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17-0728 Friday “The Daily Bugle”

17-0728 Friday “Daily Bugle”

Friday, 28 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. DHS/CBP & Treasury Amend Customs Regulations, Technical Corrections to Parts 159, and 181
  2. Justice/ATF Seeks Comments on Form ATF F 8 (5310.11) Part 11, Federal Firearms License RENEWAL Application
  1. Ex/Im Items Scheduled for Publication in Future Federal Register Editions 
  2. Commerce/BIS: Harold Rinko/Global Parts Supply of Hallstead, PA, to Pay $100,000 and Debarred for Ten Years to Settle Alleged Export Violations 
  3. DHS/CBP Announces ACE PRODUCTION Outage, 29-30 Jul
  4. DHS/CBP Announces MID Deployment to the ACE Certification Environment, 1 Aug
  5. DHS/ICE: “Indiana Man Admits Role in Darknet Weapons Trafficking Scheme”
  6. DHS/ICE: “New Zealand Man Sentenced for Conspiring to Export Sensitive Parts to China” 
  7. State/DDTC: (No new postings.)
  8. Japan METI Posts Notice on the Enforcement of the Revised Foreign Exchange and Foreign Trade Act
  1. Global Trade News: “U.S. CBP Announces New Timeline for Automated Commercial Environment”
  2. ST&R Trade Report: “Dates and Deadlines: Trademarks, Textiles, Trade Agreements, Customs Brokers”
  3. ST&R Trade Report: “Defense Exports, ITDS Among Topics of Upcoming Federal Agency Rules”
  1. D. Jacobson, G. Kelley and M. Burton: “New US Sanctions on Russia, Iran and North Korea”
  2. J. Reeves & T. Ficaretta: “ATF Policy – Firearm Purchasers Must Specify ‘Male’ or ‘Female’ on Form 4473 Firearms Transaction Record”
  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 (28 Jul 2017), DOD/NISPOM (18 May 2016), EAR (7 Jul 2017), FACR/OFAC (16 Jun 2017), FTR (19 Apr 2017), HTSUS (25 Jul 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. DHS/CBP & Treasury Amend Customs Regulations, Technical Corrections to Parts 159, and 181

(Source: Federal Register) [Excerpts.]
 
82 FR 35064-35065: Technical Corrections to U.S. Customs and Border Protection Regulations
* AGENCY: U.S. Customs and Border Protection, Department of Homeland Security; Department of the Treasury.
* ACTION: Final rule.
* SUMMARY: U.S. Customs and Border Protection (CBP) periodically reviews its regulations to ensure that they are current, correct, and consistent. Through this review process, CBP discovered some discrepancies. This document amends certain sections of title 19 of the Code of Federal Regulations to remedy these discrepancies.
* DATES: The final rule is effective July 28, 2017.
* FOR FURTHER INFORMATION CONTACT: Grace A. Kim, Regulations and Rulings, Office of Trade, (202) 325-7941.
* SUPPLEMENTARY INFORMATION: …
 
Discussion of Changes
 
Part 159
   Section 159.58 (19 CFR 159.58) concerns the suspension of liquidation by CBP when there are antidumping and countervailing duty determinations. The references to part 353 of title 19 CFR in 19 CFR 159.58(a) and to part 355 of title 19 CFR in 19 CFR 159.58(b) are incorrect. On May 19, 1997, the U.S. Department of Commerce revised its regulations on antidumping and countervailing duty proceedings to conform to the Uruguay Round Agreements Act (62 FR 27296) (May 19, 1997) which resulted in a new part 351 and the deletion of parts 353 and 355. Accordingly, this document makes conforming changes to Sec. Sec. 159.58(a) and 159.58(b) to reflect this revision.
 
Part 181
   Subpart D of Part 181 of title 19 deals with post-importation duty refund claims under the North American Free Trade Agreement (NAFTA). Section 181.33(d)(1) lists instances wherein a port director may deny a post-importation duty refund claim for preferential tariff treatment for imported goods under the NAFTA, and it references Sec. 181.32(b)(3) in the context of the validity of a Certificate of Origin. This is not the correct reference. The proper reference should be to Sec. 181.32(b)(2), which references the requirement to file a Certificate of Origin with respect to the imported goods. Accordingly, this document makes changes to Sec. 181.33(d)(1) to reference Sec. 181.32(b)(2) instead of Sec. 181.32(b)(3). …
 
   Dated: July 24, 2017.
Kevin K. McAleenan, Acting Commissioner, U.S. Customs and Border Protection.

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EXIM_a2

2. Justice/ATF Seeks Comments on Form ATF F 8 (5310.11) Part 11, Federal Firearms License RENEWAL Application

(Source: Federal Register) [Excerpts.]
 
