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17-0508 Monday “The Daily Bugle”

17-0508 Monday “Daily Bugle”

Monday, 8 May 2017

TOP
The Daily Bugle is a free daily newsletter from Full Circle Compliance, containing changes to export/import regulations (ATF, Customs, NISPOM, EAR, FACR/OFAC, FTR/AES, HTSUS, and ITAR), plus news and events.  Subscribe 
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  1. Justice/ATF Seeks Comments on Form 4473, Firearms Transaction Record to Make a Spanish Version Available  
  1. Ex/Im Items Scheduled for Publication in Future Federal Register Editions 
  2. Commerce/BIS: (No new postings.) 
  3. DHS/CBP Announces ACE CERTIFICATION Deployment for ACE Statement Processing 
  4. DoD/DSCA Posts SAMM and Policy Memorandum, 1-6 May 
  5. DoD/DSS Changes URLs for Information Systems 
  6. State/DDTC: (No new postings.) 
  7. EU P2P Posts Summaries of Activities  
  1. The Nation: “Keep on Track of Trading Controls on Dual-Use Items” 
  2. The Reporter: “Belize Gets New Equipment to Detect Weapons of Mass Destruction” 
  3. Reuters: “Russia Suspends LPG Exports to Ukraine Again – Traders” 
  4. ST&R Trade Report: “NAFTA Notification Awaiting USTR Confirmation” 
  1. A. Goldner, L. Pan & J. Todd: “The ZTE Case: U.S. Sanctions and Export Control Laws” 
  2. C. Penman: “AG Jeff Sessions Left Compliance Officers with More Questions than Answers … and an Invitation” 
  3. M. Volkov: “Wait a Minute – The FCPA Enforcement Sky Did Not Fall?” 
  1. Monday List of Ex/Im Job Openings: 102 Jobs Posted 
  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 (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

1. Justice/ATF Seeks Comments on Form 4473, Firearms Transaction Record to Make Available a Spanish Version


(Source: Federal Register) [Excerpts.]
 
82 FR 21407-21408: Agency Information Collection Activities; Proposed eCollection eComments Requested; Revision of a Currently Approved Collection; Firearms Transaction Record/Registro de Transaccíon on de Armas (ATF Form 4473 (5300.9)
 
* AGENCY: Bureau of Alcohol, Tobacco, Firearms and Explosives, Department of Justice.
* ACTION: 60-day notice.
* SUMMARY: The Department of Justice (DOJ), Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), will submit the following information collection request to the Office of Management and Budget (OMB) for review and approval in accordance with the Paperwork Reduction Act of 1995. The proposed collection OMB 1140-0020 (Firearms Transaction Record (ATF Form 4473 (5300.9) is being revised to make available a Spanish version (Registro de Transaccíon de Armas) as a courtesy to Federal firearms licensees with clientele for whom Spanish is their native language. The proposed information collection is also being published to obtain comments from the public and affected agencies.
* DATES: Comments are encouraged and will be accepted for 60 days until July 7, 2017.
* FOR FURTHER INFORMATION CONTACT: If you have additional comments, particularly with respect to the estimated public burden or associated response time, have suggestions, need a copy of the proposed information collection instrument with instructions, or desire any additional information, please contact Helen Koppe, Program Manager, ATF Firearms & Explosives Industry Division either by mail at 99 New York Avenue NE., Washington, DC 20226, or by email at FederalRegisterNoticeATFF4473@atf.gov.
* SUPPLEMENTARY INFORMATION: …
  – The Title of the Form/Collection: Firearms Transaction Record/Registro de Transacc[iacute]on de Armas.
  – Form number (if applicable): ATF Form 4473 (5300.9).
  – Component: Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Department of Justice.
  – Abstract: The information and certification on the Form 4473 are designed so that a person licensed under 18 U.S.C. 923 may determine if he or she may lawfully sell or deliver a firearm to the person identified in Section A. It also alerts buyers to certain restrictions on the receipt and possession of firearms. …
If additional information is required contact: Melody Braswell, Department Clearance Officer, United States Department of Justice, Justice Management Division, Policy and Planning Staff, Two Constitution Square, 145 N Street NE., 3E.405A, Washington, DC 20530.
 
  Dated: May 3, 2017.
Melody Braswell, Department Clearance Officer for PRA, U.S. Department of Justice.

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OGSOTHER GOVERNMENT SOURCES

OGS_a12. Ex/Im Items Scheduled for Publication in Future Federal Register Editions
(Source: Federal Register

* Commerce; Industry and Security Bureau; NOTICES; Public Hearings: National Security Investigation of Imports of Aluminum [Publication Date: 9 May 2017.]

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(Source:
CSMS# 17-000262, 8 May 2017.)
 
Please be advised that there will be an ACE CERTIFICATION deployment on Tuesday morning, 6 May 2017, starting at 0600 ET, for ACE Statement Processing. The deployment is expected to take approximately 1 hour.
 
To be deployed:
 
* CST-1858 and 1859 – (CATAIR Updates to be Posted in the near future)
 
SU/SQ – Statement Update – Add condition codes and narratives: H2 output record, Page 16.
 
  – 263 – PAYMENT TYPE CODE MISSING
  – B14 – ENTRY NUMBER MISSING
  – X15 – PROCESSING PORT CODE MISSING
  – X16 – FILER CODE MISSING
 
* MO/MQ – Statement Request Reroute –
 
Change and Add condition codes & narratives: QX output record, Page 11.
 
  – CHANGE – MSC- PRELIM DAILY STMT REQUEST REQD
  – ADD – MSF- FINAL DAILY STMT REQUEST REQD
  – ADD – MSG – PRELIM PERIODIC MONTHLY STMT REQ REQD
  – ADD – MSH – FINAL PERIODIC MONTHLY STMT REQ REQD
  – ADD – MSI – ACH STMT PAYMENT AUTH REQ REQD
 
* CST-1773- (CATAIR posted to web on 1/23/17)
 
SU/SQ – Statement Update – Delete and Add condition codes and narratives: H2 output record, Pages 15 & 16.
 
