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18-0320 Tuesday “Daily Bugle”

18-0320 Tuesday “Daily Bugle”

Tuesday, 20 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: Volodymyr Nedoviz of Kearney, NJ, Denied Export Privileges for Ten Years
  3. DHS/CBP Updates Drawback CATAIR and Error Dictionary Documents
  4. DHS/CBP Updates Export Manifest IGs & AESTIR Appendix A – Commodity Filing Response Messages
  5. State/DDTC Announces DTAS Outage, 22 Mar
  6. Treasury/OFAC Reaffirms Commitment to Fostering Internet Freedom and Supporting the Iranian People
  7. EU Amends Restrictive Measures Concerning Bosnia and Herzegovina
  1. Global Trade News: “Mexico and the EU Push Forward on FTA Renegotiations”
  2. Reuters: “Exclusive: Trump to Boost Exports of Lethal Drones to More U.S. Allies”
  3. ST&R Trade Report: “EU Issues Extensive List of Potential Targets for Steel/Aluminum Tariff Retaliation”
  1. D.M. Edelman: “Section 232 Steel and Aluminum Tariff Exemptions – What You Need to Know”
  2. J. Helder, C. Klaui & D. Lund: “EU Trade Update”
  3. Gary Stanley’s EC Tip of the Day
  1. ECS Presents “ITAR/EAR Boot Camp,” 10-11 Jul in Long Beach CA
  2. ECTI Presents “How to Improve Export Compliance with Effective Audits” Webinar, 12 Apr
  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 (19 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; EXECUTIVE ORDERS; Venezuela; National Emergency, Additional Steps to Address (EO 13827) [Publication Date: 21 March 2018.]
 
[Editor’s Note: The Executive Order was already included in yesterday’s Daily Bugle, item #7.]
 
* U.S. Customs and Border Protection; NOTICES; National Customs Automation Program eBond Test [Publication Date: 21 March 2018.]

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

(Source:
Commerce/BIS, 19 March 2018.)
 
* Respondent: Volodymyr Nedoviz, Kearney, NJ
* Charges: On 11 January 2018, in the U.S. District Court for the Eastern District of New York, Volodymyr Nedoviz (“Nedoviz”) was convicted of violating Section 38 of the Arms Export Control Act (22 U.S.C. § 2778 (2012)) (“AECA”). Specifically, Nedoviz was convicted of knowingly, intentionally and willfully exporting and attempting to export from the United States to Ukraine night vision and thermal imaging equipment designated as defense articles on the United States Munitions List, namely an Armasight Zeus-Pro 640 2-16×50 (60Hz) Thermal Imaging sighting instrument, without the required U.S. Department of State license. Nedoviz was sentenced to time served, two years of supervised release, a criminal forfeiture of $2,500, and a special assessment of $100.
* Debarred: BIS has received notice of Nedoviz’s conviction for violation Section 38 of the AECA. Based upon review and consultations with BIS’s Office of Export Enforcement, and the facts available it is decided that Nedoviz is denied export privileges for a period of 10 years from the date of his conviction, until 11 January 2028.
* Date of Order: 16 March 2018
* * * * * * * * * * * * * * * * * * * *

(Source:
CSMS #18-000233, 19 Mar 2018.)
 
Updated Drawback CATAIR and Error Dictionary Documents are now posted on CBP.GOV at the following locations:

  – Drawback CATAIR
  – Drawback Error Dictionary

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(Source:
CSMS #18-000235, 20 March 2018.)
 
U.S. Customs and Border Protection (CBP) has updated the following Export Manifest Implementation Guides. All changes are listed in the ACE Export Manifest Summary of Changes.
 
  (1) ACE Exports Ocean CAMIR – Export Manifest – Input to Customs and Border Protection
  (2) ACE Exports Rail X12 – 350 Customs Status Information
  (3) ACE Exports Rail X12 – 358 Customs Consist Information
  (4) ACE Exports Ocean X12 – 350 Customs Status Information
  (5) ACE Exports Ocean X12 – 309 Customs Manifest
  (6) Export Manifest Appendices
  (7) ACE Export Manifest Summary of Changes
 
The updated documents may be accessed here.
 
  – Related: CSMS 18-000107
* * * * * * * * * * * * * * * * * * * * 

(Source:
State/DDTC, 20 Mar 2018.)
 
