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18-0117 Wednesday “Daily Bugle”

18-0117 Wednesday “Daily Bugle”

Wednesday, 17 January 2018

TOP
The 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 
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[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 Certification Outage for Tonight
  4. DHS/CBP Announces ACE Production FTZ Deployment, 18 Jan
  5. DHS/CBP Announces Closure of Several Ports Due to Weather, 17 Jan
  6. DHS/CBP Posts Update on 2018 Customs Broker Triennial Status Report and Fee Submission
  7. State/DDTC Posts Name Change Announcement for Signalis SAS
  8. President Continues National Emergency with Respect to Terrorists Who Threaten to Disrupt the Middle East Peace Process
  9. EU Corrects Dual-Use Regulation
  10. UK DIT/ECO Updates Consolidated Control List of Strategic Military and Dual-Use Items
  1. Expeditors News: “United Kingdom Issues Guidance on Trade Tariff Correlation Tables”
  2. Forbes: “New Changes to Wassenaar Arrangement Export Controls Will Benefit Cybersecurity”
  3. Reuters: “U.S. Lawmakers Urge AT&T to Cut Commercial Ties with Huawei”
  4. Access Now: “European Parliament Must Vote to Stop Surveillance Equipment”
  1. B.D. Linney, B.J. Fleming & C. Griffin: “United States Issues “Last Chance” Waiver of Iran Sanctions and Steps Up Sanctions Against Iranian Weapons Proliferators and Human Rights Abusers”
  2. Global Trade News: “Weise Wednesday: Will GSP Renewal Include a Retroactive Provision for Duty Refunds?”
  3. M Bettini: “The New ELD Mandate is Likely to Create New Challenges for Shippers across the U.S.”
  4. Gary Stanley’s ECR Tip of the Day
  1. Full Circle Compliance and the Netherlands Defense Academy Will Present “Winter School at the Castle”, 5-9 Feb 2018 in Breda, the Netherlands
  2. ECS Presents ITAR/EAR Critical Compliance & Agreement Workshop on March 20-21 in San Diego, CA
  1. Bartlett’s Unfamiliar Quotations 
  2. Are Your Copies of Regulations Up to Date? Latest Amendments: ATF (15 Jan 2016), Customs (8 Dec 2017), DOD/NISPOM (18 May 2016), EAR (8 Jan 2018), FACR/OFAC (28 Dec 2017), FTR (20 Sep 2017), HTSUS (1 Jan 2018), ITAR (3 Jan 2018) 
  3. 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

 

* Defense; Defense Acquisition Regulations System; NOTICES; Agency Information Collection Activities; Proposals, Submissions, and Approvals: Defense Federal Acquisition Regulation Supplement; Independent Research and Development Technical Descriptions [Publication Date: 18 January 2018.]   

* President; ADMINISTRATIVE ORDERS; Middle East Peace Process, Terrorists Who Threaten to Disrupt; Continuation of National Emergency (Notice of January 17, 2018) [Publication Date: 18 January 2018.]
 
[Editor’s Note: The President’s item that will be published in tomorrow’s Federal Register, is already included in today’s Daily Bugle, item #8.]
 
* U.S. Customs and Border Protection; NOTICES [Publication Date: 18 January 2018.]:
  – Automated Commercial Environment Becoming the Sole Authorized Electronic Data Interchange System for Processing Electronic Drawback Filings
  – Modification of the National Customs Automation Program Test Regarding Reconciliation and Transition of the Test from the Automated Commercial System to the Automated Commercial Environment

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

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

(Source:
CSMS #18-000059, 17 Jan 2018.)
 
There will be an ACE CERTIFICATION Outage this evening, Wednesday, January 17, 2018 between 1700 ET and 2130 ET for ACE Infrastructure maintenance.
* * * * * * * * * * * * * * * * * * * * 

(Source:
CSMS #18-000061, 17 Jan 2018.)
 
There will be an ACE PRODUCTION FTZ (Foreign Trade Zone) deployment on Thursday morning, 18 January 2018, during the 0500 – 0700 ET implementation window.

To be deployed is a Resolution to the following FTZ message processing item:

  – CFTZ-734 – issues accepting Permit-to-Transfers (PTT) for Split air waybills

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

(Source:
DHS/CBP, Cargo System Messaging Service)
 
  (1) Local Closure for Port 1603 (Greenville)
(Source: CSMS #18-000055, 17 Jan 2018.)
 
