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18-0328 Wednesday “Daily Bugle”

18-0328 Wednesday “Daily Bugle”

Wednesday, 28 March 2018

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The Daily Bugle is a free daily newsletter from Full Circle Compliance, containing changes to export/import regulations (ATF, DOE/NRC, Customs, NISPOM, EAR, FACR/OFAC, FAR/DFARS, FTR/AES, HTSUS, and ITAR), plus news and events.  Subscribe 
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  1. President Formally Posts Proclamation on Adjusting Imports of Aluminum into the United States 
  2. President Formally Posts Proclamation on Adjusting Imports of Steel into the U.S. 
  1. Items Scheduled for Publication in Future Federal Register Editions
  2. Commerce/BIS: (No new postings.)
  3. DHS/CBP Announces ACE Certification Scheduled Maintenance for Tonight
  4. DoD/DSCA Posts Policy Memo 18-19
  5. State/DDTC: (No new postings.)
  6. EU Amends Restrictive Measures Concerning Situation in Sudan
  1. ST&R Trade Report: “US and Mexico Sign Agreements on Trade and Customs Issues”
  1. W.C. Preston: “Are You Ready for the GDPR in May?”
  2. Gary Stanley’s EC Tip of the Day
  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. President Formally Posts Proclamation on Adjusting Imports of Aluminum into the United States
(Source: Federal Register, 28 Mar 2018.)
 
[Editor’s Note: We already reported on this last Friday in the 23 February 2018 Daily Bugle, item #6.]
 
Adjusting Imports of Aluminum Into the United States
 
By the President of the United States of America
 
A Proclamation
 
  (1) On January 19, 2018, the Secretary of Commerce (Secretary) transmitted to me a report on his investigation into the effect of imports of aluminum articles on the national security of the United States under section 232 of the Trade Expansion Act of 1962, as amended (19 U.S.C. 1862).
 
  (2) In Proclamation 9704 of March 8, 2018 (Adjusting Imports of Aluminum Into the United States), I concurred in the Secretary’s finding that aluminum articles are being imported into the United States in such quantities and under such circumstances as to threaten to impair the national security of the United States, and decided to adjust the imports of aluminum articles, as defined in clause 1 of Proclamation 9704 (aluminum articles), by imposing a 10 percent ad valorem tariff on such articles imported from all countries except Canada and Mexico.
 
  (3) In proclaiming this tariff, I recognized that our Nation has important security relationships with some countries whose exports of aluminum articles to the United States weaken our internal economy and thereby threaten to impair the national security. I also recognized our shared concern about global excess capacity, a circumstance that is contributing to the threatened impairment of the national security. I further determined that any country with which we have a security relationship is welcome to discuss with the United States alternative ways to address the threatened impairment of the national security caused by imports from that country, and noted that, should the United States and any such country arrive at a satisfactory alternative means to address the threat to the national security such that I determine that imports from that country no longer threaten to impair the national security, I may remove or modify the restriction on aluminum articles imports from that country and, if necessary, adjust the tariff as it applies to other countries as the national security interests of the United States require.
 
  (4) The United States is continuing discussions with Canada and Mexico, as well as the following countries, on satisfactory alternative means to address the threatened impairment to the national security by imports of aluminum articles from those countries: the Commonwealth of Australia (Australia), the Argentine Republic (Argentina), the Republic of Korea (South Korea), the Federative Republic of Brazil (Brazil), and the European Union (EU) on behalf of its member countries. Each of these countries has an important security relationship with the United States and I have determined that the necessary and appropriate means to address the threat to the national security posed by imports from aluminum articles from these countries is to continue these discussions and to exempt aluminum articles imports from these countries from the tariff, at least at this time. Any country not listed in this proclamation with which we have a security relationship remains welcome to discuss with the United States alternative ways to address the threatened impairment of the national security caused by imports of aluminum articles from that country.
 
  (5) The United States has an important security relationship with Australia, including our shared commitment to supporting each other in addressing national security concerns, particularly through our security, defense, and intelligence partnership; the strong economic and strategic partnership between our countries; our shared commitment to addressing global excess capacity in aluminum production; and the integration of Australian persons and organizations into the national technology and industrial base of the United States.
 
