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18-0327 Tuesday “Daily Bugle”

18-0327 Tuesday “Daily Bugle”

Tuesday, 27 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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  1. DoD/DARS Seeks Comments on DFARS, Independent Research and Development Technical Descriptions 
  1. Items Scheduled for Publication in Future Federal Register Editions
  2. Commerce/BIS: (No new postings.)
  3. DHS/CBP Posts Version 3 Drawback Interim Guidance
  4. State/DDTC Posts Name Change for Bell Helicopter
  5. President Continues National Emergency with Respect to Significant Malicious Cyber-Enabled Activities
  6. President Continues National Emergency with Respect to South Sudan
  7. EU Clarifies the Classification of Capsules, Tablets, Pastilles and Pills Made from Products of Chapter 15
  8. UK/HM Revenue & Customs: “Getting Ready for the Customs Declaration Service”
  1. ST&R Trade Report: “KORUS Modifications Agreed; Korea Gets Steel Tariff Exemption”
  1. J. Fuller: “A Seven-Step Project Plan to Achieve GDPR Compliance”
  2. M. Volkov: “Culture and Leadership in Middle Management”
  3. Gary Stanley’s EC Tip of the Day
  4. R.C. Burns: “Indictment of Iranian over Housing Project in Venezuela Raises Questions”
  1. ECS Presents “ITAR/EAR Boot Camp,” 10-11 Jul in Long Beach CA
  2. ECTI Presents “US Export Controls on Non-US Transactions” Seminar Series 11-14 Jun in Washington, DC
  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 (22 Mar 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_a11. DoD/DARS Seeks Comments on DFARS, Independent Research and Development Technical Descriptions
(Source: Federal Register, 27 Mar 2018.)
 
83 FR 13124: Submission for OMB Review; Comment Request
* AGENCY: Defense Acquisition Regulations System, Department of Defense (DoD).
* ACTION: Notice.
* SUMMARY: The Defense Acquisition Regulations System has submitted to OMB for clearance, the following proposal for collection of information under the provisions of the Paperwork Reduction Act.
* DATES: Consideration will be given to all comments received by April 26, 2018.
* SUPPLEMENTARY INFORMATION:
  – Title, Associated Forms and OMB Number: Defense Federal Acquisition Regulation Supplement (DFARS), Independent Research and Development Technical Descriptions; OMB Control Number 0704-0483.
  – Needs and Uses: DFARS 231.205-18 requires contractors to report independent research and development projects to DTIC using the DTIC’s online IR&D database. The inputs must be updated at least annually and when the project is completed. …
 
  Jennifer L. Hawes, Regulatory Control Officer, Defense Acquisition Regulations System.
* * * * * * * * * * * * * * * * * * * * 

OGSOTHER GOVERNMENT SOURCES

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

* President; PROCLAMATIONS; Trade [Publication Date: 28 March 2018.]:
  – Aluminum; Adjustment of Imports Into the U.S. (Proc. 9710)
  – Steel; Adjustment of Imports Into the U.S. (Proc. 9711)
 
* President; ADMINISTRATIVE ORDERS; Defense and National Security: Cyber-enabled Malicious Activities; Continuation of National Emergency (Notice of March 27, 2018) [Publication Date: 28 March 2018.]
 
* President; ADMINISTRATIVE ORDERS; South Sudan; Continuation of National Emergency (Notice of March 27, 2018) [Publication Date: 28 March 2018.]
 
[Editor’s Note: Both Administrative Orders are included in today’s Daily Bugle, items #6 and #7.]
 
* State; NOTICES; Specially Designated Global Terrorists: of Katibat al-Imam al-Bukhari, aka Imam Bukhori Jamaat, aka Imam Bukhari Battalion, aka Imam Bukhari Jamaat, etc. [Publication Date: 28 March 2018.]
 
* Treasury; Foreign Assets Control Office; NOTICES; Blocking or Unblocking of Persons and Properties [Publication Date: 28 March 2018.]

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

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

(Source:
CSMS #18-000243
, 27 Mar 2018.)
 