The Port of Greenville, SC, Port Office will be closed on Wednesday, January 17, 2018 due to inclement weather.
 
On January 17, 2018, a local closure day is granted to all who file entries at the Port of Greenville, SC (1603). CBP is extending an additional day, without penalty, for any entry summaries and payments of duties that were due on January 17, 2018, in the Port of Greenville, SC.
 
If you have questions please contact: Area Port Director Robert Fencel at (843) 579-6501 or Acting Assistant Port Director Steve Talley at (843) 579-6509.
 
Depending on road conditions, the port projects reopening and resuming normal business operations at 08:00 hours, Thursday, January 18, 2018.
 
  (2) Local Closure for Port 1512
(Source: CSMS #18-000056, 17 Jan 2018.)
 
Commercial trade operations at Port 1512 (Charlotte, NC) are temporarily suspended for Wednesday January 17, 2018 due to inclement weather conditions.
 
  (3) Local Closure Day for Ports 2101, 5301, 5309, 5310, and 5311
(Source: CSMS #18-000060, 17 Jan 2018.)
 
Commercial trade operations at the Ports of 2101 (Port Arthur), 5301 (Houston Seaport), 5309 (Houston Airports), 5310 (Galveston), and 5311 (Freeport) are temporarily suspended for Wednesday, January 17, 2018, due to inclement weather conditions.
 
On January 17, 2018, a local closure day is granted to all who file entries at the Ports of 2101 (Port Arthur), 5301 (Houston Seaport), 5309 (Houston Airports), 5310 (Galveston), and 5311 (Freeport). CBP is extending an additional day, without penalty, for any entry summaries and payment of duties that will be due on January 17, 2018 in Ports 2101, 5301, 5309, 5310, and 5311.
 
Questions can be addressed to SCBPO Jessica Gimmler at 281-985-6732.
 
  – Related CSMS No. 18-000048
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(Source:
CSMS #18-000057, 17 Jan 2018.)
 
The 2018 Customs Broker Triennial Status Report and fee required of all licensed customs brokers deadline for submission is Feb. 28, 2018 at 11:59 p.m. EST.
 
Submissions are being collected online via Pay.gov. Pay.gov accepts credit card, debit card, and digital wallet (i.e. PayPal and Amazon Pay) payments. No additional fees are charged for any payments, receipts are provided electronically and all reports/fees can be made at pay.gov eliminating the need to work with each port through which a broker’s license was delivered.
 
Each entity holding a broker’s license must file a status report with CBP and pay a processing fee of $100 every three years, in accordance with 19 CFR § 111.30(d). Licensed customs brokers who are also permitted must include an employee list with each status report submitted to CBP in accordance with 19 CFR § 111.28(b). In addition, each individually licensed broker must state whether or not he/she still meets the applicable requirements of 19 CFR § 111.11 and 111.19 and has not engaged in any conduct that could constitute grounds for suspension or revocation under section 111.53. Broker employee lists and any additional detail can be uploaded as a PDF file attachment during the Pay.gov online process.
 
Individuals are considered to be “actively engaged” in transacting customs business when they are currently transacting or have recently transacted customs business on behalf of others as a sole proprietor, or when they are employed by a licensed customs broker which is currently transacting or has recently transacted customs business on behalf of others. Those who work for another broker and are not directly involved in any activities which fall under the scope of the definition of customs business may report that they are not actively engaged in customs business.
 
Partnerships, corporations, and associations must also report to customs in a status report whether or not they are actively engaged in customs business. An organization which currently transacts or recently transacted customs business on behalf of others should report that they are “actively engaged” in customs business.
 
Brokerages may report on behalf of licensed broker staff, however, only one status report/payment transaction can be processed at a time in pay.gov.
 
* It is recommended that brokers/brokerages create an account with pay.gov prior to submitting the Triennial report and fee. This provides for an accessible history of payment transactions.
 
* Before advancing to the payment information screen, select “PDF preview” at the bottom of the form and save or print the completed form for your record.
 
* To provide for receipts to multiple e-mail accounts, check the box indicating you would like to receive an e-mail confirmation and enter as many e-mail addresses as needed separated by a comma.
 
Failure to file a Triennial Status Report will result in the customs broker’s license to be revoked by operation of law, without prejudice.
 
CBP encourages all brokers to submit the report and fee electronically via Pay.gov; however, CBP will accept a paper status report and payment at the port that originally delivered the license.
 
