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18-0504 Friday “Daily Bugle”

18-0504 Friday “Daily Bugle”

Friday, 4 May 2018

TOPThe 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
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[No items of interest noted today.] 

  1. Items Scheduled for Publication in Future Federal Register Editions 
  2. Commerce/BIS: (No new postings.) 
  3. DHS/CBP Announces Scheduled Maintenance, 5-6 May
  4. DHS/CBP Posts Harmonized System Update 1807
  5. DHS/CBP Updates In-Bond CATAIR Implementation Guide
  6. DoD/DSCA Posts Policy Memo 18-27
  7. State/DDTC Launches Redesigned Website
  8. Canada GA/TID Amends Bill C-47
  1. The Guardian: “Judges Grant Appeal against Decision to Allow UK Arms Exports to Saudi Arabia”
  2. ST&R Trade Report: “E-Commerce Regulation and Facilitation a High Priority for U.S. and Others”
  1. Global Trade News: “Webcast Q&A: Navigating Global FTA Challenges and Uncertainty”
  2. M. Volkov: “FLIR Systems ITAR Settlement Outlines Important Export Compliance Factors (Part II of II)”
  3. Z. Hadzismajlovic: “Buy American, Pack American: The New Conventional Arms Transfer Policy”
  4. R.C. Burns: “De Minimis Rules Create De Maximis Confusion for ZTE Exports”
  1. FCC Presents “Summer Course U.S. Export Controls: An Introduction to the ITAR & EAR”, 12 Jun in Bruchem, the Netherlands
  2. List of Approaching Events – 11 New Events Listed
  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 (4 May 2018), ITAR (14 Feb 2018) 
  3. Weekly Highlights of the Daily Bugle Top Stories 

EXIMITEMS FROM TODAY’S FEDERAL REGISTER

EXIM_a1


[No items of interest noted today.]

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OGSOTHER GOVERNMENT SOURCES

OGS_a11
. Items Scheduled for Publication in Future Federal Register Editions
 

(Source:
Federal Register)
 
* President; PROCLAMATIONS; Trade [Publication Date: 7 May 2018.]:
  – Aluminum; Adjustment of Imports into the United States (Proc. 9739)
  – Steel; Adjustment of Imports into the United States (Proc. 9740)

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OGS_33. DHS/CBP Announces Scheduled Maintenance, 5-6 May

(Source: CSMS #18-000329, 4 May 2018.)
 
There will be ACE PRODUCTION Scheduled Maintenance Saturday evening, May 5, 2018 from 2200 ET to 0400 ET Sunday, May 6, 2018.

ACE will perform infrastructure maintenance activities and the following ACE Deployment during this time:

Foreign Trade Zone (FTZ)  
  – Fix for FTZ status notifications not always sent for Split airway bills.

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OGS_a44
. DHS/CBP Posts Harmonized System Update 1807

(Source: CSMS #18-000327, 4 May 2018.)
 
Harmonized System Update (HSU) 1807 was created on May 3, 2018 and contains 289 ABI records and 60 harmonized tariff records.
 
This update includes modifications made as a result of two Presidential Proclamations, issued April 30th, adjusting imports of steel and aluminum imports into the United States. These changes were effective on May 1, 2018.
 
The Presidential Proclamation on Steel may be found here.
 
The Presidential Proclamation on Aluminum may be found here.
 
Adjustments required by the verification of the 2018 Harmonized Tariff Schedule (HTS) are included also.
 
The modified records are currently available to all ABI participants and can be retrieved electronically via the procedures indicated in the CATAIR. For further information about this process, please contact your client representative. For all other questions regarding this message, please contact Jennifer Keeling via email at Jennifer.L.Keeling@cbp.dhs.gov.
 
  – Related CSMS No. 18-000317

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(Source:
CSMS #18-000328, 4 May 2018.)
 

An updated In-bond CATAIR Implementation Guide has been posted here for the upcoming In-bond regulation changes that will require a FIRMS code upon Arrival of an In-bond for most modes of transportation.

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(Source:
DoD/DSCA, 4 May 2018.)
 
  – DSCA Policy 18-27 – Announces the reduction to the FMS Administrative Surcharge rate and provides implementation instructions.

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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:
Canada GA/TID, 4 May 2018.)
 
On April 13, 2017, the Minister of Foreign Affairs introduced Bill C-47, An Act to amend the Export and Import Permits Act (EIPA) and the Criminal Code (amendments permitting the accession to the Arms Trade Treaty (ATT) and other amendments).
 
Bill C-47 proposes legislative amendments to the EIPA and one section of the Criminal Code that would regulate brokering and create a legal requirement to take into account a number of considerations before authorizing the export of arms. 
 
In remarks before the Standing Committee on Foreign Affairs and International Development on February 8, 2018, the Minister of Foreign Affairs announced the Government of Canada’s support for further amendments that would strengthen Bill C-47 and Canada’s arms-export controls.
 
Importantly, these amendments would obligate the Minister of Foreign Affairs to apply the assessment criteria required by the Arms Trade Treaty when considering the granting of export and brokering permits. They would also require the Minister of Foreign Affairs to deny a permit when there is a substantial risk that the export or brokering of the goods would result in the negative consequences listed in these criteria.
 
These changes would mean that Global Affairs Canada would need to ensure-before authorizing the export of arms -a high level of confidence that the arms will not be used to commit human rights abuses.
 
In her remarks to the Committee, the Minister also said that Canada would hold itself to a higher standard on the export of arms, to reflect the expectations of Canadians that such exports are not used in the serious violation of human rights.

The Minister also said that as a matter of broad principle, Canada will honour pre-existing contracts to the greatest extent possible.
On March 20, 2018, the Standing Committee on Foreign Affairs and International Development reported the amended Bill C-47 back to the House of Commons.
 
In parallel with Parliament’s ongoing consideration of Bill C-47, Global Affairs Canada is reviewing its procedures and evaluation process in accordance with the new guidance shared by the Minister of Foreign Affairs to ensure that appropriate procedures are in place should Bill C-47 receive Royal Assent. This process involves consultations with stakeholders, including industry and civil society. Further information will appear on this website.
 
Links

 

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NWSNEWS

(Source:
The Guardian, 4 May 2018.)
 
Campaigners have been granted an appeal against a high court ruling allowing the UK to continue selling arms to Saudi Arabia that may have been used by Saudi forces in Yemen.
 
The court of appeal, responding to an attempt by the Campaign Against Arms Trade (CAAT) to overturn last summer’s verdict, said the key issue that needed to be examined was the accepted principle that the British government should “not grant a licence if there is a clear risk that the items might be used in the commission of a serious violation of international humanitarian law”.
 
The issue of British arms sales to Saudi Arabia, and the government’s support for the Saudi intervention in Yemen, has become more controversial as the war in Yemen has dragged on, plunging the country into increasing chaos and hunger.
 
Saudi-led forces have also been accused of air raids in which civilians have been killed.
 