U.S. Customs and Border Protection (CBP) has updated and posted Drawback Interim Guidance on
CBP.gov
.
* * * * * * * * * * * * * * * * * * * * 

(Source:
State/DDTC
, 26 Mar 2018.)
 
  – Bell Helicopter Changes Name to Bell Textron
* * * * * * * * * * * * * * * * * * * * 

(Source:
The White House
, 27 Mar 2018.)
 
On April 1, 2015, by Executive Order 13694, 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, foreign policy, and economy of the United States constituted by the increasing prevalence and severity of malicious cyber

enabled activities originating from, or directed by persons located, in whole or in substantial part, outside the United States. On December 28, 2016, the President issued Executive Order 13757 to take additional steps to address the national emergency declared in Executive Order 13694.
 
These significant malicious cyber-enabled activities continue to pose an unusual and extraordinary threat to the national security, foreign policy, and economy of the United States. For this reason, the national emergency declared on April 1, 2015, must continue in effect beyond April 1, 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 13694, as amended by Executive Order 13757.
 
This notice shall be published in the Federal Register and transmitted to the Congress.
 
DONALD J. TRUMP
 
THE WHITE HOUSE,
March 27, 2018.
* * * * * * * * * * * * * * * * * * * * 

(Source:
The White House
, 27 Mar 2018.)
 
On April 3, 2014, by Executive Order 13664, 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 situation in and in relation to South Sudan, which has been marked by activities that threaten the peace, security, or stability of South Sudan and the surrounding region, including widespread violence and atrocities, human rights abuses, recruitment and use of child soldiers, attacks on peacekeepers and humanitarian aid workers, and obstruction of humanitarian operations.
 
The situation in and in relation to South Sudan continues to pose an unusual and extraordinary threat to the national security and foreign policy of the United States. For this reason, the national emergency declared on April 3, 2014, to deal with that threat must continue in effect beyond April 3, 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 13664.
 
This notice shall be published in the Federal Register and transmitted to the Congress.
 
DONALD J. TRUMP
 
THE WHITE HOUSE,
March 27, 2018.
* * * * * * * * * * * * * * * * * * * * 

 
Regulations:
*
Commission Implementing Regulation (EU) 2018/507
of 26 March 2018 amending Annex I to Council Regulation (EEC) No 2658/87 on the tariff and statistical nomenclature and on the Common Customs Tariff
* * * * * * * * * * * * * * * * * * * * 

 
HM Revenue and Customs (HMRC) will begin a phased launch of the Customs Declaration Service (CDS) in August 2018. CDS will replace the existing Customs Handling of Import and Export Freight (CHIEF) system, with all declarations taking place on CDS from early 2019.
 
CHIEF currently processes declarations to facilitate the international movement of goods between the UK and non-EU countries. CHIEF will continue to run for a time to aid the transition to CDS.
 
Why CDS is replacing CHIEF
 
CHIEF is one of the world’s largest and most sophisticated electronic services for managing customs declaration processes, but it’s nearly 25 years old and can’t be easily adapted to new requirements.
 
The decision to replace CHIEF with CDS was made before the EU referendum, however CDS will be scaled to handle any potential increases in the volume of declarations that may result from the UK’s exit from the EU.
 
How this will affect importers and exporters
 
If a trader imports or exports goods outside the EU, they or their agent will be currently using CHIEF to:
 
  – process declarations for goods entering and leaving the UK or EU through ports and airports
  – calculate and pay the correct duty and taxes
  – complete customs information electronically
 
They will still be able to do these things on CDS, but there will be differences:
 
  – CDS will be accessed on GOV.UK using a Government Gateway account – if traders use a customs declaration software package, they will need to follow the instructions and documentation from their supplier
  – CDS will offer several new and existing services in one place – for example, traders will be able to view previous import and export data on pre-defined reports, check the tariff, apply for new authorisations and simplifications, and check their duty deferment statement
  – online help will include self-service tools, guides and checklists
 
Some additional information will be required for declarations in order to align with the World Customs Organisation Kyoto Convention, currently being implemented in the UK through the Union Customs Code (UCC):
 
