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17-1215 Friday “Daily Bugle”

17-1215 Friday “Daily Bugle”

Friday, 15 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 Posts Updated Statements Cutover Plan
  4. State/DDTC: (No new postings.)
  5. EU Amends Dual-Use Regulations, (EC) No. 428/2009
  6. Wassenaar Arrangement Releases Summary of Changes to 2016 Dual-Use Goods & Technologies and Munitions ListDo
  1. News.com.au: “Universities Accused of Sharing Military Technology with China”
  2. ST&R Trade Report: “Dates and Deadlines: Customs Forms, Origin Determination, Trade in Services, Lumber”
  1. J. Reeves: “ATF Written Guidance to Industry on Hold In Light of AG Sessions Memo”
  2. KYC360: “Quick Take: Understanding the EU’s Sanctions Against Russia”
  3. M. Gonzalez, A. Hood & R. Matthews: “Export Controls: 2017 Update of the EU Dual-Use Control List”
  4. N. Bolin: “DOJ Settlement with Netcracker Technology Corporation Highlights Cybersecurity and Export Control Best Practices for Government Contractors and Information Technology Companies”
  1. List of Approaching Events
  1. Full Circle Compliance Congratulates its Students on Earning their Masters Degrees in International Trade Compliance 
  2. Bartlett’s Unfamiliar Quotations 
  3. Are Your Copies of Regulations Up to Date? Latest Changes: ATF (15 Jan 2016), Customs (8 Dec 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)
  4. Weekly Highlights of the Daily Bugle Top Stories 

EXIMITEMS FROM TODAY’S FEDERAL REGISTER

EXIM_a1
[No items of interest noted today.]

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OGSOTHER GOVERNMENT SOURCES

OGS_a11
. Items Scheduled for Publication in Future Federal Register Editions
 

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

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(Source:
CSMS #17-000778, 15 Dec 2017)
An updated Statements
Cutover Plan has been posted to the Deployment G, Release 3B Information Notice and can be found here.
 
Deployment G, Release 3B is schedule for January 6, 2018.
* * * * * * * * * * * * * * * * * * * *

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The annual revision of the EU dual-use export control list brings the EU’s list into line with the revised lists agreed by the Wassenaar Arrangement, Australia Group, Missile Technology Control Regime, and Nuclear Suppliers Group. Details of the changes, including the full text of the revised Regulation, are available on the European Commission’s website.
 
Regulations
* Commission Delegated Regulation (EU) 2017/2268 of 26 September 2017 amending Council Regulation (EC) No. 428/2009 setting up a Community regime for the control of exports, transfer, brokering and transit of dual-use items
under the Association Agreement ( OJ L 254, 30.9.2017 )
* * * * * * * * * * * * * * * * * * * *

 
The summary is available here.
 
N.B. The Wassenaar Arrangement (WA) has been established in order to contribute to regional and international security and stability, by promoting transparency and greater responsibility in transfers of conventional arms and dual-use goods and technologies, thus preventing destabilizing accumulations. The aim is also to prevent the acquisition of these items by terrorists.
 
Participating States seek, through their national policies, to ensure that transfers of these items do not contribute to the development or enhancement of military capabilities which undermine these goals, and are not diverted to support such capabilities. For more information, click here.
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NWSNEWS

(Source:
News.com.au, 15 Dec 2017.)
 
Australian universities have been accused of sharing military technology with China illegally by a former senior defense official – who says the government needs to crack down on leaks.
 
Australian universities have come under fire for reportedly sharing military technology with China.
 
Former senior defense official Peter Jennings blasted the Defense Department on ABC AM this morning – saying there was a “likelihood” universities were breaking strict export controls on technology which could be used for military purposes.
 
  “The department should now be looking to audit the performance of universities because we are talking about the mass migration over to Chinese interests and that’s not in Australia’s commercial, or indeed national, security interests,” he told the ABC.
 
Mr. Jennings said Australia’s world-leading research into artificial intelligence, super computing and driverless car technology could be picked up by Chinese students and used in the military. …
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Following are highlights of regulatory effective dates and deadlines and federal agency meetings coming up in the next week.
 
