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18-0511 Friday “Daily Bugle”

18-0511 Friday “Daily Bugle”

Friday, 11 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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  1. President Continues National Emergency with Respect to the Central African Republic 
  1. Items Scheduled for Publication in Future Federal Register Editions 
  2. Commerce/BIS Publishes Update Concerning SNAP-R 
  3. DHS/CBP Issues Notice Concerning Cargo Release Statuses in Support of Absolute Quota
  4. DoD/DSS Posts Notices Concerning Defense Manpower Data Center, Classified Information Non-Disclosure Agreements
  5. GAO Ex/Im Reports and Testimonies of Interest
  6. State/DDTC: (No new postings.)
  7. UK OFSI Releases New Guidance on Financial and Trade Sanctions
  8. Australia Commences Another Year of Outreach Programs
  1. ABA Journal: “Forensic Search of Cellphone Seized at Border Requires Some Form of Suspicion, 4th Circuit Says”
  2. Fortune: “One of the World’s Biggest Phone Firms Is Stopping Operations Because of a Ban on Buying U.S. Parts”
  3. The Guardian: “U.S. Faces European Backlash Against Iran Sanctions”
  4. Reuters: “Go Along with U.S. Sanctions, and You’ll Face Jail: Russian Lawmakers Warn”
  5. ST&R Trade Report: “CBP Looking to Advance Regulations on Drawback, Customs Brokers, Air Cargo This Summer”
  6. ST&R Trade Report: “Dates and Deadlines: Importer Security Filing, Customs Investigations, Classification, Labeling”
  1. B. Peters, A. Dukic & A. Kuntamukkala: “Iran Sanctions Relief: Easy Come, Easy Go… the U.S. Withdraws from Iran Nuclear Deal and Announces Intent to Re-Impose Sanctions”
  2. The Export Compliance Journal: “FLIR Systems Hit with $30 Million Fine in Major Deemed Export Compliance Case”
  3. M. Gonzalez, A. Hood & R. Matthews: “UK Sanctions After Brexit: Licensing and Exceptions”
  4. S.M.C. Kovarovics: “They’re Back: U.S. Nuclear Sanctions Against Iran”
  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
  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

1. 
President Continues National Emergency with Respect to the Central African Republic
(Source: 
Federal Register
, 11 May 2018.) 
 
83 FR 22175: Continuation of National Emergency with Respect to the Central African Republic
 
On May 12, 2014, by Executive Order 13667, the President declared a national emergency pursuant to the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) to deal with the unusual and extraordinary threat to the national security and foreign policy of the United States constituted by the situation in and in relation to the Central African Republic — which has been marked by a breakdown of law and order, intersectarian tension, widespread violence and atrocities, and the pervasive, often forced recruitment and use of child soldiers — threatens the peace, security, or stability of the Central African Republic and neighboring states. 
     The situation in and in relation to the Central African 
Republic continues to pose an unusual and extraordinary 
threat to the national security and foreign policy of the 
United States.  For this reason, the national emergency declared 
on May 12, 2014, to deal with that threat must continue in 
effect beyond May 12, 2018.  Therefore, in accordance with 
section 202(d) of the National Emergencies Act (50 U.S.C. 
1622(d)), I am continuing for 1 year the national emergency 
declared in Executive Order 13667.
 
This notice shall be published in the Federal Register and
transmitted to the Congress.
 
  [Presidential Signature.]
 
THE WHITE HOUSE,
    May 10, 2018.

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OGSOTHER GOVERNMENT SOURCES

OGS_a12
. Items Scheduled for Publication in Future Federal Register Editions
 

(Source:
Federal Register)
* Treasury/OFAC; NOTICES; Blocking or Unblocking of Persons and Properties [Publication Date: 14 May 2018.]

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OGS_a23. 
Commerce/BIS Publishes Update Concerning SNAP-R

(Source: 
Commerce/BIS, 11 May 2018.)
 
As part of our ongoing efforts to improve electronic submissions on the Simplified Network Application Process – Redesign (SNAP-R), BIS is implementing more of your suggestions. SNAP-R is BIS’s electronic system to submit license applications, commodity classification requests, and other requests. This latest round of updates is designed to make the SNAP-R system more user-friendly and to limit the time and effort that applicants spend using SNAP-R.
 
The new updates to SNAP-R that are taking effect May 14, 2018 are the following:
 
Login Help
 
You told us you sometimes needed SNAP-R help before logging into the SNAP-R system. DONE!
  – We added a new “Login Help” option to the SNAP-R login screen, to provide assistance for the login process.
 
New “Contact Person” field in the “List Work Items” Page
 
You asked to see who submitted your company’s work items. DONE!
  – We added a “Contact Person” field to the “Work Item List” to allow you to see the contact person for each work item owned by your company (once the owner has shared the work item with you).
 
Telephone and Fax Number Formats (Blocks 2, 15, 16, 17, 18, 19, and 20)
 
You told us you need to enter international telephone numbers and extensions into your SNAP-R contacts and work items. DONE!
  – We changed the telephone number field format in all blocks to accommodate international telephone numbers and telephone extension numbers. For the SNAP-R Contact field, this change now allows 18 characters; for other SNAP-R parties (Blocks 15, 16, 17, 18, 19, and 20), the Phone and Fax text fields now allow 30 characters.
 
Increased Character Limits
 
You asked us to increase the amount of information you could enter into export data fields and information sub-fields. DONE!
 
