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17-0707 Friday “Daily Bugle”

17-0707 Friday “Daily Bugle”

Friday, 7 July 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.

  1. Commerce/BIS Amends EAR, Revises Parts 742, 744, 772, and 774 to Reflect Changes to the MTCR Annex
  2. DHS/CBP Issues Final Determination Concerning Country of Origin of Carestream DRX-Ascend Digital Radiography System
  1. Ex/Im Items Scheduled for Publication in Future Federal Register Editions 
  2. Commerce/BIS: (No new postings.) 
  3. DHS/CBP Announces ACE PRODUCTION Outage, 8-9 July
  4. State/DDTC: (No new postings.)
  5. UK/DIT ECO Amends Export Control Order 2008
  6. Singapore Customs Announces New Strategic Goods (Control) Order 2017
  1. Reuters: “U.S. Treasury Targets Chinese Bank Over Purported Ties to North Korea, New Sanctions Risk Emerges”
  2. ST&R Trade Report: “Dates and Deadlines: NAFTA, Customs Enforcement, AGOA, Chemical Imports”
  1. D.M. Edelman: “DOJ Releases Useful Corporate Compliance Resource”
  2. E. Jones & J. Round: “Dual-Use Goods and Export Control in the EU and the UK”
  3. R.C. Burns: “A Boycott Is a Boycott Is a Boycott”
  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 (30 Jun 2017), DOD/NISPOM (18 May 2016), EAR (30 Jun 2017), FACR/OFAC (16 Jun 2017), FTR (19 Apr 2017), HTSUS (28 Jun 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. 
Commerce/BIS Amends EAR, Revises Parts 742, 744, 772, and 774 to Reflect Changes to the MTCR Annex

(Source: Federal Register) [Excerpts.]
 
82 FR 31442-31449: Revisions to the Export Administration Regulations Based on the
 
2016 Missile Technology Control Regime Plenary Agreements
 
* AGENCY: Bureau of Industry and Security, Commerce.
* ACTION: Final rule.
* SUMMARY: The Bureau of Industry and Security (BIS) is amending the Export Administration Regulations (EAR) to reflect changes to the Missile Technology Control Regime (MTCR) Annex that were agreed to by MTCR member countries at the October 2016 Plenary in Busan, South Korea, and the March 2016 Technical Experts Meeting (TEM) in Luxembourg City, Luxembourg. This final rule revises thirteen Export Control Classification Numbers (ECCNs), adds one ECCN, revises two EAR defined terms (including making other EAR conforming changes for the use of these two terms) and makes conforming EAR changes where needed to implement the changes that were agreed to at the meetings and to better align the missile technology (MT) controls on the Commerce Control List (CCL) with the MTCR Annex.
* DATES: This rule is effective 7 July 2017. … 
* SUPPLEMENTARY INFORMATION: … The Missile Technology Control Regime (MTCR or Regime) is an export control arrangement among 35 nations, including most of the world’s suppliers of advanced missiles and missile-related equipment, materials, software and technology. The regime establishes a common list of controlled items (the Annex) and a common export control policy (the Guidelines) that member countries implement in accordance with their national export controls. The MTCR seeks to limit the risk of proliferation of weapons of mass destruction by controlling exports of goods and technologies that could make a contribution to delivery systems (other than manned aircraft) for such weapons.
 
 
Amendments to the Export Administration Regulations (EAR)
 
 
This final rule revises the Export Administration Regulations (EAR) to reflect changes to the MTCR Annex agreed to at the October 2016 Plenary in Busan, South Korea, and changes resulting from the March 2016 Technical Experts Meeting (TEM) in Luxembourg City, Luxembourg. References are provided below for the MTCR Annex changes agreed to at the meetings that correspond to the EAR revisions described below. This rule also makes changes to the Commerce Control List (CCL) (Supplement No. 1 to Part 774 of the EAR) and to other EAR provisions in order to conform with the MTCR Annex. All of the changes in this final rule align the MT controls on the CCL and other parts of the EAR with the MTCR Annex. In the discussion below, BIS identifies the origin of each change in the regulatory text of this final rule by using one the following parenthetical phrases: (Busan 2016 Plenary), (Luxembourg 2016 TEM), or (Conforming Change to MTCR Annex).
 
Sec. 742.5 (Missile technology)
. In Sec. 742.5 (Missile technology), this final rule revises the first sentence of paragraph (a)(2), which describes the definition of “missiles.” The term “missiles” is a defined term in Sec. 772.1, but for ease of reference the first sentence of this paragraph (a)(2) restates the definition. As described in the paragraphs below, this final rule revises the definitions of “missiles” and “unmanned aerial vehicles” in Sec. 772.1 of the EAR, so conforming changes are needed in Sec. Sec. 742.5 and 744.3, as described below.
 
Conforming Change to Sec. 742.5(a)(2)
. This final rule makes conforming changes in paragraph (a)(2) of Sec.
 
742.5, by replacing the term “ballistic missile systems” with the term “ballistic missiles” (MTCR Annex Change, Category I: Item 1.A.1., Luxembourg 2016 TEM), and by replacing the term “cruise missile systems” with the term “cruise missiles.” (MTCR Annex Change, Category I: Item 1.A.2., Luxembourg 2016 TEM). This final rule also makes a conforming change by replacing the term “unmanned air vehicles” with the term “unmanned aerial vehicles.” (Conforming Change to MTCR Annex). Substantively, there is no difference between the old and revised terms, but this final rule makes these conforming changes to ensure consistent use of the terminology throughout the EAR. These conforming changes are described in more detail in the next three paragraphs, describing the changes that this final rule makes to the EAR definitions of “missiles” and “unmanned aerial vehicles.”
 
Conforming Change to Sec. 744.3 (Restrictions on certain rocket systems (including ballistic missile systems and space launch vehicles and sounding rockets) and unmanned air vehicles (including cruise missile systems, target drones and reconnaissance drones) end-uses)
.
 