For more information, please go here.
 
  – Related CSMS No. 17-000773
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OGS_a77. State/DDTC Posts Name Change Announcement for Signalis SAS
(Source: State/DDTC, 16 Jan 2018.) [Excerpts.]
 
Effective immediately, Signalis SAS will change as follows: Airbus Defence and Space SAS. Due to the volume of authorizations requiring amendments to reflect this change, the Deputy Assistant Secretary for Defense Trade Controls is exercising the authority under 22 CFR 126.3 to waive the requirement for amendments to change currently approved license authorizations. The amendment waiver does not apply to approved or pending agreements. …  
 
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OGS_a88. President Continues National Emergency with Respect to Terrorists Who Threaten to Disrupt the Middle East Peace Process
(Source: The White House, 17 Jan 2018.)
 
On January 23, 1995, by Executive Order 12947, the President declared a national emergency pursuant to the International Emergency Economic Powers Act (50 U.S.C. 1701-1706) to deal with the unusual and extraordinary threat to the national security, foreign policy, and economy of the United States constituted by grave acts of violence committed by foreign terrorists that disrupt the Middle East peace process.  On August 20, 1998, by Executive Order 13099, the President modified the Annex to Executive Order 12947 to identify four additional persons who threaten to disrupt the Middle East peace process.  On February 16, 2005, by Executive Order 13372, the President clarified the steps taken in Executive Order 12947.
 
These terrorist activities continue to threaten the Middle East peace process and to pose an unusual and extraordinary threat to the national security, foreign policy, and economy of the United States.  For this reason, the national emergency declared on January 23, 1995, and the measures adopted to deal with that emergency must continue in effect beyond January 23, 2018.  In accordance with section 202(d) of the National Emergencies Act (50 U.S.C. 1622(d)), I am, therefore, continuing for 1 year the national emergency with respect to foreign terrorists who threaten to disrupt the Middle East peace process declared in Executive Order 12947.
 
This notice shall be published in the Federal Register and transmitted to the Congress.
 
DONALD J. TRUMP
THE WHITE HOUSE,
January 17, 2018.
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OGS_a99. EU Corrects Dual-Use Regulation
(Source: Official Journal of the European Union, 17 Jan 2018.)
 
Corrigenda:
* Corrigendum to 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 (OJ L 334, 15.12.2017)
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OGS_a1010. UK DIT/ECO Updates Consolidated Control List of Strategic Military and Dual-Use Items
(Source:
UK DIT/ECO
, 17 Jan 2018.)
 
The Export Control Joint Unit (ECJU) has updated the consolidated control list of strategic military and dual-use items that require export authorisation. This takes account of the changes made to the EU dual-use export control list (Annex 1) at the end of last year. See notice to exporters 2017/27.
 
In respect of extant licences you hold, some may include items whose control entry has changed. ECJU takes the view that as long as the description on the licence properly describes the items to be exported, then the licence remains valid.
 
Should the item in question no longer be specified by the new control text (if the control has been deleted or the parameters changed, for example) then the licence doesn’t need to be used for export purposes from the day the amending legislation came into force.
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NWSNEWS

NWS_a1
11. Expeditors News: “United Kingdom Issues Guidance on Trade Tariff Correlation Tables”
(Source: Expeditors News, 16 Jan 2018.)
 
On 10 January 2018, the United Kingdom (UK) issued guidance on Trade Tariff: Correlation Tables indicating changes to the combined nomenclature for 2018.
 
The guidance contains tables that show the proposed combined nomenclature for 2018 and the tariff classification codes for 2017 that the 2018 codes will replace.
 
The European Union seeks to minimize commodity code changes currently undergoing review for revision in 2018; therefor, the code changes for 2018 include a low number of changes. Additionally, the World Customs Organization have started planning and reviewing for the changes for 2018.
 
The UK guidance can be found here.

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NWS_a212. Forbes: “New Changes to Wassenaar Arrangement Export Controls Will Benefit Cybersecurity”
(Source: Forbes, 16 Jan 2018.) [Excerpts.]
 
In December, new export control rules for computer network intrusion software were published by the Wassenaar Arrangement, an international body that governs trade in goods with military and civilian applications for 42 member states. These new rules represent a significant victory for computer security practitioners in a policy dialog that has been going on for many years. However, there is important work that remains to be done.
 
