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18-0209 Friday “Daily Bugle”

18-0209 Friday “Daily Bugle”

Friday, 9 February 2018

TOPThe 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 here for free subscription. Contact us for advertising inquiries and rates.

[No items of interest noted today.] 

  1. Items Scheduled for Publication in Future Federal Register Editions 
  2. Commerce/BIS: (No new postings.) 
  3. DHS/CBP Announces ACE Certification ASI Deployment, 10 Feb 
  4. DHS/CBP Announces ACE Production Maintenance, 10-11 Feb 
  5. DHS/CBP Releases Updated CATAIR, Stand-Alone Filing for Partner Government Agency Data 
  6. DHS/CBP Posts Reminder Concerning ACE Deployment G, Release 4 on 24 Feb 
  7. DHS/CBP Updates CATAIR Documentation 
  8. State/DDTC: (No new postings.) 
  9. President Continues National Emergency with Respect to Libya 
  10. EU Corrects Restrictive Measures Concerning North Korea 
  1. ArsTechnica: “Elon Musk: I’ll Dub My Flamethrower ‘Not a Flamethrower’ to Thwart Customs” 
  2. National Defense Magazine: “Pentagon Could Impose New Cyber Regulations on Industry” 
  3. Reuters: “Canada Says Will Clamp Down on Arms Exports Amid Human Rights Concerns” 
  4. ST&R Trade Report: “Export Enforcement Chief Named” 
  1. F.K. Merchant & R. Whitten: “Lurches, Leaps, Feints, and Flops: Movements Without Motion in Russian Sanctions Policy” 
  2. M. Volkov: “Local Compliance Strategies to Embrace the Business (Part II of II)” 
  3. Gary Stanley’s ECR Tip of the Day 
  4. R.C. Burns: “The Trials and Tribulations of Used Part Exporting – Updated” 
  1. List of Approaching Events – 11 New Events Listed 
  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 (8 Feb 2018), ITAR (19 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)
 
* Commerce; Industry and Security Bureau; PROPOSED RULES; Controls on Energetic Materials, Armored and Protective Equipment, and Military Electronics [Publication Date: 12 February 2018.]
 
* President; ADMINISTRATIVE ORDERS; Libya; Continuation of National Emergency (Notice of February 9, 2018) [Publication Date: 12 February 2018.] [Editor’s Note: this item is already included in today’s Daily Bugle, item 9.]
 
* State; PROPOSED RULES; Review of United States Munitions List Categories V, X, and XI [Publication Date: 12 February 2018.]

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OGS_aa23. DHS/CBP Announces ACE Certification ASI Deployment, 10 Feb
(Source: CSMS #18-000129, 9 Feb 2018.)
 
The following Automated Surety Interface (ASI) item will be deployed to the ACE CERTIFICATION environment Saturday evening, 02/10/2018 at 22:30 ET.

Automated Surety Interface (ASI) 
* CAOM-14608/9/10: Corrects default values inconsistent with ASI Entry Summary Nightly and Quarterly Download (AS) Implementation Guide specifications for fields such as Value, Cancel Date, PGA Indicator, Collection Date, Warehouse Entry Summary Number, Liquidation Date and Estimated Duties.

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

(Source:
CSMS #18-000128, 9 Feb 2018.)
 
There will be ACE PRODUCTION Scheduled Maintenance Saturday evening, February 10, 2018 from 2200 ET to 0400 ET Sunday, February 11, 2018.
 
ACE will perform infrastructure maintenance activities and the following ACE Deployments during this time:
 
ACE Portal – Protest and Accounts
 
* Ticket# 9555640: User unable to upload attachment for Protest when attachment file name contained spaces.

* When a trade user had more than 30 accounts, the Select Account screen froze. The user was unable to log in to ACE Portal.
 
Automated Surety Interface (ASI)
 
* CAOM-14608/9/10: Corrects default values inconsistent with ASI Entry Summary Nightly and Quarterly Download (AS) Implementation Guide specifications for fields such as Value, Cancel Date, PGA Indicator, Collection Date, Warehouse Entry Summary Number, Liquidation Date and Estimated Duties.
 
Entry Summary EDI Processing (AE message)
 
* CES-7518: Entry Summary Response (AX) message “ACE SYSTEM FAILURE” (ASF) when input AE message contained an invalid LPC Type Code on the 52-Record.
 
The valid LPC Type Codes are “01” to “27”. Error 472-LIC/CERT/PERM TYPE CODE UNKNOWN will now be returned instead of the ASF.
 
* CES-9103: Revise Tax Class 016 Variance. Class Code 016 is the revenue class code for ‘Internal Revenue tax – Distilled Spirits’.
 
Address a problem where an 016 tax class code estimate was accepted in an AE filing that fell below the ACE system’s calculation. After the fix, any amount of 016 tax revenue, equal or greater to the ACE system’s calculation, will be accepted.
* * * * * * * * * * * * * * * * * * * *

(Source:
CSMS #18-000123, 8 Feb 2018.)
 
The ACE Stand-alone Filing for Prior Notice Data, Status Notification (PO) document has been updated on CBP.gov and can be accessed here.
 
One reason code and several sub-reason codes have been added.
These codes will be available in Production on February 28, 2018.
* * * * * * * * * * * * * * * * * * * *

(Source:
CSMS #18-000127, 9 Feb 2018.)
 
On 24 February 2018, CBP will deliver ACE Deployment G, Release 4. This deployment will include:

  – Drawback (Core and TFTEA)
  – Liquidation
  – Reconciliation
  – Cuban ABI Entries
  – Updates to eBond Functionality

Details and additional resources may be found in the ACE Deployment G, Release 4 Information Notices posted to CBP.gov at the links listed at the bottom of this message.

Deployment Support Call:

Following the deployment, CBP’s Trade Transformation Office (TTO) will host a daily support call from February 26, 2018 to March 2, 2018 between 2:00 PM ET and 3:00 PM ET to answer questions related to the February 24th deployment.
  – Line (877) 336-1828 / PC: 6124214

In addition, CBP will host a separate daily support call focused on Drawback issues only from February 26, 2018 to March 2, 2018 between 3:00 PM ET and 4:00 PM ET.
  – Line (877) 336-1829 / PC 4840827

ACE Deployment G, Release 4 Information Notices:

  – Drawback Information Notice
  – Liquidation Information Notice
  – Reconciliation Information Notice
  – Cuban Entries and eBond Updates

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(Source:
CSMS #18-000126, 9 Feb 2018.)
 
