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17-0915 Friday “The Daily Bugle”

17-0915 Friday “Daily Bugle”

Friday, 15 September, 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 Delays ACE Transition Date to 9 Dec 
  1. Ex/Im Items Scheduled for Publication in Future Federal Register Editions 
  2. Commerce/BIS: (No new postings.)
  3. DHS/CBP Announces ACE Deployment G2 and Impact on ACE Reports
  4. DHS/CBP Releases Updated AESTIR Documentation
  5. DHS/CBP Releases Corrected Update Concerning Local Closure for Ports 5201,5203,5204, and 5206 on 8-12 Sep
  6. DoD/DSS Announces NCCS Test Environments Closure
  7. State/DDTC: (No new postings.)
  8. Council of the EU Releases Statements Concerning the 3rd Conference of States Parties to the ATT and the 2018 Review Conference of the UN Programme of Action on SALW
  9. EU Amends Restrictive Measures Concerning North Korea, Ukraine, and ISIL and Al-Qaida
  1. American Shipper: “New Jersey Firm Fined $400,000 for Export Violation”
  2. Global Trade News: “U.S. Customs & Border Protection Delays ACE Status Designation Rollout”
  3. Reuters: “UK Customs Model Unlikely to Achieve Frictionless Post-Brexit Trade”
  4. ST&R Trade Report: “Dates and Deadlines: Customs Enforcement, Trademark Basics, Classification, China”
  1. Avant Provides Searchable CCL
  2. L. Mays & R. Whitten: “The United States Munitions List: When Guns Come Off of the ITAR”
  3. M. Lehner, S. Cooley & C. Laciak: “President Trump Prohibits Canyon Bridge’s $1.3bn Acquisition of Lattice Semiconductor, Despite Pledge to Double U.S. Workforce”
  1. ICPA Presents Annual Asia Conferences: 5-7 Nov in Singapore and 9-10 Nov in Shanghai
  2. 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 (15 Aug 2017), FACR/OFAC (16 Jun 2017), FTR (19 Apr 2017), HTSUS (25 Jul 2017), ITAR (30 Aug 2017)
  3. Weekly Highlights of the Daily Bugle Top Stories 

EXIMEX/IM ITEMS FROM TODAY’S FEDERAL REGISTER

EXIM_a1
1. DHS/CBP Delays ACE Transition Date to 9 Dec

(Source: Federal Register) [Excerpts.]
 
82 FR 43395: Delay of Transition of Test Program Regarding Electronic Foreign Trade Zone; Admission Applications From the Automated Commercial System to the Automated Commercial Environment
* AGENCY: U.S. Customs and Border Protection, Department of Homeland Security.
* ACTION: Delay of transition of test program.
* SUMMARY: On August 16, 2017, U.S. Customs and Border Protection (CBP) published a notice in the Federal Register announcing plans to make the Automated Commercial Environment (ACE) the sole electronic data interchange (EDI) system authorized by the Commissioner of CBP for processing electronic Foreign Trade Zone (FTZ) admission applications. The changes announced in that notice were to become operational on September 16, 2017. This notice announces that the date for the transition to ACE as the sole CBP-authorized EDI system for electronic FTZ admission applications is delayed until December 9, 2017.
* DATES: As of December 9, 2017, ACE will be the sole CBP-authorized EDI system for processing electronic FTZ admission applications, and the Automated Commercial System (ACS) will no longer be a CBP-authorized EDI system for purposes of processing these filings.
* FOR FURTHER INFORMATION CONTACT: For operational questions, contact Lydia Jackson, Cargo & Conveyance Security, Office of Field Operations, U.S. Customs and Border Protection, via email at Lydia.A.Jackson@cbp.dhs.gov. For technical questions, contact Tonya Perez, Cargo Systems Program Directorate, Office of Information and Technology, U.S. Customs and Border Protection, via email at Tonya.M.Perez@cbp.dhs.gov.
* SUPPLEMENTARY INFORMATION: …
   CBP has been assessing stakeholder readiness for the mandatory transition of electronic FTZ admission applications from ACS to ACE. CBP has determined that industry partners need additional time to prepare for the transition to electronic capabilities in ACE.
   Accordingly, all the changes announced in the August 16, 2017 Federal Register notice, including the transition to ACE as the sole CBP-authorized EDI system for electronic FTZ admission applications, will not be operational until December 9, 2017.
 
   Dated: September 11, 2017.
Todd C. Owen, Executive Assistant Commissioner, Office of Field Operations.
 

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OGSOTHER GOVERNMENT SOURCES

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

(Source:
Federal Register)
 

* President; ADMINISTRATIVE ORDERS; Lattice Semiconductor Corporation; Proposed Acquisition by China Venture Capital Fund Corporation Limited (Order of September 13, 2017) [Publication Date: 15 Sep 2017; White House release included in the Daily Bugle of Thursday, 14 September 2017.]
 
* Treasury; Foreign Assets Control Office; NOTICES; Blocking or Unblocking of Persons and Properties [Publication Date: 15 Sep 2017.]