Export controls have long been a factor in the computer security world. In the 90s, firewall and Web server software was often sold in domestic and export versions with different cryptographic key lengths. More recently, offensive network intrusion tools such as exploit toolkits have come under scrutiny by regulators. These tools are sometimes used by regimes with weak human rights and civil liberties records to spy on their own citizens. Clearly, it is not in the interest of western countries to supply technology that supports this kind of repressive activity. …

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NWS_a313. Reuters: “U.S. Lawmakers Urge AT&T to Cut Commercial Ties with Huawei”
(Source: Reuters, 16 Jan 2018.) [Excerpts.] 
 
U.S. lawmakers are urging AT&T Inc, the No. 2 wireless carrier, to cut commercial ties to Chinese phone maker Huawei Technologies Co Ltd and oppose plans by telecom operator China Mobile Ltd to enter the U.S. market because of national security concerns, two congressional aides said.
 
The warning comes after the administration of U.S. President Donald Trump took a harder line on policies initiated by his predecessor Barack Obama on issues ranging from Beijing’s role in restraining North Korea to Chinese efforts to acquire U.S. strategic industries.
 
Earlier this month, AT&T was forced to scrap a plan to offer its customers Huawei [HWT.UL] handsets after some members of Congress lobbied against the idea with federal regulators, sources told Reuters.
 
The U.S. government has also blocked a string of Chinese acquisitions over national security concerns, including Ant Financial’s proposed purchase of U.S. money transfer company MoneyGram International Inc.
 
The lawmakers are also advising U.S. firms that if they have ties to Huawei or China Mobile, it could hamper their ability to do business with the U.S. government, one aide said, requesting anonymity because they were not authorized to speak publicly. … 

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NWS_a414
. Access Now: “European Parliament Must Vote to Stop Surveillance Equipment”

(Source: Scoop, 17 Jan 2018.) [Excerpts.]
 
European Parliament’s (EP) vote tomorrow could stop the export of dangerous surveillance equipment to rights-abusing governments, according to a coalition of international NGOs. The vote, on European Union’s (EU) export control regime for dual-use items, which have civilian and military uses, is an important step forward to protect journalists, dissidents and human rights defenders all over the world from human rights violations caused by surveillance technologies originating from EU countries. …
 
The EP’s proposal would require Member States to deny license applications if the export of a surveillance technology is likely to lead to serious human rights violations. Authorities will be required to consider the legal framework governing the use of any surveillance technology in the country that it is being exported to, and assess an exports’ impact on the right to privacy, the right to data protection, freedom of speech, and freedom of assembly and association.
 
Crucially, improved transparency measures will also require Member States to record, and make publicly available, licensing data regarding approved and denied exports, allowing democratic oversight bodies, individuals, civil society and journalists to gain insight into the secretive global trade in surveillance technologies. …

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COMMCOMMENTARY

COMM_a0115
. B.D. Linney, B.J. Fleming & C. Griffin: “United States Issues “Last Chance” Waiver of Iran Sanctions and Steps Up Sanctions Against Iranian Weapons Proliferators and Human Rights Abusers”

 
* Authors: Barbara D. Linney, Esq., blinney@milchev.com, 202-626-5806; Brian J. Fleming, Esq., bfleming@milchev.com, 202-626-5871; and Collmann Griffin, Esq., cgriffin@milchev.com, 202-626-5836. All of Miller & Chevalier Chartered.
 
On Friday, January 12, 2018, President Donald Trump waived secondary sanctions against Iran for a further 120 days, providing a “last chance” for U.S. allies to agree to “fix the terrible flaws” of the Joint Comprehensive Plan of Action (JCPOA). In a statement issued by the White House regarding the waiver, the president also challenged Congress to pass acceptable Iran sanctions legislation. Simultaneously, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) announced the designation of 14 entities and individuals under existing executive orders that target human rights abuses, censorship, and proliferation of weapons of mass destruction (WMD). Friday’s actions and statements have implications for the future of the JCPOA, the future of Iran sanctions more broadly, and the evolving compliance challenges that U.S. and non-U.S. companies face with respect to U.S. primary and secondary sanctions against Iran.
 