  – DELETE -P14 – REMOTE/SUMMARY PREPARER FILER MISMATCH
  – DELETE -P15 – REMOTE/SUMMARY PREPARER OFC CD MISMATCH
  – DELETE -P19 – SINGLE PAY REJ FOR WHSE WTHDR
  – ADD -X41 – MULTIPLE QUERIES IN BATCH NOT ALLOWED
  – ADD -X26 – REMOTE AND PRSSNG FILER NOT THE SAME
  – ADD -X28 – REMOTE PREPARER UNKNOWN
* * * * * * * * * * * * * * * * * * * *

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OGS_a56
. DoD/DSS Changes URLs for Information Systems

(Source: DoD/DSS)
 
In an effort to avoid confusion when the Defense Information System for Security goes live later this year, the URLs for the information systems linked from the dropdown menu of the DSS main page were recently updated. If you bookmarked a URL for an information system, please update it accordingly.

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OGS_a67
. State/DDTC: (No new postings.)

(Source: State/DDTC) 

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OGS_a78
. EU P2P Posts Summaries of Activities

(Source: EU P2P)
 
The EU Partner-to-Partner (EU P2P) Program has published the following summaries of its activities in April:
 

  
– 26-27 April 2017, Skopje, Macedonia: Regional Workshop for South East Europe

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NWSNEWS

NWS_a19
. The Nation: “Keep on Track of Trading Controls on Dual-Use Items”

 
As terrorism becomes an unfortunate reality of modern day life, concerns over global safety and security have significantly increased. In preventing terrorism attacks, governments worldwide are making considerable efforts to observe and control weapons including proliferation of weapons, especially weapons of mass destruction (WMD); nuclear, radiological, chemical, biological weapons.
 
Apart from control over WMD, many countries attempt to exert control over the first process of WMD supply chain by controlling raw materials and tools which may be used in supporting WMD or manufacturing of such weapons. A common element of this control is on export of dual-use items. These are products or technologies which are normally used for civilian or commercial purposes, but can also be used as WMD or as a material for developing, producing, or supporting WMD.
 
The Thai government, to be in line with the United Nations Security Council Resolution No 1540, is drafting laws on export control of WMD and dual-use items which are expected to be effective in January 2018.
 
In late 2015, the Ministry of Commerce (MOC) announced the dual-use Items list (List one) and HS Code list (List two) to stipulate the export products which are controlled. Goods in List one require an export licence before they can be exported whilst an exporter of goods in list two must first self-certify that the product is not a dual-use item before exportation.
 
Although export controls may seem to be complicated and provide an additional compliance burden to many types of export business, the MOC has introduced a new system to support exporters called e-Trade Management of dual-use Items (e-TMD). Through e-TMD, exporters are able to determine whether goods are dual-use items or not. If subject to the rules, then the system provides for the exporter to obtain the DUI Export License for list one goods or self-certify for the list two goods. Exporters can now try out the trial version of e-TMD online.
 
This system is expected to be fully launched before Thailand’s regulation on export control of WMD and dual-use items come into effect in January 2018.
 
Even though, controlled lists have already been announced and the trial version of e-TMD has been launched, Trade Controls of Weapons of Mass Destruction Act (TCWMD Act), Thailand’s regulation on export control of WMD and dual-use items, is still in the legislative process. After the Thai government provided approval in principal for the draft regulations in late 2016, the draft is now under review and amendment by the Office of Council of State. The draft is expected to pass all legislative process later this year.
 
Failing to comply with these regulations once they become effective in 2018, for example, attempting to export goods under List two without self-certifying through e-TMD, may result in the exporter facing obstacles in exporting goods (ie cannot export such goods until performing self-certification).
 
Where an exporter exports DUI without proper DUI export license, such exporter may be subject to significant fine or imprisonment or both. Moreover, if the illegally exported DUI goods are used in terrorism activity whether used as a raw material, supporting tools, or other activities for developing WMD, the exporter may be subjected to imprisonment up to 22 years or a fine up to Bt22 million, or both. Also, if this WMD is a cause of death, the exporter may be subjected to life imprisonment, or 30 years imprisonment including a fine up to Bt50 million.
 
Whilst the regulations are still being drafted, exporters should still start preparations for their potential impact on the business. The list of controlled goods is already available and exporters should assess to what extent goods they export will be impacted. This would include starting to familiarize themselves with the e-TMD.
 
An export control regime may be an added compliance burden for exporters, but ultimately it will make society safer and more secure.

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The United States Embassy, in an effort to detect and identify radiological sources and combat the trans-shipment of weapons of mass destruction between countries, handed over a variety of equipment to the Customs and Police departments.
 
The handing over ceremony took place at the Customs and Excise Department in Belize City on Wednesday. Funding for the donation was made possible through the Export Control and Related Border Security program at a total value of US$44,950.
 
The donation included several radiation detectors, an Isotope Identification kit and regular tool kits.
 
Greg Bates, Regional Export Control and Border Security Advisor for the US Department of State said the equipment will be used for the proliferation of weapons and the illicit transfer of controlled equipment that could be used to create chemical, biological and nuclear arms.
 
According to Collin Griffith, Acting controller for the Belize Customs Department, although Belize has never come across any reports of persons engaging in the transfer of these weapons, the department is proud to be the recipient of the new equipment in an effort of capacity building.
 
Griffith said that the new equipment will be distributed to frontline officers to increase inspection capacity and allow for the identification of radio sphere and other forms of radiation in goods.
 
A press release from the embassy said that the donations were a part of the Embassy’s ongoing efforts with the Government of Belize to enhance security.