  (1) Party/Entity Names and Addresses (Blocks 14 – 20): We increased the character fields for purchaser, intermediate consignee, ultimate consignee, original ultimate consignee, and end users from 35 to 80.
  (2) Specific End User (Block 21): We increased the character limit from 250 to 1440, and added a character counter to show how many characters have been used.
  (3) Technical Description (Block 22.j): We increased the character limit from 250 to 1440, and added a character counter to show how many characters have been used.
  (4) Additional Information (Block 24): We increased the character limit from 250 to 1440, and added a character counter to show how many characters have been used.
 
Reminder
 
The SNAP-R system cannot accept foreign characters in party names and addresses or in the filenames of uploaded files. Acceptable characters are Aa to Zz; 0 to 9; space, underscore (_); and hyphen (-).

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OGS_3
4.
DHS/CBP Issues Notice Concerning Cargo Release Statuses in Support of Absolute Quota
(Source: 
CSMS# 18-000337, 10 May 2018.) 
 
On May 31, 2018 ACE will be updated with new Cargo Release Status Messages to support the integration of Absolute Quota.
 
More information can be found in the Absolute Quota Information Notice posted 
here.

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OGS_a45

DoD/DSS Posts Notices Concerning Defense Manpower Data Center, Classified Information Non-Disclosure Agreements

(Source: 
DoD/DSS, 10 and 11 May 2018.) 
 
Correction to DMDC DQI 945

On May 1, 2018, the Defense Manpower Data Center (DMDC) posted Data Quality Initiative (DQI) 945. The DQI included these items — (6) Favorable Eligibility Date is > 16 years old; and (7) Interim Eligibility Date is over 3 years old, which do not align with the Department of Defense guidance that clearances do not expire. DMDC is not automatically taking away anyone’s eligibility for aging interims or overdue PRs. DMDC has confirmed there were no downgrade actions initiated based on the DQI notice. However, actions are still required on items 1-5 (see below).

THIS PERSONS DATA MUST BE CORRECTED WITHIN 30 DAYS FOR ITEMS 1-5.  The subject identified in this notification currently has one or more of the following issues: 

  

  (1) Eligibility Date prior to the Birth Date 

  (2) Eligibility Date equal to the Birth Date

  (3) Eligibility Date < 16 years after Birth Date 

  (4) Future Birth Date 

  (5) Future Death Date
 
SF-312 Submittal 
 
The Personnel Security Management Office for Industry (PSMO-I) has recently received a numerous amount of non-Industrial SF312 non-disclosure agreements. Please be advised, PSMO-I should ONLY receive SF312 for industry personnel. Please ensure you are not submitting 312s for Military or Federal employees.

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Foreign Military Sales: Controls Should Be Strengthened to Address Substantial Growth in Overhead Account Balances
GAO-18-401: Published: May 10, 2018. Publicly Released: May 10, 2018.

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(Source: 
UK OFSI, 11 May 2018.) 
 
The UK Office of Financial Sanctions Implementation (OFSI) has published the following guidance on its website:
 
Sanctions come in different shapes and size – financial sanctions, trade sanctions, arms embargoes and sectoral sanctions. It can be difficult to navigate the legislation and understand what steps businesses need to take to ensure they are compliant.
That’s why OFSI provides guidance to clarify what financial sanctions are and what risks organizations need to consider.
We have just produced our latest 
sector-specific fact sheet for importers and exporters. We worked closely with the import and export sector, as well as the Department for International Trade, to answer these FAQs.
 
Rena Lalgie, director of OFSI, said:
 
We want UK businesses to succeed globally with an understanding of what it means to comply with their sanctions obligations. This supports our aim of encouraging economic growth while enforcing our national security objectives. Our latest guidance clarifies what exporters need to consider to manage their financial sanctions risk.
 
Chris Chew, Head of Policy, Export Control Joint Unit, said:
Just as trade and finance go hand in hand so do trade sanctions and financial sanctions. I welcome the publication of this guidance which gives important information for importers and 
exporters on compliance with financial sanctions.
 
Further Information
 
This guidance includes:
  – the difference between trade and financial sanctions
  – how to find out who is subject to financial sanctions
  – when to apply for an OFSI license as well as an export control license
  – what to do if you suspect a breach
 
You can view the 
Importers and Exporters FAQs online. Please read them alongside our general guidance for further clarification.

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OGS_a99. Aust
ralia Commences Another Year of Outreach Programs

(Source: 
Australia DoD/DEC
, 11 May 2018.)

 
Australia Defense Export Controls (DEC) is commencing another year of outreach programs. 

The first outreach event for 2018 will be held in Brisbane on Tuesday, 5 June 2018. Events will also be held in Perth, Melbourne, Adelaide, and Sydney. 

The outreach program will cover the requirements exporters must meet when exporting controlled goods and technologies. These include military or commercial items that may have potential military end use or could be used in developing chemical, biological or nuclear weapons system. 

The program is aimed at small to medium enterprises who export and want to learn more about: 

 
  – export control regulations, 
  – export controls specific to defense industry or academic and research organizations, and
  – the whole-of-government approach to Australia’s export landscape.
 
You can attend an outreach event in: 
  
  –
 Brisbane, 5 June 2018 register 
now
 
See the Brisbane Program Schedule 
here

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NWSNEWS

(Source: 
ABA Journal, 10 May 2018.) 
 
Some form of individualized suspicion is needed before the government can use forensic software to search a cellphone seized at the border, a federal appeals court said Wednesday.
 
The 
decision by the Richmond, Virginia-based 4th U.S. Circuit Court of Appeals was considered a victory by privacy advocates, though the Turkish citizen challenging the forensic search of his iPhone did not benefit him.
 
The appeals court said border patrol officers had reasonable suspicion to conduct a forensic search of Hamza Kolsuz’s cellphone, and they were entitled to rely on that standard based on case law that suggested it was, at most, all that was required.
 
