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18-0118 Thursday “Daily Bugle”

18-0118 Thursday “Daily Bugle”

Thursday, 18 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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  1. DoD/DARS Seeks Comments on Independent Research and Development Technical Descriptions 
  2. DHS/CBP Announces ACE Becoming the Sole CBP-Authorized EDI System for Processing Electronic Drawback Filings 
  3. DHS/CBP Modifies NCAP Test Regarding Reconciliation and Transition of the Test from ACS to ACE 
  1. Items Scheduled for Publication in Future Federal Register Editions
  2. Commerce/Census: “Tips on How to Resolve AES Fatal Errors”
  3. Commerce/BIS: (No new postings.)
  4. DoD/DSCA Releases Policy Memo 18-01
  5. State/DDTC: (No new postings.)
  1. The Brussels Time: “EU Must Not Help Dictators Spy on Their Own Citizens”
  2. ST&R Trade Report: “CBP Increasing First Sale Rule Enforcement”
  1. A. Peng & J. Cowley: “China – What to Watch: Draft Export Control Law of China”
  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. “17th Annual ‘Partnering for Compliance™’ East Export/Import Control Conference” on 6-9 Mar in Orlando, FL. UPDATE: NIST/Computer Security Division Confirmed
  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

1. DoD/DARS Seeks Comments on Independent Research and Development Technical Descriptions

(Source: Federal Register, 18 Jan 2018.)
 
83 FR 2622-2623: Information Collection Requirement; Defense Federal Acquisition Regulation Supplement; Independent Research and Development Technical Descriptions
* AGENCY: Defense Acquisition Regulations System, Department of Defense (DoD).
* ACTION: Notice and request for comments regarding a proposed extension of an approved information collection requirement.
* DATES: DoD will consider all comments received by March 19, 2018. …
* FOR FURTHER INFORMATION CONTACT: Mr. Mark Gomersall, 571-372-6099. The information collection requirements addressed in this notice are available electronically on the internet. Paper copies are available from Mr. Mark Gomersall, OUSD (AT&L) DPAP (DARS), Room 3B941, 3060 Defense Pentagon, Washington, DC 20301-3060.
* SUPPLEMENTARY INFORMATION:
   – Title, Associated Form, and OMB Number: Defense Federal Acquisition Regulation Supplement (DFARS), Independent Research and Development Technical Descriptions; OMB Control Number 0704-0483.
   – Needs and Uses: DFARS 231.205-18 requires contractors to report independent research and development (IR&D) projects to the Defense Technical Information Center (DTIC) using DTIC’s online IR&D database. The data provide in-process information on IR&D projects for which DoD reimburses the contractor as an allowable indirect expense. In addition to improving the Department’s ability to determine whether contractor IR&D costs are allowable, the data provide visibility into the technical content of industry IR&D activities to meet DoD needs. …
 
  Jennifer L. Hawes, Regulatory Control Officer, Defense Acquisition Regulations System.

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EXIM_a2

2. DHS/CBP Announces ACE Becoming the Sole CBP-Authorized EDI System for Processing Electronic Drawback Filings

(Source: Federal Register, 18 Jan 2018.)
 
83 FR 2644-2645: Automated Commercial Environment (ACE) Becoming the Sole CBP-Authorized Electronic Data Interchange (EDI) System for Processing Electronic Drawback Filings
* AGENCY: U.S. Customs and Border Protection, Department of Homeland Security.
* ACTION: General notice.
* SUMMARY: This document announces that the Automated Commercial Environment (ACE) will be the sole electronic data interchange (EDI) system authorized by U.S. Customs and Border Protection (CBP) for processing electronic drawback filings under part 181 (NAFTA drawback) and part 191 (non-TFTEA drawback) of Title 19 of the Code of Federal Regulations. This document also announces that the Automated Commercial System (ACS) will no longer be a CBP-authorized EDI system for purposes of processing such filings. This notice further announces the deployment of a new ACE filing code for all electronic drawback filings, replacing the six distinct drawback codes previously filed in ACS.
* DATES: As of February 24, 2018, ACE will be the sole CBP-authorized EDI system for processing drawback filings under part 181 (NAFTA drawback) and part 191 (non-TFTEA drawback) of Title 19 of the Code of Federal Regulations, and ACS will no longer be a CBP-authorized EDI system for such purpose.
* FOR FURTHER INFORMATION CONTACT: Randy Mitchell, Commercial Operations and Entry Division, Trade Policy and Programs, Office of Trade at (202) 863-6532 or RANDY.MITCHELL@CBP.DHS.GOV.
* SUPPLEMENTARY INFORMATION: …
  This notice announces that, beginning February 24, 2018, ACE will become the sole CBP-authorized EDI system for electronic filings of NAFTA drawback (19 CFR part 181) and non-TFTEA drawback (19 CFR part 191), and ACS will no longer be a CBP-authorized EDI system for purposes of processing these electronic filings. A separate Federal Register document will be published containing proposed regulations regarding TFTEA-Drawback claims, which are those claims filed under 19 U.S.C. 1313, as amended by the Trade Facilitation and Trade Enforcement Act of 2015 (TFTEA) (Pub. L. 114-125, 130 Stat. 122, February 24, 2016). The electronic filings referred to in this document, i.e., non-TFTEA drawback claims, are limited to drawback claims filed in compliance with the regulations in parts 181 and 191 and under 19 U.S.C. 1313, as it was in effect prior to the TFTEA amendments.
  CBP announces the deployment of a new ACE filing code 47 for drawback as of February 24, 2018, which will replace the following six drawback codes previously filed in ACS:
 
