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18-0525 Friday “Daily Bugle”

18-0525 Friday “Daily Bugle”

Friday, 25 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
. [N.B. The Daily Bugle will not be released on Monday, 28 May 2018, a U.S. Federal Holiday.]

  1. DHS/CBP Welcomes Feedback Concerning Form 4315, “Application for Allowance in Duties”
  2. DHS/CBP Welcomes Feedback Concerning Form 4609, “Petition for Remission or Mitigation of Forfeitures and Penalties Incurred”
  3. ITA Announces Investigation No. 332-567, “Generalized System of Preferences: Possible Modifications, 2017 Review”
  1. Items Scheduled for Publication in Future Federal Register Editions 
  2. Commerce/BIS: (No new postings.) 
  3. DHS/CBP Announces Upcoming ACE Enhancements
  4. DoD/DSS Announces Release of DAAPM 1.3
  5. State/DDTC: (No new postings.)
  6. Treasury/OFAC Publishes 2 New FAQS Related to Ukraine/Russia
  7. White House Publishes Directive Aimed at Streamlining Regulations on Commercial Use of Space; Review of Export Licensing Amongst Focus Areas
  8. Australia DEC Closed on 28 May
  9. UK DIT/EJCU Publishes Guidance Concerning Arms Embargoes and Other Restrictions
  1. Expeditors News: “CBP Releases Process for Submitting Imports of Products Excluded from Duties on Imports of Steel or Aluminum”
  2. National Defense Magazine: “Pentagon Moving to Expedite Weapons Exports to Allied Nations”
  3. The New York Times: “Trump Administration Tells Congress It Has a Deal to Revive ZTE”
  4. Reuters: “Canada Blocks Chinese Takeover of Aecon on National Security Grounds”
  5. Reuters: “Exclusive: U.S. Bill Would Force Tech Companies to Disclose Foreign Software Probes”
  6. Space News: “New Policy Directive Implements Commercial Space Regulatory Reforms”
  7. ST&R Trade Report: “Automobiles, Auto Parts Could Face Increased Tariffs, Quotas from New 232 Investigation”
  8. ST&R Trade Report: “Trading Partners Move Toward Retaliation for Steel and Aluminum Tariffs”
  1. B. Valero: “The Change We Need in EU Arms Export Control”
  2. B.J. Fleming, B.D. Linney & C. Griffin: “Trade Compliance Flash: OFAC Grants Further Relief from Russia Sanctions; Venezuela Sanctions Expanded”
  3. Gary Stanley’s EC Tip of the Day
  1. FCC Presents “Summer Course U.S. Export Controls: An Introduction to the ITAR & EAR”, 12 Jun in Bruchem, the Netherlands
  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 (17 May 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
.
DHS/CBP Welcomes Feedback Concerning Form 4315, “Application for Allowance in Duties”

(Source: 
Federal Register, 25 May 2018.) [Excerpts.] 
 
83 FR 24325-24326: Agency Information Collection Activities: Application for Allowance in Duties
 
* AGENCY: U.S. Customs and Border Protection (CBP), Department of Homeland Security.
* ACTION: 30-Day notice and request for comments; extension of an existing collection of information.
* SUMMARY: The Department of Homeland Security, U.S. Customs and Border Protection will be submitting the following information collection request to the Office of Management and Budget (OMB) for review and approval in accordance with the Paperwork Reduction Act of 1995 (PRA). The information collection is published in the Federal Register to obtain comments from the public and affected agencies.
* DATES: Comments are encouraged and will be accepted (no later than June 25, 2018) to be assured of consideration.
* ADDRESSES: Interested persons are invited to submit written comments on this proposed information collection to the Office of Information and Regulatory Affairs, Office of Management and Budget. Comments should be addressed to the OMB Desk Officer for Customs and Border Protection, Department of Homeland Security, and sent via electronic mail to 
dhsdeskofficer@omb.eop.gov. … 
* SUPPLEMENTARY INFORMATION: CBP invites the general public and other Federal agencies to comment on the proposed and/or continuing information collections pursuant to the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.). This proposed information collection was previously published in the Federal Register (83 FR 824) on January 8, 2018, allowing for a 60-day comment period. This notice allows for an additional 30 days for public comments. This process is conducted in accordance with 5 CFR 1320.8. Written comments and suggestions from the public and affected agencies should address one or more of the following four points: (1) Whether the proposed collection of information is necessary for the proper performance of the functions of the agency, including whether the information will have practical utility; (2) the accuracy of the agency’s estimate of the burden of the proposed collection of information, including the validity of the methodology and assumptions used; (3) suggestions to enhance the quality, utility, and clarity of the information to be collected; and (4) suggestions to minimize the burden of the collection of information on those who are to respond, including through the use of appropriate automated, electronic, mechanical, or other technological collection techniques or other forms of information technology, e.g., permitting electronic submission of responses. The comments that are submitted will be summarized and included in the request for approval. All comments will become a matter of public record.
 
Overview of This Information Collection
 
  – Title: Application for Allowance in Duties.
  – OMB Number: 1651-0007.
  – Form Number: CBP Form 4315.
  – Action: CBP proposes to extend the expiration date of this information collection with no change to the burden hours or to Form 4315.
  – Type of Review: Extension (without change).
  – Abstract: CBP Form 4315, “Application for Allowance in Duties,” is submitted to CBP in instances of claims of damaged or defective imported merchandise on which an allowance in duty is made in the liquidation of the entry. The information on this form is used to substantiate an importer’s claim for such duty allowances. CBP Form 4315 is authorized by 19 U.S.C. 1506 and provided for by 19 CFR 158.11, 158.13 and 158.23. This form is accessible 
here. … 
 
  Dated: May 22, 2018.
Seth D. Renkema, Branch Chief, Economic Impact Analysis Branch U.S. Customs and Border Protection.