  – Dec. 18 – effective date of EPA final rule requiring advance notice for imports of 29 chemical substances
  – Dec. 19 – deadline for comments on CBP information collection on returned goods
  – Dec. 20 – deadline for input for annual ITC report on trade in services
  – Dec. 21 – deadline for comments to DOC on softwood lumber subsidy programs
  – Dec. 21 – deadline for seeking judicial review of CBP origin determination on roasted coffee beans
* * * * * * * * * * * * * * * * * * * *

COMMCOMMENTARY

COMM_a1
9. J. Reeves: “ATF Written Guidance to Industry on Hold In Light of AG Sessions Memo”
(Source: R/D Alert, 15 Dec 2017.)
 
* Author: Johanna Reeves, Esq., Reeves & Dola, jreeves@reevesdola.com, 202-715-9941.
 
In November, Attorney General Jeff Sessions issued a memo prohibiting the Department of Justice from issuing “guidance documents” that have the effect of adopting new regulatory requirements or amending the law. The intent behind the memo is to prevent DOJ agencies from “evading required rulemaking process by using guidance memos to create de facto regulations.” DOJ’s public announcement further explains, “[i]n the past, the Department of Justice and other agencies have blurred the distinction between regulations and guidance documents. Under the Attorney General’s memo, the Department may no longer issue guidance documents that purport to create rights or obligations binding on persons or entities outside the Executive Branch.” In addition, the DOJ Regulatory Reform Task Force will review existing guidance documents to determine whether any of these should be repealed, replaced, or modified in light of the principles presented in the memo.
 
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) is a law enforcement agency within the DOJ. As such, ATF must abide by the Attorney General’s directive. However, it is unclear how the memo will impact ATF’s ability to approve variance requests, respond to inquiries, and issue other similar written guidance to industry members. ATF is currently working with DOJ to determine what written guidance is subject to the memo. In the meantime, open inquiries for written guidance from ATF, including variances, may be on hold.
 
The full announcement, as well as a link to the Attorney General’s memo, is available on DOJ’s website.
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(Source:
KYC360, 14 Dec 2017.)
 
The EU has once again decided to renew its economic sanctions against Russia.
 
The measures target the financial, energy and defence sectors, and the area of dual-use goods.
 
Here’s a summary about how it started and the current state of play.
 
What’s the background to all this?
 
It’s largely about what happened in Ukraine. Basically, a crisis in Ukraine erupted after former President Viktor Yanukovych refused to sign an Association Agreement with the EU in November 2013 and sought closer ties to Russia.
 
Following radical protests from pro-Western groups, Yanukovych stepped down and fled to Russia. Moscow responded by annexing the Crimea in March 2014, sparking wide-ranging EU sanctions.
 
What is the Minsk agreement?
 
In February 2015, after negotiations in Minsk, the leaders of Germany, France, Russia and Ukraine signed an agreement to end fighting in eastern Ukraine.
 
Pro-Russian rebels in eastern Ukraine also signed the deal, which includes a ceasefire in eastern Ukraine.
 
From the onset, it seemed that adhering to the agreement on the ground would be challenging – intense fighting continued even during the talks.
 
But what does Russia have to say?
 
Russia denies Ukraine’s accusations that it is supplying troops and weapons to separatists fighting for the territory which Putin calls ‘New Russia.’ The sanctions have presented some serious challenges for Russia, but it has apparently managed to get by despite that.
 
When and why did the EU impose sanctions on Russia?
 
The EU originally introduced sanctions on 31 July 2014 for one year in response to Russia’s actions ‘destabilising the situation in Ukraine.’
 
The measures were strengthened in September 2014 and have been extended since.
 
In the latest development, in June 2017, the European Council prolonged the economic sanctions targeting specific sectors of the Russian economy until 31 January 2018.
 
On 14 December 2017, European Council President Donald Tusk announced that the EU was united on a roll-over of the economic sanctions on Russia.
 
Why does the EU keep extending the measures?
 
In March 2015, the European Council agreed to link the duration of the sanctions to the complete implementation of the Minsk agreements, which was foreseen to take place by 31 December 2015.
 