  (6) The United States has an important security relationship with Argentina, including our shared commitment to supporting each other in addressing national security concerns in Latin America, particularly the threat posed by instability in Venezuela; our shared commitment to addressing global excess capacity in aluminum production; the reciprocal investment in our respective industrial bases; and the strong economic integration between our countries.
 
  (7) The United States has an important security relationship with South Korea, including our shared commitment to eliminating the North Korean nuclear threat; our decades-old military alliance; our shared commitment to addressing global excess capacity in aluminum production; and our strong economic and strategic partnership.
 
  (8) The United States has an important security relationship with Brazil, including our shared commitment to supporting each other in addressing national security concerns in Latin America; our shared commitment to addressing global excess capacity in aluminum production; the reciprocal investment in our respective industrial bases; and the strong economic integration between our countries.
 
  (9) The United States has an important security relationship with the EU and its constituent member countries, including our shared commitment to supporting each other in national security concerns; the strong economic and strategic partnership between the United States and the EU, and between the United States and EU member countries; and our shared commitment to addressing global excess capacity in aluminum production.
 
  (10) In light of the foregoing, I have determined that the necessary and appropriate means to address the threat to the national security posed by imports of aluminum articles from these countries is to continue ongoing discussions and to increase strategic partnerships, including those with respect to reducing global excess capacity in aluminum production by addressing its root causes. In my judgment, discussions regarding measures to reduce excess aluminum production and excess aluminum capacity, measures that will increase domestic capacity utilization, and other satisfactory alternative means will be most productive if the tariff proclaimed in Proclamation 9704 on aluminum articles imports from these countries is removed at this time.
 
  (11) However, the tariff imposed by Proclamation 9704 remains an important first step in ensuring the economic viability of our domestic aluminum industry and removing the threatened impairment of the national security. Without this tariff and the adoption of satisfactory alternative means addressing long-term solutions in ongoing discussions with the countries listed as excepted in clause 1 of this proclamation, the industry will continue to decline, leaving the United States at risk of becoming reliant on foreign producers of aluminum to meet our national security needs–a situation that is fundamentally inconsistent with the safety and security of the American people. As a result, unless I determine by further proclamation that the United States has reached a satisfactory alternative means to remove the threatened impairment to the national security by imports of aluminum articles from a particular country listed as excepted in clause 1 of this proclamation, the tariff set forth in clause 2 of Proclamation 9704 shall be effective May 1, 2018, for the countries listed as excepted in clause 1 of this proclamation. In the event that a satisfactory alternative means is reached such that I decide to exclude on a long-term basis a particular country from the tariff proclaimed in Proclamation 9704, I will also consider whether it is necessary and appropriate in light of our national security interests to make any corresponding adjustments to the tariff set forth in clause 2 of Proclamation 9704 as it applies to other countries. Because the current tariff exemptions are temporary, however, I have determined that it is necessary and appropriate to maintain the current tariff level at this time.
 
  (12) In the meantime, to prevent transshipment, excess production, or other actions that would lead to increased exports of aluminum articles to the United States, the United States Trade Representative, in consultation with the Secretary and the Assistant to the President for Economic Policy, shall advise me on the appropriate means to ensure that imports from countries exempt from the tariff imposed in Proclamation 9704 do not undermine the national security objectives of such tariff. If necessary and appropriate, I will consider directing U.S. Customs and Border Protection (CBP) of the Department of Homeland Security to implement a quota as soon as practicable, and will take into account all aluminum articles imports since January 1, 2018, in setting the amount of such quota.
 
  (13) Section 232 of the Trade Expansion Act of 1962, as amended, authorizes the President to adjust the imports of an article and its derivatives that are being imported into the United States in such quantities or under such circumstances as to threaten to impair the national security.
 
  (14) Section 604 of the Trade Act of 1974, as amended (19 U.S.C. 2483), authorizes the President to embody in the Harmonized Tariff Schedule of the United States (HTSUS) the substance of statutes affecting import treatment, and actions thereunder, including the removal, modification, continuance, or imposition of any rate of duty or other import restriction.
 