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EXIM_a2

2
.
DHS/CBP Welcomes Feedback Concerning Form 4609, “Petition for Remission or Mitigation of Forfeitures and Penalties Incurred”

(Source: 
Federal Register, 25 May 2018.) [Excerpts.] 
 
83 24328: Agency Information Collection Activities: Petition for Remission or Mitigation of Forfeitures and Penalties Incurred
 
* AGENCY: U.S. Customs and Border Protection (CBP), Department of Homeland Security.
* ACTION: 30-Day notice and request for comments; extension of an existing collection of information.
* SUMMARY: The Department of Homeland Security, U.S. Customs and Border Protection will be submitting the following information collection request to the Office of Management and Budget (OMB) for review and approval in accordance with the Paperwork Reduction Act of 1995 (PRA). The information collection is published in the Federal Register to obtain comments from the public and affected agencies. Comments are encouraged and will be accepted (no later than June 25, 2018) to be assured of consideration.
* ADDRESSES: Interested persons are invited to submit written comments on this proposed information collection to the Office of Information and Regulatory Affairs, Office of Management and Budget. Comments should be addressed to the OMB Desk Officer for Customs and Border Protection, Department of Homeland Security, and sent via electronic mail to 
dhsdeskofficer@omb.eop.gov. … 
* SUPPLEMENTARY INFORMATION: CBP invites the general public and other Federal agencies to comment on the proposed and/or continuing information collections pursuant to the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.). This proposed information collection was previously published in the Federal Register (83 FR 826) on January 8, 2018, allowing for a 60-day comment period. This notice allows for an additional 30 days for public comments. This process is conducted in accordance with 5 CFR 1320.8. Written comments and suggestions from the public and affected agencies should address one or more of the following four points: (1) Whether the proposed collection of information is necessary for the proper performance of the functions of the agency, including whether the information will have practical utility; (2) the accuracy of the agency’s estimate of the burden of the proposed collection of information, including the validity of the methodology and assumptions used; (3) suggestions to enhance the quality, utility, and clarity of the information to be collected; and (4) suggestions to minimize the burden of the collection of information on those who are to respond, including through the use of appropriate automated, electronic, mechanical, or other technological collection techniques or other forms of information technology, e.g., permitting electronic submission of responses. The comments that are submitted will be summarized and included in the request for approval. All comments will become a matter of public record.
 
Overview of This Information Collection
 
  – Title: Petition for Remission or Mitigation of Forfeitures and Penalties Incurred.
  – OMB Number: 1651-0100.
  – Form Number: CBP Form 4609.
  – Action: CBP proposes to extend the expiration date of this information collection with no change to the burden hours or to the information collected.
  – Type of Review: Extension (without change).
  – Abstract: CBP Form 4609, Petition for Remission or Mitigation of Forfeitures and Penalties Incurred, is completed and filed with the CBP FP&F Officer designated in the notice of claim by individuals who have been found to be in violation of one or more provisions of the Tariff Act of 1930, or other laws administered by CBP. Persons who violate the Tariff Act are entitled to file a petition seeking mitigation of any statutory penalty imposed or remission of a statutory forfeiture incurred. This petition is submitted on CBP Form 4609. The information provided on this form is used by CBP personnel as a basis for granting relief from forfeiture or penalty. CBP Form 4609 is authorized by 19 U.S.C. 1618 and provided for by 19 CFR 171.1. It is accessible 
here. … 
 
  Dated: May 22, 2018.
Seth D. Renkema, Branch Chief, Economic Impact Analysis Branch, U.S. Customs and Border Protection.

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EXIM_a3

3
.
ITA Announces Investigation No. 332-567, “Generalized System of Preferences: Possible Modifications, 2017 Review”

(Source: 
Federal Register, 25 May 2018.) [Excerpts.] 
 
83 FR 24342-24345: Generalized System of Preferences: Possible Modifications, 2017 Review
 
* AGENCY: United States International Trade Commission.
* ACTION: Notice of institution of investigation and scheduling of public hearing.
* SUMMARY: Following receipt of a request on May 18, 2018, from the United States Trade Representative (USTR), the U.S. International Trade Commission (Commission) instituted investigation No. 332-567, Generalized System of Preferences: Possible Modifications, 2017 Review, for the purpose of providing advice and information relating to the possible designation of additional articles, removal of articles, waiver of competitive need limitations, redesignation of articles, and denial of a de minimis waiver.
* DATES: 
  – June 4, 2018: Deadline for filing requests to appear at the public 
hearing.
  – June 7, 2018: Deadline for filing pre-hearing briefs and statements.
  – June 14, 2018: Public hearing.
  – June 21, 2018: Deadline for filing post-hearing briefs and statements.
  – June 21, 2018: Deadline for filing all other written submissions.
  – September 7, 2018: Transmittal of Commission report to the USTR.
* ADDRESSES: All Commission offices, including the Commission’s hearing rooms, are located in the United States International Trade Commission Building, 500 E Street SW, Washington, DC. All written submissions should be addressed to the Secretary, United States International Trade Commission, 500 E Street SW, Washington, DC 20436. The public record for this investigation may be viewed on the Commission’s electronic docket (EDIS) 
here. … 
* FOR FURTHER INFORMATION CONTACT: … In his letter, the USTR requested the advice and information described [
here]. … 
  – Public Hearing: A public hearing in connection with this investigation will be held at the U.S. International Trade Commission Building, 500 E Street SW, Washington, DC, beginning at 9:30 a.m. on June 14, 2018. Requests to appear at the public hearing should be filed with the Secretary no later than 5:15 p.m., June 4, 2018. All pre-hearing briefs and statements should be filed no later than 5:15 p.m., June 7, 2018; and all post-hearing briefs and statements should be filed no later than 5:15 p.m., June 21, 2018. … 
 
  By order of the Commission.
  Issued: May 23, 2018.

Lisa Barton, Secretary to the Commission.