The DTAS information systems will be unavailable from 4:00AM-6:00AM Thursday, March 22nd, 2018 for scheduled routine maintenance. The DTAS systems will be available Thursday, March 22nd, 2018 after 6:00AM.
* * * * * * * * * * * * * * * * * * * * 

(Source:
Treasury/OFAC, 19 Mar 2018.)
 
The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) today highlighted existing guidance to underscore the U.S. Government’s ongoing commitment to ensure that the Iranian people can exercise their universal right to freedom of expression and can freely access information via the Internet.  OFAC’s guidance, authorizations, and licensing policies support the Administration’s continued commitment to promote the free flow of information to citizens of Iran – which the Iranian regime has consistently denied to its people. 
 
“The Iranian regime has demonstrated contempt for fundamental freedoms, such as expression, assembly, and association.  By restricting access to satellite services, blocking access to social media sites and apps, and imposing other Internet restrictions, the regime seeks to impede the Iranian people from freely communicating with the outside world and with each other,” said Secretary of the Treasury Steven T. Mnuchin.  “The Iranian people should be free to seek, receive, and impart information as they see fit.  The United States is committed to empowering Iranians to engage with the world, express themselves, and hold the Iranian regime accountable for its actions.”
 
OFAC continues to foster and support the free flow of information to the Iranian people through the following authorizations and licensing policies: 
 
General Licenses
.  OFAC has two Iran-related general licenses that authorize the provision of certain hardware, software, and services incident to the exchange of personal communications over the Internet, such as instant messaging, chat and email, and social networking software and services, as well as certain apps for mobile operating systems, anti-censorship tools, anti-tracking software, mobile phones, and other devices.
 
  – Section 560.540 of the Iranian Transactions and Sanctions Regulations (ITSR), 31 C.F.R. Part 560, authorizes the exportation from the United States or by U.S. persons, wherever located, to persons in Iran of certain publicly available, no-cost services incident to the exchange of personal communications over the Internet and certain publicly available, no-cost software necessary to enable such services.    
  – General License D-1 (GL D-1), which is broader than the general license in section 560.540 of the ITSR, authorizes the export and reexport of fee-based services and software incident to the exchange of personal communications over the Internet, as well as the export, reexport, or provision of certain software and hardware incident to personal communications.  The Annex to GL D-1 provides a list of services, software, and hardware that are considered “incident to personal communications” and eligible for export or reexport to Iran under this general license.
 
Guidance
.  OFAC has provided extensive guidance on its website on these general licenses, including “Interpretive Guidance and a Statement of Licensing Policy on Internet Freedom in Iran” (describing the authorization in Section 560.540 of the ITSR and OFAC’s policy for reviewing specific licenses in this area) and multiple “Frequently Asked Questions” (FAQs) on GL D-1 (FAQs 337-348 and FAQs 434-443).   
 
Licensing Policies
.  OFAC will consider applications to provide products and services outside the scope of these authorizations on a case-by-case basis based on U.S. foreign policy and national security interests.  Section 560.540 includes a specific licensing policy for the export of other services and software incident to information-sharing over the Internet, subject to certain conditions.  Additionally, GL D-1 also includes a specific licensing policy for the export of other services, software, or hardware incident to personal communications that are outside the scope of the general license. 
 
As the Iranian people seek to exercise their universal right to freedom of expression and continue to seek access to information via the Internet, OFAC remains committed to engaging with the private sector to provide guidance on the range of activities authorized by section 560.540 and GL D-1 of the ITSR.  If you require assistance with interpreting the authorizations contained in section 560.540 and GL D-1 of the ITSR or assessing how they apply to your situation, or need guidance on how to apply for a specific license, please contact OFAC’s Licensing Division online, by phone at 202-622-2480, or by email at ofac_feedback@do.treas.gov.
 

  –View the OFAC guidance concerning Iran and GL D-1.

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Decisions:
* Council Decision (CFSP) 2018/459 of 19 March 2018 amending Decision 2011/173/CFSP concerning restrictive measures in view of the situation in Bosnia and Herzegovina
* * * * * * * * * * * * * * * * * * * * 

NWSNEWS

NWS_a1
8. Global Trade News: “Mexico and the EU Push Forward on FTA Renegotiations”
(Source: Integration Point Blog, 20 Mar 2018.)
 
Mexico and the European Union (EU) continue to push forward on the renegotiation of their two-decade-old free trade agreement (FTA). They recently concluded their ninth round of negotiations, agreeing upon five new chapters and making important progress on others.
 