The granting of the appeal will allow campaigners to challenge the high court ruling that the secretary of state for international trade had not acted unlawfully or irrationally in refusing to block export licences for the multi-billion sale and transfer of arms and military equipment.
 
In written evidence two years ago the government admitted that, as the conflict in Yemen worsened, a Saudi request to accelerate the delivery of Paveway precision-guided bombs, training and other assistance had been granted.
 
Giving the group leave to appeal, Lord Justice Irwin and Lord Justice Flaux said the government should not be allowed to “balance the risk of serious violation of international humanitarian law against any other, extraneous considerations, including whether the end of British arms sales to Saudi Arabia would make matters better or worse in the Yemen”.
 
Andrew Smith, of CAAT, said later: “The Saudi-led bombardment of Yemen has killed thousands of people and created one of the worst humanitarian disasters in the world.
 
  “Despite this, the Saudi regime has been armed and supported every step of the way by successive UK governments.
 
  “We believe that these arms sales are immoral, and are confident that the court of appeal will agree that they are unlawful.”
 
Britain sells billions of pounds worth of arms to Saudi Arabia, which is historically one of its major arms markets. There was a sharp increase last year in deals that critics such as Emily Thornberry, the shadow foreign secretary, have described as being done “behind closed doors, and shrouded in secrecy”.
 
Commenting on the ruling, Rosa Curling, of law firm Leigh Day, representing the campaigners, said: “We are delighted the court of appeal judges have recognised that a full hearing into this case must take place.
 
  “It is clear from the open evidence in this claim that there is a clear risk the arms sold from the UK might be used in serious violation of international law. Where our politicians have sadly failed to follow UK legislation and policy, our client hopes the court will ensure the rule of law is upheld.”
 
A government spokesman said: “We remain confident that the UK operates one of the most robust export control regimes in the world and will continue to defend the decisions being challenged.
 
  “We keep our defence exports under careful review to ensure they meet the rigorous standards of the consolidated EU and national arms export-licensing criteria.”
 
The decision was also welcomed by other aid organisations who have been campaigning on the Yemen issue.
 
Shane Stevenson, Oxfam’s country director in Yemen, said: “We welcome the court of appeal’s decision. The UK should not continue to sell arms where there is the real likelihood that they will exacerbate what is already the world’s largest humanitarian disaster.”
 
Save the Children hailed the ruling in a statement, saying: “Since the beginning of the conflict at least 6,000 children have been killed or injured in what the UN describes as an entirely manmade’ catastrophe.
 
  “More than 16,000 air raids have occurred across the country, including attacks on schools, hospitals and markets – one air raid every 90 minutes for the last three years. During the same period the UK has licensed £4.6bn worth of arms to the Kingdom of Saudi Arabia … The UK government has both a moral and legal obligation to ensure British-made weapons aren’t killing and maiming children in Yemen.”
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Authorities and trade industry members in the U.S. and around the world are continuing to take steps to respond to the rapid growth in e-commerce shipments, which poses challenges related to security, revenue collection, and regulatory compliance. Several recent developments are highlighted below.
 
WTO
. As part of a work program that could lead to negotiations on an e-commerce agreement among World Trade Organization members, the U.S. submitted a paper outlining a number of suggested priorities, including (1) ensuring that both consumers and companies are able to move data across borders without arbitrary or discriminatory restrictions, (2) ensuring that companies are not required to build or employ unique, capital-intensive digital infrastructure in every jurisdiction they serve, (3) continuing to provide duty-free treatment for digital products, (4) prohibiting forced technology transfer and the sharing of source code, trade secrets, or algorithms as a condition for market access, (5) ensuring the ability to use innovative and secure encryption technology, (6) adopting a risk-based approach to cybersecurity, (7) adapting regulatory frameworks, (8) ensuring competitive telecommunications markets, and (9) fully implementing the WTO’s Trade Facilitation Agreement.
 
WCO
. The World Customs Organization’s Working Group on E-Commerce has finalized a draft framework of standards designed to help WCO members develop e-commerce strategic and operational frameworks in cooperation with stakeholders. The WCO states that this framework will be supported by an implementation strategy, action plan, and capacity-building mechanism and will also be enriched with technical specifications, guidelines, and case studies.
 
The WGEC also recently (1) held a preliminary discussion on the data elements needed for effective risk management and speedy clearance of e-commerce shipments, together with who would have that data and who could provide it in a timely manner, and (2) approved an updated version of the Immediate Release Guidelines, which have been adapted to the e-commerce environment to support the expeditious release and clearance of e-commerce shipments and parcels.
 
NAFTA
. Dozens of members of the House of Representatives wrote to U.S. Trade Representative Robert Lighthizer urging him to include in a revised NAFTA “provisions that will facilitate e-commerce transactions and remove customs red tape in North America.” In particular, the U.S. should push Canada and Mexico to increase the de minimis value of shipments under which formal entry is not required; these levels are currently $16 and $50, respectively, the letter said, compared to $800 for the U.S. The representatives also called for Canada and Mexico to improve their informal clearance procedures.
 
CBP
. U.S. Customs and Border Protection Commissioner Kevin McAleenan told a House subcommittee that the agency will be looking to enhance its Automated Commercial Environment to enable de minimis functionality, which will provide access to previously unavailable admissibility data for the low-value shipments that are typical of e-commerce transactions. McAleenan noted that CBP has seen a nearly 50 percent increase in express consignment and international mail shipments over the past five years and that more automated solutions should improve cargo processing and the use of enforcement resources.

According to an American Shipper article, a CBP official said the agency “is formulating a proposal for Congress to grant it additional authority for managing risks associated with e-commerce.” The article said the proposal “includes considerations for ensuring CBP shares sufficient information with rights holders and works appropriately with parties to the transaction,” which are often different from those CBP has traditionally dealt with.
 
Earlier this year CBP issued an e-commerce strategy that covers issues such as legal and regulatory reform, operational changes and enhancements, private sector compliance through enforcement and incentives, and international trade standards for e-commerce. 
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COMMCOMMENTARY

(Source:
Integration Point
Blog, 4 May 2018.)
 
On April 19, 2018, Integration Point held a free webcast on “Navigating Global FTA Challenges and Uncertainty.” We discussed the historical background of free trade agreements (FTAs), the difficulties companies face in managing FTAs, and a trade professional’s perspective on how PolyOne Corporation leverages a global FTA strategy. Our speakers – George Weise, former U.S. Commissioner of Customs, and Lila Landis, Senior Manager of Global Trade at PolyOne Corporation – will answer them here.
 
Has the likelihood of being audited increased or decreased over the years?
(Weise) The likelihood of being audited by CBP has actually increased in recent years. The most recent available data has shown that CBP audits have increased by roughly 30% in fiscal year 2016 over 2015.  Many of these increased audits have been focused on FTAs.
 
