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17-0511 Thursday “Daily Bugle”

17-0511 Thursday “Daily Bugle”

Thursday, 11 May 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 
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[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/ITA: “You Should Export” 
  4. DHS/CBP Sends Out Update on FTA Origination Analysis and Certification when no Tariff Change Rule (TCR) 
  5. State/DDTC Posts Three Name Change Announcements 
  1. Korea Herald: “Cosmetics Firms Foresee Export Control Tower” 
  2. ST&R Trade Report: “Nanoscale Material Imports Reporting and Recordkeeping Requirements Delayed”
  3. ST&R Trade Report: “Trade Deficit Study Has “Misguided” Focus, Think Tank Says”  
  1. J. Todd & J.P. Clark: “Between the Clouds: Best Practices for Selecting Hosted Solutions in the Transportation and Logistics Industry” 
  2. M. Volkov: “The Danger of Corporate Scandals – When CEOs and Senior Executives Circle the Wagons to Impugn a CCO” 
  3. Gary Stanley’s ECR Tip of the Day 
  1. Kevin DiBartolo Moves to Northrop Grumman 
  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

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OGS
OTHER GOVERNMENT SOURCES

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

(Source: Federal Register)
* Justice; 
Alcohol, Tobacco, Firearms, and Explosives Bureau
; NOTICES; Agency Information Collection Activities; Proposals, Submissions, and Approvals [Publication Date: 12 May 2017.]:

  – Application for National Firearms Examiner Academy

  – Application for Restoration of Firearms Privileges

  – National Firearms Act; Special Occupational Taxes
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OGS_a22. Commerce/BIS: (No new postings.)

(Source: Commerce/BIS

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What’s next for your business? Maybe you’ve learned that demand in your industry sector is growing in another country, but aren’t sure how to take your domestic business global. In today’s fast-moving economy, it can be challenging to research and develop a plan for your company’s international growth.

As many successful exporters have already found out, it’s worth investing time and effort to cultivate foreign sales. If your business is already established in the United States, one of the worlds’s most open and competitive markets, that’s a good indicator for international success.  Moreover, with more than 95 percent of the world’s consumers beyond U.S. borders, why miss out on the opportunities?  In fact, 98 percent of all U.S. exporters are small and medium-sized businesses – just like yours.
 
So where do you begin? I have worked with many successful U.S. exporters, and they all started out by learning what actually goes into selling products or services across borders. Sure, there are many facets to understand, but we make it easy on export.gov.
 
As the lead trade promotion agency of the U.S. government, the International Trade Administration’s U.S. Commercial Service provides impartial, accurate and valuable knowledge and insights.  Each year, thousands of U.S. companies turn to us to leverage our global network in more than 100 U.S. cities and 75 markets. Our trade professionals have the contacts and in-country expertise you need; whether it’s evaluating market conditions, finding foreign buyers, working through export documentation, or handling the logistical, financial, and legal aspects of exporting.
 
Start by watching our new Export Basics video series. It covers these topics:
 
  – Get Ready to Export
– Learn about evaluating your company’s readiness and creating a plan.
  – Plan Your Market Entry Strategy
– Find out how to choose the best markets and position your company for success.
  – Find Foreign Buyers
– Understand the different ways you can find buyers.
  – Get Paid and Finance Your Export Transaction
– Avoid payment problems by learning about financing options.
  – Make the Export Sale
– Discover how to manage the paperwork and preparing your product for shipment.
  – Intellectual Property Rights and International Business Culture
– Enhance your understanding of how to protect your product and put your best foot forward.
 
The videos are short, so you can watch an entire series within a 5-10 minute block of time. When you are ready to learn more, explore export.gov.  You will find export how-to guides and webinars, international market intelligence and trade data, access to trade events, and services our trade staff can provide.
 
Watch the first video. Let us help you get started today.
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OGS_a44
. DHS/CBP Sends Out Update on FTA Origination Analysis and Certification when no Tariff Change Rule (TCR)

(Source:
CSMS# 17-000270, 10 May 2017.)
 
Trade Policy Updates
 
Manufacturers, exporters and importers are advised that a very limited number of tariff items in the Harmonized Tariff Schedule of the United States (HTSUS) do not have corresponding free trade agreement (FTA) tariff change rules (TCRs) (also known as “product specific rules of origin” or by the acronym “PSRs”) because they were negotiated using a Harmonized Tariff Schedule (HTS) that was subsequently modified in 2007, 2012, or 2017, and the corresponding TCRs have not been implemented.
 
