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18-0314 Wednesday “Daily Bugle”

18-0314 Wednesday “Daily Bugle”

Wednesday, 14 March 2018

TOP
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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[No items of interest noted today.] 

  1. Items Scheduled for Publication in Future Federal Register Editions
  2. Commerce/BIS: (No new postings.)
  3. DHS/CBP Posts Harmonized System Update 1803
  4. DHS/CBP Updates ACE Portal Account Reset Policy
  5. DoD/DSS Posts Guidance on Implementation of SEAD 4 Concerning Disposition of Foreign Passports of Cleared Employees
  6. State/DDTC: (No new postings.)
  7. EU Amends Regulation Concerning Tariff and Statistical Nomenclature, and Common Customs Tariff
  1. Expeditors News: “Next Customs Broker Exam is 15 Apr”
  2. Reuters: “U.S.-Iranian Man Gets 25 Years Prison for Trying to Buy Missiles for Iran”
  1. A. Witt: “Europol and Dutch National Police Enter Partnership with Intel Security and Antivirus Firm Kaspersky Lab Amid U.S. Ban”
  2. Global Trade News: “Weise Wednesday: What’s Happening with Steel and Aluminum Tariffs?”
  3. M. Volkov: “Compliance Needs to Understand Business”
  4. Gary Stanley’s EC Tip of the Day
  5. R.C. Burns: “White House Sides with Qualcomm and Tries to Block Broadcom Hostile Takeover”
  1. ECTI Presents “Export Compliance Essentials for Sales and Marketing” Webinar, 28 Mar
  1. Bartlett’s Unfamiliar Quotations 
  2. Are Your Copies of Regulations Up to Date? Latest Amendments: ATF (15 Jan 2016), Customs (22 Feb 2018), DOD/NISPOM (18 May 2016), EAR (16 Feb 2018), FACR/OFAC (5 Mar 2018), FTR (20 Sep 2017), HTSUS (14 Mar 2018), ITAR (14 Feb 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)

* President; PROCLAMATIONS; Trade [Publication Date: 15 March 2018.]:
  – Aluminum Imports Into U.S.; Adjustments (Proc. 9704)
  – Steel Imports Into U.S.; Adjustments (Proc. 9705)
* * * * * * * * * * * * * * * * * * * *

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(Source:
CSMS #18-000219, 14 Mar 2018.)
 
Harmonized System Update (HSU) 1803 was created on March 13, 2018 and contains 449 ABI records and 92 harmonized tariff records.
 
This update includes modifications made as a result of the two Presidential Proclamations enacting Section 232 tariffs on steel and aluminum imports. New harmonized tariff records have been added to both our Production and Certification Environments. These changes will take effect on March 23, 2018.
 
Participating Government Agency (PGA) indicators were updated as well.
 
Adjustments required by the verification of the 2018 Harmonized Tariff Schedule (HTS) are included also.
 
The modified records are currently available to all ABI participants and can be retrieved electronically via the procedures indicated in the CATAIR. For further information about this process, please contact your client representative. For all other questions regarding this message, please contact Jennifer Keeling via email at Jennifer.L.Keeling@cbp.dhs.gov.
 
  – Related CSMS No. 18-000207
* * * * * * * * * * * * * * * * * * * * 

(Source:
CSMS #18-000216, 13 Mar 2018.)
 
To satisfy audit requirements and comply with DHS policies, CBP has implemented changes to the ACE portal password policy.
 
If a user’s ACE Portal account is suspended due to inactivity, the user must contact their account owner or proxy account owner to have the account unlocked and password reset. Once the password is reset, a temporary password will be provided.   The user MUST log in on the SAME day to change the temporary password and subsequently log on to the ACE Portal.
 
If the user does not log in to the ACE portal the same day the account will be suspended again.
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(Source:
DoD/DSS, 13 Mar 2018.)
 
DSS issues guidance for cleared contractors on the implementation of SEAD 4 in relation to disposition of foreign passports belonging to cleared employees

On December 10, 2016, the Director of National Intelligence signed Security Executive Agent Directive 4 (SEAD 4), “National Security Adjudicative Guidelines,” which became effective on June 08, 2017. SEAD 4 establishes the single common adjudicative criteria for all covered individuals who require initial or continued eligibility for access to classified information or eligibility to hold a sensitive position. The guidelines reflected in the SEAD 4 supersede all previously issued national security adjudicative criteria or guidelines.

