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18-0502 Wednesday (Delayed delivery 4 May)

18-0502 Wednesday “Daily Bugle”

Wednesday, 2 May 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 
here for free subscription. Contact us
for advertising inquiries and rates
.  [Editor’s Note:  We regret that we were unable to send Wednesday’s edition to subscribers because of transmission problems with our email service.] 

  1. DHS/CBP Posts Quarterly IRS Interest Rates Used in Calculating Interest on Overdue Accounts and Refunds on Customs Duties 
  2. Justice/ATF Seeks Comments on Form ATF F 5300.3A, FFL Out of Business Records Request 
  3. Justice/ATF Seeks Comments on Identification Markings Placed on Firearms 
  4. Justice/ATF Seeks Comments on Identification of Imported Explosives Materials 
  1. Items Scheduled for Publication in Future Federal Register Editions
  2. Commerce/BIS: (No new postings.)
  3. State/DDTC Launches Redesigned Website
  4. Treasury/OFAC Posts Ukraine-/Russia-related General Licenses 12B & 13A, and Updates FAQs
  1. Global Trade News: “Update on US and China Tariffs as May 1 Exemption Expires”
  2. WSJ: “Pentagon Orders Stores on Military Bases to Remove Huawei, ZTE Phones”
  1. J. Harper: “U.S. Officials Ask for Industry’s Help in Boosting Arms Exports”
  2. T.G. Ficaretta: “ATF Gets $10 Million Boost in Budget for Regulatory Programs”
  3. Gary Stanley’s EC Tip of the Day
  1. FCC Presents “Summer Course U.S. Export Controls: An Introduction to the ITAR & EAR”, 12 Jun in Bruchem, the Netherlands
  1. Bartlett’s Unfamiliar Quotations 
  2. Are Your Copies of Regulations Up to Date? Latest Amendments: ATF (15 Jan 2016), Customs (12 Apr 2018), DOD/NISPOM (18 May 2016), EAR (5 Apr 2018), FACR/OFAC (19 Mar 2018), FTR (24 Apr 2018), HTSUS (25 Apr 2018), ITAR (14 Feb 2018) 
  3. Weekly Highlights of the Daily Bugle Top Stories 

EXIMITEMS FROM TODAY’S FEDERAL REGISTER

EXIM_a1

1. DHS/CBP Posts Quarterly IRS Interest Rates Used in Calculating Interest on Overdue Accounts and Refunds on Customs Duties
(Source: Federal Register, 2 May 2018.) [Excerpts.]
 
83 FR 19292-19292: Quarterly IRS Interest Rates Used in Calculating Interest on Overdue Accounts and Refunds on Customs Duties
* AGENCY: U.S. Customs and Border Protection, Department of Homeland Security.
* ACTION: General notice.
* SUMMARY: This notice advises the public that the quarterly Internal Revenue Service interest rates used to calculate interest on overdue accounts (underpayments) and refunds (overpayments) of customs duties will increase from the previous quarter. For the calendar quarter beginning April 1, 2018, the interest rates for overpayments will be 4 percent for corporations and 5 percent for non-corporations, and the interest rate for underpayments will be 5 percent for both corporations and non-corporations. This notice is published for the convenience of the importing public and U.S. Customs and Border Protection personnel.
* DATES: The rates announced in this notice are applicable as of April 1, 2018.
* FOR FURTHER INFORMATION CONTACT: Bruce W. Ingalls, Revenue Division, Collection and Refunds Branch, 6650 Telecom Drive, Suite #100, Indianapolis, Indiana 46278; telephone (317) 298-1107.
* SUPPLEMENTARY INFORMATION: …
  In Revenue Ruling 2018-07, the IRS determined the rates of interest for the calendar quarter beginning April 1, 2018, and ending on June 30, 2018. The interest rate paid to the Treasury for underpayments will be the Federal short-term rate (2%) plus three percentage points (3%) for a total of five percent (5%) for both corporations and non-corporations. For corporate overpayments, the rate is the Federal short-term rate (2%) plus two percentage points (2%) for a total of four percent (4%). For overpayments made by non-corporations, the rate is the Federal short-term rate (2%) plus three percentage points (3%) for a total of five percent (5%). These interest rates used to calculate interest on overdue accounts (underpayments) and refunds (overpayments) of customs duties are the same from the previous quarter. These interest rates are subject to change for the calendar quarter beginning July 1, 2018, and ending September 30, 2018.
  For the convenience of the importing public and U.S. Customs and Border Protection personnel the following list of IRS interest rates used, covering the period from July of 1974 to date, to calculate interest on overdue accounts and refunds of customs duties, is published in summary format. …
 
  Dated: April 23, 2018.
Samuel D. Grable, Assistant Commissioner and Chief Financial Officer, Office of Finance.