This final rule makes conforming changes in Sec. 744.3 by changing the term “ballistic missile systems” to “ballistic missiles” (MTCR Annex Change, Category I: Item 1.A.1., Luxembourg 2016 TEM), and changing the term “cruise missile systems” to “cruise missiles.” (MTCR Annex Change, Category I: Item 1.A.2., Luxembourg 2016 TEM). These conforming changes are described in more detail in the next two paragraphs describing the changes that this final rule makes to the EAR definitions of “missiles” and “unmanned aerial vehicles.” In addition, this final rule makes conforming changes in Sec. 744.3 by replacing the term “unmanned air vehicles” with “unmanned aerial vehicles” wherever this term appears in this section. (Conforming Change to MTCR Annex). Substantively, there is no difference between the old and revised terms, but this final rule makes these conforming changes to ensure consistent use of the terminology throughout the EAR. Lastly, this final rule removes the first reference to “and” in the section heading for the parenthetical phrase providing an illustrative list of examples of rocket systems. This `”and” is removed because it is not needed to convey the meaning of the list of examples of rocket systems. These conforming changes are clarifications and will not change any scope of control. These changes are not expected to have any impact on the number of license applications received by BIS.
 
Changes and Conforming Amendments in Sec. 772.1 (Definitions of Terms as Used in the Export Administration Regulations (EAR))
. In Sec. 772.1, this final rule amends the definition of the term “missiles.” (MTCR Annex Change, Category I: Item 1.A.1., Luxembourg 2016 TEM). Under the definition of “missiles,” this final rule revises the term “ballistic missile systems” by removing the word “systems” and adding an “s” to “missile.” This final rule revises the definition of “missiles” to reflect changes in the description of complete rocket systems in the MTCR Annex. The final rule revises the term “ballistic missile systems” by removing the word “systems,” thus referring only to the flight vehicle. This final rule makes this change to conform to the other items in the illustrative list of “missiles,” and to clarify that a missile is covered under these entries that use this control text, regardless of whether it is part of a larger system (e.g., a system including the flight vehicle and ground support equipment such as launch, recovery, and flight control equipment). This final rule also makes conforming changes to the same terms used in ECCNs 2B018 and 5A101, as described below. This final rule also makes a conforming change in the ECCNs for the use of the term “unmanned air vehicles,” which this final rule replaces with “unmanned aerial vehicles.” (Conforming Change to MTCR Annex). Substantively, there is no difference between the two formulations of the term, but this final rule makes these conforming changes to ensure consistent use of the terminology throughout the EAR. Lastly, this final rule removes the last sentence of the definition and adds it as a note to the definition. This clarifying change is made because the sentence is more appropriately included as a note to the definition. These changes correspond with the U.S. interpretation of the controls, and will not change any scope of control. These changes are not expected to have any impact on the number of license applications received by BIS.
 
In addition, in Sec.
 
772.1, this final rule amends the definition of the revised term, “unmanned aerial vehicle.” (MTCR Annex Change, Category I: Item 1.A.2., Luxembourg 2016 TEM). Under the definition of “unmanned aerial vehicle,” this final rule revises the term “cruise missile systems” by removing the word “systems” and adding an “s” to “missile.” The definition of “unmanned aerial vehicles” has been updated to reflect changes in the description of unmanned aerial vehicles in the MTCR Annex. The term “Cruise missile systems” has been changed by removing the word “systems,” thus referring only to the flight vehicle. This change both conforms to the other items in the illustrative list of unmanned aerial vehicles, and clarifies that an unmanned aerial vehicle is covered under these entries that use this control text, regardless of whether or not it is part of a larger system (e.g., a system including the flight vehicle and ground support equipment such as launch, recovery, and flight control equipment). This final rule also makes conforming changes to similar text used in ECCNs 2B018 and 5A101 described below. These changes correspond with the U.S. interpretation of the controls, and will not change any scope of control. These changes are not expected to have any impact on the number of license applications received by BIS.
 
 
Amendments to the Commerce Control List (CCL)
 
 
In addition, this final rule amends the CCL to reflect changes to the MTCR Annex by amending thirteen ECCNs and adding new ECCN 9B104, as follows:
 
ECCN 1C107
. This final rule amends ECCN 1C107 by revising the introductory text of paragraph d. and adding a paragraph d.3 in the List of Items Controlled section. This final rule also adds a Note and a Technical Note to ECCN 1C107.d.3 to clarify the scope of paragraph d.3. (MTCR Annex Change, Category II: Item 6.C.6., Busan 2016 Plenary). Specifically, in the introductory text of ECCN 1C107.d, this final rule removes the phrase “silicon carbide materials” and adds in its place the phrase “high-temperature materials.” This change is made because of the addition of certain bulk machinable ceramic composite materials that this final rule adds to ECCN 1C107 under new “items” paragraph d.3. Ultra High Temperature Ceramic Composites (UHTCC) are materials that combine Ultra High Temperature Ceramics (UHTC) with fiber reinforcement. The UHTCs can be used in environments that exhibit extremes in temperature, chemical reactivity, and erosive attack. The combination of the UHTC and fiber reinforcement can mitigate some of the traditional drawbacks associated with ceramics, including a tendency to fracture. Typical end uses for these composites are leading edges for hypersonic vehicles, nose tips for re-entry vehicles, rocket motor throat inserts, jet vanes, and control surfaces, which this final rule adds as examples in the new control text. This final rule also adds a note to 1C107.d.3 to make clear that the UHTC materials that do not have fiber reinforcement are not caught under this control. Additionally, this final rule adds a technical note to 1C107.d to provide examples of UHTCs which are included. This change is expected to result in an increase of 1-3 applications received annually by BIS. This very small increase is because this material is not widely used or exported, but specific to the end uses described in the control text.
 
ECCN 1C111
. This final rule amends ECCN 1C111 by revising paragraphs b.2 in the List of Items Controlled section to add a CAS (Chemical Abstract Service) Number. CAS Numbers are numerical identifiers assigned by the Chemical Abstracts Service (CAS) to every chemical substance described in open scientific literature, including organic and inorganic compounds, minerals, isotopes and alloys. The inclusion of CAS Numbers will make it easier to identify the materials controlled under this “items” paragraph of 1C111. This final rule revises paragraph b.2 to add the CAS Number (CAS 69102-90-5) after the material “Hydroxy-terminated polybutadiene (including hydroxyl-terminated polybutadiene) (HTPB).” (MTCR Annex Change, Category II: Item 4.C.5.b., Busan 2016 Plenary). This change is not expected to have any impact on the number of license applications received by BIS.
 
