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18-0206 Tuesday “Daily Bugle”

18-0206 Tuesday “Daily Bugle”

Tuesday, 6 February 2018

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The Daily Bugle is a free daily newsletter from Full Circle Compliance, containing changes to export/import regulations (ATF, DOE/NRC, Customs, NISPOM, EAR, FACR/OFAC, FAR/DFARS, FTR/AES, HTSUS, and ITAR), plus news and events.  Subscribe 
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  1. DHS/CBP Announces COAC Meeting on 28 Feb in Miami  
  1. Items Scheduled for Publication in Future Federal Register Editions
  2. Commerce/Census: “New Schedule B Numbers Have Arrived”
  3. Commerce/BIS Moves Against Illicit Iran Aircraft Network, Warns Organizations Trading with Iran in Violation of U.S. Export Control Laws and Regulations
  4. DHS/ICE: “Two men Indicted for Scheme to Export Firearms to Kurds in Iraq”
  5. DoD/DSCA Releases Policy Memo Concerning Establishing and Revising Nonrecurring Cost Charges for Munitions Adapter Units
  6. FBI: “Insider Sentenced for Economic Espionage”
  7. State/DDTC: (No new postings.)
  1. The Jerusalem Post: “Germany Sold Technology to Iran for Use in Syrian Chemical Attacks”
  2. Reuters: “EU Firms Face Legal Risk over ‘Forced Labor’ from North Korea”
  3. ST&R Trade Report: “Trusted Trader Program Could be Operational This Year”
  1. The Export Compliance Journal: “Nuclear Fallout? How the U.S. Pulling Out of Iran Nuclear Deal Could Impact Export Compliance”
  2. M. Volkov Releases Podcast on Corporate Board Reform and Compliance
  3. O. Torres & J. Creek: “So You Missed the December 31, 2017 NIST 800-171 Implementation Deadline?”
  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 (26 Jan 2018), FACR/OFAC (28 Dec 2017), FTR (20 Sep 2017), HTSUS (1 Feb 2018), ITAR (19 Jan 2018) 
  3. Weekly Highlights of the Daily Bugle Top Stories 

EXIMITEMS FROM TODAY’S FEDERAL REGISTER

EXIM_a1

1. 
DHS/CBP Announces COAC Meeting on 28 Feb in Miami

(Source:
Federal Register, 6 Feb 2018.) [Excerpts.]
 
83 FR 5268-5269: Commercial Customs Operations Advisory Committee (COAC)
* AGENCY: U.S. Customs and Border Protection (CBP), Department of Homeland Security (DHS).
* ACTION: Committee management; notice of Federal advisory committee meeting.
* SUMMARY: The Commercial Customs Operations Advisory Committee (COAC) will hold its quarterly meeting on Wednesday, February 28, 2018, in Miami, Florida. The meeting will be open to the public.
* DATES: The COAC will meet on Wednesday, February 28, 2018, from 1:00 p.m. to 5:00 p.m. EST. Please note that the meeting may close early if the committee has completed its business.
* ADDRESSES: The meeting will be held at the DoubleTree Hotel, 711 NW 72nd Avenue, Miami, FL 33126. For information on facilities or services for individuals with disabilities or to request special assistance at the meeting, contact Ms. Florence Constant-Gibson, Office of Trade Relations, U.S. Customs & Border Protection, at (202) 344-1440 as soon as possible.
    Pre-Registration: Meeting participants may attend either in person or via webinar after pre-registering using one of the methods indicated below:
    For members of the public who plan to attend the meeting in person, please register by 5:00 p.m. EST February 27, 2018, either online
here; by email to
tradeevents@dhs.gov; or by fax to (202) 325-4290. You must register prior to the meeting in order to attend the meeting in person.
    For members of the public who plan to participate via webinar, please register online
here by 5:00 p.m. EST, February 27, 2018. …
* FOR FURTHER INFORMATION CONTACT: Ms. Florence Constant-Gibson, Office of Trade Relations, U.S. Customs and Border Protection, 1300 Pennsylvania Avenue NW, Room 3.5A, Washington, DC 20229; telephone (202) 344-1440; facsimile (202) 325-4290; or Mr. Bradley Hayes, Executive Director and Designated Federal Officer at (202) 344-1440.
* SUPPLEMENTARY INFORMATION: …
 
Agenda
    The COAC will hear from the following subcommittees on the topics listed below and then will review, deliberate, provide observations, and formulate recommendations on how to proceed:
 
