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18-0601 Friday “Daily Bugle”

18-0601 Friday “Daily Bugle”

Friday, 1 June 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
.

[No items of interest noted today.]

  1. Items Scheduled for Publication in Future Federal Register Editions 
  2. Commerce/BIS: (No new postings.) 
  3. DHS/CBP Releases Harmonized System Update 1808
  4. DHS/CBP Updates on Additional Duty on Imports of Steel and Aluminum Articles under Section 232
  5. State/DDTC Posts Notice Concerning Tier 1 Registrants
  1. Computer World: “Security Researchers Call for Changes to Australian Defense Exports Regime”
  2. Defense News: “Two Key Industry Groups Hope Now is the Time to Push a Major Change to the Defense Export Process”
  3. Salon: “U.S. Gun Industry Wants a Bigger Piece of the World’s Arms Trade”
  4. ST&R Trade Report: “Dates and Deadlines: Valuation, GSP Reviews, Classification, Export Forms”
  1. M. Volkov: “DOJ Charges Two Additional Individuals in FCPA Rolls Royce Case”
  2. R.C. Thomsen II, A.D. Paytas & M.M. Shomali: “Changes to Export Controls in May 2018”
  3. R.K. Huffman, K.J. Wolf & N.G. Kohne: “White Paper: Recent Department of Defense Guidance on Cybersecurity Requirements and Related Export Control Issues”
  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 (1 Jun 2018), ITAR (14 Feb 2018) 
  3. Weekly Highlights of the Daily Bugle Top Stories 

EXIMITEMS FROM TODAY’S FEDERAL REGISTER

EXIM_a1

[No items of interest noted today.]

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OGSOTHER GOVERNMENT SOURCES

OGS_a11
. Items Scheduled for Publication in Future Federal Register Editions
 

(Source:
Federal Register)
* Commerce/BIS; RULES; Implementation of the February 2017 Australia Group Intersessional Decisions and the June 2017 AG Plenary Understandings; Addition of India to the AG; Correction [Publication Date: 4 Apr 2018.] 

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OGS_3
3.
DHS/CBP Releases Harmonized System Update 1808

(Source: 
CSMS# 18-000373, 1 Jun 2018.) [Excerpts.] 
 
Harmonized System Update (HSU) 1808 was created on May 31, 2018 and contains 11,876 ABI records and 2,228 harmonized tariff records.
 
This update includes modifications made as a result of two Presidential Proclamations, issued May 31st, amending Section 232 tariffs on steel and aluminum imports. These changes are effective on June 1, 2018. 
 
The Presidential Proclamation on Steel may be found 
here. The Presidential Proclamation on Aluminum may be found 
here. These above adjustments can also be found within the 2018 USHTS, Revision 5 using 
this link.
 
In addition, on December 22, 2017, the President signed into law the Tax Cuts and Jobs Act (Public Law 115-97), which mandated modification to the Internal Revenue Code of 1986 (IRC). Regulations related to alcohol administered by TTB are included, and the ACE HTS has been updated to reflect these 
 
changes. While we expect further guidance to be issued soon, the legislation can be found 
here.
 
In support of the PGA Message Set functionality, Participating Government Agency (PGA) indicators were updated as well.
 
Finally, adjustments required by the verification of the 2018 Harmonized Tariff Schedule (HTS) are also included.
 
The modified records are currently available to all ABI participants and can be retrieved electronically via the procedures indicated in the CATAIR. For further information about this process, please contact your client representative. …  
 
  – Related CSMS No. 18-000372

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OGS_a44.
DHS/CBP Updates on Additional Duty on Imports of Steel and Aluminum Articles under Section 232
(Source: 
CSMS #18-000372, 31 May 2018.)
 
BACKGROUND:
 
On March 8, 2018, the President issued Proclamations 9704 and 9705 on Adjusting Imports of Steel and Aluminum into the United States, under Section 232 of the Trade Expansion Act of 1962, as amended (19 U.S.C. 1862), providing for additional import duties for steel mill and aluminum articles, effective March 23, 2018.  See the Federal Register, 83 FR 11619 and 83 FR 11625, March 15, 2018.  On March 22, 2018, the President issued Proclamations on Adjusting Imports of Steel and Aluminum into the United States. See the Federal Register, 83 FR 13355 and 83 FR 13361, March 28, 2018.  On April 30, 2018, the President issued Proclamations 9739 and 9740 on Adjusting Imports of Steel and Aluminum into the United States.  See the Federal Register, 83 FR 20683 and 83 FR 20677, May 7, 2018.  On May 31, 2018, the President issued Proclamations on Adjusting Imports of Steel and Aluminum into the United States.
 
These duty requirements are effective with respect to goods entered, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on March 23, 2018.
 
COMMODITY: 
Steel mill and aluminum articles, as specified in the Presidential Proclamations. 
 
COUNTRIES COVERED BY SECTION 232 IMPORT DUTIES:
Please note that the Section 232 measures are based on the country of origin, not the country of export.
 
Steel:
– As of June 1, 2018: All countries of origin except Argentina, Australia, Brazil, and South Korea.
 
Aluminum:
– As of June 1, 2018: All countries of origin except Argentina and Australia. 
 
COUNTRIES COVERED BY SECTION 232 ABSOLUTE QUOTAS:
 
Steel:
– As of June 1, 2018: Argentina, Brazil, and South Korea.
 
Aluminum:
– As of June 1, 2018: Argentina.
 
For both steel and aluminum, imports of United States origin are not covered by the Section 232 measures.
 