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(Source:
CSMS# 17-000575, 14 Sep 2017)
 
ACE Deployment G, Release 2 will occur on September 16, 2017. This deployment includes Non-ABI Entry Summary/Lineless (for CBP only), Duty Deferral, and Importer Security Filing capabilities.
 
Information regarding this deployment is available in the ACE Deployment G2 Information Notice located here.
 
If you experience issues during the deployment, please contact the help desk or your assigned client representative.
 
Reports Information Notice:
 
ACE Reports will be enhanced to align with the capabilities in Deployment G2. On October 7, 2017, three weeks following Deployment G, Release 2, new ACE Report features will become available. For full details, please reference our ACE Reports Information Notice located here.
* * * * * * * * * * * * * * * * * * * *

(Source:
CSMS# 17-000573, 15 Sep 2017)
 
U.S. Customs and Border Protection (CBP) has updated several Automated Export System Trade Interface Requirements (AESTIR) documents posted on CBP.gov/ACE. The updated documentation includes:
 
* CBP Export Manifest Appendices
 
Click here.
  – Updated – Exemption – OB – added wording – Report the Ocean bill of lading number or Master Airway Bill Number
  – Updated – Exemption – PDF – Used to report a post departure filing. Example: PDF*12345678912. Report USPPI Id approved by Census for post departure filing
 
* CBP Export Manifest Implementation Guide – XML Manifest Message Specification
 
Click here.
  – Updated – Page 9 – Reference Type – corrected See MMM Appendix I1 for valid codes.
 
* AES Downtime Guidelines
 
Click here.
  – Updated – Section 4 – AES or AESDirect System Downtime
 
Shipments reported in AES for which full pre-departure information is required, but not requiring an export license or license exemption (USML specific), will continue to be exported without interruption because the Government’s system is unavailable. When the Government’s AES is unavailable, the goods may be exported and the filer must: A) Provide the appropriate downtime filing citation as described in FTR Section 30.7(b) and Appendix D to 15 CFR Part 30,
 
Foreign Trade Regulations (FTR) (Example: AESDOWN Filer ID mm/dd/yyyy) and B) Report the EEI at the first opportunity AES is available.
 
* ACE AESTIR Summary of Changes
 
Click here.
 
To access the updated AESTIR documentation, please visit the “ACE Export Manifest Implementation Guides” and “Automated Export System Technical Information” pages of CBP.gov/ACE. You may also copy and paste the above URLs to your internet browser.
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(Source:
CSMS# 17-000574, 14 Sep 2017)
 
Commercial trade operations at the Ports of 5201 (Miami Seaport) 5203 (Port Everglades) 5204 (Port of West Palm Beach) and 5206 (Miami International Airport) were temporarily suspended on September 11, 2017 due to the effects of Hurricane Irma. Commercial trade operations resumed normal operations on Wednesday, September 13, 2017.
 
Due to effects of Hurricane Irma, on September 8 through September 12, 2017, local closure days are granted to all who file entries at the Ports of 5201 (Miami Seaport), 5203 (Port Everglades), 5204 (Port of West Palm Beach), and 5206 (Miami International Airport).
 
CBP is extending an additional day, without penalty, for any entry summaries and payments of duties that were due on September 8 through September 12, 2017 in the Ports of 5201 (Miami Seaport) 5203 (Port Everglades), 5201 (Port of West Palm Beach), and 5206 (Miami International Airport).
 
  – Related CSMS #17-000571 [included in the Daily Bugle of 14 Sep 2017, item #7.]
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Starting the afternoon of Friday, September 15, all Wide Area Workflow NISP Contract Classification System (NCCS) Test Environments (GT and RA2) will be down for three weeks due to movements and upgrades. The test sites should be available on Monday, October 9. Should the availability date change, users will be advised.
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The EU has released the following statements concerning the 3rd Conference of States Parties to the Arms Trade Treaty (ATT) on 11-15 Sep 2017 in Geneva:
 
 
Also, the EU released the following statement concerning the
2018 Review Conference of the UN Programme of Action on Small Arms and Light Weapons (SALW)
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Regulations
  – Council Regulation (EU) 2017/1547 of 14 September 2017 amending Regulation (EU) No 269/2014 concerning restrictive measures in respect of actions undermining or threatening the territorial integrity, sovereignty and independence of Ukraine
  – Council Regulation (EU) 2017/1548 of 14 September 2017 amending Regulation (EU) 2017/1509 concerning restrictive measures against the Democratic People’s Republic of Korea
  – Council Implementing Regulation (EU) 2017/1549 of 14 September 2017 implementing Regulation (EU) No 269/2014 concerning restrictive measures in respect of actions undermining or threatening the territorial integrity, sovereignty and independence of Ukraine
        
Decisions
  – Council Decision (CFSP) 2017/1560 of 14 September 2017 amending Decision (CFSP) 2016/1693 concerning restrictive measures against ISIL (Da’esh) and Al-Qaeda and persons, groups, undertakings and entities associated with them
  – Council Decision (CFSP) 2017/1561 of 14 September 2017 amending Decision 2014/145/CFSP concerning restrictive measures in respect of actions undermining or threatening the territorial integrity, sovereignty and independence of Ukraine
  – Council Decision (CFSP) 2017/1562 of 14 September 2017 amending Decision (CFSP) 2016/849 concerning restrictive measures against the Democratic People’s Republic of Korea
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NWSNEWS

(Source:
American Shipper, 15 Sep 2017) [Excerpts.]
 