The five new chapters are on technical barriers to trade, state-owned enterprises, subsidies, anti-corruption, and trade in services. The other chapters already completed include small and medium enterprises, competition policy, trade and sustainable development, transparency, energy, and raw materials. However, negotiators are still discussing specific issues in the chapters on trade in goods, rules of origin, and intellectual property.
 
According to Mexico’s deputy foreign minister Carlos Alberto de Icaza, “We have completed the chapters on political capital and cooperation. We are 95% complete on commercial terms, as we have already closed 10 chapters on market access and technical issues,” he said.
 
The EU is the second-largest foreign investor in Mexico, only after the United States. Since establishing the FTA, trade between the two parties has tripled over the past 17 years – increasing from a yearly $20.8 billion to $61.7 billion.  

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NWS_a2
9. Reuters: “Exclusive: Trump to Boost Exports of Lethal Drones to More U.S. Allies”
(Source: Reuters, 20 Mar 2018.) [Excerpts.]
 
President Donald Trump will soon make it easier to export some types of lethal U.S.-made drones to potentially dozens more allies and partners, according to people familiar with the plan.
 
Trump is expected to ease rules for such foreign sales under a long-delayed new policy on unmanned military aircraft due to be rolled out as early as this month, the first phase of a broader overhaul of arms export regulations.
 
U.S. drone manufacturers, facing growing competition overseas especially from Chinese and Israeli rivals who often sell under lighter restrictions, have lobbied hard for the rule changes.
 
The White House is expected to tout the move as part of Trump’s “Buy American” initiative to create jobs and reduce the U.S. trade deficit.
 
Human rights and arms control advocates, however, warn it risks fueling violence and instability in regions such as the Middle East and South Asia. An announcement of the new policy has been held up for months amid deliberations on how far to go in unleashing drones exports. That delay prompted Defense Secretary Jim Mattis to write to Trump’s national security adviser H.R. McMaster to press him to expedite the policy shift to avoid losing out on sales to certain countries, an industry source and two U.S officials said.
 
A key thrust of the policy will be to lower barriers to sales of smaller hunter-killer drones that carry fewer missiles and travel shorter distances than larger models such as the iconic Predator drone, the sources said. Export regulations will also be eased for surveillance drones of all sizes, they said, speaking on condition of anonymity.
 
Even though Trump will stop short of completely opening up sales of top-of-the-line lethal drones, it will mark a major step toward overcoming a long-standing U.S. taboo against selling armed drones to countries other than a handful of Washington’s most trusted allies. Military drones have changed the face of modern warfare, with U.S. models in greatest demand.
 
Trump’s aides had initially focused mostly on devising ways to boost sales of “eye in the sky” drones used for tracking and targeting. But after a more than year-long review, they have crafted a plan that will reinterpret some rules to allow for more armed drone sales overseas.
 
A list of potential buyers being given fast-track treatment is expected to expand to include more NATO members, Saudi Arabia and other Gulf partners as well as treaty allies such as Japan and South Korea, the people familiar with the plan said. …
 
Trump’s predecessor, President Barack Obama, introduced revised rules in 2015 aimed at increasing military drone exports. But U.S. manufacturers complained they were still too restrictive. U.S. drone makers are vying for a larger share of the global military drone market, which the Teal Group, a market research firm, has forecast will rise from $2.8 billion in sales in 2016 to $9.4 billion in 2025.
 
The new policy is expected to be unveiled in coming weeks, people close to the matter said, though they also cautioned that the exact timing remains in flux.
 
Among the changes will be a more lenient application by the U.S. government of an arms export principle known as “presumption of denial.” This has impeded many drone deals by automatically denying approval unless a compelling security reason is given together with strict buyer agreements to use the weapons in accordance with international law.
 
One U.S. official said the new policy would “change our calculus” by easing those restrictions on whether to allow any given sale.  
The MTCR, a 1987 missile-control pact signed by the United States and 34 other countries, will still require strict export controls on Predator-type drones, which it classifies as Category 1, those with a payload of over 1,100 pounds (500 kg).

However, the Trump administration is seeking to renegotiate the MTCR accord to eventually make it easier to export the larger armed drones.

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NWS_a3
10. ST&R Trade Report: “EU Issues Extensive List of Potential Targets for Steel/Aluminum Tariff Retaliation”
 
The European Union has issued two lists of U.S. exports to the 28-member bloc that could be hit with new or higher tariffs in response to the additional import duties on steel and aluminum that the U.S. plans to impose as of March 23. Comments on these lists from private stakeholders affected by either the U.S. tariffs or the potential EU response are due March 26.
 