FILING INSTRUCTIONS: 
 
SECTION 232 IMPORT DUTIES: 
Use non-quota entry type codes.
 
UPDATE:  As of June 1, 2018, for all imports of aluminum from South Korea, importers should also use non-quota entry type codes.
 
Steel Products 
 
In addition to reporting the regular Chapters 72 & 73 of the Harmonized Tariff Schedule (HTS) classification for the imported merchandise, importers shall report the following HTS classification for imported merchandise subject to the additional duty:
 
9903.80.01 (25 percent ad valorem additional duty for steel mill products)
       
Aluminum Products 
 
In addition to reporting the regular Chapter 76 of the HTS classification for the imported merchandise, importers shall report the following HTS classification for imported merchandise subject to the additional duty: 
 
9903.85.01 (10 percent ad valorem additional duty for aluminum products)
 
SECTION 232 ABSOLUTE QUOTAS: 
Use quota entry type codes (entry types 02, 06, 07, 12, 23, 32, 38, or 52). 
For further guidance, see 
CBP quota bulletins
.
 
Generalized System of Preferences (GSP) and African Growth and Opportunity Act (AGOA)
 
GSP and AGOA-eligible goods that are subject to Section 232 duties or quotas may not receive GSP or AGOA duty preference in accordance with 19 USC 2463(b)(2).
 
On imports subject to Section 232 duties or quotas (including imports from Argentina and Brazil), in addition to any applicable Section 232 duties, importers should pay the normal trade relations (column 1) duty rates and not submit the GSP Special Program Indicator (SPI) “A” or the AGOA SPI “D”
 
* FOR FURTHER INFORMATION: 
For more information, please refer to the Presidential Proclamations on Adjusting Imports of Steel and Aluminum into the United States, Federal Register, 83 FR 11619 and 83 FR 11625, March 15, 2018; the March 22, 2018 Presidential Proclamations on Adjusting Imports of Steel and Aluminum into the United States. 83 FR 13355 and 83 FR 13361, March 28, 2018; and the April 30, 2018 Proclamations on Adjusting Imports of Steel and Aluminum into the United States. 83 FR 20683 and 83 FR 20677, May 7, 2018; and the May 31, 2018, Proclamations on Adjusting Imports of Steel and Aluminum into the United States.
 
Also see Frequently Asked Questions 
here.
 
Questions related to Section 232 entry filing requirements should be emailed to 
traderemedy@cbp.dhs.gov.  Questions from the importing community concerning ACE rejections should be referred to their Client Representative. 
 

* Related: 18-00035218-00031718-000296  

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OGS_45. 
State/DDTC Posts Notice Concerning Tier 1 Registrants 
(Source: 
State/DDTC, 31 May 2018.) 
DDTC has determined that a system issue prevented registration reminder letters for Tier 1 registrants with expirations of May 31, 2018 and June 30, 2018 from being sent out at least 60 days prior to expiration.  The issue has been resolved.  To ensure registrants are not adversely affected, DDTC has temporarily extended May 31, 2018, expirations to July 31, 2018, and June 30, 2018, expirations to August 31, 2018.  Please note that registration submissions still need to be made at least 30 days in advance of the expiration of the temporary extension to ensure a lapse in registration does not occur.  Properly renewed registrations affected by this issue will reflect either a May and June 2019 expiration, unless a lapse occurs.  Questions regarding registration status as a result of this issue should be directed to the DDTC Response Team.

 
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NWSNEWS

(Source: 
Computer World, 1 Jun 2018.) 
 
Defense Trade Controls Act restrictions on cryptography research could make Australia less secure, researchers argue.
 
A group of information security researchers has called for changes to Australia’s Defense Trade Controls Act. The group argues that the current DTCA regime can act as a barrier to cryptography research.
 
The government has commissioned Dr. Vivienne Thom to conduct a review of the DTCA, which imposes penalties for the unauthorized export and in some cases publication of certain types of technology – including so-called “dual-use” technologies.
 
The DTCA is Australia’s implementation of the 42-nation Wassenaar Arrangement on Export Controls for Conventional Arms and Dual-Use Goods and Technologies. … 
 
[Australia’s Defense Strategic Goods List (DSGL)] has some exemptions relating to technology that is already “in the public domain”, “basic scientific research”, and the minimum information necessary for applying for a patent. … 
 

However, a group of researchers has called for a broadening of the exemption on “basic research” to “fundamental research”. … 

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(Source: 
Defense News, 1 June 2018.) 
 
With the Trump administration making it clear that American defense sales abroad are a 
fundamental part of its economic and security plans, two key industry trade groups are hoping now is the time to push through a major change to the 
defense export process.
 
The Aerospace Industries Association this week delivered a letter to Secretary of State Mike Pompeo calling for the creation of a national security cooperation strategy that would increase both transparency and speed to the military export system.
 
The 21-page AIA letter with 11 broad recommendations for how the Trump administration should handle defense exports to 
grow the industrial base, has been endorsed by the National Defense Industrial Association, America’s other major defense industry trade group. 
 
The push for a national Security Cooperation Strategy started under Fanning’s predecessor, David Melcher. But AIA is hoping to get fresh energy behind that push during the current review period for the new 
arms control export rules proposed by the administration.

The association isn’t “advocating to getting to ‘yes’ faster; we’re advocating for getting to the right answer faster, whether it is ‘yes’ or ‘no,'” Eric Fanning, AIA’s CEO, told reporters this week.
 