  – an audit trail of previous document IDs
  – additional party types, such as the buyer and seller
  – possible additional commercial references or tracking numbers
  – leveling – change between ‘Header’ and ‘Item’ for some data items
 
To align UK customs data with international standards, there will also be changes to:
 
  – location of goods identification (based on UNLOCODE)
  – the warehouse type code list
  – item tax lines, including method of payment codes
  – unit of quantity codes (ISO)
  – the way customs procedures are quoted
  – the number of items on a declaration – CDS will allow a maximum of 999 items on a customs declaration instead of the current 99 items on CHIEF
 
Alerting importers and exporters about using CDS
 
HMRC is currently building and testing CDS with industry, software providers and Community System Providers (CSPs). CSPs operate computerised inventory systems that control the physical movement of import and export freight at UK ports and airports.
 
CDS will be phased in between August and early 2019, with CHIEF continuing to run during this time to aid the transition. Importers, exporters or their agents will be informed by their software provider when they need to provide the additional information in order to start making declarations on CDS.
 
To keep informed about CDS, please register for the
HMRC Business Help and Education email service
, where CDS updates will be under the education topic ‘trading with other countries’.
 
The updates will provide regular information on CDS and any preparations you may need to make ahead of CDS going live.

There will also be regular updates about CDS on GOV.UK and through trade associations.
* * * * * * * * * * * * * * * * * * * * 

NWSNEWS

NWS_a1
10. ST&R Trade Report: “KORUS Modifications Agreed; Korea Gets Steel Tariff Exemption”
(Source:
Sandler, Travis & Rosenberg Trade Report
, 27 Mar 2018.)
 
The U.S. and South Korea have reached an agreement in principle on modifications to be made to their bilateral free trade agreement. The two sides also announced that Korea will be exempt from the 25 percent additional tariff the U.S. began imposing on imported steel products March 23. No similar agreement appears to have been concluded with respect to the U.S.’ additional 10 percent tariff on aluminum.
 
According to press reports, the two primary modifications to be made to KORUS deal with automobiles, a sector in which the U.S. runs a substantial trade deficit with Korea. Specifically, Seoul agreed to give the U.S. an additional 20 years, until 2041, to phase out its 25 percent tariff on trucks imported from Korea, although press sources note that Korea does not currently export such vehicles to the U.S. Korea will also double to 50,000 the number of automobiles allowed to be imported from the U.S. even if they do not meet Korean safety standards, although according to press sources no single U.S. automaker yet ships more than 10,000 vehicles to Korea in a given year. Korea offered no additional market access for U.S. agricultural products and officials said there were no changes to previously agreed tariff eliminations.
 
In what appears to be a related move, the U.S. agreed to exempt South Korea from its national security-related tariffs on imported steel provided Korea limits such shipments to 70 percent of their average between 2015 and 2017, or about 2.7 million tons.

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

COMMCOMMENTARY

COMM_a01
11. J. Fuller: “A Seven-Step Project Plan to Achieve GDPR Compliance”
(Source:
Business & Finance
, 26 Mar 2018.)
 
* Author: John Fuller, Associate Solicitor, JW O’Donovan Solicitors,
jfuller@jwod.ie
, +353-21-7300200.
 
With less than ten weeks to go before the new General Data Protection Regulation (GDPR) comes into force on the 25 May, some businesses are facing the seemingly overwhelming task of getting their systems, processes and staff ‘GDPR-ready’. That said, even if you are only now beginning to consider the impact of GDPR on your business, there is still enough time to make substantial progress before the new law comes into force, particularly if a business initiates a properly-resourced project with the aim of delivering GDPR compliance.
 
The following is a brief outline of the steps which might be followed in such a project.
 
Step 1: Identify a project leader
 
As with any project, it is important that someone takes ownership of the overall project and is responsible for its delivering. While the automatic response might be to choose some from the IT department, you should give due consideration to who would be best placed to determine what is required by the business as a whole. Ideally, the project lead should be someone within senior management who can command the authority and resources necessary to deliver the project.
 