    (1) The Trusted Trader Subcommittee will present an update from the C-TPAT Minimum Security Criteria Working Group on its recommendations regarding CBP’s plans to roll out new C-TPAT criteria. The subcommittee will also provide an update on the progress on the Trusted Trader Strategy.
    (2) The One U.S. Government Subcommittee will continue discussions on the progress of the Fish & Wildlife Service Working Group and will present the white paper on the Harmonized Tariff Schedule project. The subcommittee will also discuss an update from CBP’s Trade Transformation Office on ACE Deployment G Release 4 and also from the Technical and Operational Outages Working Group.
    (3) The Exports Subcommittee will discuss the final work of the Export Manifest Working Group, which has been developing comprehensive recommendations on the following topics: Timelines, filing regime, targeting regime, hold issuance and shipment interception process, and an account-based penalties regime. There will also be an update on the automated export manifest pilots, and on progress in implementing a post-departure filing pilot as part of the ocean pilot.
    (4) The Trade Modernization Subcommittee will discuss the International Engagement and Trade Facilitation Working Group’s efforts to prioritize the recommendations it made in 2017. The subcommittee will discuss the establishment of the Regulation Modernization Working Group and its efforts to identify and prioritize areas of regulations administered by CBP that can be reformed. In addition, the subcommittee will discuss the establishment of the Trade Facilitation and Trade Enforcement Act (TFTEA) Educational Mandate Working Group that will identify educational opportunities as referenced in Section 104 of TFTEA. Finally, the subcommittee will discuss the progress being made in the e-Commerce Working Group.
    (5) The Global Supply Chain Subcommittee will present the status of a pilot that will test the utilization of existing Automated Commercial Environment (ACE) automation in the pipeline mode of transportation. The committee will also discuss the progress of the Global Supply Chain Subcommittee’s Emerging Technologies Working Group. The subcommittee will discuss the activities of the newly formed In-Bond Working Group that will focus on identifying issues within the scope of the “Changes to the In-Bond Process” final rule published in the Federal Register on September 28, 2017 regarding their implementation.
    (6) The Trade Enforcement & Revenue Collection (TERC) Subcommittee will provide necessary updates from the Anti-Dumping and Countervailing Duty, Bond, Forced Labor and Intellectual Property Rights Working Groups.
    Meeting materials will be available by February 23, 2018
here.
 
    Dated: January 31, 2018.

Bradley F. Hayes, Executive Director, Office of Trade Relations.

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OGSOTHER GOVERNMENT SOURCES

OGS_a12. Items Scheduled for Publication in Future Federal Register Editions
(Source: Federal Register)

* Commerce/Census; NOTICES; Meetings: Scientific Advisory Committee [Publication Date: 7 Feb 2018.]
 
* Treasury/OFAC; NOTICES; Blocking or Unblocking of Persons and Properties [Publication Date: 7 Feb 2018.]
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OGS_a23.

Commerce/Census: “New Schedule B Numbers Have Arrived”


 
The Schedule B commodity classification codes for export have been updated for 2018. Codes are updated every January and July at the 10-digit level. In this blog, we will explore three resources available on our website to help you navigate these updates. All resources can be found
online.
 
Schedule B Book
From our web site the new 2018 Schedule B book is available in the red box labeled “Browse” in HTML and PDF formats. Simply click on the link “Look through HTML or PDF versions of Schedule B book content” next to 2018 to browse section and chapter notes and
Schedule B numbers by chapter.
 
All current and historic codes added or removed from the Schedule B going back to the last major revision, in January 2017, can be found in the “Add/Delete List” under ”
Browse chapters.”
 
Obsolete Codes List
 
Outdated Schedule B codes are available in the red box labeled ”
Obsolete Codes.” The “Obsolete to New” list is a quick way to see which codes are no longer valid, starting January 2018, and which new codes replaced them.
 
Notice that from 2016 forward, there were obsolete codes in both January and July. Before 2016, the Schedule B numbers were only updated annually.
 
Schedule B Search Engine
 
The third resource available is the
Schedule B Search Engine.
 
Type a Schedule B number into the
search engine, and if it appears, then the number is still valid. However, if the number is outdated, the search engine will show “No Results” for the code.
 
For more information on the new Schedule B numbers, visit International Trade online; call the International Trade Help Line at 800-549-0595, Option 2 for Commodity Classification Assistance; or email
eid.scheduleb@census.gov

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OGS_a34.