… The State Department’s Directorate of Defense Trade Controls (DDTC) this week imposed a $400,000 civil penalty against Barrington, N.J.-based Bright Lights USA for exports of unauthorized defense components and technical data in violation of the International Traffic in Arms Regulations (ITAR). …
 
Bright Lights notified DDTC of two ITAR violations in voluntary self-disclosures filed with the agency in April 2013 and June 2016.
 
The primary reason for the violations relates to the company not staying current with the former Obama administration’s Export Control Reform (ECR) regarding transition of ITAR-related commodities/technology from the State Department’s U.S. Munitions List to the Commerce Control List. The wrong commodity jurisdiction resulted in the incorrect export licensing classification, which further resulted in export violations for both the physical export of the items and the illegal transfer of technology made by the company. …
 
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Originally bundled with a Sept. 16 Automated Commercial Environment (ACE) deployment, the E214 release has now been rescheduled to Dec. 16, 2017. Acting U.S. Customs and Border Protection (CBP) Commissioner Kevin McAleenan announced on Sept. 11 the delay in the deployment of the E214 ACE capability to ensure FTZ industry readiness.
 
The delay of the rollout affects both the electronic Foreign-Trade Zone Admission (e214) and Manufacturer ID (MID) creation capabilities as they transition from the agency’s legacy Automated Commercial System (ACS) to the new Automated Commercial Environment (ACE) platform.
 
The later deployment received a boost from The National Association of Foreign-Trade Zones (NAFTZ), which had summited a letter to CBP requested for a later date to correct problems detected in certification testing. In a Sept. 7 letter,
 
NAFTZ President Erik Autor wrote that a number of foreign-trade zone operators have experienced “a disturbing number of systemic problems and new issues that need to be addressed before the rollout of e214 in ACE.”
 
In addition, CBP personally invited Integration Point to begin transition testing six weeks ago, according to Elizabeth Connell, Integration Point Vice President-Product Management. “We were personally invited by CBP because they knew we have a deep understanding of the complexities of the FTZ process, and that we have a long history of successfully testing zone transitions to ACE, she said. “They trust us to identify all issues and to test all possible scenarios due to our extensive client base that span all industries and complexities.”
 
Connell added that Integration Point has been working closely with CBP nights, weekends and holidays helping test the admissions process.
 
CBP announced in CMCS #17-000556 that they would still be deploying “ACE Deployment G, Release 2 – Non-ABI Entry Summary/Lineless, Duty Deferral and Importer Security Filing beginning Sept. 16. Deployment G, Release 2 will deploy during an extended system outage from Saturday, Sept. 16, 8 p.m. ET until Sunday, Sept. 17 at 7 a.m. ET, September 17. Integration Point will be updating the ISF production system during this time as well to align with the CBP G2 deployment.
 
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.
 
Integration Point Automated Broker Interface (ABI) software provides importers with the tools to connect and share data electronically with CBP in ACE, while having the ability to track the entire process, leading to stronger compliance and control, resulting in overall cost savings. Integration Point is also the industry leader for US Foreign Trade Zone (FTZ) Management software and has the largest team for implementation and support of zone automation.
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(Source:
Reuters, 14 Sep 2017)
 
At Southampton docks, a top British port for trade with countries outside the EU, the scene is one of frictionless international commerce. It’s a model that business leaders hope will also work well with Europe after Brexit, but fear it won’t.
 
Cranes lift containers smoothly on and off enormous ships berthed at the quayside while rows of new cars await shipment to destinations including the United States and Asia.
 
There is little sign of the customs border that Britain maintains with most of the world apart from European Union states, thanks to a long-refined system of goods declarations completed electronically as ships plow to and from the country.
 
Less than two percent of goods passing through Southampton, which lies on the south coast of England, are subject to physical checks by customs officials, according to its owner, Associated British Ports.
 
At the moment Britain has no such customs border with the EU, a free-trade area of 28 states, but it is likely to reimpose one when it leaves the bloc in March, 2019. If London and Brussels fail to strike a trade deal, each side will start imposing import duties on each other’s goods.
 
Few people believe the current system for non-EU trade can be replicated for EU goods without disruption at the seaports through which 95 percent of Britain’s international trade moves. That means industry’s wish for minimal extra red-tape, delays and costs after Brexit may not be granted.
 
The government estimates a new, upgraded electronic customs system – due to be introduced just two months before Brexit – will need to process 255 million customs declarations a year, up from 55 million now.
 
  “Is a new IT system going to be able to cope with a sudden massive surge in stuff going through? … It is a highly complex environment and the capacity for glitches is bound to be there,” said Guy Platten, Chief Executive of the UK Chamber of Shipping.
 