 
This guidance provides for industry implementation of the SEAD 4 Adjudicative Guidelines related to the disposition of foreign passports belonging to cleared employees that have been retained by Contractors in accordance with DoD directions or decisions under the former Adjudicative Guidelines. In accordance with SEAD 4, cleared contractors will not be asked by the DoD Consolidated Adjudications Facility (CAF) to routinely retain or destroy foreign passports and/or identity cards as a means of mitigating security concerns for individuals who maintain dual citizenship with other countries.

In order to implement SEAD 4, cleared contractors who have retained a cleared employee’s foreign passport or identity card based on DoD directions or personnel security adjudicative decisions should immediately return the foreign passport or identity card to the cleared employee.

Upon returning the foreign passport or identity card to the cleared employee, the facility security officer, or designated JPAS user acting on behalf of the contractor, will remind the cleared employee of their responsibility to enter and exit the United States using a U.S. passport, to report all unofficial foreign travel, and to report the use of a foreign passport when traveling outside the United States.

The cleared contractor will submit incident reports if any cleared employees report use of a foreign passport to enter or exit the United States, or report the use of a foreign passport when traveling outside of the United States.

Training resources related to reporting and the “Foreign Preference” Adjudicative Guideline are available from the DSS Center for Development of Security Excellence (CDSE).

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Regulations:
  – Commission Implementing Regulation (EU) 2018/396 of 13 March 2018 amending Annex I to Council Regulation (EEC) No 2658/87 on the tariff and statistical nomenclature and on the Common Customs Tariff
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NWSNEWS

NWS_a1
8. Expeditors News: “Next Customs Broker Exam is 15 Apr”
(Source: Expeditors News, 13 Mar 2018.)
 
U.S. Customs and Border Protection (CBP) has posted a notice to its website announcing the April 2018 Customs Broker License Examination. CBP states that the exam will be held on Wednesday, April 25, 2018, at various locations throughout the United States. 
 
The exam, which will last 4.5 hours, consists of 80 multiple-choice questions, and requires a score of 75 percent in order to receive a passing grade.  This exam will be administered in an electronic format to align with the final rule, “Modernization of the Customs Broker Exam.”
 
Customs stated that the April 2018 examination was written using the following references:
 
  – Harmonized Tariff Schedule of the United States (2017 Basic Edition)  
  – Title 19, Code of Federal Regulations (2016, Revised as of April 1, 2016 or 2017, Parts 1 to 199) 
  – Instructions for Preparation of CBP Form 7501 (July 24, 2012)  
  – Right to Make Entry Directive 3530-002A
 
CBP has also stated that, “All unsuccessful October 2017 examinees will be automatically registered for the April 25, 2018 exam.”
 
Guidelines to register for the exam are posted on CBP’s website. Registrations close March 16, 2018.
 
The Announcement may be viewed online here.

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NWS_a2
9. Reuters: “U.S.-Iranian Man Gets 25 Years Prison for Trying to Buy Missiles for Iran”
(Source: Reuters, 14 Mar 2018.)
 
A dual citizen of Iran and the United States was sentenced on Wednesday to 25 years in prison after he was found guilty of trying to buy surface-to-air missiles and aircraft components for the government of Iran in violation of U.S. sanctions.
 
Reza Olangian, 57, was sentenced by U.S. District Judge Loretta Preska in Manhattan. The sentence is the minimum allowed under federal law.
 
Prosecutors had asked the judge to impose a sentence that was longer than the minimum, although short of the life sentence suggested by federal guidelines. Preska said she did not believe a longer sentence was necessary.
 
  “I think Judge Preska saw that 25 years is an extraordinarily long time and that Mr. Olangian did not rise to the level of something as egregious as that,” Gregory Morvillo, Olangian’s lawyer, said after the sentencing.
 
Olangian was convicted by a jury in November 2016 of crimes that included conspiring to acquire and transfer anti-aircraft missiles.
 
His lawyers have said in court filings that Olangian will appeal his conviction. At his trial, they said Olangian was an opponent of the government of Iran, and that his efforts to broker weapons sales were actually meant as a sting operation to expose Iran’s efforts to evade U.S. sanctions.
 