The officers had seized Kolsuz’s phone after they found firearms parts that required an export license in his checked luggage. It was the third time weapons parts were found in his luggage.
 
The forensic search of Kolsuz’s phone produced information that included personal contact lists, emails, messenger conversations, photographs, videos, calendar, web browsing history, call logs and GPS tracking history. He was sentenced to 30 months in prison after a conviction for violating the Arms Export Control Act and conspiracy.
 
The federal government has contended that searches of electronic devices require no warrant or individualized suspicion under an exception that allows searches of suitcases at the border.
 
The 
Electronic Frontier Foundation, the 
Volokh Conspiracy and the 
American Civil Liberties Union have summaries that recognize the decision as significant. The 
Associated Press and the 
Guardian have coverage.
 
The decision is the first federal appellate ruling to require individualized suspicion in a border search of a cellphone since the U.S. Supreme Court ruled in 
Riley v. California in 2014 that police generally can’t search the contents of a cellphone seized during an arrest, unless they get a warrant, according to the EFF.
 
The San Francisco-based 9th U.S. Circuit Court of Appeals had held in 2013, before 
Riley was decided, that reasonable suspicion is needed for a forensic search of a computer seized at the border, but not for a manual search. The case was 
United States v. Cotterman.
 
Under 
Riley‘s recognition of the extensive information stored on cellphones, the 4th Circuit said, the forensic search of Kolsuz’s phone should be considered a nonroutine border search that requires some measure of individualized suspicion.
 
The EFF and the ACLU had filed amicus briefs urging the 4th Circuit to go further and hold that probable cause is needed before a search of electronic devices, whether it’s a manual search or one using forensic software.
 
The 4th Circuit case is
 United States v. Kolsuz. After arguments in the case, the Department of Homeland Security adopted a policy that treats forensic searches of digital devices as nonroutine border searches requiring reasonable suspicion of activity that violates the customs laws or in cases raising national security concerns, according to the opinion.
 
The department also 
clarified its policies in January on how it intends to protected privileged information of lawyers’ electronic devices after the American Bar Association raised concerns.
 
The ACLU and the EFF have 
filed a separate lawsuit that challenges warrantless searches of electronic devices at the border.
 
Hat tip to 
How Appealing.

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(Source: 
Fortune, 10 May 2018.) [Excerpts.] 
 
ZTE, a major Chinese phone company and the country’s second-largest manufacturer of telecom network equipment, may have been finished off by a U.S. ban on its purchase of American components. The ban stemmed from ZTE’s violation of sanctions on Iran and North Korea.
 
The company 
said in a Wednesday investor note that, as a result of the U.S. “denial order, the major operating activities of the company have ceased.”
 
  “As of now, [ZTE] maintains sufficient cash and strictly adheres to its commercial obligations subject to compliance with laws and regulations,” the Android manufacturer said. “The company and related parties are actively communicating with the relevant U.S. government departments in order to facilitate the modification or reversal of the denial order by the U.S. government and forge a positive outcome in the development of the matters.” … 

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(Source: 
The Guardian, 11 May 2018.) [Excerpts.] 
 
Senior politicians say Europe will consider countermeasures to keep trading with Iran
 
Europe is prepared to introduce measures to nullify the effect of Donald Trump imposing sanctions on any non-U.S. firm that continues to do business with Iran, the French government has said.
 
The warning from the French finance minister, Bruno Le Maire, suggests Trump’s proposals to corral Europe into joining U.S. foreign policy on Iran may lead to a severe backlash by EU firms and politicians, especially advocates of a stronger independent European foreign policy.
 
  “We have to work among ourselves in Europe to defend our European economic sovereignty,” Le Maire said, adding that Europe could use the same instruments as the U.S. to defend its interests. … 
 
Le Maire pointed to the possibility of reinstating EU “blocking regulations”, dating back to 1996, which were used to counter US sanctions that targeted third countries doing business with Libya. 
 
The statute permitted European companies to ignore the U.S. sanctions and said that any decisions by foreign courts based on the sanctions would not be upheld in Europe. The U.S. backed down before any sanctions were implemented. … 

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NWS_a4
13. 
Reuters: “Go Along with U.S. Sanctions, and You’ll Face Jail: Russian Lawmakers Warn”

(Source: 
Reuters, 11 May 2018.) 
 
Russian lawmakers want to make it a criminal offense punishable by up to four years in jail to observe sanctions imposed by the United States or other foreign countries, Russian news agencies reported on Friday.
 
Washington imposed sweeping sanctions on some of Russia’s biggest companies and businessmen on April 6, striking at allies of President Vladimir Putin to punish Moscow for its alleged meddling in the 2016 U.S. presidential election and other so-called malign activities.
 
Russia has since been considering how to respond and the State Duma, the lower house of the Russian parliament, is due to start voting on specific counter sanctions legislation on Tuesday next week, a day after a draft law is brought to parliament.
 
A current draft of that legislation envisages jailing any individual or the representatives of any legal entity in Russia who refuses to supply services or do business with a Russian citizen citing U.S. or other foreign sanctions.
 
Such a crime would be punishable by up to four years in jail or other limits on an individual’s freedom or by a fine of up to 600,000 roubles ($9,730), Russian news agencies reported.
 
The same legislation would also make it a criminal offense for Russian citizens to help foreign governments sanction Russia by providing advice or information.
 
That offense would be punishable by up to three years in jail or other restrictions on an individual’s freedom or by a fine of up to 500,000 roubles ($8,110), Russian news agencies said.
 
Prime Minister Dmitry Medvedev said last month he backed the idea of making it a criminal offense to observe U.S. sanctions and said the government should support sanctions-hit Russian companies to ensure that jobs were not lost.
 