On an FTA certificate, can you use “family” numbers? Many items are made to order but are considered to be belonging to the same model family. Does the certificate have to show every part number manufactured, or are families allowed?
(Landis) This depends on your organization and the variability of your Bills of Material (BOMs). For my organization, the BOMs can vary significantly between plants and within a product family, so we qualify each part number individually to ensure that it meets the Rule of Origin. If you have a product family that uses the same raw materials in the same ratios from the same vendors, then you could qualify one product and use that as evidence that the family of products will qualify. If the family of products has BOMs that vary in terms of raw materials, ratios, or vendors, then I would not recommend this.
 
Where is the regulation that states you need to have supplier/vendor certs for doing your FTA/NAFTA/COO analysis, and how do you use them for FTA agreements if they will not give the specific preference criteria?­
(Landis) In the NAFTA rules of origin, the Regional Value Content requirement is for “originating” content. The NAFTA certificate from your supplier for the raw material is how you demonstrate that the raw material is originating and thus counts toward the RVC. Without a certificate, how would you prove to Customs that your raw materials are originating?

I do not use NAFTA certificates from vendors if they do not contain all of the required information, including the preference criterion. In cases where the vendor is reluctant to provide a complete certificate, I involve our Sourcing department to escalate the request with the vendor. If the vendor still does not provide a complete certificate, we consider their material to be non-NAFTA and recommend to Sourcing not to purchase from them.
 
Regarding NAFTA rules of origin, when a rule specifies a specific RVC % to be satisfied, does it require to satisfy both tariff shift and RVC % as mentioned in the same rule of origin?­
(Landis) Typically the rule will require RVC and a tariff shift only for a component that is the same tariff code as the finished good. Example:
A change to headings 3901 through 3920 from any other heading, including another heading within that group, provided there is a regional value content of not less than:

  (A) 60% where the transaction value method is used, or
  (B) 50% where the net cost method is used.

  “A change to headings 3901 through 3920 from any other heading” means that if you have a component in heading 3901 and your finished good is also in 3901, then you will need a NAFTA certificate for that component, AND you need to meet the RVC.
 
In case of exports to Bahrain, is there a specific format of certificate of origin for the U.S.-Bahrain trade agreement?
(Landis) No, there is no specific format specified for this FTA.
 
What steps does CBP expect importers to take to make sure they get this right?
(Weise) CBP recognizes that the rules of origin for FTAs are quite complex and that, even when importers are doing everything they can to get it right, mistakes will happen. But when CBP auditors decide to review your FTA compliance, they are looking to ensure that you are exercising “reasonable care” to get it right. They want to see that you have implemented processes and procedures to validate that information that you receive from vendors, and suppliers are reliable and trustworthy. They want to see that you are reviewing your processes and testing outcomes on a regular basis and implementing corrective actions when problems are found. They will be looking closely to ensure that your record-keeping procedures allow for the complete reconstruction of transactions to ensure accuracy. If you are doing all of that and innocent mistakes are made that result in underpayment of duty, you will need to pay that additional duty. But you are not likely to be subject to any additional penalties.
 
How high a priority is it for CBP and other customs administrations to focus on FTA compliance?
(Weise) FTA enforcement is clearly a very high priority for CBP and other Customs administrations around the world. CBP actually publishes a list of its “priority trade issues,” which they identify as having the potential to “cause significant revenue loss, harm the U.S. economy, or threaten the health and safety of Americans.” On that list are “trade agreements” and “revenue,” both of which come into play with FTAs. Because FTAs are so complex, with the potential for circumvention and huge revenue loss, customs administrations around the world focus a great deal of time and attention on their enforcement.
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(Source:
Volkov Law Group Blog, 3 May 2018. Reprinted by permission.)
 
* Author: Michael Volkov, Esq., Volkov Law Group, mvolkov@volkovlaw.com, 240-505-1992.

[Editor’s Note: Part I of this item was included in yesterday’s, Thursday, 3 May, Daily Bugle.]

The FLIR Systems settlement is an extraordinary event given the sheer number of violations, the systemic breakdown that occurred, and the absence of any meaningful compliance controls.  It is all the more surprising given the fact that FLIR’s operations are devoted in large proportion to the highly-regulated international defense industry market.  Given the level of risk, you would expect FLIR to have in place systems to identify risks and build a robust compliance program around such risks in order to avoid a significant enforcement action.
 
The FLIR case, along with the recent ZTE enforcement action by the Department of Commerce, underscores the trade compliance risks facing companies in the global economy.  Even for those companies that are not involved in exporting defense articles or services, trade compliance should be a high priority, just as significant as anti-corruption and antitrust risks.
 
Under the FLIR settlement (see documents, here, here and here), the Office of Defense Trade Controls Compliance in the Department’s Bureau of Political-Military Affairs (DTCC) insisted that FLIR hire an external Designated Official to oversee the Consent Agreement.  The terms of the Consent Agreement also provide important compliance program elements that should be reviewed by all companies for their trade compliance programs.
 
FLIR is required to hire an external Designated Official or Special Compliance Officer for the four-year term of the Consent Agreement.  For the fourth year, the Special Compliance Officer can be replaced by an Internal Compliance Officer.  The Designated Official shall report directly to the CEO or designee agreed to by the DTCC.

The Designated Official has the authority to present directly to the CEO and/or the DTCC any export-related compliance issues.  The CEO is required to present on the findings and recommendations of the Designated Official concerning FLIR’s export compliance program.  The CEO is obligated to post the appointment of the Designated Official on FLIR’s internal website.
The Designated Official shall have three general areas of responsibility: (1) Policy and Procedure; (2) Specific Duties; and (3) Reporting.
 
Under Policy and Procedure, the Designated Official shall be responsible for the following policies and procedures:
 
  – Identification and classification of defense articles and defense services;
  – Identification of technical data, including derivative drawings or data and marking thereof;
  – Maintenance and protection of access to technical data on FLIR’s computer networks or other methods of storage;
  – Physical security of facilities;
  – Screening and control of persons with access to ITAR-controlled defense articles and services;
  – Compliance with ITAR authorizations, particularly with respect to business development activities;
  – Record-keeping;
  – Shipping operations and record-keeping;
  – Employment and management of foreign-born persons and dual nationals access to defense articles and defense services;
  – Compliance with Part 130 of the ITAR;
  – Procurement policies and identification of US-based foreign manufacturing operations;
  – Incorporating AECA and ITAR compliance into senior executive business management plans; and
  – Preventing, detecting and reporting potential violations;
  – Maintaining adequate compliance staffing levels at all divisions and facilities where ITAR-related activities occur.
 
Under Specific Duties, the Designated Official has four general obligations: (1) implementation of the Consent Agreement; (2) corporate oversight of the ITAR compliance performance in a timely and satisfactory manner; (3) expenditures of remedial measures account in coordination with FLIR’s Chief Financial Officer; and (4) enhancing incorporation of ITAR compliance into senior executives’ business management plans.
 