The following CATAIR documents have been updated and can be found on the CATAIR homepage.
 
The Future Courtesy Notice CATAIR has been updated and can be found here.
 
The CATAIR for Future Temporary Importation Bond- Extension and Closure has been updated and can be found here.
 
The CATAIR for Temporary Importation Bond/Expiration Notice has been updated and can be found here.
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(Source:
The White House, 9 Feb 2018.)
 
On February 25, 2011, by Executive Order 13566, 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 and foreign policy of the United States constituted by the actions of Colonel Muammar Qadhafi, his government, and his close associates, which took extreme measures against the people of Libya, including using weapons of war, mercenaries, and wanton violence against unarmed civilians.  In addition, there was a serious risk that Libyan state assets would be misappropriated by Qadhafi, members of his government, members of his family, or his close associates.  The foregoing circumstances, the prolonged attacks against civilians, and the increased numbers of Libyans seeking refuge in other countries caused a deterioration in the security of Libya and posed a serious risk to its stability.
 
The situation in Libya continues to pose an unusual and extraordinary threat to the national security and foreign policy of the United States, and measures are needed to protect against the diversion of assets or other abuses by members of Qadhafi’s family, their associates, and others hindering Libyan national reconciliation.
 
For this reason, the national emergency declared on February 25, 2011, must continue in effect beyond February 25, 2018.  Therefore, in accordance with section 202(d) of the National Emergencies Act (50 U.S.C. 1622(d)), I am continuing for 1 year the national emergency declared in Executive Order 13566.
 
This notice shall be published in the Federal Register and transmitted to the Congress.
 
DONALD J. TRUMP
THE WHITE HOUSE,
February 9, 2018.
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Corrigenda
* Corrigendum to Council Implementing Regulation (EU) 2018/12 of 8 January 2018 implementing Regulation (EU) 2017/1509 concerning restrictive measures against the Democratic People’s Republic of Korea ( OJ L 4, 9.1.2018 )
* Corrigendum to Council Implementing Decision (CFSP) 2018/16 of 8 January 2018 implementing Decision (CFSP) 2016/849 concerning restrictive measures against the Democratic People’s Republic of Korea ( OJ L 4, 9.1.2018 )

 

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NWSNEWS

(Source:
ArsTechnica, 3 Feb 2018.)
 
Last weekend, the Boring Company offered 20,000 novelty flamethrowers for sale. By Thursday, all 20,000 had sold out. But now Elon Musk says the company has hit an obstacle.
 
“Some customs agencies are saying they won’t allow shipment of anything called a ‘Flamethrower,'” Musk tweeted on Friday night. “To solve this, we are renaming it ‘Not a Flamethrower.'”
 
To be fair, that might be a more accurate label. As Ars Technica’s Ron Amadeo wrote earlier this week, the Boring Company’s “flamethrower” looks like it’s “nothing more than a propane torch with fancy styling.”
 
Military-grade flamethrowers can project flames 30 to 100 feet. The Boring Company’s device is designed to shoot flames less than 10 feet. Conveniently, that makes it compliant with a California law regulating sales of flame-throwing devices with a range higher than that amount. But it also means that calling it a flamethrower in the first place is a bit of a stretch.
 
Musk is apparently making things up as he goes along here. In a follow-up tweet, Musk suggested he might dub the novelty product a “Temperature Enhancement Device” instead to satisfy customs officials.
 
Musk also announced that purchasers of these $500 flamethrowers-or whatever he winds up calling them-will come packaged with a free Boring Company fire extinguisher. They’ll also come with individual serial numbers.
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The Defense Department may take larger steps to ensure industry partners and their suppliers practice proper cyber hygiene as it looks to better secure its information and data assets, Deputy Defense Secretary Patrick Shanahan said Feb. 6.
 
“We want the bar to be set so high, it will become the condition of doing business” with the Pentagon, he said at the annual WEST Conference co-hosted by the Armed Forces Communications and Electronics Association and U.S. Naval Institute in San Diego.
 
He emphasized that the level of cyber vulnerability within the defense community is significant, and hinted that parameters could be put in place to ensure companies were doing their part to keep critical information safe.
 
  “You can imagine if tomorrow … instead of having a financial disclosure statement, we want you to sign a cyber disclosure statement that says, ‘Everybody you do business with is secure,'” he said. “I don’t think you’d sign that tomorrow, but … we need to get to that level because your secrets, our secrets are exposed.” He did not elaborate on how specifically the Pentagon aims to achieve that level of security.
 
Shanahan assumed the role of deputy defense secretary in July 2017 after spending over three decades at Boeing, most recently serving as the senior vice president for supply chain and operations. Speaking to reporters after his speech, he noted that cyber hygiene standards were “just a condition of employment at the company.”
 
  “In terms of protecting our data and protecting their information, there should be this standard,” he added. He referenced his college-aged son and noted, “I don’t call him up and ask him if he’s brushed his teeth.”
 
Product integrity and safety were “the first order of business” at Boeing, he added. “When I think of things like safety, cyber falls into that category … as being one of those things that should be uncompromising.”
 
It may not be easy to change the culture to be more stringent about cyber hygiene, but the U.S. workforce once also engaged in lengthy debates about smoking, he noted.
 
  “We need to have the same intolerance on cyber,” he added.
 
The Defense Department has continued to prioritize cybersecurity efforts inside and outside its facilities as it warns of the potential threat of an attack from a near-peer adversary, as well as the dangers posed by everyday electronics usage. The 2018 National Defense Strategy, which was released in January, stated that the Pentagon will prioritize investments “in cyber defense, resilience and the continued integration of cyber capabilities into the full spectrum of military operations.”
 
Shanahan’s comments follow recent reports that U.S. military installations could be traced via a heat map released by Strava, a fitness tracker app that uses a device’s GPS to follow where and when a user exercises. Potential adversaries could possibly employ that data to track how personnel move across installations or how frequently, inviting security concerns.
 
In the past six months, Defense Secretary Jim Mattis has launched a review of how technology is used across the services, including the use of cell phones at the Pentagon. Department Chief Spokesperson Dana White said in a media briefing Feb. 1 that operational security was Mattis’ priority in taking a closer look at the potential threat posed by electronic devices.
 
  “This recent incident [with Strava] and others has allowed him to take a bigger look at, ‘What are we doing and how are we doing it?'” she said. The Pentagon has not reached a consensus on policies going forward, she noted.
 