Since this did not happen, and given that the Minsk agreements have still not been fully implemented, the Council has extended the sanctions.
 
What do the economic sanctions involve?
 
The sanctions target the financial, energy and defence sectors, and the area of dual-use goods. They include:
 
  – limiting access to EU primary and secondary capital markets for 5 major Russian majority state-owned financial institutions and their majority-owned subsidiaries established outside of the EU, as well as three major Russian energy and three defence companies;
  – imposing an export and import ban on trade in arms;
  – establishing an export ban for dual-use goods for military use or military end users in Russia;
  – curtailing Russian access to certain sensitive technologies and services that can be used for oil production and exploration.
 
Is it just economic measures?
 
No, in addition to these economic sanctions, several EU measures are also in place in response to the crisis in Ukraine, including targeted individual restrictive measures, namely a visa ban and an asset freeze, currently against 150 people and 37 entities until 15 September 2017.
 
There are also the restrictive measures regarding Crimea and Sevastopol
 
The EU also said as a consequence of its non-recognition of the ‘illegal annexation of Crimea and Sevastopol by Russia,’ it would impose substantial restrictions on economic relations with Crimea and Sevastopol.
 
These measures include an import ban on goods from Crimea and Sevastopol, imposed in June 2014, as well as restrictions introduced in July on trade and investment related to certain economic sectors and infrastructure projects.
 
In addition, a full ban on investment has been in place since December 2014, along with a prohibition to supply tourism services in Crimea.
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(Source:
Dechert LLP, 14 Dec 2017.)
 
* Authors: Miriam Gonzalez, Esq., miriam.gonzalez@dechert.com; Andrew Hood, Esq., andrew.hood@dechert.com; and Roger Matthews, Esq., roger.matthews@dechert.com.  All of Dechert LLP, London.
 
The annual update of the EU’s list of dual-use items subject to export controls will shortly come into force. The UK will update its open general licenses that are affected. Businesses exporting dual-use items should check whether any of the revisions apply to their products and revise their licensing requirements accordingly. Looking ahead, a further round of updates has been agreed internationally and should be brought into effect in the EU at this time next year. This brief highlights both the main changes just brought into effect and those to be expected next year.
 
The annual revision of the EU dual-use export control list in Annex I of Regulation (EC) No 428/2009 is expected to come into force on 16 December. The revision brings the EU’s list into line with the revised lists agreed by the international export control regimes in 2016. Details of the changes, including the full text of the revised Regulation, are available on the European Commission’s website. The following summarizes the main changes.
 
Wassenaar Arrangement (Conventional Weapons and Dual-Use Items)
 
  – An updated list of acronyms and abbreviations;
  – New definitions for “biological agents” (Category 1), “Monolithic Microwave Integrate Circuit” (MMIC) (Categories 3 and 5) and “authentication” (Category 5 Part 2). The definition of “adapted for use in war” (Category 1) was removed;
  – The restructuring of Category 5 Part 2 into a more positive control list of dual-use information security items continued. Note 4 (decontrol note to Category 5, Part 2) was removed and is now incorporated into the 5A002.a. control entry; and
  – The addition of new (sub-entry) controls in Category 3 for integrated circuits with analogue-to-digital converters (3A001.a.14.) and for MMIC transmit/receive modules (3A001.b.12.), and in Category 6 for certain lasers (6A005).
 
Australia Group (Chemical and Biological weapons)
 
  – The deletion of controls on the Dengue virus (1C351.a.10.) and on verotoxin and Shiga-like ribosome inactivating proteins (1C351.d.9.);
  – Two bacteria and six toxins under 1C351 were renamed;
Several controls on biological equipment were reviewed;
  – Note that viruses controlled under 1C351.a have not been re-ordered alphabetically in the EU list, as decided by the Australia  
  – Group in 2016, as the European Commission preferred to maintain the long term consistency of its control entry numbering for pathogenic material.
 