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NWS_a031
1. Reuters: “Russia Suspends LPG Exports to Ukraine Again – Traders”
 
Russian exporters have suspended liquefied petroleum gas (LPG) exports to Ukraine for the second time in a month because Russia’s regulator has not given clearance for the shipments, traders said on Thursday.
 
Russia restricted LPG exports to Ukraine in early April for a few days citing concerns it could be used for military purposes.
 
Russian railway statistics, seen by Reuters, also showed there had been no LNG exports to Ukraine from Russia since May 1.
 
Relations between Kiev and Moscow plummeted after Russia annexed the Crimean peninsula in March 2014 and separatist fighting erupted in Ukraine’s eastern Donbass region.
 
Traders said the Russian regulator, the Federal Service for Technical and Export Control (FSTEC), had not given clearance for the LPG shipments.
 
The FSTEC was not immediately available to comment.
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A delay in confirming Robert Lighthizer as the next U.S. trade representative appears to be holding up the Trump administration’s efforts to launch talks on renegotiating NAFTA. Lighthizer was approved by the Senate Finance Committee April 24 but it is unclear when the full Senate might act. One press source said a vote could come during the week of May 8 but another said it may not happen until the week of May 15.
 
Administration officials continue to decry the tripartite trade agreement but Trump agreed in late April to renegotiate it rather than withdraw from it. However, formal talks cannot begin until 90 days after the president notifies Congress of his intent to renegotiate the agreement, which press sources indicate will not happen until Lighthizer is confirmed by the Senate. A Forbes article adds that the actual talks will likely be conducted by subject matter experts “a couple of levels below cabinet rank” and that Trump has “mostly not appointed these people, much less gotten them confirmed by the Senate.”
 
A draft congressional notification leaked to the press in late March set forth dozens of potential changes to the 23-year-old agreement. However, Commerce Secretary Wilbur Ross has asserted that the draft was just one of several alternatives that has been discussed by administration officials and was “blown up by the media.”
 
In the meantime, the aborted executive order that would have withdrawn the U.S. from NAFTA could provide additional insights into the administration’s negotiating objectives. This document asserted that the U.S. will pursue free, fair, and reciprocal trade agreements that increase U.S. economic growth, decrease the U.S. trade deficit, raise U.S. wages, maintain the integrity of U.S. borders, and strengthen the U.S. manufacturing and industrial bases, and that NAFTA “has not met any of these conditions.”
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COMMCOMMENTARY

COMM_a01
13.

A. Goldner, L. Pan & J. Todd: “The ZTE Case: U.S. Sanctions and Export Control Laws”

 
* Authors: Alan Goldner, Esq., agoldner@beneschlaw.com;
Lianzhong Pan, Esq., lpan@beneschlaw.com; and Jonathan Todd, Esq., jtodd@beneschlaw.com; all of Benesch Attorneys at Law.
 
The settlement reached by China’s giant telecommunication company, ZTE Corporation (“ZTE”) with various U.S. government agencies, including U.S. Attorney’s Office, U.S. Department of Justice, U.S. Department of Commerce’s Bureau of Industry and Security (“BIS”) and the Department of the Treasury’s Office of Foreign Assets Control (“OFAC”), was in the headlines during much of March, 2017.  ZTE pleaded guilty to violating U.S. laws on sanction and export control and agreed to pay forfeiture and fines to the U.S. government totaling almost US$900,000,000, with an additional US$300,000,000 suspended fine which will be imposed if ZTE violates its settlement agreement with BIS.
 
The ZTE settlement affords an opportunity for U.S. exporters and foreign importers to assess compliance with U.S. sanctions and export control laws that carry substantial civil and criminal liabilities.
 
Overview of U.S. Sanctions and Export Control Laws
 
The major U.S. sanctions and export control laws include the following:
 
  – International Emergency Economic Powers Act (the “IEEPA”).  The IEEPA authorizes the U.S. President to block transactions and freeze assets to deal with an unusual and extraordinary threat to the national security, foreign policy, or economy of the U.S.  OFAC administers a number of U.S. economic and trade sanctions based on the IEEPA by maintaining several sanctions lists that may have different prohibitions on dealings with countries such as Iran and North Korea, as well as with a large number of specific individuals and entities identified on the List of Specially Designated Nationals (the “SDN List”).
 
  – International Traffic in Arms Regulations (the “ITAR”).  The ITAR prohibit exports and re-exports from either the U.S. or abroad of U.S.-origin defense articles and services that are inherently or predominantly suited for military applications as listed on the U.S. Munitions List (the “USML”).  All manufactures, exporters and brokers of defense articles and services as listed in the USML are required to register with the U.S. Department of State Directorate’s of Defense Trade Controls (“DDTC”).  Any person or company who intends to export or temporarily import defense articles or services is required to obtain a license from DDTC.
 
  – Export Administration Regulations (the “EAR”).  The EAR play a major role in the U.S. export control system as administered by BIS.  The EAR regulate exports, re-exports and deemed-exports of a broad range of U.S.-origin commodities, software and technology, including those that have both civil and military or proliferation applications regardless of their intended civil use.  All items specifically controlled by the EAR are enumerated on the Commerce Control List (the “CCL”).  Responsibility for compliance with the EAR extends to almost all persons or companies that participate in transactions of controlled items.
 
Parties Subject to U.S. Sanctions and Export Control Laws
 
Many companies believe that simply because they are not U.S. registered companies or, even if they are U.S. registered companies they do not export “dangerous” items from the U.S., the U.S. sanctions and export control laws don’t apply.  This is WRONG!
 
Generally, the U.S. seller and the direct foreign buyer of goods subject to the EAR are the principal parities in interest and are responsible for compliance with the EAR.  However, freight forwarders, carriers, consignees or other agents acting on behalf of the principal parties are also responsible for their own actions, regardless whether they take place inside or outside the U.S.
 
