;

17-1201 Friday “Daily Bugle”

17-1201 Friday “Daily Bugle”

Friday, 1 December 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

[No items of interest noted today.] 

  1. Items Scheduled for Publication in Future Federal Register Editions 
  2. Commerce/BIS: (No new postings.)
  3. DHS/CBP Announces ACE Production Outage on 2-3 Dec
  4. DHS/CBP Updates ACE Documentation for Extract Reference Query (FQ)
  5. State/DDTC: (No new postings.)
  6. Treasury/OFAC Releases 2016 Terrorist Assets Report
  7. EU Amends Restrictive Measures Concerning Ukraine and Russia
  1. Defense News: “Pentagon Decides Against Ban on Use of Certain Cluster Bombs”
  2. Reuters: “Turkish Gold Trader Implicates Erdogan in Iran Money Laundering”
  3. ST&R Trade Report: “Dates and Deadlines: Routed Exports, GSP, Defense Trade, ACE Transition, Solar Cells”
  1. R.C Thomsen II, A.D. Paytas, M.M. Shomali: “Changes to Export Controls in November 2017”
  2. S.T. Boyce, M.P. Gurdak & C. O’Dorr: “Revised U.S. Regulations Support Cuba’s Private Sector, but Travel Restrictions Remain”
  3. R.C. Burns: “OFAC Fines Foreign Company for Following Applicable Foreign Law”
  1. List of Approaching Events – 30 New Events Listed
  1. Bartlett’s Unfamiliar Quotations 
  2. Are Your Copies of Regulations Up to Date? Latest Changes: ATF (15 Jan 2016), Customs (28 Sep 2017), DOD/NISPOM (18 May 2016), EAR (9 Nov 2017), FACR/OFAC (13 Nov 2017), FTR (20 Sep 2017), HTSUS (20 Oct 2017), ITAR (30 Aug 2017)
  3. Weekly Highlights of the Daily Bugle Top Stories 

EXIMITEMS FROM TODAY’S FEDERAL REGISTER

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

OGSOTHER GOVERNMENT SOURCES

OGS_a11
. Items Scheduled for Publication in Future Federal Register Editions
 

(Source:
Federal Register)
 

* Commerce/BIS; NOTICES; Denials of Export Privileges: Mahan Airways [Included in the Daily Bugle of 28 Nov 2017; Publication Date: 4 Dec 2017.]
 
* Treasury/OFAC; NOTICES; Blocking or Unblocking of Persons and Properties [Publication Dates: 4 Dec 2017.] 

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

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

OGS_a3
3.

DHS/CBP Announces ACE Production Outage on 2-3 Dec


(Source:
CSMS# 17-000747, 1 Dec 2017.)
 

There will be an ACE PRODUCTION Outage Saturday evening, December 2, 2017 from 2200 ET to 0400 ET Sunday, December 3, 2017 for ACE infrastructure maintenance:

  – Technical/maintenance work for ABI header validations, Importer Security Filing(ISF), CQ Query (ACE Cargo/Manifest/Entry Release Query), and Quota Query.

CORRECTION: MID (Manufacturer ID) functionality will go-live in ACE Production on December 9th. Please ignore previous CSMS# 17-000746‘s mention of the MID items to be deployed.

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

OGS_a4
4. DHS/CBP Updates ACE Documentation for Extract Reference Query (FQ)

(Source: CSMS #17-000748, 1 Dec 2017.)
 
An update to the ACE Extract Reference Query (message transaction “FQ”) CATAIR chapter has been posted to CBP.gov. The updated DRAFT CATAIR Chapter is located here.

Updates include the following information:

  – Added Error Appendix to end of implementation guide document.

Please refer to the CATAIR Table of Changes for specific information.

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

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

OGS_a6
6.

Treasury/OFAC Releases 2016 Terrorist Assets Report

(Source: 
Treasury/OFAC, 1 Dec 2017.)
 
The Office of Foreign Assets Control has released its 2016 Terrorist Assets Report. The report is available
here

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

OGS_a7
7.

EU Amends Restrictive Measures Concerning Ukraine and Russia

 
Regulations 
* Council Regulation (EU) 2017/2212 of 30 November 2017 amending Regulation (EU) No 833/2014 concerning restrictive measures in view of Russia’s actions destabilizing the situation in Ukraine
 
Decisions
* Council Decision (CFSP) 2017/2214 of 30 November 2017 amending Decision 2014/512/CFSP concerning restrictive measures in view of Russia’s actions destabilizing the situation in Ukraine. 

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

NWSNEWS

NWS_1
8.

Defense News: “Pentagon Decides Against Ban on Use of Certain Cluster Bombs”

(Source:
Defense News, 1 Dec 2017.) [Excerpts.]  
 
The Pentagon has put off indefinitely a planned ban on using certain cluster bombs, which release explosive submunitions, or bomblets. The U.S. military considers them a legitimate and important weapon, although critics say they kill indiscriminately and pose hazards to civilians.
 
A 2010 international treaty outlaws the use of cluster bombs, but the U.S. is not a signatory.
 
The George W. Bush administration declared in 2008 that after Jan. 1, 2019, the United States would continue its use of cluster bombs only if they met a performance standard of failing to detonate 1 percent or less of the time. That standard is important because armed and unexploded cluster munitions left on the battlefield pose a long-term hazard to civilians. …
 
The new policy drew immediate criticism. Mary Wareham, arms division director for Human Rights Watch, said there is no compelling reason for the use of cluster munitions.
 
  “The U.S. says it can’t produce ‘safe’ cluster munitions, so it has decided to keep using ‘unsafe’ ones,” she said. “We condemn this decision to reverse the long-held U.S. commitment not to use cluster munitions that fail more than 1 percent of the time, resulting in deadly unexploded sub-munitions.” Her organization is chair of the Cluster Munition Coalition, an international campaign seeking to eliminate cluster bombs.
 
A new Pentagon policy approved Thursday erases the 2019 deadline and asserts that the weapons are legitimate, not necessarily a humanitarian hazard, and important for wartime attacks on “area targets” like enemy troop formations. …
 
By law, the U.S. cannot provide cluster munitions to other countries unless they meet the 1 percent failure standard. 

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

NWS_a2
9.

Reuters: “Turkish Gold Trader Implicates Erdogan in Iran Money Laundering”

(Source:
Reuters, 1 Dec 2017.) [Excerpts.]
 
A Turkish-Iranian gold trader on Thursday told jurors in a New York federal court that Turkish President Recep Tayyip Erdogan authorized a transaction in a scheme to help Iran evade U.S. sanctions.
 
Reza Zarrab is cooperating with U.S. prosecutors in the criminal trial of a Turkish bank executive accused of helping to launder money for Iran. At the time of the alleged conspiracy, Erdogan was Turkey’s prime minister.
 
Zarrab said he had learned from Zafer Caglayan, who was Turkey’s economy minister, that Erdogan and then-treasury minister Ali Babacan had authorized two Turkish banks, Ziraat Bank and VakifBank, to move funds for Iran.
 