82 FR 35239: Agency Information Collection Activities; Proposed eCollection eComments Requested; Federal Firearms License (FFL) RENEWAL Application–ATF F 8 (5310.11) Part 11
* AGENCY: Bureau of Alcohol, Tobacco, Firearms and Explosives, Department of Justice
* ACTION: 30-Day notice. …
* DATES: Comments are encouraged and will be accepted for an additional 30 days until August 28, 2017.
* FOR FURTHER INFORMATION CONTACT: If you have additional comments, particularly with respect to the estimated public burden or associated response time, have suggestions, need a copy of the proposed information collection instrument with instructions, or desire any other additional information, please contact Tracey Robertson, Chief, Federal Firearms Licensing Center either by mail at 244 Needy Road, Martinsburg, WV 20226, by email at Tracey.Robertson@atf.gov. Written comments and/or suggestions can also be directed to the Office of Management and Budget, Office of Information and Regulatory Affairs, Attention Department of Justice Desk Officer, Washington, DC 20503 or sent to OIRA_submissions@omb.eop.gov.
* SUPPLEMENTARY INFORMATION: …
  – The Title of the Form/Collection: Federal Firearms License (FFL) RENEWAL Application.
  – Form number: ATF F 8 (5310.11) Part 11.
  – Component: Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Department of Justice. …
  – Abstract: The form is filed by the licensee desiring to renew a Federal firearms license. It is used to identify the applicant, locate the business/collection premises, identify the type of business/collection activity, and determine the eligibility of the applicant. …
 
  Dated: July 25, 2017.
Melody Braswell, Department Clearance Officer for PRA, U.S. Department of Justice.

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OGSOTHER GOVERNMENT SOURCES

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

(Source:
Federal Register)
 
* Defense; NOTICES; Agency Information Collection Activities; Proposals, Submissions, and Approvals: Federal Acquisition Regulation: Buy American, Trade Agreements, and Duty-Free Entry [Publication Date: 31 July 2017.]

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

OGS_a24
. Commerce/BIS: Harold Rinko/Global Parts Supply of Hallstead, PA, to Pay $100,000 and Debarred for Ten Years to Settle Alleged Export Violations

(Source:
Commerce/BIS) [Excerpts.]
 
* Respondent: Harold Rinko/Global Parts Supply, Hallstead, PA
* Charges: One charge of 15 C.F.R. §764.2(d)- Conspiracy
  Beginning in at least September 2007, and continuing through at least May 2011, Rinko/Global Parts Supply conspired and/or acted in concert with others, known and unknown, to bring about an act that constitutes a violation of the Export Administration Regulations (“EAR”). The purpose of the conspiracy was to procure U.S.-origin goods, items subject to the EAR, from suppliers in the United States for export from the United States to Syria without the required authorization from BIS.  
  Rinko/Global Parts Supply’s co- conspirators included Moawea Deri, a citizen and resident of Syria, and his brother, Ahmad Feras Diri, also known as Feras Diri, a citizen and resident of the United Kingdom (“U.K.”), who both operated d-Deri Contracting & Trading, a business located in Damascus, Syria that also transacted business in and through the U.K. In furtherance of the conspiracy, Rinko/Global Parts Supply procured items subject to the EAR from U.S. suppliers and exported or attempted to export them to Syria through a third country. These items were either specifically listed on the Commerce Control List or designated as EAR99. …
* Penalty: Civil penalty in the amount of $100,000. However, all of which shall be suspended for a period of five years from the date of this Order, and thereafter shall be waived, provided that during this five-year payment probationary period, Rinko has fully and timely complied with the quarterly reporting requirements described in the Order and has not committed a violation of the Act, or any regulation, order, license, or authorization issued thereunder.
* Debarred: For a period of ten years from the date of the Order. However, the ten-year denial period shall be suspended for a period of ten years from the date of the Order, and shall thereafter be waived, provided that during this ten-year probationary period Rinko has timely completed and submitted each of the quarterly reports as set forth above, and has not committed any violation of the Act or the Regulations or any order, license or authorization issued thereunder.
* Date of Order: 26 July 2017

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(Source:
CSMS #17-000424, 28 July 2017.)
 
There will be an ACE PRODUCTION Outage Saturday evening, July 29, 2017 from 2200 ET to 0400 ET Sunday, July 30, 2017 for ACE infrastructure maintenance activities.
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(Source:
CSMS #17-000425, 28 July 2017.)
 
The ACE Manufacturer (MID) Add functionality will be deployed to ACE CERT on 1 August 2017.

The draft ACE CATAIR chapter for this functionality can be found here.

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(Source:
DHS/ICE) [Excerpts.]
 
An Indiana man admitted Thursday to transporting weapons to New Jersey in connection with illegal firearms trafficking and sales activity he conducted on an underground internet based marketplace known as Alphabay. The guilty plea follows an investigation by U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI).
 
Benjamin Donald Brunni, 19, of Greensburg, Indiana, pleaded guilty before U.S. District Judge Brian R. Martinotti in Trenton federal court to one count of transporting and selling firearms without a license.
 
Co-defendant Nicholas Michael Albertson, 20, of Columbus, Indiana, pleaded guilty to the same offense on July 14, 2017. The arrests of Brunni and Albertson stemmed from a larger law enforcement operation initiated by HSI that targeted illegal activities conducted through the Darknet since 2013. …
 
Beginning in April 2013, HSI special agents conducted an undercover investigation of illicit sales activity on various Darknet internet platforms. During the course of the investigation, Alphabay was identified as a website that provided a platform for vendors and buyers to conduct anonymous online transactions involving the sale of a variety of illegal goods, including firearms, ammunition, explosives, narcotics, and counterfeit items.
Unlike mainstream e-commerce websites, Alphabay was only accessible via the “Tor” network, which enabled its users to conceal their identities and physical locations. Although Tor has known legitimate uses, it is also used by cybercriminals seeking anonymity during illicit online activities.
 