  “This was something that frustrated me when I was in government,” added Fanning, who served as both Secretary of the Army and Acting Secretary of the Air Force during the Obama administration. “If the answer is ‘no.’ it’s helpful to get to it quickly so we’re not frustrating allies and partners.”
 
AIA’s goal is twofold. First, to create a strategy guiding America’s goals with 
foreign weapon sales, which would be informed by the 
National Security Strategy and 
National Defense Strategy. While not wanting to commit to a format, Fanning said he could envision a largely classified report that would lay out where America needs more capability and how allies could fill it.
 
As an example, he held up the ever-present need for more lift capability in Africa. If the U.S. knows it needs that capability, having a strategy would allow Washington to guide partners in Africa towards procuring lift capabilities over other items they may request instead.
 
While acknowledging that domestic desires don’t match up with what the U.S. thinks countries need, Fanning argued that having a cohesive strategy involving State, Commerce and the Pentagon would allow a clear voice that could impact those decisions.
 
  “Saying ‘no, you can’t have X’ is different from saying ‘you can’t have X, but you could have Y,'” Fanning said. “If we can paint a picture of how them increasing certain capabilities does help them because it helps the broader effort, I think it helps us make our case.”
 
Remy Nathan, AIA’s vice president of international affairs, added that having a strategy could also allow the U.S. to guide partners on how best to improve in order to be cleared for the system they truly desire. If a nation can’t be sold a system because of industrial security concerns, for example, a broad strategy would allow the entirety of the U.S. government to give clarity on how to improve that.
 
Point Person Needed
 
The second half of the strategy would involve a point person, or at least office, who has oversight on the entire weapon exports process.
 
Right now, various offices at DoD, State, and Commerce all have a piece of defense exports, and there is no single person who is the export czar, for lack of a better term. Appointing such a person, or creating a board of some kind, would allow direct oversight and make sure individual cases are not getting caught in the gears of the system.
 
  “This issue here isn’t that the system is broken. It’s that its burdened,” said Nathan.
 
Fanning again stressed this isn’t about turning all cases that are denied into American defense sales, but rather about making sure that everyone involved finds out what the status of their request is. An ally shouldn’t have to wait months and months to get a no answer, which would lead to confusion and frustration, industry has argued.
 
The letter from AIA is neutral on where that office or individual could reside, although given the interagency nature of the process, it may make sense to be tied into the White House staff itself.
 
Regardless of where it lives, however, the point person would be needed to ensure the security cooperation strategy is being carried out, Fanning said.
 
  “By design or by accident, things get stuck a lot, and if someone is at least monitoring it we can push it along and get it through the system,” he noted.

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(Source: 
Salon, 1 Jun 2018.) [Excerpts.] 
 
… The weapons covered by a 
proposed rule, which would transfer authority to license U.S. gun manufacturer sales overseas from the State Department to the Commerce Department, 
include assault-style rifles, high-capacity pistols and armor-piercing sniper rifles.
 
  “Sound policy would not make it easier for U.S. gun manufacturers who made the assault weapons used in the mass shootings at 
Sandy Hook, Pulse nightclub, Las Vegas, and Parkland to sell them to international buyers,” said Kristen Rand, legislative director at the 
Violence Policy Center.
 
The rule would also end the practice of
notifying Congress of commercial arms sales above $1 million. Congressional outrage blocked the 
sale of assault rifles to Philippines police in 2016 and 
blocked the sale of arms to the Turkish president’s security guards in 2017. … 

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Following are highlights of regulatory effective dates and deadlines and federal agency meetings coming up in the next week.
 
  – 4 Jun: deadline for comments to FTZ Board on 
production request from aircraft engine part facility
  – 4 Jun: deadline for comments to FTZ Board on 
production requests for optical cable, PTFE facilities
  – 5 Jun: deadline for comments to BIS on form BIS-711, 
Statement by Ultimate Consignee and Purchaser
  – 5 Jun: deadline for comments to USTR on 
GSP reviews of three countries … 
  – 8 Jun: deadline for applications for USDA 
export assistance funding programs … 
  – 8 Jun: deadline for comments to CBP on proposed 
revocation or modification of classification rulings

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COMMCOMMENTARY

(Source: 
Volkov Law Group Blog, 31 May 2018. Reprinted by permission.) 
 
* Author: Michael Volkov, Esq., Volkov Law Group, 
mvolkov@volkovlaw.com, 240-505-1992. 
 
The Justice Department added to its roster of criminal FCPA defendants.  Going back to 2017, it is clear that the Yates Memorandum requirements have resulted in an increase in criminal FCPA prosecutions.
 
Last week, the Justice Department unsealed a superseding indictment adding two individuals to the Rolls Royce criminal FCPA case in Ohio.  The criminal investigation centers on bribes to a Kazakh official to win a $145 million contract to supply equipment and services for the construction of a gas pipeline from Kazakhstan to China.
 
The two individuals added to the criminal indictment were employees of an international engineering consulting firm: Azat Martirossian, an Armenian citizen, and Vitaly Leshkov, a Russian citizen, were charged with one count of FCPA conspiracy to launder money and 10 counts of money laundering.  They were joined with a pending criminal case against Peter Contoguris, a Greek citizen, who was charged in an earlier version of the indictment with one count of FCPA conspiracy, seven counts of violating the FCPA, and three counts of money laundering.  All three defendants have not been apprehended and reside outside the United States.
 
In January 2017, Rolls Royce settled an FCPA enforcement action by paying $170 million out of a global settlement of $800 million, which included the United Kingdom and Brazil. Rolls Royce entered into a deferred prosecution agreement.
 