NOW, THEREFORE, I, DONALD J. TRUMP, President of the United States of America, by the authority vested in me by the Constitution and the laws of the United States of America, including section 232 of the Trade Expansion Act of 1962, as amended, section 301 of title 3, United States Code, and section 604 of the Trade Act of 1974, as amended, do hereby proclaim as follows:
 
  (1) Imports of all aluminum articles, as defined in clause 1 of Proclamation 9704, from the countries listed in this clause shall be exempt from the duty established in clause 2 of Proclamation 9704 until 12:01 a.m. eastern daylight time on May 1, 2018. Further, clause 2 of Proclamation 9704 is amended by striking the last two sentences and inserting the following two sentences: “Except as otherwise provided in this proclamation, or in notices published pursuant to clause 3 of this proclamation, all aluminum articles imports specified in the Annex shall be subject to an additional 10 percent ad valorem rate of duty with respect to goods entered, or withdrawn from warehouse for consumption, as follows: (a) on or after 12:01 a.m. eastern daylight time on March 23, 2018, from all countries except Canada, Mexico, Australia, Argentina, South Korea, Brazil, and the member countries of the European Union, and (b) on or after 12:01 a.m. eastern daylight time on May 1, 2018, from all countries. This rate of duty, which is in addition to any other duties, fees, exactions, and charges applicable to such imported aluminum articles, shall apply to imports of aluminum articles from each country as specified in the preceding sentence.”.
  (2) Paragraph (a) of U.S. note 19, added to subchapter III of chapter 99 of the HTSUS by the Annex to Proclamation 9704, is amended by replacing “Canada and of Mexico” with “Canada, of Mexico, of Australia, of Argentina, of South Korea, of Brazil, and of the member countries of the European Union”.
  (3) The “Article description” for heading 9903.85.01 of the HTSUS is amended by replacing “Canada or of Mexico” with “Canada, of Mexico, of Australia, of Argentina, of South Korea, of Brazil, or of the member countries of the European Union”.
  (4) The exemption afforded to aluminum articles from Canada, Mexico, Australia, Argentina, South Korea, Brazil, and the member countries of the EU shall apply only to aluminum articles of such countries entered, or withdrawn from warehouse for consumption, through the close of April 30, 2018, at which time Canada, Mexico, Australia, Argentina, South Korea, Brazil, and the member countries of the EU shall be deleted from paragraph (a) of U.S. note 19 to subchapter III of chapter 99 of the HTSUS and from the article description of heading 9903.85.01 of the HTSUS.
  (5) Any aluminum article that is admitted into a
U.S. foreign trade zone on or after 12:01 a.m. eastern daylight time on March 23, 2018, may only be admitted as “privileged foreign status” as defined in 19 CFR 146.41, and will be subject upon entry for consumption to any ad valorem rates of duty related to the classification under the applicable HTSUS subheading. Any aluminum article that was admitted into a U.S. foreign trade zone under “privileged foreign status” as defined in 19 CFR 146.41, prior to 12:01 a.m. eastern daylight time on March 23, 2018, will likewise be subject upon entry for consumption to any ad valorem rates of duty related to the classification under applicable HTSUS subheadings imposed by Proclamation 9704, as amended by this proclamation.
  (6) Clause 3 of Proclamation 9704 is amended by inserting a new third sentence reading as follows: “Such relief may be provided to directly affected parties on a party-by-party basis taking into account the regional availability of particular articles, the and any other factors as the Secretary deems appropriate.”.
  (7) Clause 3 of Proclamation 9704, as amended by clause 6 of this proclamation, is further amended by inserting a new fifth sentence as follows: “For merchandise entered on or after the date the directly affected party submitted a request for exclusion, such relief shall be retroactive to the date the request for exclusion was posted for public comment.”.
  (8) The Secretary, in consultation with CBP and other relevant executive departments and agencies, shall revise the HTSUS so that it conforms to the amendments and effective dates directed in this proclamation. The Secretary shall publish any such modification to the HTSUS in the Federal Register.
  (9) Any provision of previous proclamations and Executive Orders that is inconsistent with the actions taken in this proclamation is superseded to the extent of such inconsistency.
 