During the course of the investigation, HSI agents learned that Brunni maintained a profile on Alphabay in which he expressed interest in the sale and purchase of firearms and ammunition. For approximately one month, Brunni negotiated with an undercover officer, whom he believed was an international purchaser of firearms, for the sale of numerous semi-automatic handguns and rifles.
 
Ultimately, Brunni agreed to sell 10 firearms to the undercover agents, including eight Glock-model semi-automatic handguns with obliterated serial numbers and two semi-automatic rifles for $7,550. Brunni also agreed to transport the weapons from his home in Indiana to New Jersey to complete the transaction.
 
On Sept. 9, 2016, Brunni and Albertson traveled to the meeting spot at a truck stop in Phillipsburg, New Jersey, and were subsequently arrested. Law enforcement agents recovered a loaded Smith & Wesson Model 5906 S-A Pistol in the vicinity of the Mercedes driver’s seat, as well as three Glock Model 22 Pistols, one Glock Model 17 Gen 4 Pistol, one Glock Model 20 Pistol, one Glock Model 26 Gen 4 Pistol, one Glock Model 30 Pistol, one Glock Model 34 Pistol, one Rugar AR-556 assault rifle and one Anderson Mfg. AM-15 assault rifle. The serial numbers from each of the Glock handguns were obliterated and unrecognizable.
 
The unlicensed sale and weapons transportation charge carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing for Brunni and Albertson is scheduled for Nov. 28, 2017 and Nov. 13, 2017, respectively.
* * * * * * * * * * * * * * * * * * * *

(Source:
DHS/ICE) [Excerpts.]
 
A New Zealand man who traveled to Seattle last year to take possession of export-restricted parts designed for missile and space applications was sentenced Thursday to two years in federal prison for conspiring to violate the Arms Export Control Act, following a probe by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
 
William Ali, 38, has been in federal custody since his arrest April 11, 2016, by HSI special agents. At Thursday’s sentencing, U.S. District Judge Thomas S. Zilly said, “You knew that if you did it you could go to jail and you proceeded to do it…you laughed and you were undeterred in your decision to come here.” …
 
According to records in the case and testimony presented at trial, Ali emailed several companies and distributors in April 2015 about purchasing certain accelerometers that are designed for use in spacecraft and missile navigation. These accelerometers cannot be exported from the United States without a license from the U.S. State Department, which Ali did not have. HSI learned of Ali’s inquiries and began an investigation. …
 
Over the next year, Ali communicated by phone and email with an HSI undercover special agent, and with a person in China known in his emails as “Michael.” Michael was the person seeking the accelerometers, as well as certain gyroscopes that are designed for military use. Ali was working to find a way to purchase the devices and transport them secretly to Michael in China. In multiple emails, Ali made clear he was aware that export of the accelerometers and gyroscopes was illegal. Ali sent the undercover agent nearly $25,000 for the devices – money he got from Michael. Ali traveled to Seattle and met with the undercover HSI special agent April 11, 2016, at a downtown hotel. Shortly after Ali took possession of the devices he was arrested.  Ali had with him an airline ticket to Hong Kong and a visa to travel to China. …
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Concerning the Act for Partial Revision of the Foreign Exchange and Foreign Trade Act (hereinafter referred to as the “Revised Act”), which was established at the ordinary session of the Diet in 2017, the Cabinet and Ministerial Orders and the Public Notices required for the enforcement of the Revised Act were promulgated and publicized in the official gazette on July 14, 2017.
OUTLINE OF THE REVISED ACT
 
Aiming to exercise the strict control of critical technologies and goods and enhance the effectiveness of sanctions related to any illegal acts concerning imports and exports, the Revised Act is to increase the severity of penalties and tighten administrative sanctions imposed on import/export regulation violators and to strengthen the regulations concerning inward direct investment related security.
 
The Revised Act was discussed at the ordinary session of the Diet in 2017 and established in May 2017.
 
OUTLINE OF THE PROMULGATED CABINET AND MINISTERIAL ORDERS AND PUBLIC NOTICES
 
 (1) Provision related to the effective date:
 
The Cabinet Order is to stipulate the effective date of the Revised Act as October 1, 2017.

Enactment of the Cabinet Order
 
 (2) Provision related to the tightening of administrative sanctions
 
Aiming to address businesses that evade sanctions under the import/export prohibition order by using distinct companies, the Revised Act is to introduce a new system in which Japan is allowed to issue a prohibition order to board members or employees of a company on which an import/export prohibition order has been imposed, preventing them from taking board member or other positions in charge of import/export operations in another company.
 
Regarding this system, the Cabinet and Ministerial Orders are to stipulate the definition of the term “employee” subject to the order above, as “personnel who supervise business conducted in the business offices” and/or “personnel who substantially act for any other business equivalent to the former business including those who routinely supervise business.”

Revision of the Cabinet and Ministerial orders
 
 (3) Provision related to the strengthening of the regulations concerning inward direct investment related security
 
  (i)Provisions related to specified acquisition
 
Concerning inward direct investment regulation, the Revised Act is to newly add specified acquisition

a transfer of shares issued by non-listed companies between foreign investors

into the coverage of controlled targets under the system in which foreign investors are required to submit a prior notification and receive an examination.
 
Regarding this, the Cabinet and Ministerial Orders and the Public Notice are to stipulate the following provisions:
 
  – Specified acquisition for which foreign investors are not required to submit a prior notification:
  – The Cabinet and Ministerial Orders are to stipulate the specified acquisition through inheritance or as a testamentary gift as specified acquisition for which foreign investors are not required to submit a prior notification.