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EXIM_a2

2. Justice/ATF Seeks Comments on Form ATF F 5300.3A, FFL Out of Business Records Request
(Source: Federal Register, 2 May 2018.) [Excerpts.]
 
83 FR 19297: Agency Information Collection Activities; Proposed eCollection eComments Requested; Revision of a Currently Approved Collection; FFL Out of Business Records Request–ATF F 5300.3A
* AGENCY: Bureau of Alcohol, Tobacco, Firearms and Explosives, Department of Justice.
* ACTION: 60-Day notice.
* SUMMARY: … The proposed collection OMB 1140-0036 (FFL Out of Business Records Request–ATF F 5300.3A) is being revised due to minor changes to ATF F 5300.3A, as well as an increase in the in respondents, burden hours, and cost since the last renewal in 2016. The proposed information collection is also being published to obtain comments from the public and affected agencies.
* DATES: Comments are encouraged and will be accepted for 60 days until July 2, 2018.
* FOR FURTHER INFORMATION CONTACT: If you have additional comments, particularly with respect to the estimated public burden or associated response time, have suggestions, need a copy of the proposed information collection instrument with instructions, or desire any additional information, please contact Kris Howard, Program Manager, National Tracing Center Division, either by mail at 244 Needy Road, Martinsburg, WV 25405, by email at kris.howard@atf.gov, or by telephone at 304-260-3683.
* SUPPLEMENTARY INFORMATION: …
  – The Title of the Form/Collection: FFL Out of Business Records
Request.
  – Form number (if applicable): ATF F 5300.3A.
  – Component: Bureau of Alcohol, Tobacco, Firearms and Explosives,
U.S. Department of Justice.
  – Abstract: The form is used by ATF to notify licensees that go out of business to send their firearms related business records to the ATF, if the business discontinuance is absolute, or to allow the licensee to notify ATF of the successor who will be maintaining control of their firearms related records. The questions are simple and a return address is supplied. The format is easy for the user to list the required information ATF needs to perform its functions in regard to the law. …
  If additional information is required contact: Melody Braswell, Department Clearance Officer, United States Department of Justice, Justice Management Division, Policy and Planning Staff, Two Constitution Square, 145 N Street NE, 3E.405A, Washington, DC 20530.
 
  Dated: April 27, 2018.
Melody Braswell, Department Clearance Officer for PRA, U.S. Department of Justice.

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EXIM_a3

3. Justice/ATF Seeks Comments on Identification Markings Placed on Firearms
(Source: Federal Register, 2 May 2018.) [Excerpts.] 
 
83 FR 19298-19299: Agency Information Collection Activities; Proposed eCollection eComments Requested; Revision of a Currently Approved Collection; Identification Markings Placed on Firearms
* AGENCY: Bureau of Alcohol, Tobacco, Firearms and Explosives, Department of Justice.
* ACTION: 60-Day notice.
* SUMMARY: … The proposed information collection OMB 1140-0050 (Identification
Markings Placed on Firearms) is being revised due to a change in
burden, since there is an increase in the number of respondents,
although there is a reduction in responses and total burden hours from
the previous renewal in 2015, due to less firearms being imported. The
proposed information collection is also being published to obtain
comments from the public and affected agencies.
* DATES: Comments are encouraged and will be accepted for 60 days until July 2, 2018.
* FOR FURTHER INFORMATION CONTACT: If you have additional comments, particularly with respect to the estimated public burden or associated response time, have suggestions, need a copy of the proposed information collection instrument with instructions, or desire any additional information, please contact Rinell Lawrence, Firearms Industry Programs Branch (FIPB) either by mail at 99 New York Avenue NE, Washington, DC 20226, by email at fipb-informationcollection@atf.gov, or by telephone at 202-648-7190.
* SUPPLEMENTARY INFORMATION: …
  – The Title of the Form/Collection: Identification Markings Placed
on Firearms. …
  – Form number (if applicable): None.
  – Component: Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Department of Justice. …
  – Abstract: Each licensed firearms manufacturer or licensed firearm importer must legibly identify each firearm by engraving, casting, stamping (impressing), or otherwise conspicuously placing on the frame or receiver an individual serial number; which will be used to facilitate investigations about the criminal use of firearms. …
  If additional information is required contact: Melody Braswell, Department Clearance Officer, United States Department of Justice, Justice Management Division, Policy and Planning Staff, Two Constitution Square, 145 N Street NE, 3E.405A, Washington, DC 20530.
 