White noted that U.S. military bases have already been targeted.
“Information is power and our adversaries have used information to plan attacks against us,” she said.
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(Source:
Reuters, 8 Feb 2018.)
 
Canada plans to clamp down on arms exports to ensure the armaments it sells abroad are not used to commit human rights abuses, Foreign Minister Chrystia Freeland said on Thursday.
 
Freeland told legislators that Canada would not allow the export of a weapon “if there were a substantial risk that it could be used to commit human rights violations.” 
 
She made her remarks a day after Ottawa said it was reviewing the sale of 16 helicopters to the Philippines amid concerns the aircraft could be used to fight rebels. 
 
Current regulations mean governments need only carry out a study of the general risks that might be involved in a sale. 
 
  “This is a significant decision. It will mean changes in how Canada regulates selling weapons … I want us to hold ourselves to a higher standard,” said Freeland. 
 
A Canadian government source estimated that the clamp down could shave three percent off annual sales. Foreign ministry figures for 2016 show Canada exported military goods and technology worth C$718 million ($570.20 million). 
 
According to data compiled by the Stockholm International Peace Research Institute, Canada placed 15th on the list of arms exporters in the period from 2012-2016, accounting for 0.9 percent of global sales. The United States was first with 33 percent and Russia second with 23 percent. 
 
In 2016, Canada’s Liberal government was criticized for deciding to honor a contract to sell light armored vehicles to Saudi Arabia, despite concerns about human rights. 
 
Freeland told legislators that a probe by foreign ministry officials had found no conclusive evidence that Canadian-made vehicles were used in human rights violations.
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President Trump has announced his intent to nominate Jeffrey Nadaner to be assistant secretary of the Department of Commerce for export enforcement. According to a White House press release, Nadaner has two decades of experience in security and technology involving complex enterprises in both the public and private sectors. He currently serves as the director of the U.S. Marine Corps’ Brute Krulak Center for Innovation & Creativity and holds the Marine Corps University Foundation’s Donald Bren Fellowship of Creative Problem-Solving.
 
Previously Nadaner held the positions of vice president of corporate engineering and technology and director of business development and strategy in information systems and global solutions at Lockheed Martin Co. Within the Department of Defense he served as deputy assistant secretary for partnership strategy and stability operations. Earlier in his career he served as a member of the State Department policy planning staff, as a senior speechwriter to Secretary of State Colin Powell, and as a Department of Justice trial attorney.

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COMMCOMMENTARY

COMM_a1
15. F.K. Merchant & R. Whitten: “Lurches, Leaps, Feints, and Flops: Movements Without Motion in Russian Sanctions Policy”
(Source:
Global Trade Law Blog
, 8 Feb 2018.)
 
* Authors: Fatema K. Merchant, Esq.,
fmerchant@sheppardmullin.com
; and Reid Whitten, Esq.,
rwhitten@sheppardmullin.com
. Both of Sheppard Mullin, Washington DC and London, respectively.
 
Since the U.S. Government 
determined
 that Russia interfered in the 2016 election [FN/1], movement around Russia sanctions policy has been vigorous, if not unidirectional. In 2016, the United States implemented twice sanctions against Russia: 
In September
, dozens of individuals and entities were sanctioned with regards to Russian operations in Crimea. 
In December
, President Obama expelled 35 Russian intelligence agents from the U.S. and imposed sanctions on two major intelligence services, as a response to those interferences from Russia. In 2017, concerned that the new Administration might roll back certain sanctions on Russia, Congress overwhelmingly passed the Countering America’s Adversaries Through Sanctions Act, codifying and adding to sanctions on Russia already in place (which we reported on 
here
).
 
In January, we anticipated two more moves mandated under CAATSA: 1) the publication of a List of Senior Political Figures and Oligarchs in the Russian Federation and 2) sanctions against entities and individuals that had conducted significant transactions with the defense and intelligence sectors in Russia. It appears that one was a feint and the other, a flop.
 
The Oligarchs List
 
The anticipation of the release of the Oligarchs List (or, in its more Tom Clancyesque appellation, “The Kremlin Report”) reportedly had much of the Russian elite nervous. Some reportedly made efforts not to be seen in the company of senior Russian officials, others sent lobbyists to Washington to try to influence their way off of the list. Interestingly, the list by itself had no legal effect. It did not implement sanctions against the listed persons (though 22 of the listed persons were already under sanction) nor otherwise restrict doing business with those persons. However, before its release, no one was eager to be on it.
 
What happened next was a little baffling. The list that was published, at least the unclassified version, was a copy-paste of lists posted on the English language sites of the Kremlin, the Russian government, and the Russian Forbes’ billionaires list. The list cut off at number 96, exactly where the Forbes estimates of personal wealth went below 1 billion. The list includes people who are in disputes with the Government over its efforts to take property from them, and excludes people with well-known Kremlin connections or who own the media outlets that are Putin’s propaganda arm.
 
Although the list does not demonstrate that it was supported by great consideration or study, the gesture may still have an effect. 
Bloomberg reports
 that The Financial Integrity Network, consultants on illicit finance threats, have advised treating those listed as “politically exposed persons” a red flag for involvement in corruption. Additionally, Steve Mnuchin has stated that “there will be sanctions that come out of this report,” indicating that the Office of Foreign Assets Control may still take action. However, given the anemic effort that went into the report, and the unwillingness to implement further sanctions (on which more anon), that statement may also turn out to be a feint.
 
The Next Round of Sanctions (or Lack Thereof)
 
Last Monday, the sanctions expert community also expected the Administration to announce sanctions on individuals and entities for conduct related to Russia’s defense and intelligence industries. Section 231 of CAATSA requires that the President impose sanctions on persons that the U.S. government determines knowingly engaged in significant transactions with Russia’s defense or intelligence sectors. CAATSA required that those sanctions be imposed on or after January 29, 2018. On October 27, 2017, the State Department published a list of persons that the State Department determined to be part of the Russian defense and intelligence sectors, presumably to put people on notice of who they should steer clear of when doing business in Russia.
 