Revision of the Cabinet and Ministerial Orders
  – Specification business types subject to the submission of prior notifications:
  – The Cabinet and Ministerial Orders and the Public Notice are to designate the types of industries subject to the submission of prior notifications, e.g., weapon manufacturing industries.

Revision of the Cabinet and Ministerial Orders and enactment of the Public Notice
 
  (ii)Provision related to government orders to take corrective measures
 
The Revised Act is to establish a system in which government orders to take corrective measures

e.g., orders to sell stock

are imposed on a foreign investor who has made an illegal inward direct investment

e.g., without submitting a notification.
 
Regarding this system, the Cabinet and Ministerial Orders are to stipulate specific methods for advancing necessary measures and communicating orders, e.g., delivery of a document describing the details of such orders by mail, or by personal service, while returning the document by making service by publication effective in the case that recipient

s address is unknown. (Revision of the Cabinet and Ministerial Orders)
* * * * * * * * * * * * * * * * * * * *

NWSNEWS

 
U.S. Customs and Border Protection has announced an updated schedule for the deployment for the Automated Commercial Environment (ACE) post-release functions previously scheduled for July 8, 2017. The deployment includes liquidation (except for previously deployed Notices of Liquidation posted online), reconciliation, drawback, duty deferral, statements, collections and the Automated Surety Interface (ASI). With the exception of the collections functionality, the remaining post-release capabilities are ready and available for trade testing.
 
  – Non-ABI Entry Summary/Lineless (for CBP only), Duty Deferral, e214 (electronic Foreign Trade Zone admission) and Manufacturer ID Creation, Sept. 16, 2017
  – Statements, Dec. 16, 2017
  – Reconciliation, ACE Core Drawback and Trade Facilitation and Trade Enforcement Act (TFTEA) Drawback, Liquidation and Automated Surety Interface (ASI), Feb. 24, 2018

Between February 2018 and February 2019, trade users will have the option to file either Core Drawback or TFTEA Drawback.
 
Core Drawback includes:
 
  – Consolidation to entry type 47
  – For electronic claims, submission of entire drawback package electronically
  – System validations
  – Integration with post release processes
  – Improved system controls
  – Does not require line level reporting
 
TFTEA Drawback includes:
 
  – Substitution based on 8-digit HTS or Schedule B number
  – Requirement to file all drawback claims electronically
  – Recordkeeping requirement three years from date of liquidation
  – All claims due five years from date of importation
  – Reliance on documents kept in “normal course of business”
  – Requires line level reporting
 
The re-planning required to address issues with collections capabilities is continuing. The ABI Query for Foreign Currency Rates will remain in ACS until ACS is no longer available. Currency rate calculation information is posted at www.cbp.gov/ace.
 
ACE is the primary system through which the trade community reports imports and exports and the government determines admissibility. Through ACE as the Single Window, manual processes are streamlined and automated, paper is being eliminated and the trade community will be able to more efficiently comply with U.S. laws and regulations. Working in close coordination with the Department of Homeland Security, the Border Interagency Executive Council and the White House, CBP is working to meet an executive order signed in 2014. An executive order in December 2016 gained further ground for ACE.
 
Complying with CBP ACE filing requirements may take time and training. Companies need to understand regulation deadlines and have ready-made solutions that can support ACE filing. 
* * * * * * * * * * * * * * * * * * * *

 
Following are highlights of regulatory effective dates and deadlines and federal agency meetings coming up in the next week.
 
  – 31 Jul: deadline for comments to USDA on proposed import assessment exemption for softwood lumber
  – 31 Jul: deadline for submitting claims for distributions of AD/CV duties under CDSOA
  – 31 Jul: deadline for comments to USDA on electronic import inspection information collection
  – 31 Jul: deadline for comments to Treasury on ways to reduce regulatory burden
  – 31 Jul: deadline for comments to FTZ Board on production authority request for personal flotation device facility
  – 31 Jul: deadline for comments to FTZ Board on requests from power equipment, glass fabrics facilities
  – 31 Jul: deadline for comments to FTC on proposed changes to Textile Rules
  – 31 Jul: deadline for comments to USTR on performance of trade agreements and preference programs
  – 31 Jul: effective date of CBP final rule revising broker license exam regulations
  – 31 Jul: deadline for comments to USDA on proposed rule to allow poultry imports from Japan
  – 31 Jul: deadline for requesting administrative reviews of AD/CV duty orders
  – 31 Jul: deadline for comments on proposal to add three chemicals to California Prop 65 list

  – 2 Aug: deadline for comments to CPSC on proposed safety standard for booster seats

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

 
Amendments to defense export regulations and readying for deployment of the International Trade Data System are among the topics of proposed and final regulations set forth in the semiannual regulatory agendas recently issued by a number of federal agencies, including the departments of State, Justice, and the Treasury, the Fish and Wildlife Service, and the Food and Drug Administration. These online resources list the following regulations affecting international trade that could be issued within the next year. The expected timeframes for issuance of the rules are indicated in parentheses.
 