Commerce/BIS Moves Against Illicit Iran Aircraft Network, Warns Organizations Trading with Iran in Violation of U.S. Export Control Laws and Regulations

(Source:
Commerce/BIS, 5 Feb 2018.)
 
The U.S. Commerce Department’s Bureau of Industry and Security (BIS) has acted against Turkish national Gulnihal Yegane and three affiliated Turkish companies who are involved in illicitly procuring and supplying Iranian airlines with U.S.-origin aircraft engines and spare parts. 
 
The action, called a “temporary denial order” (TDO), suspends the export privileges of Gulnihal Yegane (“Yegane”), Trigron Lojistik Kargo Limited Sirketi (“Trigron”), Ufuk Avia Lojistik Limited Sirketi (“Ufuk Avia”), and RA Havacilik Lojistik Ve Tasimacilik Ticaret Limited Sirketi (“RA Havacilik”).  Gulnihal Yegane was previously added to the BIS Entity List for smuggling parts to Iran’s Mahan Air.
 
Yegane is actively involved in the illicit procurement of U.S.-origin aircraft engines and spare parts (ECCN 9A991) for Iranian airlines and has taken extensive steps to continue this activity while attempting to conceal her involvement after BIS added Yegane to the BIS Entity List in December 2013 for transactions involving Mahan Air (78 FR 75458).  Mahan Air was designated by Treasury’s Office of Foreign Assets Control (OFAC) as a Specially Designated Global Terrorist in October 2011 for providing financial, material, and technological support to Iran’s Islamic Revolutionary Guard Corps-Qods Force.  Yegane is now utilizing Trigron, which Yegane owns and operates, and Turkish logistics companies Ufuk Avia and RA Havacilik, with which Yegane is affiliated. The deceptive efforts to obtain U.S.-origin aircraft engines included re-structuring a transaction to Iran to conceal Yegane’s involvement after the initial attempt was discovered by BIS.
 
  “Today’s action sends a strong message that trade with Iran in violation of U.S. export control laws and regulations will not be tolerated.  The Bureau of Industry and Security will vigorously pursue parties that seek to take advantage of U.S. companies by providing false end-use information and that seek to profit from illegally supplying materials to Iran.” said Commerce Under Secretary Mira Ricardel. 
 
Background
 

Temporary Denial Orders are issued by the Assistant Secretary for Export Enforcement of the Bureau of Industry and Security, denying the export privileges of a company or individual to prevent an imminent or on-going export control violation. These orders are issued for a renewable 180-day period and cut off not only the right to export from the United States, but also the right to receive or participate in exports from the United States. …  


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OGS_a4
5.

DHS/ICE: “Two men Indicted for Scheme to Export Firearms to Kurds in Iraq”

(Source:
DHS/ICE, 1 Feb 2018.) [Excerpts.]
 
Two men were indicted by a federal grand jury in Seattle Wednesday for three federal felonies in connection with their scheme to smuggle dozens of firearms to Turkey and Iraq in violation of the Arms Export Control Act.
 
Paul Stuart Brunt, 51, of Bellevue, Washington, and Rawnd Khaleel Aldalawi, 29, of Seattle, were arrested on a criminal complaint January 24, 2018. …
 
According to records filed in the case, between October 2016 and November 2017, Brunt and Aldalawi engaged in a scheme to smuggle firearms from the U.S. to people associated with the Peshmerga military in Kurdistan, a part of Iraq.  Brunt purchased the firearms at gun stores and gun shows around the Puget Sound region. The men then attempted to ship the guns from the Port of Seattle through Turkey and on to Iraq, hidden in the side panels of vehicles.
 
In the first shipment in February 2017, some 30 guns were hidden in three cars. In the second shipment in November 2017, 47 firearms were concealed in two vehicles. That second shipment was discovered by authorities in Turkey, and the shipment was traced back to Brunt and Aldalawi. The men had not obtained any export licenses for the firearms and smuggled them in violation of the Arms Export Control Act.
 
The conspiracy is punishable by up to five years in prison and a $250,000 fine. Violating the Arms Export Control Act is punishable by twenty years of imprisonment. The men are scheduled to be arraigned on the indictment on February 8, 2018. … 

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OGS_a6
7.

FBI: “Insider Sentenced for Economic Espionage”

(Source:
FBI News, 5 Feb 2018.) [Excerpts.]
 