In October 2017, the Justice Department returned a criminal indictment charging five individuals with criminal FCPA violations and money laundering charges.  Four of those defendants plead guilty.  Contoguris was one of the five defendants originally charged in the indictment.  The four defendants who plead guilty are: James Finley, a UK citizen, and former Rolls Royce senior executive;  Keith Barnett, a US citizen and former Rolls Royce manager; Aloysius Johanne Jozef Zuurhout, a Netherlands citizen and former Rolls Royce sales employee; and Andreas Kohler, an Austrian citizen, former managing director at Technical Advisor, an international engineering and consulting firm.
 
According to the indictment, Contoguris was the founder and CEO of Gravitas & CIE International Ltd. with the co-defendants conspired to bribe foreign officials to direct business to Rolls-Royce Energy Systems, Inc, a US subsidiary.
 
Azat Martirossian and Vitaly Leshkov were employees of Technical Advisor, an international consulting firm, where Rolls-Royce paid kickbacks to Technical Advisor employees and bribes to at least one foreign official in Kazakhstan.  The illegal payments were disguised as commissions to Contoguris’ company, Gravitas, in exchange for helping Rollys Royce win contracts with Asia Gas Pipeline LLP (AGP).
 
AGP was created to build a gas pipeline between Central Asia and China.  Technical Advisor was retained by AGP to provide independent engineering and consulting services.  AGP awarded the $145 million contract to Rolls Royce in November 2009. Rolls Royce, in turn, made commission payments to Contoguris’ company, Gravitas, and Contoguris then passed a portion of the payments to Technical Advisor employees, including Leshkov and Martirossian, knowing that a portion of the money would be given to a Kazakh government official from KazMunayGas Natiuonal Company. 

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* Authors: Roszel C. Thomsen II, Esq., 
roz@t-b.com; Antoinette D. Paytas, Esq., 
toni@t-b.com; and Maher M. Shomali, Esq., 
maher@t-b.com. All of Thomsen & Burke LLP.
 
This memo summarizes the regulatory, legislative, enforcement and personnel developments with respect to U.S. and multilateral export controls during the month of May 2018. …   
 
REGULATORY UPDATES
 
Update on Iran Sanctions and the JCPOA
 
Earlier this month, the President announced his decision to cease the United States’ participation in the Joint Comprehensive Plan of Action (JCPOA), and to begin re-imposing the U.S. nuclear-related sanctions that were lifted to effectuate the JCPOA sanctions relief, following a wind-down period. In conjunction with this announcement, the President issued a National Security Presidential Memorandum (NSPM) directing the U.S. Department of the Treasury and other Departments and Agencies to take the actions necessary to implement his decision. 
 
If you recall, the JCPOA implementation in January 2016 lifted selective nuclear-related secondary sanctions, financial and banking related sanctions, as well as sanctions related to insurance, Iran’s energy and petrochemicals sectors, Iran’s shipping and shipbuilding sectors, gold and other precious metals, and Iran’s automotive sectors. 
 
According to 
OFAC’s Press Release, Departments and Agencies will begin the process of implementing 90-day and 180-day wind-down periods for activities involving Iran that were consistent with the U.S. sanctions relief specified in the JCPOA. To effectuate the wind-down periods, today the State Department issued the necessary statutory sanctions waivers to provide for a wind-down period and plans to take appropriate action to keep such waivers in place for the duration of the relevant wind-down periods. As soon as is administratively feasible, OFAC expects to revoke, or amend, as appropriate, general and specific licenses issued in connection with the JCPOA. At that time, OFAC will issue new authorizations to allow the wind down of transactions and activities that were authorized pursuant to the revoked or amended general and specific licenses. 
 
At the end of the 90-day and 180-day wind-down periods, the applicable sanctions will come back into full effect.
 
OFAC also published 
FAQs today covering the re-imposition of the secondary sanctions. We have extracted some of the FAQs that may be of interest to you:
 
3.2. As of May 8, 2018, do secondary sanctions attach to the persons that were removed from the SDN List and/or other OFAC sanctions lists on Implementation Day?
 
No. However, no later than November 5, 2018, OFAC will re-impose, as appropriate, the sanctions that applied to persons removed from the SDN List and/or other lists maintained by OFAC on January 16, 2016. Depending on the authority or authorities pursuant to which these actions to re-list are taken, there may be secondary sanctions exposure for parties that engage in certain activities with these persons after their re-listing. Persons subject to secondary sanctions will have a notation of “Additional Sanctions Information – Subject to Secondary Sanctions” in their SDN List entry. Transactions conducted during the wind-down periods involving persons removed from the SDN List on January 16, 2016 could be sanctionable to the extent they are outside the scope of the wind-down waivers issued by the State Department or involve persons on the SDN List or conduct described in JCPOA FAQ A.3.ii-iii. OFAC recommends that a person conducting activities in Iran or with Iranian persons during the wind-down periods exercise due diligence sufficient to ensure that it is not knowingly engaging in transactions with persons on the SDN List or in activities that would be sanctionable under authorities targeting Iran’s malign activities.
 