However, lawmakers have diluted other proposed measures removing earlier language that targeted specific goods and sectors amid fears about how such measures might hurt Russian consumers and industries.
 
There were also concerns that specific measures targeted against U.S. goods might prompt Washington to enact more sanctions on Moscow and it is unclear whether the current draft law may yet undergo further dilution.

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NWS_a5
14. 
ST&R Trade Report: “CBP Looking to Advance Regulations on Drawback, Customs Brokers, Air Cargo This Summer” 

(Source: 
Sandler, Travis & Rosenberg Trade Report, 11 May 2018.)
 
Modernizing the customs broker regulations, streamlining the process for enforcing the prohibition on imports made with forced labor, and finalizing a pilot program on air cargo security are among U.S. Customs and Border Protection’s regulatory goals over the next few months. These and other proposed and final rules are included in the semiannual regulatory agendas of the departments of 
Homeland Security and 
the Treasury, which list the following regulations affecting international trade that could be issued within the next year. The expected timeframes for issuance of these rules are indicated in parentheses.
 
Upcoming Regulations
 
  – a CBP interim final rule to implement a mandatory 
Air Cargo Advance Screening program for inbound aircraft with commercial cargo (May 2018; previously January)
  – a CBP proposed rule implementing changes to the 
drawback laws contained in the Trade Facilitation and Trade Enforcement Act by requiring claims to be filed electronically, extending and standardizing timelines for filing claims, modifying recordkeeping requirements, and establishing a new standard for substituting merchandise based on its tariff classification (May 2018; previously January)
  – a CBP proposed rule amending the regulations pertaining to the importation of goods that violate or are suspected of 
violating the copyright laws in accordance with title III of the Trade Facilitation and Trade Enforcement Act and certain provisions of the Digital Millennium Copyright Act (June 2018; previously January)
  – a CBP proposed rule to create a procedure for the disclosure of information otherwise protected by the Trade Secrets Act to a trademark owner when goods bearing suspected 
counterfeit trademarks have been voluntarily abandoned (July 2018; first time published)
  – a CBP proposed rule to update, modernize, and streamline the process for enforcing the prohibition against the importation of goods mined, produced, or manufactured in any foreign country by 
convict or forced labor or indentured labor under penal sanctions (August 2018; first time published)
  – a CBP proposed rule to modernize the 
customs broker regulations, including by allowing national permit holders to conduct customs business in all districts within the U.S. customs territory, removing the requirement to have a district permit in each district where the broker conducts customs business, removing the requirement that brokers maintain physical offices in the districts in which they conduct customs business, and updating the requirements on responsible supervision and control (September 2018; previously June)
  – a CBP proposed rule to establish procedures for determining the duration and scope of a 
vessel debarment (i.e., barring from entry into U.S. ports any vessel owned or chartered by an entity found to be in violation of certain immigration laws and regulations) and how entities may request mitigation of the debarment (September 2018; previously April)
  – an Alcohol and Tobacco Tax and Trade Bureau proposed rule to update procedures for 
exports of distilled spirits, wine, beer, and tobacco products and implement the International Trade Data System (September 2018; unchanged)
  – a CBP final rule to give effect to certain liberalized changes to the 
NAFTA preference rules of origin that have been agreed to by the U.S., Canada, and Mexico (October 2018, previously March; 
proposed rule issued July 2016)
  – a CBP final rule shifting authority to make certain decisions regarding customs transactions from port directors to directors of the 
Centers of Excellence and Expertise (November 2018; previously May)
  – a CBP proposed rule seeking to promote the speed, accuracy, and transparency of administrative rulings concerning the importation of articles that may be subject to 
exclusion orders issued by the International Trade Commission under section 337 of the 1930 Tariff Act (December 2018; previously April)
  – a CBP final rule making technical corrections to the 
rules of origin for goods imported under NAFTA and for textile and apparel goods (December 2018; previously April)
  – a CBP proposed rule that would require customs brokers to verify the 
identity of importers and non-resident importers and would create a process for doing so that is contemporaneous with obtaining power of attorney (December 2018; previously June)
  – a CBP final rule reflecting that the 
Automated Commercial System is being phased out as a CBP-authorized electronic data interchange system for the processing of electronic entry and entry summary filings (December 2018, previously June; 
interim final rule issued October 2015)
– a CBP final rule raising from $200 to $800 the 
de minimis value of articles that may be imported by one person on one day free of duty and tax (December 2018, previously June; 
interim final rule published in August 2016)
– a CBP final rule on procedures for investigating 
evasion of antidumping and countervailing duty orders(December 2018, previously June; 
interim final rule published in August 2016)
  – a CBP final rule clarifying the circumstances under which a notice of arrival must be filed for 
imported pesticides and pesticidal devices, codifying existing required NOA data elements, requiring the submission of additional NOA data elements for unregistered pesticides that are currently optional, and permitting the NOA to be filed electronically in the Automated Commercial Environment (March 2019, previously June 2018; 
interim final rule published in September 2016)
  – a CBP proposed rule to update and modify the 
(a)(1)(A) list in the appendix to 19 CFR Part 163 (March 2019; previously March 2018)
 
Regulations Completed
  
  – a CBP 
final rule to expand the definition of “importer” under the importer security filing rule for certain types of shipments to ensure that the party that has the best access to the required information is the party responsible for filing the ISF

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Following are highlights of regulatory effective dates and deadlines and federal agency meetings coming up in the next week.
 