Olangian was born in Iran, came to the United States as a student in 1979, became a U.S. citizen in 1999 and moved back to Iran in 2004, according to court filings.
 
He was arrested in Estonia in October 2012 and extradited to the United States following a sting operation orchestrated by the U.S. Drug Enforcement Administration.
 
Prosecutors said that in 2012, Olangian met in Ukraine with a DEA informant posing as a Russian weapons broker to arrange for the purchase of surface-to-air missiles and various military aircraft components.
 
Prosecutors said Olangian negotiated a deal involving 10 missiles and dozens of aircraft parts, and stated during a video conference with the informant that he ultimately wanted to acquire at least 200 missiles. They said he aimed to make a substantial profit selling the weapons.

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COMMCOMMENTARY

COMM_a01
10. A. Witt: “Europol and Dutch National Police Enter Partnership with Intel Security and Antivirus Firm Kaspersky Lab Amid U.S. Ban”
(Source: Full Circle Compliance, 14 Mar 2018.)
 
* Author: Alexander Witt, Associate, Full Circle Compliance, awitt@fullcirclecompliance.eu, +31 (0) 6 154 50 434.
 
In July 2016, Europol, the Dutch National Police, Kaspersky Lab, and Intel Security joined forces under the “No-More-Ransom” initiative to unite the public and private sector in the fight against ransomware. The parties developed a website that provides tools to victims to decrypt their data. The initiative’s goal was to create a non-commercial platform to counteract the increasing threat of ransomware. According to the new head of Europol’s Europe Cybercrime Centre, Steven Wilson, ransomware forms part of the top-3 threats to digital data in Europe.
 
The new partnership against cyber-crime in Europe comes amid new U.S. legislation banning Kaspersky Lab from federal agencies and government contractors. The Moscow-based antivirus firm has been hit hard by new U.S. laws. In July, U.S. President Donald Trump removed Kaspersky from a list of approved IT vendors, and in December 2017, Trump signed the National Defense Authorization Act for Fiscal Year 2018, [FN/1] banning the use of Kaspersky Lab products within the U.S. Government. Trump’s decision came after a months-long effort to purge the Russian antivirus maker from federal agencies amid concerns of Kremlin-related vulnerability. 

Article 1634 of the Act targets Kaspersky Lab by prohibiting every federal department, agency, or any other federal organization to make use of Kaspersky Lab products, including hardware, software, and other Kaspersky services. U.S. government agencies and contractors were directed to remove Kaspersky Lab products by October 1, 2018. Kaspersky Lab insists that they don’t spy for the Russians. Kaspersky announced that it would close its Washington, DC, office and focus on non-government customers in the United States through its remaining offices.
 
————-
  [FN/1]. H.R.2810, Pub. Law No: 115-91.

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(Source:
Integration Point
Blog, 14 Mar 2018.)
 
Welcome to Weise Wednesday! Every week we will share a brief Q&A with the former U.S. Commissioner of Customs, Mr. George Weise. Please send questions to AskGeorge@IntegrationPoint.com.
 
Q: What is happening with President Trump’s initiative to impose increased tariffs on steel and aluminum products?
 
A: This action has been building since April 2017 when President Trump directed the Department of Commerce to conduct investigations under section 232 of the Trade Expansion Act of 1962 to determine whether imports of steel and aluminum threaten national security. That provision, which has rarely been used, authorizes the President to restrict imports into the U.S. of any article being imported “in such quantities or under such circumstances as to threaten the national security.” 
 
The Department of Commerce issued separate reports on February 16, 2018, with affirmative findings that imports of both steel and aluminum were threatening national security. Both reports contained specific options for the President to consider in addressing these threats, including increasing tariffs and imposing quotas.
 
On March 11, 2018, the President issued a proclamation imposing a 25% tariff on imports of certain steel products and one imposing a 10% tariff on imports of certain aluminum products. In recognition of the ongoing discussions with Canada and Mexico to amend NAFTA, the proclamations exempt those two countries from the new tariffs. The President indicated, however, that those exemptions could be removed if a satisfactory agreement is not reached on NAFTA.
 