The United States has and continues to enforce multiple authorities that target a range of Iranian malign activity outside of Iran’s nuclear program, including Iran’s support for terrorism, ballistic missile program, human rights abuses, and destabilizing activity in the region. Treasury will continue to target aggressively anyone who engages in such sanctionable activity, regardless of whether the individual or entity was removed from the SDN List on Implementation Day. [05-08-2018]
 
4.4. Is General License H (GL H) still in effect during the wind-down period?
 
OFAC intends to revoke GL H, which authorized U.S.-owned or -controlled foreign entities to engage in certain activities involving Iran, as soon as is administratively feasible. OFAC also expects to issue a revised authorization for the wind down of activities involving Iran authorized pursuant to GL H. The wind-down of those activities authorized pursuant to GL H must be completed by November 4, 2018. Notice of the revocation of GL H and the issuance of the wind-down authorization will be published in the Federal Register. 
 
This means that foreign subsidiaries of U.S. companies would no longer be able to rely on the authorizations under the general license once the wind down period has concluded.
 
A complete list of the FAQs can be found on 
OFAC’s website.
 
BIS and DDTC publish proposed rules to amend Categories I, II and III of the USML
 
This proposed rule describes how articles the President determines no longer warrant control under United States Munitions List (USML) Category I–Firearms, Close Assault Weapons and Combat Shotguns; Category II–Guns and Armament; and Category III–Ammunition/Ordnance, would be controlled on the Commerce Control List (CCL) and by the Export Administration Regulations (EAR). This proposed rule is being published in conjunction with a proposed rule from the Department of State, Directorate of Defense Trade Controls, which would amend the list of articles controlled by USML Category I (Firearms, Close Assault Weapons and Combat Shotguns), Category II (Guns and Armament), and Category III (Ammunition/Ordnance) of the USML to describe more precisely items warranting continued control on that list.
 
The changes described in the proposed rule on Categories I, II, and III of the USML are based on a review of those categories by the Department of Defense, which worked with the Departments of State and Commerce in preparing the amendments. The review was focused on identifying the types of articles that are now controlled on the USML that are either (i) inherently military and otherwise warrant control on the USML or (ii) if of a type common to non-military firearms applications, possess parameters or characteristics that provide a critical military or intelligence advantage to the United States, and are almost exclusively available from the United States. If an article satisfies one or both of those criteria, the article remains on the USML. If an article does not satisfy either criterion, it has been identified in the new Export Control Classification Numbers (ECCNs) included in this proposed rule. Thus, the scope of the items described in this proposed rule is essentially commercial items widely available in retail outlets and less sensitive military items.
 
BIS has created ECCNs, referred to as the “600 series,” to control items that would be removed from the USML and controlled under the CCL, or items from the Wassenaar Arrangement on Export Controls for Conventional Arms and Dual Use Goods and Technologies Munitions List (Wassenaar Arrangement Munitions List or WAML) that are already controlled elsewhere on the CCL.
 
These ECCNs are referred to as the “600 series” because the third character in each of the new ECCNs is “6.” The first two characters of the “600 series” ECCNs serve the same function as any other ECCN as described in §738.2 of the EAR. The first character is a digit in the range 0 through 9 that identifies the Category on the CCL in which the ECCN is located. The second character is a letter in the range A through E that identifies the product group within a CCL Category. With few exceptions, the final two characters identify the WAML category that covers items that are the same or similar to items in a particular “600 series” ECCN. Category II of the USML and category ML2 of the WAML cover large caliber guns and other military weapons such as: Howitzers, cannon, mortars, anti-tank weapons, projectile launchers, military flame throwers and recoilless rifles.
 
In this proposed rule, items that are currently controlled in Category II of the USML would be controlled on the CCL under four new “600 series” ECCNs. Placement of the items currently in USML Category II into the CCL’s 600 series would be consistent with existing BIS practice of using 600 series ECCNs to control items of a military nature.
 
Items currently controlled in Categories I and III of the USML would be controlled in new ECCNs in which the third character is a “5.” These items are not appropriate for 600 series control because, for the most part, they have civil, recreational, law enforcement, or other non- military applications. As with 600 series ECCNs, the first character would represent the CCL category, the second character would represent the product group, and the final two characters would represent the WAML category that covers items that are the same or similar to items in the ECCN.
 
DDTC’s proposed rule detailed the specific changes to the ITAR, including:
 
Revision of Category I
 
This proposed rule revises USML Category I, covering firearms and related articles, to control only defense articles that are inherently military or that are not otherwise widely available for commercial sale. In particular, the revised category will not include non-automatic and semi-automatic firearms to caliber .50 (12.7mm) inclusive, currently controlled under paragraph (a), and all of the parts, components, accessories, and attachments specially designed for those articles. Such items will be subject to the new controls in Export Control Classification Numbers 0A501, 0A502, 0A503, 0A504, 0A505, 0B501, 0B505, 0D501, 0D505, 0E501, and 0E502. Such controls in Category 0 of the CCL will be published in a separate rule by the Department of Commerce.
 
Paragraph (a) of USML Category I will cover firearms that fire caseless ammunition. Paragraph (b) will continue to cover fully automatic firearms to caliber .50 (12.7mm) inclusive. Paragraph (c) will cover firearms specially designed to integrate fire control, automatic tracking, or automatic firing systems, and all weapons previously described in paragraph (c) that remain on the USML will be covered by paragraph (a), (b) or (c) of this category or by Category II. Paragraph (d) will cover fully automatic shotguns. Paragraph (e) will continue to cover silencers, mufflers, sound suppressors, and specially designed parts and components; flash suppressors will be subject to the EAR. Paragraph (f) will be reserved, as riflescopes and other firearms sighting devices may be controlled in USML Category XII if they have night vison or infrared capabilities, and other riflescopes will be subject to the EAR. Paragraph (g) will continue to cover barrels, receivers (frames), bolts, bolt carriers, slides, or sears, specially designed for the firearms in Category I. Paragraph (h) will cover high capacity (greater than 50 rounds) magazines, and parts and components to convert a semi-automatic firearm into a fully automatic firearm, and accessories or attachments specially designed to automatically stabilize aim (other than gun rests) or for automatic targeting. Paragraph (i) will continue to cover the technical data and defense services.
 