Both Ziraat and VakifBank denied taking part in the scheme.
 
Erdogan’s spokesman, and an adviser to Babacan could not immediately be contacted by Reuters. Erdogan said earlier on Thursday that Turkey did not violate U.S. sanctions, CNN Turk reported. A spokesman for Erdogan’s government has called the case a “plot against Turkey.”
 
The testimony came on the third day of the trial of Mehmet Hakan Atilla, an executive at Turkey’s state-owned Halkbank, who has pleaded not guilty in Manhattan federal court.
 
U.S. prosecutors have charged nine people in the case with conspiring to help Iran evade sanctions, although only Zarrab, 34, and Atilla, 47, have been arrested by U.S. authorities. … 

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

NWS_a3
10.

ST&R Trade Report: “Dates and Deadlines: Routed Exports, GSP, Defense Trade, ACE Transition, Solar Cells”

 
Following are highlights of regulatory effective dates and deadlines and federal agency meetings coming up in the next week.
 
  – 4 Dec: deadline for comments to FTZ Board on production authority requests 
  – 4 Dec: deadline for comments to FTC on proposed update to energy labeling requirements for some appliances
  – 5 Dec: deadline for comments to Census on routed export transactions
  – 5 Dec: deadline for comments to CPSC on request for safety standard for high-powered magnet sets
  – 5 Dec: deadline for requesting CNL waivers under GSP
  – 6 Dec: USTR hearing on potential import restrictions on solar cells
  – 6 Dec: deadline for comments on FMC’s draft strategic plan for 2018-2022
  – 7 Dec: meeting of State Department’s Defense Trade Advisory Group
  – 9 Dec: effective date of transition of daily and monthly statements to ACE

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

COMMCOMMENTARY

COMM_a111.

R.C Thomsen II, A.D. Paytas, M.M. Shomali: “Changes to Export Controls in November 2017”

(Source: Thomsen & Burke LLP, 1 Dec 2017.) [Excerpts.]
 
* Authors: Roszel C. Thomsen II, Esq.,
roz@t-b.com
; Antoinette D. Paytas, Esq.,
toni@t-b.com
; and Maher M. Shomali, Esq.,
maher@t-b.com
. All of Thomsen & Burke LLP.
 
This memo summarizes the regulatory, legislative, and enforcement developments with respect to U.S. and multilateral export controls during the month of November 2017. …
 
Regulatory Changes
 
Changes to the Cuba Restrictions
 
As we notified you earlier this
month
, the U.S. government published changes to the export controls and sanctions on Cuba. These changes are made pursuant to the National Security Presidential Memorandum on Strengthening the Policy of the United States Toward Cuba (NSPM) and both loosen and tighten the trade restrictions.
 
One noteworthy loosening of the restrictions targets License Exception SCP (Support for the Cuban People) at 15 CFR 740.21. Previously, paragraph (b) of this license exception authorized exports to Cuba of items classified as EAR99 or subject only to Antiterrorism (AT) controls if the items (1) were of a certain type (e.g., building materials and tools) and going to private sector entities or (2) were going to private individuals. Under the new rule, there is no restriction on the types of items going to private sector entities provided the items are EAR99 or subject only to AT controls (except for medicines, medical devices, and agricultural commodities).
 
Therefore, many items can now be exported to private sector entities in Cuba under this license exception. The covered items include, for example, hardware and software products classified as mass-market encryption items under ECCNs 5A992/5D992 and networking equipment classified under ECCN 5A991.
 
Before using License Exception SCP, please note that there are some limitations. The items cannot primarily generate revenue for the government of Cuba or contribute to the operation of the Cuban government, including through the construction or renovation of state-owned buildings. There are also restricted parties in Cuba that were named today. Please review these limitations carefully before engaging in any activity, and be mindful of any activity incident to an export that may itself require a license (e.g., financial transactions, travel, interactions with government officials, etc.)
 
Aside from the changes to License Exception SCP noted above, there were several other regulatory changes, including:
 
  – A BIS policy of denial for the export or reexport of items destined to the Cuban military, police, intelligence, or security services
  – Publication of new restricted parties in Cuba, including the list of Cuban government officials ineligible to receive items exported under License Exceptions GFT, CCD, and SCP
 
Web Links:
  –
OFAC FAQs
 
Clarifications to the EAR for the use of License Exceptions GOV and STA
 
BIS published a final rule this month making clarifications to the Export Administration Regulations to provide guidance based on existing agency understanding and practice on the use of two license exceptions. Specifically, this final rule makes three clarifications to License Exception Governments, International Organizations, International Inspections under the Chemical Weapons Convention, and the International Space Station (GOV) and adds five notes, along with making other minor clarifications, to License Exception Strategic Trade Authorization (STA). These revisions respond to questions BIS has received about the use of these two EAR license exceptions and provide the general public answers to frequently asked questions based on existing agency interpretive practice. Therefore, the clarifications in this final rule do not change the EAR requirements for the use of the license exceptions but are intended to assist exporters new to the EAR.
 
This final rule revises part 740 of the EAR by clarifying two license exceptions based on existing agency understanding and practice. To provide the general public with guidance on using these license exceptions, this final rule makes three clarifications to License Exception Governments, International Organizations, International Inspections under the Chemical Weapons Convention, and the International Space Station (GOV) and adds five notes, along with making other minor clarifications, to License Exception Strategic Trade Authorization (STA). These changes are described below under sections: (A) Clarifications for License Exception GOV and (B) Clarifications for License Exception STA.
 
With these revisions, BIS is not changing the EAR requirements for the use of these license exceptions. Instead, the agency seeks to provide sufficient guidance within the EAR to answer questions the agency frequently receives from the public as to the application of the two license exceptions. These clarifications should be particularly helpful to exporters who are new to the EAR, including exporters of items that have recently moved to the EAR from the International Traffic in Arms Regulations (ITAR) as a result of the United States Munitions List to the Commerce Control List review process. …
 
Treasury/OFAC Issues Ukraine-/Russia-Related General License 1B, Releases Updated and New FAQs
 
OFAC issued Ukraine-/Russia-related
General License 1B
and is publishing
updated Ukraine-/Russia-related FAQs
and
one new Ukraine-/Russia-related FAQ
. These changes relate to the amended Ukraine-/Russia-related Directives 1 and 2 that were issued on September 29, 2017 in accordance with Title II of the Countering America’s Adversaries Through Sanctions Act of 2017 (CAATSA). Certain CAATSA-related prohibitions in amended Directives 1 and 2 had a delayed effective date of November 28, 2017. In order to account for the fact that the CAATSA-related prohibitions in amended Directives 1 and 2 have now come into effect, OFAC is issuing General License 1B to address the decrease in the maturity dates for Directive 1 from 30 days to 14 days, and the decrease in the maturity dates for Directive 2 from 90 days to 60 days; in the case of both directives, these new prohibitions relate to debt issued on or after November 28, 2017. OFAC also published updated Ukraine-/Russia-related FAQs and one new FAQ.
 