On January 29, the State Department 
announced
 that no sanctions would be imposed under Section 231 because the “legislation and its implementation are deterring Russian defense sales.” According to the State Department, “foreign governments have abandoned planned or announced purchases of several billion dollars in Russian defense acquisitions.” In a 
briefing
, a State Department official described the result as “real success, it’s real money, and it’s real revenue that is not going to the Kremlin and is not going to Russia…to remind Russia and remind the Russian Government of the costs of its malign activity…”

But some lawmakers perceive the lack of sanctions as letting Russia off the hook. Representative Maxine Waters, who is the ranking Democrat on the House Financial Services Committee, 
stated
that she finds it “preposterous that…the legislation has served as such a deterrent that not one person or entity is engaged in a significant transaction with the Russian defense or intelligence sectors.”
 
Let’s think about what makes sanctions policy effective and thus, successful. The U.S. government uses many foreign policy tools to either incent, deter, or punish behavior of other nations. The government does so to affect a change in behavior by another state using economic, rather than military force. CAATSA was enacted to punish Russia for its 2016 election meddling but also to deter Russia from meddling in future elections. Therefore, in theory, hitting Russia economically should result in deterring Russia from future bad behavior.
 
The State Department appears to take the position that if the legislation is preventing defense sales, then the U.S. has achieved the objectives of the law. However, while certain business may have been deterred from selling defense products to Russia (which we have to take the government’s word for because there is no public information as to whether “billions of dollars” in sales have been abandoned), nothing in current Russian sanctions policy, or in intelligence reports, suggests that current U.S. sanctions are deterring Russia from interfering in future U.S. elections. Mike Pompeo, the Director of the CIA, 
stated
 that he has not seen “a significant decrease in [Russia’s] activity” and that he has “every expectation that they will continue to try” to interfere in U.S. elections. Of course, it remains to be seen whether choosing not to impose further sanctions will embolden Russia in its election interference, which would be seen as a distinct flop.
 
The Takeaway 
 
Current sanctions appear not to deter Russian bad behavior and the Oligarchs List appears to have been cribbed from someone else’s homework. Taking the two together, one begins to suspect that the Administration, without a further push from Congress or world events, will continue to resist ratcheting up Russia sanctions. That sort of prediction may not be certain enough to bet the company on, but with careful counseling, companies may consider continuing their lawful business in Russia without concern that it will soon be subject to sanction.
 
——-
  [FN/1]
On January 6, 2017, the U.S. Intelligence Community issued a report “Assessing Russian Activities and Intentions in Recent US Elections,” and concluded with high confidence that President Putin ordered an influence campaign in 2016 aimed at the US presidential election.
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COMM_a2
16. M. Volkov: “Local Compliance Strategies to Embrace the Business (Part II of II)”

(Source: Volkov Law Group Blog, 8 Feb 2018. Reprinted by permission.)
 
* Author: Michael Volkov, Esq., Volkov Law Group, mvolkov@volkovlaw.com, 240-505-1992.
 
[Editor’s Note: Part I was published in yesterday’s Daily Bugle.]
 
The ultimate success of a global ethics and compliance program often depends on the ability of local compliance officers to engage business operations in a specific country. Of course, a global compliance program’s performance depends on cooperation and coordination at all levels, but in many cases, the ability of a local compliance officer to adopt creative and intelligence strategies to engage the business will establish an important foundation for a compliance program.
 
All the parts of a global compliance program are interdependent, and the failure at one level can be catastrophic to the entire program. In general, however, an effective local compliance officer on the ground, working closely with business staff, can be very effective in promoting a company’s culture and its overall compliance with the code of conduct and the law.
 
Local compliance officers face a challenging dance – they have to push their compliance agenda, while maintaining a positive relationship with the business. It is a delicate dance. I have observed numerous instances where local compliance officers are able to establish themselves as a business partner by facilitating business compliance with global policies and procedures. This is where a local compliance officer can make life easier for the business staff and build some goodwill as a true partner.
 
Business personnel often find compliance policies and procedures intimidating. Like all of us, our initial reaction to internal bureaucracy is to ignore or look for a shortcut to avoid the perceived “pain” of following burdensome procedures. Local compliance officers can help business staff by developing checklists, cover sheets, and other materials to simplify the process. In doing so, the local compliance officer is not altering the compliance obligations but is just making the process a little easier to follow. Business staff will appreciate such an effort.
 
Local compliance officers also have to establish their position at the business table. When business meetings occur, they have to be invited to attend and provide a value-add by providing an important compliance perspective for any new business initiatives or issues. Again, the local compliance officer can easily establish him or herself as a facilitator to implement business strategies.
 
Every compliance officer has to understand the company’s business. This is an absolute requirement – no ifs, ands or buts. With this knowledge, the local compliance officer will be able to communicate effectively, empathize with business concerns, and develop strategies that can advance compliance and the business at the same time.
 
Local compliance officers can serve as an “advocate” for the local business when it comes to compliance issues where local conditions may require adjustment of a global ethics and compliance policy. Local compliance officers have to pick and choose their battles and seek a waiver from a global policy when there is a compelling reason to do so. Global policies need to be followed but there has to be a small slice of room to adjust some of these policies to account for local conditions.
 
Finally, I have observed many local compliance officers develop supplemental training programs to reinforce global training presentations. It is difficult to conduct global training and ensure that the programs are attractive and engaging. A local compliance officer, knowing the local markets and conditions, can create training programs that reflect local scenarios that raise compliance issues.

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COMM_a3
17. Gary Stanley’s ECR Tip of the Day

(Source: Defense and Export-Import Update, 9 Feb 2018. Available by subscription from
gstanley@glstrade.com
)
 
* Author: Gary Stanley, Esq., Global Legal Services, PC, (202) 352-3059,
gstanley@glstrade.com
.
 
ITAR § 126.18 [Exemptions regarding intra-company, intra-organization, and intra-governmental transfers to employees who are dual nationals or third-country nationals] does not impose on the U.S. exporter an obligation to request a written statement or certification from the foreign company that it will be invoking the provisions of § 126.18 and has met all the requirements outlined therein to prevent the diversion of defense articles to unauthorized end-users and end-uses. However, it is always good business practice to be sure that foreign companies that are receiving ITAR-controlled items understand the requirements and restrictions associated with the receipt and handling of such items.

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COMM_a4
18. R.C. Burns: “The Trials and Tribulations of Used Part Exporting – Updated”

(Source:
Export Law Blog
, 8 Feb 2018. Reprinted by permission.)
 
* Author: R. Clifton Burns, Esq., Bryan Cave LLP, Wash DC,
Clif.Burns@bryancave.com
, 202-508-6067).
 