The proclamations also leave the door open for additional country exclusions. The proclamations encourage “any country with which we have a security relationship” to propose alternative means to address the U.S. national security threat. If “satisfactory alternative means to address the threat to the national security” can be worked out, the President may remove or modify the tariffs on imports from that country.
 
Which HTS numbers will be affected?
 
Under the proclamations, the new tariffs will apply to specified steel and aluminum products entering the U.S., or withdrawn from warehouse for consumption, on or after March 23, 2018, and will remain in place indefinitely. Unless modified in annexes that are expected to become available in the coming days, the tariffs will apply to imports from all countries, except Canada and Mexico, for imports classified within specified U.S. Harmonized Tariff Schedule (HTS) provisions.
 
The applicable HTS provisions for steel are:
  – 7206.10 through 7216.50
  – 7216.99 through 7301.10
  – 7302.10
  – 7302.40 through 7302.90
  – 7304.10 through 7306.00
 
Aluminum products covered by the proclamation are:
  – Unwrought aluminum (HTS 7601)
  – Aluminum bars, rods, and profiles (HTS 7604)
  – Aluminum wire (HTS 7605)
  – Aluminum plate, sheet, strip, and foil (flat rolled products in HTS 7606 and 7607)
  – Aluminum tubes and pipes and tube and pipe fittings (HTS 7608 and 7609)
  – Aluminum castings and forgings (HTS 7616.99.51.60 and 7616.99.51.70)
 
Stay tuned for the expected updated annexes providing further detail on the covered HTS numbers. Everyone at Integration Point will be watching closely for any further updates and will be passing them along to our clients as soon as possible.

The proclamations also provide for the possibility of covered products being excluded in the future. The Department of Commerce is directed to establish procedures within 10 days of the March 11 proclamations date to administer exclusion requests. The proclamations delegate authority to the Secretary of Commerce to exclude from the tariffs those goods “determined not to be produced in the United States in a sufficient and reasonably available amount or of a satisfactory quality.” The proclamations also authorize the Secretary to provide such relief “based upon specific national security considerations.” Again, importers are urged to watch closely in the next few days for the release of the applicable procedures to seek exclusions from the new tariffs.
 
[Editor’s Note: Please review Harmonized System Update 1803, included in this Daily Bugle, item 3.]
 
Takeaway
 
These are indeed challenging times for global traders. On behalf of our clients, we will continue to closely monitor further developments on the implementation of these proclamations and examine the reactions of our trading partners for possible retaliatory actions. It is critically important for all of us to stay on top of this issue because of the broad impact it is likely to have on so many companies.

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(Source:
Volkov Law Group Blog, 13 Mar 2018. Reprinted by permission.)
 
* Author: Michael Volkov, Esq., Volkov Law Group, mvolkov@volkovlaw.com, 240-505-1992.
 
A chief compliance officer needs to be independent and have adequate authority within the organization.  But do not get confused by the concept of independence.  Compliance depends on collaborative relationships with other corporate functions.
 
Most importantly, a compliance program’s success depends on its ability to embrace the company’s business.  To do so, the compliance staff has to learn and understand the company’s business inside and out.
 
If a compliance staff sits in its respective offices and waits to hear from employees about compliance issues, the compliance program is doomed to fail.  On the other hand, if the compliance staff is proactive, engaging the business, listening to the business, and promoting the success of the business, the compliance team will build credibility with the business staff.
 
To build such a relationship, compliance personnel have to listen and learn, and express their understanding of the business objectives.  With this credibility, compliance staff can truly engage the business in the compliance mission.  In other words, by building a respectful, collaborative relationship with the business, compliance can learn from the business and in turn can teach the business the importance of compliance.
 
I am always reminded of a statement made by a Country Manager for China from a company who told me, “I know if I don’t take responsibility for compliance, no one will in China.” Such a statement reflects exactly what I am talking about. This attitude, however, reflects a positive working relationship between compliance and the business. In this context, the business manager and compliance share a common perspective – business growth and compliance go hand in hand.
 
By contrast, I have heard compliance officers freely admit they do not understand the company’s business. I was struck by the admission – it made me wonder how can this compliance team engage the business?
 
A compliance team that does not understand a company’s business is operating as an outsider with little credibility or influence on the business. A detached compliance team is a recipe for disaster, where the business views the compliance team as outsiders who are only seeking to block or frustrate business development. In these situations, business staff may circumvent compliance controls and brush off restrictions as irrelevant or meaningless.
 