ECCN 2B018
. This final rule amends ECCN 2B018 by revising the “MT” paragraph in the table in the License Requirements section by revising the term “ballistic missile systems” to remove the term “systems” and add an “s” to the term “missile.” (MTCR Annex Change, Category I: Item 1.A.1., Luxembourg 2016 TEM). In addition, in the same “MT” paragraph, this final rule revises the term “cruise missile systems” to remove the term “systems” and add an “s” to the term “missile.” (MTCR Annex Change, Category I: Item 1.A.2., Luxembourg 2016 TEM). Lastly, this final rule makes conforming changes in the same “MT” paragraph by replacing the term “unmanned air vehicles” with “unmanned aerial vehicles” wherever this term appears in this section. (Conforming Change to MTCR Annex). Substantively, there is no difference between the old and revised terms, but this final rule makes these conforming changes to ensure consistent use of the terminology throughout the EAR. These are conforming changes for the changes described above to the definitions of “missiles” and “unmanned aerial vehicles.” This is a clarification and will not change any scope of control. This change is not expected to have any impact on the number of license applications received by BIS.
 
ECCN 2B109
. This final rule amends ECCN 2B109 by revising the list of examples included in the second technical note. This final rule expands the list of examples to include interstages, because interstages can also be manufactured using the flow forming machines described in ECCN 2B109. (MTCR Annex Change, Category II: Item 3.B.3., Busan 2016 Plenary). This change is not expected to have any impact on the number of license applications received by BIS, because this is only a change to the list of examples of products that can be made by this type of machine, and it does not change the scope of control.
 
ECCN 5A101
. This final rule amends the heading of ECCN 5A101 by revising the term “ballistic missile systems” to remove the word “systems” and add an “s” to “missile.” (MTCR Annex Change, Category I: Item 1.A.1., Luxembourg 2016 TEM). The final rule revises the heading by revising the term “cruise missile systems” to remove the word “systems” and add an “s” after “missile.” (MTCR Annex Change, Category I: Item 1.A.2., Luxembourg 2016 TEM). These are conforming changes for the changes described above to the definitions of “missiles” and “unmanned aerial vehicles.” In addition, this final rule revises the heading of ECCN 5A101 to create a separate parenthetical phrase for the illustrative list of examples that are unmanned aerial vehicles. This final rule does this by removing the examples of “cruise missiles, target drones, and reconnaissance drones” from the list of examples that followed the terms “unmanned aerial vehicle or rocket systems” in the heading and adding those examples immediately after the term unmanned aerial vehicle. This final rule retains the rest of the examples from the parenthetical that follows the term “rocket systems,” which will make it clearer that this parenthetical list is an illustrative list of “rocket systems.” (Conforming Change to MTCR Annex). These are clarifications and will not change any scope of control. These changes are not expected to have any impact on the number of license applications received by BIS.
 
ECCN 7A103
. This final rule amends ECCN 7A103 by adding a definition for “inertial measurement equipment and systems” for purposes of ECCN 7A103. In addition, this final rule revises “items” paragraph a and adds Note 3 in the List of Items Controlled section. (MTCR Annex Change, Category II: Item 9.A.6., Luxembourg 2016 TEM). This final rule makes these changes to remove the ambiguous term “other equipment.” Instead, the locally defined term “inertial measurement equipment or systems” that the final rule adds to ECCN 7A103, along with an illustrative list of such equipment and systems, clarifies which types of equipment containing the specified accelerometers or gyros are caught by this entry. This final rule also removes the phrase “and systems incorporating such equipment” because this phrase has been removed from the MTCR Annex. The changes this final rule makes to ECCN 7A103 to increase the clarity of the control should make the control more precise and rule out items not strictly used for navigation purposes. This change is expected to result in a decrease of 3 to 5 license applications received annually by BIS. Lastly, this final rule updates and amends ECCN 7A103 by removing Related Controls paragraph (2), which is no longer accurate after changes were made to the EAR to correspond with changes made to USML Category XII (especially for unmanned aerial vehicles (UAVs) ) that became effective December 31, 2016 (See October 12, 2016, (81 FR 70320) final rule). In addition, this paragraph (2) can be removed because the USML Order of Review and CCL Order of Review will provide sufficient guidance on where items that are subject to the ITAR are classified under the USML and where items that are subject to the EAR are classified in either the “600 series” or in other ECCNs in Category 7 of the CCL. Lastly, as a conforming change to the removal of paragraph (2), this final rule redesignates Related Controls paragraph (3) as new Related Controls paragraph (2).
   
ECCNs 9A101, 9E101, and 9E102
. This final rule amends ECCN 9E101 by revising the Related Controls paragraph in the List of Items Controlled section to make a conforming change for the use of the term “unmanned air vehicles,” which this final rule changes to “unmanned aerial vehicles.” In addition, this final rule amends ECCN 9E101 and 9E102 by revising the headings of these two ECCNs to make conforming changes for the use of the term “unmanned air vehicles,” which this final rule changes to “unmanned aerial vehicles.” Substantively, there is not a difference in the two formulations of the term, but for consistency with how the term is used in other parts of the EAR, this final rule makes these conforming changes. (Conforming Change to MTCR Annex). This is a clarification and will not change any scope of control. These changes are not expected to have any impact on the number of license applications received by BIS.
 
New ECCN 9B104 and Related Conforming Amendments to 9D101, 9E001, and 9E002
. This final rule adds new ECCN 9B104 to control certain aerothermodynamic test facilities. The facilities controlled under this new ECCN 9B104 are those that are usable for rockets, missiles, or unmanned aerial vehicles capable of achieving a “range” equal to or greater than 300 km and their subsystems, and having an electrical power supply equal to or greater than 5 MW or a gas supply total pressure equal to or greater than 3 MPa. This final rule adds this new ECCN 9B104 to complement the controls that already exist for aerodynamic test facilities in order to fully cover the types of ground test facilities necessary to reproduce the flight environments that occur during the reentry phase. Plasma arc jet and plasma wind tunnel facilities simulate the atmospheric reentry thermal effects due to high velocity around the vehicles and are key to the qualification of vehicle thermal protection subsystems. This final rule includes values for electrical power supply and gas supply total pressure in new ECCN 9B104 to exclude commercial systems of a similar nature from this new ECCN.
 