Removal of Côte d’Ivoire Sanctions Regulations
 
OFAC has also published a final rule this month removing from the Code of Federal Regulations the Côte d’Ivoire Sanctions Regulations as a result of the termination of the national emergency on which the regulations were based. On February 7, 2006, the President issued Executive Order 13396, “Blocking Property of Certain Persons Contributing to the Conflict in Côte d’Ivoire” (E.O. 13396), in which the President declared a national emergency to deal with the unusual and extraordinary threat to the national security and foreign policy of the United States posed by the situation in or in relation to Côte d’Ivoire. That situation, which had been addressed by the United Nations Security Council in Resolution 1572 of November 15, 2004, and subsequent resolutions, had resulted in the massacre of large numbers of civilians, widespread human rights abuses, significant political violence and unrest, and attacks against international peacekeeping forces leading to fatalities. E.O. 13396 blocked all property and interests in property of the persons listed in the Annex to E.O. 13396 and any person determined to meet one or more of the criteria set out in E.O. 13396.
 
On April 13, 2009, OFAC issued the Persons Contributing to the Conflict in Côte d’Ivoire Sanctions Regulations, 31 CFR part 543 (the “Regulations”), as a final rule to implement E.O. 13396 (74 FR 16763, April 13, 2009). On July 21, 2009, OFAC issued an amendment to the Regulations to change the heading of the Regulations to the Côte d’Ivoire Sanctions Regulations (74 FR 35802, July 21, 2009). OFAC also amended the Regulations on February 8, 2012, to add a definition of a term used in the Regulations (77 FR 6463, Feb. 8, 2012).
 
On September 14, 2016, the President issued Executive Order 13739, “Termination of Emergency With Respect to the Situation in or in Relation to Côte d’Ivoire” (E.O. 13739). In E.O. 13739, the President found that the situation that gave rise to the declaration of a national emergency in E.O. 13396 with respect to the situation in or in relation to Côte d’Ivoire had been significantly altered by the progress achieved in the stabilization of Côte d’Ivoire, including the successful conduct of the October 2015 presidential election, progress on the management of arms and related materiel, and the combatting of illicit trafficking in natural resources. Accordingly, and in view of the removal of multilateral sanctions by the United Nations Security Council in Resolution 2283, the President terminated the national emergency and revoked E.O. 13396.   Therefore, OFAC is removing the Regulations from the Code of Federal Regulations. Pursuant to section 202 of the National Emergencies Act (50 U.S.C. 1622) and section 1 of E.O. 13739, termination of the national emergency declared in E.O. 13396 shall not affect any action taken or proceeding pending and not fully concluded or determined as of 8:00 a.m. eastern daylight time on September 14, 2016 (the effective date of E.O. 13739), any action or proceeding based on any act committed prior to the effective date, or any rights or duties that matured or penalties that were incurred prior to the effective date.
 
 
The Office of Space Commerce and the FAA Office of Commercial Space Transportation published the second edition of their Introduction to U.S. Export Controls for the Commercial Space Industry. The guidebook provides basic information to help commercial space organizations, especially emerging entrepreneurial firms, considering business in the international market. It is intended to serve as a starting point in the preparation for the export control process.
 
The publication offers plain language explanations of:
 
  – Satellite export controls
  – Export control reform
  – How the control lists work
  – How to apply for a license or use a license exemption and
  – Ensuring compliance after export authorization.
 
The full guidebook can be downloaded as a PDF from the Office of Space Commerce 
website
.
 
 
The U.S. Census Bureau published the following blog this month as a guide for the U.S. authorized agent and U.S. Principal Party in Interest in a routed export transaction.
 
Routed export transactions always seem to be a hot topic. We receive numerous questions via our call center, webinars and seminars as companies look to better understand their roles and responsibilities to remain compliant.
 
The Foreign Trade Regulations (FTRs) define a routed export transaction as a transaction in which the Foreign Principal Party in Interest (FPPI) authorizes a U.S. agent to facilitate export of items from the United States on its behalf, and prepare and file the Electronic Export Information (EEI). In this type of transaction, the FPPI is controlling the movement of the goods.
 
Advice for ALL Parties in a Routed Export Transaction:
 
  – Communication. Make sure communication is clarified and understood between all parties participating in the transaction.
  – Documentation. Keep all documentation, such as emails, invoices and phone calls on all export transactions for five years from the date of export.
  – Appropriate authorization. Obtain a Power of Attorney (POA) or written authorization from the FPPI. The POA or written authorization should not be provided by the U.S. Principal Party in Interest (USPPI) in a routed export transaction.
 
Advice for the USPPI in a Routed Export Transaction:
 
  – If possible, request to file the EEI:
  – If filing, obtain a POA or written authorization from the FPPI before filing the EEI.
  – If the FPPI authorizes a U.S. agent to file the EEI:
  – Provide the data elements listed in section 30.3(e)(1)(i) through (xii) of the FTR to the U.S. authorized agent.
  – Request a copy of the data elements you provided to the U.S. authorized agent filed in the Automated Commercial Environment (ACE) as well as request the Internal Transaction Number (ITN), date of export and filer name.
  – Request a copy of the authorized agent’s POA or written authorization from the FPPI.
  – Sign up for ACE Export Reports. The USPPI can access ACE Report 203 for routed transactions to obtain a copy of the data elements submitted through the ACE along with the ITN, date of export and filer name. More information on accessing ACE reports can be found here.
 
Advice for the U.S. Authorized Agent in a Routed Export Transaction:
 
  – Obtain a POA or written authorization from the FPPI before filing the EEI.
  – Obtain the data elements listed in section 30.3(e)(1)(i) through (xii) of the FTR from the USPPI.
  – If you are having trouble obtaining information from the USPPI, refer them to section 30.3(e)(1) of the FTR so the USPPI will know the law requires this information. The FTR is located here. If you need further assistance, please call the Trade   
Regulations Branch staff and we may be able to assist.
  – Provide the USPPI with a copy of the POA or written authorization from the FPPI, a copy of the data elements provided by the USPPI that were submitted through ACE along with ITN, date of export and filer name. Authorized agents should use this as a best practice, but it is only required if requested by the USPPI.
 
Enforcement Actions
 
 
BCC Corporate SA (“BCCC”) is a Belgium-based credit card issuer and corporate service company that issues various payment products, such as credit cards, to its European-based corporate customers. At the time of the apparent violations, BCCC was a 
wholly owned subsidiary of Alpha Card Group (“Alpha Card”), which in turn was owned 50 percent by American Express Company (AMEX), a U.S. financial institution. AMEX has 
agreed to remit $204,277 to settle potential civil liability for 1,818 apparent violations of the Cuban Assets Control Regulations, 31 C.F.R. part 515 (CACR).
 