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OGSOTHER GOVERNMENT SOURCES

OGS_a14
. Items Scheduled for Publication in Future Federal Register Editions
 

(Source:
Federal Register)
[No items of interest noted today.]

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

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OGS_3
6.
DHS/CBP Announces Upcoming ACE Enhancements 

(Source: 
CSMS# 18-000360, 24 May 2018.) 
 
In February 2018, U.S. Customs and Border Protection (CBP) deployed the last of the seven major scheduled core Automated Commercial Environment (ACE) deployments, and all phases of cargo processing are now in ACE. Looking ahead, CBP is focused on sustaining all deployed ACE capabilities and ensuring ACE operates as a highly available and reliable system. 
 
In addition to funds for sustaining core ACE, CBP has received $30M in the Fiscal Year (FY) 2018 appropriation for enabling ACE enhancements. CBP’s strategic goals and priorities are informed by the Customs Commercial Operations Advisory Committee (COAC) and through active dialog with CBP, industry, government agency and congressional stakeholders. The resulting CBP trade mission agenda includes program initiatives for advancing trade facilitation, security and enforcement objectives. There is an ongoing demand for ACE capability enhancements, and CBP follows a governance process to prioritize funding for initiative automation based on evaluation criteria that account for the interests of the trade community, the potential to reduce burden on the trade community, impact to CBP users, the nexus to existing and emerging priorities, and workload efficiency and operational improvement opportunities. 
 
FY 2018 ACE enhancement funding will be used for the following (refer to 
this link for additional details):
 
  – Section 321/Trade Facilitation and Trade Enforcement Act enabling automation
  – Electronic CBP Form 5106
  – Modernizing Foreign Trade Zone (e214) process in ACE
  – Creation of Unique Identifiers for Centers of Excellence and Expertise 
  – Transitioning to Broker National Permit 
  – Modernizing vessel management, via Vessel Agent Account Type
  – Streamlining and modernizing truck processing, via a non-intrusive inspection program
  – Updating Generalized System of Preferences (GSP)
  – Manifest update to include shipper phone number
  – Electronic vessel manifest confidentiality request
 
More information is forthcoming on these ACE enhancements, including a development and deployment schedule. CBP will engage the trade community through the Trade Support Network to establish workgroups to refine trade-facing technical requirements and implementation plans.
 
Please continue to check cbp.gov/ace for the latest information, and please remember to sign up for CSMS to receive updates (
https://csms.cbp.gov/). Additional details can be found in the ACE Enhancement Announcement at the link 
here

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

OGS_a47. 
DoD/DSS Announces Release of DAAPM 1.3

(Source: 
DoD/DSS, 24 May 2018.) 

The DSS NISP Authorization Office (NAO) is announcing the upcoming release of the DSS Assessments and Authorization Process Manual (DAAPM) 1.3 in its continuing effort to provide users with the most up-to-date requirements of the Risk Management Framework (RMF) process. This version update revolves around two specific areas of interest and goes into effect on June 4, 2018. Version 1.3 supersedes all previous versions of the DAAPM.

First area of interest is the inclusion of a recommended 90 day submission period for RMF packages. This change is located at the beginning of Section 6, which has been renamed to “Assessment and Authorization Implementation Guidance.” The rationale for the change is to ensure that both Industry and DSS allow time to sufficiently work the packages before and after submission.


Next area of interest is defining who (cleared Industry or DSS) has responsibility for each step of the process. Contained in Section 6 is a walk-through of each RMF step with tasks and who is responsible for those tasks. In summary, Industry is responsible for Step 1, Step 2, Step 3, the first part of Step 4 and the first part of Step 6. DSS is responsible for the second part of Step 4, Step 5 and the second part of Step 6. Additionally, the flowchart in Section 5 is updated to reflect ownership of each step. Finally, the Concurrence Form has been eliminated. The intent of these updates is to eliminate confusion.

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(Source: 
Treasury/OFAC, 25 May 2018.)
 
Today, the Department of the Treasury’s Office of Foreign Assets Control (OFAC) is publishing 
two new Frequently Asked Questions (FAQs) to provide guidance on (i) U.S persons’ ability to receive payments of principal and interest from blocked persons listed in General Licenses (GLs) 
12C
14, and 
15 for a preexisting loan or bond, and (ii) the sanctions implications for a foreign company paying dividends to a blocked person who is a minority shareholder.

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

(Source: 
The White House, 25 May 2018.) [Excerpts.] 
 
SUBJECT: Streamlining Regulations on Commercial Use 
of Space
 
Section 1. Policy. 
 It is the policy of the executive branch to be prudent and responsible when spending taxpayer funds, and to recognize how government actions, including Federal regulations, affect private resources. It is therefore important that regulations adopted and enforced by the executive branch promote economic growth; minimize uncertainty for taxpayers, investors, and private industry; protect national security, public-safety, and foreign policy interests; and encourage American leadership in space commerce.
 
Sec. 2. Launch and Re-entry Licensing. 
  (a) No later than February 1, 2019, the Secretary of Transportation shall review regulations adopted by the Department of Transportation that provide for and govern licensing of commercial space flight launch and re-entry for consistency with the policy set forth in section 1 of this memorandum and shall rescind or revise those regulations, or publish for notice and comment proposed rules rescinding or revising those regulations, as appropriate and consistent with applicable law.
  (b) Consistent with the policy set forth in section 1 of this memorandum, the Secretary of Transportation shall consider the following:
    (i) requiring a single license for all types of commercial space flight launch and re-entry operations; and
    (ii) replacing prescriptive requirements in the commercial space flight launch and re-entry licensing process with performance-based criteria.
  (c) In carrying out the review required by subsection (a) of this section, the Secretary of Transportation shall coordinate with the members of the National Space Council.
  (d) The Secretary of Defense, the Secretary of Transportation, and the Administrator of the National Aeronautics and Space Administration shall coordinate to examine all existing U.S. Government requirements, standards, and policies associated with commercial space flight launch and re-entry operations from Federal launch ranges and, as appropriate and consistent with applicable law, to minimize those requirements, except those necessary to protect public safety and national security, that would conflict with the efforts of the Secretary of Transportation in implementing the Secretary’s responsibilities under this section. … 
 