  41–Direct Identification Manufacturing Drawback
  42–Direct Identification Unused Merchandise Drawback
  43–Rejected Merchandise Drawback
  44–Substitution Manufacturing Drawback
  45–Substitution Unused Merchandise Drawback
  46–Other Drawback …
 
  This notice announces that the following entry types will not be automated in either ACS or ACE due to low shipment volume:
 
  04–Appraisement
  05–Vessel–Repair
  24–Trade Fair
  25–Permanent Exhibition
  26–Warehouse–Foreign Trade Zone (FTZ) (Admission)
  33–Aircraft and Vessel Supply (For Immediate Exportation)
  64–Barge Movement
  65–Permit To Proceed
  66–Baggage
 
  Dated: January 12, 2018.
Kevin K. McAleenan, Acting Commissioner, U.S. Customs and Border Protection.

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EXIM_a3

3. DHS/CBP Modifies NCAP Test Regarding Reconciliation and Transition of the Test from ACS to ACE

(Source: Federal Register, 18 Jan 2018.)
 
83 FR 2645-2646: Modification of the National Customs Automation Program (NCAP) Test Regarding Reconciliation and Transition of the Test from the Automated Commercial System (ACS) to the Automated Commercial Environment (ACE)
* AGENCY: U.S. Customs and Border Protection, Department of Homeland Security.
* ACTION: General notice.
* SUMMARY: This document announces that certain previously announced modifications to the National Customs Automation Program (NCAP) test regarding reconciliation will become operational, and that the test program will transition from the Automated Commercial System (ACS) to the Automated Commercial Environment (ACE).
* DATES: As of February 24, 2018, the modifications to the reconciliation test will become operational. As of the same date, the test will transition into ACE, and ACS will be decommissioned for the filing of reconciliation entries.
* ADDRESSES: Comments concerning this test program may be submitted via email, with a subject line identifier reading, “Comment on Reconciliation test” to OFO-RECONFOLDER@cbp.dhs.gov.
* FOR FURTHER INFORMATION CONTACT: Randy Mitchell, Commercial Operations and Entry Division, Trade Policy and Programs, Office of Trade at (202) 863-6532 or RANDY.MITCHELL@CBP.DHS.GOV.
* SUPPLEMENTARY INFORMATION: …
  On December 12, 2016, CBP published a notice in the Federal Register (81 FR 89486) announcing modifications to the reconciliation test and the transition of the test from ACS to ACE, effective January 14, 2017. On January 17, 2017, CBP published a notice in the Federal Register (82 FR 4901) announcing that the effective date for the test modifications and transition would be delayed indefinitely. Then, on June 8, 2017, CBP published a notice in the Federal Register (82 FR 26699) announcing that the modifications to the test and the transition would be effective on July 8, 2017. Subsequently, on June 30, 2017, CBP published a notice in the Federal Register (82 FR 29910) announcing that the effective date for the modifications to the reconciliation test and for mandatory filing of reconciliation entries in ACE had been delayed until further notice.
  This notice announces that, beginning February 24, 2018, all reconciliation entries must be filed in ACE regardless of whether the underlying entry was filed in ACS or ACE and regardless of whether it is a replacement, substitution or follow-up to a reconciliation entry originally filed in ACS, and ACS is decommissioned for the filing of such entries. In addition, as of February 24, 2018, the test modifications announced in the December 12, 2016 notice will become operational.
 
  Dated: January 12, 2018.
Brenda B. Smith, Executive Assistant Commissioner, Office of Trade.