Step 2: Form the project team and map out a project plan
 
Once appointed, the project lead should form a project team drawing from each relevant sector of the business (IT, marketing, HR, etc.). A project plan should then be developed with deliverables allocated to each member and timeline for delivery put in place. All relevant departments should be made aware that the members of the project team must be afforded sufficient time to deliver on their responsibilities. The project should be seen as having equal status with any other project to be delivered by the business – if team members are expected to work on it only in their downtime, between other tasks, then deadlines will not be met.
 
Step 3: Identify the personal data used by the business
 
One of the first tasks to be undertaken by the project team is a review of the data held by the business to determine:
 
  – What data is held
  – How it is collected
  – Why it is collected and how it is used
  – How it is stored
  – For how long it is retained
 
Each team member should carry out the above analysis for their own sector of the business.
 
Step 4: Analyze the data use in the context of key principles introduced by GDPR
 
GDPR sets out seven principles governing the processing of personal data as follows:
 
  (1) Personal data must be processed lawfully, fairly and in a transparent manner.
  (2) Personal data must be collected for specified, explicit and legitimate purposes and not further processed in a manner that is incompatible with those purposes.
  (3) Personal data must be adequate, relevant and limited to what is necessary in relation to purposes for which they are processed.
  (4) Personal data must be accurate and, where necessary, kept up to date. Inaccurate personal data should be corrected or deleted.
  (5) Personal data should be kept in an identifiable format for no longer than is necessary.
  (6) Personal data should be kept secure using ‘appropriate technical and organizational measures’.
  (7) Organizations must not only comply with the above six general principles but must be able to demonstrate that they comply by documenting and keeping records of all decisions.
 
Having identified the data held and its purpose, an analysis should be carried out to determine if the business complies with the first six principles listed above in its processing of personal data. Particular attention should be given to identifying the grounds for lawful processing of data as required by the first principle.
 
The grounds for lawful processing that will most commonly be relied upon by private businesses are the consent of the data subject, the performance of a contract with the data subject and the legitimate interests of the business. Each ground has specific criteria which must be met before it can be relied upon and great care should be taken to ensure those criteria are met.
 
For example, under GDPR if you are relying on the consent of the data subject, the consent must be “freely given, informed and unambiguous” and the data subject must have taken a positive step to indicate his or her consent (so pre-ticked boxes or opt-out mechanisms cannot be relied upon).
 
Step 5: Develop resources required for compliance
 
Some of the resources that are likely to be required include:
 
  – A personal data policy
  – An updated privacy notice
  – Policies for responding to subject access requests and dealing with data breaches
  – Updated consents from clients to the use of their personal data (where the consent currently relied upon does not meet the standard required by GDPR)
  – Notices issued to third-party data processors requesting confirmation that they are compliant with GDPR in processing data on behalf of the business
  – A template for conducting Data Impact Assessments
  – Revised technical measures (firewalls, anonymization of data)
 
Step 6: Implement the new regime and maintain compliance
 
Consideration should be given to the manner in which new policies and processes should be communicated to clients – GDPR can provide an opportunity to engage with clients and reassure them that their personal data is treated with an appropriate level of sensitivity. Staff should be trained so that they are aware of new policies and will act appropriately if a subject access request is received or a data breach occurs.
 
A business may appoint a Data Protection Officer (DPO) whose role is to monitor the business’ compliance with GDPR and advise the business on same. A business may be obliged to appoint a DPO in certain circumstances, depending on the nature of the data processing undertaken.
 
Where a business wishes to introduce a process for processing personal data which involves new technologies, and which the processing is likely to result in a high risk to the rights and freedoms of individuals (for example, where a large amount of data will be processed), a Data Protection Impact Assessment must be conducted. This will be broadly on the terms set out above at step 4.
 
Step 7: Document compliance
 
As noted above, the seventh principle of GDPR is the obligation to demonstrate compliance. Accordingly, records should be kept of each of the above steps and procedures should be put in place to review compliance periodically (with such reviews also being documented).
 
Remember to take a risk-based approach
 
GDPR embraces a ‘risk-based’ approach to data protection, that is the obligations imposed on businesses are commensurate to the level of risk to the data subject that will result from the business processing their data.
 