Sec. 4. Reorganization of the Department of Commerce. 
  (a) To the extent permitted by law, the Secretary of Commerce shall consolidate in the Office of the Secretary of Commerce the responsibilities of the Department of Commerce with respect to the Department’s regulation of commercial space flight activities.
  (b) Within 30 days of the date of this memorandum, the Secretary of Commerce shall transmit to the Director of the Office of Management and Budget a legislative proposal to create within the Department of Commerce an entity with primary responsibility for administering the Department’s regulation of commercial space flight activities. … 
 
Sec. 6. Review of Export Licensing Regulations. 
 The Executive Secretary of the National Space Council, in coordination with the members of the National Space Council, shall:
  (a) initiate a review of export licensing regulations affecting commercial space flight activity;
  (b) develop recommendations to revise such regulations consistent with the policy set forth in section 1 of this memorandum and with applicable law; and
  (c) submit such recommendations to the President, through the Vice President, no later than 180 days from the date of this memorandum. … 
 
Donald J. Trump

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OGS_a8
11.


Australia DEC Closed on 28 May

(Source: 
Australia DEC, 25 May 2018.) 
 
Australia Defense Export Controls (DEC) will be closed Monday, 28th of May 2018 for an ACT Public Holiday. Please note that applications cannot be processed during this time. DEC will re-open on Tuesday, 29th of May 2018.

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OGS_a9
12.


UK DIT/EJCU Publishes Guidance Concerning Arms Embargoes and Other Restrictions

(Source: 
UK DIT/EJCU, 25 May 2018.) 
 
The Export Control Joint Unit (EJCU) of the UK Department of International Trade (DIT) has published a guidance concerning UK’s current arms embargoes and other restrictions. 
 
The guidance includes details of arms embargoes, trade control restrictions, defense export policies and restrictions on terrorist organizations. It is available 
here.

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NWSNEWS

(Source: 
Expeditors News, 24 May 2018.) 
 
On May 21, 2018, U.S. Customs and Border Protection (CBP) posted the process for submitting imports of products excluded from duties on imports of steel or aluminum in Cargo Systems Messaging Service (CSMS) #18-000352.
 
CBP instructs importers and filers to add either STL for steel mill products or ALU for aluminum products, along with the last six digits of the docket number, to the Importer’s Additional Declaration Detail on the entry summary. CBP reminds importers and filers that, “only products from importer(s) designated in the product exclusion approved by the DOC are eligible for the exclusion from the Section 232 measures.” Importers may claim Generalized System of Preferences or African Growth and Opportunity Act on goods that are eligible for those duty preferences once the products are excluded.
 
The functionality will become available on June 1, 2018 in CBP’s Automated Commercial Environment, and will be retroactive for any exclusions approved by the Department of Commerce prior to June 1, 2018 by filing a Post Summary Correction (PSC). CBP directs questions related to Section 232 filing requirements to 
traderemedy@cbp.dhs.gov.
 
The CSMS may be found 
here
.

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

 
The Defense Department is implementing a series of initiatives aimed at expediting weapons sales to foreign partners, said the undersecretary of defense for acquisition and sustainment May 23.
 
One of the Pentagon’s top priorities is to better streamline the foreign military sales process, said Ellen Lord during remarks at the National Defense Industrial Association’s Special Operations Forces Industry Conference in Tampa, Florida.
 
Lord’s office wants to “promote allied readiness by enhancing military capacity through targeting improvements in foreign military sales,” she said.
 
The effort aligns with Secretary of Defense Jim Mattis’ push to strengthen alliances and partnerships, she said.
 
  “History is very clear – nations with strong allies thrive while those without them decline,” Lord said. “Interoperability underpins this line of effort as it is a priority for operational concepts, modular force elements, communications, information sharing and weapon systems.”
 
One way to get at the issue is through streamlining the FMS process that is often bogged down with unnecessary red tape, she said.
 
  “This is something that hits pretty close to home with me having been in industry for 33 years and going to international air shows, talking with international partners and allies who wanted U.S. technology,” she said. “They believed it was the premier technology, but we could not sell it to them because it was taking so long.”
 
Some of those nations eventually chose to purchase weapons from other countries.
 
Foreign officials would say, “We’re going to go with the Russian alternative, we’re going to go with the Chinese alternative because we know we can get it quickly. We know that it might fail 80 to 90 percent of the time, but we will have something,” Lord said. “That’s a missed opportunity for the U.S. and we’re going to make sure we do everything possible to improve upon that.”
 
Lord’s office is encouraging exportability to be baked into defense industry products from the start. It is also embarking on an effort to better catalog common FMS customizations that countries often request.
 
  “We’re cataloging and pricing the most common features that are used to customize a system, whether that be a helicopter or anything else,” Lord said. Doing so could speed up awards to around 30 days in some cases, she added.
 
The effort is expected to be completed by the end of this year, she said. One of the first programs being reviewed under this initiative is the UH-60 Black Hawk helicopter, she noted.
 
The Pentagon is also looking at other ways to take down roadblocks to successful international sales, Lord said. The fiscal year 2017 National Defense Authorization Act included language that required all FMS contracts to be firm-fixed price, she noted.
 
  “This is significantly slowing a process that we want to speed up,” she said. “We need to have the flexibility to use the right contract type for the right effort.”
 
President Donald Trump’s national security presidential memorandum regarding U.S. conventional arms transfer policy, which was released in April, is intended to facilitate exports, she noted.
 
This is “something that many of us have been working on for many years,” Lord said. “The policy calls for an overhaul of U.S. arms export rules meant to better align policy with national and economic security interests and to make the export process more streamlined and predictable.”
 