California Engineer Sold Satellite Secrets to “Foreign Agent”
 
On July 7, 2016, three days after his fellow Americans had celebrated the nation’s Independence Day, engineer Gregory Allen Justice-who worked for a cleared government contractor in California-was arrested in a hotel room for selling sensitive satellite information to someone he believed was a Russian agent.
 
Unfortunately for Justice, that foreign agent turned out to be an undercover FBI employee. And this wasn’t the first time that Justice had passed satellite secrets to his “handler”-but it would be his last. He was immediately taken into custody by the FBI on charges of selling proprietary trade secrets and technical data that had been controlled for export from the United States. …
As a result of the overwhelming evidence collected against him by the Bureau during the course of its investigation, in May of 2017, Gregory Allen Justice pleaded guilty to attempting to commit economic espionage, attempting to violate the Arms Export Control Act, and violating the International Traffic in Arms Regulations (ITAR). Last September, he was sentenced to five years in federal prison. …   

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NWSNEWS

NWS_a1
9. The Jerusalem Post: “Germany Sold Technology to Iran for Use in Syrian Chemical Attacks”

(Source:
The Jerusalem Post, 5 Feb 2018.) [Excerpts.]
 
Germany’s Federal Office for Economic Affairs and Export Control approved a license for a company to sell military applicable technology to Iranian companies that subsequently was used in Syrian regime chemical weapons attacks, reported the German publication
Bild on Monday.
 
The German company Krempel, located near the southern city of Stuttgart, sold electronic press boards to Iranian companies that were used in the production of rockets.
 
The Jerusalem Post reported in 2017 that multiple German intelligence reports revealed that Iran sought chemical and biological weapon technology in the federal republic.
 
The research of the human rights group, Syrians for Truth and Justice,
Bild and the online investigative journalist website Bellingcat, showed photographs of the rocket remains with the company logo of Krempel and the product signature: “Made in Germany.” … 

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NWS_a210Reuters: “EU Firms Face Legal Risk over ‘Forced Labor’ from North Korea”

(Source:
Reuters, 6 Feb 2018.) [Excerpts.]
 
North Korea sends workers overseas and confiscates their salaries, which could expose European companies to legal action over forced labor, researchers said on Tuesday.
 
In interviews with North Korean workers in Europe, the
LeidenAsiaCentre found that they must hand over their passports to North Korean government officials, are denied freedom of movement and are forced to work long hours with no overtime pay.
 
Most of their earnings are taken by the Democratic People’s Republic of Korea (DPRK), said the Dutch research institution, adding that companies which have signed international treaties could be hit with legal action for involvement in forced labor.
 
  “Companies could be vulnerable to a civil claim, in so far as they knew or should have known about forced DPRK labor in their supply chain and purposely or negligently failed to take adequate measures,” said the report, referring to Dutch firms. …
 

Rights groups say North Korea sends tens of thousands of workers around the world to earn much needed foreign currency to offset the impact of U.N. sanctions over its nuclear weapons program, although this could change with increasing scrutiny. … 

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NWS_a311. ST&R Trade Report: “Trusted Trader Program Could be Operational This Year”

 
U.S. Customs and Border Protection is continuing to evaluate key aspects of its trusted trader pilot as it prepares to make the program operational as early as this fall.
 
The trusted trader concept seeks to update the Customs Trade Partnership Against Terrorism, an initiative launched in 2001 to ensure the security and safety of imported goods, into a broader authorized economic operator-type program by unifying it with the Importer Self-Assessment program, which focuses on traditional customs compliance issues such as classification, valuation, trade preferences, etc. CBP intends this change to be a step toward its long-term goal of a holistic, integrated trusted trader program across U.S. government agencies and believes it will also create an opportunity to enhance existing and future mutual recognition arrangements with foreign trading partners.
 
CBP announced a trusted trader pilot test
in June 2014. The first phase tested the merging of CTPAT and ISA application, review, validations, and vetting and ran for approximately 18 months. In the second phase, which was launched in June 2016, CBP has been working closely with seven companies and participating government agencies on the following:
 
  – measuring the incentives provided to pilot participants via an operational metrics dashboard and encouraging participants to develop their own lists of desired benefits
  – establishing connections with PGAs to facilitate existing program incentives and evaluate additional incentives based on participant input
  – developing white papers to address partner concerns
  – defining the role of the national account manager
  – preparing for the program to become fully operational and available to additional participants, possibly as early as October 2018
 
To take advantage of benefits under the CTPAT, ISA, and trusted trader programs, companies will have to demonstrate effective processes and procedures that meet both the updated CTPAT minimum security criteria and the ISA internal control compliance standards. Importers will also need to demonstrate appropriate controls concerning CBP admissibility standards on issues such as intellectual property and forced labor. For example, CBP has recently indicated that importers should actively seek production information from their suppliers, even several steps back into their supply chains if necessary. In addition, failure to meet PGA admissibility standards, particularly where non-compliance leads to seizures and forfeitures, will likely adversely impact an importer’s standing as a trusted partner.