The first list comprises goods for which EU tariff concessions to the U.S. could be suspended as early as late June (90 days after the U.S. tariffs are imposed). This list is primarily composed of a wide range of iron and steel products (including household appliances and articles) but also includes agricultural goods such as corn, rice, orange juice, whiskey, and tobacco products; consumer goods such as cosmetics, t-shirts, shorts, pants, and footwear; and other goods such as motorcycles and boats.
 
The second list details U.S. goods on which increased duties could be imposed in addition to the suspension of tariff concessions, including whisky, citrus oils, paper products, yarn, fabric, apparel, footwear, bedding, kitchenware, household articles, playing cards, glass, jewelry, aluminum items, dishwashers, clothes washers, batteries, electronics, electrical machines, motor vehicles, and boats. However, a Reuters article states that these measures would only be taken if the World Trade Organization “declared the U.S. tariffs illegal or after a period of three years.” The EU adds that its decision on whether to impose such duties will take into account “future developments including the final form of the [U.S.] measures as regards application to imports from the EU.”
 
View Document(s):

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COMMCOMMENTARY

COMM_a01
11. D.M. Edelman: “Section 232 Steel and Aluminum Tariff Exemptions – What You Need to Know”
(Source: Export Compliance Matters, 20 Mar 2018.)
        
* Author: Doreen M. Edelman, Esq., Baker Donelson LLP, 202-508-3460, dedelman@bakerdonelson.com
.
 
Section 232 tariffs on steel and aluminum come into effect this week. Here are the basic facts.
 
What tariffs are being imposed?
A 25% tariff on steel and a 10% tariff on aluminum imports.
 
When do they take effect?
Customs and Border Protection will begin collecting the tariffs on March 23, 2018.
 
What products are covered?
All steel products under HTS Codes 7206.10 through 7216.50, 7216.99-7301.10, 7302.10, 7302.40-7306.90.

Unwrought aluminum under HTS Code 7601, wrought aluminum under 7604-7609, and castings and forgings under 7616.99.51.
 
Will there be exemptions for imports from certain countries?
Right now Canada and Mexico are exempt temporarily while NAFTA negotiations are underway.

The President has also brought up or hinted at potential exemptions for numerous allies, including Australia, Japan, the E.U., the U.K., and Korea. But it remains to be seen how specific country exemptions to the tariffs will be implemented.
 
Will there be exclusions for imports of specific products?
Yes.
 
Where can I apply for or object to an exclusion request?
The Department of Commerce’s Bureau of Industry and Security has made available the forms for exclusion requests and objections to exclusion requests on its website, located here and here.
 
Will my filing be public?
Yes.
 
How long will it take to find out if my product is exempt?
Exclusion requests will be publicly posted for a 30-day comment period and processing time is supposed to take no more than 90-days.
 
How will a decision be made about the exemptions?
The Department of Commerce will grant specific product exclusions if it determines the steel and aluminum articles you are seeking to import are not produced in the United States in a sufficient and reasonable quantity or of a satisfactory quality. It will also take into account the national security factors outlined in Section 232.
 
What does it cost to file?
There is no cost to file.
 
Do I have to pay the duties up front even if I apply for an exclusion?
Likely.  Nothing has changed the existing requirement that all imports are subject to the duties unless exempt.

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* Authors: Jasper Helder, Esq., jasper.helder@akingump.com, +44 20-7661-5308; Chiara Klaui, Esq., chiara.klaui@akingump.com, +44 20-7661-5342; and Daniel Lund, Esq., daniel.lund@akingump.com, +44 20-7012-9653. All of Akin Gump Strauss Hauer & Feld LLP.
 
Key Points:
 
  – European Commission publishes survey on concept of “Specially Designed for Military Use,” and issues request for input for possible EU commercial policy measures targeting the United States
  – Netherlands introduces guidance note on Cloud exports, and General Export License NL010 for encryption items
  – EU launches consultation on establishment of customs valuation ruling database
 
European Commission Publishes Survey on Concept of “Specially Designed for Military Use”
 
The European Commission (the “Commission”) has published draft guidance on the concept of “specially designed for military use,” an expression widely used in the EU Common Military List and the Intra-EU Defense Directive. It has also published a survey requesting input from the European defense industry on this draft guidance; see link here. This guidance-once finalized-is aimed at helping achieve a common interpretation of this concept throughout the EU, which concept is currently subject to diverging interpretations between EU Member States. It is based on a two-pronged approach (i.e., it defines positive guidelines (catch), as well as negative guidelines (release)).
 