With respect to Reporting, the Designated Official is responsible for: (1) tracking, evaluating and reporting on FLIR’s review of ITAR violations and compliance resources; (2) providing status reports to the CEO and the DTCC on FLIR’s overall compliance with the Consent Agreement; and (3) ensuring the provision of an accounting report.
 
The Consent Agreement requires FLIR to implement “strengthened” corporate compliance procedures, including a comprehensive effort to train managers and employees on ITAR compliance, within 12 months of the date of the settlement order.
 
FLIR is specifically required to implement an Automated Export Compliance System to strengthen its internal controls. FLIR’s compliance-related expenditures are to be credited against the $15 million civil penalty that was suspended in order to fund compliance-related improvements.
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* Author: Zlatko Hadzismajlovic, Esq., McCarter & English, LLP, zh@mccarter.com, +1 212-609-6843.
 
On April 19, 2018, President Trump issued National Security Presidential Memorandum No. NSPM-10 (the “Memorandum”), which outlined a new Conventional Arms Transfer (“CAT”) Policy. Based on announcements from administration officials, the new CAT Policy will be a catalyst for the economy and operate to further the Trump administration’s “Buy American, Hire American” policies.
 
The new CAT Policy appears to be the first of what may be many proposals being prepared by the Trump administration’s National Security Council in an effort to streamline international arms sales. According to Tina Kaidanow, the Deputy Assistant Secretary for Political-Military Affairs, the goal of the Memorandum is to make sure “U.S. industry faces fewer barriers and less confusion when they are attempting to compete against other countries.”
 
Aligning CAT with National and Economic Interests
 
Broadly, the policy requires that any arms transfers by the United States must take into account five factors: national security, economic security, relationships with allies and partners, human rights and international humanitarian law, and nonproliferation. The Memorandum states that the “executive branch will also streamline procedures, clarify regulations, increase contracting predictability and flexibility, and maximize the ability of the United States industry to grow and support allies and partners.” Given the current regulations governing arms sales, it is difficult to imagine any sort of implementation of the Memorandum that would not result in the promulgation of new regulations that must be followed by industry.
 
Under Section 36(b) of the Arms Export Control Act (“AECA”), Congress must be formally notified 30 calendar days before the administration can take the final steps to conclude a government-to-government foreign military sale of:
 
  – Major defense equipment valued at $14 million or more,
  – Defense articles or services valued at $50 million or more, and/or
  – Design and construction services valued at $200 million or more.
 
In the case of such sales to NATO member states, NATO, Japan, Australia, or New Zealand, Congress must be formally notified 15 calendar days before the administration can proceed with the sale. However, the prior notice threshold values are higher for sales to NATO members, Australia, Japan, or New Zealand.

Commercially licensed arms sales also must be formally notified to Congress 30 calendar days before the export license is issued if they involve the sale of:
 
  – Major defense equipment valued at $14 million or more, and/or
  – Defense articles or services valued at $50 million or more (Section 36(c) AECA).
 
In the case of such sales to NATO member states, NATO, Japan, Australia, or New Zealand, Congress must be formally notified 15 calendar days before the administration is authorized to proceed with a given sale. As with government-to-government sales, the prior notice threshold values are higher for sales to NATO members, Australia, Japan, or New Zealand.
 
Furthermore, formal notification for congressional review must be submitted 30 days prior to the approval of any export license for commercial arms sales cases involving defense articles that are firearms controlled under Category I of the United States Munitions List (“USML”) and valued at $1 million or more. In the case of proposed licenses for such sales to NATO members, Australia, Japan, or New Zealand, 15-day advance notification is required.
 
In general, the executive branch, after complying with the terms of applicable U.S. law, principally contained in the AECA, is free to proceed with an arms sales proposal unless Congress passes legislation prohibiting or modifying the proposed sale. Presumably, in order to streamline any of the foregoing, new legislation amending the AECA is necessary. Here, the Secretary of State has until June 18, 2018, to propose an “action plan” to implement the new CAT policy. The timeline includes interagency consultation with the secretaries of the Department of Commerce, the Department of Defense, and the Department of Energy. It is difficult to foresee how the agencies, without Congress, can effectively and efficiently implement the new policies.
 
Rest Assured, the United States Is a Gold Medalist in the Global Arms Trade
 
The United States remains, by far, the world’s largest arms exporter. According to the Stockholm International Peace Research Institute, the United States accounted for 34% of total arms exports from 2013 to 2017. Our nearest competitor, Russia, accounted for 22% of weapon exports. Germany, France, and China accounted for approximately 5% of global exports each.
 
The arms trade, at least for the United States, has been a growth industry. For example, the Trend Indicator Values for the United States from 2013 through 2017 have increased each year, at times by a significant amount. In 2017 alone, under the Foreign Military Sales (“FMS”) program, the United States government managed the transfer of some $40 billion in defense equipment. An additional $110 billion in sales of defense equipment occurred through the Direct Commercial Sales (“DCS”) program.
 
New Drone Transfer Conditions
 
Concurrently, the Secretary of State released the new U.S. policy on the export of unmanned aerial systems (“UAS”), or drones, including recommendations on potential changes to current restrictions on exporting Category I drones, which are capable of flying long distances with heavy payloads. The new policy will allow U.S. defense contractors to sell armed drones to allies through DCS, as opposed to going through the State Department, the Pentagon, and Congress as part of the FMS program.
 
The new policy applies to all U.S.-origin UAS transfers, whether under the authority of the USML or the Commerce Control List. Specifically:
 
  – Armed UAS: Transfers of armed UAS may be made via DCS or FMS, unless other guidance or restrictions relevant to that particular case requires the transfer to take place using FMS. Recipients must agree as a condition of transfer not to arm armed UAS with a foreign system or unauthorized U.S. system without prior U.S. Government authorization.
 
  – Unarmed UAS: Transfers of unarmed UAS may be made via DCS or FMS, unless other guidance or restrictions relevant to that particular case require the transfer to take place using FMS. Recipients must agree as a condition of transfer not to arm, whether with U.S. or foreign equipment, a U.S.-origin UAS without U.S. Government permission.
 
  – Civil UAS: All Civil UAS will continue to be subject to the licensing requirements and policies of the Export Administration Regulations and will take into account the objectives outlined in this policy and the six nonproliferation factors in section 3 of the Missile Technology Control Regime (MTCR) Guidelines.
 
  – End-Use Assurances for Military UAS: Each recipient state shall agree to use U.S.-origin military UAS in accordance with applicable international law; applicable provisions of the AECA and its implementing regulation; the International Traffic in Arms Regulations; other relevant provisions of U.S. law; and for FMS cases, the transfer agreement. Specifically, each recipient state must agree not to transfer title to or possession of any defense article or related training or other defense service associated with a U.S.-origin military UAS or furnish it to anyone not an officer, employee, or agent of that country.
 