A new (x) paragraph will be added to USML Category I, allowing ITAR licensing for commodities, software, and technology subject to the EAR, provided those commodities, software, and technology are to be used in or with defense articles controlled in USML Category I and are described in the purchase documentation submitted with the license application.
 
The note to Category I will be retained, with conforming revisions. A new second note will be added to clarify the terms “firearm,” “fully automatic,” and “caseless ammunition”.
Revision of Category II
 
This proposed rule revises USML Category II, covering guns and armament, establishing a bright line between the USML and the CCL for the control of these articles.
 
Most significantly, paragraph (j), controlling parts and components, will be revised to enumerate the articles controlled therein.
 
Paragraph (a) will be revised to enumerate the articles controlled in that paragraph. The articles currently covered in paragraph (c) (apparatus and devices for launching or delivering ordnance) still warranting control on the ITAR will be included in new paragraph (a)(4). A new paragraph (a)(5) will be added for developmental guns and armaments funded by the Department of Defense and the specially designed parts and components of those developmental guns and armaments. The articles currently controlled in paragraph (f), engines for self-propelled guns and howitzers in paragraph (a), will be on the CCL in ECCN 0A606. Tooling and equipment for the production of articles controlled in USML Category II, currently in paragraph (g), will be on the CCL in ECCN 0B602. Test and evaluation equipment, currently in paragraph (h), will be on the CCL in ECCN 0B602. Certain autoloading systems controlled in paragraph (i) will be moved to paragraphs (j)(9) and (11).
 
A new (x) paragraph will be added to USML Category II, allowing ITAR licensing for commodities, software, and technology subject to the EAR, provided those commodities, software, and technology are to be used in or with defense articles controlled in USML Category II and are described in the purchase documentation submitted with the application.
 
Revision of Category III
 
This proposed rule revises USML Category III, covering ammunition and ordnance, to establish a bright line between the USML and the CCL for the control of these articles and to be consistent with the changes to Category I.
 
Most significantly, paragraphs (a) and (d) will be revised to remove broad catch-alls and enumerate the articles to be controlled therein. For example, paragraph (a), which controls ammunition for articles in USML Categories I and II, will be revised to specifically list the ammunition that it controls. A new paragraph (a)(10) will be added for developmental ammunition funded by the Department of Defense and the parts and components specially designed for such developmental ammunition. Ammunition not enumerated in paragraph (a) will be subject to the EAR. Likewise, revised paragraph (d), which controls parts and components, will enumerate the articles it controls; those articles not identified but currently captured via the catch-all will be subject to the EAR.
 
Additionally, paragraph (c), which controls production equipment and tooling, will be removed and placed into reserve. The articles currently covered by this paragraph will be subject to the EAR.
 
A new (x) paragraph will be added to USML Category III, allowing ITAR licensing for commodities, software, and technology subject to the EAR, provided those commodities, software, and technology are to be used in or with defense articles controlled in USML Category III and are described in the purchase documentation submitted with the application.
 
Conforming ITAR Changes
 
Additionally, conforming changes will be made to several sections of the ITAR that refer to the current controls in USML Category I(a). These sections will be amended because they all refer to firearms that will be controlled on the CCL. Section 123.16(b)(2) will be revised to remove reference to the firearms exemptions at §123.17(a) through (e), which describe the firearms exemptions, because the paragraphs will be removed as a consequence of the control of non-automatic and semi-automatic firearms on the CCL. For the same reason, §123.16(b)(6) will be revised to describe only the remaining exemption at §123.17 (personal protective gear), and §123.16(b)(7) will be reserved. §123.17 will be amended to remove paragraphs (a) through (e), consistent with changes made to the USML. Section 123.18, as it describes exemptions for firearms that will be controlled for export by the Department of Commerce, will be removed and placed into reserve. Revision of §124.14(c)(9) will remove the example of “sporting firearms for commercial resale.” The policy guidance on Zimbabwe in §126.1(s) will be revised to remove reference to the firearms exemption in §123.17.
 
Section 129.1(b) of the ITAR will be revised to clarify that the regulations on brokering activities in part 129 apply to those defense articles and defense services designated as such on the USML and those items described on the USMIL (27 CFR 447.21). Section 129.4 of the ITAR will also be revised to clarify brokering requirements for items on the USMIL that are subject to the brokering requirements of the AECA. The items that will move to the CCL for export control purposes, yet are in the USMIL for permanent import purposes, remain subject to the brokering requirements of part 129 with respect to all brokering activities, including facilitation in their manufacture, export, permanent import, transfer, reexport, or retransfer. The revisions also clarify that foreign defense articles that are on the USMIL require brokering authorizations. … 
 
 
The President issued an Executive Order this month prohibiting additional transactions with respect to the Government of Venezuela, in light of the recent activities of the Maduro regime, including endemic economic mismanagement and public corruption at the expense of the Venezuelan people and their prosperity, and ongoing repression of the political opposition; attempts to undermine democratic order by holding snap elections that are neither free nor fair; and the regime’s responsibility for the deepening humanitarian and public health crisis in Venezuela. These prohibitions include:
 
All transactions related to, provision of financing for, and other dealings in the following by a United States person or within the United States are prohibited:
 
  (1) the purchase of any debt owed to the Government of Venezuela, including accounts receivable;
  (2) any debt owed to the Government of Venezuela that is pledged as collateral after the effective date of this order, including accounts receivable; and
  (3) the sale, transfer, assignment, or pledging as collateral by the Government of Venezuela of any equity interest in any entity in which the Government of Venezuela has a 50 percent or greater ownership interest.
 