Items “specially designed for military use,” as applied to systems, platforms, equipment, components, accessories, materials, software and technology within the respective EU Member State’s national controls, taking into account characteristics, capabilities or functions that, as a result of development, uniquely distinguish them for the purposes described in the controls, are caught by the controls. If these items, however, meet one of the following conditions, they will not be considered “specially designed for military use”:
 
  (1) They have been assessed by the respective competent national authority in writing not to be controlled on the respective national control list.
  (2) They are of a minor mechanical, electrical or optical nature, they do not inherit unique production technology. and they have all of the following:
    – They are single-purpose.
    – They have not been explicitly assessed by the respective competent national authority to be specially designed for military use.
  (3) They are selected from a production line of commodities not specified in the respective national lists as derived from the EU Common Military List and the Intra-EU Defense Directive that happen to meet military specifications.
 
Netherlands Introduces Guidance Note on Cloud Exports
 
This guidance note clarifies that an export occurs when controlled technology uploaded to a Cloud is made available to people physically located outside of the Netherlands, even if those people are Dutch nationals. Similarly, the note confirms that an export occurs when the controlled technology is uploaded to a Cloud accessible to people located outside of the Netherlands, even if no such access has yet occurred. Where no such access has been provided, the export occurs at the time this access is granted.
 
Note that, according to this guidance, every person or entity that has access to the controlled technology will formally be considered a consignee thereof and must therefore be mentioned on the Dutch export license. This would include system administrators and Cloud providers, assuming that they have access to the controlled technology.

Commission Requesting Input for Possible EU Commercial Policy Measures Targeting the United States
 
The Commission is requesting input from EU stakeholders affected by the announced U.S. tariff increase on imports of certain steel and aluminium products to determine the impact of the U.S. measures, as well as the need and parameters of possible EU commercial policy measures to be adopted in response thereto; see link here.
 
In accordance with Article 5 of Regulation 654/2014, the commercial policy measures that the EU can adopt include (i) the suspension of tariff concessions and the imposition of new or increased customs duties; (ii) the introduction or increase of quantitative restrictions on imports or exports of goods, whether made effective through quotas, import or export licenses, or other measures; and (iii) the suspension of concessions regarding goods, services or suppliers in the area of public procurement.
 
EU Launches Consultation on Establishment of Customs Valuation Ruling Database
 
The EU has published an exploratory public consultation on the establishment in the EU of decisions relating to binding information in the field of customs valuation; see link here. The consultation is aimed at determining whether-similar to the European Binding Tariff Information (EBTI) database for binding information in the field of tariff classification-there is interest for the Commission to create a similar database for decisions on Binding Value Information (BVI). Such a database may be a useful tool for economic operators to understand the valuation treatment that they can expect at a national, EU Member State level under the EU customs valuation legislation. If such an interest exists, the Commission would like to understand the proposed scope of the BVI, as well as the elements (components) of the products’ customs value that could be covered by such decisions.
 
Netherlands Introduces General Export License NL010 for Encryption Items
 
The Netherlands has introduced a national General Export License NL010 covering the export of encryption items with ECCNs 5A002.a, 5D002.a, 5D002.c and 5E002 to all countries worldwide, with the exception of:
 
  (1) UGEA EU001 countries (i.e., Australia, Canada, Japan, Liechtenstein, New Zealand, Norway, Switzerland and the United States)
  (2) countries subject to an EU, Organization for Security and Co-operation in Europe (OSCE) or United Nations arms embargo
  (3) Afghanistan, Armenia, Azerbaijan, Bahrain, Bangladesh, Burundi, Cuba, Djibouti, Egypt, Equatorial Guinea, Ethiopia, Gambia, Guinea (Conakry), Guinea Bissau, India, Kazakhstan, Kuwait, Laos, Oman, Pakistan, Qatar, Rwanda, Saudi Arabia, Swaziland, Syria, Tadzhikistan, Thailand, Turkey, Turkmenistan, Ukraine, United Arab Emirates, Uzbekistan, Venezuela, Vietnam and Yemen.
 