Last month the Bureau of Industry and Security fined Phoenix-based used equipment and part dealer MHz Electronics $10,000 in connection with its exports of two pressure transducers classified as ECCN 2B230 to China and Taiwan. The fine was suspended contingent upon MHz behaving itself during a two-year “probationary period.”
 
Pressure transducers meeting the specifications in ECCN 2B230 can be used for blast measurement and are therefore controlled because of the role that they can allegedly play in nuclear testing and proliferation. The two items involved were sold for the eye-popping amounts of $280 and $1,100. Even though the fine imposed here was low, BIS’s miff factor was quite high, with the settlement documents noting that MHz did not have an “export compliance program.” In addition, MHz apparently brushed off a visit by FBI agents that had been trolling MHz’s (now-closed) eBay store and told them that one item (not either of these transducers) listed by them on eBay would require an export license if shipped internationally.
 
Under the circumstances, MHz got off lightly. But even so, this case raises some interesting questions and difficulties for export compliance for businesses like MHz. Like thousands of other small businesses, MHz bought and sold used electronic and testing equipment. With a 96,000 square foot warehouse, it no doubt had a staggering number of different kinds and types of parts and equipment.
 
How would it obtain ECCNs for all those items? Oh, you say, easy peasy: call the original manufacturer and ask. Uh-huh. Have you ever tried that before? Particularly if you’re selling used parts in an aftermarket competing with the original manufacturer. “You say you need the ECCN of our Model 2370C snarkle widget puffinator? Sure thing. Give me your phone number and someone will get right back to you by, say, April 1, 2032. Does that work?” Click.
 
And, I’m sure it should come as no surprise that many original manufacturers have no clue as to the ECCNs of their products, particularly if they are foreign. Try calling China and asking (in English or, even, Cantonese or Mandarin) for an ECCN.

Even if spec sheet for the product is published by the manufacturer, it rarely aligns with the control parameters in the relevant ECCN. I challenge you to figure out the classification of a CNC-machine, a computer, or almost anything else from published specification sheets.
 
The bottom line here is that compliance challenges effectively foreclose used parts companies (except, I suppose, companies exclusively devoted to selling used knitting supplies or antique fountain pens) from participating in the export market at all. And given that the parts that they sell are usually readily available outside the United States, there’s not much of a real justification for shutting this market down for them. BIS says that these bargain-basement priced items could be used for nuclear bomb testing. Does anyone really think that aspiring nuclear powers could not lay their hands on these (and probably better) items outside the United States?  And, if you can use a $280 sensor in nuclear testing, well, we’re in a lot more trouble than I imagined.
 
UPDATE:
  An alert reader, who knows way more about nuclear bombs than I ever will, points out that pressure transducers covered by ECCN 2B230 are used for uranium enrichment in centrifuges, not for blast measurement.   Specifically, the reader notes:  “While 13 kiloPascal sounds like a big number, atmospheric pressure is 101 kPa, so 13 kPa is closer to a vacuum level.”    I’m going to point some finger of blame at BIS itself, which in the charging documents said: “Items classified under ECCN 2B230 … can be of significance for nuclear explosive purposes,” which suggests that the enforcement folks at BIS made the same mistake. Imagine that. In any event, if these small, readily available and inexpensive parts can be used for centrifuge uranium enrichment, we’re still in a whole lot of trouble.
  

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

TEEX/IM TRAINING EVENTS & CONFERENCES

TE_a3
19.
List of Approaching Events – 11 New Events Listed
(Sources: Editor and Event Sponsors)

Published every Friday or last publication day of the week. Please, send event announcements to 
jwbartlett@fullcirclecompliance.eu, composed in the below format:

# DATE: LOCATION; “EVENT TITLE;” SPONSOR; WEBLINK; CONTACT (email and phone number)

#” New listing this week  

 
Continuously Available Training:
 
* E-Seminars: “US Export Controls” / “Defense Trade Controls“; Export Compliance Training Institute; danielle@learnexportcompliance.com 
* E-Seminars: “ITAR/EAR Awareness“; Export Compliance Solutions;
spalmer@exportcompliancesolutions.com
* On-Demand Webinar; “Is Your Organization Ready for the Challenges of Global Trade?“; Amber Road 
*Online: “Simplified Network Application Process Redesign (SNAP-R)“; Commerce/BIS; 202-482-2227
* E-Seminars: “Webinars On-Demand Library“; Sandler, Travis & Rosenberg, P.A.
* Online: “International Trade Webinars“; Global Training Center
*
 
Online: “On-Demand Webinars“; “General Training“; Center for Development of Security Excellence; Defense Security Service (DSS)
* Online: “ACE Reports Training and User Guide“; DHS/CBP

* Online: ”
Increase Your International Sales – Webinar Archive;” U.S. Commercial Service

# Web Form: “Compliance Snapshot Assessment“; Commonwealth Trading Partners (CTP) 
 
Training by Date:

# Feb 13-14: Washington, D.C.; ”
2018 FTZ Legislative Summit“; National Association of Foreign Trade Zones (NAFTZ)

* Feb 13-14: Miami, FL; “Complying with US Export Controls“; Bureau of Industry and Security 
* Feb 13-14: Orlando FL; “
ITAR/EAR Boot Camp
“; Export Compliance Solutions; 
spalmer@exportcompliancesolutions.com
; 866-238-4018
* Feb 13-16: London, UK; “Certified Authorized Economic Operator (AEO) Specialist“; Global Trade Academy
* Feb 14: “Wednesday Webinar: Temporary Imports of NFA Firearms“; Reeves & Dola LLP
* Feb 14: London, UK; “Post-Brexit Planning Workshop“; IOEx
# Feb 15: Webinar: “The Foreign Corrupt Practices Act“; Thompson & Associates
* Feb 19: Tysons Corner, VA; “Export Compliance and Controls 101“; Global Trade Academy
# Feb 20: Webinar; “Making Your Board of Directors a Partner in Compliance“; Volkov Law Group
# Feb 20-22: Tysons Corner, VA; “Export Controls Specialist – Certification“; Global Trade Academy

* Feb 21: Webinar; ”
Cybersecurity Opportunities in Europe Webinar“; U.S. Commercial Service

# Feb 21: Webinar; ”
Proposed Changes to NAFTA & the Positive Impact on FTZ Users“; National Association of Foreign Trade Zones (NAFTZ)