The EU is Britain’s largest trading partner, accounting for 44 percent of exports and 53 percent of imports in 2016.
 
Around 180,000 companies which now operate only within the EU face making customs declarations for the first time after Brexit. A study by the Institute for Government found that those declarations could mean a total additional cost of 4 billion to 9 billion pounds ($5 billion to $12 billion).
 
  “Costs will be passed on and it is going to impact on the consumer and on prices in the shops in the end,” Platten told Reuters.
 
JUST IN TIME
 
The government has proposed two options for a post-Brexit customs deal with the EU: a “highly streamlined” system using technology to create as frictionless a border as possible, and a new customs partnership removing the need for a customs border – an arrangement that would be particularly hard to negotiate.
 
The first would involve measures such as pre-arrival notifications linked to customs declarations and vehicle registrations so trucks do not have to stop at the border, as well as pre-approved “authorized economic operators” who are given faster clearance.
 
Shipping containers are stacked on a cargo ship in the dock at the ABP port in Southampton, Britain August 16, 2017.
Pre-authorization may work for goods on weeks-long sea voyages like many of those coming into Southampton, which handled international trade worth 71 billion pounds in 2014.
 
But the short length of journeys from continental Europe means there is far less time to process goods before they arrive. Ferries carrying trucks to Dover, Britain’s top port for EU trade, typically take only 90 minutes to arrive from France.
 
For “just-in-time” supply chains, where parts are delivered as they are needed in the production process, even a short delay would have an impact. Perishable goods, such as Dutch flowers or Spanish tomatoes, are particularly at risk.
 
Supermarket group Sainsbury’s (SBRY.L) has warned that food could be left rotting at the border if supply chains are disrupted by customs checks.
 
Finance minister Philip Hammond raised his concerns this week, saying trucks had to roll off ferries immediately and leave the Dover port, allowing the ship to reload and depart again promptly.
 
  “Anything that caused delay in vehicles exiting the port, delaying vehicles offloading, would cause significant disruption,” he told a parliamentary committee, adding that the government was looking at contingency arrangements for the event of no deal with the EU.
 
Even spot checks would mean firms could start having to use warehouses in case their goods are among those inspected, possibly adding significant costs to finished products.
 
Southampton owner ABP says it has space to accommodate customs checks at its ports around Britain. However, there are significant physical constraints elsewhere, particularly at Dover, which handled trade worth 69 billion pounds in 2014 and is hemmed in by white chalk cliffs.
 
Asked if the capacity of facilities such as warehousing at British ports is adequate, Hammond replied: “No, it is clearly not.”
 
Around 8,000 EU trucks a day pass through Dover, meaning more than 300 could be stopped if they are checked at a similar rate to non-EU imports — the government says around four percent are currently subject to customs checks at border entry points.
 
  “If they want to do their four percent, then they are going to find somewhere outside the port confines in order to do that,” said James Hookham, Deputy Chief Executive of the Freight Transport Association, which says one hour’s delay at a port adds 15,000 pounds of costs to the trucking industry.
 
The need to get infrastructure in place and train businesses in a new system means phasing the new regime in will be crucial to minimize disruption, said the Chamber of Shipping’s Platten.
 
  “To get it all implemented within the next 18 months is going to be almost impossible, so there has to be a long transition period to allow business and the supply chain to adjust to the new reality,” he said.
 
  “The nightmare is if nothing is agreed, nothing is done and we have this cut off on March 29, 2019.”
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Following are highlights of regulatory effective dates and deadlines and federal agency meetings coming up in the next week.
 
18 Sep:
  – deadline for comments to FTZ Board on production activity requests
  – deadline for comments to USTR on FTA effects on access to government procurement markets
  – meeting of Trade Finance Advisory Council
 
19 Sep:
 
20 Sep:
  – deadline for comments to USTR on China’s compliance with WTO commitments
  – deadline for comments to USDA on import/export information collections
  – deadline for comments to ITC on public interest issues in IPR probe of industrial automation systems
 
 
21 Sep:
  – deadline for comments to DOC on petition to ban imports of fish and fish products from Mexico
 
22 Sep:
  – deadline for comments to USTR on Russia’s compliance with WTO commitments
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COMMCOMMENTARY

COMM_a215
. Avant Provides Searchable CCL

 
Avant International has made available a free copy of their Searchable CCL, a 665-page document reprinting the Commerce Control List.
 
  – Easy searching of the entire Commerce Control List without having to open a separate file for each category
  – A more legible format than the e-CFR
  – Includes the alphabetical index to the CCL
  – Includes EAR Part 772 “Definitions of Terms”
 
This new version is up to date as of September 14, 2017 and includes all the changes to the CCL from the Wassenaar Arrangement 2016 Plenary including:
 
  – Revisions to 50 Export Control Classification Numbers (ECCNs)
  – Raising the Adjusted Peak Performance (APP) level of control 
for 4A003.b High Performance Computers from 12.5 to 16 weighted TeraFLOPS (WT), 
effective 25 Sep 2017
  – Restructuring of Cat. 5, Part 2
 
Download the Searchable CCL here

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* Authors: Lisa C. Mays, Esq., lmays@sheppardmullin.com; and Reid Whitten, Esq., rwhitten@sheppardmullin.com. Both of Sheppard, Mullin, Richter & Hampton LLP, Wash DC.
 