The following table shows the up-to-date/out-of-date status of the TCRs for each FTA: SEE ATTACHED DOCUMENT
 
Until revised TCRs are implemented, manufacturers/exporters/ importers of affected goods seeking to perform a tariff-shift origination analysis should classify the good and its materials using the most recent HTSUS in which the tariff item has a corresponding TCR and perform the origination analysis using that year’s HTSUS.
 
Until revised TCRs are implemented, the certificate of origin, ideally, should indicate both the current HTSUS number and the previously corresponding HTSUS number used to perform the origination analysis in parenthesis and with wording to that effect.
 
For example, beneath the description of the good in block 5 of the CO, the statement “(Origination analysis performed using HTSUS xxxx.xx.xxxx (20XX) since no TCR for item number yyyy.yy.yyyy in 2017 HTSUS.)” [Replace placeholders with the appropriate numbers/dates]. The CO could look something like this: “Origination analysis performed using HTSUS xxxx.xx.xxxx (2016) since no TRC for item number yyyy.yy.yyyy in 2017 HTSUS”
 
This issue was previously addressed with respect to the 2007 and 2012 HTSUS in CSMS #13-000368 (found here).
 
See H026740 (here) and H074136 (here) for rulings employing a previous year’s HTSUS to perform the TCR analysis.
 
Current and previous iterations of the HTSUS, with their corresponding TCRs, are available from the USITC website.
 
Certificates of Origin following these instructions will remain valid even after the corresponding TCRs have been updated.
 
Questions with respect to these instructions should be directed to the Trade Agreements Branch at fta@dhs.gov.
 
 
Note that supplemental information to this message is available in the form of one or more file downloads.

Please follow the link in this email message to the CSMS web site to access this information.

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OGS_a55
. State/DDTC Posts Three Name Change Announcements

(Source:
State/DDTC) [Excerpts.]
 
State/DDTC has posted the following three name change announcements on its website.
 
 
Effective immediately, Fuji Heavy Industries Ltd. will change as follows: SUBARU Corporation. 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, the foreign entities will change as follows:
 
  – Societe Anonyme to Societe par Actions simplifiee Arianespace    
  – SA to Arianespace SAS
 
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, Airbus DS Optronics GmbH of Germany and Airbus DS Optronics (Pty) Ltd. will change as follows: HENSOLDT Optronics GmbH and HENSOLDT Optronics (Pty) Ltd. 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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NWSNEWS

NWS_a16. Korea Herald: “Cosmetics Firms Foresee Export Control Tower”

(Source:
Korea Herald) [Excerpts.]
 
Cosmetics companies in Korea are looking forward to streamlined central control over industry regulations under the newly elected president.
 
During his campaign, President Moon Jae-in pledged to create a new plan for the development of the cosmetics industry that would integrate the regulatory and funding authority of various agencies, creating a more cooperative system to help cosmetics companies export to other countries.
 
Moon previously pledged that he would create a system that would allow companies to “easily check relevant policies and receive support for exports.”
 
Under the current system, cosmetics companies receive funding and information regarding export processes from the Korean Food and Drug Administration, the Ministry of Health and Welfare and the Ministry of Trade, Industry and Energy.
 

The dispersed system has not only created extra red tape for companies hoping to take their products abroad, but has also led to mixed information and overlapping funding for research and development. …

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The Environmental Protection Agency postponed from 12 May to 14 Aug. the effective date of a final rule allowing the EPA for the first time to use its authority under section 8(a) of the Toxic Substances Control Act to collect health and safety information on chemicals currently in the marketplace when imported, manufactured, or processed as nanoscale materials.
 
This rule applies to chemical substances that are solids at 25ºC and standard atmospheric pressure; that are imported, manufactured, or processed in a form where any particles, including aggregates and agglomerates, are in the size range of 1-100 nanometers in at least one dimension; and that are imported, manufactured, or processed to exhibit one or more unique and novel properties.
 
Under this rule persons that do or intend to import, manufacture, or process these chemical substances will have to electronically report certain information, including the specific chemical identity, production volume, methods of manufacture and processing, use, exposure and release information, and existing data concerning environmental and health effects. This rule involves one-time reporting for existing discrete forms of certain nanoscale materials and a standing one-time reporting requirement for new discrete forms of certain nanoscale materials before they are imported, manufactured, or processed.
 
This rule will not apply to the following.
 