Between April 9, 2009 and February 3, 2014, credit cards BCCC had issued to its corporate customers were used to make credit card purchases in Cuba. Although Alpha Card and BCCC had policies and procedures in place to review transactions for matches to OFAC’s List of Specially Designated Nationals and Blocked Persons for compliance with U.S. economic sanctions laws, Alpha Card and BCCC nevertheless failed to implement controls to prevent BCCC-issued credit cards from being used in Cuba. Between April 9, 2009 and February 3, 2014, BCCC processed 1,818 transactions totaling $583,649.43 for more than 100 distinct corporate customers of BCCC whose cards were used in Cuba or that otherwise involved Cuba
 
The total base penalty amount for the 1,818 apparent violations was $291,825. OFAC has determined that AMEX voluntary self-disclosed the apparent violations to OFAC and that the apparent violations constitute a non-egregious case.
 
The settlement amount reflects OFAC’s consideration of the following facts and circumstances, pursuant to the General Factors under OFAC’s Economic Sanctions Enforcement Guidelines, 31 C.F.R. part 501, app. A. OFAC considered the following to be aggravating factors: (1) personnel within both Alpha Card and BCCC had reason to know of the conduct that led to the apparent violations; (2) despite Alpha Card’s business model prior to its acquisition of BCCC in March 2009, in which it dealt exclusively with AMEX-related products (and therefore had 
insight into all the parties involved in any transactions throughout the network), none of the companies involved appear to have appreciated the possibility or risk that BCCC-issued credit 
cards could be used in Cuba, and the company should have taken steps to assess the level of sanctions risk, and related controls, for BCCC-issued credit cards; (3) the apparent violations resulted in harm to U.S. sanctions program objectives at the time they occurred; (4) AMEX is a large and commercially sophisticated financial institution; and (5) during OFAC’s investigation, 
AMEX and BCCC provided certain information on multiple occasions that was verifiably inaccurate or incomplete, including material omissions.
 
OFAC considered the following to be mitigating factors: (1) BCCC has not received a penalty notice or Finding of Violation from OFAC in the five years preceding the earliest date of the 
transactions giving rise to the apparent violations; (2) upon discovering the apparent violations, AMEX took swift and appropriate remedial action; (3) AMEX and BCCC voluntarily self-disclosed the apparent violations to OFAC; and (4) BCCC signed a statute of limitations tolling agreement and tolling agreement extensions.
 
 
OFAC has issued a Finding of Violation to Dominica Maritime Registry, Inc. (DMRI), of Fairhaven, Massachusetts, for a violation of the Iranian Transactions and Sanctions Regulations, 31 C.F.R. part 560 (ITSR). Specifically, OFAC determined that on July 4, 2015, DMRI violated § 560.211 of the ITSR by dealing in the property or interests in property of the National Iranian Tanker Company (NITC), an entity identified by OFAC as meeting the definition of the Government of Iran and whose property and interests in property are blocked.1 In particular, DMRI executed a binding Memorandum of Understanding with NITC, which OFAC determined was a contingent contract and therefore property in which NITC, a blocked person, had an interest.
 
Section 560.211 of the ITSR prohibits U.S. persons from dealing in the property or interests in property of the Government of Iran. Since NITC is identified as an entity meeting the definition of the Government of Iran, DMRI was prohibited from dealing in its property or interests in property. Section 560.325 of the ITSR defines “property” and “property interests” to include “services of any nature whatsoever, contracts of any nature whatsoever, and any other property, real, personal, or mixed, tangible or intangible, or interest or interests therein, present, future, or contingent.” OFAC determined that DMRI did not voluntarily disclose the violation and that the violation constitutes a non-egregious case. The determination to issue a Finding of Violation to DMRI reflects OFAC’s consideration of the following facts and circumstances, pursuant to the General Factors as outlined in OFAC’s Economic Sanctions Enforcement Guidelines, 31 C.F.R. part 501, app. A. OFAC considered the following to be aggravating factors: (1) DMRI failed to exercise a minimal degree of caution or care by executing a contingent contract with an entity it knew was listed on the SDN List at the time of the violation; (2) DMRI executives had actual knowledge of, and actively participated in, the conduct the led to the violation, and were aware of NITC’s status when DMRI executed the contingent contract; and (3) DMRI undermined the policy objectives of the ITSR by dealing in the blocked property of a Government of Iran entity identified on the SDN List.
 
OFAC considered the following to be mitigating factors: (1) DMRI has not received a penalty notice or Finding of Violation from OFAC in the five years preceding the date of the transaction giving rise to the violation; (2) DMRI is a small company; and (3) DMRI has taken remedial actions, including engaging trade counsel to assist it in understanding its obligations under U.S. sanctions laws, updating its OFAC compliance procedures, and undertaking a process to establish an OFAC compliance training program for all employees.
 
Based on the foregoing analysis of the General Factors, the conduct at issue, and the size of DMRI, OFAC determined that the issuance of this Finding of Violation is the appropriate enforcement response. OFAC found that DMRI is a small company and the scope of the underlying conduct at issue was limited. Additionally, based on information DMRI provided to OFAC, there was no performance of the contingent contract and DMRI represented that it has had no further dealings with NITC or any other sanctioned party.
 
 
A former U.S. Army sergeant was sentenced this month to more than 16 years in federal prison following his role in a straw purchasing scheme that involved firearms smuggled to the Gulf Cartel. …
 
Julian Prezas, 37, from San Antonio was sentenced Nov. 2 by U.S. District Judge Orlando Garcia to 200 months in prison, three years of supervised release, and he must pay a $600 special assessment fee. On Dec. 12, 2016, Prezas pleaded guilty to five counts of making a false statement during the purchase of firearms and one count of attempting to export into Mexico defense articles on the U.S. Munitions List without obtaining a license or written authorization. By pleading guilty, Prezas admitted to conspiring with others from April to August 2015 to illegally purchase more than 40 assault rifles.
 
According to court records, Prezas was the actual purchaser of the firearms even though his co-defendants, other former U.S. Army soldiers, falsely indicated on their ATF form 4473 that they were buying the firearms at the time of purchase. Furthermore, Prezas, at times while in uniform and in a government vehicle, admittedly delivered the firearms to multiple individuals, one of whom was delivering them to members of the Gulf Cartel in Mexico.

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

COMM_a2
12.

S.T. Boyce, M.P. Gurdak & C. O’Dorr: “Revised U.S. Regulations Support Cuba’s Private Sector, but Travel Restrictions Remain”

(Source: 
Jones Day
, Nov 2017.)
 
* Authors: Sean T. Boyce, Esq.,
sboyce@jonesday.com
; Michael P. Gurdak, Esq.,
mpgurdak@jonesday.com
; and C. O’Dorr, Esq.,
cdorr@jonesday.com
.  All of Jones Day, Dubai and Washington DC, respectively.
 
In Short
 
The Situation
: Regulations implementing tightened U.S. policy towards engagement with Cuba have rolled back a number of Obama-era initiatives and are effective immediately.
 
The Result
: Provisions that encourage Cuban private sector economic activities remain largely intact, but a new prohibition against direct transactions with entities on the newly-created “Cuba Restricted List” may make travel to Cuba more complicated.
 
Looking Ahead
: The publication of the revised regulations reduces some of the uncertainty for companies who had begun to wade into Cuba. However, the scope of authorized activities remains narrow and the addition of yet another screening list that must be checked increases compliance burdens.
 