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COMMCOMMENTARY

COMM_a01
12. The Export Compliance Journal: “Nuclear Fallout? How the U.S. Pulling Out of Iran Nuclear Deal Could Impact Export Compliance”

(Source:
The Export Compliance Journal, 5 Feb 2018.)
 
President Trump has once again voiced his displeasure with the state of the Joint Comprehensive Plan of Action (JCPOA) to ensure that Iran’s nuclear program will be exclusively peaceful-more commonly known as the Iran nuclear deal-and has repeated his intentions to pull out of the deal if a more favorable agreement cannot be reached.
 
The potential impact of the Trump administration’s position highlights the importance of remaining vigilant in staying up-to-date with international affairs, maintaining the highest levels of export compliance, and making sure you stay up-to-date with the ever-changing landscape of compliance.
 
The increasing likelihood that the U.S. could reinstate sanctions that have been waived as part of the agreement has created uncertainty around Airbus’ deal with Iran Air. Because many of their components are manufactured in America, Airbus requires U.S. export licenses to do business with Iran. Under the JCPOA, they have the appropriate OFAC licenses, but, if the U.S. pulls out, those licenses may no longer be valid. In light of this, Iran’s deputy transport minister Asghar Fakhrieh Kashan has stated that “As long as uncertainties are not resolved, we will not provide down payments. Because of these negotiations, there can be delays in payments,” [FN/1] strongly implying that changes to the Iran nuclear deal could put the multi-billion dollar contract in jeopardy.
 
The turbulent landscape of export compliance
 
The situation facing Airbus highlights how the international landscape, much like flying in seemingly smooth skies, can change in a heartbeat. Relationships between once friendly nations can turn sour overnight, new names get added to watch lists every day, regulations change frequently, and business deals that were legal yesterday may no longer be allowable today. Having an export compliance system in place to ensure your licenses and authorizations are still valid is an essential aspect of export compliance; as is being able to adapt to regulatory changes that impact your ability to do business with people and organizations in other countries.
 
Thankfully for Airbus, they have had ample time to adjust their business plans and prepare for potential changes to the enforcement of sanctions against Iran, but that won’t always be the case. Extra care needs to be taken when entering into agreements with entities that have recently been removed from lists, or in countries where restrictions have recently been lifted or eased.
 
Ensuring continuous export compliance is your oxygen mask and flotation device rolled into one
 
Relying on internal resources to keep up-to-date with the changes to the regulatory landscape can take up significant time and resources that may be better spent elsewhere. Many organizations cannot afford to employ an export compliance team dedicated with the daily work required to stay up-to-date. Working with a trusted compliance partner that has a dedicated team of specialists tasked with
updating and maintaining the regulatory information they provide to their clients can go a long way to help ease the burden of continuous compliance. While, ultimately, remaining compliant is the obligation of the parties involved in a transaction, having a strong partner helping to support compliance can only serve to improve the ability to do so.
 
——–
  [FN/1] “Iran threatens Airbus deal as Trump threatens its nuclear deal.”
Business Day, available
here. Accessed January 31, 2018.

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COMM_a2
13. M. Volkov Releases Podcast on Corporate Board Reform and Compliance

(Source:
Volkov Law Group Blog, 4 Feb 2018. Reprinted by permission.)
 
* Author: Michael Volkov, Esq., Volkov Law Group,
mvolkov@volkovlaw.com, 240-505-1992.
 
The growth in ethics and compliance has had a dramatic impact on corporate actors, including the CEO, chief compliance officers, internal audit and chief financial officers.  The corporate board’s role in compliance continues to be deficient.  Corporate boards are in for a rude awakening – a new era of accountability for ethics and compliance is beginning.
 
In
this episode, Michael Volkov outlines the issues surrounding this new trend and the importance of board accountability.

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COMM_a3
14. O. Torres & J. Creek: “So You Missed the December 31, 2017 NIST 800-171 Implementation Deadline?”