In addition, this final rule adds a Related Definition as part of new ECCN 9B104 to define the term “aerothermodynamic test facilities”. This definition specifies that these facilities include plasma arc jet facilities and plasma wind tunnels for the study of thermal and mechanical effects of airflow on objects. (MTCR Annex Change, Category II: Item 15.B.6., Luxembourg 2016 TEM). As a conforming change to the addition of ECCN 9B104, this final rule adds 9B104 to the heading of ECCN 9D101 and revises the “MT” paragraph in the table in the License Requirements section of ECCNs 9E001 and 9E002 to add 9B104. The headings of ECCNs 9E001 and 9E002 do not need to be revised to add technology for 9B104, because those two technology ECCNs apply to 9B ECCNs, except for those specifically excluded in the ECCN headings. These changes are expected to result in an increase of no more than 1 application received annually by BIS, because such systems and their software and technology are exported infrequently.
 
ECCN 9D104
. This final rule amends ECCN 9D104 by adding a note to the List of Items Controlled section. This note clarifies that ECCN 9D104 also includes specific software for the conversion of manned aircraft to an unmanned aerial vehicle. (MTCR Annex Change, Category II: Item 1.D.2., Luxembourg 2016 TEM). This change is expected to result in an increase of 1 to 2 applications received annually by BIS, because, although this software was already controlled here, the note will clarify the scope of ECCN 9D104.
 
Savings Clause
 
 
Shipments of items removed from eligibility for a License Exception or export or reexport without a license (NLR) as a result of this regulatory action that were on dock for loading, on lighter, laden aboard an exporting or reexporting carrier, or enroute aboard a carrier to a port of export or reexport, on 7 July 2017, pursuant to actual orders for export or reexport to a foreign destination, may proceed to that destination under the previous eligibility for a License Exception or export or reexport without a license (NLR) so long as they are exported or reexported before 7 August 2017. Any such items not actually exported or reexported before midnight, on 7 August 2017, require a license in accordance with this rule. …
 
 
 
Dated: July 3, 2017.
Matthew S. Borman, Deputy Assistant Secretary for Export Administration.

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EXIM_a2

2. 
DHS/CBP Issues Final Determination Concerning Country of Origin of Carestream DRX-Ascend Digital Radiography System

(Source: Federal Register) [Excerpts.]
 
82 FR 31615-31618: Notice of Issuance of Final Determination Concerning a Digital Radiography System
* AGENCY: U.S. Customs and Border Protection, Department of Homeland Security.
* ACTION: Notice of final determination. …
* DATES: The final determination was issued on 30 June 2017. A copy of the final determination is attached. Any party-at-interest, as defined in 19 CFR 177.22(d), may seek judicial review of this final determination within August 7 2017. … 
* SUPPLEMENTARY INFORMATION: Notice is hereby given that on 30 June 2017 pursuant to subpart B of Part 177, U.S. Customs and Border Protection Regulations (19 CFR part 177, subpart B), CBP issued a final determination concerning the country of origin of a digital radiography system known as the Carestream DRX-Ascend Digital Radiography system, which may be offered to the U.S. Government under an undesignated government procurement contract. This final determination, HQ H283088, was issued under procedures set forth at 19 CFR Part 177, subpart B, which implements Title III of the Trade Agreements Act of 1979, as amended (19 U.S.C. 2511-18). The major components of the DRX-Ascend Digital Radiography system include a Chinese-origin high-voltage generator, a U.S.-origin wireless DRX detector, a Chinese-origin elevating float-top table, a Chinese-origin tubestand, a Chinese-origin wall stand, and either a U.S. or a Japanese-origin x-ray tube. These components are combined with software that is largely developed in the United States. In the final determination, CBP concluded that the components are substantially transformed in the United States when the fully functioning digital radiography system is completely assembled and installed at an on-site location. Thus, the fully assembled digital radiography system becomes a product of the United States. Therefore, for purposes of U.S. Government procurement, the United States is the country of origin of the installed and assembled Carestream DRX-Ascend Digital Radiography system. …
 
  Dated: 30 June 2017.
Alice A. Kipel, Executive Director, Regulations and Rulings, Office of Trade. 
… 

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OGSOTHER GOVERNMENT SOURCES

OGS_a13
. Ex/Im Items Scheduled for Publication in Future Federal Register Editions
 

(Source:
Federal Register)
[No items of interest noted today.]

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OGS_a3
5.

DHS/CBP Announces

ACE PRODUCTION Outage, 8-9 July

(Source:
CSMS# 17-000394, 7 July 2017.)
 
There will be an ACE PRODUCTION Outage Saturday evening, 8 July 2017 from 2200 ET to 0400 ET Sunday, 9 July 22017 for ACE infrastructure maintenance activities.

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OGS_a57.

UK/DIT ECO Amends Export Control Order 2008

 
The Export Control Organisation (ECO) of the UK Department of International Trade (DIT) has amended Schedule 2 of the Export Control Order 2008.
 
The new order, The Export Control (Amendment) (No.3) Order 2017 (S.I. 2017 No.697), comes into force on 13 July 2017.
 
The amending Order makes a small number of changes to Schedule 2 to the main Order, which lists the military goods, software and technology subject to export controls.
 
These changes mainly reflect amendments made to the EU Common Military List following agreement to amend controls in the export control regime known as the Wassenaar Arrangement. The changes need to be incorporated into UK control lists to reflect the UK commitment to the international non-proliferation regime.
 
  Key Amendments
 
Amendments include:

  – several changes to the definitions (see the entries for airship, laser, lighter-than-air vehicles, pyrotechnics and software).
changes relating to ML1, ML8 and ML10
  – A separate notice will be issued to give details of any associated changes required to open general export licences.
 
  Action for Exporters
 
Exporters should familiarise themselves with the changes to the scope of the controls following these amendments to the order and schedule.

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Singapore Customs has published Circular No. 08/2017 concerning the new Strategic Goods Control Order (SGCO) 2017, gazetted on 3 July 2017. The main updates of the circular are included below.
 
CHANGES TO THE STRATEGIC GOODS CONTROL LIST
 
  Updates to the Strategic Goods Control List

Further to our Notice No 08/2017, dated 29 June 2017, we wish to inform you that the new Strategic Goods (Control) Order 2017 (“SGCO 2017”) has been gazetted on 3 July 2017, and will come into effect from 1 September 2017. You may access the SGCO 2017 via our website.