Missile Technology Control Regime
 
  – The addition of a new control for aerothermodynamic test facilities (9B107);
  – A new sub-entry control for ultra-high temperature ceramics (1C102.f.);
  – Controls for liquid rocket propulsion (9A106) and for propellant tanks systems (9A120) were amended to include gel propellant;
  – A note to the control on flow-forming machines was amended to include missile inter-stages (2B109.b.);
  – A new note to the 9D105 software control was added to highlight that this control includes software specially designed for a manned aircraft converted to operate as an unmanned aerial vehicle.
 
Nuclear Suppliers Group
 
  – Two new sub-entry controls for plasma torches and electron beam guns in Category 2 (2B227).
 
Changes to UK Open General Export Licenses
 
To take account of these changes, the Export Control Joint Unit has announced that it will update nine open general export licenses (OGELs), specifically the schedules listing the dual-use items covered by the licenses. [FN/1] The licenses to be updated are:
 
  – export after exhibition: dual-use items;
  – export after repair/replacement under warranty: dual-use items;
  – export for repair/replacement under warranty: dual-use items;
  – dual-use items: Hong Kong Special Administrative Region;
  – low value shipments;
  – oil and gas exploration: dual-use items;
  – technology for dual-use items;
  – Turkey; and
  – cryptographic development.
 
Next Year: Changes Likely to be Brought into Force in Late 2018
 
During the course of 2017, the Export Control Regimes continued to review their control lists and agreed on further updates. In line with what has now become standard practice, these changes are all likely to be adopted into the EU Dual-Use Control List in late 2018. The following highlights the main changes in each Regime.
 
Wassenaar Arrangement (Conventional Weapons and Dual-Use Items)
 
A summary of the changes agreed in December 2017 is available via the Wassenaar website. These include:
 
  – the control entry on dimensional inspection or measuring systems, equipment, position feedback units and “electronic assemblies” is entirely rewritten (2.B.6);
  – EEPROMs, flash memories and MRAMs (3.A.1.a.2), and field programmable logic devices and Simple Programmable Logic Devices (3.A.1.a.7. Note) are deleted;
  – the minimum threshold for signal analysers is changed from 10 MHz to 40 MHz (3.A.2.c.1);
  – on intrusion software, a new decontrol (4.D.4 Note) excludes software updates or upgrades that operate only with the authorization of the owner or administrator of the system receiving it and the upgraded or updated software is not intrusion software itself nor software specially designed or modified for the generation, command and control or delivery of intrusion software. Technology for intrusion software (4.E.1 Notes and Technical Note) is decontrolled if it is used for vulnerability disclosure or cyber incident response;
  – there are no changes to the decontrols for information security items but revisions of the main control entries. 5.A.2.a now controls items whose cryptographic capability “is usable, has been activated, or can be activated by means of cryptographic activation not employing a secure mechanism” while 5.A.2.b controls items designed or modified “for converting, by means of cryptographic activation, an item not specified by Category 5 – Part 2 into an item specified by 5.A.2.a or 5.D.2.c.1 and not released by the Cryptography Note (Note 3 in Category 5 – Part 2), or for enabling, by means of cryptographic activation, additional functionality specified by 5.A.2.a of an item already specified by Category 5 – Part 2”. Corresponding changes apply to software (5.D.2.b) and technology (5.E.2.b);
  – mechanical high-speed cameras are deleted (6.A.3.a.1. and 2);
  – a new entry is introduced for dynamic wave front measuring equipment (6.A.4.f).
 
Australia Group
 
 
  – a new control on N,N-Diisopropylaminoethanethiol hydrochloride;
  – revision of the definitions of reaction vessels, reactors or agitators, as well as storage tanks, containers and receivers;
  – revision of the definition of materials for the construction for valves.
 
Missile Technology Control Regime
 
Changes agreed include:
 
  – expansion of the controls on combined cycle engines to include gel rocket motors (3.A.2);
  – clarification of the criteria for flow-forming machines (3.B.3.) and for equipment (batch mixers and continuous mixers) for propellants, chemicals and propellant production (4.B.3.a. and 4.B.3.b.);
  – a Note on flight control (10.A) that the conversion of manned aircraft to unmanned aerial vehicles (specified in 1.A.2) also includes systems, equipment and valves designed or modified that enable such transformation;
  – the replacement of references to Global Navigation Satellite Systems (GNSS) with “navigation satellite systems” which also encompass GNSS (11.A.3).
 