If federal agencies can collectively and effectively implement these initiatives, it will increase the number of international sales agreements and, “just as importantly, quickly get those customers on contract so that we are competitive in the global marketspace,” Lord said.
 
Trump directed federal agencies to develop an implementation plan for his new arms sales policies within 60 days of the release of his memorandum.

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NWS_ax
15.
The New York Times: “Trump Administration Tells Congress It Has a Deal to Revive ZTE”
(Source: The New York Times, 25 May 2018.) [Excerpts.] 
 
The Trump administration has told lawmakers it has reached a deal that would keep the Chinese telecom firm ZTE alive, a person familiar with the matter said. The move could allow trade negotiations with China to move forward, but would probably provoke an intense backlash in Congress.
 
Under the agreement brokered by the Commerce Department, ZTE would pay a substantial fine, hire American compliance officers to be placed at the firm and make changes to its current management team.
 
In return, the Commerce Department would lift a so-called denial order that is currently preventing the company from buying American products, the person said.
 
The move would allow ZTE to once again begin doing business with American companies, including Qualcomm, the chipmaker based in San Diego that is a key ZTE supplier. The Chinese company was recently banned from buying American technology components for seven years as punishment for violating United States sanctions against Iran and North Korea. … 

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

(Source: 
Reuters, 24 May 2018.) 
 
Canada has blocked a proposed C$1.51 billion (US$1.18 billion) takeover of construction company Aecon by a Chinese state builder on national security grounds, underscoring rising wariness of Chinese firms buying up assets in Western countries.
 
Aecon’s takeover by overseas investment and financing arm of China Communications Construction Co Ltd (601800.SS) was scheduled to close in February. But this was delayed after Canada extended a national security review.
 
Aecon, which has helped build Canadian landmarks including the CN Tower and the Saint Lawrence Seaway, saw its shares tumble 15 percent to a 10-month low on the Toronto Stock Exchange on Thursday.
 
The Canadian government has now ordered CCCC International Holding Ltd not to implement the proposed investment to protect national security, Canadian Innovation Minister Navdeep Bains said in a statement on Wednesday.
 
  “Our government is open to international investment that creates jobs and increases prosperity, but not at the expense of national security,” Bains said.
 
Canadian Prime Minister Justin Trudeau said earlier his government would closely monitor security issues when it decided whether to allow the deal, examining the implications for intellectual property protections.
 
China’s foreign ministry said it hoped Canada could “abandon its prejudices” and provide a level playing field for Chinese enterprises in response to a question about the Aecon deal.
 
  “In principle, China always opposes the politicization of this kind of trade and investment activity and we oppose the mistaken method of carrying out political interference on the basis of so-called national security reasons,” ministry spokesman Lu Kang said on Thursday.
 
Aecon said it was disappointed with the government’s decision and was no longer pursuing a sale process.
 
  “We believe … uncertainty around the company’s future strategic direction, particularly with a CEO search underway, is likely to weigh on share prices substantially,” AltaCorp Capital analyst Chris Murray said.
 
An executive from CCCC’s investor relations team in Beijing told Reuters the company had yet to receive relevant documents from the Canadian government.
 
Ottawa’s move comes as Canada is in exploratory trade talks with China as the country seeks to diversify its export markets.
 
Chinese interests in overseas assets has worried governments elsewhere such as in Denmark, whose officials have expressed concern over Greenland courting Chinese firms, including CCCC, to expand three airports.
 
The Committee on Foreign Investment in the United States (CFIUS), which scrutinizes foreign purchases of U.S. assets to protect national security interests, has also been tightening scrutiny of Chinese companies’ acquisitions of American firms.
 
Earlier this month, Chinese conglomerate HNA Group dropped its bid for most of SkyBridge Capital.
 
In January, Ant Financial’s plan to acquire U.S. money transfer company MoneyGram International collapsed after CFIUS rejected it over national security concerns.
 
U.S. President Donald Trump has also blocked microchip maker Broadcom’s $117 billion bid to buy Qualcomm on national security grounds, ending what would have been the technology industry’s biggest deal ever amid concerns that it would give China the upper hand in mobile communications.

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(Source: 
Reuters, 24 May 2018.) [Excerpts.] 
 
U.S. tech companies would be forced to disclose if they allowed American adversaries, like Russia and China, to examine the inner workings of software sold to the U.S. military under proposed legislation, Senate staff told Reuters on Thursday.
 
The bill, approved by the Senate Armed Services Committee on Thursday, comes after a year-long Reuters investigation found software makers allowed a Russian defense agency to hunt for vulnerabilities in software that was already deeply embedded in some of the most sensitive parts of the U.S. government, including the Pentagon, the Federal Bureau of Investigation and intelligence agencies.
 
Security experts say allowing Russian authorities to conduct the reviews of internal software instructions – known as source code – could help Russia find vulnerabilities and more easily attack key systems that protect the United States.
 
The new source code disclosure rules were included in Senate version of the National Defense Authorization Act, the Pentagon’s spending bill, according to staffers of Democratic Senator Jeanne Shaheen.
 
Details of bill, which passed the committee 25-2, are not yet public. And the legislation still needs to be voted on by the full Senate and reconciled with a House version of the legislation before it can be signed into law by President Donald Trump.
 
If passed into law, the legislation would require companies that do business with the U.S. military to disclose any source code review of the software done by adversaries, staffers for Shaheen told Reuters. If the Pentagon deems a source code review a risk, military officials and the software company would need to agree on how to contain the threat. It could, for example, involve limiting the software’s use to non-classified settings.
 
The details of the foreign source code reviews, and any steps the company agreed to take to reduce the risks, would be stored in a database accessible to military officials, Shaheen’s staffers said. For most products, the military notification will only apply to countries determined to be cybersecurity threats, such as Russia and China.
 