  – The SGCO 2017 brings Singapore’s strategic goods control list up to date with the 2016 Wassenaar Arrangement Munitions List, and the 2016 European Union’s List of Dual-Use Items (“EUDL”). The EUDL contains dual-use items controlled by the four multilateral export control regimes (the Australia Group, the Missile Technology Control Regime, the Nuclear Suppliers Group and the Wassenaar Arrangement).

  – The SGCO 2017 will incorporate revisions such as new controls, relaxation of controls, as well as editorial changes for consistency and clarity of controls. The highlights of key changes to the strategic goods control list can be found via our website.

  – Singapore Customs will be holding an awareness briefing on the changes to the strategic goods control list on 12 July 2017. Traders and declaring agents, including exporters, carriers, cargo agents and freight forwarders, as well as academicians and researchers, are encouraged to attend the briefing to familiarise themselves with the updates to ensure continuity in business compliance. You may refer to Notice No 08/2017 for the registration details. For those who are unable to attend the briefing, materials on the changes to the strategic goods control list will be available on the Customs eLearning portal after the briefing.
 
  Changes to the Strategic Goods (Control) Regulations (“SGCR”)
 
  – The scope of strategic goods subject to transhipment controls will be expanded to include 2 new category codes (i.e. 1C351.a.57 and 1C351.a.58). This change will be reflected in the 4th Schedule of the Strategic Goods (Control) Regulations (“SGCR”). Any person, who intends to tranship goods listed in the 4th Schedule of the SGCR must submit the strategic goods transhipment permit at least 5 working days before the loading of goods onto the conveyance on which the goods
are to be brought out of Singapore. There is no change to the transit goods listed in the 5th schedule of the SGCR.

  – The Strategic Goods (Control) (Amendment) Regulations 2017 will come into effect from 1 September 2017.
 
  Technical Amendment to the Strategic Goods (Control) Brokering Order 2007
 
  – A technical amendment will be made to the Strategic Goods (Control) Brokering Order 2007 to reflect its reference to the new SGCO 2017. There are no changes to the scope of brokering controls.

  – The Strategic Goods (Control) (Brokering) (Amendment) Order 2017 will come into effect from 1 September 2017. 

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NWSNEWS

NWS_1
9.

Reuters: “U.S. Treasury Targets Chinese Bank Over Purported Ties to North Korea, New Sanctions Risk Emerges”

(Source:
Reuters, 6 July 2017.) [Excerpts.]
 
The U.S. Treasury Department last week moved to sever a Chinese bank from the global financial system over concerns it was a conduit for illicit North Korean financial activity. The move signaled the United States is no longer willing to tolerate the actions of Chinese entities that support Pyongyang and plans to mete out punishment in the form of financial sanctions to alter behavior, experts said.
 
  “I think this is significant, not because of the effects of this singular action, but because it is, I think, the opening salvo of a broader campaign to pressure North Korea through the Chinese financial system. It begins to lay the groundwork for an isolation of Chinese actors that are facilitating illicit North Korean activity,” former senior Treasury and White House official Juan Zarate told Thomson Reuters Regulatory Intelligence.
 
Treasury’s Financial Crimes Enforcement Network (FinCEN) employed a seldom-used USA Patriot Act Section 311 authority to label the Bank of Dandong an institution of “primary money laundering concern,” thereby effectively excising it from the global financial system.
 
While Treasury’s action is technically a proposed rule rather than a final, binding rule, in practice it is a signal to banks around the world that they should immediately sever ties to Bank of Dandong. Banks are likely to do so rather than risk the loss of access to the U.S. financial system.
 
  “The Department of the Treasury is committed to protecting the U.S. financial system from North Korean abuse and maximizing pressure on the Government of North Korea until it abandons its nuclear and ballistic missile programs,” Treasury Secretary Steven T. Mnuchin said in a written statement(here). “While we will continue to seek international cooperation on North Korea, the United States is sending an emphatic message across the globe that we will not hesitate to take action against persons, companies, and financial institutions who enable this regime.”
 
U.S. officials were continuing to look at other companies that may be helping North Korea and may roll out additional sanctions, Mnuchin told a press conference.
 
Treasury’s Office of Foreign Assets Control (OFAC) on Thursday also blacklisted two Chinese nationals and one Chinese company over their ties to Pyongyang. The blacklisted entity is Dalian Global Unity Shipping Co Ltd and the individuals are Sun Wei and Li Hong Ri, both of who reportedly are linked to North Korean banks that aid the regime’s illicit activity. …
 
Although the targeted Chinese bank is small, the FinCEN 311 designation “is a big deal,” said a former banker who led sanctions compliance at one of the largest institutions in the United States.
 
  “The banks will have to ensure that the banks they have correspondent relations with are not acting on behalf of the Chinese bank. It will be carefully implemented and watched closely by regulators,” said the source.
 
Treasury’s action was only the latest taken by the U.S. government against a Chinese entity suspected of aiding North Korea. Earlier this month, the U.S. Justice Department filed a civil complaint seeking the forfeiture of more than $1.9 million held by Mingzheng International Trading Limited, a China-based company that prosecutors said was a front used to launder money for sanctioned North Korean entities.

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

NWS_a2
10.

ST&R Trade Report: “Dates and Deadlines: NAFTA, Customs Enforcement, AGOA, Chemical Imports”

 
Following are highlights of regulatory effective dates and deadlines and federal agency meetings coming up in the next week.
 
  – 10 July: deadline for comments to EPA on proposed advance notice requirement for imports of one chemical substance
  – 11 July: deadline for comments to FTZ Board on requests to expand subzones, production activity
  – 13 July: USTR hearing on AGOA eligibility for Rwanda, Tanzania, and Uganda
  – 14 July: deadline for nominations for membership on CBP User Fee Advisory Committee

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

COMMCOMMENTARY

COMM_a211. 
D.M. Edelman: “DOJ Releases Useful Corporate Compliance Resource”

      
* Author: Doreen M. Edelman, Esq., Baker Donelson LLP, 202-508-3460, dedelman@bakerdonelson.com.
 
The Criminal Division’s Fraud Section of the Department of Justice (“DOJ”) published  an “Evaluation of Corporate Compliance Programs” (the “Compliance Manual”) which offers guidance on the common questions contemplated by the agency when making  determinations of corporate liability. My primary take away is that the Compliance Manual puts management on notice that the company will now be held to a higher standard regarding the details of its compliance program.
 