  – a Fish and Wildlife Service proposed rule to revise the regulations on the importation, exportation, and transportation of wildlife to adapt to the ITDS, clarify prior notification requirements and clearance and clearance refusal options, and add the ability for FWS to offer a conditional release of certain wildlife to coordinate release activities under ITDS (July)
  – a proposed rule from the Treasury Department’s Alcohol and Tobacco Tax and Trade Bureau to amend the regulations on the exportation of distilled spirits, wine, beer, and tobacco products to update export procedures and implement ITDS (September; previously April)
  – a State Department final rule amending the International Traffic in Arms Regulations to clarify the requirements for the licensing and registration of U.S. persons providing defense services while in the employ of foreign persons (December; previously June)
  – a State Department proposed rule to clarify the scope of authorized retransfers under the Canadian exemption in section 126.5 of the ITAR and to create a new exemption for temporary export to a foreign original equipment manufacturer for repair and maintenance purposes (December; first time published)
  – a State Department final rule amending the policy pertaining to what information submitted to the Directorate of Defense Trade Controls is subject to public disclosure and clarifying the policies and procedures regarding statutory debarments (December; first time published)
  – a State Department final rule clarifying when exports may be made to or on behalf of a U.S. government agency without a license and expanding this exemption to cover permanent exports (December; first time published)
  – a State Department proposed rule to revise the ITAR definition of defense service (March 2018; first time published)
  – a Food and Drug Administration final rule on gluten-free labeling of fermented, hydrolyzed, or distilled foods (October 2018; previously April 2017)
 
COMPLETED RULEMAKINGS
 
  – an FDA final rule establishing user fees for the accreditation of third-party auditors under the Food Safety Modernization Act
  – an FDA final rule banning powdered surgeons’ gloves, powdered patient examination gloves, and absorbable powder for lubricating surgeons’ gloves
  – a TTB final rule to amend the regulations on the importation of distilled spirits, wine, beer, and tobacco products to update import procedures and implement the ITDS
* * * * * * * * * * * * * * * * * * * *

COMMCOMMENTARY

(Source:
Authors)
 

* Authors: Douglas N. Jacobson, Esq.,
djacobson@jacobsonburton.com
, 202-431-2407; Glen N. Kelley, Esq.,
gkelley@jacobsonburton.com
, 212-658-0601; and Michael L. Burton, Esq.,
mburton@jacobsonburton.com
, 202-957-8009. All of Jacobson Burton Kelley PLLC.
 
On Tuesday and Thursday, July 25 and 27, both houses of US Congress passed almost unanimously a lengthy bill expanding US sanctions on Russia, Iran and North Korea. It seems likely President Trump will sign into law the bill, titled the Countering America’s Adversaries Through Sanctions Act (“CAATSA”), in the coming days.

The provisions that are likely to have the greatest practical impact are those seeking to expand US capital markets and other “sectoral” sanctions targeting major Russian banks and oil and gas companies. The bill also introduces “secondary sanctions” for non-US persons engaged in certain types of transactions with Russia. However, it is far from clear that the Trump Administration will implement these sanctions.

In this summary we use the term “persons” to refer to both individuals and companies and other entities, and the term “US persons” to refer to US citizens and permanent residents, entities formed under US law, and any other person engaged in conduct within the United States.

EXPANDING AND LOCKING IN RUSSIA SANCTIONS

Restrictions on lifting of sanctions 

Once the bill is enacted into law, the Trump Administration will not be able to lift the Russia sanctions without first going through a Congressional review procedure. The statute also “codifies” almost all existing US sanctions executive orders focused on Russia, which means the President will not be able to lift sanctions imposed on any specific person without first submitting certain specified determinations or certifications to Congress.

It appears that the White House is reluctantly prepared to accept these provisions, after a compromise reached last week with Congressional negotiators, that:

  – increased the procedural hurdles for Congress to block a lifting of sanctions, and
  – ruled out Congressional review of any “routine” US government license (authorization) of a specific transaction that “does not significantly alter United States foreign policy”.

The bill also authorizes the imposition of sectoral sanctions on companies in Russia’s railways, mining and metals sectors. However this already overlaps with existing sanctions authorities, and the Trump Administration is unlikely to choose to implement these sanctions.

Expanded sectoral sanctions 

In 2014, the US and EU imposed “sectoral sanctions” on many of the largest Russian banks, oil and gas companies and dozens of their subsidiaries.

The bill will direct the US Office of Foreign Assets Control (“OFAC”) to expand its Directives 1 and 2 under the sectoral sanctions. These Directives prohibit US person involvement in new financing for such Russian banks and oil and gas companies, and new share issuances by such banks. The Directives will be broadened to cover new debt of such banks with a maturity longer than 14 days (currently only debt with a maturity over 30 days is covered), and new debt of such oil and gas companies with a maturity over 60 days (currently 90 days).

This could have a significant practical impact. OFAC interprets the prohibition on new debt to include the payment terms of any invoice for goods or services rendered to these covered companies. Once the changes goes into effect, there could be a US sanctions issue for any US person who is not paid within 14 or 60 days (rather than the current 30 or 90 days) by a covered company.

The bill will also direct OFAC to expand its Directive 4, which prohibits US persons from providing goods, technology and non-financial services for exploration and production by certain targeted Russian oil and gas companies, and their subsidiaries, in Russian deepwater, arctic offshore and shale oil and gas fields. Directive 4 will be broadened to cover new projects in deepwater, arctic offshore or shale oil and gas fields anywhere in the world (not just in or offshore Russia), if a company covered under Directive 4 has at least a 1/3 ownership interest.