  – Recipient nations must agree not to use or permit the use of a U.S.-origin military UAS for purposes other than those for which the UAS was furnished unless the consent of the U.S. Government has first been obtained. Prior to a potential transfer, the recipient country shall have agreed that it will maintain the security of the military UAS and its related components and will provide substantially the same degree of security protection afforded to such article or service by the U.S. Government. All military UAS systems will also be transferred only with appropriate technology security measures.
 
  – End-Use Monitoring and Additional Security Conditions: All military UAS transfers may be subject to enhanced end-use monitoring and may also be subject to additional security conditions. Transfers of U.S.-origin armed and MTCR Category I UAS shall require periodic consultations with the U.S. Government on their use of U.S.-origin UAS systems.
 
Conclusion
 
In 2011, Jeff Immelt, then the Chief Executive Officer of General Electric Co., noted that the United States wasn’t trying hard enough to export U.S. goods. “Chancellor (Angela) Merkel flies from Berlin to Beijing, there’s 25 German CEOs that go on the plane right behind her. And they connect the dots. They play hard, they play to win.” Although Mr. Immelt was referring to turbine sales, this administration appears to have taken his point to heart regarding arms sales.
 
The administration’s expectation is that the new CAT and UAS policies will increase trade opportunities for U.S. companies, remove barriers to the global UAS market, and prevent ceding export opportunities to our competitors. In addition, the administration believes that it will bolster the security and counterterrorism capabilities of our allies inasmuch as it will facilitate their access to U.S. arms generally, and UAS specifically, thereby advancing shared security or counterterrorism objectives.
 
Another stated objective is that, at least with regard to UAS transfers, the new policy will be a means to strengthen U.S. security relationships when stronger bilateral ties and greater interoperability serve broader U.S. national security and foreign policy interests. The foregoing, presumably, will be calibrated to prevent state or non-state actors from gaining capabilities that would undermine the safety and security of the United States and its allies.
 
The foregoing may very well be achieved with respect to UAS transfers. We’ll have to wait until June 18, 2018, to see how the State Department’s “action plan” will implement the remainder of the new CAT policy.
* * * * * * * * * * * * * * * * * * * *

COMM_a4
14.
R.C. Burns: “De Minimis Rules Create De Maximis Confusion for ZTE Exports”

(Source:
Export Law Blog
, 3 May 2018. Reprinted by permission.)
 
* Author: R. Clifton Burns, Esq., Bryan Cave LLP, Wash DC,
Clif.Burns@bryancave.com
, 202-508-6067).
 
Trade wars, like all wars, inevitably inflict collateral damage on unintended targets. This article in the Wall Street Journal provides an interesting run-down of the collateral damage that the ZTE denial order has had on U.S. companies.  These are companies for which ZTE was a significant customer and which have seen significant drops in their stock prices on the heels of the denial order.
 
Although most of the attention has been focused on the scope of the order’s impact on exports to ZTE from the United States, less attention has been paid to the issue of foreign made products incorporating U.S. content. Consider the dilemma of the company that makes the Gorilla Glass used on ZTE smartphones:
 
Corning Inc., GLW -0.49% which makes Gorilla Glass screens used in smartphones from ZTE and others, said it was assessing whether the sales ban applies to its products made at its factories in Taiwan, Japan and South Korea. The company said it wasn’t sure whether Gorilla Glass includes content that falls under U.S. export controls.
 
There could be a number of reasons for this, including not knowing the origin of the raw materials. But more likely, it could be the confusion over how to apply the de minimis rules in the context of the denial order, which only covers items “subject to the Regulations,” i.e. items “subject to the EAR.” Section 734.4(d)(1) notes that the following items are not “subject to the EAR”:
 

Reexports of a foreign-made commodity incorporating
controlled U.S.-origin commodities … valued at 25% or less of the total value of the foreign-made commodity.

 
The crucial, and confusing, part of this provision is what is meant by “controlled U.S.-origin commodities,” a term that is never defined in the regulations. The only guidance as to the meaning of this phrase is in Supplement 2 to Part 734 which says this:
 
To identify U.S.-origin controlled content for purposes of the de minimis rules, you must determine the Export Control Classification Number (ECCN) of each U.S.-origin item incorporated into a foreign-made product. Then, you must identify which, if any, of those U.S.-origin items would require a license from BIS if they were to be exported or reexported (in the form in which you received them) to the foreign-made product’s country of destination. In identifying U.S.-origin controlled content, do not take account of commodities, software, or technology that could be exported or reexported to the country of destination without a license (designated as “NLR”) or under License Exception GBS (see part 740 of the EAR).
 
Reading the above provision literally, “controlled U.S. origin commodities” for purposes of the ZTE Denial Order would not include EAR99 items and many other items that did not require a license to China because whether something is controlled for de minimis computation depends on whether it is controlled for the “country of destination,” not the recipient.
 
One suspects that BIS means, and would like to cover, all EAR99 or items that were NLR for China in the de minimis computation for foreign made products exported to ZTE on the notion that these exports are controlled to ZTE. But, of course, if wishes were horses, all beggars would ride or, more to the point in this context, if wishes were rules, all agencies would ride roughshod over fairness. I don’t think BIS can cure this by posting some slapdash FAQ on its website instead of going through the procedures required by the APA to amend Supplement 2 to Part 734 to decouple the meaning of controlled from the country of destination.

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

TEEX/IM TRAINING EVENTS & CONFERENCES

TE_a1
15. 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

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

TE_a3
16. 
List of Approaching Events – 11 New Events Listed
(Sources: Editor and Event Sponsors)

Published every Friday or last publication day of the week. Please, send event announcements to John Bartlett, Events & Jobs Editor. (email: 
jwbartlett@fullcirclecompliance.eu), composed in the below format:

# DATE: LOCATION; “EVENT TITLE”; SPONSOR; WEBLINK; CONTACT (email and phone number)
 

#” New or updated listing this week  

 
Continuously Available Training:
 
* E-Seminars: “US Export Controls” / “Defense Trade Controls“; Export Compliance Training Institute; danielle@learnexportcompliance.com 

* Webinar: ”
Company-Wide US Export Controls Awareness Program“; Export Compliance Training Institute;
danielle@learnexportcompliance.com 

* E-Seminars: “ITAR/EAR Awareness“; Export Compliance Solutions;
spalmer@exportcompliancesolutions.com
*Online: “Simplified Network Application Process Redesign (SNAP-R)“; Commerce/BIS; 202-482-2227
* E-Seminars: “Webinars On-Demand Library“; Sandler, Travis & Rosenberg, P.A.
* Online: “International Trade Webinars“; Global Training Center
*
 
Online: “On-Demand Webinars“; “General Training“; Center for Development of Security Excellence; Defense Security Service (DSS)
* Online: “ACE Reports Training and User Guide“; DHS/CBP

* Online: ”
Increase Your International Sales – Webinar Archive“; U.S. Commercial Service

* Web Form: “Compliance Snapshot Assessment“; Commonwealth Trading Partners (CTP)
* Online: “
Customs Broker Exam Prep Course
“; The Exam Center
 