For purpose of U.S. sanctions laws, the following persons and companies are included in the definition of “U.S. persons” who are obligated to comply:
 
  – U.S. citizens or permanent resident aliens of the U.S., even if located outside the U.S. and/or acting on behalf of a non-U.S. company;
  – Foreign persons or companies acting inside the U.S. territory or causing actions in the U.S. in breach of rules, even if acting on behalf of a non-U.S. company;
  – Companies that are incorporated, organized or based in the U.S., including overseas branches or divisions of U.S. companies.
 
Transactions Subject to U.S. Sanctions and Export Control Laws
 
BIS not only regulates general export of controlled items subject to the EAR, it also regulates re-export and deemed export of those items.  If a company outside the U.S. wishes to export or re-export a product that is of U.S.-origin or has a U.S. connection, then such product may require a license from BIS.
 
  – Re-export
. A re-export is the shipment or transmission of an item subject to the EAR from one foreign country to another foreign country. A re-export also occurs when there is a release of technology or software or source code subject to the EAR in one foreign country to a national of another foreign country. The ZTE case is a good example of violation of the re-export control rules.  ZTE used multilayer intermediate companies organized in China and other foreign countries to transport ZTE products containing U.S.-origin components to Iran, which is on the U.S.’s sanctioned country list.
 
  – Deemed export
.  Under the EAR, the release of controlled technology to a foreign person in the U.S. is deemed to be an export to the person’s country of nationality and the releasing party is obligated to obtain an export license before releasing. Typically, universities and research institutions conducting high technology, bio-chemical, medical, computer and other scientific research and development activities are the deemed export license applicants, especially when they need to release controlled information to foreign students or visitors in the U.S.
 
Compliance with U.S. Sanctions and Export Control Laws
 
Violation of the U.S. sanctions and export control laws may result in stringent criminal and/or civil penalties.  All persons and entities involved in transactions of U.S.-origin goods, software, technology and services must pay close attention to the compliance with the U.S. sanctions and export control laws.
 
In general, in order to reduce the likelihood of violation of U.S. sanctions and export control laws in commercial transactions, the parties participating in such transaction should first consider the following key factors in determining whether the export is permitted and, if so, whether an export license is required:
 
   – The item being exported.  If the item for export has a specific Export Control Classification Number (“ECCN”) on the CCL, then it is a dual-use item for export control purposes. You can also find out the reasons for control based on the ECCN.
 
  – The final destination of the being exported item.  If the reasons for control listed in the ECCN entry matches with the country of final destination in the EAR Country Chart, you may determine that your export or re-export transaction requires an export license unless a license exception is available under the applicable EAR.
 
  – The end-user and end-use of the being exported item.  If the end-user and/or end use of the item being exported is under special restrictions (e.g., the end-user or end-use involves in weapons proliferation activities) under the EAR, then a license is still required, even though a license is not required based on the final destination determination.
 
The EAR is the broadest export control regime, and therefore, the EAR compliance is of particular concern to businesses involved in global trade. However, a diligent client will also need to manage compliance with the ITAR and OFAC compliances, since each of the regimes is unique and separately enforced.  For example, because OFAC’s embargoes and sanction programs are dynamic, it is very important for clients to check the SDN List on a regular basis to ensure that any transaction with the latest restricted countries, individuals and entities will not be engaged in, or, otherwise a special authorization from OFAC has been obtained.  In addition, clients shall note that the ITAR includes a list of proscribed countries that are subject to U.S. arms embargoes, and the list of ITAR proscribed countries is significantly broader than the SDN list of countries subject to the U.S. economic sanctions as maintained by OFAC.
 
Conclusion
 
As summarized above, the U.S. sanctions and export control laws have extremely broad jurisdictional (including extra-territorial) reach.  They are administered and enforced by multiple U.S. government agencies driven by combination of national security, trade protection, foreign policy, anti-terrorism and other political concerns and objectives.  To fully understand and comply with the U.S. sanctions and export control laws, a case-by-case consultation with your qualified legal and compliance advisor is required. 

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COMM_a2
14.

C. Penman: “AG Jeff Sessions Left Compliance Officers with More Questions than Answers … and an Invitation”

 
* Author: Carrie Menman, Chief Compliance Officer of NAVEX Global and Senior Vice President, Advisory Services. Carrie Menman can be contacted through here.
 
Attorney General Jeff Sessions was a keynote speaker at the 2017 Ethics & Compliance Initiative’s Annual Conference last week. Whatever your politics are, it was important that we hear from him on his priorities for enforcement of corporate wrongdoing. We heard a lot of things that an audience filled with ethics and compliance professionals would expect to hear during his scripted remarks. And, ECI’s CEO, Pat Harned, did a great job during the Q&A discussion, which offered a few more quotable moments from the AG.
 
The question is, however, did we all try to read between the lines too much, or too little? Below is what we heard. The next question is what will we see? Three themes emerged from his scripted remarks.
 
First, AG Sessions said that the Department of Justice (DOJ) is committed to enforcing all laws, including FCPA and the prosecution of white collar crime.
 
As we re-double our efforts to combat violent crime, we will still enforce the laws that protect American consumers and ensure that honest businesses aren’t placed at a disadvantage. This Department of Justice will continue to investigate and prosecute corporate fraud and misconduct; bribery; public corruption; organized crime; trade-secret theft; money laundering; securities fraud; government fraud; health care fraud; and Internet fraud, among others.
 
As implied in the quote above, the second theme was one of leveling the playing field to ensure American organizations are not operating at a disadvantage to unfair competition. This is very much in line with what we have been hearing from the administration’s “America First” focus.
 