New secondary sanctions 

The bill will also establish new secondary sanctions, giving the Trump Administration the option of penalizing non-US companies engaged in certain sensitive activities relating to Russia, even if the penalized company has no ties or contact with the United States. Unless there is a change in Trump Administration policy on Russia, we think it is unlikely that there will be significant enforcement of these new sanctions.

After the new secondary sanctions measures become law, companies and banks involved in covered transactions may need to decide whether to avoid those transactions, on the basis that they could theoretically trigger US secondary sanctions penalties. As part of that decision-making process, companies should consider that such penalties are unlikely under present circumstances, and that they could become more likely if there is a change in the Russia-related policies of the US President and his Administration.

The new secondary sanctions will give President Trump the authority to penalize non-US persons engaging in the following activities:

  – investing, or providing goods, technology or services, that directly and significantly contributes to Russian energy export pipelines, in each case with a value of $1 million or in smaller transactions with an aggregate value of $5 million in any 12-month period;
  – investing or facilitating investment by others, with a value of $10 million, related to Russian privatization of state assets that unjustly enrich Russian government officials or their associates; or
  – a significant transaction, more than 180 days after the bill becomes law, with a person that is part of, or operates for or on behalf of, the defense or intelligence sectors of the Russian government.

In the first of these new measures Congress apparently had the planned Nord Stream 2 pipelines in mind, which will transport natural gas from Russia to consumers in the EU. In a June 15 joint statement, Germany and Austria, which support the pipelines, said the new sanctions measure “introduces a completely new, very negative dimension into European-American relations” and “we can’t accept the threat of illegal and extraterritorial sanctions against European companies”.

In addition, President Trump will have the authority to penalize non-US persons for the following types of transactions, though he is likely to waive or decline to exercise that authority:

  – investments by non-US persons in any of the projects covered by Directive 4;
  – significant transactions by non-US banks related to such investments, arms exports to Syria, or any withholding by Gazprom of significant natural gas supplies from NATO or certain Eastern European countries; and
  – significant financial transactions by non-US banks on behalf of any Russian persons added to the SDN List under the Russia sanctions.

Expanded blocking sanctions 

Finally, the bill expands existing sanctions authorities under which non-US persons engaged in certain activities can be blocked (meaning their assets can be frozen). For example, blocking can now be imposed for:

  – a broader range of hacking activities on behalf of the Russian government;
  – transactions seeking to evade the effect of Russia sanctions;
  – human rights violations in territories occupied by Russia; and
  – support to the Syrian government in acquiring significant weapons, ballistic or cruise missiles or weapons of mass destruction.

The practical impact for the private sector may be limited, so long as companies keep a close watch on any entities added to the US List of Specially Designated Nationals and Blocked Persons (“SDN List”).

ADJUSTMENTS TO IRAN SANCTIONS

Most of the Iran sanctions provisions will have limited or no practical impact on the private sector, because they are (i) largely overlap with existing sanctions measures, (ii) will likely be interpreted by the Trump Administration to not require any additional sanctions, or (iii) merely require the executive branch to carry out analysis or provide reports to Congress.

For example, the new sanctions relating to persons who materially contribute to Iranian missile programs, or for persons involved in the supply to or from Iran of major weapons systems, arguably do not greatly expand the Administration’s ability to sanctions such persons under existing authorities.

While the new human rights sanctions arguably expand existing authorities to target Iranian government officials and others engaged in gross violations of human rights against Iranians, this is unlikely to directly impact most private companies outside Iran.

The statute calls for the terrorist designation of the Iranian Revolutionary Guard Corps (IRGC) and its officials, agents and affiliates. There would be little practical impact for the private sector, as the IRGC and many related persons are already targeted under similar sanctions authorities.

Further limiting the practical impact on the private sector, the new sanctions expressly do not impact humanitarian transactions, including the sale of agricultural commodities, medicine and medical devices to Iran, and related payments and transportation.

NORTH KOREA

The bill amends a February 2016 statute that sought to expand US sanctions on North Korea, and codified (locked in) the existing sanctions. The current sanctions bill adds the following to the list of sanctionable activities:


  – purchasing certain metals and minerals from North Korea, or selling to North Korea of rocket, aviation or jet fuel;
  – supporting the operation and maintenance of vessels and aircraft covered by the sanctions, or insuring or registering North Korean government vessels; or
  – maintaining a correspondent account for a North Korean financial institution (this has been prohibited for US banks since November 2016 under a separate “special measure” under US anti-money laundering law).

As with the 2016 statute, the bill seeks to require the President to implement these sanctions. However, the Trump Administration could react in the way the Obama Administration did in 2016, and decline to do so.

Under the bill, if a US bank learns that a correspondent account they maintain for a non-US bank is being used by the non-US bank to indirectly provide significant financial services to a person added to the SDN List pursuant to the 2016 statute, the US bank will be required to ensure that this conduct is terminated. The practical impact of this is not yet clear.

The bill prohibits the entry or operation in US waters of vessels included on a list to be developed by the Department of Homeland Security, of vessels over 300 gross tons owned or operated by the North Korean government, by any North Korean person, or by a country not complying with UN sanctions on North Korea. Potentially, 180 days after the publication of this list, the denial of entry will be extended to all vessels registered to any flag state that has registered any of the vessels on the list. This could have a broad impact, depending on how it is implemented.

There are a number of other provisions relating to Russia, Iran and North Korea sanctions that are unlikely to be implemented, or are unlikely to have a practical impact on the private sector.