* Feb 19-22: Huntsville AL; “
ITAR Defense Trade Controls / EAR Export Controls Seminar
“; ECTI;
 
jessica@learnexportcompliance.com
; 540-433-3977

* Feb 21: Webinar; ”
Cybersecurity Opportunities in Europe“; U.S. Commercial Service

* Feb 21: Newcastle UK; “Intermediate Seminar“; UK Department for International Trade; denise.carter@trade.gsi.gov.uk 
* Feb 22: Newcastle UK; “Beginners Workshop“; UK Department for International Trade; denise.carter@trade.gsi.gov.uk 
* Feb 22: Newcastle UK; “Licences Workshop“; UK Department for International Trade; denise.carter@trade.gsi.gov.uk 
* Feb 22: Newcastle UK; “Control List Classification – Combined Dual Use and Military“; UK Department for International Trade; denise.carter@trade.gsi.gov.uk 

Feb 26: Miami, FL; “
Certified Classification Specialist (CCLS)
“; Global Trade Academy


*
 
Feb 27: London, UK; “International Documentation & Customs Compliance
“; IOEx

* Feb 27: Webinar; “The ABCs of Embargoes and Sanctions – Part I“; ECTI; 

* Feb 27-28: Amsterdam, Netherlands; “10th Pharma & Biotech Patent Litigation Conference“; C5 Group

* Feb 27-28: London, UK; ”
ITAR and the EAR US Trade Controls Compliance in Europe“; C5 Group
# Feb 28: Webinar; ”
Impact of Trade Investigations on FTZs“; National Association of Foreign Trade Zones (NAFTZ)
* Feb 28: Webinar: ”
The Fundamentals of Product Classification“; ECTI, 540-433-3977

* Feb 28-Mar 1: Dubai, UAE; “GESS Dubai 2018“; Global Educational Supplies and Solutions
* Mar 1: Manchester, UK; “An Introduction to Exporting – Physical Goods“; IOEx
* Mar 1: Dubai, UAE; “Anti-Bribery Workshop“; TRACE Anti-Bribery Compliance Solutions
* Mar 5-7: Sugar Land, TX; “2018 Winter Basics Conference“; Society for International Affairs (SIA)

* Mar 6: Tysons Corner, VA; ”
KPMG LLP’s International Trade, Export Compliance, and Customs Update“; 
contact
Amie Ahanchian at aahanchian@kpmg.com or 202-533-3247

Mar 6: Webinar; ”
Legal Aspects of Doing Business in Canada“; U.S. Commercial Service

* Mar 7: London, UK; “Operations and Maintenance for Offshore Wind“; ACI 
* Mar 7-8: Portland, OR; “Complying with US Export Controls“; Bureau of Industry and Security
* Mar 8: Manchester, UK; “International Documentation & Customs Compliance“; IOEx
* Mar 8-9: Washington, D.C.; “14th Annual TRACE Forum“; TRACE Anti-Bribery Compliance Solutions
* Mar 9: Orlando, FL; “Customs/Import Boot Camp“; Partnering for Compliance
* Mar 9: Webinar; “ECCN Classification Numbers“; U.S. Commercial Service
* Mar 11-14: San Diego, CA; “
ICPA Annual Conference“; International Compliance Professionals Association; wizard@icpainc.org

* Mar 13: Hook, UK; ”
General Counsel Connect“; C5 Group
* Mar 13: Webinar; ”
Canada’s Non-Resident Importer Program“; U.S. Commercial Service

* Mar 13: London, UK; “International Documentation & Customs Compliance“; IOEx

* Mar 14: “Wednesday Webinar: Due Diligence for Exports;” Reeves & Dola LLP

* Mar 14; London, UK; “Letters of Credit“; IOEx
* Mar 14: Birmingham, UK; “Intermediate Seminar“; UK Department for International Trade; denise.carter@trade.gsi.gov.uk 
* Mar 14-15: Austin, TX; “Establishing an ITAR/EAR Export Compliance Program“; Export Compliance Solutions;  spalmer@exportcompliancesolutions.com;  866-238-4018 
* Mar 15: Birmingham UK; “Beginners Workshop“; UK Department for International Trade; denise.carter@trade.gsi.gov.uk 
* Mar 15: Birmingham UK; “Licences Workshop“; UK Department for International Trade; denise.carter@trade.gsi.gov.uk 
* Mar 15: Birmingham UK; “Control List Classification – Combined Dual Use and Military“; UK Department for International Trade; denise.carter@trade.gsi.gov.uk 
* Mar 15-16: Geneva, Switzerland;Fraud, Asset Tracking, & Recovery;” C5 Group
* Mar 15-16: McLean, VA; “ITAR Fundamentals“; FD Associates 

Mar 19: Tysons Corner, VA; “
Import 5-Day Boot Camp
“; Global Trade Academy

* Mar 20: Webinar; ”
Sending Temporary Workers to Canada“; U.S. Commercial Service
* Mar 20: Webinar; ”
Tax Avoidance in the U.S. – Lessons for Canada“; The Conference Board of Canada

* Mar 20: Zurich, Switzerland; “Anti-Corruption in Switzerland“; TRACE Anti-Bribery Compliance Solutions
* Mar 20: London, UK; “An Introduction to Importing“; IOEx
* Mar 20: London, UK; “UK & US Export Controls: A Basic Understanding“; IOEx
* Mar 20-22: Nashville, TN; “Complying with US Export Controls“; Bureau of Industry and Security

* Mar 21-22: London, UK; ”
Women in Compliance Conference“; C5 Group

* Mar 23; Nashville, TN; “How to Build an Export Compliance Program“; Bureau of Industry and Security
* Mar 26: East Rutherford, NJ; “Advanced Classification of Plastics and Rubber“; Global Trade Academy

# Mar 27: London, UK; “Brexit – Customs, Sanctions and Export Controls“; TechUK
* Mar 27: Webinar; “The ABCs of Embargoes and Sanctions – Part II“; ECTI; 

* Mar 27-28: San Francisco, CA; “
8th Advanced Industry Forum on Global Encryption, Cloud, and Cyber Export Controls
“; American Conference Institute