Accordingly, businesses should focus on identifying the areas of greatest risk and should concentrate initially on implementing the appropriate measures required. If this is done, the level of exposure under GDPR can be reduced significantly before the new law comes into force.

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

(Source:
Volkov Law Group Blog
, 26 Mar 2018. Reprinted by permission.)
 
* Author: Michael Volkov, Esq., Volkov Law Group,
mvolkov@volkovlaw.com
, +1 240-505-1992.
 
We always hear about the importance of tone-at-the-top.  Corporate leaders are very familiar with how to say the right things about ethics and compliance and the company’s culture.  But we all know that words are cheap – it is conduct that matters, and it is behavior that ultimately builds trust in an organization.
 
In large corporations, however, the tone-at-the-top can only go so far.  No matter how effective the leadership is in reinforcing the company’s commitment to ethical behavior, it is essential that middle managers carry the responsibility for promoting ethical behavior.
 
This is where many companies are failing to follow-up.  Employees want to report misconduct or concerns to their immediate supervisors.  This phenomenon makes sense given human nature – we all want the approval of our supervisors.  Interestingly, very few supervisors are equipped to handle employee concerns, and even fewer are trained on how to promote and reinforce the importance of ethics in its immediate employees.
 
To promote a culture of ethics, companies have to develop a cascading leadership system where a commitment to ethics and compliance begins at the top, stretches to the middle and extends to all employees.  The critical link in this process is middle managers.
 
Companies have to devote time and attention to train middle managers on how to instill a culture of ethics in his/her immediate employees.  Working with ethics and compliance staff, middle managers have to learn specific strategies for demonstrating a commitment to culture and promoting a message to reinforce ethical values.  This is a multi-prong strategy that requires middle managers:
 
  – To promote a speak up culture within the employee group;
  – To understand how to respond to employee concerns;
  – To train and reinforce ethical values with his/her employees; and
  – To develop effective communications and listening strategies to underscore the importance of ethical principles in each employee’s day-to-day responsibilities.
 
In ethical companies, employees often confess they understand the company’s culture but need direction in how the company’s values apply to their day-to-day responsibilities.  A middle manager can define exactly the connection between ethical values and employee responsibilities.  In some respects, middle managers are in the best position to explain the connection between corporate values and employee responsibilities.
 
Middle managers also need to learn how to listen to employee concerns, respond to such concerns and build trust with his/her employees. Not everyone is a good listener, and it is important for middle managers to listen, communicate empathy and then develop skills to support the employee.
 
An ethics and compliance program depends on these critical interactions between middle managers and employees. While senior leadership conduct and communications are important functions to a company’s culture, ethics and compliance officers have to spend more time cascading culture and leadership principles with middle management. Specific training programs, ethics teaching materials and other materials should be developed for middle managers. These materials can be modified as each manager sees fit for his/her specific employee group, but the principles described in these materials can be used for important learning moments.

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

COMM_a3
13. Gary Stanley’s EC Tip of the Day
(Source: Defense and Export-Import Update; 26 Mar 2018. Available by subscription from
gstanley@glstrade.com
.)
 
* Author: Gary Stanley, Esq., Global Legal Services, PC, (202) 352-3059,
gstanley@glstrade.com
.
 
EAR Part 772 defines “basic scientific research” as experimental or theoretical work undertaken principally to acquire new knowledge of the fundamental principles of phenomena or observable facts, not primarily directed towards a specific practical aim or objective.

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

COMM_a4
14. R.C. Burns: “Indictment of Iranian over Housing Project in Venezuela Raises Questions”

(Source:
Export Law Blog
, 27 Mar 2018. Reprinted by permission.)
 
* Author: R. Clifton Burns, Esq., Bryan Cave LLP, Wash DC,
Clif.Burns@bryancave.com
, 202-508-6067).
 
Last week, Iranian national Ali Sadr Hasheminejad was
arrested
in New York City in connection with a Venezuelan housing construction project undertaken by his family’s business in Iran. According to the
indictment
, the governments of Venezuela and Iran in 2005 agreed that Iran would cooperate in the building of new housing in Venezuela. Under the agreement, the parties would sign “commercial contracts” to complete the project. Thereafter, the
Stratus Group
, a private Iranian conglomerate, assumed the construction project.
 