ENFORCEMENT ACTIONS
 
 
A Port St. Lucie resident pled guilty this month to unlawfully exporting firearms, firearm accessories, and ammunition from South Florida to Rio de Janeiro, Brazil. Frederik Barbieri of Port St. Lucie, Florida pled guilty to one count of conspiracy to commit offenses against the United States, in violation of Title 18, United States Code, Section 371, and one count of unlicensed exportation of defense articles, in violation of Title 22, United States Code, Section 2778. Barbieri faces a possible maximum statutory sentence of 25 years in prison.
 
According to stipulated facts filed in court, from May of 2013 through February of 2018, Barbieri conspired with others to: possess firearms with obliterated serial numbers; deliver packages containing those firearms to contract carriers for international shipment without providing notice that the packages contained firearms; and smuggle firearms, firearm accessories, and ammunition from the United States to Rio de Janeiro, Brazil.
 
During this period, a shipment sent by Barbieri was intercepted in Rio de Janeiro by Brazilian law enforcement and found to contain approximately thirty AR-15 and AK-47 rifles and firearm magazines, all concealed in four 38-gallon Rheem water heaters. The water heaters were hollowed out and loaded with the contraband, and the serial numbers on each of the firearms had been obliterated. The same day that Brazilian authorities intercepted his shipment, Barbieri called and requested that the freight forwarder destroy the related paperwork.
 
Documentation provided by the freight forwarder revealed Barbieri’s historical shipments. In addition to shipping the four Rheem water heaters in which he concealed approximately thirty rifles, Barbieri also shipped to Brazil an additional 120 Rheem water heaters, as well as 520 electric motors and 15 air conditioning units, from May of 2013 to May of 2017, using that freight forwarder. These items are all consistent with objects used to conceal the illegal international shipment of firearms and ammunition.
 
In February 2018, federal agents executed a warrant to search a storage unit rented by Barbieri in Vero Beach, Florida. In the storage unit, law enforcement discovered 52 rifles, 49 of which were wrapped for shipment with obliterated serial numbers. In addition, law enforcement discovered dozens of high capacity firearm magazines, over 2,000 rounds of ammunition, and packaging materials. Barbieri was arrested the following day.
 
It is illegal for civilians to possess firearms in Brazil. According to Brazilian law enforcement, AK and AR rifles have a black market value of approximately $15,000 to $20,000 in the black market. The retail cost of those firearms in the United States is approximately $700 to $1,000.
 
Neither Barbeiri, nor any of his coconspirators, obtained a license or written approval from the United States Department of State to export any defense articles. Non-automatic firearms, firearm accessories, and ammunition are articles designated as “defense articles,” pursuant to federal regulations.
 
 
Mehmet Hakan Atilla, a resident and citizen of Turkey, was sentenced this month to 32 months for his participation in a scheme to violate U.S. economic sanctions imposed on the Islamic Republic of Iran involving billions of dollars’ worth of Iranian oil proceeds held at Atilla’s employer (Turkish Bank-1). On Jan. 3, after a five-week jury trial, Atilla was convicted of conspiring with others to use the U.S. financial system to conduct transactions on behalf of the government of Iran and other Iranian entities, which were barred by U.S. sanctions, and to defraud U.S. financial institutions by concealing these transactions’ true nature.
 
Beginning in or about 1979, the president, pursuant to the International Emergency Economic Powers Act (IEEPA), has repeatedly found that the actions and policies of the government of Iran constitute an unusual and extraordinary threat to the national security, foreign policy, and economy of the United States and has declared a national emergency to deal with the threat. In accordance with these presidential declarations, the United States has instituted a host of economic sanctions against Iran and Iranian entities. This sanctions regime, among other things, prohibits financial transactions involving the United States or U.S. persons that were intended directly or indirectly for the government of Iran or Iranian entities. Other U.S. sanctions in effect during this case’s relevant time period also required foreign financial institutions to restrict the use of Iranian oil proceeds, if those foreign banks wished to continue to do business with the U.S. financial system.
 
Atilla and others conspired to provide access to restricted oil revenues through international financial networks, including U.S. financial institutions, to the government of Iran, Iranian entities, and entities identified by the Department of the Treasury Office of Foreign Assets Control as Specially Designated Nationals (SDNs). They did so by, among other things, using Turkish Bank-1, at which Atilla served as Deputy General Manager of International Banking, to engage in transactions involving billions of dollars’ worth of petroleum revenues held by the Central Bank of Iran and the National Iranian Oil Company. In particular, they facilitated and protected Turkish Bank-1 customer, international gold trader Reza Zarrab’s, ability to supply currency and gold to, and facilitate international financial transactions for, the Government of Iran, Iranian entities, and SDNs using Turkish Bank-1. Many of those financial transactions involved unwitting U.S. financial institutions, in violation of U.S. sanctions against Iran. The elaborate scheme established by Atilla and others also shielded Turkish Bank-1 from U.S. sanctions.    
 