Business without compliance is sure to result in misconduct.  Eventually, the company’s culture will break down because of the lack of integration of these two important functions.  A company’s culture and its compliance program depend on business accountability for compliance.  It is impossible for a compliance staff to embed and monitor a successful compliance program without earning the full cooperation of the business.
 
A chief compliance officer has to prioritize the relationship with the business.  Here are a few key questions that a chief compliance officer should ask:
 
  – Does compliance have a seat at the table with the business throughout the organization?
  – Does compliance participate in business planning and development activities?
  – Does compliance provide a value-add for the business, promoting compliance as a marketing advantage for business against competitors?
  – Does compliance understand business objectives, operations and incentives?
  – Does compliance devote adequate attention to maintaining and improving its relationship with business leaders, managers and staff?
 
These basic questions have to be addressed and candidly answered.  In most situations, a chief compliance officer can quickly identify weaknesses in its interactions with the business.  To remedy these weaknesses, the chief compliance officer should develop a specific action plan to promote compliance’s relationship with the business.

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* Author: Gary Stanley, Esq., Global Legal Services, PC, (202) 352-3059,
gstanley@glstrade.com
.

For purposes of the ITAR, the Missile Technology Control Regime (MTCR) means the policy statement among the United States, the United Kingdom, the Federal Republic of Germany, France, Italy, Canada, and Japan, announced on April 16, 1987, to restrict sensitive missile-relevant transfers based on the MTCR Annex, and any amendments thereto. The term “MTCR Annex” means the MTCR Guidelines and the Equipment, Software and Technology Annex of the MTCR, and any amendments thereto.Section 71(a) of the Arms Export Control Act (22 U.S.C. 2797) refers to the establishment as part of the U.S. Munitions List of a list of all items on the MTCR Annex, the export of which is not controlled under Section 6(1) of the Export Administration Act of 1979 (50 U.S.C. App. 2405(1)), as amended. MTCR Annex items specified in the U.S. Munitions List shall be identified in §121.16 of this subchapter or annotated by the parenthetical “(MT)” at the end of each applicable paragraph.

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(Source:
Export Law Blog
, 13 Mar 2018.) Reprinted by permission.)
 
* Author: R. Clifton Burns, Esq., Bryan Cave LLP, Wash DC,
Clif.Burns@bryancave.com
, 202-508-6067).
 
Late yesterday, the White House issued an order forbidding Broadcom from continuing with its efforts to takeover Qualcomm. The surprise move by the White House seems to have been designed to prevent Broadcom from playing its, er, trump card by reincorporating in the United States. This would block the power of the Committee on Foreign Investment in the United States (“CFIUS”) from reviewing the transaction and prevent the President from prohibiting or setting the transaction aside. Under the Defense Production Act, CFIUS and the President may only rely on national security considerations to block a “covered transaction,” which is defined as “any merger, acquisition, or takeover … by or with any foreign person which could result in foreign control of any person engaged in interstate commerce in the United States.” If Broadcom, a Singapore corporation traded on NASDAQ, reincorporated in the United States, as it announced that it intended to do after the tax bill was passed, it would no longer be a foreign person as defined in section 800.216 of the CFIUS regulations. At that point, both the President and CFIUS would have no power to block the takeover.
 
The timeline here is informative. On March 4, CFIUS issued an order to Qualcomm to delay its annual shareholders meeting from March 6, 2018, to April 5 to give it time to investigate the transaction. Then on March 12, Broadcom announced that it would complete its re-domiciliation in the United States by April 3, giving it plenty of time to continue its efforts to acquire Qualcomm at the April 6 shareholders meeting, except not as a foreign person but as a U.S. person immune from CFIUS review. A few hours later that day, the White House released its order blocking the Broadcom bid.
 
The most interesting part of that order is Section 2(g), which states:
 
Any transaction or other device entered into or employed for the purpose of, or with the effect of, avoiding or circumventing this order is prohibited.
 