(Source:
Torres Law, 6 Feb 2018.)
 
* Authors: Olga Torres, Esq., Torres Law PLLC. Contact information: +1 214-593-7120,
info@torrestradelaw.com.
 
Defense Acquisition Regulation Supplement (“DFARS”) 252.204-7012 requires defense contractors to protect the security of Controlled Unclassified Information (“CUI”). NIST 800-171 [FN/1] defines the security requirements for protecting CUI in nonfederal information systems. NIST 800-171 details adequate cybersecurity measures for each of 110 security requirements that should be adopted by defense contractors and subcontractors. The NIST will help nonfederal entities, including contractors, to comply with the security requirements using the systems and practices they already have in place, rather than trying to use government specific approaches. It provides a standardized and uniform set of requirements for all CUI security needs, tailored to nonfederal systems, allowing nonfederal organizations to be in compliance with statutory and regulatory requirements, and to consistently implement safeguards for the protection of CUI.
 
The deadline for full compliance with NIST 800-171 was December 31, 2017. Originally it was believed that, in order to be fully compliant with NIST 800-171, defense contractors would be required to have implemented all 110 of the security requirements by December 31, 2017. However, subsequent guidance from the Department of Defense (“DoD”) shows this is not necessarily the case. In order to demonstrate compliance with NIST 800-171, defense contractors must have two fundamental cybersecurity documents: a System Security Plan and a Plan of Action.
 
If all 110 security requirements are not fully implemented, a DoD contractor can comply with the deadline if it updates its System Security Plan to describe all implemented requirements and identifies those not fully implemented. For those security requirements not fully implemented, the contractor must have a Plan of Action setting forth the plan and schedule for adopting and fully implementing each security requirement not yet implemented. While the DoD does not provide explicit requirements for what these documents should look like, they do provide some guidance. [FN/2] The System Security Plan “requires the contractor to develop, document, and periodically update, system security plans that describe system boundaries, system environments of operation, how security requirements are implemented, and the relationships with or connections to other systems.” Meanwhile, the Plan of Action should describe “how and when any unimplemented security requirements will be met, how any planned mitigations will be implemented, and how and when [contractors] will correct deficiencies and reduce or eliminate vulnerabilities in the system.” In preparing these documents, the DoD provides no single proscribed manner or process to follow. Instead, a reasonable first step may be for company personnel with knowledge of information system security practices to note what is in place, what needs to be added, and what needs to be changed or updated.
 
For those not already in compliance with NIST 800-171, and without a System Security Plan or Plan of Action updated to reflect the most current version of NIST 800-171, there are a couple of potentially immediate consequences. First, these contractors may be barred from contracting with the government until they can show they are in compliance with or working to be compliant with NIST 800-171. Second, because these provisions flow down to subcontractors, subcontractors should not be surprised if they receive calls from their business partners or suppliers asking if they are in compliance with NIST 800-171. Failure to comply, or an inability to produce an updated System Security Plan and Plan of Action, could result in the loss of these contracts as well.
 
———
  [FN/1] The National Institute of Standards and Technology (“NIST”) is the agency who published NIST 800-171. National Institute of Standards and Technology, Protecting Controlled Unclassified Information in Nonfederal Information Systems and Organizations, available here (last visited January 16, 2018).
  [FN/2] Office of the Under Secretary of Defense, Implementation of DFARS Clause 252.204-7012, Safeguarding Covered Defense Information and Cyber Incident Reporting, available here (last visited January 16, 2018).

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ENEDITOR’S NOTES

 

Aaron Burr (Aaron Burr Jr.; 6 Feb 1756 – 14 Sep 1836; was an American politician. He was the third Vice President of the United States (1801-1805), serving during Thomas Jefferson’s first term.)
  
– “Never do today what you can do tomorrow. Something may occur to make you regret your premature action.”

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EN_a316
. 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 Amendment: 26 Jan 2018: 83 FR 3577-3583: Addition of Certain Entities; Removal of Certain Entities; and Revisions of Entries on the Entity List

  
*
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 Feb 2018: Harmonized System Update 1801, containing 7,864 ABI records and 1,329 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: 19 Jan 2018: 83 FR 2738: Department of State 2018 Civil Monetary Penalties Inflationary Adjustment; Correction
  – The only available fully updated copy (latest edition: 19 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_a0317
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, DOE/NRC, DOJ/ATF, DoD/DSS, DoD/DTSA, FAR/DFARS, 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.

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