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

COMM_JEB15
. J. Reeves & T. Ficaretta: “ATF Policy – Firearm Purchasers Must Specify ‘Male’ or ‘Female’ on Form 4473 Firearms Transaction Record”

* Authors: Johanna Reeves, Esq., jreeves@reevesdola.com; and Teresa Ficaretta, Esq., tficaretta@reevesdola.com. Both of Reeves & Dola LLP.
 
This week, officials from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) confirmed the agency’s existing policy concerning completion of the ATF Form 4473, Firearms Transaction Record for over-the-counter sales. The announcement was made during a conference with officials from the Federal Bureau of Investigation (FBI) and members of the firearms industry.

ATF officials stated that purchasers must check either “Male” or “Female” in Block 6 of the Form (“Sex”), and may not leave this block blank, check both boxes, or add a handwritten entry to the form such as “Gender X.” ATF advised that if purchasers refuse to complete the Form 4473 correctly, the licensee should terminate the transaction.

ATF officials explained the issue has come up recently because of changes in certain state laws (Oregon and the District of Columbia) allowing a third gender category on state-issued identification documents. Federal firearms licensees asked for guidance from ATF concerning purchasers who present an identification document with this gender category and how the Form 4473 should be completed.

ATF officials emphasized the agency’s position is not a change from current policy and is consistent with ATF regulations in 27 C.F.R. § 478.124(c)(1), which requires the transferee’s sex on the Form 4473. ATF officials also noted the position is required by FBI regulations relating to queries of its records systems. These regulations in 28 C.F.R. § 25.7(a) require inclusion of sex as one of the search descriptors for the background check.

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TEEX/IM TRAINING EVENTS & CONFERENCES

TE_a216
. Friday List of Approaching Events

(Sources: Event Sponsors) 
 
Published every Friday or last publication day of the week. Send events to  
jwbartlett@fullcirclecompliance.eu
, composed in the below format:

* DATE: PLACE; “TITLE;” SPONSOR; WEBLINK; CONTACT (email and phone number)

#” New listing this week:   
 
Continuously Available Training:
 
* 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:

 

*
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 3: Webinar; ”
Trademark Basics and Benefits for the Smart International Trader;” Sandler, Travis & Rosenberg, P.A.;
webinarorganizers@strtrade.com 

# Aug 7: Webinar; “Is Your Company ‘At-Risk’ for a Government Enforcement Action?;” The Volkov Law Group

# Aug 8: Webinar; ”
FDA’s Expedited Import Program: How to Join and Why You Should;” Sandler, Travis & Rosenberg, P.A.;
webinarorganizers@strtrade.com 

# Aug 9: Webinar; ”
Introduction to the Gun Control Act;” Reeves & Dola LLP; Teresa Ficaretta;
tficaretta@reevesdola.com; 202-715-9183

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

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

# Aug 24: Webinar; ”
Understanding Brazil’s AEO Program;”


Sandler, Travis & Rosenberg, P.A.; webinarorganizers@strtrade.com

* 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;

* Sep 6: Nashville, TN; ”
AES Compliance Seminar;” Dept. of Commerce/Census
Bureau;
itmd.outreach@census.gov

# Sep 7: Marina Del Ray CA: ”
Strategizing for Dealing with the Government Under the New Administration;” Crowell and Moring

# Sep 7: Webinar; ”
Understanding Mexico’s AEO Program;”


Sandler, Travis & Rosenberg, P.A.; webinarorganizers@strtrade.com

* 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 12: Webinar; ”
Meeting CBP’s Informed Compliance and Reasonable Care Standards;”
Sandler, Travis & Rosenberg, P.A.; webinarorganizers@strtrade.com

# Sep 13: Webinar; ”
Definition of ‘Firearm’ Under the Gun Control Act;” Reeves & Dola LLP; Teresa Ficaretta;
tficaretta@reevesdola.com; 202-715-9183

* 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 19: Amsterdam, Netherlands; ”
Amsterdam International Trade and Compliance Conference;” Register
here, OR contact
Sue Menon, 202-887-4375; Akin Gump 


* 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: Tysons Corner, VA; ”
IT Capabilities and Solutions for the Trade Compliance Community;” Society for International Affairs (“SIA”)
* 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 4: Webinar; ”
Exports – New Incentives, Old Rules;”


Sandler, Travis & Rosenberg, P.A.; webinarorganizers@strtrade.com

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


# Oct 10: Aberdeen, UK; ”
UK Strategic Export Controls: Control List Classification – Combined Dual Use and Military;” Code Coct2017; or contact
Denise Carter at 020-7215-4459; 
UK Department for International Trade
#
Oct 10: Aberdeen, UK; “UK Strategic Export Controls: Licenses Workshop;” Code Loct2017; or contact Denise Carter at 020-7215-4459; UK Department for International Trade;
*
 Oct 10: Rotterdam, the Netherlands; “
Awareness Training Export Control, Dual-Use, and Sanctions
” day I/3 [in Dutch]; Fenex 

* Oct 10-12: Dallas, TX; “
‘Partnering for Compliance™’ West Export/Import Control Training and Education Program
;” Partnering for Compliance
 
# Oct 11: Aberdeen, UK; “UK Strategic Export Controls: Intermediate Oil and Gas Seminar;” Code loct2017-2; or contact Denise Carter at 020-7215-4459; UK Department for International Trade;