* Mar 27-28: Brussels, Belgium; ”
Global Customs Compliance Forum“; C5 Group

* Mar 27-28: Santa Clara, CA; “Export Control Forum“; Bureau of Industry and Security
* Apr 5-6: Des Moines, IA; “Complying with US Export Controls“; Bureau of Industry and Security 
* Apr 10: Webinar; “Letters of Credit“; U.S. Commercial Service
* Apr 11: “Wednesday Webinar: Anatomy of a Compliance Program;” Reeves & Dola LLP
* Apr 11-12: Denver, CO; “Complying with US Export Controls“; Bureau of Industry and Security
* Apr 16-17: Los Angeles, CA; “APBO Conference, 2018“; Asia Pacific Business Outlook
* Apr 16-19: Las Vegas NV; “ITAR Defense Trade Controls / EAR Export Controls Seminar“; ECTI;
 
jessica@learnexportcompliance.com; 540-433-3977

* Apr 16-20: Washington, D.C.; ”
Excellence in Anti-Corruption – ISO Standards 37001 and 19600“; ETHIC Intelligence

* Apr 17-19: Kansas City, MO;
NNSA Export Control Coordinators Org Annual Training; Kimberly.galloway@pnnl.gov; 509-372-6184

Apr 18: Ottowa, Canada; ”
U.S. Ocean Tech Innovation Showcase“; U.S. Embassy in Canada

* Apr 18: Melbourne, Australia; ”
Australia/North Asia FTA Training Session for SMEs: Cultural Awareness – Negotiating Business in South Korea“; Victorian Chamber of Commerce and Industry

* Apr 18-19: Miramar (Miami), FL; “
10th Maritime Logistics Training Course

; ABS Consulting; contact Albert Saphir, 954-218-5285

* Apr 19: McLean, VA; “ITAR for the Empowered Official“; FD Associates
* Apr 23: Copenhagen, Denmark; “Anti-Bribery Roundtable“; TRACE Anti-Bribery Compliance Solutions
* Apr 24: Los Angeles, CA; “Duty Drawback Specialist – Certification“; Global Trade Academy
* Apr 24-25: Dubai, UAE; “Trade Compliance in the Middle East“; NeilsonSmith
* Apr 25-26: Berlin, Gernamy; “Global Anti-Bribery In-House Network (GAIN)“; TRACE Anti-Bribery Compliance Solutions
* Apr 25-26: Costa Mesa, CA; “Complying with US Export Controls“; Bureau of Industry and Security
* Apr 30-May 2: Kansas City, MO; “Discover Global Markets“; U.S. Department of Commerce
* May 2-3; Scottsdale, AZ; “Complying with US Export Controls“; Bureau of Industry and Security 

* May 3-4: Milan, Italy; ”
Trade Compliance Southern Europe“; C5 Group

* May 6-8: Toronto, Canada; “2018 ICPA Canadian Conference“; ICPA

* May 6-11: Miami, FL; ”
U.S. Commercial Service Trade Mission to the Carribean Region“; (Additional dates are available for B2B meetings in listed countries.)

* May 7-8: Denver, CO; “2018 Spring Advanced Conference“; Society for International Affairs (SIA)

* May 8: Webinar; “U.S. Harmonized Tariff Classification Numbers“; U.S. Commercial Service
* May 8: Mexico City, Mexico; “Anti-Bribery Workshop“; TRACE Anti-Bribery Compliance Solutions
* May 9: ”
Wednesday Webinar: Demonstrations and Plant Visits“; Reeves & Dola LLP

* May 9: London, UK; “Advanced Financing of International Trade“; IOEx
* May 15-16; Cleveland, OH; “Complying with US Export Controls“; Bureau of Industry and Security

* May 16-17: Amsterdam, Netherlands; “Digital Utilities Europe 2018“; American Conference Institute

* May 16-17: National Harbor, MD; “ITAR/EAR Compliance: An Industry Perspective“; Export Compliance 



# May 20-22: Portland, OR; “Spring 2018 Seminar;” National Association of Foreign Trade Zones (NAFTZ)
* May 22-23: London, UK; “
Upstream Oil and Gas Legal Forum“; C5 Group

* May 22-24: Las Vegas, NV; ”
Licensing Expo 2018: The Meeting Place for the Global Licensing Industry“; U.S. Commercial Service

* May 23-24: Berlin, Germany; ”
12th Annual Exporters’ Forum on Global Economic Sanctions“; C5 Group

* Jun 5-9: Baltimore, MD; “AAEI Annual Conference“; AAEI
* Jun 6-7: Seattle, WA; “Complying with US Export Controls“; Bureau of Industry and Security
* Jun 6-7: Munich, Germany; “US Trade Controls Compliance in Europe“; NielsonSmith
* Jun 6-7: Munich, Germany; “Pharma Patent Term Extensions“; C5 Group
* Jun 8: Stafford, VA; “Spring Golf Outing“; Society for International Affairs;

* Jun 12: Webinar; “Duty Drawback and Refunds“; U.S. Commercial Service

* June 12-13; Stockholm, Sweden; ”
Trade Compliance Nordics“; C5 Group

* Jun 13: San Diego, CA; “Made in America, Buy America, or Buy American: Qualify your Goods and Increase Sales“; Global Trade Academy
* Jun 13-14: McLean, VA; “ITAR Fundamentals“; FD Associates
* Jun 17-19: Amsterdam, Netherlands; “2018 ICPA European Conference“; International Compliance Professionals Association
* Jun 18: Los Angeles, CA; “Certified Classification Specialist (CCLS)“; Global Trade Academy