In our blog shop, most of the news we scan is the nerdy minutia of regulatory nuance. But the other day, we found big news, a real scoop. The ITAR will be rewritten to remove guns and ammunition from its control.
 
Yes, you read that correctly, a plan has been proposed within the State Department to migrate the first three categories of the International Traffic in Arms Regulations (ITAR) to the control of the Export Administration Regulations within the coming year. Whether the State Department will go so far as to rename ITAR Part 121 the United States Munitions List (USML), the “United States List” remains to be seen.
 
The Proposed Changes
 
The proposed amendment to the ITAR appeared in notes on the Defense Trade Advisory Group (DTAG) meeting on Friday, September 8. For those of us who don’t live and breathe the ITAR, DTAG is the State Department’s working group that provides the Bureau of Political-Military Affairs with a formal channel to consult the private sector on all things concerning munitions exports.
 
According to those notes, USML Categories I, II, and III are expected to move from the USML to the EAR’s Commerce Control List (CCL) in 2018. Those categories are as follows:
 
  – Category I – Firearms, Close Assault Weapons and Combat Shotguns;
  – Category II – Guns and Armament; and
  – Category III – Ammunition/Ordnance
 
Who Will Benefit from the Reform?
 
U.S. gun and ammunition manufacturers will have an increased capacity to reach a larger customer base without as many restrictions on the export of their products. U.S. firearm manufacturers and exporters will likely see a reduction in export compliance obligations. Arms sales from the United States will likely grow, and the United States will likely continue to hold and expand its share of the international arms market.
 
As just one example of the reduced regulatory burden, firearm, ammunition, and ordinance manufacturers would likely not have to register as ITAR manufacturers or exporters. That registration requires yearly renewal and the base cost of registration is more than two thousand dollars. Thereafter, those exporters would not need to apply for the more difficult to obtain ITAR export licenses in order to sell their products for foreign countries.
 
What Restrictions Will Limit the Export of Guns and Ammunition?
 
The change in control does not equate to a free for all. We expect that many of the former Category I, II, and III items will migrate to the “600 series” of the CCL. Those 600-series items generally require licenses for exports or reexports, except when the item is exported or reexported to Canada or, when operating under license exception, any of the countries party to the Strategic Trade Authorization (STA). [FN/1]
 
Where a license is required, exporters will still need to apply for a license through the Simplified Network Application Process Redesign (SNAP-R) maintained by the Department of Commerce Bureau of Industry and Security. Customs will also continue to require exporters to file an Electronic Export Information (EEI) submission.
 
Your Approach
 
As always, your approach depends on your risk tolerance.
 
If your company is the quick draw type, it may choose to wait until the rules finalizing the migration are published to take action.
 
If your company takes time to sight, aim, and control its breathing before firing, you may choose to analyze your company’s controls and create logistics plans for exporting Category I, II, or III under the new regulations. It may be worth taking a close look at your current company procedures and operations to anticipate how you can adjust your business operations to adapt to the changes. It will be important to note, however, that the U.S. firearms industry is also regulated under other federal and state firearm laws.
 
Whichever path you may choose, we recommend not discounting the benefits of taking a targeted approach to review and revise your company procedures and operations as appropriate.
 
——–

  [FN/1] These countries include the following: Argentina, Australia, Austria, Belgium, Bulgaria, Canada, Croatia, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Japan, Latvia, Lithuania, Luxembourg, The Netherlands, New Zealand, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, South Korea, Spain, Sweden, Switzerland,
 Turkey, and the United Kingdom.

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* Authors: Mary Lehner, Esq., mary.lehner@freshfields.com; Shawn Cooley, Esq., shawn.cooley@freshfields.com; and Christine Laciak, Esq., christine.laciak@freshfields.com. All of Freshfields, Bruckhaus & Deringer LLP.
 
Accepting an apparent unanimous recommendation from the Committee on Foreign Investment in the United States (CFIUS or the Committee), President Trump issued an Executive Order dated September 13, 2017 (Order), prohibiting on national security grounds the proposed acquisition of Oregon-based Lattice Semiconductor Corporation (Lattice) by Canyon Bridge Fund I, LP (Canyon Bridge). The Order directs the parties to take all steps necessary to fully and permanently abandon the proposed acquisition of Lattice within 30 days, and prohibits Canyon Bridge and any of its related entities including its shareholders from entering into any substantially equivalent transaction.
 
Canyon Bridge Transaction
 
Canyon Bridge is a Chinese-backed private equity fund with the limited partner Yitai Capital Limited, a subsidiary of China Venture Capital Fund Corporation Limited. Lattice is a publicly traded US company that manufactures programmable logic devices – general purpose semiconductors end users can program to provide functionality similar to microchips, which are designed and produced for specific applications. Lattice and Canyon Bridge submitted a notification to CFIUS under a regulatory process that permits a foreign investor to seek a determination that the US government will not seek to block on national security grounds its proposed acquisition of a US business.
 