  – Chemical substances imported, manufactured, or processed in forms that contain less than one percent by weight of any particles, including aggregates and agglomerates, in the size range of 1-100 nm.
  – Certain biological materials including DNA, RNA, proteins, enzymes, lipids, carbohydrates, peptides, liposomes, antibodies, viruses, and microorganisms.
  – Chemical substances that dissociate completely in water to form ions with a size of less than 1 nm (except chemical substances manufactured at the nanoscale that release ions but do not dissociate in water to form those ions).
  – Chemical substances formed at the nanoscale as part of a film on a surface.
  – Persons that do or intend to import, manufacture, or process the subject chemical substances only in small quantities for research and development.
  – Any manufacturer or processor with sales of less than $11 million per year.
 
The EPA has said this rule is not intended to conclude that nanoscale materials will cause harm to human health or the environment; instead, the agency plans to use the information gathered to determine if any further action under TSCA, including additional information collection, is needed.

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A forthcoming report on significant bilateral U.S. trade deficits has a “misguided” focus on the alleged unfair trade practices of foreign countries, according to a recent article from the Peterson Institute for International Economics. A report exploring the macroeconomic causes and consequences of the aggregate trade balance would provide more insight, the article states, but singling out individual countries according to bilateral deficits “does not make economic sense.”
 
The article states that the U.S. runs an overall trade deficit because its citizens spend more than they earn and finance the difference with foreign credit. As a result, policies that encourage people, businesses, or the government to save will have a bigger impact on improving the trade deficit than trade policy, which has only a negligible effect on the deficit. The overall imbalance does fall more on some countries than others, creating significant bilateral deficits in some cases, but these deficits are a symptom of the aggregate trade balance and not its cause.
 
Further, the article states, bilateral deficits have more to do with country characteristics than unfair trade practices. For example, the U.S. has a large trade deficit with Germany and a large surplus with the Netherlands despite the fact that both countries have the same trade policy as members of the European Union. The difference is that Germany makes goods the U.S. wants, like cars and machinery, while the U.S. makes goods the Netherlands wants, like medical equipment and pharmaceuticals. Similarly, the $250 billion surplus the U.S. runs in services trade does not mean the U.S. engages in unfair trade practices but instead results from the fact that the U.S. is relatively more efficient at producing many traded services that other countries need.
 
There are some reasons to be concerned about the U.S.’ aggregate trade deficit, the article states, and the long-term causes and consequences of persistent trade deficits do need to be better understood. However, a solution is unlikely to be found in the unfair trade practices of foreign countries. In fact, research shows that countries with higher import tariffs tend to have larger trade deficits and that trade liberalization does not affect trade balances. Instead, the article recommends, the administration’s report on bilateral trade deficits should consider the macroeconomic causes and consequences of the aggregate trade balance and take into account trade in value added, not only gross trade flows.

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COMMCOMMENTARY

 
* Authors: Jonathan Todd, Esq., jtodd@beneschlaw.com; and Justin P. Clark, Esq., jclark@beneschlaw.com, both of Benesch Attorneys at Law.
 
Transportation and logistics providers are increasingly adopting cloud technology to bring connectivity and scale to their core operating systems. This trend will continue for the foreseeable future. The Cisco Global Cloud Index projects that 92% of workload will be processed using cloud data centers by 2020. Cloud services offer many practical benefits to the lightning pace of today’s global supply chains, however, they present a number of unique legal risks that may be unfamiliar. Fortunately, proper due diligence into vendors and knowledgeable negotiation of services contracts can help prevent the sunny skies of cloud computing from becoming thunderstorms.
 
The relative “newness” of cloud computing is appealing to industries that are time-sensitive, data-driven, and geographically expansive such as the transportation, logistics, warehousing, and distribution sectors. Cloud computing simply refers to accessing information that is stored elsewhere by means of the internet through a third party provider. Many vendors across a wide range of industries utilize the cloud to run applications and deliver services to customers in a few different ways. The largest and most common cloud service market is known as Software as a Service (“SaaS”). SaaS solutions are third party managed applications that are accessed by the customer via the internet. Any data entered into and stored by the cloud hosted solution will be physically stored on a third party’s server even though it can be accessed anywhere. This certainly adds accessibility, along with a degree of disaster recovery and business continuity benefits, and yet it raises certain other areas of risk that are not associated with traditional software licenses.
 
Many do not realize that traditional hardware and up-stream service providers work behind the scenes, often hidden from view, to make the groundbreaking functionality cloud services work correctly. This maze of equipment, proprietary code, and providers, can take on characteristics similar to “double brokering” scenarios of which transportation and logistics professionals are all too familiar. It is critically important to understand what you are purchasing, and from whom you are purchasing, when placing your enterprise’s entire operational capabilities online through a hosted TMS, WMS, or other core system.
 