Training by Date:
 

* May 6-8: Toronto, Canada; “2018 ICPA Canadian Conference“; ICPA
* May 6-11: Miami, FL; “U.S. Commercial Service Trade Mission to the Carribean Region“; (Additional dates are available for B2B meetings in listed countries.)
*
 May 7: Commodity Webinar; “May Series: ‘Textile Articles: Basket Provision’“; National Commodity Specialist Division (NCSD) 
* May 7-8: Denver, CO; “2018 Spring Advanced Conference“; Society for International Affairs (SIA)
May 8: New York, NY; “Advanced Classification – Textiles“; Amber Road
May 8: Commodity Webinar; “May Series: Monumental and Building Stone“; National Commodity Specialist Division (NCSD)
* May 8: Webinar; “U.S. Harmonized Tariff Classification Numbers“; U.S. Commercial Service

# May 8: London, UK; ”
Export Control Symposium“; UK Export Control Joint Unit

* May 8: Mexico City, Mexico; “Anti-Bribery Workshop“; TRACE Anti-Bribery Compliance Solutions

# May 8-9: New York, NY; ”
20th New York Conference on FCPA“; American Conference Institute

* May 9: “Wednesday Webinar: Demonstrations and Plant Visits“; Reeves & Dola LLP
* May 9: London, UK; “Advanced Financing of International Trade“; IOEx
May 9: Commodity Webinar; “
May Series: Festive Articles
“; National Commodity Specialist Division (NCSD)
 
May 10: Commodity Webinar; “May Series: Inorganic Chemicals, Fertilizers, and Surfactants“; National Commodity Specialist Division (NCSD) 
* May 10: North Reading; “Best Practices for Integrating Export Compliance Operations in a Global Organization“; Massachusetts Export Center
* May 11: Webinar; “Customs Valuation and Documentation for Tricky Transactions“; Massachusetts Export Center
May 14: Commodity Webinar; “May Series: Ribbons and Trimmings“; National Commodity Specialist Division (NCSD) 
* May 14-15: Washington, D.C.; “
BIS Update 2018 Conference on Export Controls and Policy
“; BIS
May 15: Commodity Webinar; “May Series: Hair Accessories of Heading 9615“; National Commodity Specialist Division (NCSD) 
* May 15: Long Beach, California; “
92 Annual World Trade Week & International Delegate Luncheon and Trade Fair
“; Foreign Trade Association
May 15: San Diego, CA; “Export Controls Specialist – Certification“; Amber Road

# May 15: Detroit, MI; ”
International Documentation Training“; 
East Michigan District Export Council & Allocca Enterprises, Inc.

* May 15-16: Cleveland, OH; “Complying with US Export Controls“; Bureau of Industry and Security
May 16: Commodity Webinar; “May Series: Pharmaceutical Products“; National Commodity Specialist Division (NCSD) 
* May 16: Webinar; “Russia Sanctions Update & Complying with the OFAC 50% Rule“; Massachusetts Export Center
* May 16-17: Amsterdam, Netherlands; “Digital Utilities Europe 2018“; American Conference Institute
* May 16: Southampton, UK; “Intermediate Seminar“; UK Department for International Trade
* May 17: Southampton, UK; “Beginner’s Workshop“; UK Department for International Trade
* May 17: Southampton, UK; “Licenses Workshop“; UK Department for International Trade
* May 17: Southampton, UK; “Control List Classification – Combined Dual Use and Military“; UK Department for International Trade
* May 18: Fall River, MA; “Managing Export Operations & Compliance“; Massachusetts Export Center
* May 20-22: Portland, OR; “Spring 2018 Seminar“; National Association of Foreign Trade Zones (NAFTZ)
# May 22: Portland, OR; “FREE – FTZ Grantee Training“; U.S. Foreign Trade Zones Board
May 22: Commodity Webinar; “May Series: Sweaters and Articles of Heading 6110“; National Commodity Specialist Division (NCSD) 
* Mar 22: Webinar; “Brexit Update: Implications for U.S. Exports to the U.K. and E.U. Webinar“; U.S. Commercial Service

* May 22-23: Miami, FL; “Export Compliance Seminar and Workshop“; 
South Florida District Export Council / U.S. Commercial Service, at University of Miami
* May 22-23: Annapolis, MD; ”
May 2018 Seminar Level III-Mastering ITAR/EAR Challenges“; Export Compliance Solutions;
spalmer@exportcompliancesolutions.com; 866-238-4018

* May 22-23: London, UK; “Upstream Oil and Gas Legal Forum“; C5 Group
* May 22-24: Las Vegas, NV; “Licensing Expo 2018: The Meeting Place for the Global Licensing Industry“; U.S. Commercial Service
May 23: Commodity Webinar; “May Series: Coated and Down Garments“; National Commodity Specialist Division (NCSD) 
* May 23: London, UK; “Control List Classification – Combined Dual Use and Military“; UK Department for International Trade
* May 23-24: Berlin, Germany; “12th Annual Exporters’ Forum on Global Economic Sanctions“; C5 Group
# May 23-24: Cleveland, OH; “Complying with U.S. Export Controls“;   BIS Outreach and Educational Services Division


May 24: Commodity Webinar; “
May Series: Plywood, Veneered Panels, and Similar Laminated Wood
“; National Commodity Specialist Division (NCSD) 

* May 24: Tewksbury, MA; “DFARS Cybersecurity 2.0: The Year of Continuous Monitoring“; NDIA New England
* May 24: London, UK; “Making Better License Applications“; UK Department for International Trade
May 29: Commodity Webinar; “May Series: Cameras of Subheading 8525.80“; National Commodity Specialist Division (NCSD) 
* May 29-31: Hong Kong; “Hong Kong Summit on Economic Sanctions and Compliance Enforcement“; American Conference Institute
May 30: Commodity Webinar; “May Series: Bitcoin Miners“; National Commodity Specialist Division (NCSD) 
* May 30: Webinar; “Recent Developments in EU Export Controls and Sanctions“; Women In International Trade

* May 31: Webinar; ”
Exporting Under NAFTA“; ECTI; 540-433-3977

May 31: Commodity Webinar; “May Series: Women’s Knit Tank Tops“; National Commodity Specialist Division (NCSD) 
Jun 4: Commodity Webinar; “June Series: Wafers, Transformers, and PCBAs“; National Commodity Specialist Division (NCSD) 
Jun 5: Commodity Webinar; “June Series: Alcoholic Beverages“; National Commodity Specialist Division (NCSD) 
# Jun 5: London, UK; “ITAR & EAR from a UK Perspective – Advanced“; Strong and Herd
* Jun 5-6: Chicago, IL; “EAR Boot Camp“; American Conference Institute
Jun 6: Commodity Webinar; “June Series: Self-Adhesives of Heading 3919“; National Commodity Specialist Division (NCSD) 
* Jun 7: Chicago, IL; “ITAR Boot Camp“; American Conference Institute
* Jun 7: Webinar; “Resource Guide on Trade Actions“; NAFTZ
* Jun 6-7: Seattle, WA; “Complying with US Export Controls“; Bureau of Industry and Security
* Jun 6-7: Munich, Germany; “US Trade Controls Compliance in Europe“; NielsonSmith
* Jun 6-7: Munich, Germany; “Pharma Patent Term Extensions“; C5 Group
* Jun 6-8: Baltimore, MD; “97th Annual AAEI Conference and Expo“; American Association of Importers and Exporters