  May 14 – deadline for comments on Treasury information collections on 
distilled spirits and tobacco
  May 14 – effective date of CBP final rule shifting legal responsibility for 
importer security filing
  May 14 – deadline for comments to DOC on 
forced localization measures for ICT products
  May 16 – deadline for comments to ITC on potential 
IPR import restrictions on arrow rests
  May 16 – CPSC meeting on safety issues associated with 
Internet-connected consumer goods
  May 17 – deadline for comments to ITC on potential 
IPR import restrictions on infotainment systems, movable barrier systems
  May 18 – deadline for comments on proposed 
revocation or modification of classification rulings
  May 18 – deadline for comments to ITC on 
IPR import restrictions on graphics systems
 

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COMMCOMMENTARY

COMM_a116.
B. Peters, A. Dukic & A. Kuntamukkala: “Iran Sanctions Relief: Easy Come, Easy Go… the U.S. Withdraws from Iran Nuclear Deal and Announces Intent to Re-Impose Sanctions” 
(Source: 
Hogan Lovells, 8 May 2018.) 
 
* Authors: Beth Peters, Esq., 
beth.peters@hoganlovells.com, 202-637-5837; Aleksandar Dukic, Esq., 
aleksandar.dukic@hoganlovells.com, 202-637-5466; and Ajay Kuntamukkala, Esq., 
ajay.kuntamukkala@hoganlovells.com, 202-637-5552. All of Hogan Lovells.
 
Declaring that it is “defective at its core,” on 8 May 2018, President Trump announced that the United States would withdraw from the Iran nuclear deal and begin re-imposing sanctions that were lifted pursuant to U.S. commitments under the agreement. Formally known as the Joint Comprehensive Plan of Action (JCPOA), the deal has been in effect since January 2016 and is the political agreement between the world’s major powers and Iran that cut off Iran’s path to a nuclear bomb in exchange for sanctions relief.
 
The announcement was accompanied by issuance of a Presidential memorandum ordering the Secretary of State to “take all appropriate steps to cease” U.S. participation in the JCPOA and directing the Secretaries of State and the Treasury to immediately take steps to re-impose all U.S. sanctions waived or lifted in connection with the JCPOA.
 
The Treasury Department’s Office of Foreign Assets Control (OFAC) simultaneously issued public guidance setting out a two-tiered wind-down schedule, with 90 and 180-day expirations “for activities involving Iran that were consistent with the U.S. sanctions relief specified in the JCPOA.” At the end of each wind-down period, 6 August and 4 November, 2018, respectively, certain sanctions that had been waived or lifted will be brought back into effect.
 
Critically, the re-imposition of sanctions will eliminate (1) opportunities for non-U.S. companies to engage in almost every key industry sector (e.g., energy and petrochemicals, banking and finance, insurance and reinsurance, shipping, and automotive) without potential sanctions exposure, (2) the ability of foreign subsidiaries of U.S. companies (or other non-U.S. entities “owned or controlled” by U.S. persons, such as 50/50 joint ventures) to engage in authorized business in Iran (pursuant to OFAC General License H), (3) OFAC approval of specific licenses for the sale or lease of commercial passenger aircraft (and parts and services) to Iranian airlines (such as Iran Air) that were not designated as Specially Designated Nationals (SDNs); and (4) OFAC’s general license for the importation of Iranian-origin foodstuffs and carpets.
 
Additionally, by 5 November 2018, OFAC “expects to move persons identified as meeting the definition of the terms ‘Government of Iran’ or ‘Iranian financial institution’ from the List of Persons Blocked Solely Pursuant to E.O. 13599 (the E.O. 13599 List) to the SDN List.” Effectively, parties that were SDNs in the past and were moved to the E.O. 13599 List in January 2016 will now be again re-designated as SDNs, creating exposure under secondary U.S. sanctions for non-U.S. persons who deal with them.
 
Practical Implications for Companies and Financial Institutions Engaging with Iran
 
In light of today’s announcement and the upcoming re-imposition of U.S. secondary sanctions on business activities with Iran, non-U.S. companies should immediately review any existing operations, contracts, loans, or other arrangements involving Iran to determine potential sanctions exposure (and whether there is a sufficiently robust sanctions exclusion clause); assess whether there is a need to wind down those operations due to the re-imposition of sanctions; and, if so, determine the appropriate wind-down steps and relevant wind-down period.
 
Foreign subsidiaries of U.S. companies that are engaging with Iran under General License H (GL H) should prepare for the elimination of GL H. Absent another path to conduct such activities without sanctions exposure, those subsidiaries will also need to urgently determine what steps are necessary to wind down operations. In 
FAQs issued in conjunction with the President’s announcement, OFAC stated that GL H will be revoked and replaced with a different wind-down authorization that will expire on 5 November 2018. OFAC stated that General License I (for certain activities involving civil aviation sector) will be revoked as well and replaced with a different wind- down authorization that will expire on 6 August 2018.
 
Finally, for companies engaged in business with Iran that will continue to be authorized after the snapback of sanctions (e.g., medical device sales), the re-designation of financial institutions that had been removed from the SDN List under the deal could present greater difficulties and risks in processing authorized payments. Businesses will need to reassess any authorized financial dealings that they continue to have with Iran.
 
Withdrawal Foreshadowed
 
President Trump’s decision to withdraw the U.S. from the JCPOA, while isolating the U.S. from key allies and delivering a significant blow to businesses engaged in Iran pursuant to JCPOA relief, was not a surprise. He has been foreshadowing the decision for several months, threatening in January 2018 that he would pull out of the deal and terminate the sanctions relief unless certain demands to supplement and enhance the JCPOA were met.
The President’s ultimatum sought to broaden the JCPOA to: (1) encompass Iran’s ballistic missile program; (2) extend Iran’s nuclear breakout period to at least one year; (3) require “anytime, anywhere” inspections of nuclear facilities; and (4) eliminate any sunset clauses. European officials expressed willingness to adopt the first three conditions, but resisted the elimination of the sunset clauses.
 