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OGSOTHER GOVERNMENT SOURCES

OGS_a14. Items Scheduled for Publication in Future Federal Register Editions
(Source: Federal Register

* Justice/ATF; NOTICES; Agency Information Collection Activities; Proposals, Submissions, and Approvals: 
Application and Permit for Permanent Exportation of Firearms (National Firearms Act) [Publication Date: 19 Jan 2018.]
 
* State; RULES; Civil Monetary Penalties Inflationary Adjustment; Correction [Publication Date: 19 Jan 2018.]
 
* Treasury/OFAC; NOTICES; Blocking or Unblocking of Persons and Properties [Publication Date: 19 Jan 2018.]
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OGS_a25.

Commerce/Census: “Tips on How to Resolve AES Fatal Errors”


 
When a shipment is filed to the AES, a system response message is generated and indicates whether the shipment has been accepted or rejected.  If the shipment is accepted, the AES filer receives an Internal Transaction Number (ITN) as confirmation.  However, if the shipment is rejected, a Fatal Error notification is received.
 
To help you resolve AES Fatal Errors, here are some tips on how to correct the most frequent errors that were generated in AES for this month.
 
Fatal Error Response Code:  107
 
– Narrative: Country of Ultimate Destination Unknown
– Reason: The Country of Ultimate Destination reported is not valid in AES. 
– Resolution: The Country of Ultimate Destination Code must be a valid ISO country code listed in the ‘Appendix C, ISO Country Codes’.  Verify the Country of Ultimate Destination, correct the shipment and resubmit.
 
Fatal Error Response Code:  628
 
– Narrative: 1st Unit of Measure Code / Schedule B/HTS Mismatch
– Reason: The Unit of Measure (1) reported does not match the Unit of Measure (1) required for the Schedule B/ HTS Number reported.
– Resolution: The Unit of Measure (1) must match exactly the Unit of Measure (1) prescribed by the Schedule B/HTS Number reported.  See Appendix K – Units of Measure Codes  Verify the Unit of Measure (1) required for the reported Schedule B/HTS Number, correct the shipment and resubmit.
 
For a complete list of Fatal Error Response Codes, their reasons, and resolutions, see Appendix A – Commodity Filing Response Messages.
 
It is important that AES filers correct Fatal Errors as soon as they are received in order to comply with the Foreign Trade Regulations.  These errors must be corrected prior to export for shipments filed predeparture and as soon as possible for shipments filed postdeparture but not later than five calendar days after departure.
 
For further information or questions, contact the U.S. Census Bureau’s Data Collection Branch.
 
– Telephone: (800) 549-0595, select option 1 for AES
– Email: askaes@census.gov 
– Online: www.census.gov/trade

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NWSNEWS

NWS_a1
9. The Brussels Time: “EU Must Not Help Dictators Spy on Their Own Citizens”

(Source: The Brussels Time, 17 Jan 2018.)
 
Human rights may now be invoked to strengthen control over the export of Internet surveillance data from the European Union (EU).
 
This possibility is included in rules on the export of dual-use goods – goods that can be used for both civilian and military applications – adopted on Wednesday by the European Parliament, with 571 votes for, 29 against and 29 abstentions.
 
Technology enabling users to intercept and locate mobile phones, circumvent passwords or identify Internet users are covered by the new rules.
 
  “Authoritarian regimes too often use European technology to spy  on or hack their own citizens, journalists and human rights defenders,” Hilde Vautmans, a European parliamentarian from the Open Flemish Liberals and Democrats (Open Vld) party, commented after the vote.
 
  “The European Parliament now has a clear position: no export when human rights are violated. Values and safety have finally been placed at the heart of the export policy,” she added.

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NWS_a210. 
ST&R Trade Report: “CBP Increasing First Sale Rule Enforcement”

(Source: Sandler, Travis & Rosenberg Trade Report, 18 Jan 2018.) [Excerpts.]
 
Importers are being advised to review transactions taking advantage of the first sale rule to ensure they are consistent with U.S. Customs and Border Protection’s requirements. CBP is scrutinizing imports using this valuation methodology more closely as part of a broader increase in enforcement efforts. …
 
Under the first sale rule, the entered value of a qualifying transaction may be based on the purchase price between the middleman/vendor and the manufacturer rather than the importer and the middleman/vendor. This rule was established in litigation by Sandler, Travis & Rosenberg 30 years ago, and its legality and importance to the U.S. economy and trade community was reaffirmed by legislation first proposed by ST&R and enacted in 2008. At a time when volatility in trade policy has left some traditional methods of lowering costs unavailable (such as the Generalized System of Preferences) and is threatening to eliminate others (such as NAFTA), importers are continuing to use the first sale rule to save millions of dollars in import duties each year.
 