* Jun 7: Webinar; “
The Essentials and Challenges of Exporting Firearms and Ammunition
“; ECTI; 540-433-3977

# Jun 7: Chicago, IL; ”
ITAR Boot Camp“; American Conference Institute

* Jun 8: Stafford, VA; “Spring Golf Outing“; Society for International Affairs;

# Jun 12: Bruchem, Netherlans; ”
Summer Course U.S. Export Controls;” Full Circle Compliance 

* Jun 12: Commodity Webinar; “June Series: Glass Containers: Headings 7010 and 7013“; National Commodity Specialist Division (NCSD) 

* Jun 12: Webinar; “Duty Drawback and Refunds“; U.S. Commercial Service
* June 12-13; Stockholm, Sweden; “Trade Compliance Nordics“; C5 Group
Jun 13: Commodity Webinar; “June Series: Ornaments, Boxes, and Furniture of Heading 4420“; National Commodity Specialist Division (NCSD) 
* Jun 13: San Diego, CA; “Made in America, Buy America, or Buy American: Qualify your Goods and Increase Sales“; Global Trade Academy
* Jun 13: Derby, UK; “Intermediate Seminar“; UK Department for International Trade
Jun 14: Commodity Webinar; “June Series: Medical Instruments and Appliances“; National Commodity Specialist Division (NCSD) 
* Jun 14: Boston, MA; “Export Regulatory Compliance Update“; Massachusetts Export Center
* Jun 14: Webinar; “ACE for Importers and Exporters“; Foreign Trade Association
* Jun 14: Derby, UK; “Beginner’s Workshop“; UK Department for International Trade
# Jun 14: Washington, D.C.; “2018 Women In Defense National Conference” Women in Defense / NDIA
* Jun 14: Derby, UK; “Licenses Workshop“; UK Department for International Trade
* Jun 14: Derby, UK; “Control List Classification – Combined Dual Use and Military“; UK Department for International Trade
* Jun 17-19: Amsterdam, Netherlands; “2018 ICPA European Conference“; International Compliance Professionals Association
Jun 18: Commodity Webinar; “June Series: Heating and Cooling Treatment Facilities“; National Commodity Specialist Division (NCSD) 
* Jun 18: Los Angeles, CA; “Certified Classification Specialist (CCLS)“; Global Trade Academy
Jun 19: Commodity Webinar; “June Series: Sanitary Ware of Iron or Steel“; National Commodity Specialist Division (NCSD) 
Jun 20: Commodity Webinar; “June Series: Polymer Basics“; National Commodity Specialist Division (NCSD) 
* Jun 20-21: McLean, VA; “ITAR Fundamentals“; FD Associates
Jun 21: Commodity Webinar; “June Series: Antidumping on Diamond Sawblades“; National Commodity Specialist Division (NCSD) 
Jun 25: Commodity Webinar; “June Series: Gloves“; National Commodity Specialist Division (NCSD) 
Jun 26: Commodity Webinar; “June Series: Bed Linens“; National Commodity Specialist Division (NCSD) 
Jun 27: Commodity Webinar; “June Series: Fundamentals of Footwear“; National Commodity Specialist Division (NCSD) 
* Jun 27: London, UK; “Control List Classification – Combined Dual Use and Military“; UK Department for International Trade
* Jun 27-28: London, UK; “12th Annual Conference on Anti-Corruption“; C5
* Jun 28: London, UK; “
Making Better License Applications
“; UK Department for International Trade
 