CFIUS and the President instead concluded that the transaction posed an unacceptable risk to the national security of the United States that could not be resolved through risk mitigation terms. Treasury Secretary Steven Mnuchin, as the chair of CFIUS, explained that “the national security risk posed by the transaction relates to, among other things, the potential transfer of intellectual property to the foreign acquirer, the Chinese government’s role in supporting this transaction, the importance of semiconductor supply chain integrity to the US government, and the use of Lattice products by the US government.”
 
Despite Lattice’s plea that the transaction was good for US employees in light of Canyon Bridge’s pledge to double Lattice’s US workforce, Secretary Mnuchin reiterated “the CFIUS process focuses exclusively on identifying and addressing national security concerns. This focused mandate reinforces our commitment to welcoming foreign investment, while at the same time reinforcing our commitment to protecting national security.”
 
Neither Secretary Mnuchin’s statement nor the Order provide details regarding the specific Lattice intellectual property or products that raised concern, albeit Lattice’s Products Reliability Report states that its products are used in military systems and that it employs certain military standard testing methods related to temperature and other characteristics.
 
This is only the fourth time a US President has prohibited a proposed investment by a foreign person, and the first time for President Trump, under the now almost 30-year-old authority of the Exon-Florio amendment to the Defense Product Act. Chinese investment was prohibited in all four cases, and this Order comes less than a year after President Obama in December 2016 blocked another proposed Chinese investment. [FN/1] The Order issued from President Trump because while CFIUS has the authority to review transactions and make a recommendation, only the President has the authority to block a transaction on national security grounds.
 
Increasingly Unpredictable CFIUS Process
 
Under the relevant statute, CFIUS has no more than 75 calendar days (or approximately 2.5 months) from when it accepts a notification as complete to finish its review. But after the parties announced the Canyon Bridge transaction in November 2016, CFIUS spent eight months reviewing it to no avail. CFIUS can consent to a party request to withdraw and refile a notification, thereby restarting the clock, which Canyon Bridge did multiple times. Historically CFIUS would grant such a request only when a resolution seemed viable but unable to be finalized within the statutory deadline.
 
In this case, however, despite CFIUS permitting the parties to withdraw and refile their notification multiple times, Canyon Bridge was unable to find a path to resolve the Committee’s concerns. And Canyon Bridge is not alone. CFIUS is not accepting proposed mitigation solutions, but nonetheless allowing the parties to withdraw and refile multiple times, in several other similarly situated transactions. While the majority of these cases involve Chinese acquirers, some involve Canadian and European acquirers.
 
This foreign investment purgatory is a symptom of a broader problem: the rapidly increasing uncertainty, both in terms of predictability of timing and result, of the CFIUS process. Predictability is the cornerstone of the voluntary CFIUS process. If CFIUS becomes more arbitrary and harder to predict with any degree of confidence, parties necessarily will have to recalculate the relative cost-benefit analysis of submitting a voluntary filing.
 
Historically, parties could reasonably predict how long it would take to complete a CFIUS review and identify most of the potential areas of concern. CFIUS on average would: accept notifications as complete and start the review clock within five days of submission; clear more than 50 percent of its docket within the initial 30 day review period; conclude action on 99 percent of all other cases within the initial 75 days, including the 10 percent of cases that required risk mitigation; and refer less than one case per year to the President. This predictability allowed foreign acquirers to confidently conclude that the benefits of voluntarily filing with CFIUS (e.g. a safe harbor against future adverse action by the Committee or President) were more than offset by burdens of filing.
 
Over the past year, however, this equation has changed, in that CFIUS is now: (i) taking up to six weeks to accept a filing as complete; (ii) clearing only 20 percent of its docket within 30 days, meaning that CFIUS is now routinely sending relatively benign cases into the longer investigation phase; and (iii) threatening to send more transactions to the President unless parties agree to withdraw and refile.
 
It is also becoming more difficult for parties to predict where CFIUS will raise concerns. If parties cannot confidently identify areas of potential concern for CFIUS, they cannot properly assess the risks of pursuing proposed investment. For example, CFIUS increasingly is voicing concerns about the protection of personally identifiable information (PII) of US citizens. CFIUS has not defined what constitutes PII or explained how PII protection, or lack thereof, poses a national security concern. Nor has CFIUS issued any public guidance on how parties should determine if their particular data sets could raise national security concerns. Similarly, CFIUS is raising concerns based on the risk posed by technology transfers to countries of potential concern even where the technology at issue is neither classified nor prohibited from export to the acquiring country. When CFIUS takes action to prevent such transfers, which Congress currently is considering codifying through CFIUS reform initiatives, it effectively is creating a shadow export control regime that allows CFIUS – without any public notice, judicial review or direct contemporaneous congressional oversight – to prohibit unilaterally the export of any target company’s products, services, intellectual property and/or know-how. While CFIUS always had the authority to do this, trade-focused members of the multi-agency Committee historically compelled restraint by insisting that the existing export control regimes were both adequate and sufficient to address these types of concerns.
 