Take time and conduct adequate due diligence when sourcing application and services vendors. In very simple terms, transportation and logistics companies should understand how data will flow through the system like freight through a supply chain. The following subjects are well worth discussion with your prospective vendors before you sign and write a check.
 
Key Questions to Ask Cloud Application and Services Vendors
 
  – Location – Where is your data stored? In the cloud . . . right? No, it will be on a server that is physically located somewhere in the world. You need to find out where, including the specific facility address, how many other customers will have data on the same server, whether the data will be moved to other countries, and whether the location and equipment is owned or leased by the vendor? It is often the case that that the vendor doesn’t actually host your data, despite what you may believe, and instead uses a third-party data center. You don’t want to find that your data was actually hosted overseas by disreputable providers where laws regarding privacy may vary and U.S. export controls may be triggered!
 
  – Prevention – What data-security systems are in place? The vendor should have security policies that are industry standard and recognize certain regulations. You should also consider the vendor’s disaster recovery plans and breach notification procedures. You don’t want to find yourself in the headlines due to a data breach, without your operating system for an extended period of time, or liable for a breach of your customer contracts. The vendor should allow for audits and penetration testing of facilities and systems to confirm it’s representations.
 
  – Protection – Will the vendor or other customers access or use your data? Who will see your data? Will your sensitive data be encrypted? Should it be? Will your data be treated as confidential information? Does the vendor sell your data, in the aggregate or otherwise? Will the vendor claim ownership in your data? Will you receive the data following termination of your contract? How fast? Who pays for the transition services to move the data to another vendor? These are all questions you need to ask. You don’t want to learn that the vendor or your competitors were using your data against your interest – and now claim that they own rights to it.
 
  – Uptime Guarantees – Does the vendor guarantee that you will have access to your critical software solution without interruption? The vendor should have clear service-level agreements with uptime commitments, response and resolution times, and remedies in the form of termination rights and credits or refunds.
 
Once you have found a vendor with whom you are comfortable, it is important to carefully read and negotiate the contract for your license or subscription service. Most reputable vendors will entertain your requested changes and additions to contract language, and many will make those changes prior to signing. You may want to consider other vendors if they are unwilling to negotiate with you or provide credible answers that meet your needs. The terms you accept should both address and be consistent with your complete understanding of the Key Questions above, otherwise you could put your company at risk for service interruption, loss of data, and the resulting increase in cost and loss of business.
 
Additionally, make sure that the commercial terms (price, number of user seats, data volume) align with your expectations, that the functionality (connectivity, visibility, data analysis, reporting, internal and external interfaces) is completely spelled out and adequately meets your needs, and that there are no extra-contractual (such as online) terms and conditions incorporate by reference. The most important issues that arise in contract negotiations with cloud service vendors involve indemnification, limitations of liability, and warranties. Consult with an attorney familiar with your business and cloud solutions if you are ever in doubt of whether you are protected in your cloud provider relationships.

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(Source:
Volkov Law Group Blog. Reprinted by permission.)
 
* Author: Michael Volkov, Esq., Volkov Law Group, mvolkov@volkovlaw.com, 240-505-1992.
 
We all know the scenario. A corporate scandal breaks, heads will roll and criminal investigators have invaded a company to investigate and prosecute the CEO, senior executives and others. It is a toxic environment when this occurs, and not something you ever want to experience, especially as a legal and/or compliance professional.
 
People can become dangerous when they feel threatened. Corporate leaders, with egos and financial stakes to match, are dangerous when they are implicated or caught in corporate misconduct. Senior executives may circle the wagons to protect themselves and look for common scapegoats. In some cases, the senior executives may be unable to circle any wagon and agree on any common defense, and look for scapegoats among themselves, as well as legal and compliance professionals.
 
It does not take much for a corporate executive to turn on another person to justify their conduct and explain away potential liability. In some cases, part fo the story may very well be true. In other cases, the story is completely false and is nothing other than self-justification for otherwise blatant misconduct.
 
Legal and compliance professionals are at great risk in these scenarios. Why?
 
Legal and compliance professionals usually have access or involvement relating to legal compliance issues surrounding a specific set of events or course of conduct. If the government initiates an investigation into that conduct, lawyers and compliance officers are usually involved in some manner. As a result, senior executives often will seek to divert attention to the lawyers and compliance professionals, even suggesting that they (lawyers and compliance professionals) blessed the conduct. Of course, attorney-client privilege issues may come up in this regard, but CEOs and senior executives more often than not will look to lawyers and compliance officers to back them up.
 