In June 2017, President Trump issued a National Security Presidential Memorandum (“NSPM”) revising U.S. policy towards engagement with Cuba. As we described in our
commentary
, at the time, the announced rollback of Obama-era sanctions relief envisioned in that policy would not take effect until revisions to the Cuban Assets Control Regulations (“CACR”) and Export Administration Regulations (“EAR”) were published. The revised regulations have now been issued and are effective immediately.
 
Prior to the change in policy, most transactions and trade remained prohibited by the long-standing embargo. However, the CACR and EAR authorized certain transactions and trade in less-sensitive goods, technology, and software to support the Cuban people and to encourage private-sector economic activity. For those who had begun to make use of the general licenses or license exceptions that authorized such activity to trade in Cuba, those authorities largely remain unchanged. However, traveling to Cuba to support such business will become more complicated.
 
The Revised Cuban Assets Control Regulations
 
The revised CACR now prohibit direct transactions with entities or subentities identified by the U.S. Department of State as being under the control of or acting on behalf of the Cuban military, intelligence, or security services (“Cuba Restricted List”):
 
  – Twenty-seven hotels and ten stores in Havana and old Havana controlled by Corporacion CIMEX SA, Compania Touristica Habaguanex, SA, the Grupo de Administracion Empresarial SA (also known as “GAESA”), and Grupo Tourismo Gaviota are now off limits to U.S. persons. These entities control large segments of the hospitality industry in Cuba.
  – The Cuba Restricted List also includes hotels in Santiago de Cuba, Varadero, Pinar del Rio, Baracoa, Cayos de Villa Clara, Holgun, Jardines del Rey, and Topes de Collantes.
  – The new prohibitions also extend to other areas of the Cuban economy, including listed container terminals, providers of customs services, real estate firms, satellite television providers, and a number of other businesses that travelers may encounter, including shopping malls, rum producers, and beverage manufacturers.
 
Beyond potential business implications, the revised CACR once again prohibit individually arranged “people-to-people” educational travel that many U.S. persons had used to travel to Cuba. As announced in June, the regulations allow for those who had made travel arrangements prior to the June 16, 2017, announcement to continue with those plans, provided that travel does not include new travel-related transactions with entities on the Cuba Restricted List after November 9, 2017. People-to-people educational travel must now be conducted under the auspices of an organization subject to U.S. jurisdiction and accompanied by an employee or agent of that organization.
 
Changes to Export Administration Regulations
 
Like the CACR, revisions to the EAR reflect the administration’s support for free enterprise in Cuba, while cracking down on those that support the Cuban government or its officials. The Bureau of Industry and Security simplified and expanded the License Exception Support for the Cuban People, 15 C.F.R. § 740.21. Now, all eligible items (which excludes medicine, medical devices, or agricultural commodities) that are designated EAR99 or that are controlled for antiterrorism purposes only may be exported or reexported to Cuba for use in Cuban private sector activities, except for items that would be used to primarily generate revenue for the state or contribute to the operation of the state.
 
Conversely, the Bureau of Industry and Security implemented a policy of denial for license applications for the export or reexport of items to entities or subentities on the Cuba Restricted List, unless those transactions are determined to be consistent with the NSPM.
 
The CACR and EAR revisions also expand the definition of individuals considered to be prohibited officials of the Government of Cuba, which limits the availability of license exceptions available to export or reexport items subject to the EAR to those officials, whether related to their government function or not.
 
Working with the New Regulations
 
For those who had begun to take advantage of the previously eased sanctions, the release of the regulations implementing the policy change announced in the NSPM is likely welcome news, reducing the uncertainty of how far the rollback might go.
 
Although many of the provisions authorizing private sector economic activity remain, the scope of general licenses and license exceptions for authorized transactions with, and exports of goods and technology to, Cuba remains narrow.
 
Finally, it should be noted that while commercial screening tools are beginning to rollout revisions to their screening databases to reflect the new Cuba Restricted List, the online tools provided by the government do not appear to have been updated at this time. Accordingly, compliance officials must exercise caution when screening counterparties to avoid falling prey to a false negative screening result.
 
Two Key Takeaways
 
  (1) The publication of revised regulations regarding economic activity with Cuba reduces some of the uncertainty for companies pursuing opportunities there, but the range of allowed activities is limited.
 
  (2) U.S. companies taking advantage of the limited opportunities to conduct business in Cuba must be cautious regarding transactions with hotels, stores, and other tourist-related businesses to ensure they are not on the Cuba Restricted List.

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

COMM_a3
13.

R.C. Burns: “OFAC Fines Foreign Company for Following Applicable Foreign Law”

(Source: 
Export Law Blog
, 1 Dec 2017. Reprinted by permission.)
 
* Author: R. Clifton Burns, Esq., Bryan Cave LLP, Wash DC,
Clif.Burns@bryancave.com
, +1 202-508-6067).
 
The Office of Foreign Assets Control (“OFAC”) recently
announced
that it has extracted $204,277 from American Express as a result of 1,818 credit card transactions in the amount of $583,649.43 for purchases made in Cuba. At issue were Mastercard and Visa corporate credit cards issued by BCC Corporate SA to corporations for use by the employees of those corporations, which cards were then used by those employees to make the Cuban purchases that were at issue. BCC is a wholly-owned Belgian subsidiary of Alpha Card Group, another Belgian company and a 50/50 joint venture of BNP Paribas Fortis and American Express.
 
The immediate question here, which OFAC can’t be bothered to answer, is how OFAC has the authority to fine a Belgian company for its dealings with Cuba. The Cuban Assets Control Regulations (CACR) prohibit Cuba transactions by persons “subject to the jurisdiction of the United States.” Section 515.329 of the CACR define persons subject to the jurisdiction of the United States to include companies “owned or controlled” by a corporation organized under the laws of the United States.
 
The CACR does not define “owned or controlled.”  That’s probably because everyone – except apparently OFAC – understands what that means, namely that the U.S. company owns 100 percent of the company or some lesser amount coupled with de jure or de facto control. In the case of a 50/50 joint venture neither party owns or controls the venture.  (Owned in this context cannot mean any interest, no matter the size, since that would render the addition of “or controlled” unnecessary).
 
To make matters worse, OFAC is – yet again – punishing a company for complying with applicable foreign law. Anyone who reads this blog knows that I have pointed out
time and time again
that it is illegal for companies doing business in the European Union.
Council Regulation (EC) No 2271/96
of 22 November 1996 prohibits companies incorporated in the E.U., such as BCC Corporate SA, from complying with the U.S. embargo on Cuba. OFAC does not, of course, mention BCC’s obligation to comply with local law or even cite it as a mitigating factor here. This is particularly egregious where the company at issue is not even subject to U.S. jurisdiction.