IN WITNESS WHEREOF, I have hereunto set my hand this twenty-second day of March, in the year of our Lord two thousand eighteen, and of the Independence of the United States of America the two hundred and forty-second.
 
(Presidential Sig.)
* * * * * * * * * * * * * * * * * * * * 

EXIM_a22. President Formally Posts Proclamation on Adjusting Imports of Steel into the U.S.
(Source: Federal Register, 28 Mar 2018.)
 
[Editor’s Note: We already reported on this last Friday in the 23 February 2018 Daily Bugle, item #6.]
 
Adjusting Imports of Steel Into the United States
 
By the President of the United States of America
 
A Proclamation
 
  (1) On January 11, 2018, the Secretary of Commerce (Secretary) transmitted to me a report on his investigation into the effect of imports of steel mill articles on the national security of the United States under section 232 of the Trade Expansion Act of 1962, as amended (19 U.S.C. 1862).
 
  (2) In Proclamation 9705 of March 8, 2018 (Adjusting Imports of Steel Into the United States), I concurred in the Secretary’s finding that steel mill articles are being imported into the United States in such quantities and under such circumstances as to threaten to impair the national security of the United States, and decided to adjust the imports of steel mill articles, as defined in clause 1 of Proclamation 9705, as amended by clause 8 of this proclamation (steel articles), by imposing a 25 percent ad valorem tariff on such articles imported from all countries except Canada and Mexico.
 
  (3) In proclaiming this tariff, I recognized that our Nation has important security relationships with some countries whose exports of steel articles to the United States weaken our internal economy and thereby threaten to impair the national security. I also recognized our shared concern about global excess capacity, a circumstance that is contributing to the threatened impairment of the national security. I further determined that any country with which we have a security relationship is welcome to discuss with the United States alternative ways to address the threatened impairment of the national security caused by imports from that country, and noted that, should the United States and any such country arrive at a satisfactory alternative means to address the threat to the national security such that I determine that imports from that country no longer threaten to impair the national security, I may remove or modify the restriction on steel articles imports from that country and, if necessary, adjust the tariff as it applies to other countries as the national security interests of the United States require.
 
  (4) The United States is continuing discussions with Canada and Mexico, as well as the following countries, on satisfactory alternative means to address the threatened impairment to the national security by imports of steel articles from those countries: the Commonwealth of Australia (Australia), the Argentine Republic (Argentina), the Republic of Korea (South Korea), the Federative Republic of Brazil (Brazil), and the European Union (EU) on behalf of its member countries. Each of these countries has an important security relationship with the United States and I have determined that the necessary and appropriate means to address the threat to the national security posed by imports from steel articles from these countries is to continue these discussions and to exempt steel articles imports from these countries from the tariff, at least at this time. Any country not listed in this proclamation with which we have a security relationship remains welcome to discuss with the United States alternative ways to address the threatened impairment of the national security caused by imports of steel articles from that country.
 
  (5) The United States has an important security relationship with Australia, including our shared commitment to supporting each other in addressing national security concerns, particularly through our security, defense, and intelligence partnership; the strong economic and strategic partnership between our countries; our shared commitment to addressing global excess capacity in steel production; and the integration of Australian persons and organizations into the national technology and industrial base of the United States.
 
  (6) The United States has an important security relationship with Argentina, including our shared commitment to supporting each other in addressing national security concerns in Latin America, particularly the threat posed by instability in Venezuela; our shared commitment to addressing global excess capacity in steel production; the reciprocal investment in our respective industrial bases; and the strong economic integration between our countries.
 
  (7) The United States has an important security relationship with South Korea, including our shared commitment to eliminating the North Korean nuclear threat; our decades-old military alliance; our shared commitment to addressing global excess capacity in steel production; and our strong economic and strategic partnership.
 
  (8) The United States has an important security relationship with Brazil, including our shared commitment to supporting each other in addressing national security concerns in Latin America; our shared commitment to addressing global excess capacity in steel production; the reciprocal investment in our respective industrial bases; and the strong economic integration between our countries.
 
  (9) The United States has an important security relationship with the EU and its constituent member countries, including our shared commitment to supporting each other in national security concerns; the strong economic and strategic partnership between the United States and the EU, and between the United States and EU member countries; and our shared commitment to addressing global excess capacity in steel production.
 