   Dated: April 27, 2018.
Melody Braswell, Department Clearance Officer for PRA, U.S. Department of Justice.

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

EXIM_a4

4. Justice/ATF Seeks Comments on Identification of Imported Explosives Materials


(Source: Federal Register, 2 May 2018.) [Excerpts.]
 
83 FR 19298: Agency Information Collection Activities; Proposed eCollection eComments Requested; Revision of a Currently Approved Collection; Identification of Imported Explosives Materials
* AGENCY: Bureau of Alcohol, Tobacco, Firearms and Explosives, Department of Justice.
* ACTION: 60-Day notice.
* SUMMARY: … The proposed information collection OMB 1140-0062 (Identification of Imported Explosives Materials) is being revised due to a change in burden, since there is an increase in the number of respondents, responses, and total burden hours since the last renewal in 2015. The proposed information collection is also being published to obtain comments from the public and affected agencies.
* DATES: Comments are encouraged and will be accepted for 60 days until July 2, 2018.
* FOR FURTHER INFORMATION CONTACT: If you have additional comments, particularly with respect to the estimated public burden or associated response time, have suggestions, need a copy of the proposed information collection instrument with instructions, or desire any additional information, please contact Anita Scheddel, Program Analyst, Explosives Industry Programs Branch, either by mail 99 New York Ave. NE, Washington, DC 20226, or by email at Anita.Scheddel@atf.gov, or by telephone at 202-648-7158.
* SUPPLEMENTARY INFORMATION: …
  – The Title of the Form/Collection: Identification of Imported
Explosives Materials.
  – Form number (if applicable): None.
  – Component: Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Department of Justice. …
  – Abstract: The information is necessary to ensure that explosive materials can be effectively traced. All licensed importers are required to identify by marking all explosive materials they import for sale or distribution. …
  If additional information is required contact: Melody Braswell, Department Clearance Officer, United States Department of Justice, Justice Management Division, Policy and Planning Staff, Two Constitution Square, 145 N Street NE, 3E.405A, Washington, DC 20530.
 
  Dated: April 27, 2018.
Melody Braswell, Department Clearance Officer for PRA, U.S. Department of Justice.

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OGSOTHER GOVERNMENT SOURCES

OGS_a15. Items Scheduled for Publication in Future Federal Register Editions
(Source: Federal Register)

* Treasury; Foreign Assets Control Office; NOTICES; Blocking or Unblocking of Persons and Properties [Publication Date: 3 May 2018.] 

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

(Source: 
Commerce/BIS
)

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

(Source: Editor, 30 Apr 2018.)
 

The State Department’s Directorate of Defense Trade Controls (DDTC) has launched a
redesigned website
. The updated website features a number of improvements including navigation, searchability, and accessibility, with a consistent, full-featured experience across mobile devices. Updates to DDTC’s website will continue.  DDTC staff is available at (202) 663-1282 or 
DDTCResponseTeam@state.gov
 
for assistance.

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(Source:
Treasury/OFAC, 1 May 2018)
 
The Department of the Treasury’s Office of Foreign Assets Control (OFAC) has issued Ukraine-/Russia-related General License 12B, which replaces and supersedes General License 12A in its entirety.  General License 12B permits originating and intermediary U.S. financial institutions to process funds transfers that they would otherwise block to an account held by a blocked U.S. person at a U.S. financial institution.  In addition, General License 12B clarifies that U.S. financial institutions can release such funds for authorized maintenance and wind-down purposes.  OFAC is also issuing Ukraine-/Russia-related General License 13A, which replaces and supersedes General License 13 in its entirety. General License 13A authorizes transactions and activities necessary to divest or transfer debt, equity or other holdings in EN+ Group, GAZ Group, or United Company RUSAL PLC.  General License 13A also authorizes such transactions in entities in which those persons own, directly or indirectly, a 50 percent or greater interest, provided that such debt, equity, or other holdings were issued by Irkutskenergo, GAZ Auto Plant, or Rusal Capital Designated Activity Company.  OFAC is also publishing three new FAQs and revisions to several existing FAQs about these general licenses.
* * * * * * * * * * * * * * * * * * * * 

NWSNEWS

NWS_a1
9. Global Trade News: “Update on US and China Tariffs as May 1 Exemption Expires”
(Source: Integration Point Blog, 2 May 2018.)
 