Our department wants to create an even playing field for law-abiding companies. We will continue to strongly enforce the FCPA and other anti-corruption laws.  Companies should succeed because they provide superior products and services, not because they have paid off the right people.
 
To further emphasize this focus, during the Q&A, AG Sessions said he is open to suggestions from this community on how they could look for issues that are hurting American companies.
 
The final point of focus in his prepared remarks was that of bringing individual wrongdoers to justice. This too is intended to keep companies whole if the misconduct threatening the organization is isolated to an individual or individuals.
 
The Department of Justice will continue to emphasize the importance of holding individuals accountable for corporate misconduct. It is not merely companies, but specific individuals, who break the law. We will work closely with our law enforcement partners, both here and abroad, to bring these persons to justice.
 
During the Q&A, the AG said that stockholders should not pay the price for wrongdoing of individuals. “Corporate sharpies who have cut corners should be prosecuted.” He went on to say that corporations cannot be a “guarantor” for thousands of employees when one person goes awry.
 
So What Are We to Make of What We Heard?
 
If I could be allowed a little flexibility to read between the lines – which as a compliance professional is almost a job requirement – here are some of my takeaways.
 
First, enforcing FCPA and prosecuting white collar crime is a priority but not the priority. That is not to say the distinction is right or wrong, just clear. AG Sessions identified his two top priorities as “turning back recent increases in violent crime” and “to restore a lawful system of immigration.” There is only so much time and resources to put into “enforcing all crimes.” If resources happen to become limited, it may be the white collar crimes that will be deprioritized, but based on his remarks, we should not expect to see organizations getting a free pass on law-breaking.
 
Second, in regard to leveling the playing field for honest companies, it was encouraging to hear that the effectiveness of compliance programs will continue to be taken into account as part of investigations.
 
We have done our part to reward effective compliance programs and to better understand your efforts; you have my commitment that we will continue to do so.
 
Lastly, on his point about prosecuting individual wrongdoers. This brings us to the Yates Memo. It was never mentioned in name but described with accuracy. There did seem to be a difference of perspective, however, on the intended purpose of prosecuting an individual. The Yates Memo strived to ensure wrongdoers would not be allowed to hide in their company’s shadows and to deter would-be wrongdoers. AG Sessions emphasized the idea that prosecuting individuals would be beneficial to shareholders and organizations as a whole, which may otherwise be crippled from charges. Both purposes are valid. What I am interested in seeing is if individual prosecution turns into a scapegoating defense for organizations that in fact do have more widespread corruption yet are now able to hide behind an individual’s shadow.
 
AG Sessions offered an invitation to our community to share suggestions with him particularly on incentives and protecting American companies from unfair competition. Ms. Harned quickly told him that we would take him up on this – and we should. ECI has strived for decades to ensure that we have an ongoing dialogue with the prosecutor community and now more than ever, we need to keep these lines of communication open.
 
Those are my thoughts on what I heard. Here’s a link to Mr. Session’s remarks at ECI.   

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COMM_a3
15.

M. Volkov: “Wait a Minute – The FCPA Enforcement Sky Did Not Fall?”

(Source:
Volkov Law Group Blog. Reprinted by permission.)
 
* Author: Michael Volkov, Esq., Volkov Law Group, mvolkov@volkovlaw.com, 240-505-1992.
 
No matter what, I am an optimist. A pessimist’s worldview and lifestyle is really unattractive. I would always rather see the glass as half full.
 
Too many in the professional world have confused negative perspectives and predictions as a way to demonstrate their own expertise. It is an unfortunate practice in today’s professional world that negativity has replaced unbiased expertise.
 
Pessimists always argue that if they assume the worst, they will be pleasantly surprised when things turn out okay. That is not a good way to live. Negativity can bring about negative results. Cynics can breed cynicism.
 
So lets turn to the FCPA enforcement issue. When the new administration came into power, many in the FCPA world generated attention by making wildly negative predictions. Or should I say they wanted to be proven wrong and were afraid to make an objective call. Instead, the “negative nabobs of nattering” negativity predicted the new administration was going to dismantle the Justice Department’s anti-corruption enforcement program.
 
They have to admit they were wrong, but they would “happily” do so since they were proven wrong. To the extent that companies relied on these commentators, I am afraid they should revisit the issue. The new administration is not doing anything to undermine FCPA enforcement, and has indicated that it intends to continue full speed ahead.
 
The additional question I ask myself is why do commentators try to generate fear and concern about FCPA enforcement activities, lamenting the state of the world, the inevitable rise of corrupt politicians and the deterioration of our global community? Some people like being negative – we all know someone like that, who love to complain, create drama and generate topics to talk about and entertain. The professional community reflects our basic community and one should expect the same.
 
Those who predicted the demise of FCPA enforcement ignored several significant trends. The Justice Department has dedicated significant resources – prosecutors and FBI agents – to anti-corruption enforcement.
 
Further, the Justice Department has expanded the global enforcement network of prosecutors and law enforcement by promoting international training, ongoing working relationships and sharing of information. Bringing together a collaborative relationship among various countries has an inevitable influence on policymakers.
 
Finally, the Justice Department’s FCPA enforcement program has been a success, especially from the eyes of the Justice Department itself. The increase in FCPA enforcement began under the Bush Administration and continued into the Obama Administration. The bi-partisan nature of this increase meant that its success was never going to be claimed by one political party over another, nor used as a club to beat the other party over the head. As a consequence, both Administrations embraced the program, supported it with resources, and reaped the benefits of large corporate settlements.
 
When the new administration came to power, notwithstanding past comments made by the president against the FCPA, the political risks of relaxing or eviscerating bi-partisan enforcement programs to favor companies in the name of increasing bribery of foreign officials were untenable. In other words, there was about as much chance of the new administration wrecking the FCPA enforcement program as there was the new Attorney General agreeing to legalize marijuana. It was not – and is not – going to happen.
 