* Jun 27-28: London, UK; ”
12th Annual Conference on Anti-Corruption“; C5

* Jul 10: Chicago, IL; “Duty Drawback Specialist – Certification“; Global Trade Academy
* Jul 10-11: Columbia, SC; “Complying with US Export Controls“; Bureau of Industry and Security
* Jul 10-11: Long Beach, CA; “ITAR/EAR Boot Camp“;  Export Compliance Solutions; spalmer@exportcompliancesolutions.com; 866-238-4018
* Jul 16-18: National Harbor, Maryland; “2018 Summer Basics Conference“; Society for International Affairs
* Jul 17: Los Angeles, CA; “Advanced Classification of Plastics and Rubber“; Global Trade Academy
* Jul 19: McLean, VA; “ITAR for the Empowered Official“; FD Associates
* Aug 1-3: Washington, D.C.; “NSSF and Fair Trade Import/Export Conference“; NSSF
* Aug 6: Detroit, MI; “Export Compliance and Controls“; Global Trade Academy
* Aug 7-9: Detroit, MI; “Export Controls Specialist – Certification“; Global Trade Academy
* Aug 14-15: Milpitas, CA; “Complying with US Export Controls“; Bureau of Industry and Security
* Aug 16: Milpitas, CA; “Encryption Controls“; Bureau of Industry and Security
* Sep 12-13: Annapolis, MD; “
ITAR/EAR Boot Camp
“; Export Compliance Solutions; 
spalmer@exportcompliancesolutions.com
; 866-238-4018
* Sep 12-13: Springfield, RI; “Complying with US Export Controls“; Bureau of Industry and Security
* Sep 13: McLean, VA; “EAR Basics“; FD Associates
* Sep 13-17: Galveston, TX (Cruise); “ICPA @ SEA!“; International Compliance Professionals Association (ICPA)
# Sep 16-19: Atlanta, GA; “2018 Annual Conference and Exposition“; National Association of Foreign Trade Zones (NAFTZ)
* Sep 17: Los Angeles, CA; “Import Compliance“; Global Trade Academy
* Sep 17-20: Columbus, OH; “University Export Controls Seminar at The Ohio State University in Columbus“; Export Compliance Training Institute (ECTI); jessica@learnexportcompliance.com; 540-433-3977
* Sep 17-21: Los Angeles, CA; “Import 5-Day Boot Camp“; Global Trade Academy  
* Sep 18: Los Angeles, CA; “Tariff Classification for Importers and Exporters“; Global Trade Academy 
* Sep 19: Los Angeles, CA; “NAFTA and Trade Agreements“; Global Trade Academy
* Sep 20: Los Angeles, CA; “Country and Rules of Origin“; Global Trade Academy
* Sep 21: Los Angeles, CA; “Customs Valuation – The Essentials
“; Global Trade Academy

* Oct 9-11:  Dallas, TX; ”
Partnering for Compliance West Export/Import Control Training and Education Program“; Partnering for Compliance

* Oct 12: Dallas TX; ”
Customs/Import Boot Camp“; Partnering for Compliance

* Oct 18-19: McLean, VA; “ITAR Fundamentals“; FD Associates
* Oct 21-23: Grapevine, TX; “2018 Fall Conference“; ICPA
* Oct 22-23: Arlington, VA; “2018 Fall Advanced Conference
“; Society for International Affairs (SIA)
* Oct 29 – Nov 1: Phoenix, AZITAR Defense Trade Controls / EAR Export Controls Seminar“; ECTIjessica@learnexportcompliance.com; 540-433-3977
* Oct 30 – Nov 1: Seattle, WA; “Export Controls Specialist – Certification“; Global Trade Academy
* Nov 6: Detroit, MI; “Classification: How to Classify Parts“; Global Trade Academy
* Nov 7-9: London, UK; “TRACE European Forum, 2018“; TRACE Anti-Bribery Compliance Solutions
* Nov 7-9: Detroit, MI; “Advanced Classification for Machinery & Electronics
“; Global Trade Academy
* Nov 12-15: Washington, D.C.; “ITAR Defense Trade Controls / EAR Export Controls Seminar“; ECTIjessica@learnexportcompliance.com; 540-433-3977
* Nov 13: Tysons Corner, VA; “Made in America, Buy America, or Buy American: Qualify your Goods and Increase Sales“; Global Trade Academy
* Nov 15: McLean, VA; “ITAR For the Empowered Official“; FD Associates
* Nov 27: Houston, TX; “Duty Drawback Specialist – Certification“; Global Trade Academy

* Dec 4-5: Frankfurt, Germany; ”
US Defence Contracting and DFARS Compliance in Europe;” C5 Group

* Dec 3-7: Tysons Corner, VA; “Certified Classification Specialist“; Global Trade Academy
* Dec 6: London, UK; “International Documentation and Customs Compliance
“; Institute of Export and International Trade
* Dec 11: Manchester, UK; “International Documentation and Customs Compliance“; Institute of Export and International Trade

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

ENEDITOR’S NOTES

EN_a120
. Bartlett’s Unfamiliar Quotations

(Source: Editor)
 

*
Amy Lawrence Lowell (9 Feb 1874 – 12 May 1925; was an American poet of the imagist school from Brookline, Massachusetts. She posthumously won the Pulitzer Prize for Poetry in 1926.
 – “Let us be of cheer, remembering that the misfortunes hardest to bear are those which never come.”
 
Friday funnies.  
Signs seen on commercial trucks:
* On a blinds and curtains truck: “Blind man driving.”
* On an Electrician’s truck: “Let us remove your shorts.”
* On a Plumber’s truck:  “We repair what your husband fixed.”
* On another Plumber’s truck:  “Don’t sleep with a drip. Call your plumber.”
* On a septic tank cleaner’s truck: “Yesterday’s Meals on Wheels”

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

EN_a221. 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, and Census/AES guidance.  Subscribers receive revised copies every time the FTR is amended. The BAFTR is available by annual subscription from the Full Circle Compliance 
website.  BITAR subscribers are entitled to a 25% discount on subscriptions to the BAFTR.
 
* HARMONIZED TARIFF SCHEDULE OF THE UNITED STATES (HTS, HTSA or HTSUSA), 1 Jan 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: 8 Feb 2018:
83 FR 5674
: Technical Corrections to the Harmonized Tariff Schedule of the United States [Concerns HTSUS Chapter 99, Subchapter III]
 

  – 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.
 

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

EN_a322
. Weekly Highlights of the Daily Bugle Top Stories

(Source: Editor)
 

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

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

* The Ex/Im Daily Update is a publication of FCC Advisory B.V., compiled by: Editor, James E. Bartlett III; Assistant Editors, Alexander P. Bosch and Vincent J.A. Goossen; and Events & Jobs Editor, John Bartlett. The Ex/Im Daily Update is emailed every business day to approximately 8,000 readers of changes to defense and high-tech trade laws and regulations. We check the following sources daily: Federal Register, Congressional Record, Commerce/AES, Commerce/BIS, DHS/CBP, 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.

* 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 cannot be relied upon as legal or expert advice.  Consult your own legal counsel or compliance specialists before taking actions based upon news items or opinions from this or other unofficial sources.  If any U.S. federal tax issue is discussed in this communication, it was not intended or written by the author or sender for tax or legal advice, and cannot be used for the purpose of avoiding penalties under the Internal Revenue Code or promoting, marketing, or recommending to another party any transaction or tax-related matter.

* SUBSCRIPTIONS: Subscriptions are free.  Subscribe by completing the request form on the Full Circle Compliance website.

* TO UNSUBSCRIBE: Use the Safe Unsubscribe link below.

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