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

TEEX/IM TRAINING EVENTS & CONFERENCES

TE_a214
. List of Approaching Events – 30 New Events Listed

(Sources: Editor and Event Sponsors) 
 
Published every Friday or last publication day of the week. Please, send event announcements to
jwbartlett@fullcirclecompliance.eu
, composed in the below format:

# DATE: LOCATION; “EVENT 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
 
* E-Seminars: “ITAR/EAR Awareness;” Export Compliance Solutions; spalmer@exportcompliancesolutions.com 
* Online: “
Simplified Network Application Process Redesign (SNAP-R)
;” Commerce/BIS; 202-482-2227
* E-Seminars: “
Webinars On-Demand Library
;” Sandler, Travis & Rosenberg, P.A.

*
Online
:
 “
On-Demand Webinars;” “General Training;” Center for Development of Security Excellence; Defense Security Service (DSS)

 
Training by Date:

 

* Dec 4: Tax Watch Webcast; ”
Export Control Update- Establishing a Leading Export Program;” KPMG LLP; 
rtatum@kpmg.com 
* Dec 4: Berlin, Germany; ”
Conference on Export Controls and Academia;” German Federal Ministry of Economics and Energy

* 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 4-8: Tysons Corner, VA; “Certified Classification Specialist;” Amber Road, Global Trade Academy 
* Dec 5: Manchester, UK; ”
An Introduction to Exporting – Physical Goods;” IOEx

*
Dec 5
: Free Webinar; “
ACE AESDirect Demonstration
;
” U.S. Census Bureau

* Dec 5: Webinar; ”
NAFTA Rules of Origin;” International Business Training

* 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 5-6; Atlanta, GA; ”
East Coast Trade Symposium;” DHS/CBP

* Dec 5-6: New York, NY; ”
8th Annual Forum on Economic Sanctions;” American Conference Institute
*
 Dec 5-6: London, UK; “Customs Compliance in Partnership with HMRC;” IOEx
 

* Dec 6-7: Adelaide, Australia; ”
Defence Export Controls Outreach Program;” Australian Department of Defence/Defence Exports Controls

* Dec 6: London UK; ”
Intermediate Seminar;” UK Department for International Trade;
denise.carter@trade.gsi.gov.uk 

* 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: Webinar; ”
Duty Drawback Simplification: Earning More ROI on Your 2018 Supply Chain!;” Amber Road Global Trade Academy

* Dec 7: Webinar; ”
Counterintelligence and Insider Threat Training Products;” Center for the Development of Security Excellence; DSS

* Dec 7: Laredo, TX; “AES Compliance Seminar in Spanish;” Dept. of Commerce/Census Bureau; itmd.outreach@census.gov 

* Dec 7: London UK; ”
Beginners Workshop;” UK Department for International Trade;
denise.carter@trade.gsi.gov.uk 

* Dec 7: London UK; ”
Licences Workshop;” UK Department for International Trade;
denise.carter@trade.gsi.gov.uk 

* Dec 8: Boston, MA; ”
Export Expo;” Compliance Alliance and Massachusets Export Center
* Dec 8: Minneapolis, MN; ”
Incoterms 2010: Terms of Sale Seminar;” International Business Training
* Dec 8: Washington, D.C.; ”
2017 SIA Holiday Party;” Society for International Affairs (SIA)

* Dec 11-13: Sterling, VA; “
Basics of Government Contracting
;” Federal Publications Seminars

* Dec 12: Webinar; ”
Collision Course: Data Privacy and Export Controls;” Ankura

* Dec 12: London, UK; ”
International Documentation & Customs Compliance;” IOEx

* Dec 12: London, UK; ”
Control List Classification – Combined Dual Use and Military;” UK Department for International Trade;  
denise.carter@trade.gsi.gov.uk 
* Dec 12-13: Los Angeles, CA; ”
Advanced Classification of Plastics and Rubber;” Global Trade Academy
# Dec 13: Free Webinar; ”
Duty Drawback;” Citta Brokerage Company

* Dec 13: Washington, DC; “DDTC In-House Seminar;”

# Dec 14: Dial-In; 

10 Practical Tips for In-House Counsel When Doing Business in Latin America;” Dial: (563) 999-1048, Access Code: 946561; American Bar Association


*
 Dec 14: Minneapolis, MN; “
Import Audit Compliance Seminar
;” International Business Training

* Dec 14: Manchester, UK; “UK & US Export Controls: A Basic Understanding;” IOEx 
* Dec 14: London, UK; ”
UK & US Export Controls: A Basic Understanding;” IOEx
# Dec 14-15: Washington, D.C.; ”
Coping with U.S. Export Controls and Sanctions 2017;” Practicing Law Institute (PLI)

* Dec 15: Atlanta, GA; ”
Incoterms 2010: Terms of Sale Seminar;” International Business Training


* Dec 19: Brussels, Belgium; ”
2017 Export Control Forum;” European Commission
# Dec 20: London, UK; ”
An Introduction to Importing;” Institute of Export and International Trade

 
2018
 

* Jan 17: Bristol UK; ”
Intermediate Seminar;” UK Department for International Trade;
denise.carter@trade.gsi.gov.uk 

* Jan 18: Bristol UK; ”
Beginners Workshop;” UK Department for International Trade;
denise.carter@trade.gsi.gov.uk 

* Jan 18: Bristol UK; ”
Licences Workshop;” UK Department for International Trade;
denise.carter@trade.gsi.gov.uk 

* Jan 18: Bristol UK; ”
Control List Classification – Combined Dual Use and Military;” UK Department for International Trade;
denise.carter@trade.gsi.gov.uk 

# Jan 22-23: San Diego, CA; “
ITAR Defense Trade Controls
;” ECTI; 
jessica@learnexportcompliance.com
; 540-433-3977

# Jan 24-25: San Diego, CA: ”
EAR and OFAC Controls;”  
ECTI; 
jessica@learnexportcompliance.com
; 540-433-3977

* Jan 23-24: Houston, TX; ”
Complying with US Export Controls;” 
Bureau of Industry and Security

*
Jan 23: London, UK; “International Documentations and Customs Compliance;” Institute of Export and International Trade

# Jan 24: London, UK; ”
An Introduction to Exporting – Physical Goods;” IOEx

* Jan 25: Houston TX; ”
Technology Controls;” 
Bureau of Industry and Security
# Jan 25: London, UK; “International Documentation & Customs Compliance;” IOEx

* Jan 27: Indian Harbor Beach, FL (Melbourne area); ”
Global Challenges: A Conversation with James Clapper;” Rotary Club of Indialantic;


 
http://www.indialanticrotary.org/

321-952-2978.