* Jul 4: Cambridge, UK; “Intermediate Seminar“; UK Department for International Trade
* Jul 5: Cambridge, UK; “Beginner’s Workshop“; UK Department for International Trade
* Jul 5: Cambridge, UK; “Licenses Workshop“; UK Department for International Trade
* Jul 5: Cambridge, UK; “Control List Classification – Combined Dual Use and Military“; UK Department for International Trade
Jul 7: Commodity Webinar; “July Series: What’s a Toy?“; National Commodity Specialist Division (NCSD) 
* Jul 10: Chicago, IL; “Duty Drawback Specialist – Certification“; Global Trade Academy
Jul 10: Commodity Webinar; “July Series: Food Incorporating Alcohol“; National Commodity Specialist Division (NCSD) 
* Jul 10-11: Columbia, SC; “Complying with US Export Controls“; Bureau of Industry and Security
* July 10-12: Chicago, IL; “Duty Drawback Specialist – Certification“; Amber Road 
* Jul 11-14: Laredo, Texas; “Best Customs Broker Exam Course“; GRVR Attorneys 
* Jul 12: Commodity Webinar; “July Series: Understanding Types of Woven Fabric“; National Commodity Specialist Division (NCSD) 
* Jul 16: Commodity Webinar; “July Series: Electromechanical Domestic Appliances“; National Commodity Specialist Division (NCSD) 
* Jul 16-18: National Harbor, Maryland; “2018 Summer Basics Conference“; Society for International Affairs
* Jul 17: Commodity Webinar; “July Series: Other Articles of Steel“; National Commodity Specialist Division (NCSD) 
* Jul 17: Los Angeles, CA; “Advanced Classification of Plastics and Rubber“; Global Trade Academy
* Jul 19: Commodity Webinar; “July Series: Tubes and Pipes of Iron or Steel“; National Commodity Specialist Division (NCSD) 
* Jul 19: McLean, VA; “ITAR for the Empowered Official“; FD Associates
* Jul 19-20: Torrance, CA; “
Customs Compliance For Import Personnel
“; Foreign Trade Association
* Aug 1-3: Washington, D.C.; “NSSF and Fair Trade Import/Export Conference“; NSSF
* Aug 6: Detroit, MI; “Export Compliance and Controls“; Global Trade Academy
* Aug 7-9: Detroit, MI; “Export Controls Specialist – Certification“; Global Trade Academy
* Aug 14-15: Milpitas, CA; “Complying with US Export Controls“; Bureau of Industry and Security
* Aug 16: Milpitas, CA; “Encryption Controls“; Bureau of Industry and Security
* Sep 12-13: Springfield, RI; “Complying with US Export Controls“; Bureau of Industry and Security
* Sep 13-17: Galveston, TX (Cruise); “ICPA @ SEA!“; International Compliance Professionals Association (ICPA)
* Sep 16-19: Atlanta, GA; “2018 Annual Conference and Exposition“; National Association of Foreign Trade Zones (NAFTZ)
* Sep 17: Los Angeles, CA; “Import Compliance“; Global Trade Academy
* Sep 17-20: Columbus, OH; “University Export Controls Seminar at The Ohio State University in Columbus“; Export Compliance Training Institute (ECTI); jessica@learnexportcompliance.com; 540-433-3977
* Sep 17-21: Los Angeles, CA; “Import 5-Day Boot Camp“; Global Trade Academy  
* Sep 18: Los Angeles, CA; “Tariff Classification for Importers and Exporters“; Global Trade Academy 
* Sep 19: Los Angeles, CA; “NAFTA and Trade Agreements“; Global Trade Academy
* Sep 19-20: Rome, Italy; “Defense Exports 2018“; SMi
* Sep 20: Los Angeles, CA; “Country and Rules of Origin“; Global Trade Academy
* Sep 21: Los Angeles, CA; “Customs Valuation – The Essentials“; Global Trade Academy
* Sep 21-24: Detroit, Michigan; “Best Customs Broker Exam Course“; GRVR Attorneys 
* Sep 26: McLean, VA; “EAR Basics“; FD Associates 
* Sep 26: Oxford, UK; “Intermediate Seminar“; UK Department for International Trade
* Sep 27: Oxford, UK; “Beginner’s Workshop“; UK Department for International Trade
* Sep 27: Oxford, UK; “Licenses Workshop“; UK Department for International Trade
* Sep 27: Oxford, UK; “Control List Classification – Combined Dual Use and Military“; UK Department for International Trade
* Oct 16-18: Dallas, TX; “Partnering for Compliance West Export/Import Control Training and Education Program“; Partnering for Compliance 
* Oct 18-19: McLean, VA; “ITAR Fundamentals“; FD Associates
* Oct 19: Dallas TX; “
Customs/Import Boot Camp
“; Partnering for Compliance
* Oct 21-23: Grapevine, TX; “2018 Fall Conference“; ICPA
* Oct 22-26: Dallas, Texas; “Best Customs Broker Exam Course“; GRVR Attorneys
* Oct 22-23: Arlington, VA; “2018 Fall Advanced Conference“; Society for International Affairs (SIA)
* Oct 24: Leeds, UK; “Intermediate Seminar“; UK Department for International Trade
* Oct 25: Leeds, UK; “Beginner’s Workshop“; UK Department for International Trade
* Oct 25: Leeds, UK; “Licenses Workshop“; UK Department for International Trade
* Oct 25: Leeds, UK; “Control List Classification – Combined Dual Use and Military“; UK Department for International Trade
* Oct 29 – Nov 1: Phoenix, AZ; ITAR Defense Trade Controls / EAR Export Controls Seminar“; ECTI; jessica@learnexportcompliance.com; 540-433-3977
* Oct 30 – Nov 1: Seattle, WA; “Export Controls Specialist – Certification“; Global Trade Academy
* Nov 6: Detroit, MI; “Classification: How to Classify Parts“; Global Trade Academy
* Nov 7-9: London, UK; “TRACE European Forum, 2018“; TRACE Anti-Bribery Compliance Solutions
* Nov 7-9: Detroit, MI; “Advanced Classification for Machinery & Electronics“; Global Trade Academy
* Nov 12-15: Washington, D.C.; “ITAR Defense Trade Controls / EAR Export Controls Seminar“; ECTI; jessica@learnexportcompliance.com; 540-433-3977
* Nov 13: Tysons Corner, VA; “Made in America, Buy America, or Buy American: Qualify your Goods and Increase Sales“; Global Trade Academy
* Nov 14: Manchester, UK; “Intermediate Seminar“; UK Department for International Trade

# Nov 14-15: London, UK; “
Economic Sanctions & Financial Crime
“; C5 Group 

* Nov 15: Manchester, UK; “Beginner’s Workshop“; UK Department for International Trade
* Nov 15: Manchester, UK; “Licenses Workshop“; UK Department for International Trade
* Nov 15: Manchester, UK; “Control List Classification – Combined Dual Use and Military“; UK Department for International Trade
* Nov 15: McLean, VA; “ITAR For the Empowered Official“; FD Associates
* Nov 27: Houston, TX; “Duty Drawback Specialist – Certification“; Global Trade Academy
* Dec 3-7: Tysons Corner, VA; “Certified Classification Specialist“; Global Trade Academy 
* Dec 4-5: Frankfurt, Germany; “US Defence Contracting and DFARS Compliance in Europe;” C5 Group
* Dec 5: London, UK; “Intermediate Seminar“; UK Department for International Trade
* Dec 5: London, UK; “Beginner’s Workshop“; UK Department for International Trade
* Dec 6: London, UK; “Licenses Workshop“; UK Department for International Trade
* Dec 6: London, UK; “Control List Classification – Combined Dual Use and Military“; UK Department for International Trade
* Dec 6: London, UK; “International Documentation and Customs Compliance“; Institute of Export and International Trade
* Dec 6: Manchester, UK; “
Introduction to Export Controls and Licenses
“; 
* Dec 11: Manchester, UK; “International Documentation and Customs Compliance“; Institute of Export and International Trade
 
2019
 

* Jan 6-7: Long Beach, CA; ”
Fundamentals of FTZ Seminar“;

* May 5-7: Savannah, GA; “2019 Spring Seminar“; National Association of Foreign Trade Zones (NAFTZ)
* Sep 8-11: Chicago, IL; “2019 Annual Conference and Exposition“; National Association of Foreign Trade Zones (NAFTZ)

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

ENEDITOR’S NOTES

EN_a117
. Bartlett’s Unfamiliar Quotations

(Source: Editor)

* Horace Mann (4 May 1796 – 2 Aug 1859; was an American educational reformer and Whig politician dedicated to promoting public education. In 1848, after public service as Secretary of the Massachusetts State Board of Education, Mann was elected to the United States House of Representatives.)
  – “Lost — yesterday, somewhere between sunrise and sunset, two golden hours, each set with sixty diamond minutes. No reward is offered, for they are gone forever.”
 
Friday funnies:
 
* Q. Why did the guru refuse Novocain when he went to his dentist?
   A. He wanted to transcend dental medication. 
 
* Q. What do you call a depressed dentist?
   A. A little down in the mouth.

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

EN_a218. 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
 
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(s): 2 Apr 2018:
83 FR 13849-13862
: Implementation of the February 2017 Australia Group (AG) Intersessional Decisions and the June 2017 AG Plenary Understandings; Addition of India to the AG [Amendment of EAR Parts 738, 740, 745, and 774.]
; and 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:
83 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 April 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 
website
BITAR 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: 4 May 2018: Harmonized System Update 1807, containing 289 ABI records and 60 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_a319
. Weekly Highlights of the Daily Bugle Top Stories
(Source: Editor)
 

Review last week’s top Ex/Im stories in “Weekly Highlights of Daily Bugle Top Stories” posted here.

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* 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.

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