The Compliance Manual is based on both international and domestic sources, including the U.S. Attorney’s Manual, the U.S. Sentencing Guidelines, the Organization for Economic Co-operation and Development Council’s (“OECD”) best practices handbooks for compliance and anti-corruption, and the SEC’s Foreign Corrupt Practices Act Guide. It is divided into eleven sections, further broken down into various sample topics and questions the DOJ may consider when evaluating a corporate compliance program.
 
Comments here won’t replace your review of the document, but we did notice a few common themes.  They are: the significance of effective leadership; robust employee training; thorough risk assessment; flexibility and continuous improvement of compliance programs; and maintenance of efficient, comprehensive reporting mechanisms as means of remediation.
 
For example, leaders must take “specific action” to “demonstrate their commitment” to compliance and remediation.  Leaders must also document what type of compliance expertise has been available to the board of directors, how information is communicated with employees, and what type of oversight senior management has over operations.  Regarding training, the government will inquire as to the form, content, effectiveness of training, and the availability of resources for compliance-related questions.  Questions regarding risk assessment include what metrics were used to evaluate potential risk, and how often a company updates its risk assessment mechanisms and compliance policies, along with how often internal audits of high-risk areas are conducted. The government will even inquire whether enough funding and resources have been allocated to compliance and risk assessment and whether compliance officers have direct reporting lines to the board of directors.  Bottom line: review your compliance programs and make sure you’ve got adequate documentation based on these new recommendations. It’s possible that your compliance program may need additional time and attention.

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

COMM_JEB12.

E. Jones & J. Round: “Dual-Use Goods and Export Control in the EU and the UK”

 
* Authors: Emily Jones, Esq., emily.jones@osborneclarke.com; and John Round, Esq., jon.round@osborneclarke.com. Both of Osborne Clarke, U.S. and UK, respectively. 
 
  New Monetary Penalties for Breaches of Financial Sanctions
 
The Office of Financial Sanctions Implementation (OFSI) was established on 1 April 2016. Exactly a year later, Part 8 of the Policing and Crime Act 2017 came into force, which creates powers for HM Treasury to impose monetary penalties for breaches of financial sanctions. OFSI will apply these powers.
 
Previously, breaches of sanctions could only be punished by criminal proceedings, which were subject to the requisite criminal standard of proof. However, OFSI now has the power to impose financial sanctions, for which it only needs to satisfy the lower civil standard of proof. OFSI has published general guidance and monetary penalties guidance on how it will use these powers.
 
Companies should review their sanctions compliance policies and procedures to ensure they stand up to scrutiny in light of the new powers now available to the OFSI. For more information see here.
 
  Modernisation of European Dual-Use Export Control Regime
 
The European Commission has for several years been involved in an extensive consultation about the European dual-use export control system. On 28 September 2016, the Commission published a proposal to amend the legislation underpinning the current European dual-use export control regime, the EU Dual-Use Regulation. The proposed changes aim to harmonize, simplify and introduce a new ‘human security’ dimension to the existing European dual-use export control regime. You can find our overview of the changes here.
 
The proposals are currently being decided upon by the European Council and the European Parliament. The European Council’s Working Party on Dual-Use Goods is meeting on a monthly basis to discuss the changes – you can follow progress on those discussions here. The European Parliament has confirmed that it is also preparing a position on the proposal.
 
  Brexit: Export Controls on Dual-Use Items
 
The UK has developed a robust dual-use export control regime, which is independent but inextricably tied to the EU’s export control framework. The UK is also, independent of its membership of the EU, a member of a number of international conventions on human rights or non-proliferation (for example, the Wassenaar Arrangement). For these reasons, in the short term, Brexit is unlikely to raise any barriers to the flow of dual-use goods between the UK and other EU Member States and the types of controlled items and technology are expected to remain broadly similar.
 
In the medium/longer term, while any major departures from existing dual-use practices remain highly unlikely, at least for as long as the UK’s strategic foreign policy and defensive interests remain broadly similar to those of EU Members States, some level of divergence could creep in over time. For example, if the amendments to the EU Dual Use Regulation summarised above are not implemented before the UK formally leaves the EU, they will not apply automatically to the UK. These distinctions could be perpetuated by the UK’s shifting foreign policy interests, such as its desire to use the UK defence industry to strengthen the UK economy in light of Brexit and its developing relationship with the US administration.
 
Directors, officers and employees of businesses involved in exporting dual-use items from the UK can incur extensive levels of personal liability under the UK dual-use export control regime. For example, under the Customs and Excise Management Act 1979 (CEMA), exporting dual-use goods with “intent to evade” a restriction or prohibition is chargeable with a fine or a criminal sentence of up to ten years. Related, albeit less serious offences may be brought against individuals in their personal capacity on a “strict liability” basis, meaning that a person could incur civil liability even if they were unaware of the relevant export control.
 
CEMA does not distinguish between individuals on grounds of role or seniority within a business. As a result, any individual operating for, or on behalf of, a business can be held personally liable, provided that they are “concerned” in the export (or attempted export) of items in breach of relevant restrictions. This has potentially wide-reaching implications for employees at all levels of a business, although in practice the UK authorities focus their attention on senior management.
 
Despite these wide-ranging enforcement tools, the number of published personal prosecutions for export breaches in the UK remains relatively low, particularly when compared to equivalent figures in the US. However, individuals still remain key targets of aggressive and robust enforcement from the UK authorities: the Export Control Organisation; HMRC; the UK Border Force; and the Criminal Prosecution Service. The ECO has been keen to stress that there have been three high-profile prosecutions for UK export control offences in as many years. For example, in 2014 the Managing Director of Delta Pacific Manufacturing Limited was jailed for two and a half years, and fined £68,000, for exporting specialised alloy valves to Iran in breach of UK dual-use export control laws – the alloy valves were routed through Hong Kong and Azerbaijan in order to conceal their final destination and avoid UK export controls, in breach of section 68 (2) CEMA.
 
  Managing Regulatory Risk to Individuals
 
The very nature of ‘strict liability’ offences means that such prosecutions will not be defended except in very limited circumstances. ‘Intent to evade’ cases, by contrast, remain highly fact-specific and typically turn on the subjective question of what the defendant, in fact, knew. Nevertheless, businesses can minimise the risks of breaching the dual-use export control regime, and the related personal liability of those acting on its behalf, through robust and effective internal export control compliance policies and procedures. The ECO would expect these policies to include:
 
  – a firm commitment to export control compliance from a senior stakeholder;
  – clear export control compliance procedures (such as checklists to ensure that the correct licences are obtained); and
  – a mechanism for delivering comprehensive training and guidance to relevant staff. For example, businesses should develop awareness among employees about identifying suspicious orders/end-use considerations at an early stage in the sales process.
 