Stratus incorporated Iranian International Housing Corporation (“IIHC”), an Iranian company which was responsible for carrying out and completing the housing project in Venezuela. IIHC then entered into an agreement with a Venezuelan company to construct the housing for $475,000,000 dollars. Mr. Hasheminejad, the defendant, was a member of the family that controlled the Stratus Group and its subsidiary IIHC.  He was responsible for overseeing the projects finances. Pursuant to Mr. Hasheminejad’s direction, the Venezuelan company transferred funds to IIHC to pay for the project. These funds, because they were to be in US Dollars, transited various unnamed banks in New York. As a result, the indictment alleges that Mr. Hasheminejad caused these banks to export financial services from the United States to Iran in violation of the Iran Transactions and Sanctions Regulations.
 
For reasons that are not entirely clear, the indictment does not provide any information as to where those wire funds ended up. As IIHC was engaged in a construction project in Venezuela it seems likely, indeed almost certain, that it had accounts in Venezuela and the funds in question were wired to that Venezuelan account so that materials and labor costs for the housing project could be met. There is no reason to believe that the Venezuelan company wired funds to Iran for the Venezuelan project and the indictment never even alleges that this happened.
 
The destination of the funds is a crucial piece of information. The Iranian Transactions and Sanctions Regulations (“ITSR”) prohibit exporting financial services (e.g. transferring funds) from the United States “to Iran or the Government of Iran.” The wire transactions at issue allegedly caused the U.S. banks to provide financial services, according to the indictment, “to Iran.” But, as those familiar with the ITSR know, the transfer to funds to an Iranian company or individual outside Iran is not a transfer of those funds “to Iran” and is not a violation of those rules. If the funds at issue went ultimately, as it seems they must have, to an IIHC account in Venezuela there would be no violation. Yet the indictment, in tracing the funds transfers, stops at bank accounts in the British Virgin Islands with the exception of some funds that went to the United States to buy property in California.
 
Perhaps the prosecution does have evidence that some of this money wound up in Iran but, if it does, it oddly chose to leave it out and instead wound up presenting an indictment that does not adequately allege a violation of law.

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

TEEX/IM TRAINING EVENTS & CONFERENCES

TE_a115. ECS Presents “ITAR/EAR Boot Camp,” 10-11 Jul in Long Beach CA
 
* 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: Here or 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.
* * * * * * * * * * * * * * * * * * * *

TE_a216. ECTI Presents “US Export Controls on Non-US Transactions” Seminar Series 11-14 Jun in Washington, DC
(Source: Jill Kincaid, jill@learnexportcompliance.com)

* What: “United States Export Controls (ITAR/EAR/OFAC) on Non-US Transactions: How U.S. Controls Impact Non-U.S. Companies, Affiliates and Transactions,” Seminar Series in Washington, DC
* When: ITAR Seminar: June 11-12, 2018; EAR/OFAC Seminar: June 13-14, 2018
* Where: Alexandria, VA: Hilton Alexandria Old Town
* Sponsor: Export Compliance Training Institute (ECTI)
* ECTI Speaker Panel: John Black, Greg Creeser, John Boscariol, Doug Jacobson, Stephan Müller, Christopher Tafe, and Kevin Wolf
* Register: Here or Jessica Lemon, 540-433-3977, jessica@learnexportcompliance.com
* * * * * * * * * * * * * * * * * * * *

ENEDITOR’S NOTES

 
* Ludwig Mies van der Rohe (born Maria Ludwig Michael Mies; 27 Mar 1886 – 17 Aug 1969; was a German-American architect. Along with Le Corbusier, Walter Gropius, and Frank Lloyd Wright, Mies is widely regarded as one of the pioneers of modernist architecture.)
  – “Less is more.”
  – “Every How is carried by a What.”

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

EN_a318
. 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: 22 Mar 2018: 83 FR 12475-12483: Addition of Certain Persons to the Entity List and Removal of Certain Persons from the Entity List; Correction of License Requirements  

  
*
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_a0319
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

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

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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