliance.
 
As for designation, the department should accept that it is responsible to identify and designate the covered defense information that contractors are obliged to protect. It should confirm that contractors only have to protect information that it has designated as covered, and that such obligations are only prospective – newly received information – and not retrospective.
 
In regards to “scope,” the Defense Department should revise the rule to clarify that contractors must protect information that it has identified as covered and provided to the contractor in the course of performance of a contract that is subject to the rule. The definition of “covered defense information” should be revised to remove confusing language that can be interpreted to require protection of “background” business information and other data that has only a remote nexus to a Defense Department contract.
 
The October 2016 revision now allows defense contractors to use external cloud service providers, where covered information is involved, only if those vendors meet the security requirements of FedRAMP Moderate “or equivalent.” The Federal Risk and Authorization Management Program, or FedRAMP, is a government-wide program that provides a standardized approach to security assessment, authorization and continuous monitoring for cloud products and services.
 
The regulation fails to explain what is meant by “or equivalent” and who decides. The Defense Department needs to explain what it expects from cloud services to satisfy SP 800-171 and the DFARS rules. A security overlay should be prepared by NIST to add cloud-specific controls. But it is unnecessary to impose the whole of the FedRAMP process and federal-specific controls on commercial cloud providers.
 
The Defense Department continues to depend on small business for many needs, and seeks their innovative ideas. The supplements are an obstacle and burden on smaller businesses, and yet security is just as important at the lower levels of the supply chain as at the top. The department can improve the ability of small business to implement the required security controls. Several specific recommendations are made as to how it can reach and assist the small business community. One recommendation is to make increased use of the NIST voluntary cybersecurity framework.
 
As far as compliance, contractors are required to represent that they will deliver “adequate security” and fully implement the SP 800-171 controls by the year-end deadline. The Defense Department needs to better inform its contractors how they can be confident their security measures will satisfy the requirements should they come under scrutiny following a cyber incident. The white paper explores different ways to create a safe harbor for compliance. A key component is contractor documentation of a system security plan, which was added as a 110th requirement to SP 800-171.       
 

The White Paper is available here. The Defense Department is hosting an industry day on the cyber DFARS, June 23 at the Mark Center in Alexandria, Virginia. Information and registration details available here.      

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

COMM_a320
. Gary Stanley’s ECR Tip of the Day

 
* Author: Gary Stanley, Esq., Global Legal Services, PC, (202) 352-3059,
gstanley@glstrade.com.

Knowledge of a circumstance (the term may be a variant, such as “know,” “reason to know,” or “reason to believe”) includes not only positive knowledge that the circumstance exists or is substantially certain to occur, but also an awareness of a high probability of its existence or future occurrence. Such awareness is inferred from evidence of the conscious disregard of facts known to a person and is also inferred from a person’s willful avoidance of facts.

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

COMM_a4
21.

R.C. Burns: “The Gray Lady Seems Pretty Gray About Export Law”

(Source:
Export Law Blog. Reprinted by permission.)
 
* Author: R. Clifton Burns, Esq., Bryan Cave LLP, Wash DC,
Clif.Burns@bryancave.com, 202-508-6067)
 
he
New York Times yesterday
reported that it had, somehow or other, laid its hands on an administrative subpoena sent last December by the Office of Foreign Assets Control (“OFAC”) to Chinese telecom manufacturer Huawei. The subpoena, according to the newspaper, asks for information on the company’s dealings with “Cuba, Iran, Sudan and Syria over the past five years.”
 
The article notes that a similar subpoena had been issued earlier last summer by the Department of Commerce, presumably a reference to the Bureau of Industry and Security (“BIS”). This appears to have caused the
Times to become perplexed over why OFAC was now sticking its nose into the matter. So they asked someone whom they imagined to be an expert what was going on and he came up with this humdinger:
 
The most likely thing happening here is that Commerce figured out there was more to this than dual-use commodities, and they decided to notify Treasury.
 
Nope. Let’s hope for this guy’s sake that he’s been misquoted. Our expert here seems to be unaware that BIS is concerned with more than the export of dual use items. Maybe Part 746 was ripped out of his copy of the Export Administration Regulations or, possibly, his dog ate that part. That part regulates exports of all items “subject to the EAR” to Cuba, Syria, North Korea and Crimea, not just dual-use items.
 
And, of course, OFAC has rules that prohibit exports of goods to Cuba, North Korea, Sudan, Crimea and Iran and the export of services to Syria as well as the five previously mentioned locations. So the real answer here as to why OFAC is piling on here is because it can, not because there were concerns by BIS about transactions outside its jurisdiction.

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

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)

#” 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:

* 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 2: Webinar; ”
Trade Preferences: One Goal, Different Approaches;” Sandler, Travis & Rosenberg, P.A.;
webinarorganizers@strtrade.com 

# May 3-4: Orange County CA; ”
Complying with U.S. Export Controls;” Dept. of Commerce/Bureau of Industry and Security

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

* May 3: Webinar; “
Free Duty Drawback
;” CITTA Brokerage Co

# May 3: Webinar; ”
The Hidden Costs of Importing;” Sandler, Travis & Rosenberg, P.A.;
webinarorganizers@strtrade.com 

* 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; Fargo ND; “
Export Compliance Training
;” Allocca Enterprises, Inc.; 
admin@alloccaenterprises.com 

* 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 

# May 22-24: San Diego CA; ”
ITAR/EAR Boot Camp;” American Conference Institute

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

# May 23-24: Detroit MI; ”
Complying with U.S. Export Controls;” Dept. of Commerce/Bureau of Industry and Security

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

* May 24-25: Annapolis MD; “
‘Benchmarking Your ITAR/EAR Compliance Programs’ featuring Gerry Horner, Commerce/BIS; Byron Angvall, The Boeing Company and Christine Lee, UTC
;” 
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