Note that General Export License NL010 cannot be used:
 
  (1) if the exporter is aware, or has been informed by the competent authorities of the EU Member State in which he or she is established, that the products, equipment, technology, software or services in question are, or may be, intended, in their entirety, or in part, for:
    – use in connection with the development, production, handling, operation, maintenance, storage, detection, identification or dissemination of chemical, biological, or nuclear weapons or other nuclear explosive devices, or the development, production, maintenance or storage of missiles capable of delivering such weapons
    – military end use as defined in Article 4 paragraph 2 of the EU Dual Use Regulation 428/2009
    – purposes related to violations of human rights, the democratic principles or the freedom of speech as defined in the Charter of Fundamental Rights of the EU, where use is made of equipment, technology and/or software for the disruption, interception, or monitoring of telecommunication and/or computer networks (for example, with the help of monitoring centers and lawful interception gateways).
  (2) if the final destination of the products in question is a customs free zone or free warehouse. If the products are temporarily stored in a customs free zone or free warehouse, then the final destination of the products in question must be a destination covered by this license.

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COMM_a3
13. Gary Stanley’s EC Tip of the Day
(Source: Defense and Export-Import Update; 19 Mar 2018. Available by subscription from
gstanley@glstrade.com
.)
 
* Author: Gary Stanley, Esq., Global Legal Services, PC, (202) 352-3059,
gstanley@glstrade.com
.
 
Section 3.3 of DDTC’s 
Guidelines for Preparing Agreement (Rev. 4.4b) states that an applicant must address each of the key elements in a TAA/MLA/WDA Value Table, even though there may be no fee pertaining to, or a $0 value attributed to a particular element. The value of each of these elements can be an estimate, but must extend over the duration of the agreement and not beyond.

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TEEX/IM TRAINING EVENTS & CONFERENCES

 
* What: ITAR/EAR Boot Camp, Licensing Under the 600 Series
And Understanding Defense Trade Controls, Long Beach CA
* When: July 10-11, 2018
* Sponsor: Export Compliance Solutions (ECS)
* ECS Speaker Panel:  Suzanne Palmer, Mal Zerden
* Register: Hereor by calling 866-238-4018 or e-mail spalmer@exportcompliancesolutions.com
* Discount: Daily Bugle subscribers get a 10% discount when they use the coupon code: ECS10PERBUGLE when registering for this event.
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TE_a215. ECTI Presents “How to Improve Export Compliance with Effective Audits” Webinar, 12 Apr
(Source: Danielle Hatch, danielle@learnexportcompliance.com)

* What: How to Improve Export Compliance with Effective Audits
* When: April 12, 2018; 1:00 p.m. (EDT)
* Where: Webinar
* Sponsor: Export Compliance Training Institute (ECTI)
* ECTI Speaker: Felice Laird
* Register: Here or Danielle Hatch, 540-433-3977, danielle@learnexportcompliance.com.
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ENEDITOR’S NOTES

 
Carl Reiner (born 20 Mar 1922, is an American stand-up comedian, actor, director, and writer whose career spans nearly seven decades.  During the early years of television comedy from 1950 to 1957, he co-wrote and acted on Caesar’s Hour and Your Show of Shows, starring Sid Caesar. In the 1960s, Reiner was best known as the creator, producer, writer, and actor on The Dick Van Dyke Show. Reiner has won nine Emmy Awards and one Grammy Award.)
  – “The absolute truth is the thing that makes people laugh.”
 
Henrik Ibsen (Henrik Johan Ibsen; 20 Mar 1828 – 23 May 1906; was a major 19th-century Norwegian playwright, theatre director, and poet. His major works include Brand, Peer Gynt, An Enemy of the People, Emperor and Galilean, A Doll’s House, Hedda Gabler, Ghosts, The Wild Duck, When We Dead Awaken, Pillars of Society, The Lady from the Sea, Rosmersholm, The Master Builder, and John Gabriel Borkman. He is the most frequently performed dramatist in the world after Shakespeare, and A Doll’s House became the world’s most performed play by the early 20th century.)
  – “A thousand words will not leave so deep an impression as one deed.”

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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: 19 Mar 2018:
83 FR 11876-11881: Inflation Adjustment of Civil Monetary Penalties 

 
*
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 (16 March 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 approximately 250 footnotes containing case annotations, practice tips, Census/AES guidance, and explanations of the numerous errors contained in the official text. Subscribers receive revised copies in Microsoft Word every time the FTR is amended. The BAFTR is available by annual subscription from the Full Circle Compliance websiteBITAR subscribers are entitled to a 25% discount on subscriptions to the BAFTR. Government employees (including military) and employees of universities are eligible for a 50% discount on both publications at www.FullCircleCompiance.eu.  
 
*
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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