Last month, U.S. President Donald Trump slapped tariffs of 25% on steel imports and 10% on imported aluminum, but granted allies a temporary exemption until yesterday, May 1, 2018.

The tariffs are part of a push to tighten access to the U.S. market for politically sensitive imports. President Trump also said they were intended to bring countries to the negotiating table to address what he sees as unfair imbalances in trade.
 
A mere 11 hours after the U.S. listed 1,333 Chinese products to be hit with punitive tariffs, Beijing imposed similar 25% penalties on 106 American-made products. 
 
The U.S. is targeting products in high tech and industrial sectors where China wants to be a world leader by 2025. The U.S. excluded products where penalties might cause disruption to the U.S. economy or those that would hit consumers hard. None of the top five U.S. imports goods from China is affected by the tariffs.
 
So far, the U.S. has imposed tariffs on solar panels and washing machines in January, and aluminum and steel in March, all of which affect China. China sells mainly daily necessities to the U.S. that usually have low profit margins, while the U.S. sells items like aircraft and automobiles to China, ones that undeniably have more added values.
 
After China responded with a list of U.S. goods that would be subject to tariffs, Trump raised the stakes on April 4 by directing the U.S. Trade Representative to consider $100 billion in additional levies.
 
Exemptions
 
The exemptions for allies were announced as temporary, with a May 1 expiration date. Australia, Canada, the European Union, and Mexico have been granted exemptions.
 
Japan desired to be excluded from the steel and aluminum tariffs that went into effect last month.
 
Plenty of American companies that import steel and aluminum are seeking an exemption from the tariffs, too.
 
It’s been about a month since the Trump administration opened the exemption application process, and in that time, the Department of Commence has received about 2,200 applications.
 
International community perceptions and actions
 
European Union.
Cecilia Malmstrom, the European Union’s trade commissioner, also said the bloc would not offer any concessions in order to be exempt from the U.S. import duties ahead of a May 1 deadline in talks. 
 
Korea.
Seoul – the world’s third-largest exporter of steel to the U.S. – has agreed to reduce those exports by 30%, essentially agreeing to a quota in return for an indefinite exemption from tariffs.
 
China.
They would impose the planned tariffs only when the U.S. does so. Chinese President Xi Jinping promised to open the country’s economy further and lower import tariffs on products like cars, in a speech seen as an attempt to defuse an escalating trade dispute with the U.S.
 
Russia.
Demanding compensation for U.S. steel tariffs, Moscow has joined the EU, India, and other nations in seeking rebates from Washington via the World Trade Organization (WTO).
 
Australia.
Australian Industry Group says temporary exemption may be extended for another 30 days from May 1 as a more permanent deal remains elusive.
 
Consequences
 
  – China has filed a WTO complaint challenging U.S. President Trump’s tariff hike on imported steel and aluminum.
  – Latin American countries like Brazil and Argentina, as well as Australia, could see demand for their exports grow.
  – China has requested 60 days of consultations with the U.S. on the steel and aluminum dispute, said the WTO. If that fails, the next step could be for Beijing to request a ruling from a panel of trade experts.
  – The EU has drawn up a list of “rebalancing” duties worth some 2.8 billion euros ($3.4 billion) to slap on U.S. products if it is not permanently excluded.
  – China imposed a temporary 179% tariff on U.S. sorghum. China is the largest buyer of U.S. sorghum. China relies almost entirely on the U.S for its sorghum, importing about $1 billion worth of the grain a year.
  – Tariffs on steel and aluminum imports are boosting costs for equipment and infrastructure and causing some American farmers and agricultural firms to scrap purchases and expansion plans.
  – Transshipments are likely to be a major part of any negotiations between China and the U.S. aimed at the tariffs. They could also figure into conversations with Europe, South Korea, Canada, and other major partners looking to extend their exemptions from U.S. steel tariffs. The governments may need to be on alert to make sure they do not become way stations.
 
You can read more about this topic on CNBC, Forbes, and The Tribune.

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(Source:
Wall Street Journal, 2 May 2018.) [Excerpts. Subscription required.]
 
The Pentagon is moving to halt the sale of phones made by Huawei Technologies Co. and ZTE Corp. in retail outlets on U.S. military bases around the world, citing potential security threats they say the devices could pose.
 