Shaheen has been a key voice on cybersecurity in Congress. The New Hampshire senator last year led successful efforts in Congress to ban all government use of software provided by Moscow-based antivirus firm Kaspersky Lab, amid allegations the company is linked to Russian intelligence. Kaspersky denies such links. …  

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

(Source: 
Space News, 24 May 2018.) [Excerpts.] 
 
A new policy President Trump signed May 24 will implement a series of regulatory reforms to support commercial space recommended by the National Space Council earlier this year.
 
Space Policy Directive (SPD) 2, signed by the president in a private Oval Office ceremony, includes several sections to carry out streamlining of launch and remote sensing regulations, creation of a “one-stop-shopping” office for commercial space, and reviews of radiofrequency and export control policy. … 
 
A final section of the policy directs the National Space Council to review export control regulations regarding commercial spaceflight activities and provide recommendations within 180 days.
 
The policy closely follows the recommendations from the February meeting of the National Space Council. However, White House officials, speaking on background, said they don’t expect immediate changes as a result of the policy since many of the changes, like changes to regulations, will take months to implement through standard rulemaking processes. … 

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

 
The Department of Commerce announced May 23 its self-initiation of an investigation under section 232 of the Trade Expansion Act of 1962 to determine whether imports of automobiles (including SUVs, vans, and light trucks) and auto parts are harming U.S. national security. A DOC press release explains that auto manufacturing has long been a significant source of U.S. technological innovation and that this 232 investigation will therefore consider whether the decline of domestic automobile and auto parts production threatens to weaken the internal economy of the U.S., including by potentially reducing research, development, and jobs for skilled workers in connected vehicle systems, autonomous vehicles, fuel cells, electric motors and storage, advanced manufacturing processes, and other cutting-edge technologies. The DOC notes that U.S.-owned vehicle manufacturers in the U.S. account for only 20 percent of global research and development in the automobile sector and U.S. auto part manufacturers account for only seven percent in that industry.
 
If the DOC finds that excessive automobile and auto parts imports are a threat to U.S. national security, and the president concurs, the president has the authority to adjust imports, including through the use of tariffs and quotas. The DOC has up to 270 days to conclude its investigation and any resultant actions would be imposed within 15 days of the president’s determination to act. A hearing date and public comment period are expected to be announced shortly.
 
There is some speculation that the new investigation is a negotiating tactic by the White House. Press sources note that the Trump administration is pressing major trading partners to limit exports of steel and aluminum to the U.S. and attempting to persuade Canada and Mexico to incorporate tougher auto rules of origin in NAFTA and that many of the countries involved in these initiatives are significant exporters of automobiles and auto parts to the U.S. President Trump has often used the threat of adverse trade actions to secure desired outcomes, though with mixed results.
 
The new investigation came in for criticism from a number of observers. “Tariffs are taxes,” said Cody Lusk, president and CEO of the American International Automobile Dealers Association. “To treat auto imports like a national security threat would be a self-inflicted economic disaster.” John Bozzella, head of a trade association that represents foreign auto companies in the U.S., noted that to his knowledge “no one is asking for this protection.” Senate Foreign Relations Committee Chairman Bob Corker, R-Tenn., accused Trump of “abusing” the Section 232 law and said the new investigation “should be abandoned immediately.” European Commission Vice-President Jyrki Katainen said any tariffs that may result from the investigation “obviously would be against” World Trade Organization rules. 

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

 
The European Union, India, Japan, Russia, and Turkey submitted to the World Trade Organization this week separate lists of U.S. exports on which they could impose increased tariffs in response to the Trump administration’s tariff hike on imported steel and aluminum products. The retaliatory measures could take effect as early as June 18.
Russia said it would target $537.6 million worth of U.S. products but said further details on specific goods would be provided later. Turkey said it would raise duties on 22 U.S. goods, including, rice, tobacco, cosmetics, paper, and motor vehicles, worth $266.5 million. Japan indicated an intent to target $264.4 million worth of U.S. goods but gave no specifics. The 
EU is threatening to impose additional duties of 10 percent, 25 percent, 35 percent, or 50 percent on $1.6 billion worth of U.S. goods. India’s list reportedly identifies $165 million worth of mostly agricultural products along with some motor vehicles.

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

COMMCOMMENTARY

COMM_a121. 
B. Valero: “The Change We Need in EU Arms Export Control”
(Source: 
Friends of Europe, 14 May 2018.) 
 
* Author: Bodil Valero is a Member of the European Parliament for the Swedish Green Party. 
 
In Yemen, the Saudi-led coalition heads a bombing campaign that has targeted and killed thousands of civilians, while a naval blockade has left the people on the verge of famine, unable to receive various aid packages. Nevertheless, European Union countries have continued to export weapons to Saudi Arabia for billions of euros.
 
In Egypt, the military regime is brutally silencing all dissent and political opposition. Yet despite the EU Council’s decision in 2013 to halt all arms exports, arm deliveries to Egypt have continued.
 
And in conflict-torn Syria, EU-made Kalashnikovs, rocket launchers and heavy machine guns are being found in the hands of militias and terrorist groups, prolonging the suffering and destruction. 
 
In all three cases, European member states are funding these atrocities. This is a clear sign that the EU needs to change the way it is controlling arms exportation. While it is recognized that we need arms production for our own legitimate defense and security, we should never accept that arms are exported in a manner that violates our rules, contradicts our values and weakens that very security we seek. 
 
EU-made Kalashnikovs, rocket launchers and heavy machine guns are being found in the hands of militias and terrorist groups
 
For two consecutive years I have been the rapporteur for the European Parliament’s annual report on arms export controls. With colleagues from other party groups, we have convinced the parliament to stand behind a number of progressive suggestions for changes in common EU rules on arms exports — the so-called common position — and its application. 
 
Could we succeed in getting rid of illegitimate and irresponsible arms exports? Yes, of course we can. But this requires effort from all European member states. 
 