Another complicating factor is the growing risk aversion within CFIUS. CFIUS was never designed to eliminate risk; it was designed to manage and mitigate national security risk to an acceptable level. This is why CFIUS must certify that each cleared case poses no unresolved national security concerns. The governing statute specifically contemplates that CFIUS will seek to resolve any concerns via risk reducing mitigation. What constitutes an adequate resolution of an identified national security concern is an inherently subjective standard, and there are always latent risks in such a system: will the parties comply with the mitigation; will the enforcement mechanisms catch material acts of noncompliance; and will the penalty provision provide adequate incentives to comply? These questions are usually posed to the Presidentially-appointed and Senate-confirmed Assistant Secretaries of each agency, who provide the first-line politically accountable management of the CFIUS process; and currently all such positions are vacant. As a result, CFIUS must get clearances either from senior career officials who are acting in a capacity outside of their normal area of expertise or from their respective Deputy Secretaries. It is not surprising that acting career officials or Deputy Secretaries would be more risk averse than a dedicated Assistant Secretary with the experience associated with the day-to-day management of the CFIUS process. Under the current environment, CFIUS appears less willing to accept any latent risk by entering novel mitigation to resolve concerns and is therefore likely to push more cases to the President if parties, like Canyon Bridge, refuse to abandon the transaction voluntarily.
 
Conclusion
 
While Canyon Bridge is the first transaction the Trump Administration has blocked by Executive Order, other parties have abandoned their transactions this year after prolonged review when no resolution could be reached. Given the number of similarly situated pending transactions, others are expected to fail either voluntarily or not, perhaps reaching a record of transactions frustrated by CFIUS.
 
——–
  [FN/1] Former President Obama previously blocked a proposed acquisition of Aixtron SE, a company also involved in the semiconductor industry, by a Chinese-owned German company in 2016, and a proposed acquisition of certain Oregon wind farms by Chinese-controlled Ralls Corporation in 2012. Former President George H.W. Bush had prohibited an acquisition by China National Aero-Technology and Export Corp. of MAMCO Manufacturing, Inc., an aerospace manufacturer, in 1990.
* * * * * * * * * * * * * * * * * * * *

TEEX/IM TRAINING EVENTS & CONFERENCES

 
* What: ICPA Annual Asia Conferences 2017
* When: Singapore: 5-7 Nov 2017; Shanghai: 9-10 Nov 2017.
* Where:
  – Singapore: Grand Copthorne, Singapore. Book
here
.
  – Shanghai: Four Seasons Hotel Shanghai. Book
here
.
* Sponsor: International Compliance Professionals Association (ICPA).
* Speakers: Large number of experienced, knowledgeable professionals (see agendas).
* Agenda:
  – Singapore: View
here
.
  – Shanghai: View
here
.
* Register:
  – Singapore:
SGD
here; or USD
here
.
  – Shanghai: RMB
here
; or USD
here
.
* * * * * * * * * * * * * * * * * * * *

TE_a219
. 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:

 

* Sep 18-19: Huntsville, AL; ”
NAITA Export Control Update;” North American International Trade Association

* 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 21-22; Brisbane, Australia; Defense Export Controls Outreach Program; Australian Department of Defense

* Sep 20-22: Houston, TX; ”
Advanced Topics in Customs Compliance Conference;” Deleon Trade LLC
* Sep 25-27: Wash DC; ”
1st Advanced Forum on Customs and Trade Enforcement, Washington, DC;” American Conference Institute
# Sep 26: Woodbridge, VA;
SIA 2017 Annual Golf Outing; Society for International Affairs (SIA)

* Sep 26: Cupertino, CA; ”
11th CompTIA Global Trade Compliance Best Practices Conference;” CompTIA; OR contact
Ken Montgomery, 202-682-4433
* Sep 26: Webinar; “[Monthly Update] The Latest in Administration and Congressional Trade Actions
;” Sandler, Travis, & Rosenberg
* 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: Webinar; “Understanding the European Union’s AEO Program
;” Sandler, Travis, & Rosenberg

*
 Sep 27-28: Atlanta, GA;
 
2017 Trade Compliance and Policy Seminar
; C.H. Robinson

* Sep 27-28: Rome, Italy; “Defence Exports 2017 ;” SMi 
* Sep 28: Webinar; “Part II: ‘Specially Designed:’ Increase Your Accuracy and Decrease Burdensome Controls;” ECTI; 540-433-3977 

* 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: Itasca, IL; ”
Understanding Incoterms;” Mohawk Global Trade Advisors; Adrienne Graddy; 
agraddy@mohawkglobalta.com
; 630-994-3036

*
 Oct 4: Kansas City, MO;
 
2017 Trade Compliance and Policy Seminar
; C.H. Robinson

* Oct 4: Toronto, Canada; ”
2nd National Institute on US-Canadian Securities Litigation;” American Bar Association
* Oct 4: Webinar; “
Exports – New Incentives, Old Rules
;” 
Sandler, Travis & Rosenberg, P.A.; 
webinarorganizers@strtrade.com 