CBP has always had an uneasy relationship with the first sale rule and has attempted several times to eliminate it or make it more difficult to use. With these efforts having been unsuccessful, CBP has instead frequently turned its attention to ratcheting up efforts to verify that companies using this methodology are doing so properly.
 
For example, said ST&R member Mark Tallo, in recent months CBP has focused on the proper transfer of title and risk of loss to ensure middleman companies are bona fide buyers and sellers of imported goods. CBP is also looking at related party pricing to confirm that any first sale price between related parties is not influenced by that relationship and is otherwise conducted at arm’s length. Other issues include assist valuation (i.e., validating that all declared first sale prices are “fully costed” and reflect the true value of the imported goods) and supplemental payments (i.e., ensuring that no such payments to the foreign seller are missing from the first sale price).
 

Despite this trend, said Mark Segrist, managing member of ST&R’s Chicago office, companies can still have successful first sale programs. The key is to “take proactive steps to ensure that multi-tiered transactions meet first sale requirements and that there are internal controls and procedures in place to sufficiently document compliance if and when CBP comes knocking.” Since information is often retained by different partners in the supply chain, Segrist said, it’s particularly important for importers to communicate with them to define their responsibilities for keeping and producing records. Failure to meet first sale requirements may be construed as a lack of reasonable care and lead to penalties.

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COMMCOMMENTARY

COMM_a0111.

A. Peng & J. Cowley: “China – What to Watch: Draft Export Control Law of China”

 
* Authors: Anne Peng, Esq., anne.peng@bakermckenzie.com; and John Cowley, Esq., jon.cowley@bakermckenzie.com. Both of Baker McKenzie.
 
The Ministry of Commerce (“MOFCOM”) of the People’s Republic of China (“China”) published the draft Export Control Law (“ECL”) for public comments via a circular on 16 June 2017. If enacted, the ECL will be the first set of comprehensive and unified export control legislation in China, which is aimed at upgrading the country’s existing regime consisting of various administrative regulations and rules. The ECL is still in the draft form and no further update has been announced since its publication last year, but it is widely expected to be introduced in the National People’s Congress within 2018.
 
(1) Controlled Items, Blacklists and Embargoes
 
The draft ECL sets forth four categories of controlled items (“Control Lists”), including dual-use items which may be used for civilian and military purposes, military items, nuclear items, as well as other goods, technologies, services and items that are related to national security. Items outside the Control Lists could also be temporarily controlled for up to two years, subject to the approval of the State Council, the Central Military Commission and their designated authorities (“Competent Authorities”). In addition, activities subject to ECL control need not involve items on the Control Lists as long as the exporter knows or should know that the export may give rise to national security and terrorism concerns.
 
The Competent Authorities may also maintain blacklists of foreign importers and end-users that breach the ECL, and may prohibit the export of controlled items to such persons
 
Furthermore, the draft ECL provides that if China is subject to any discriminatory export control measures by any country, the State may adopt retaliatory measures against such country. The State may also put in place any necessary controls over the export of any goods, technologies and services in order to safeguard security and interests during wartime or urgent situations concerning international relations.
 
If the draft ECL is passed in its current form, companies must be prepared to regularly monitor dynamic updates to the scope of controlled items, countries and persons in order to ensure full compliance with the law.
 
(2) Controlled Activities and Licensing
 
The draft ECL introduces the concepts of deemed export and re-export in China, which will bring China’s system many steps closer to the export control regimes in western countries. Deemed exports include the provision of controlled items by a citizen, legal person or other organization in China to any foreign person; the item need not be physically exported from China. Re-export controls cover the export of controlled items (i.e. items comprising a prescribed amount of content controlled by China) from one overseas jurisdiction to another.
 
It remains unclear whether or precisely how China will implement provisions controlling deemed export and re-export transactions. Given their potentially extra-territorial reach, there may be practical challenges in enforcing such requirements. Furthermore, if ultimately adopted, the deemed export provisions may significantly impact multinational corporations with a presence in China or with access to Chinese controlled items and technology outside of China. In view of the breadth of the draft legislation, even the sharing of information related to controlled items between colleagues (one of whom is employed by a Chinese subsidiary) may be included within the scope of the ECL’s control regardless of whether there is actual cross-border transfer.
 
The ECL requires licences (categorized into General Licences and Individual Licences) to be obtained from the Competent Authorities for carrying out controlled activities. Additionally, exporters may also be subject to recordkeeping and monopoly qualification requirements.
 