An important first step the EU can take in changing the attitude of states that export arms would be stricter implementation of the common position. EU rules on arms exports — the eight criteria of the Council’s common position — are clear and just. 
 
If implemented correctly they would make arms deals, like the ones described above, impossible. But the criteria are applied differently depending on which recipient state you look at. It is not unusual that so called ‘strategic allies’ or ‘friendly nations’ get a pass, even when they clearly violate the rules. 
 
This has to change. The criteria must be applied fully and coherently across member states. Since arms have long life spans, it is essential to make long term risk assessments. Instead of simply assessing each product and the risk of it being misused, I have suggested using a precautionary principle and to also look at the recipient states’ democratic status. Sweden has already implemented such legislation, and we are now looking for the rest of Europe to follow suit. 
 
An increase in scrutiny and accountability for those that export arms is another step the EU can take. However, for scrutiny to work, we need reliable statistics. Many member states submit reports that are both late and incomplete, making it difficult for parliaments, journalists or citizens to hold governments accountable.
 
I have proposed introducing sharp deadlines for reporting and uniform format requirements. Instead of reporting the value and quantity of licenses granted we should use statistics on actual deliveries — a much more relevant measure. Member states failing to report correctly should be fined. Digitalizing the reporting system and making it easily accessible online is a must. This is now being discussed in the Council’s Working Group for Arms Control (COARM), but it is important that member states move from discussions to decisions.
 
Finally, it is not enough to demand arms embargos or stricter national regulation if the common position is so easily ignored. Instead of having each member state control and sanction itself, it is time we give the common position some teeth and open up the possibility for an EU sanctions mechanism. Breaking the rules has to come at a cost. The European Parliament stood with the Greens/European Free Alliance and my colleagues to open up a process leading towards the possibility of a real sanctions mechanism, where states are held accountable for breaking the rules. If a change in the treaty is needed for that to happen, I strongly believe member states have to be open to consider it. 
 
This should not in any way mean handing over foreign policy and defense directly to EU institutions. It simply means creating a system where rules that have been agreed upon are followed. It is common sense and about time that decisions are made. 
 
The European Parliament has taken the lead in the fight against illegitimate and irresponsible arms exports. Now in order for us to succeed, member states need to follow.

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

COMM_a222.
B.J. Fleming, B.D. Linney & C. Griffin: “Trade Compliance Flash: OFAC Grants Further Relief from Russia Sanctions; Venezuela Sanctions Expanded”
(Source: 
Miller & Chevalier, 24 May 2018.) 
 
* Authors: Brian J. Fleming, 
bfleming@milchev.com, 202-626-5871; Barbara D. Linney, 
blinney@milchev.com, 202-626-5806; and Collmann Griffin, 
cgriffin@milchev.com, 202-626-5836. All of Miller & Chevalier. 
On Tuesday, May 22, following widespread disruption to companies in the United States and allied countries resulting from sanctions against Russian company GAZ Group and its subsidiaries, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) issued temporary sanctions relief in the form of a new general license. This week also saw the issuance of a new executive order expanding the U.S. sanctions against Venezuela, adding to the growing list of important sanctions developments in the second quarter of 2018.

Russia Sanctions Relief

On May 22, 2018, OFAC issued General License 15 (GL15), which authorizes, through October 22, 2018, transactions and activities ordinarily incident and necessary to the maintenance or wind down of operations, contracts, or other agreements, including the importation of goods, services, or technology into the United States, with GAZ Group and entities in which it holds a 50 percent or greater interest. Such transactions and activities must be pursuant to business that was in effect prior to April 6, 2018. GL15 mirrors the relief provided by General License 14 (GL14) for transactions involving United Company RUSAL plc.
 
To provide further explanation of GL15, OFAC issued six new FAQs. These FAQs emphasize that the path to further sanctions relief for GAZ Group is relinquishment of Oleg Deripaska’s ownership and control of the company. The FAQs also clarify that transactions by non-U.S. persons will not be considered “significant” for the purposes of secondary sanctions under Section 228 of the Countering America’s Adversaries Through Sanctions Act (CAATSA) if the transactions would be authorized for U.S. persons by GL15 or otherwise would not require a specific license from OFAC. 

In conjunction with GL15, OFAC also issued 
General License 12C – which supersedes 
General License 12B – to reflect the authorizations contained in GL15, and made other conforming changes to FAQs 576, 578, and 583. 

New Venezuela Sanctions
 
On May 21, 2018, the White House issued a new executive order (EO) imposing strict new sanctions on Venezuela related to certain dealings in debt owed to and equity of the Government of Venezuela. The EO complements an 
earlier executive order, issued in August 2017, which prohibits dealings in certain debt or “new equity” (issued after August 24, 2017) of the Government of Venezuela, with exceptions for certain short-term debt. Accordingly, the two orders now function together to limit the Government of Venezuela’s ability to borrow funds or sell or leverage the debt and equity interests it owns. 
 
The new prohibitions on dealings in debt or certain equity owned by the Government of Venezuela are extensive. Specifically, the EO prohibits U.S. persons from engaging in any transactions related to, the provision of financing for, and any other dealings in: 
 
  – The purchase of any debt owed to the Government of Venezuela; 
  – Any debt owed to the Government of Venezuela that is pledged as collateral after 12:30 p.m. EDT on May 21, 2018; or
  – The sale, transfer, assignment, or pledging as collateral by the Government of Venezuela of any equity interest in any entity owned 50 percent or more by the Government of Venezuela. 
 
The EO explicitly states that accounts receivable constitute a debt owed to the Government of Venezuela, making clear that the new sanctions apply to transactions in which the Government of Venezuela conducts sales on payment terms that create accounts receivable. 
 