Both the timing and language of this section clearly suggest that it is intended to prohibit Broadcom from re-domiciling in the United States for the purpose of continuing its hostile takeover campaign. In addition, section 2(d) orders Qualcomm to hold its annual meeting 10 days after shareholder notice is given, which notice is to be given as soon as possible. Ten days is the shortest notice period permissible under section 222 of the Delaware General Corporation Law. This, of course, is clearly designed to have the meeting before the date, April 3, by which Broadcom announced it would no longer be a foreign person.
 
Can the White House get away with this? Although section 721(e) says that the actions by the President under section 721(d) are not reviewable by any court, the actions here still have to be taken under section 721(d). The actions permitted by section 721(d) are those that “the President considers appropriate to suspend or prohibit any covered transaction.” But here the President is clearly trying to prohibit a transaction that is not covered. If Broadcom completes its transition to a U.S. person before Qualcomm can hold its annual shareholders meeting, nothing – and that includes section 2(g) of the order – can stop Broadcom from pursuing its takeover bid.
 
As they say, praise the Lord, pay the lawyers, and pass the popcorn.

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TEEX/IM TRAINING EVENTS & CONFERENCES

TE_a115. ECTI Presents “Export Compliance Essentials for Sales and Marketing” Webinar, 28 Mar

(Source: Danielle Hatch, danielle@learnexportcompliance.com)

* What: Export Compliance Essentials for Sales and Marketing
* When: March 28, 2018; 1:00 p.m. (EDT)
* Where: Webinar
* Sponsor: Export Compliance Training Institute (ECTI)
* ECTI Speaker: Scott Gearity
* Register: Here or Danielle Hatch, 540-433-3977, danielle@learnexportcompliance.com.
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ENEDITOR’S NOTES

 
* Albert Einstein (14 March 1879 – 18 April 1955) was a German-born theoretical physicist. He developed the theory of relativity, and is best known in popular culture for his mass-energy equivalence formula E = mc2, dubbed “the world’s most famous equation.”  In 1921 he received the Nobel Prize in Physics.)
  – “Whoever is careless with the truth in small matters cannot be trusted with important matters.”
 
* Paul Ehrlich (14 Mar 1854 – 20 Aug 1915, was a German physician and scientist. His 1968 book, The Population Bomb, warned of the mass starvation of humans in the 1970s and 1980s due to overpopulation, as well as other major societal upheavals, and advocated immediate action to limit population growth.)
  – “By the year 2000 the United Kingdom will be simply a small group of impoverished islands, inhabited by some 70 million hungry people.”
 
* Today is National Pi Day!  It’s the annual celebration of the mathematical constant π (pi). Pi Day is observed on March 14 (“3/14” in the month/day date format) since 3, 1, and 4 are the first three significant digits of π.  In 2009, the United States House of Representatives supported the designation of Pi Day.  The earliest known official or large-scale celebration of Pi Day was organized by Larry Shaw in 1988 at the San Francisco Exploratorium, where Shaw worked as a physicist, with staff and public marching around one of its circular spaces, then consuming fruit pies.

The “π pie”, served annually on 14 March at Delft University of Technology, Delft, Netherlands.
 

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EN_a317
. 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: 22 Feb 2018: 83 FR 7608-7610: Technical Amendment to List of User Fee Airports: Name Changes of Several Airports and the Addition of Five Airports
 
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: 
16 Feb 2018:
83 FR 6949-6956
: Russian Sanctions: Addition of Certain Entities to the Entity List [Addition of 21 Entities to Entity List.]

  
*
FOREIGN ASSETS CONTROL REGULATIONS (OFAC FACR)
: 31 CFR, Parts 500-599, Embargoes, Sanctions, Executive Orders

  – Last Amendment: 5 Mar 2018:
83 FR 9182-9204: North Korea 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: 14 Mar 2018: Harmonized System Update 1803, containing 449 ABI records and 92 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: 14 Feb 2018: 83 FR 6457-6458: Amendment to the International Traffic in Arms Regulations: Addition of South Sudan [Amends ITAR Part 126.] 

  – The only available fully updated copy (latest edition: 14 Feb 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_a0318
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.

* RIGHTS & RESTRICTIONS: This email contains no proprietary, classified, or export-controlled information. All items are obtained from public sources or are published with permission of private contributors, and may be freely circulated without further permission, provided attribution is given to “The Export/Import Daily Bugle of (date)”. Any further use of contributors’ material, however, must comply with applicable copyright laws.

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


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