(3) End-Use Requirements
 
The Competent Authorities may request the exporters to submit end-use certificates or documents issued by the importers or the relevant agencies in the countries of import. The exporters are also under a positive obligation to review the end-users and uses of the exported items, and to immediately report to the Competent Authorities of any change in end-users or uses. Further , the importers shall undertake not to alter the ultimate uses of the imported items, or transfer the imported items to any third parties other than the end-users, without the approval of the Competent Authorities. In this regard, the Competent Authorities are empowered under the ECL to conduct on-site verifications on the end-users and end uses.
 
(4) Enforcement and Penalties
 
The draft ECL grants Competent Authorities broad investigative powers. They may, for example, enter the business premises of parties under investigation, conduct interviews with relevant parties, access and copy relevant documents, examine the conveyance used for export, seize items and even freeze bank account of the export operators.
 
The draft ECL prescribes the following key penalties:
 
  – Export without a Permit – The operator may receive a warning from the Competent Authorities, as well as administrative penalty of not more than 10 times the illegal business revenues and confiscation of any illegal gains derived from such activity. Persons directly in charge and other persons directly held liable (not expressly defined, but may include employees or agents of the exporter) may also be given a warning and fined up to CNY 300,000.
  – Fraudulent Acquisition or Trading of a Permit – In addition to the above penalties, the Competent Authorities may withdraw the licence of any party that obtains it by fraud, bribery or other illegal means, or falsifies, alters, leases, lends, or trades a licence for the export of controlled items.
 
(5) Implications
 
The ECL is still in the draft form and it remains to be seen how the legislative provisions will be enforced, whether any exemptions will be introduced, and if there will be any meaningful updates to the draft before it is introduced to the National People’s Congress. Given the potentially wide-sweeping impact, multinationals that may be affected are well advised to start early to understand the implications of the new law on their compliance obligations, supply chains, and business operations.

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TEEX/IM TRAINING EVENTS & CONFERENCES

TE_a112.

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_a213. “17th Annual ‘Partnering for Compliance™’ East Export/Import Control Conference” on 6-9 Mar in Orlando, FL. UPDATE: NIST/Computer Security Division Confirmed

(Source: A. M. NicPhaidin,
Info@PartneringForCompliance.org
)
* What: The 17th Annual “Partnering for Compliance™” East will focus intensely on a broad spectrum of export/import regulatory and compliance matters of current relevance to companies and individuals involved in global trading. Senior-level government officials and trade experts will provide first-class training.
* Where: Holiday Inn Orlando International Airport Hotel (completely renovated)
* When:
  – Tue – Thurs, 6-8 Mar: “17th Annual ‘Partnering for Compliance™’ East Export Control Program
  – Fri, 9 Mar: 1-Day Program “Customs/Import Boot Camp”
* Speakers confirmed: DoS/DDTL: Terry Davis; DoS/DDTC: Daniel Cook; DoC/BIS: TBA – speaker name to follow & OEE Jonathan Barnes; DoD/DTSA: Ken Oukrop; OFAC: Alex Augustine; NIST: Kelley L. Dempsey; Census Bureau: Dale Kelly; DHS/CBP: Todd Mahaun & Nils Borregaard; ICE: Shane Poole; UK/EU Export Controls – Strategic Shipping Company: Bernadette Peers, M.B.E. & Jo-Anne Stewart;  Braumiller Law Group PLLC: Adrienne Braumiller & Bruce Leeds (Imports); and U.S. Commercial Service.
*Opening Keynote Address: TBA (Invited)
* Cost: Export 3-day program: $650. Customs/Import 1-day program: $250. Both programs: $900.
* Remarks: Maximum capacity is 200 participants to maintain informal and collaborative environment.
*As time permits, all Government and trade speakers will informally hold short “one-to-one” meetings with participants on a “first-come, first-served” basis.
* Certificates of Completion granting: 4.5 IIEI CEUs and 20 CES NCBFAA Credits for 3-day Exports program, and 6.5 CCS NCBFAA Credits for 1-day Customs/Import Boot Camp will be awarded for each program.
* More information:
Here
.  

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ENEDITOR’S NOTES

 

* Charles de Montesquieu (Charles-Louis de Secondat, Baron de La Brède et de Montesquieu; 18 Jan 1689 – 10 Feb 1755; was a French lawyer, man of letters, and political philosopher who lived during the Age of Enlightenment.)
  – “I have never known any distress that an hour’s reading did not relieve.”

 

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EN_a315
. 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.
 
*
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 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

  
*
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

 
*
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.
 
*
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_a0316
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.

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