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

*
 Jan 30: Miami, FL; “
Duty Drawback Specialist – Certification
;” Global Trade Academy 

* Jan 31: Washington, D.C.; “4th National Forum on CFIUS and Team Telecom;” American Conference Institute

# Feb 1: Birmingham, UK; 

International Documentation & Customs Compliance
;” IOEx

* Feb 6: Las Vegas, NV;
 “
Import Documentation and Procedures Seminar
;” International Business Training
# Feb 6: Birmingham, UK; “An Introduction to Exporting – Physical Goods;” IOEx

*
 Feb 6-7: San Diego, CA; “Complying with US Export Controls;” 
Bureau of Industry and Security

* Feb 7-8: Munich, Germany; ”
Export Compliance in Europe, 2018;”

*
 Feb 13-14: Miami, FL; “Complying with US Export Controls;” 
Bureau of Industry and Security 

* Feb 13-14: Orlando FL; “
ITAR/EAR Boot Camp
;” Export Compliance Solutions; 
spalmer@exportcompliancesolutions.com
; 866-238-4018

# Feb 13-16: London, UK; “Certified Authorized Economic Operator (AEO) Specialist;” Global Trade Academy 
# Feb 14: London, UK; “International Documentation & Customs Compliance;” IOEx

# Feb 19: Tysons Corner, VA; “Export Compliance and Controls 101;” Global Trade Academy
# Feb 19-21: Tysons Corner, VA; “Export Controls Specialist – Certification;” Global Trade Academy
* Feb 19-22: Huntsville AL; “
ITAR Defense Trade Controls / EAR Export Controls Seminar
;” ECTI; 
jessica@learnexportcompliance.com
; 540-433-3977

* Feb 21: Newcastle UK; ”
Intermediate Seminar;” UK Department for International Trade;
denise.carter@trade.gsi.gov.uk 

* Feb 22: Newcastle UK; ”
Beginners Workshop;” UK Department for International Trade;
denise.carter@trade.gsi.gov.uk 

* Feb 22: Newcastle UK; ”
Licences Workshop;” UK Department for International Trade;
denise.carter@trade.gsi.gov.uk 

* Feb 22: Newcastle UK; ”
Control List Classification – Combined Dual Use and Military;” UK Department for International Trade;
denise.carter@trade.gsi.gov.uk 
#
Feb 27: London, UK; “International Documentation & Customs Compliance;” IOEx
# Mar 1: Manchester, UK; “An Introduction to Exporting – Physical Goods;” IOEx

* Mar 5-7: Sugar Land, TX; ”
2018 Winter Basics Conference;” Society for International Affairs (SIA)
* Mar 6-8: Orlando, FL; “
‘Partnering for Compliance’ East Export/Import Control Training and Education Program
;” Partnering for Compliance

*
 Mar 7: London, UK; “
Operations and Maintenance for Offshore Wind
;” ACI 

*
 Mar 7-8: Portland, OR; “Complying with US Export Controls;” 
Bureau of Industry and Security
# Mar 8: Manchester, UK; “International Documentation & Customs Compliance;” IOEx

* Mar 9: Orlando, FL; ”
Customs/Import Boot Camp
;” Partnering for Compliance

* Mar 11-14: San Diego, CA; “ICPA Annual Conference;” International Compliance Professionals Association; wizard@icpainc.org
# 13 March: London, UK; “International Documentation & Customs Compliance;” IOEx

* Mar 14-15: Austin, TX; “
Establishing an ITAR/EAR Export Compliance Program
” Export Compliance Solutions;
spalmer@exportcompliancesolutions.com
;
866-238-4018
# 14 Mar; London, UK; “Letters of Credit;” IOEx

* Mar 14: Birmingham UK; ”
Intermediate Seminar;” UK Department for International Trade;
denise.carter@trade.gsi.gov.uk 

* Mar 15: Birmingham UK; ”
Beginners Workshop;” UK Department for International Trade;
denise.carter@trade.gsi.gov.uk 

* Mar 15: Birmingham UK; ”
Licences Workshop;” UK Department for International Trade;
denise.carter@trade.gsi.gov.uk 

* Mar 15: Birmingham UK; ”
Control List Classification – Combined Dual Use and Military;” UK Department for International Trade;
denise.carter@trade.gsi.gov.uk 

# Mar 20: London, UK; ”
An Introduction to Importing;” IOEx
# Mar 20: London, UK; ”
UK & US Export Controls: A Basic Understanding;” IOEx

* Mar 20-22: Nashville, TN;
 “Complying with US Export Controls;” 
Bureau of Industry and Security

* Mar 23; Nashville, TN; ”
How to Build an Export Compliance Program;” Bureau of Industry and Security

*
 Mar 26: East Rutherford, NJ; “
Advanced Classification of Plastics and Rubber
;” Global Trade Academy 

* Mar 27-28; Santa Clara, CA; ”
Export Control Forum;” Bureau of Industry and Security
*
 Apr 5-6; Des Moines, IA;
 “Complying with US Export Controls;” 
Bureau of Industry and Security 

*
 Apr 11-12; Denver, CO;
 “Complying with US Export Controls;” 
Bureau of Industry and Security 

* Apr 16-19: Las Vegas NV; “
ITAR Defense Trade Controls / EAR Export Controls Seminar
;” ECTI; 
jessica@learnexportcompliance.com
; 540-433-3977
*
 Apr 24: Los Angeles, CA; “
Duty Drawback Specialist – Certification
;” Global Trade Academy
* Apr 24-25: Dubai, UAE; “
Trade Compliance in the Middle East
;” NeilsonSmith

*
 Apr 25-26: Costa Mesa, CA;
 “Complying with US Export Controls;” 
Bureau of Industry and Security

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

*
 May 2-3; Scottsdale, AZ;
 “Complying with US Export Controls;” 
Bureau of Industry and Security
 

* May 6-8: Toronto, Canada; ”
2018 ICPA Canadian Conference;” ICPA
* May 7-8: Denver, CO; ”
2018 Spring Advanced Conference;” Society for International Affairs (SIA)
# May 9; London, UK; ”
Advanced Financing of International Trade;” IOEx

*
 May 15-16; Cleveland, OH;
 “Complying with US Export Controls;” 
Bureau of Industry and Security

* May 16-17: National Harbor, MD; “
ITAR/EAR Compliance: An Industry Perspective
;” Export Compliance Solutions;
spalmer@exportcompliancesolutions.com
;
 866-238-4018 

* Jun 4-7:
San Diego, CA; “
ITAR Defense Trade Controls / EAR Export Controls Seminar
;” 
jessica@learnexportcompliance.com
; 540-433-3977

*
 Jun 6-7: Seattle, WA;
 “Complying with US Export Controls;” 
Bureau of Industry and Security

* Jun 6-7: Munich, Germany; ”
US Trade Controls Compliance in Europe;” NielsonSmith

* Jun 13: San Diego, CA; ”
Made in America, Buy America, or Buy American: Qualify your Goods and Increase Sales;” Global Trade Academy
# Jun 18: Los Angeles, CA; ”
Certified Classification Specialist (CCLS);” Global Trade Academy

*
 Jul 10: Chicago, IL; “
Duty Drawback Specialist – Certification
;” Global Trade Academy

* Jul 10-11: Columbia, SC; 
 “Complying with US Export Controls;” 
Bureau of Industry and Security

* Jul 10-11: Long Beach, CA; ”
ITAR/EAR Boot Camp;”  Export Compliance Solutions; 
spalmer@exportcompliancesolutions.com
; 866-238-4018