So, to my friends, who once again rallied around Chicken Little cries of doom surrounding FCPA enforcement, you can once again rest – the sky is not falling and the FCPA will continue on its enforcement road to the next adventure.

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

MSEX/IM MOVERS & SHAKERS

MS_a116. Monday List of Ex/Im Job Openings: 102 Jobs Posted

(Source: Editor)  
 
Published every Monday or first business day of the week.  Send openings in the following format to jobs@fullcirclecompliance.eu.
 
COMPANY; LOCATION; POSITION TITLE (WEBLINK); CONTACT INFO; REQ ID
 
#” New listing this week:
 

* Aerojet Rocketdyne; Huntsville AL; 
Specialist, International Trade & Compliance
; Requisition ID: 11972
# The Aerospace Corporation; El Segundo CA; 
Export Control Staff III
; Requisition ID: 19321

* Amazon; Luxembourg, Luxembourg;
Trade Compliance Project Integration Manager (M/F)
; Requisition ID: 479077

* Amazon; Mexico City, Mexico;
Mexico Trade Compliance Program Manager
; Requisition ID: 520481
* Amazon; Mexico City, Mexico;
Senior Manager, Mexico Trade Compliance
; Requisition ID: 520460

* Amazon; Seattle WA;
NA Compliance Analyst
; Requisition ID: 256357

* Amazon; Seattle WA;
U.S. Export Compliance PM
; Requisition ID: 475927

* Amazon; Tokyo, Japan;
Trade Compliance Specialist
; Requisition ID: 481891

* Advanced Micro Devices (AMD); Austin TX;
Import/Export Compliance Manager; Requisition ID: 24061

* Ansell; Iselin NJ;
Senior Specialist NA Trade Compliance
; Requisition ID: IRC6513
* ASML; Veldhoven, the Netherlands;
Senior Manager Trade & Customs
; Requisition ID: RC05619

* Barnes Group Inc.,; Bristol CT and Windsor CT;
Counsel & Director of Trade Compliance, Government Contracts Program; Requisition ID: 2200-271

* Bemis Company; Neenah WI;
Director – Global Trade Compliance
; Requisition ID: REQ_13735
* Berry Plastics Corporation; Evansville IN;
International Trade Compliance Administrator
; Requisition ID: 4054

# Boeing; Sydney, Australia, and other locations;
Global Trade Control Manager; Requisition ID: 1700006067

* Brunswick Corporation; Lake Forest IL;
Trade Compliance Auditor
; Becky Longrie, 847-735-4755,
becky.longrie@brunswick.com
; Requisition ID: 22999

# Cobham Advanced Electronic Solutions; Exeter, NH, Plainview, NY, Eatontown, NJ, or Lansdale, PA;
Export Compliance Manager
; Charles Trokey
Charles.trokey@yoh.com

* CSRA Inc.; Falls Church VA;
Global Trade & Compliance Principal
; Alan Strober 571-375-4890; Requisition ID: 17002RN

* Danaher; Wash DC (Other locations possible);
Global Trade Compliance Manager; Requisition ID: DAN000510

* DB Schenker (2 positions); Atlanta GA, and Long Beach CA;
Area Customs Director
;
Crystal.Adair@dbschenker.com
; Requisition ID: 17P009

* DHL; Netherlands;
Manager Customs Compliance
; Requisition ID: req39070 

* Erickson Inc.; Portland OR;
Trade Compliance Manager
; 
Joanna Rafiner-Jarboe
; Requisition 2017-2267

* Esterline Technologies Corporation; Bellevue WA;
Audit Manager – Compliance
; Requisition ID: 8215BR

* Esterline Technologies Corporation; Brea CA;
Sr. Trade Compliance Manager;
Requisition ID: 7333BR

* Esterline Technologies Corporation; Paso Robles CA;
Trade Compliance Manager
; Requisition ID: 6148BR

* Expeditors; Sunnyvale CA;
Customs Compliance Specialist
* Export Solutions Inc.; Melbourne FL; Trade Compliance Specialist;
info@exportsolutionsinc.com

* FD Associates, Tysons Corner VA;
Senior Export Compliance Associate
;
jobs@fdassociates.net

* FlightSafety International; Oklahoma; Trade Compliance Advisor; Requisition ID 16480

*
FLIR; Billerica MA; 
Sr. Defense Trade Licensing & Compliance Analyst
; Requisition ID: 8008

* General Dynamics Information Technology; Falls Church VA;
Principal Contracts Administrator – Export Compliance Coordinator
;
Kara.Reynolds@gdit.com
; Requisition ID: 2017-21288

* Givaudan; Bogor, Indonesia;
Compliance Manager
; Requisition ID: 68063
# Harris Corporation; Clifton NJ; 
Trade Compliance Analyst

lsolomon@harris.com
; Requisition ID: ES20172404-18675

* Ingersoll Rand; San Diego, CA; Latin America Trade Compliance Manager (Trilingual: English, Spanish, and Portuguese); Requisition ID: 1610632

* Intel; Santa Clara CA;
Global Export Compliance Specialist
; Requisition ID: JR0814909

* KPMG; Antwerp, Brussels;
Manager Global Trade & Customs – SAP GTS
; 122756BR

* Lam Research Corporation; Fremont CA;
Foreign Trade Intern 1

* Lam Research Corporation; Shanghai, China;
Foreign Trade Analyst 

* Lutron; Coopersburg PA;
Trade Manager-Export
; Requisition ID: 2926

* L-3 Technologies; Arlington VA;
Sr. Mgr. Corporate Customs Compliance
; Requisition ID: 087862

# L-3 Technologies, Platform Integration Division; Waco TX;
 
Import/Export Compliance Administrator 3
; Requisition ID 
089343

* Lockheed Martin; Orlando FL;
International Trade Compliance Sr Staff / ITAR / EAR / Export Control Officer
; Requisition ID: 387435BR