Nuclear Suppliers Group
 
The update to the control list for nuclear-related dual-use items include the addition of targets assemblies and components for the production of tritium (2.A.4).
 
———-
  [FN/1] The Export Control Joint Unit’s ‘Notice to Exporters’ provides details of the affected licenses.
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* Author: Nate Bolin, Esq., nate.bolin@dbr.com, Drinker Biddle & Reath LLP.
 
This week the U.S. Department of Justice (DOJ) and Netcracker Technology Corporation (NTC) announced that they had settled charges that NTC had violated U.S. controls on foreign access to sensitive data. The settlement underscores many of the export control and related compliance risks surrounding the provision and use of cloud computing services and global networks. At the same time, the Enhanced Security Plan issued by NTC and DOJ as part of the settlement provides a helpful set of benchmarks and best practices for companies that may be considering the use of cloud services and network infrastructure to house and transmit their most sensitive data.
 
According to DOJ’s settlement announcement, NTC had worked as a subcontractor on two federal government contracts with the Defense Information Systems Agency (DISA), a combat support agency of the U.S. Department of Defense (DoD), and performed some product support work from locations outside the United States, including Russia. DOJ alleged that by failing to maintain adequate controls on the cloud and network infrastructure supporting these contracts, NTC had threatened the security of sensitive data about individuals, DoD projects, networks and critical U.S. domestic communications infrastructure. DOJ further asserted that uncleared NTC foreign national employees in Russia and Ukraine worked on the DISA projects and were aware of the sensitive nature of the projects and the data stored and transmitted through the network managed by DISA.
 
U.S. law imposes a number of restrictions on the storage, transmission and use of data on cloud services and international data networks. The U.S. Export Administration Regulations (EAR) and U.S. International Traffic in Arms Regulations (ITAR) require licenses and other forms of government authorization before foreign persons may handle, transmit or access certain controlled software, technology or technical data. For example, cloud service providers and network infrastructure companies that hire foreign employees may need licenses from the Directorate of Defense Trade Controls (which oversees the ITAR) or the Bureau of Industry and Security (which enforces the EAR) before those employees can access their systems. For some sensitive data – such as sensitive technical data related to defense articles controlled by the ITAR – simply transmitting or storing the data overseas can result in a violation of the ITAR. Under current ITAR rules, this is true even if the data themselves are encrypted from end to end.
 
Companies providing cloud and data services to the U.S. government as well as prime contractors and subcontractors receiving U.S. government funding must comply with federal acquisition rules governing the handling, storage and transmission of various categories of “controlled” information. In certain cases, these rules may require the reporting of unauthorized releases and cybersecurity breaches within 72 hours.
 
The Enhanced Security Plan issued by DOJ and NTC identifies a number of key internal policies and procedures that can be implemented to meet these requirements, including:
 
  – Setting the “tone at the top” by appointing a senior corporate officer as the director of cloud and network security, with the appropriate credentials and background to understand and institute proper information handling and security procedures.
  – Developing and implementing a detailed security policy governing user access, systems monitoring and personnel screening.
  – Authenticating and tracking changes to systems software through code-signing and other means.
  – Restricting access, transmission and storage of certain sensitive data to U.S.-based servers and U.S.-based network infrastructure.
  – Controlling access by non-U.S. persons and implementing procedures for the proper vetting and licensing of non-U.S. employees and agents.
  – Conducting periodic third-party audits of the security procedures and their implementation.
 
Companies doing business with the U.S. government or handling or using export-controlled technology, software, technical data, and cloud and network services should review these policies and procedures and consider whether to include them in their own compliance programs.
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TEEX/IM TRAINING EVENTS & CONFERENCES

TE_a213
. List of Approaching Events

(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: “International Trade Webinars“; Global Training Center
*
 
Online: “On-Demand Webinars“; “General Training“; Center for Development of Security Excellence; Defense Security Service (DSS)
 
Training by Date:
 