Atilla in particular lied to and deceived U.S. Treasury officials about Turkish Bank-1’s activities and its purported compliance efforts in order to avoid subjecting the bank to U.S. sanctions. Additionally, Atilla, Zarrab and others conspired to create and use false and fraudulent documents to disguise prohibited transactions for Iran and make those transactions falsely appear as transactions involving food, thus falling within humanitarian exceptions to the sanctions regime. As a result of this scheme, Atilla and his co-conspirators induced U.S. banks unknowingly to process international financial transactions in violation of the IEEPA, and to launder through the U.S. financial system funds promoting the scheme.

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

 
* Authors: Robert K. Huffman, Esq., 
rhuffman@akingump.com, +1 202-887-4530; Kevin J. Wolf, Esq., 
kwolf@akingump.com, +1 202-887-4051; and Natasha G. Kohne, Esq., 
nkohne@akingump.com, +1 415-765-9505.  All of Akin Gump Strauss Hauer & Feld LLP.
 
The U.S. Department of Defense (DoD) recently issued two sets of guidance regarding Defense Federal Acquisition Regulation Supplement (DFARS) Clause 252.204-7012, “Safeguarding Covered Defense Information and Cyber Incident Reporting.” The most recent set was attached to an April 24, 2018, notice and request for comment titled “DoD Guidance for Reviewing System Security Plans and the NIST SP 800-171 Security Requirements Not Yet Implemented.” 83 Fed. Reg. 17,807. The second set consists of updated Frequently Asked Questions that DoD issued on April 2, 2018. This white paper examines the impact of these guidance documents on the role of contractor System Security Plans and Plans of Action and Milestones in source selection and contract performance, the proper interpretation of particular National Institute of Standards and Technology Special Publication 800-171 requirements, and the potential impact of DFARS Clause 252.204-7012 with respect to safeguarding and reporting requirements on export-controlled information resident in contractor information systems.
 
To access the white paper outlining more information, please click 
here.

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

TEEX/IM TRAINING EVENTS & CONFERENCES

TE_a1
13. FCC Presents “Summer Course U.S. Export Controls: An Introduction to the ITAR & EAR”, 12 Jun in Bruchem, the Netherlands


(Source: Editor)
 
* 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

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

TE_a3
14. 
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
 

* 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: 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 18-21: East Rutherford, NJ; ”
Certified Authorised Economic Operator Specialist“; Global Trade Academy

* Jun 20-21: McLean, VA; “ITAR Fundamentals“; FD Associates 

# Jun 26-27: Tysons Corner, VA; ”
Conducting an Internal Audit for Your Import and Export Transactions; Global Trade Academy

* 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

# Jul 10-11: Long Beach, CA; ”
ITAR/EAR Boot Camp: Achieving ITAR/EAR Compliance”;  Export Compliance Solutions;   
spalmer@exportcompliancesolutions.com; 866-238-4018

* 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

#
July 25-26: Seattle WA; “2018 Pacific Northwest Export Controls Conference;” Dept. of Commerce/U.S. Commercial Service, Dept. of Homeland Security/Homeland Security Investigations, Seattle University, Dorsey & Whitney LLP

* 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: Detroit, MI; “
Export Controls Specialist – Certification“; 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

# September 11-13: Annapolis, MD; ”
Defense Industry Experts and ITAR/EAR Boot Camp“; Export Compliance Solutions;
spalmer@exportcompliancesolutions.com; 866-238-4018

* 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 19-20: Los Angeles, CA; ”
Complying With U.S. Export Controls“; BIS

* 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 15-19: Chicago, IL; “Certified Classification Specialist“; Global Trade Academy
* 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 29: Seattle, WA; ”
Export Compliance & Controls 101“; Global Trade Academy

* 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 
 

Jun 4: Commodity Webinar; “June Series: Wafers, Transformers, and PCBAs“; National Commodity Specialist Division (NCSD)

Jun 5: Commodity Webinar; “June Series: Alcoholic Beverages“; National Commodity Specialist Division (NCSD) 

# Jun 5: Webinar; ”
Will Blockchain Technology Revolutionize Global Trade?“; Amber Road

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 13: Webinar; “Export Controls in the Cloud“; Shipman and Goodwin

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_a115
. Bartlett’s Unfamiliar Quotations

(Source: Editor)


Thomas Huxley (Thomas Henry Huxley; 4 May 1825 – 29 Jun 1895, was an English biologist specializing in comparative anatomy. He is known as “Darwin’s Bulldog” for his advocacy of Charles Darwin’s theory of evolution.)
 – “Try to learn something about everything and everything about something.” 
  – “If you cannot do brain work without stimulants, you had better turn to hand work — it is an indication on Nature’s part that she did not mean you to be a head worker.”


Leon Rene Yankwich(1888 – 1975, was a United States federal judge.

  – 
“More people commit suicide with a fork than a gun.”
 
Friday Funnies
 
Tom, a baseball player, was at the hospital visiting his teammate Larry, who had been in an auto accident, and was dying. Tom asked, “Larry, if there is baseball in heaven, will you come back and tell me?” Larry nodded yes just as he passed away. That night while Tom was sleeping, he heard Larry’s voice from above, saying “Tom, can you hear me?” “Yes! Is that you Larry?” asked Tom. Larry replied, “Yes. I’m in heaven. I have good news and bad news, Tom.  The good news is that that — yes, there is baseball in heaven, but the bad news is that you’re scheduled to pitch on Tuesday.”

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

EN_a216. 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: 1 Jun 2018: Harmonized System Update 1808, containing 11,876 ABI records and 2,228 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_a317
. 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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