The real question is where we go from here. Iran’s response – whether it continues with the deal or opts to resume its nuclear program – may depend on how the other parties to the JCPOA conduct themselves. It is possible that the EU nations will attempt to offer Iran new economic incentives in exchange for continuing to fulfill its commitments and, in response to Tuesday’s announcement, they have already reiterated their commitment to the deal, including through a 
joint UK, German, and French statement and a 
statement from the EU’s High Representative for Foreign Affairs. The EU could also seek to force European companies not to comply with U.S. sanctions through a so- called “blocking regulation,” though no such action has yet been announced. Additionally, there are similar possibilities with Russia and China, also signatories to the JCPOA.
 
Finally, it is possible that the dual-pronged wind-down period could give European nations one last chance to reach a supplemental agreement with the United States that would meet President Trump’s demands and allow him to declare victory and back away from the re-imposition of sanctions. (Even the optimists among us would not dare to predict that Iran would sign-off on such a deal.) For now, however, the United States appears to be on a glide path toward eliminating all JCPOA sanctions relief.

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

COMM_a217.
The Export Compliance Journal: “
FLIR Systems Hit with $30 Million Fine in Major Deemed Export Compliance Case”
(Source: 
The Export Compliance Journal
, 3 May 2018.) 
 
FLIR Systems Inc., a company that makes infrared cameras and thermal imaging systems, was accused of violating the Arms Export Control Act (AECA) and the International Traffic in Arms Regulations (ITAR) after they shared ITAR-controlled defense items with dual-national employees from Iran, Iraq, Lebanon, and Cuba.
 
According to the State Department, the violations included “unauthorized exports of defense articles, including technical data; the unauthorized provision of defense services; violation of the terms of provisos or other limitations of license authorizations; and the failure to maintain specific records involving ITAR-controlled transactions.” [FN/1]
 
In addition, they also stood accused of retransferring ITAR-controlled technical data and the provision of defense services to multi-national individuals that come from restricted countries which they failed to report during the export compliant process.
 
The State Department and FLIR have officially reached a settlement requiring the company to pay a $30 million civil penalty. However, the fine will be reduced to $15 million on the condition that the funds be “used for Department-approved Consent Agreement remedial compliance measures.” [FN/2]
 
FLIR will also be required to hire an external Designated Official to oversee the Consent Agreement. This will result in an additional two external audits to test and improve upon its deemed exports procedures and existing export compliance program.
 
According to reports, FLIR willingly reported certain AECA and ITAR violations, acknowledged the severity of their violations, and was generally cooperative with the State Department’s review of their deemed exports and export compliance program.
 
“We accept responsibility for our actions leading to these penalties,” FLIR Systems Chief Executive Officer James Cannon said in a statement, noting that he is “fully committed to complying with U.S. export control laws.” [FN/3]
 
The State Department will not seek administrative debarment for FLIR due to the company’s willingness to cooperate with investigators.
 
Further Reading
 
Read more about the export compliance considerations surrounding deemed exports in 
Deemed Export Visitor Compliance: Five Tips for Rolling Out the Red Carpet
, and 
Beware of Elicitation: Gateway to Deemed Export Violations
.
 
——– 
  [FN/1] Consent agreement. United States Department of State, Bureau of Political-Military Affairs. Available 
here
. Accessed April 30.
  [FN/2] Ibid.
  [FN/3] FLIR Systems to pay $30 million to settle U.S. allegations: State Department. News Article. Reuters. Available 
here
. Accessed April 30, 3018.

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

COMM_318
M. Gonzalez, A. Hood & R. Matthews: “UK Sanctions After Brexit: Licensing and Exceptions”
(Source: 
Dechert LLP, 8 May 2018.) 
 
* Authors: Miriam Gonzalez, Esq.,
miriam.gonzalez@dechert.com; Andrew Hood, Esq.,
andrew.hood@dechert.com; and Roger Matthews, Esq.,
roger.matthews@dechert.com.  All of Dechert LLP, London.
 
After Brexit, while the UK is widely expected to remain closely aligned with EU sanctions, one area where the UK could offer a more business-friendly approach is the grant of licenses authorizing businesses to conduct activities that would otherwise be prohibited. A 
Policy Note published last week indicates that the UK Government’s plans in this respect are relatively limited, although with some tentative proposals towards a more purposive and flexible approach. [FN/1] 
 
Under the current EU framework, Member States’ sanctions authorities (in the UK, that is the Office of Financial Sanctions Implementation (OFSI) and the Export Control Joint Unit (ECJU)), do not have a full discretion to license (i.e. authorize) an otherwise prohibited act; they may only do so in the circumstances anticipated by the EU and set out in the relevant sanctions Regulation. Often these circumstances are quite tightly framed such that OFSI or ECJU can find itself having to refuse to issue a license to a business even in circumstances where it may otherwise have been minded to authorize the proposed act. Additionally, individual EU Member States cannot currently issue general licenses in relation to sanctions prohibitions. By contrast, the Office of Foreign Assets Control (OFAC) in the U.S. has a much wider power to issue licenses (general or individual) at its discretion.
 