Effective export control breach management procedures, including the early adoption of the right tactical strategy following a breach, are also crucial for minimising personal liability. This is particularly true in light of the increasing use by HMRC of compound penalties: a fine by which HMRC can offer businesses or individuals the chance to settle cases that would otherwise justify being referred to the CPS (generally in a bid to avoid an expensive and protracted [tax-payer funded] criminal investigation).
 
  Dates for the Diary
 
  – June 2017:
 The UK House of Lords EU External Affairs Sub-Committee is undertaking an inquiry into UK sanctions policy after Brexit. The inquiry heard evidence during June.
 
  – 23 June 2017:
 The Foreign & Commonwealth Office has published a white paper consulting on the legal powers it will need to be able to continue imposing and implementing sanctions once the UK leaves the EU. Its focus is on the legal powers necessary to operate UK sanctions and not on the shape of UK sanctions policy in the future or other policy issues. The consultation closed on 23 June 2017.
  – July 2017: 
The UK Government will publish the UK Strategic Export Controls Annual Report 2016 in July 2017. This report will cover the UK’s export control policy and practice during the period January 2016 to December 2016.
 
  – Mid 2017:
 High Court expected to hand down its judgment following its judicial review into the legality of the UK Government’s continued approval of new licences for the sale of arms to Saudi Arabia (see our commentary on that review here). If the Government’s position is not supported, this could have major implications for the UK’s legal and regulatory export control framework, so we expect swift action from the Government in the event of an unfavorable decision.
 
  – Throughout 2017:
 EU looks set to continue expanding its sanctions on North Korea in relation to its apparent violations of UN resolutions and the threat it poses to international peace and security.

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

COMM_a313. 
R.C. Burns: “A Boycott Is a Boycott Is a Boycott”

(Source:
Export Law Blog
. Reprinted by permission.)
 
* Author: R. Clifton Burns, Esq., Bryan Cave LLP, Wash DC,
Clif.Burns@bryancave.com
, 202-508-6067).
 
As you probably know, various Arab countries, including Saudi Arabia, the U.A.E. and Egypt have imposed a boycott on Qatar, allegedly because of remarks that appeared on the Qatar News Agency’s website where Qatar emir Sheikh Tamim bin Hamad Al Thani called Iran an “Islamic power” and, even worse, said Qatar has “good” relations with Israel. Qatar claims that the Sheikh never said this and that the QNA website was hacked. U.S. intelligence officials have said that this was likely the work of Vladimir Putin and his band of merry hackers, who were hoping to create a rift among the United States and its Arab allies – something the hack may well have accomplished.
 
What you may not know is that the Port of Fujairah, in the United Arab Emirates, has just banned from the port all maritime traffic coming from or headed to Qatar. Now, how many of you immediately thought of the Bureau of Industry and Security’s Anti-Boycott rules when you (just) heard this? “Pshaw,” you say, “those rules only apply to the Arab League Boycott of Israel.” But in fact the Anti-Boycott Rules never even mention that boycott. By their terms, they apply to any “unsanctioned foreign boycott.” Even though the rules go into excruciating details on all matter of things,  the term “unsanctioned foreign boycott” on which the whole byzantine edifice is constructed, is, oddly, never defined.  Even so, you can be pretty sure that the boycott against U.S. ally Qatar is one of those “unsanctioned foreign boycotts.”
 
That being said, consider the following scenario. A customer in Fujairah, UAE, wants to buy from you $2 million worth of fidget spinners. The purchase order contains the following clause:
 
The shipping terms for the purchased goods are DDP Port of Fujairah (INCOTERMS 2010). The good may not be shipped on a Qatari-flagged vessel or on a vessel that visited, or is destined to visit, Qatar.
 
Can you accept the order?
 
The Anti-Boycott rules do provide some limited exceptions to permit compliance with shipping instructions of boycotting countries. Section 760.3(b)(1)(i) permits a U.S. person to comply with a prohibition of shipping the goods on a Qatari-flagged vessel. In addition, section 760.3(b)(2)(i) permits a U.S. person to agree not to ship the goods through Qatar. However, the exceptions only apply to requirements for “shipping goods to the boycotting country.” Any restrictions on where the ship calls after that shipment is complete and the goods are delivered to Fujairah would be a violation of the rules.
 
So there’s something else for you to worry about. You’re welcome.

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

TEEX/IM TRAINING EVENTS & CONFERENCES

TE_a214
. 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:

* 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 12-13: Melbourne, Australia; “Defence Export Controls Outreach Program;” Australia Defence Export Controls
# Jul 13: Webinar; “The Importance of a Risk and Compliance Assessment;” Michael Volkov, The Volkov Law Group

* Jul 17-19: Hilton Head Island SC; “
Basics of Government Contracting
;” Federal Publications Seminars
*
Jul 20: Webinar; ”
Destination Control Statements;” Shipman & Goodwin LLP
* Jul 26: Free Webinar; ”
Discover Value in Your Trade Compliance Data;” Integration Point

* Jul 26-27: Oklahoma City 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

*
Jul 27: Webinar; ”
Site Visits, Enforcement Actions, and Voluntary Disclosures;” Shipman & Goodwin LLP
*
Aug 1: Webinar; ”
Consideration for Exporting to China;” Shipman & Goodwin LLP
* Aug 2-3: Naperville, IN; “Automated Export System Compliance Seminar and Workshop;” Commerce/Census, Commerce/BIS, DHS/CBP, State/DDTC, Treasury

* Aug 14-16: McLean VA; “
Basics of Government Contracting
;” Federal Publications Seminars

*
Aug 17: Webinar; ”
Export Controls in the Cloud;” Shipman & Goodwin LLP

* Sep 4-9: Galveston TX;ICPA Conference at Sea;”

International Compliance Professionals Association; wizard@icpainc.org

* Sep 4: Glasgow, UK; ”
Intermediate Seminar;” UK Department for International Trade;
denise.carter@trade.gsi.gov.uk