  (10) In light of the foregoing, I have determined that the necessary and appropriate means to address the threat to the national security posed by imports of steel articles from these countries is to continue ongoing discussions and to increase strategic partnerships, including those with respect to reducing global excess capacity in steel production by addressing its root causes. In my judgment, discussions regarding measures to reduce excess steel production and excess steel capacity, measures that will increase domestic capacity utilization, and other satisfactory alternative means will be most productive if the tariff proclaimed in Proclamation 9705 on steel articles imports from these countries is removed at this time.
 
  (11) However, the tariff imposed by Proclamation 9705 remains an important first step in ensuring the economic viability of our domestic steel industry and removing the threatened impairment of the national security. Without this tariff and the adoption of satisfactory alternative means addressing long-term solutions in ongoing discussions with the countries listed as excepted in clause 1 of this proclamation, the industry will continue to decline, leaving the United States at risk of becoming reliant on foreign producers of steel to meet our national security needs–a situation that is fundamentally inconsistent with the safety and security of the American people. As a result, unless I determine by further proclamation that the United States has reached a satisfactory alternative means to remove the threatened impairment to the national security by imports of steel articles from a particular country listed as excepted in clause 1 of this proclamation, the tariff set forth in clause 2 of Proclamation 9705 shall be effective May 1, 2018, for the countries listed as excepted in clause 1 of this proclamation. In the event that a satisfactory alternative means is reached such that I decide to exclude on a long-term basis a particular country from the tariff proclaimed in Proclamation 9705, I will also consider whether it is necessary and appropriate in light of our national security interests to make any corresponding adjustments to the tariff set forth in clause 2 of Proclamation 9705 as it applies to other countries. Because the current tariff exemptions are temporary, however, I have determined that it is necessary and appropriate to maintain the current tariff level at this time.
 
  (12) In the meantime, to prevent transshipment, excess production, or other actions that would lead to increased exports of steel articles to the United States, the United States Trade Representative, in consultation with the Secretary and the Assistant to the President for Economic Policy, shall advise me on the appropriate means to ensure that imports from countries exempt from the tariff imposed in Proclamation 9705 do not undermine the national security objectives of such tariff. If necessary and appropriate, I will consider directing U.S. Customs and Border Protection (CBP) of the Department of Homeland Security to implement a quota as soon as practicable, and will take into account all steel articles imports since January 1, 2018, in setting the amount of such quota.
 
  (13) Section 232 of the Trade Expansion Act of 1962, as amended, authorizes the President to adjust the imports of an article and its derivatives that are being imported into the United States in such quantities or under such circumstances as to threaten to impair the national security.
 
  (14) Section 604 of the Trade Act of 1974, as amended (19 U.S.C. 2483), authorizes the President to embody in the Harmonized Tariff Schedule of the United States (HTSUS) the substance of statutes affecting import treatment, and actions thereunder, including the removal, modification, continuance, or imposition of any rate of duty or other import restriction.
 
NOW, THEREFORE, I, DONALD J. TRUMP, President of the United States of America, by the authority vested in me by the Constitution and the laws of the United States of America, including section 232 of the Trade Expansion Act of 1962, as amended, section 301 of title 3, United States Code, and section 604 of the Trade Act of 1974, as amended, do hereby proclaim as follows:
 