Like the August 2017 executive order, the new EO defines the Government of Venezuela to include “instrumentalities” of the Government (
e.g., the Central Bank of Venezuela and Petroleos de Venezuela, S.A. (PdVSA), the national oil company), as well as entities owned 50 percent or more by the Government of Venezuela (including, 
e.g., CITGO Holding, Inc., PdVSA’s wholly-owned U.S. subsidiary). However, issuance of the new EO was not accompanied by the issuance of any general licenses. This means, among other things, that while transactions involving CITGO otherwise prohibited by the August 2017 executive order are authorized, transactions involving debts owed to CITGO prohibited by the new EO are not.
 
Implications for Compliance and Potential Secondary Sanctions Risks
 
The recent rapid pace of U.S. sanctions developments highlights the importance of monitoring for developments daily and the need for a “continuous improvement” approach to compliance programs. In addition to the Russia and Venezuela sanctions developments described above, the month of May alone has seen eight OFAC announcements of new additions to the List of Specially Designated Nationals and Blocked Persons (under the Counter-Terrorism, Iran, Non-Proliferation, Narcotics Kingpin, and Venezuela programs), as well as the 
May 8 announcement of President Trump’s decision to withdraw from the Joint Comprehensive Plan of Action. In addition to keeping abreast of new developments, companies should review their ability to adapt their compliance programs to keep pace with the evolving sanctions environment. A readily deployable process for identifying the need for and implementing changes is a critical element of a successful compliance program.
 
Furthermore, non-U.S. companies should consider assessing whether any existing or contemplated business with entities in Russia or Iran exposes them to the risk of secondary sanctions. Despite OFAC’s latest guidance, and the issuance of GL14 and GL15, for example, non-U.S. companies should be aware that their financial institution partners, supply chain partners, and contractual counterparties may take differing views on the extent of potential secondary sanctions risks under CAATSA. Such conflicting views on secondary sanctions risks can lead to tensions with those partners or even outright disruptions to ongoing business. The situation is even murkier with respect to Iran and will likely remain uncertain until at least the end of the 180-day wind-down period in November. A clear-eyed assessment of potential secondary sanctions risks is often the best way to mitigate those risks effectively.

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

COMM_323.
Gary Stanley’s EC Tip of the Day
(Source: Defense and Export-Import Update; 23 May 2018. Available by subscription from 
 gstanley@glstrade.com.)
 
* Author: Gary Stanley, Esq., Global Legal Services, PC, (202) 352-3059, 
gstanley@glstrade.com.
 

BIS publishes the names of certain foreign persons – including businesses, research institutions, government and private organizations, individuals, and other types of legal persons – that are subject to specific license requirements for the export, reexport and/or transfer (in-country) of specified items. These persons comprise the Entity List, which is found at Supplement No. 4 to Part 744 of the Export Administration Regulations (EAR). The persons on the Entity List are subject to individual licensing requirements and policies supplemental to those found elsewhere in the EAR. BIS first published the Entity List in February 1997 as part of its efforts to inform the public of entities that have engaged in activities that could result in an increased risk of the diversion of exported, reexported or transferred (in-country) items to weapons of mass destruction (WMD) programs. Since its initial publication, grounds for inclusion on the Entity List have expanded to activities sanctioned by the State Department and activities contrary to U.S. national security and/or foreign policy interests.

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

TEEX/IM TRAINING EVENTS & CONFERENCES

TE_a1
24. 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
25. 
List of Approaching Events – 11 New Events Listed
(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 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: 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 4-5: Washington, D.C.; ”
The WorldECR Export Controls and Sanctions Forum 2018“; World ECR

* 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 

# Jun 12-13: Houston, TX; “
Complying with US Export Controls
“; Bureau of Industry and Security (BIS) 

* Jun 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 14-15: Annapolis, MD; “May 2018 Seminar Level III-Mastering ITAR/EAR Challenges“; Export Compliance Solutions; spalmer@exportcompliancesolutions.com; 866-238-4018 
# Jun 14: Houston, TX; “Technology and Software Controls“; Bureau of Industry and Security (BIS)
* 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
 

# Jun 28-29: London, UK; ”
The WorldECR Export Controls & Sanctions Forum 2018“; World ECR

# Jul 2-6: Paris, France; “Training On ISO 19600 & ISO 37001 In Paris
* 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: San Diego, CA; “
12th CompTIA Global Trade Compliance Best Practices Conference“; CompTIA

* Sep 18: Los Angeles, CA; “Tariff Classification for Importers and Exporters“; Global Trade Academy 
# Sep 19: Washington, D.C.; “ DDTC In-House Seminar“; Department of State (Registration: Aug 10 – Aug 31; first come, first served)
* 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 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 19: Webinar; “Export 101: Starting at the Beginning“; ECTI
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_a126
. Bartlett’s Unfamiliar Quotations

(Source: Editor)


Ralph Waldo Emerson (25 May 1803 – 27 Apr 1882; was an American essayist, lecturer, philosopher, and poet who led the transcendentalist movement of the mid-19th century. He was seen as a champion of individualism and a prescient critic of the countervailing pressures of society, and he disseminated his thoughts through dozens of published essays and more than 1,500 public lectures across the United States.)
  
– “We aim above the mark to hit the mark.”
  – “Bad times have a scientific value. These are occasions a good learner would not miss.”
 
Friday funnies: 
 

Lawyer:  “I had a client who had to have his infected leg amputated, but the surgeons made a mistake and cut off his good leg.  So he had to have his bad leg amputated as well.  We thought we had an easy lawsuit for negligence against the hospital and doctors, but the judge threw the case out of court!  He said my client didn’t have a leg to stand on.” 

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

EN_a227. 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):
17 May 2018:
83 FR 22842-22846
: Revisions to the Unverified List (UVL) 

 

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_a328
. 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.

* SUBSCRIPTIONS: Subscriptions are free.  Subscribe by completing the request form on the Full Circle Compliance website.

* BACK ISSUES: An archive of Daily Bugle publications from 2005 to present is available HERE.

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