The move intensifies a squeeze the Trump administration has put on the two Chinese makers of telecommunications gear and mobile devices. Washington officials have said Beijing could order Chinese manufacturers to hack into products they make to spy or disable communications. …

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COMMCOMMENTARY

COMM_a0
11. J. Harper: “U.S. Officials Ask for Industry’s Help in Boosting Arms Exports”

(Source: National Defense Magazine, 25 Apr 2018.)
 
* Author: John Harper, Managing Editor for National Defense Magazine, jharper@ndia.org.
 
Under pressure from President Donald Trump to increase exports of U.S.-manufactured military equipment, government officials want industry’s input on how to facilitate international arms sales.
 
Trump on April 19 issued a national security memorandum regarding conventional arms transfer policy. It called for “supporting United States industry with appropriate advocacy and trade promotion activities and by simplifying the United States regulatory environment.” A new, complementary policy aimed at reducing restrictions on the overseas sale of unmanned aerial systems was also put forward.
 
Government agencies were given 60 days to develop an implementation plan.
 
During an April 24 event at the U.S. Chamber of Commerce in Washington, D.C., officials discussed the road ahead.
 
  “For too long we made it too hard to provide our allies and partners with the defense capabilities they require and that are in America’s interest,” Peter Navarro, assistant to the president and director of the White House National Trade Council, said during his remarks.
 
  “In the coming weeks, the Departments of State, Defense and Commerce will be reaching out across American industry and civil society during a public comment period to build a deeper understanding of the issues involved and obstacles facing our exporters. Whether there are internal barriers like unnecessary red tape or external barriers such as unfair offset requirements, this administration will be ready to tackle them,” he added.
 
Navarro noted that strengthening the defense industrial base by boosting exports would serve Trump’s goals of creating manufacturing jobs and reducing the United States’ overall trade deficit.
 
During a panel discussion, Undersecretary of Defense for Policy John Rood said the health and wellbeing of the industrial base will now be a top consideration when U.S. officials are evaluating potential international military sales. That is “the fundamental change” brought about by the new conventional arms transfer policy, he added.
 
Tina Kaidanow, acting assistant secretary of state for political-military affairs, noted that the clock is already ticking for officials to create an implementation plan.
 
  “As we develop the plan we want to engage with you and your industry colleagues to get your input,” she said. “Now is really the time … to focus on how we might improve the environment for sales overseas.”
 
In particular, officials are examining how the U.S. government can improve the way it advocates for American companies in international competition, she said.
 
  “We’re considering how to make our systems more affordable for international customers whether through financing support or other means,” she said. “We’re interested in hearing your suggestions about addressing offset practices that can disadvantage our companies.”
 
Undersecretary of Defense for Acquisition and Sustainment Ellen Lord said companies can also help by having a better understanding of what technology is exportable and incorporating that into the design of their systems. Many subsystems have sensitive technologies that make them more difficult to sell overseas, she told reporters after the panel discussion.
 
  “The really important thing is if industry can design systems initially to be exportable, that’s great,” she said. “Just like we’re trying to write contracts that have [contract line item numbers] in them that will allow exporting very quickly, if we can design for exportability that will help us all.”
 
Bolstering key partners and allies is one of the major pillars of the 2018 national defense strategy, and a top priority of Defense Secretary Jim Mattis. In an era of renewed great power competition, arms transfers can play a key role in that effort, Lord said during the panel discussion.
 
 “What differentiates us [from near-peer competitors] moving forward is the fact that when we go to war against China or Russia – if that happens – we have allies and partners that they don’t. So building up that base is very, very important. We want to make sure that we can export our technology, our products so that we are truly interoperable to fight together,” she said.
 
  “I really look forward to using [the new conventional arms transfer policy] moving forward in terms of providing more materials across the world to our allies and partners,” she added.
 
Kaidanow is bullish about the trajectory of U.S. military exports in the coming years.
 
In fiscal year 2017 her office authorized, licensed and provided oversight for $42 billion in government-to-government sales and $112 billion in direct commercial sales, she noted. “Those are significant numbers, and I think we’ll see them go up even more significantly in the near future,” she said.

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COMM_a01
12. T.G. Ficaretta: “ATF Gets $10 Million Boost in Budget for Regulatory Programs”
(Source: Ficaretta Legal Services, LLC
, 1 May 2018.)
 
*
Author: Teresa G. Ficaretta, Esq., Ficaretta Legal Services, LLC, teresa@ficarettalegal.com, 301-353-3558.
 