  (1) Imports of all steel articles, as defined in clause 1 of Proclamation 9705, as amended by clause 8 of this proclamation, from the countries listed in this clause shall be exempt from the duty established in clause 2 of Proclamation 9705 until 12:01 a.m. eastern daylight time on May 1, 2018. Further, clause 2 of Proclamation 9705 is amended by striking the last two sentences and inserting the following two sentences: “Except as otherwise provided in this proclamation, or in notices published pursuant to clause 3 of this proclamation, all steel articles imports specified in the Annex shall be subject to an additional 25 percent ad valorem rate of duty with respect to goods entered, or withdrawn from warehouse for consumption, as follows: (a) on or after 12:01 a.m. eastern daylight time on March 23, 2018, from all countries except Canada, Mexico, Australia, Argentina, South Korea, Brazil, and the member countries of the European Union, and (b) on or after 12:01 a.m. eastern daylight time on May 1, 2018, from all countries. This rate of duty, which is in addition to any other duties, fees, exactions, and charges applicable to such imported steel articles, shall apply to imports of steel articles from each country as specified in the preceding sentence.”.
  (2) Paragraph (a) of U.S. note 16, added to subchapter III of chapter 99 of the HTSUS by the Annex to Proclamation 9705, is amended by replacing “Canada and of Mexico” with “Canada, of Mexico, of Australia, of Argentina, of South Korea, of Brazil, and of the member countries of the European Union”.
  (3) The “Article description” for heading 9903.80.01 of the HTSUS is amended by replacing “Canada or of Mexico” with “Canada, of Mexico, of Australia, of Argentina, of South Korea, of Brazil, or of the member countries of the European Union”.
  (4) The exemption afforded to steel articles from Canada, Mexico, Australia, Argentina, South Korea, Brazil, and the member countries of the EU shall apply only to steel articles of such countries entered, or withdrawn from warehouse for consumption, through the close of April 30, 2018, at which time Canada, Mexico, Australia, Argentina, South Korea, Brazil, and the member countries of the EU shall be deleted from paragraph (a) of U.S. note 16 to subchapter III of chapter 99 of the HTSUS and from the article description of heading 9903.80.01 of the HTSUS.
  (5) Any steel article that is admitted into a U.S. foreign trade zone on or after 12:01 a.m. eastern daylight time on March 23, 2018, may only be admitted as “privileged foreign status” as defined in 19 CFR 146.41, and will be subject upon entry for consumption to any ad valorem rates of duty related to the classification under the applicable HTSUS subheading. Any steel article that was admitted into a U.S. foreign trade zone under “privileged foreign status” as defined in 19 CFR 146.41, prior to 12:01 a.m. eastern daylight time on March 23, 2018, will likewise be subject upon entry for consumption to any ad valorem rates of duty related to the classification under applicable HTSUS subheadings imposed by Proclamation 9705, as amended by this proclamation.
  (6) Clause 3 of Proclamation 9705 is amended by inserting a new third sentence reading as follows: “Such relief may be provided to directly affected parties on a party-by-party basis taking into account the regional availability of particular articles, the ability to transport articles within the United States, and any other factors as the Secretary deems appropriate.”.
  (7) Clause 3 of Proclamation 9705, as amended by clause 6 of this proclamation, is further amended by inserting a new fifth sentence as follows: “For merchandise entered on or after the date the directly affected party submitted a request for exclusion, such relief shall be retroactive to the date the request for exclusion was posted for public comment.”.
  (8) The reference to “7304.10” in clause 1 of Proclamation 9705, is amended to read “7304.11”.
  (9) The Secretary, in consultation with CBP and other relevant executive departments and agencies, shall revise the HTSUS so that it conforms to the amendments and effective dates directed in this proclamation. The Secretary shall publish any such modification to the HTSUS in the Federal Register.
  (10) Any provision of previous proclamations and Executive Orders that is inconsistent with the actions taken in this proclamation is superseded to the extent of such inconsistency.
 
IN WITNESS WHEREOF, I have hereunto set my hand this twenty-second day of March, in the year of our Lord two thousand eighteen, and of the Independence of the United States of America the two hundred and forty-second.
 
(Presidential Sig.)
* * * * * * * * * * * * * * * * * * * * 

OGSOTHER GOVERNMENT SOURCES

OGS_a13. Items Scheduled for Publication in Future Federal Register Editions
(Source: Federal Register)

* Commerce; Industry and Security Bureau; NOTICES; Meetings: Regulations and Procedures Technical Advisory Committee [Publication Date: 29 March 2018.]

* Justice; Alcohol, Tobacco, Firearms, and Explosives Bureau; PROPOSED RULES; Bump-Stock Type Devices [Publication Date: 29 March 2018.]  

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

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

(Source:
CSMS #18-000245, 28 Mar 2018.)
 
There will be ACE CERTIFICATION Scheduled Maintenance Wednesday evening, March 28, 2018 from 1700 ET to 2000 ET.
 
The following ACE Deployment will take place during this time:
 
ACE Entry Summary
  – Entry Summary Query to populate JD record with correct Liquidation data.
 