* Jul 17:
 Los Angeles, CA; “
Advanced Classification of Plastics and Rubber
;” Global Trade Academy
# Aug 1-3: Washington, D.C.; NSSF and Fair Trade Import/Export Conference;” NSSF
# Aug 6: Detroit, MI; “Export Compliance and Controls;” Global Trade Academy
# Aug 7-9: Detroit, MI; ”
Export Controls Specialist – Certification;” Global Trade Academy

* Aug 14-15: Milpitas, CA; 
 “Complying with US Export Controls;” 
Bureau of Industry and Security

* Aug 16: Milpitas, CA ”
Encryption Controls;” Bureau of Industry and Security

* Sep 12-13: Annapolis, MD; “
ITAR/EAR Boot Camp
;” Export Compliance Solutions; 
spalmer@exportcompliancesolutions.com
; 866-238-4018


* Sep 12-13: Springfield, RI; 
Complying with US Export Controls;” 
Bureau of Industry and Security

# Sep 17-21: Los Angeles, CA; ” 
Import 5-Day Boot Camp;” Global Trade Academy 
# Sep 17: Los Angeles, CA; ” 
Import Compliance;” Global Trade Academy

# Sep 18: Los Angeles, CA; ” 
Tariff Classification for Importers and Exporters;” Global Trade Academy 
# Sep 19: Los Angeles, CA; ”
NAFTA and Trade Agreements;” Global Trade Academy

# Sep 20: Los Angeles, CA; “Country and Rules of Origin;” Global Trade Academy 

# Sep 21: Los Angeles, CA; ”
Customs Valuation – The Essentials;” Global Trade Academy

*
Oct 22-23; Arlington, VA; “2018 Fall Advanced Conference;” Society for International Affairs (SIA)
# Oct 30 – Nov 1: Seattle, WA; “Export Controls Specialist – Certification;” Global Trade Academy
# Nov 6: Detroit, MI; “Classification: How to Classify Parts;” Global Trade Academy
# Nov 7-9: Detroit, MI; “Advanced Classification for Machinery & Electronics;” Global Trade Academy

*
 Nov 13: Tysons Corner, VA; “
Made in America, Buy America, or Buy American: Qualify your Goods and Increase Sales
;” Global Trade Academy

*
 Nov 27: Houston, TX; “
Duty Drawback Specialist – Certification
;” Global Trade Academy
# Dec 3-7: Tysons Corner, VA; “Certified Classification Specialist;” Global Trade Academy

* Dec 6: London, UK; ”
International Documentation and Customs Compliance
;” Institute of Export and International Trade

* Dec 11: Manchester, UK; ”
International Documentation and Customs Compliance
;” Institute of Export and International Trade

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

ENEDITOR’S NOTES

EN_a115
. Bartlett’s Unfamiliar Quotations

(Source: Editor)

 
* Woody Allen (Heywood Allen, born Allan Stewart Konigsberg; 1 Dec 1935; is an American filmmaker, writer, actor, comedian, and musician whose career spans more than six decades.)
  – “Sex without love is a meaningless experience, but as far as meaningless experiences go it’s pretty damn good.”
  – “Eighty percent of success is just showing up.”
 
* Rex Stout (Rex Todhunter Stout; 1 Dec 1886 – 27 Oct 1975; was an American writer noted for his detective fiction. His best-known characters are the detective Nero Wolfe and his assistant Archie Goodwin, who were featured in 33 novels and 39 novellas between 1934 and 1975.)
  – “There are two kinds of statistics, the kind you look up and the kind you make up.”
 
Friday funnies:
 
A circus train derailed in a remote rural area and several animals escaped. An elephant wandered into an elderly lady’s garden and began eating her vegetables. She looked out from inside her house and saw the animal. Being nearsighted and never having seen an elephant, she phoned the sheriff and exclaimed “Sheriff, sheriff, come quickly – there is some kind of critter in my garden, it is bigger than my toolshed, and it is pulling up my turnips with its tail!” The sheriff replied, “Pulling turnips up with its tail? What is it doing with them?” The old lady squinted through the window and reluctantly replied, “If I told you, you wouldn’t believe me!”

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

EN_a216. Are Your Copies of Regulations Up to Date?
(Source: Editor)

The official versions of the following regulations are published annually in the U.S. Code of Federal Regulations (C.F.R.), but are updated as amended in the Federal Register.  Changes to applicable regulations are listed below.
 


ATF ARMS IMPORT REGULATIONS: 27 CFR Part 447-Importation of Arms, Ammunition, and Implements of War
  – Last Amendment: 15 Jan 2016: 
81 FR 2657-2723: Machineguns, Destructive Devices and Certain Other Firearms; Background Checks for Responsible Persons of a Trust or Legal Entity With Respect To Making or Transferring a Firearm. 
 

CUSTOMS REGULATIONS: 19 CFR, Ch. 1, Pts. 0-199
  – 
Last Amendment: 28 Sep 2017: 82 FR 45366-45408: Changes to the In-Bond Process [Effective Date: 27 Nov 2017.] 
 
DOD NATIONAL INDUSTRIAL SECURITY PROGRAM OPERATING MANUAL (NISPOM): DoD 5220.22-M

  – Last Amendment: 18 May 2016: Change 2
: Implement an insider threat program; reporting requirements for Cleared Defense Contractors; alignment with Federal standards for classified information systems; incorporated and cancelled Supp. 1 to the NISPOM (Summary 
here
.)


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

  – Last Amendment:
9 Nov 2017: 82 FR 51983-51986: Amendments to Implement United States Policy Toward Cuba

  

FOREIGN ASSETS CONTROL REGULATIONS (OFAC FACR): 31 CFR, Parts 500-599, Embargoes, Sanctions, Executive Orders

  – Last Amendment:
13 Nov 2017: 82 FR 52209-52210: Removal of Côte d’Ivoire Sanctions Regulations

 

FOREIGN TRADE REGULATIONS (FTR): 15 CFR Part 30
  –
Last Amendment: 
20 Sep 2017:
 
82 FR 43842-43844
: Foreign Trade Regulations (FTR): Clarification on Filing Requirements; Correction
  
  – HTS codes that are not valid for AES are available 
here.
  – The latest edition (20 Sep 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: 20 Oct 2017: 
Harmonized System Update 1707, c
ontaining 
27,291 ABI records and 5,164 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: 19 Nov 2017) of the ITAR with all amendments is contained in Bartlett’s Annotated ITAR (“BITAR”), by James E. Bartlett III. The BITAR contains all ITAR amendments to date, plus a large Index, over 800 footnotes containing amendment histories, case annotations, practice tips, DDTC guidance, and explanations of errors in the official ITAR text. Subscribers receive updated copies of the BITAR in Word by email, usually revised within 24 hours after every ITAR amendment.  The BITAR is available by annual subscription from the Full Circle Compliance website. BAFTR subscribers receive a 25% discount on subscriptions to the BITAR, please contact us to receive your discount code.
 

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

EN_a317
. Weekly Highlights of the Daily Bugle Top Stories

(Source: Editor)
 

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

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

* 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.

Scroll to Top