Lawyers and CEOs have to be extremely careful when this situation arises. It does not take much for a CEO or a senior executive to tell the government that he or she engaged in the conduct or failed to act because of advice or direction from the lawyers or compliance professionals.
 
There is a response to this strategy, and it usually requires the lawyers and/or compliance professionals to produce contemporaneous documentation to confirm their version of events. It is one of many reasons that we advocate that companies, and especially lawyers and compliance professionals, document their actions. Such documentation makes it extremely difficult, if not impossible, for the CEO and senior executives to argue a contrary inference or series of events. I am aware of numerous occasions where such documentation was the difference between further investigation and exoneration.
 
A corporate criminal investigation is a high-stakes drama and should always be in the back of a professionals’ mind. Taking basic steps to document your work, confirm a piece of advice and that a direction was carried out, can save you from headaches, legal bills and hours of questioning by federal prosecutors and agents.
 
Also, it is important to remember that today’s CEO or senior executive champion of a lawyer or compliance professional can quickly turn into an enemy when faced with a criminal investigation. There is no honor among thieves, and there is no reason to ignore potential risks from a corporate investigation that may occur.
 
Lawyers and compliance professionals, as gatekeepers, bear heavy burdens and can quickly become collateral damage or even full-on scapegoats for a corporate scandal.

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* Author: Gary Stanley, Esq., Global Legal Services, PC, (202) 352-3059,
gstanley@glstrade.com
 
Difference between “Significant Military Equipment” and “Major Defense Equipment”: ITAR § 120.7 defines the term “significant military equipment” as meaning articles for which special export controls are warranted because of their capacity for substantial military utility or capability. SME includes items in the U.S. Munitions List which are preceded by an asterix (“*”) and all classified articles enumerated in the U.S. Munitions List. ITAR § 123.10 provides that a nontransfer and use certificate (Form DSP-83) is required for the export of significant military equipment and classified articles, including classified technical data.
 
ITAR § 120.8 defines the term “major Defense equipment” as meaning any item of significant military equipment (as defined in ITAR § 120.7) having a nonrecurring research and development cost of more than $50 million or total production cost of more than $200 million. ITAR § 123.15 imposes certain congressional certification requirements for exports of major defense equipment.

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MSEX/IM MOVERS & SHAKERS

MS_a112. Kevin DiBartolo Moves to Northrop Grumman
(Source: Editor)
 
Kevin DeBartolo has moved from Latham & Watkins, LLP, to be Corporate Counsel, Export/Import, at Northrop Grumman Corporation, in the Falls Church, VA, headquarters office. Contact Kevin at 703-280-2332 or Kevin.DiBartolo@ngc.com.
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ENEDITOR’S NOTES

(Source: Editor)

* 
Irving Berlin (
born Israel Isidore Baline, 11 May 1888 – 22 Sep 1989, was an American 
composer and lyricist, widely considered one of the greatest songwriters in American history. He wrote hundreds of songs, many becoming major hits, which made him “a legend” before he turned thirty. During his 60-year career he wrote an estimated 1,500 songs, including the scores for 19 Broadway shows and 18 Hollywood films, with his songs nominated eight times for Academy Awards. Many songs became popular themes and anthems, including Easter Parade“, “White Christmas“, “Happy Holiday“, “This Is the Army, Mr. Jones”, and There’s No Business Like Show Business“. His Broadway musical and 1942 film, This is the Army, with Ronald Reagan, had Kate Smith singing Berlin’s God Bless America which was first performed in 1938.)
  – “The toughest thing about success is that you’ve got to keep on being a success.”
  – “Life is 10 percent what you make it, and 90 percent how you take it.”
 

* 
Isaac D’Israeli (
11 May 1766 – 19 Jan 1848, was a 
British writer, scholar and man of letters. He is best known for his essays, his associations with other men of letters, and as the father of British Prime Minister Benjamin Disraeli.)
  – “The wisdom of the wise, and the experience of ages, may be preserved by quotation.”

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EN_a214
. 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.  

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EN_a315
. Weekly Highlights of the Daily Bugle Top Stories
(Source: Editor)

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

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EPEDITORIAL POLICY

* The Ex/Im Daily Update is a publication of FCC Advisory B.V., edited by James E. Bartlett III and Alexander Bosch, and emailed every business day to approximately 8,000 subscribers to inform 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.

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