The Consolidated Appropriations Act, 2018, gave the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) a $35 million increase in its annual budget from the agency’s fiscal year 2017 figure.  The Act, Public Law 115-141, was signed into law by the President on March 23, 2018.  It covers appropriations for federal government agencies for fiscal year 2018, which runs from October 1, 2018-September 30, 2019. 
 
The House Report accompanying the bill states that the total figure appropriated for ATF, $1.29 billion, is $35 million above the agency’s 2017 figure and $20 million above the budget request submitted by the Department of Justice.  This is a very good sign, as Congress clearly recognizes the importance of ATF’s mission.  The House Report specifically states, “ATF’s highest priority shall be to combat violent crime and promote public safety.”
 
The House Report also recommends that $10 million of the increase for the agency be used for the following activities:
 
  – National Firearms Act Branch
  – Federal Firearms Licensing Center
  – Federal Explosives Licensing Center
  – Imports Branch
  – Development and implementation of ATF’s next generation eForms system
 
Language in House and Senate reports is not binding in the same way as earmark language in the appropriations bill itself.  Nonetheless, federal agencies recognize that appropriators put language in reports as a strong recommendation to agencies that funds be used in the manner recommended.  Thus, ATF knows that staff from the House Appropriations Committee will be following through to determine whether the $10 million was used in the manner set forth above.
 
How will ATF allocate the $10 million for the regulatory services listed above?  The most pressing need for the agency is probably the NFA Branch, as that branch continues to have a significant backlog, particularly for Form 4 firearms transfer applications.  However, ATF has been promising a complete and updated eForms system for years.  NFA Forms 1, 4, and 5 are not available as eForms, and neither is the Form 7 firearms license application or Form 5400.13 explosives license application.  Completion of all ATF forms as eForms would significantly streamline all forms processing, resulting in efficiency for ATF and time saved by industry members.  My vote for the $10 million is to spend it on eForms. 
 
ATF officials advise that discussions are underway on how to spend the additional $10 million.  The agency has difficult decisions to make on eForms, system upgrades for old legacy databases, and other IT improvements.  ATF representatives attending the NSSF Import/Export conference will definitely be asked how they are spending the additional funds.

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

 
* Author: Gary Stanley, Esq., Global Legal Services, PC, (202) 352-3059,
gstanley@glstrade.com
.
 
EAR § 770.3(c)(1) provides that U.S.-origin technology does not lose its U.S.-origin when it is redrawn, used, consulted, or otherwise commingled abroad in any respect with other technology of any other origin. Therefore, any subsequent or similar technical data prepared or engineered abroad for the design, construction, operation, or maintenance of any plant or equipment, or part thereof, which is based on or utilizes any U.S.-origin technology, is subject to the EAR in the same manner as the original U.S.-origin technology, including license requirements, unless the commingled technology is not subject to the EAR by reason of the de minimis exclusions described in EAR § 734.4.

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MSEX/IM TRAINING EVENTS & CONFERENCES

MS_a214. FCC Presents “Summer Course U.S. Export Controls: An Introduction to the ITAR & EAR”, 12 Jun in Bruchem, the Netherlands

 
* What: Summer Course U.S. Export Controls: An Introduction to the ITAR & EAR
* When: 12 Jun 2018, 10 AM – 4 PM (CEST)
* Where: Landgoed Groenhoven, Bruchem, the Netherlands
* Sponsor: Full Circle Compliance (FCC)
* FCC Speaker Panel: Mike Farrell and Ghislaine Gillessen
* Register: Here or by e-mail events@fullcirclecompliance.eu 
* * * * * * * * * * * * * * * * * * * *

ENEDITOR’S NOTES

 
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EN_a316
. 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: 12 Apr 2018: 83 FR 15736-15740: CBP Decision No. 18-04; Definition of Importer Security Filing Importer (ISF Importer)
 
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:
5 Apr 2018: 83 FR 14580-14583: Reclassification of Targets for the Production of Tritium and Related Development and Production Technology Initially Classified Under the 0Y521 Series [Imposes License Requirements on Transfers of Specified Target Assemblies and Components for the Production of Tritium, and Related “Development” and “Production” Technology.]

  
*
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: 24 Apr 2018: 3 FR 17749-17751: Foreign Trade Regulations (FTR): Clarification on the Collection and Confidentiality of Kimberley Process Certificates
  – HTS codes that are not valid for AES are available
here.
  – The latest edition (30 Apr 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: 25 Apr 2018: Harmonized System Update 1806
[contains 5,993 ABI records and 1,287 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: 25 Apr 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_a0317
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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