* Dec 15: Atlanta, GA; “Incoterms 2010: Terms of Sale Seminar“; International Business Training
* Dec 19: Brussels, Belgium; “2017 Export Control Forum“; European Commission
* Dec 19: Webinar; “How to Implement an Effective Sanctions Compliance Program“; The Volkov Law Firm
* Dec 20: London, UK; “An Introduction to Importing“; Institute of Export and International Trade
 
2018
 
* Jan 17: Melbourne, FL; “Global Challenges: A Conversation with James Clapper“; Indialantic Rotary Club; info@partneringforcompliance.org; 321-952-2978
* 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; 
* 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 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: Webinar; “Fundamentals of US Reexport Controls“; ECTI; 540-433-3977
* 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 5-8: Orlando FL; “
ITAR Defense Trade Controls / EAR Export Controls Seminar
“; ECTI; 
jessica@learnexportcompliance.com
;
 540-433-3977
* 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 8: McLean, VA; “EAR Basics“; FD Associates
* 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; “Post-Brexit Planning Workshop“; 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 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
* March 13: 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
* Mar 14; 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 15-16: McLean, VA; “ITAR Fundamentals“; FD Associates
* 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 19: McLean, VA; “ITAR for the Empowered Official“; FD Associates
* 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
* 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 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 8; Stafford, VA; “Spring Golf Outing;” Society for International Affairs;
* Jun 13: San Diego, CA; “Made in America, Buy America, or Buy American: Qualify your Goods and Increase Sales“; Global Trade Academy
* Jun 13-14: McLean, VA; “ITAR Fundamentals“; FD Associates
* 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 16-18: National Harbor, Maryland; “2018 Summer Basics Conference“; Society for International Affairs
* Jul 17: Los Angeles, CA; “Advanced Classification of Plastics and Rubber“; Global Trade Academy
* Jul 19: McLean, VA; “ITAR for the Empowered Official“; FD Associates
* 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 13: McLean, VA; “EAR Basics“; FD Associates
* 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 18-19: McLean, VA; “ITAR Fundamentals“; FD Associates
* 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 15: McLean, VA; “ITAR For the Empowered Official“; FD Associates
* 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

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ENEDITOR’S NOTES

EN_a014
. Full Circle Compliance Congratulates its Students on Earning their Masters Degrees in International Trade Compliance
(Source: Full Circle Compliance, 15 Dec 2017.) 
  
Full Circle Compliance (FCC) would like to congratulate its students on receiving the Master of Science in International Trade Compliance degree from the University of Liverpool (UofL) in London.
 

The graduated students, from left to right: George Palmer-Palmos, Marco Crombach, Sylvia Coburg, Carmen Fellows, Sandra Roberts, Erik Wijers, and Martijn Antzoulatos-Borgstein.
 

Lecturers James E. Bartlett III, Ghislaine Gillessen, and Michael Farrell took part in the ceremonies and wish all the students well and hope that they continue their vocation.   
 
 
The Executive Master of Science in International Trade Compliance degree (EMITC) program was jointly developed by FCC and UofL, with assistance of the members of the EMITC Board of Advisors: Chester Paul Beach, Jonathan Blackbranch, Andrea Dynes, Joshua Fitzhugh, David Hayes, Beth Ann Johnson, Peter Lichtenbaum, and James Min. 

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EN_a115
. Bartlett’s Unfamiliar Quotations

(Source: Editor)

 

J. Paul Getty (Jean Paul Getty; 15 Dec 1892 – 6 Jun 1976; was an American industrialist. He founded the Getty Oil Company, and in 1957 Fortune magazine named him the richest living American, while the 1966 Guinness Book of Records named him as the world’s richest private citizen. At his death, he was worth more than $2 billion (approximately $8.4 billion in 2016)).
  – “The man who comes up with a means for doing or producing almost anything better, faster or more economically has his future and his fortune at his fingertips.”
  – “I hate to be a failure. I hate and regret the failure of my marriages. I would gladly give all my millions for just one lasting marital success.”
 
Friday funnies:
 
Q. What did the zero say to the eight? 
A. “What’s that on your head?” 
  — Elizabeth Conant, Dekalb, Il

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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: 8 Dec 2017:
82 FR 57821-57825: Civil Monetary Penalty Adjustments for Inflation 
 
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.
 

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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.

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