The Future of the JCPOA and Multilateral Iran Sanctions
 
The president’s statement challenges U.S. allies not only to join the United States in strengthening the JCPOA but also to impose measures targeting the Islamic Revolutionary Guard Corps and Hezbollah, as well as Iran’s ballistic missile program, cyber threats, and human rights abuses. The other parties to the JCPOA-China, France, Germany, Russia, and the United Kingdom-have rejected the president’s prior calls to renegotiate the deal and it remains to be seen whether the “last chance” ultimatum will bring the parties together or drive them further apart. Although it is within the president’s power to decline to issue further waivers, such a decision would carry risks. If the United States proceeds unilaterally, there is a risk that countries, particularly members of the European Union who have embraced the JCPOA, will take action under “blocking statutes” that would effectively prohibit persons subject to their jurisdiction from complying with U.S. secondary sanctions. However, even if the other parties to the JCPOA are able to reach agreement with the administration on a stronger deal, congressional interest in Iran remains high and the possibility that the administration and Congress may not reach agreement on new Iran sanctions legislation gives rise to additional uncertainty regarding both the future of the JCPOA and the future of Iran sanctions, as discussed below.  
 
In the meantime, businesses that re-entered the Iranian market in the wake of the JCPOA or are considering doing so in the future face another four months of uncertainty and related compliance challenges. For more information on JCPOA-related compliance challenges, see our previously published articles here and here
 
The Future of U.S.-Iran Sanctions
 
Although the 60-day period established by the U.S. Iran Nuclear Review Act of 2015 (INARA) during which Congress could have considered legislation reinstating secondary sanctions with respect to Iran on an expedited basis has expired, discussions between Congress and the administration have been ongoing since the president’s refusal to certify Iran’s compliance with the JCPOA pursuant to INARA with a goal of achieving a bipartisan legislative approach that would amend the JCPOA consistent with the president’s Iran strategy. 
 
In a statement issued by the White House regarding the waiver, the president challenged Congress to pass acceptable Iran sanctions legislation. He outlined four “critical components” that would have to be met by any new legislation:
 
  – Require Iran to allow “immediate inspections” at all sites upon request by international inspectors;
  – Ensure that Iran does not “even come close” to possessing a nuclear weapon;
  – Severe sanctions for Iran’s long-range missile programs; and 
  – No expiration date-the sanctions must remain in place “forever.” 
 
Failure of Iran to comply with these critical conditions would result in “automatic resumption” of U.S. nuclear sanctions (i.e., the secondary sanctions waived under the JCPOA). However, as Congress and the president currently are at odds over a number of issues, prospects for achieving a bipartisan solution that meets the president’s criteria remain uncertain.
 
The New Designations – Implications for Compliance
 
The new designations stopped short of reimposing sanctions on entities or individuals removed from OFAC’s List of Specially Designated Nationals and Blocked Persons (SDN List) upon implementation of the JCPOA two years ago. Rather, the designations include individuals and entities in Iran who have been responsible for human rights abuses and censorship in Iran and individuals and entities in Iran, China, and Malaysia that are affiliated with or have provided support for entities previously designated for involvement in Iran’s proliferation of WMDs. Designation of the non-Iranian individuals and entities highlights the risks that non-U.S. persons face if they provide support for persons on the SDN List, including by supplying diverted U.S. origin goods and technology. The list of items supplied to Iran by these entities includes radars, military electronics, avionics and control systems, gyrocompasses, training simulators, test equipment, lead zirconium tritanate (PZT) items, and missile guidance technology. As Friday’s actions demonstrate, OFAC is closely scrutinizing Iran’s WMD supply chain. Consequently, those companies-both U.S. and non-U.S. -who manufacture and supply such items or their parts and components should re-examine their existing compliance programs, with particular emphasis placed on “know your customer” due diligence to ensure that they are not selling such items to persons who present an unacceptable diversion risk with respect to Iran.

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COMM_a2
16. Global Trade News: “Weise Wednesday: Will GSP Renewal Include a Retroactive Provision for Duty Refunds?”

(Source: Integration Point Blog, 17 Jan 2018.)
 
Welcome to Weise Wednesday! Every week we will share a brief Q&A with the former U.S. Commissioner of Customs, Mr. George Weise. Please send questions to AskGeorge@IntegrationPoint.com.
 
Q: Will the renewal of GSP have an automatic amendment that provides a refund for the payment of duties? Can I claim my refund via post summary correction (PSC)?
 
A: As I discussed in a previous blogpost, Congress was not likely to pass legislation to extend the Generalized System of Preferences (GSP) before its scheduled expiration date of December 31, 2017, and they did not. It is still too early in the year to predict when the Congress might act to extend the program and whether a retroactive provision will be included.
 