* Mars – Wrigley; Chicago IL; 
Global Trade Compliance Analyst (Corporate Export)
;
Ryan.Martin@effem.com
; Requisition ID: 69452

* Maxim Integrated; Dallas TX;
Manager, Global Trade
; 3304BR

* Medtronic; Heerlen, The Netherlands;
Trade Compliance Analyst
; 16000DYY

* Medtronic; Wash DC;
Global Trade Lawyer
;
stacy.m.johnson@medtronic.com
; Requisition ID: 170002ON

* Meggitt PLC; Maidenhead, UK;
Trade Compliance Officer 

* Meggit-USA, Inc.; Simi Valley CA;
Trade Compliance Administrator
; Requisition ID: 25172

# Northrop Grumman Corporation; Falls Church VA;
International Trade Compliance Analyst
; 16016665
# Northrop Grumman Corporation; Herndon VA;
International Trade Compliance Analyst 2
; Requisition ID: 17010105
# Northrop Grumman Corporation; Herndon VA;
International Trade Compliance Analyst 3
; Requisition ID: 17010094

* Northrop Grumman Corporation; Herndon VA;
International Trade Compliance Analyst 3/4; Requisition ID: 17001180

# Northrop Grumman Corporation; Linthicum MD;
International Trade Compliance Analyst 1
; 17003433
# Northrop Grumman Corporation; Linthicum MD;
International Trade Compliance Analyst 3
; 17005262

* Northrop Grumman Sperry Marine; New Malden, UK;
Trade Compliance Coordinator
;
careers.uk@sperry.ngc.com

* Panduit; Tinley Park IL;
Global Trade Compliance Agent
; Requisition ID: PAND-03297

* Parexel; Billerica MA;
Vice President, Chief Compliance Officer; Requisition ID: pare-00024091

* Plexus Corporation; Neenah Wi;
Manager – Export Compliance
; Requisition ID: 14645BR
* Plexus Corporation; Neenah Wi;
Manager – Import Compliance
; Requisition ID: 14593BR
* Premier Farnell Organisation; Leeds, UK;
Trade Compliance Specialist – Europe
; 4301

* Roanoke Insurance Group; Schaumburg IL;
Carnet Service Representative
; Requisition ID: 1019

* Raytheon; Andover MA and Woburn MA;
Manager of Export Import Control, Empowered Officials
; Requisition ID: 93622

* Raytheon; Arlington VA;
Export Licensing Manager I
; Requisition ID: 94113BR

* Raytheon Australia; Canberra, Australia;
Export/Import Operations Advisor; Requisition ID: 86438BR

* Raytheon; McKinney TX;
Counsel Global Trade Compliance
; Requisition ID: 94826BR

* Raytheon; Portsmouth RI;
Manager of Export Import Control, Empowered Official
; Requisition ID: 93628

* Raytheon; Woburn MA;
Supply Chain Compliance Manager; Requisition ID: 93734BR

* Raytheon Space & Airborne Systems; McKinney TX;
Sr Exp License & Compliance Adv;
Jennifer.a.martindale@raytheon.com
; 310-334-7499; Requisition ID:
91503BR

# Saab Defense and Security USA LLC; Syracuse NY;
Senior Import/Export Analyst
; Requisition ID: USA_00413
# SABIC; Houston TX;
Analyst Import/Export Compliance
;
danielle.cannata@sabic.com
; Requisition ID: 7792BR

* Talbots; Hingham MA;
Sr Mgr Global Trade & Customs Compliance
; Requisition ID: 1077

* Talbots; Lakeville MA;
Dir., Global Logistics & Customs Com
; Requisition ID: 1085

* Teledyne Microwave Solutions; Mountain View CA;
 


Trade Compliance Administrator 2
; Requisition ID: 2017-4111

* Tesla Motors; Fremont CA;
Global Supply Manager – Logistics
; Requisition ID: 38153

* Thales Defense and Security, Inc.; Clarksburg MD; Senior Manager Trade Compliance
; William.Denning@thalesdsi.com; Requisition ID: 2592

* ThermoFisher Scientific; Breda, the Netherlands;
Import/Export Specialist – EMEA CMD Commercial Offices
; Requisition ID: 44930BR

* ThermoFisher Scientific; Matamoros, Mexico;
Import/Export Supervisor
; Requisition ID: 39750BR

# ThermoFisher Scientific; Germering, Germany;
Specialist, Trade Compliance
; 47293BR
# ThermoFisher Scientific; Shanghai, China;
Trade Compliance Specialist
; Requisition ID: 37381BR
# ThermoFisher Scientific; Shanghai, China;
Trade Compliance Specialist
; Requisition ID: 48394BR
# ThermoFisher Scientific; Shanghai, China;
Trade Compliance Specialist
; Requisition ID: 44904BR

* UCB; Braine L’alleud, Belgium;
Manager Global Customs and Trade Compliance


# United Technologies Corporation, UTC Aerospace Systems; Brea CA;
Sr. Anlst, Intl Trade Compl
; Requisition ID: 46798BR

* United Technologies Corporation, UTC Aerospace Systems; Charlotte NC;

Specialist, ITC IT Systems
; Requisition ID:
33792BR

* United Technologies Corporation, UTC Aerospace Systems; Chula Vista CA;

International Trade Compliance Intern
; Requisition ID:
39406BR

* United Technologies Corporation, UTC Aerospace Systems; Chula Vista CT;
International Trade Compliance Analyst
; Requisition ID: 46876BR

* United Technologies Corporation, Otis; Farmington, CT;
International Trade Compliance (ITC) Program Manager
; Requisition ID: 44984BR