* Sep 5: Glasgow, UK; ”
Beginners Workshop;” UK Department for International Trade;
denise.carter@trade.gsi.gov.uk 

* Sep 5: Glasgow, UK; ”
Licenses Workshop;” UK Department for International Trade;
denise.carter@trade.gsi.gov.uk 

* Sep 5: Glasgow, UK; ”
Control List Classification – Combined Dual Use and Military;” UK Department for International Trade;
denise.carter@trade.gsi.gov.uk 

* 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 21: 
Webinar; “
US Export Administration Regulations
;
” Foreign Trade Association 

* Sep 20-22: Houston TX; ”
Advanced Topics in Customs Compliance Conference;” Deleon Trade LLC
* Sep 27: Oxford, UK; ”
Intermediate Seminar;” UK Department for International Trade;
denise.carter@trade.gsi.gov.uk 

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

* Sep 28: Oxford, UK; ”
Beginners Workshop;” UK Department for International Trade;
denise.carter@trade.gsi.gov.uk 
* Sep 28: Oxford, UK; ”
Licenses Workshop;” UK Department for International Trade;
denise.carter@trade.gsi.gov.uk 

* Oct 2-5: Columbus OH; “University Export Controls Seminar;” ECTI; jessica@learnexportcompliance.com; 540-433-3977

* Oct 5-6: London, UK; ”
The World ECR Forum 2017;” World ECR

* Oct 10-12: Dallas TX; “
‘Partnering for Compliance™’ West Export/Import Control Training and Education Program
;” Partnering for Compliance
 
* Oct 12-13: Boston, MA; “Automated Export System Compliance Seminar and Workshop;” Commerce/Census, Commerce/BIS, DHS/CBP, State/DDTC, Treasury 

* Oct 13: Dallas TX; “
Customs/Import Boot Camp
;” Partnering for Compliance

*
 Oct 16-17: Washington, DC; “The World ECR Forum 2017;” World ECR

* Oct 16-19: Amsterdam, Netherlands “
US Export Controls for EU/NL and other Non-US Companies/How US Controls Impact Non-US Companies, Affiliates and Transactions, PLUS Other Country Controls Comparison to US Seminar
;” ECTI;
jessica@learnexportcompliance.com
; 540-433-3977

* 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

* Nov 15: Leeds, UK; ”
Intermediate Seminar;” UK Department for International Trade;
denise.carter@trade.gsi.gov.uk 

* Nov 16: Leeds, UK; ”
Beginners Workshop;” UK Department for International Trade;
denise.carter@trade.gsi.gov.uk 

* Nov 16: Leeds, UK; ”
Licenses Workshop;” UK Department for International Trade;
denise.carter@trade.gsi.gov.uk 

* Nov 16: Leeds, UK; ”
Control List Classification – Combined Dual Use and Military;” UK Department for International Trade;
denise.carter@trade.gsi.gov.uk 

* Nov 16: Nijkerk, the Netherlands; “Training Export Control” [in Dutch]; Fenedex
* Dec 4-7: Miami FL; “
ITAR Defense Trade Controls / EAR Export Controls Seminar;” ECTI; jessica@learnexportcompliance.com; 540-433-3977

# 5 Dec: Brussels, Belgium; ”
Dual Use For Beginners
” [In Dutch]; Flemish Department of Foreign Affairs

* 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_a115
. Bartlett’s Unfamiliar Quotations

(Source: Editor)

Gustav Mahler (
7 Jul 1860 – 18 May 1911, was an Austrian
 
composer, and one of the leading 
conductors
 of his generation.)
  – “I am hitting my head against the walls, but the walls are giving way.”
 
Robert A. Heinlein (
Robert Anson Heinlein, 7 Jul 1907 – 8 May 1988, was an 
American
 
science fiction
 writer. Often called the “dean of science fiction writers”,
 
his controversial works continue to have an influential effect on the genre, and on modern culture more generally.)
  – “I never learned from a man who agreed with me.”
  – “Women and cats will do as they please, and men and dogs should relax and get used to the idea.”
 
Friday Funnies
 
Two elderly women were out driving in a large car – both could barely see over the dashboard. As they were cruising along, they came to an intersection. The stoplight was red, but they went on through. The woman in the passenger seat thought to herself “Did we just run a red light?” After a few more minutes, they came to another intersection and the light was red again. Again, they went right through without even slowing down.  The woman in the passenger seat was almost sure that the light had been red but was really concerned that she was losing it, and she was getting nervous. At the next intersection, sure enough, the light was red and they went on through again without a touch on the brakes. So she turned to the other woman and said, “Mildred, did you know that you just drove through three red lights in a row?  You could have killed us both!” Mildred turned to her and said, “Oh dear, am I driving?”
  – Rich Grunenwald, Hilliard, OH

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

EN_a216. 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: 30 Jun 2017: 
82 FR 29714-29719
: Modernization of the Customs Brokers Examination [Effective Date: 31 July 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 cancelled Supp. 1 to the NISPOM  (Summary here.)


EXPORT ADMINISTRATION REGULATIONS (EAR)
: 15 CFR Subtit. B, Ch. VII, Pts. 730-774

  – Last Amendment:7 July 2017: 82 FR 31442-31449: Revisions to the Export Administration Regulations Based on the 2016 Missile Technology Control Regime Plenary Agreements. 

  

FOREIGN ASSETS CONTROL REGULATIONS (OFAC FACR): 31 CFR, Parts 500-599, Embargoes, Sanctions, Executive Orders
 
 – Last Amendment: 16 Jun 2017: 82 FR 27613-27614: Removal of Burmese Sanctions Regulations 
 

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: 28 Jun 2017: 
Harmonized System Update 1704, containing 
2,564 ABI records and 463 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.
  – Last Amendment: 11 Jan 2017: 82 FR 3168-3170: 2017 Civil Monetary Penalties Inflationary Adjustment
  – The only available fully updated copy (latest edition: 10 Jun 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 800 footnotes containing amendment histories, 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_a317
. 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.

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EPEDITORIAL POLICY

* The Ex/Im Daily Update is a publication of FCC Advisory B.V., compiled by: Editor, James E. Bartlett III; Assistant Editors, Alexander P. Bosch and Vincent J.A. Goossen; and Events & Jobs Editor, John Bartlett. The Ex/Im Daily Update is 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.

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