# May 25: Detroit MI; ”
U.S. Munitions List to Commerce Control List;” Dept. of Commerce/Bureau of Industry and Security

* Jun 1: Webinar; ”
Identifying Agents for Customs Purposes – Traps for the Unwary Importer;” Sandler, Travis & Rosenberg, P.A.;
webinarorganizers@strtrade.com 

* 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 


# Jun 8-9: Seattle WA; ”
Complying with U.S. Export Controls;” Dept. of Commerce/Bureau of Industry and Security

* Jun 11-13: Dublin IRL; “ICPA Dublin Conference;”
International Compliance Professionals Association;
wizard@icpainc.org 


# Jun 12-14: Arlington VA; ”
8th Advanced Forum on DCAA & DCMA Cost, Pricing, Compliance & Audits;” American Conference Institute

* 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 13: Webinar; ”
Using Incoterms® Properly to Avoid Disputes;” Sandler, Travis & Rosenberg, P.A.;
webinarorganizers@strtrade.com 

* 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 20: Webinar; ”
International Payment Options 101;” Sandler, Travis & Rosenberg, P.A.;
webinarorganizers@strtrade.com 

# Jun 21-22: Miami FL; ”
Miami Forum on Anti-Corruption;” American Conference Institute

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

* Jul 10-12; Baltimore MD; “
2017 Summer Back to Basics Conference
;” Society for International Affairs

* 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: Oklahoma OK; ”
Complying with U.S. Export Controls;” Dept. of Commerce/Bureau of Industry and Security

* 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 2-3: Los Angeles; ”
Complying with U.S. Export Controls;” Dept. of Commerce/Bureau of Industry and Security

* 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: Louisville KY; ”
Complying with U.S. Export Controls;” Dept. of Commerce/Bureau of Industry and Security

# Sep 12-13: Milpitas CA; ”
Complying with U.S. Export Controls;” Dept. of Commerce/Bureau of Industry and Security

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

#
Sep 14: Milpitas CA; “
Encryption Controls;”
Dept. of Commerce/Bureau of Industry and Security

* Sep 18-21: Austin TX; “
ITAR Defense Trade Controls / EAR Export Controls Seminar
; 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 5-7: Singapore; ”
ICPA Singapore Conference;”
International Compliance Professionals Association;
wizard@icpainc.org 

* 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 

# Nov 9-10: Shanghai, China; ”
ICPA China Conference;”
International Compliance Professionals Association;
wizard@icpainc.org 

* Nov 13-16: Wash DC; “ITAR Defense Trade Controls / EAR Export Controls Seminar;” ECTI; jessica@learnexportcompliance.com; 540-433-3977

* 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

# Mar 11-14: San Diego CA; ”
ICPA Annual Conference;”
International Compliance Professionals Association;
wizard@icpainc.org  

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

ENEDITOR’S NOTES

EN_a123
. Bartlett’s Unfamiliar Quotations

(Source: Editor)


James Monroe (28 Apr 1758 – 4 Jul 1831, was an American statesman who served from 1817 to 1825 as the fifth President of the United States. 
  – “It is only when the people become ignorant and corrupt, when they degenerate into a populace, that they are incapable of exercising their sovereignty.”


* Oskar Schindler (28 Apr 1908 – 9 Oct 1974; was a German industrialist and member of the Nazi Party who is credited with saving the lives of 1,200 Jews during the Holocaust by employing them in his enamelware and ammunitions factories, which were located in occupied Poland and the Protectorate of Bohemia and Moravia. He is the subject of the 1982 novel Schindler’s Ark, and the subsequent 1993 film Schindler’s List.  Schindler was buried in Jerusalem on Mount Zion, the only member of the Nazi Party to be honored in this way.


  – “We must differentiate between guilt and duty. The soldier on the front, like the common man, who does his duty everywhere, should not be held responsible for the actions of a few who also called themselves Germans.”



Friday Funnies:



A boy asked his father to do his math homework problems for him so he could play a video game match with some friends.  The father said, “No — it would be wrong.”  The boy replied, “That’s probably true, but do your best and I’ll check them before I hand them in.”

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

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 [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: 18 Apr 2017: 82 FR 18217-18220: Revision to an Entry on the Entity List)

  
*
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: 
19 Apr 2017: 
82 FR 18383-18393: Foreign Trade Regulations: Clarification on Filing Requirements 
  – HTS codes that are not valid for AES are available 
here.
  – The latest edition (19 Apr 2017) of Bartlett’s Annotated FTR (“BAFTR”), by James E. Bartlett III, is available for downloading in Word format. The BAFTR contains all FTR amendments, FTR Letters and Notices, a large Index, and footnotes containing case annotations, practice tips, and Census/AES guidance.  Subscribers receive revised copies every time the FTR is amended. The BAFTR is available by annual subscription from the Full Circle Compliance 
website.  BITAR subscribers are entitled to a 25% discount on subscriptions to the BAFTR.

 
*
HARMONIZED TARIFF SCHEDULE OF THE UNITED STATES (HTS, HTSA or HTSUSA)
, 1 Jan 2017: 19 USC 1202 Annex. (“HTS” and “HTSA” are often seen as abbreviations for the Harmonized Tariff Schedule of the United States Annotated, shortened versions of “HTSUSA”.)
  – Last Amendment: 26 Apr 2017: Harmonized System Update 1703, containing 2,512 ABI records and 395 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_a325
. 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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