* United Technologies Corporation, UTC Aerospace Systems; Fort Worth TX;
Manager, Intl Trade Compl
; Requisition ID: 46311BR

* United Technologies Corporation, UTC Aerospace Systems; Santa Fe Springs CA;
Sr. Analyst, International Trade Compliance
; Requisition ID: 46184BR

* United Technologies Corporation, UTC Aerospace Systems; Troy OH;
Sr. Manager, Intl Trade Compliance
; Requisition ID: 44065BR 

* United Technologies Corporation, UTC Aerospace Systems; Westford MA;
Senior Analyst, International Trade Compliance
; Requisition ID: 31576BR

* United Technologies Corporation, UTC Aerospace Systems; Windsor Locks CT;
Customs and Import Specialist; Requisition ID: 42570BR

# United Technologies Corporation, UTC Aerospace Systems; Windsor Locks, CT; Investigations and Disclosures Specialist; Requisition ID: 46282BR


* United Technologies Corporation, UTC Aerospace Systems; Windsor Lock CT;
International Trade Compliance Site Lead
; Requisition ID: 47259BR

* Varex Imaging Corp; Salt Lake City UT; 
Senior Customs Compliance Analyst
; Requisition ID: 
11402BR

* Vigilant; Unknown location in the U.S.;
BioTech/Pharmaceutical Global Trade Analyst

* XPO Logistics; Greenwich CT;
Global Trade Compliance Analyst

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

ENEDITOR’S NOTES

* Harry S. Truman (8 May 1884 – 26 Dec 1972; was the 33rd President of the United States (1945-53), assuming that office upon the death of Franklin D. Roosevelt during the waning months of World War II).
  – “The reward of suffering is experience.”
 
* Friedrich A. von Hayek (8 May 1899 – 23 Mar 1992; was an Austrian-British economist and philosopher best known for his defense of classical liberalism. Hayek shared the 1974 Nobel Memorial Prize in Economic Sciences with Gunnar Myrdal for his pioneering work in the theory of money and economic fluctuations.)
  – “The curious task of economics is to demonstrate to men how little they really know about what they imagine they can design.”
  – “‘Emergencies’ have always been the pretext on which the safeguards of individual liberty have been eroded.”
 
Monday is pun day.

Q. Why did Henry David edit his writing about Walden Pond so carefully?
A. Because he was Thoreau.

Q. If April showers bring May flowers, what do May flowers bring?
A. Pilgrims.
  — Cindy Hollohan, Charlotte, NC
* * * * * * * * * * * * * * * * * * * *

EN_a318
. Are Your Copies of Regulations Up to Date?
(Source: Editor)

The official versions of the following regulations are published annually in the U.S. Code of Federal Regulations (C.F.R.), but are updated as amended in the Federal Register.  Changes to applicable regulations are listed below.
 
*
ATF ARMS IMPORT REGULATIONS
: 27 CFR Part 447-Importation of Arms, Ammunition, and Implements of War
  – Last Amendment: 15 Jan 2016: 81 FR 2657-2723: Machineguns, Destructive Devices and Certain Other Firearms; Background Checks for Responsible Persons of a Trust or Legal Entity With Respect To Making or Transferring a Firearm. 
 
*
CUSTOMS REGULATIONS
: 19 CFR, Ch. 1, Pts. 0-199
  – Last Amendment: 27 Jan 2017: 82 FR 8589-8590: Delay of Effective Date for Importations of Certain Vehicles and Engines Subject to Federal Antipollution Emission Standards; and 82 FR 8590: Delay of Effective Date for Toxic Substance Control Act Chemical Substance Import Certification Process Revisions.

* DOD NATIONAL INDUSTRIAL SECURITY PROGRAM OPERATING MANUAL (NISPOM): DoD 5220.22-M
  – Last Amendment: 18 May 2016: Change 2: Implement an insider threat program; reporting requirements for Cleared Defense Contractors; alignment with Federal standards for classified information systems; incorporated and canceled Supp. 1 to the NISPOM  (Summary here.)

* EXPORT ADMINISTRATION REGULATIONS (EAR): 15 CFR Subtit. B, Ch. VII, Pts. 730-774 
  – Last Amendment: 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: 7 Mar 2017: Harmonized System Update 1702, containing 1,754 ABI records and 360 harmonized tariff records. 
  – HTS codes for AES are available
here
.
  – HTS codes that are not valid for AES are available
here.
 
INTERNATIONAL TRAFFIC IN ARMS REGULATIONS (ITAR): 22 C.F.R. Ch. I, Subch. M, Pts. 120-130.
  – Latest Amendment: 11 Jan 2017: 82 FR 3168-3170: 2017 Civil Monetary Penalties Inflationary Adjustment
  – The only available fully updated copy (latest edition 8 Mar 2017) of the ITAR is Bartlett’s Annotated ITAR (“BITAR”), by James E. Bartlett III. The BITAR contains all ITAR amendments to date, plus a large Index, over 750 footnotes containing case annotations, practice tips, DDTC guidance, and explanations of errors in the official ITAR text.  Subscribers receive updated copies of the BITAR in Word by email, usually revised within 24 hours after every ITAR amendment.  The BITAR is available by annual subscription from the Full Circle Compliance website.  BAFTR subscribers receive a 25% discount on subscriptions to the BITAR, please contact us to receive your discount code.

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

Review last week’s top Ex/Im stories in “Weekly Highlights of the Daily Bugle Top Stories” published
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 of this newsletter cannot be relied upon as legal or expert advice.  Consult your own legal counsel or compliance specialists before taking actions based upon news items or opinions from this or other unofficial sources.  If any U.S. federal tax issue is discussed in this communication, it was not intended or written by the author or sender for tax or legal advice, and cannot be used for the purpose of avoiding penalties under the Internal Revenue Code or promoting, marketing, or recommending to another party any transaction or tax-related matter.

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

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