The program has expired periodically since its creation in 1976, but has always been renewed by the Congress, often after long lapses. Fortunately, all previous GSP renewals after such lapses have included a retroactive clause entitling importers to receive refunds for duties paid on GSP-eligible goods imported during the lapse period. Hopefully, that will happen again, but it is not guaranteed. As in all prior lapses of the program, importers will be required to pay applicable duties upon importations of such goods occurring after December 31, 2017.
 
Regarding the process for obtaining refunds under such circumstances, CBP has stated that for importations made after the program’s expiration, “CBP will not allow post importation of GSP claims made via PSC or protest.” CBP is urging all importers to continue to flag GSP importations at the time of entry with the SPI “A” even though duties will be collected. CBP is developing programming intended to facilitate the refund of such duties if GSP is renewed with a retroactive refund clause.

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COMM_a3
17
. M Bettini: “The New ELD Mandate is Likely to Create New Challenges for Shippers across the U.S.”

(Source:
Shap Talk, Jan 2018.)
 
* Author: Maria Bettini, Domestic Pricing Supervisor, Shapiro.
 
Many of the largest trucking companies had Electronic Logging Devices (ELDs) installed in their fleets several months ago and they are ready for the new challenges that ELDs will bring. Unfortunately, the same cannot be said for many smaller or medium-sized trucking companies.
 
Since December 18, 2017, truck drivers not adhering to ELD stipulations who were stopped by police or at weight stations may have received citations for ELD non-compliance. However, beginning April 1st, federal officials will start putting non-compliant drivers out-of-service.
 
The ELD mandate will affect more than just the trucking companies. The ELD mandate presents challenges beyond the actual truck move. In the highly intermodal supply chains of today, a loss of productivity in one link can intensify inefficiencies in other areas. Hence, an elongated loading or unloading time can create problems for truckers trying to comply with the new Hours of Operations (HOS) allowed under ELD reform.
 
Shippers will be affected not only by higher trucking rates, but also by longer transit times. Moves that would normally take 1 day are now likely to take 2 days. According to the JOC, truckers expect to lose between 2 to 8 percent of their productivity.
 
Another area of concern for truckers and shippers alike is congestion at the terminals and on the highways. Per the American Transportation Research Institute, “truckers experience 996 million hours of delays on U.S. highways because of congestion.”
 
According to a recent survey conducted by the JOC, many small to mid-size shippers are not prepared for the changes presented by the ELD mandate. The survey results indicate some shippers are slow to be mindful of the rate hikes, or expect the overall price increase not to be that dramatic. They also show that one-fifth of the companies surveyed have done nothing to prepare for the mandate.
 
Properly managing time at the port, truck terminals and shipper docks will be the biggest challenge in 2018 for both shippers and truckers.

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COMM_a4
18. Gary Stanley’s ECR Tip of the Day

(Source: Defense and Export-Import Update; available by subscription from
gstanley@glstrade.com
)
 
* Author: Gary Stanley, Esq., Global Legal Services, PC, (202) 352-3059,
gstanley@glstrade.com
.
 
EAR § 734.13(b) provides that any release in the United States of “technology” or source code to a foreign person is a deemed export to the foreign person’s most recent country of citizenship or permanent residency. Likewise, EAR § 734.14(b) provides that any release outside of the United States of “technology” or source code subject to the EAR to a foreign person of another country is a deemed reexport to the foreign person’s most recent country of citizenship or permanent residency, except as described in EAR § 734.20. These provisions confirm BIS’ long standing policy of looking to a foreign person’s last acquired citizenship or permanent residency to determine in most instances the person’s nationality for U.S. export control purposes.
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TEEX/IM TRAINING EVENTS & CONFERENCES

TE_a119.

Full Circle Compliance and the Netherlands Defense Academy Will Present “Winter School at the Castle”, 5-9 Feb 2018 in Breda, the Netherlands

 
The Netherlands Defense Academy presents a winter seminar, “Compliance and Integrity in International Military Trade,” 5-9 February 2018, in the charming town of Breda, the Netherlands, an hour’s drive south of Amsterdam. Many hotels and restaurants are within walking distance of the Defense Academy, which is the Dutch equivalent of the U.S. military academies. The course is designed for NATO+ military officers, government employees, and employees of NATO+ defense contractors. Participants will receive certificates of completion from the Academy.