* Oct 4-5:  Miramar (Miami/Fort Lauderdale), FL; ”
9th Maritime Logistics Training Course
“; Contact ABS Consulting, phone:
 
(954) 218-5285


* 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 10-12: Dallas, TX; “
‘Partnering for Compliance™’ West Export/Import Control Training and Education Program
;” Partnering for Compliance
 


*
 Oct 10: Rotterdam, the Netherlands; “
Awareness Training Export Control, Dual-Use, and Sanctions
” day I/3 [in Dutch]; Fenex 

*
Oct 10 & 24: Webinar; “Two Part Webinar Series: Harmonized System Classifications: Learning By Doing;” ECTI; 540-433-3977

* 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 11-12: Detroit, MI;
 
2017 Trade Compliance and Policy Seminar
; C.H. Robinson

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

*
Oct 11: Webinar; “Encryption Export Controls 2017 Update;” ECTI; 540-433-3977

* Oct 12: Brussels, Belgium; 
Compliance in Export Control of Dual-Use Items; EU Federal Ministry for Economic Affairs and Energy


* Oct 12-13: Boston, MA; “Automated Export System Compliance Seminar and Workshop;” Commerce/Census, Commerce/BIS, DHS/CBP, State/DDTC, Treasury 

*
Oct 12: Webinar; “OFAC Enforcement Trends: Exporters in the Crosshairs;” ECTI; 540-433-3977

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

* Oct 16: Toronto; ”
3rd Canadian Forum on Economic Sanctions Compliance and Enforcement, Toronto;” American Conference Institute and Canadian Institute

*
Oct 17 & 26: Webinar; “Two Part Webinar Series: EAR License Exceptions: Learning By Doing;” ECTI; 540-433-3977

*
 Oct 19: Boston, MA;
 
2017 Trade Compliance and Policy Seminar
; C.H. Robinson

* 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 24-25: Cleveland, OH;
 
2017 Trade Compliance and Policy Seminar
; C.H. Robinson

*
 Oct 24: Rotterdam, the Netherlands; “
Awareness Training Export Control, Dual-Use, and Sanctions
” day 2/3 [in Dutch]; Fenex 
# Oct 25-26: Tysons Corner, VA;
ITAR Fundamentals; FD Associates

* 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 2: Webinar; “DIY Encryption Classification 2017 Edition;” ECTI; 540-433-3977

* 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 9: Tysons Corner, VA; ITAR for the Empowered Official; FD Associates

* 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

* Nov 29: Wash DC; ”
4th U.S. Customs Compliance Boot Camp, Washington, DC;” American Conference Institute

* Dec 4: NYC; ”
8th Annual New York Forum on Economic Sanctions, New York“, American Conference Institute

 * 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
                                                2018
 

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

*
Jan 29-30: Toronto, Canada;
7th Industry Forum on Export and Re-Export Compliance for Canadian Operations;”
American Conference Institute

* 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
* Mar 6-8: Orlando, FL; “
‘Partnering for Compliance’ East Export/Import Control Training and Education Program
;” Partnering for Compliance
* Mar 9: Dallas, TX; “
Customs/Import Boot Camp
;” Partnering for Compliance

* 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

* May 6-8: Toronto, Canada;
2018 ICPA Canadian Conference

ENEDITOR’S NOTES

EN_a120
. Bartlett’s Unfamiliar Quotations

(Source: Editor)

 
* Agatha Christie (Dame Agatha Mary Clarissa Christie, Lady Mallowan, DBE; née Miller; 15 Sep 1890 – 12 Jan 1976; was an English crime novelist, short story writer and playwright. She is best known for her 66 detective novels and 14 short story collections, particularly those revolving around her fictional

detectives Hercule Poirot and Miss Marple. 
Guinness World Records 
lists Christie as the best-selling novelist of all time. Her novels have sold roughly 2 billion copies.
)

  – “Never do anything yourself that others can do for you.”
 
* Francois de La Rochefoucauld (François VI, Duc de La Rochefoucauld, Prince de Marcillac; 15 Sep 1613 – 17 Mar 1680; was a noted French author of maxims and memoirs. It is said that his world-view was clear-eyed and urbane, and that he neither condemned human conduct nor sentimentally celebrated it.)
  – “A true friend is the greatest of all blessings, and that which we take the least care of all to acquire.”
  – “Old people love to give good advice; it compensates them for their inability to set a bad example.”
 
Friday Funnies:
Q. What was the last thing Jesus said at the Last Supper?
A. “Okay, anyone who wants to be in the picture get on this side of the table.”
  – Doug Brisard, Clinton, IL
 
Q. Where do milkshakes come from?
A. Nervous cows.
  – Doris Ludicke, Ocean Pines, MD

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

EN_a221. 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: 15 Aug 2017: 
82 FR 38764-38819: Wassenaar Arrangement 2016 Plenary Agreements Implementation
 

  

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: Last Amendment: 30 Aug 2017: 82 FR 41172-41173: Temporary Modification of Category XI of the United States Munitions List
  – The only available fully updated copy (latest edition: 12 Sep 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_a322
. 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.

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

* 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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