ACE Portal Accounts
  – Ticket# 9853324 – Some ACE Portal Trade Users were unable to create Blanket Declarations for Non-Portal Importer accounts.
* * * * * * * * * * * * * * * * * * * * 

(Source:
DoD/DSCA, 28 Mar 2018.)
 
* * * * * * * * * * * * * * * * * * * * 

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

 
Regulations:
* Council Implementing Regulation (EU) 2018/512 of 27 March 2018 implementing Article 15(3) of Regulation (EU) No 747/2014 concerning restrictive measures in view of the situation in Sudan
 
Decisions:
* Council Implementing Decision (CFSP) 2018/516 of 27 March 2018 implementing Decision 2014/450/CFSP concerning restrictive measures in view of the situation in Sudan
* * * * * * * * * * * * * * * * * * * * 

NWSNEWS

NWS_a1
9. ST&R Trade Report: “US and Mexico Sign Agreements on Trade and Customs Issues”
 
The Department of Homeland Security reports that on March 26 U.S. Customs and Border Protection signed three agreements aimed at strengthening cross-border commerce with Mexico.
 
  – a memorandum of cooperation with Mexico’s Tax Administration Service (SAT) on customs and trade enforcement that will facilitate the development and implementation of joint and coordinated programs aimed at increasing trade and customs compliance and combating illicit activities;
  – a memorandum of understanding with SAT stating a bilateral commitment to expand the cargo pre-inspection and unified cargo processing programs through which CBP and SAT officers work together to inspect and process cargo shipments; and 
  – an MOU with Mexico’s National Service for Agro-Alimentary Public Health, Safety, and Quality that will enable collaboration on agriculture safeguarding, agriculture quarantine inspections at ports of entry, and information sharing.

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

COMMCOMMENTARY

COMM_a01
10. W.C. Preston: “Are You Ready for the GDPR in May?”
(Source: Network World, 26 Mar 2018.)
 
* Author: W. Curtis Preston, Chief Technical Architect, Druva, curtis@backupcentral.com.
 
The Basic News
 
The General Data Protection Regulation (GDPR) covers all personal data your company stores on data subjects in the EU – whether or not your company has nexus in the EU. Personal data is defined as data that can be used to identify a person. It’s similar to the concept of personally identifiable information (PII) that we have in the US, but it is broader. PII typically includes actual identifying elements like your name, social security number, and birthday, focusing mainly on the data required to fake your identity with a lender. Personal data includes what the US calls PII, plus any data that can be used to identify you in any way, which includes things as basic as an email address, online personality (e.g., twitter handle), or even the IP address where you transmitted a message from.
 
A data subject is the “person” to which the personal data applies. To be subject to the GPDR, the subject must be an EU citizen residing in the EU at the time the data was created. The location of the company or its headquarters is irrelevant.
 
There are several aspects of the GDPR, including the requirement of companies to act responsibly in gathering and storing personal data, including making sure that they collect only data necessary to do the task at hand. For example, if you don’t need to store the data subject’s IP address, don’t store it. You must also privacy into account in all aspects of system design. The GDPR calls this Privacy by Design. Some companies will be required to appoint a data protection officer, or DPO. (In this context, data protection is more concerned about privacy than backup and recovery.)
 
The two requirements that data protection (i.e. backup, recovery, & archive) people are likely to be concerned with is the requirement to (upon request) supply a data subject with all their personal data, and to delete all of it if they ask you to. (You may keep some data if you can demonstrate a legitimate business need for it.) The concern here is that the GDPR covers all personal data your company has on a subject, including any data in the backup or archive systems. (More on that later.)
 
The Good News
 
The general opinion about the GDPR seems to be that it was written with companies like Google and Facebook in mind – companies that store a lot of personal data on people that are not employers, partners, or customers. (Remember, unless you are advertising on Facebook, you are not its customer; you are the product. The same is true on Google unless you’re advertising on Google or using G-Suite; Gmail doesn’t count.)
 