*
Registration & Information: please, complete the seminar registration form and send a copy to events@fullcirclecompliance.eu. More information is available 
at the Full Circle Compliance website or via events@fullcirclecompliance.eu

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TE_a220
. ECS Presents ITAR/EAR Critical Compliance & Agreement Workshop on March 20-21 in San Diego, CA

(Source: Suzanne Palmer, spalmer@exportcompliancesolutions.com)
 
* What: ECS Presents ITAR/EAR Critical Compliance & Agreement Workshop
* When: March 21-22, 2018
* Sponsor: Export Compliance Solutions (ECS)
* ECS Speaker Panel:  Suzanne Palmer, Lisa Bencivenga
* Register HERE or by calling 866-238-4018 or e-mail spalmer@exportcompliancesolutions.com
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ENEDITOR’S NOTES

 

Anne Bronte (17 Jan 1820 – 28 May 1849; was an English novelist and poet, the youngest member of the Brontë literary family. Her sisters, Charlotte and Emily, are well known as poets and novelists.)
  – “A man must have something to grumble about; and if he can’t complain that his wife harries him to death with her perversity and ill-humour, he must complain that she wears him out with her kindness and gentleness.”
  – “He that dares not grasp the thorn should never crave the rose.”    
Benjamin Franklin (17 Jan 1706 – 17 Apr 1790; was a renowned polymath and one of the Founding Fathers of the United States. Franklin was a leading author, printer, political theorist, politician, postmaster, scientist, inventor, humorist, civic activist, statesman, and diplomat. As a scientist, he was a major figure in the American Enlightenment and the history of physics for his discoveries and theories regarding electricity. As an inventor, he is known for the lightning rod, bifocals, and the Franklin stove, among other inventions. He founded many civic organizations, including Philadelphia’s fire department and the University of Pennsylvania.
  – “It takes many good deeds to build a good reputation, and only one bad one to lose it.”
  – “Beware of little expenses. A small leak will sink a great ship.”

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EN_a322
. 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.  The latest amendments to applicable regulations are listed below.
 
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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. 
 
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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 Amendments: 8 Jan 2018: 83 FR 709-711: Revisions, Clarifications, and Technical Corrections to the Export Administration Regulations; Correction; and 83 FR 706-709: Civil Monetary Penalty Adjustments for Inflation

  
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FOREIGN ASSETS CONTROL REGULATIONS (OFAC FACR)
: 31 CFR, Parts 500-599, Embargoes, Sanctions, Executive Orders
  – Last Amendment: 28 Dec 2017: 
82 FR 61450-61451: Iraq Stabilization and Insurgency Sanctions Regulations

 
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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 (1 Jan 2018) 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, Census/AES guidance, and to many errors contained in the official text. 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.
 
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HARMONIZED TARIFF SCHEDULE OF THE UNITED STATES (HTS, HTSA or HTSUSA)
, 1 Jan 2018: 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: 1 Jan 2018: Updated HTS for 2018

  – 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: 3 Jan 2018: 83 FR 234-237: Department of State 2018 Civil Monetary Penalties Inflationary Adjustment
  – The only available fully updated copy (latest edition: 3 Jan 2018) 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_a0323
Weekly Highlights of the Daily Bugle Top Stories

(Source: Editor) 

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

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EPEDITORIAL POLICY

* The Ex/Im Daily Update is a publication of FCC Advisory B.V., compiled by: Editor, James E. Bartlett III; Assistant Editors, Alexander P. Bosch and Vincent J.A. Goossen; and Events & Jobs Editor, John Bartlett. The Ex/Im Daily Update is emailed every business day to approximately 8,000 readers of changes to defense and high-tech trade laws and regulations. We check the following sources daily: Federal Register, Congressional Record, Commerce/AES, Commerce/BIS, DHS/CBP, DOJ/ATF, DoD/DSS, DoD/DTSA, State/DDTC, Treasury/OFAC, White House, and similar websites of Australia, Canada, U.K., and other countries and international organizations.  Due to space limitations, we do not post Arms Sales notifications, Denied Party listings, or Customs AD/CVD items.

* 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, provided attribution is given to “The Export/Import Daily Bugle of (date)”. Any further use of contributors’ material, however, must comply with applicable copyright laws.

* CAVEAT: The contents of this newsletter 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.

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