# Oct 11: Webinar; ”
Basics of Importation Under the Gun Control Act;” Reeves & Dola LLP; Teresa Ficaretta;
tficaretta@reevesdola.com; 202-715-9183

* 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 24: Rotterdam, the Netherlands; “
Awareness Training Export Control, Dual-Use, and Sanctions
” day 2/3 [in Dutch]; Fenex 

* Oct 30-Nov 2: Phoenix, AZ; “
ITAR Defense Trade Controls / EAR Export Controls Seminar
;” ECTI;
jessica@learnexportcompliance.com
; 540-433-3977
# Oct 31: Manchester, UK; “UK Strategic Export Controls: Intermediate Seminar;” Code loct2017; or contact Denise Carter at 020-7215-4459; UK Department for International Trade;
# Nov 1: Manchester, UK; “UK Strategic Export Controls: Beginner’s Workshop;” Code Bnov2017-1; or contact Denise Carter at 020-7215-4459; UK Department for International Trade; 
# Nov 1: Manchester, UK; “UK Strategic Export Controls: Licenses Workshop;” Code Lnov2017-1; or contact Denise Carter at 020-7215-4459; UK Department for International Trade; 
# Nov 1: Manchester, UK; “UK Strategic Export Controls: Control List Classification – Combined Dual Use and Military;” Code Cnov2017-1; or contact Denise Carter at 020-7215-4459; UK Department for International Trade; 
# Nov 2-3: Las Vegas, NV; “The 22nd National M&A Institute;” American Bar Association
* Nov 5-7: Singapore; ”
ICPA Singapore Conference;”
International Compliance Professionals Association;
wizard@icpainc.org
*
 Nov 6: Rotterdam, the Netherlands; “
Awareness Training Export Control, Dual-Use, and Sanctions
” day 3/3 [in Dutch]; Fenex 

* 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 8: Webinar; “Introduction to the National Firearms Act;” Reeves & Dola LLP; Teresa Ficaretta; tficaretta@reevesdola.com; 202-715-9183

* 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

* Dec 5: 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: Webinar; ”
Introduction to Firearms and Ammunition Excise Tax (FAET);” Reeves & Dola LLP; Teresa Ficaretta;
tficaretta@reevesdola.com; 202-715-9183

* 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

#
Jan 22-25: San Diego CA; “
ITAR Defense Trade Controls / EAR Export Controls Seminar
;” ECTI; 
jessica@learnexportcompliance.com
; 540-433-3977
# Feb 19-22: Huntsville AL; “
ITAR Defense Trade Controls / EAR Export Controls Seminar
;” ECTI; 
jessica@learnexportcompliance.com
; 540-433-3977

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

# Apr 16-19: Las Vegas NV; “
ITAR Defense Trade Controls / EAR Export Controls Seminar
;” ECTI; 
jessica@learnexportcompliance.com
; 540-433-3977
# Apr 30-May 3: Wash DC; “
ITAR Defense Trade Controls / EAR Export Controls Seminar
;” ECTI; 
jessica@learnexportcompliance.com
; 540-433-3977

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

ENEDITOR’S NOTES

EN_a117
. Bartlett’s Unfamiliar Quotations

(Source: Editor)

* Alexis de Tocqueville (Alexis Charles Henri Clérel, Viscount de Tocqueville; 29 Jul 1805 – 16 Apr 1859; was a French diplomat, political scientist, and historian. He was best known for his works Democracy in America and The Old Regime and the Revolution.)
  – “The American Republic will endure until the day Congress discovers that it can bribe the public with the public’s money.”

* Max Nordau (Max Simon Nordau, born Simon Maximilian Südfeld; 29 Jul 1849 – 23 Jan 1923, was a Zionist leader, physician, author, and social critic.)
  – “It is well to be alone. It fertilizes the creative impulse.”

Friday funnies:

Two psychiatrist friends meet each other on the street. The first one says, “You’re fine. How am I?”
  — William Netherton, Amarillo, TX
 
Two lions escape from the zoo and take a walk down 5th Avenue. One turns to the other and says, “Where is everybody? I always heard this was a busy street!”

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

EN_a218. 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: 28 Jul 2017: 82 FR 35064-35065: Technical Corrections to U.S. Customs and Border Protection Regulations
 
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 [Effective Date: 7 July 2017.] 

  

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 (18 Jul 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: 25 Jul 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_a319
. Weekly Highlights of the Daily Bugle Top Stories

(Source: Editor)
 

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

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

EPEDITORIAL POLICY

* The Ex/Im Daily Update is a publication of FCC Advisory B.V., 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.

* RIGHTS & RESTRICTIONS: This email contains no proprietary, classified, or export-controlled information. All items are obtained from public sources or are published with permission of private contributors, and may be freely circulated without further permission. Any further use of contributors’ material, however, must comply with applicable copyright laws.

* CAVEAT: The contents cannot be relied upon as legal or expert advice.  Consult your own legal counsel or compliance specialists before taking actions based upon news items or opinions from this or other unofficial sources.  If any U.S. federal tax issue is discussed in this communication, it was not intended or written by the author or sender for tax or legal advice, and cannot be used for the purpose of avoiding penalties under the Internal Revenue Code or promoting, marketing, or recommending to another party any transaction or tax-related matter.

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

* TO UNSUBSCRIBE: Use the Safe Unsubscribe link below.

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