As of this writing, the news about the harvest and misuse of Facebook data by Cambridge Analytica is at the top of many news feeds. This is exactly what the GDPR was written for. People that want to #deletefacebook now have a regulation that says they can tell Facebook to delete all history of their existence in Facebook, and Facebook will have to comply. Not complying will cost them even more dearly than this fiasco has already cost them.
 
The other good news is the following. Although the EU has been preparing for the GDPR for the last several years, a lot of companies don’t seem quite ready for it to go into effect in May. In addition, a lot of vendors aren’t sure how they’re going to help their customers comply with the GDPR. So, if you’re not ready, you’re probably not alone – especially if you live in the US. US companies seem to just now being waking up to the realization they need to comply with the GDPR.
 
There are also provisions in the GDPR that give some hope. One provision talks about legitimate interests for personal data. So, if you can demonstrate a legitimate reason for a given set of data, it may be exempt from some of the GDPR requirements, like discovery and deletion. For example, a law enforcement organization certainly cannot be required to present data from an ongoing investigation that might compromise said investigation, and it cannot be required to delete all personal data on a subject just because he or she says so.
 
There is also a provision that talks about if things are “technically possible.” The courts may allow a defense that says, “based on the products and services we use, it is not technically possible to satisfy that request at this time.”
 
The Not-so-Good News
 
The key phrase in the last sentence in the previous paragraph is may. There is no case law yet. No one has any idea yet how the courts are going to interpret this new regulation. What are they going to consider a legitimate reason for keeping data? Investigation records like those mentioned previously are an easy one. What about purchase history of an existing customer? What about data related to those purchases? Do you really need to store the IP address a customer was using when they made a purchase? No one knows how the courts are going to rule on this yet.
 
For now, this can be interpreted as “semi-good” news — if you’re not one of the types of companies that people believe are the big targets. It’s a good chance the people at Google, Facebook, and the like are having many meetings about how to comply with these requirements from the beginning. So, this “not-so-good news” should not be taken to mean that you can sit on your haunches and wait for some case law before deciding what to do. If you haven’t already done so, now is the time to start talking to your vendors about how you will comply with some of the more challenging aspects of this regulation.
 
There are a lot of companies advertising “GDPR compliant” products, or product that are “GDPR certified.” At this point there is no such thing as being GDPR certified. And no product is going to make you GDPR compliant. Complying with GDPR is as much about process and procedure as it is about the products you use. In fact, some would say even more so.
 
The Scary News
 
One big question for data protection professionals is whether or not backups and archives are included when it says you have to delete a given data subject’s personal data. If they are included, what’s going to happen when you say to a data subject that it’s not technically possible to delete a given subject’s data out of the middle of a backup in the middle of a backup tape somewhere?
 
Are the courts going to interpret that as non-compliant and stick you with the huge fine of 4% of your annual revenue or 20 million Euros (whichever is greater)? If so, there will be very few companies that will compliant come May 25 because this requirement simply wasn’t built into backup software design. Backups were meant to hold onto everything by design. Asking a backup system to selectively design stuff is like asking the proverbial scorpion to ride on the back of the turtle without stinging it – it goes against its very nature.
 
If this is the first time you’re reading about the GDPR, you’ve got some catching up to do.  The good news is there is a lot of information available on the official GDPR website.  Make sure you’re familiar with everything there before you start reaching out to those who will try to sell you “GDPR compliant” products.

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* Author: Gary Stanley, Esq., Global Legal Services, PC, (202) 352-3059,
gstanley@glstrade.com
.
 
ITAR § 121.1(b)(2) provides that an item described in multiple entries of the U.S. Munitions List should be categorized according to an enumerated entry rather than a specially designed catch-all paragraph.

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ENEDITOR’S NOTES

 
* 
Saint Teresa of Avila (
born Teresa Sánchez de Cepeda y Ahumada; 28 Mar 1515 – 4 Oct 1582; was a prominent Spanish mystic, Roman Catholic saint, Carmelite nun, and author during the Counter Reformation, and theologian of contemplative life through mental prayer. She was a reformer in the Carmelite Order.)
 – “If I were to give advice, I would say to parents that they ought to be very careful whom they allow to mix with their children when young; for much mischief thence ensues, and our natural inclinations are unto evil rather than unto good.”

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EN_a313
. 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_a0314
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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