Brexit offers the opportunity for the UK to take a broader, more business-friendly approach to licenses. The Sanctions and AML Bill, currently going through UK Parliament, leaves licensing powers to be defined in each of the individual sanctions laws which Ministers will make. The paper issued by the Foreign & Commonwealth Office on 1 May gives some insights into how these licensing powers will be framed:
 
  – the UK intends to use 
general licenses (i.e. licenses from which anyone can benefit in connection with activities that meet specified criteria) in a sanctions context. Currently the UK and EU only use general licenses in connection with exports of military and dual-use goods. But after Brexit they may also be used in a sanctions context, for example in relation to humanitarian aid, and for urgent or unforeseen issues;
  – in the context of dealings with 
designated persons and entities, the UK will empower OFSI to issue licenses in all the areas currently recognized by the EU (basic needs, legal fees, routine holdings/maintenance, extraordinary expenses, prior court orders, prior contracts, humanitarian activities and diplomatic activities) although with some tweaking as to the precise scope in some cases. However, the government recognizes that these categories of license should not be exhaustive; if there is a need for a further specific ground in response to a situation that arises that had not been anticipated when a sanctions regime was first established, the government will legislate for it on a case-by-case basis;
  – in the context of 
wider prohibitions on investment and financial activities, the UK intends to maintain the EU’s current licensing grounds (such as prior contracts and civilian projects);
  – similarly, in the context of 
restrictions on the export or movement of goods and the provision of services, the government proposes to employ the same licensing grounds that the EU currently uses, while noting that the specific exceptions and licensing grounds will depend on the scope and the context of each sanctions regime;
  – the government foresees the use after Brexit of 
transport licenses, recognizing, for example, the possibility of designated vessels needing to seek repairs in UK ports or for humanitarian reasons.
 
The proposed departures from the current EU licensing framework are quite limited, suggesting that the importance of close alignment with EU sanctions is prevailing. However greater use of general licenses has the potential to reduce the bureaucracy of individual license applications where possible, while the need for transport licenses may reflect a recognition that designations of vessels is likely to become a regular feature of certain sanctions regimes.
 
Perhaps surprisingly, the government does not appear to envisage giving OFSI or ECJU the power to issue individual licenses in unforeseen circumstances, providing merely that it will legislate on a case-by-case basis. This suggests that they expect this situation to arise only relatively rarely and that the obstacle of OFSI being unable to issues licenses due to the narrow formulations of the license categories is likely to continue even after Brexit.
———- 
  [FN/1] Sanctions and Anti-Money Laundering Bill – Policy note: Exceptions and Licenses, issued on 1 May 2018.

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

COMM_a4
19.
S.M.C. Kovarovics: “They’re Baaack: U.S. Nuclear Sanctions Against Iran” 

(Source: 
World Trade Controls, 8 May 2018.) 
 
* Author: Susan M.C. Kovarovics, Esq., Bryan Cave LLP, 
susan.kovarovics@bryancave.com, 202-508-6132.
 
On May 8, 2018, President Trump announced that the United States is pulling out of the Joint Comprehensive Plan of Action (“JCPOA”).
 
The announcement does not, as a matter of law, trigger the snap back of the sanctions that were lifted or waived as a result of implementation of the JCPOA on January 16, 2016. Nonetheless, it signals the imminent re-imposition of the nuclear sanctions against Iran, with all reinstatement to be complete no later than November 4, 2018.
 
What does this mean going forward?
 
  (1) Secondary sanctions will be back in effect following the relevant wind-down periods discussed below. Parties removed from the SDN List pursuant to implementation of the JCPOA will be returned to the SDN List. Parties who engage in dealings with the parties returned to the SDN List or that engage in other activities for which secondary sanctions had been lifted (e.g., dealing with Iran’s automotive and energy sectors) may become subject to secondary sanctions.
  (2) General License H will be revoked; OFAC will need to take specific action to revoke General License H, which revocation is expected to occur in the coming days. Non-US entities owned or controlled by US persons will again be subject to all restrictions of the Iranian Transactions and Sanctions Regulations (“ITSR”) that apply to US persons in accordance with § 560.215.
  (3) Commercial passenger aircraft related authorizations will cease to be available. The Statement of Licensing Policy for Activities Related to the Export or Re-export to Iran of Commercial Passenger Aircraft and Related Parts and Services (“SLP”) is no longer in effect. Licenses issued pursuant to this will be revoked after August 6, 2018. License applications currently pending under this licensing policy will be returned without action. General License I authorizing the entry into contingent or executory contracts for activities that were eligible for authorization pursuant to the SLP will also be revoked.
 
Our organization had previously resumed business activities with Iran post-JCPOA. Does this mean that we must immediately stop our activities or risk consequences under US sanctions?
 
  (1) Depending on the activities, the US government is implementing a 90 day wind-down period for certain activities that would otherwise trigger secondary sanctions under the US nuclear sanctions against Iran and a 180 day wind-down period for other such activities. The 90 day wind-down period will expire August 6, 2018; the 180 day wind-down period will expire November 4, 2018.
  (2) A 180 day wind-down period is in effect for activities already underway pursuant to General License H. All activities must cease by November 4, 2018.
  (3) A 90 day wind-down period is in effect for activities pursuant to General License I and to specific licenses issued pursuant to the SLP. The wind-down period expires August 6, 2018.
 
For all of these wind-down periods, the details have yet to be published. In all cases, the US government has indicated that the goal of the wind-down periods are to allow for the orderly wind-down of activities that were previously undertaken consistent with US sanctions against Iran. Although it appears some allowances may be made for undertakings committed to prior to May 8, 2018, which cannot be completed by non-US parties prior to the end of the wind-down period, there is clearly an emphasis on having parties wrap up all activities within the applicable wind-down period.
 
Are the ag/med general licenses affected by the reimposition of the sanctions?
 
No. The general licenses that are contained in the ITSR at § 560.530 and § 560.532 with respect to the export and reexport of agricultural commodities, medicine and medical devices to Iran or the Government of Iran and payments related thereto remain in effect. US parties and their non-US subsidiaries may continue to engage in activities authorized by these general licenses.
 
More details are expected to follow as the US Government takes specific actions to implement yesterday’s withdrawal from the JCPOA and re-imposition of nuclear sanctions against Iran.

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

TEEX/IM TRAINING EVENTS & CONFERENCES

TE_a1
20. 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
21. 
List of Approaching Events
(Sources: Editor and Event Sponsors)

Published every Friday or last publication day of the week, o
ur overview of Approaching Events is organized to list c
ontinuously available training, training events, s
eminars & conferences, and 
webinars. 

Please, submit your event announcement to John Bartlett, Events & Jobs Editor (email: 
jwbartlett@fullcirclecompliance.eu
), composed in the below format:

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

#” = New or updated listing  

 
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
 
Seminars and Conferences
 

* May 14-15: Washington, D.C.; “
BIS Update 2018 Conference on Export Controls and Policy
“; BIS
* 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 16-17: 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: Houston, TX; ”
Classification: How to Classify Parts“; Amber Road

* 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: 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: 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 29-31: Hong Kong; “Hong Kong Summit on Economic Sanctions and Compliance Enforcement“; American Conference Institute
* 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 7: Chicago, IL; “ITAR Boot Camp“; American Conference Institute
* 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: 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 

* June 12-13; Stockholm, Sweden; “Trade Compliance Nordics“; C5 Group
* 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: Boston, MA; “Export Regulatory Compliance Update“; Massachusetts Export Center
* 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: Los Angeles, CA; “Certified Classification Specialist (CCLS)“; Global Trade Academy
 
* Jun 20-21: McLean, VA; “ITAR Fundamentals“; FD Associates
* 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 10: Chicago, IL; “Duty Drawback Specialist – Certification“; Global Trade Academy
* 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 16-18: National Harbor, Maryland; “2018 Summer Basics Conference“; Society for International Affairs
* Jul 17: Los Angeles, CA; “Advanced Classification of Plastics and Rubber“; Global Trade Academy
 
* 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)

Webinars

May 14: Commodity Webinar; “May Series: Ribbons and Trimmings“; National Commodity Specialist Division (NCSD) 
May 15: Commodity Webinar; “May Series: Hair Accessories of Heading 9615“; National Commodity Specialist Division (NCSD) 

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 17: Webinar; ”
International Trade and Customs Landscape in APAC“; Integration Point

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 23: Commodity Webinar; “May Series: Coated and Down Garments“; National Commodity Specialist Division (NCSD) 

May 24: Commodity Webinar; “May Series: Plywood, Veneered Panels, and Similar Laminated Wood“; National Commodity Specialist Division (NCSD)
May 29: Commodity Webinar; “May Series: Cameras of Subheading 8525.80“; National Commodity Specialist Division (NCSD) 
* May 30: Webinar; “Recent Developments in EU Export Controls and Sanctions“; Women In International Trade

May 30: Commodity Webinar; “May Series: Bitcoin Miners“; National Commodity Specialist Division (NCSD)  
* 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 6: Commodity Webinar; “June Series: Self-Adhesives of Heading 3919“; National Commodity Specialist Division (NCSD) 
* Jun 7: Webinar; “Resource Guide on Trade Actions“; NAFTZ
* Jun 7: Webinar; “The Essentials and Challenges of Exporting Firearms and Ammunition“; ECTI; 540-433-3977
* 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
Jun 13: Commodity Webinar; “June Series: Ornaments, Boxes, and Furniture of Heading 4420“; National Commodity Specialist Division (NCSD) 

Jun 14: Commodity Webinar; “June Series: Medical Instruments and Appliances“; National Commodity Specialist Division (NCSD) 

Jun 18: Commodity Webinar; “June Series: Heating and Cooling Treatment Facilities“; National Commodity Specialist Division (NCSD) 
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 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) 

Jul 7: Commodity Webinar; “July Series: What’s a Toy?“; National Commodity Specialist Division (NCSD) 
Jul 10: Commodity Webinar; “July Series: Food Incorporating Alcohol“; National Commodity Specialist Division (NCSD) 

* 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 17: Commodity Webinar; “July Series: Other Articles of Steel“; National Commodity Specialist Division (NCSD)

* Jul 19: Commodity Webinar; “July Series: Tubes and Pipes of Iron or Steel“; National Commodity Specialist Division (NCSD)

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

ENEDITOR’S NOTES

EN_a122
. Bartlett’s Unfamiliar Quotations

(Source: Editor)

Isaac D’Israeli (11 May 1766 – 19 Jan 1848; was a British writer, scholar and man of letters. He is best known for his essays, his associations with other men of letters, and as the father of British Prime Minister Benjamin Disraeli.)
  – “The wisdom of the wise, and the experience of ages, may be preserved by quotation.”
 
Florence Nightingale (12 May 1820 – 13 Aug 1910; was an English social reformer and statistician, and the founder of modern nursing. Nightingale came to prominence while serving as a manager of nurses trained by her during the Crimean War, where she organized the tending to wounded soldiers.)
  – “I attribute my success to this – I never gave or took any excuse.”
 
Friday funnies: 
 
* Subject: Why I like retirement
 
Question: What’s the biggest gripe of retirees?
Answer:   There is not enough time to get everything done.
 
Question: Why don’t retirees mind being called Seniors?
Answer:   The term comes with a discount.
 
Question: Why are retirees so slow to clean out the basement, attic or 
                    garage?
Answer:   They know that as soon as they do, one of their adult kids will 
                    want to store stuff there.
 
Question: What’s the biggest advantage of going back to school as a 
                    retiree?
Answer:   If you cut classes, no one calls your parents.
 
Question: What do you do all week?
Answer:   Monday through Friday, NOTHING. Saturday and Sunday, I rest.

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

EN_a223. 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.

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

EN_a324
. 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.

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

* 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 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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