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18-0608 Friday “Daily Bugle”

18-0608 Friday “Daily Bugle”

Friday, 8 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
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  1. Energy/NRC: Seeks Comments on Clarification of Export Reporting Requirements for Nuclear Facilities, Equipment, and Non-Nuclear Materials 
  1. Items Scheduled for Publication in Future Federal Register Editions 
  2. Commerce/BIS: (No new postings.) 
  3. DHS/CBP Posts Harmonized System Update 1809
  4. DHS/CBP Updates Drawback CATAIR and Error Dictionary
  5. State/DDTC: (No new postings.)
  6. Canada GA Posts Report on Exports of Military Goods from Canada – 2017
  7. Canada GA Posts Annual Report to Parliament on the Administration of the Export and Import Permits Act – 2017
  1. Defense News: “India to US: Sanctions Won’t Stop Russian Air-Defense System Purchase”
  2. MyTwinTiers.com: “Report: ZTE Chairman Promises No More Violations, Apologizes”
  3. ST&R Trade Report: “Dates and Deadlines: Classification, Customs Records, Export Regulations, GSP”
  1. The Export Compliance Journal: “The Delicate Matter of Offsets”
  2. J. Reeves & K. Heubert: “U.S. Departments of State and Commerce Propose Rules to Transition Firearms and Ammunition from U.S. Munitions List to Commerce Control List” (Part 3 of 4)
  3. M. Volkov: “When Corporate Leaders Fail to Listen”
  1. 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 (6 Jun 2018), FACR/OFAC (19 Mar 2018), FTR (24 Apr 2018), HTSUS (8 Jun 2018), ITAR (14 Feb 2018) 
  3. Weekly Highlights of the Daily Bugle Top Stories 

EXIMITEMS FROM TODAY’S FEDERAL REGISTER

EXIM_a1

1. Energy/NRC Seeks Comments on Clarification of Export Reporting Requirements for Nuclear Facilities, Equipment, and Non-Nuclear Materials

(Source: Federal Register, 8 June 2018.) [Excerpts.]
 
83 FR 26611-26612: Clarification of Export Reporting Requirements for Nuclear Facilities, Equipment, and Non-Nuclear Materials
* AGENCY: Nuclear Regulatory Commission.
* ACTION: Draft regulatory issue summary; request for comment.
* SUMMARY: The U.S. Nuclear Regulatory Commission (NRC) is seeking public comment on a draft regulatory issue summary (RIS) to clarify the reporting requirements for certain exports of nuclear facilities, equipment, and non-nuclear materials.
* DATES: Submit comments by August 7, 2018. Comments received after this date will be considered if it is practical to do so, but the Commission is able to ensure consideration only for comments received before this date. …
* FOR FURTHER INFORMATION CONTACT: Andrea Jones, Office of International Programs, U.S. Nuclear Regulatory Commission, Washington, DC 20555-0001; telephone: 301-287-9072, email: Andrea.Jones2@nrc.gov.
* SUPPLEMENTARY INFORMATION: …
  The RIS is intended for all persons that are required to report exports of nuclear materials, equipment, and non-nuclear materials under part 110 of title 10 of the Code of Federal Regulations (10 CFR), “Export and Import of Nuclear Equipment and Material.” Specifically, the RIS is intended to clarify the reporting requirements under 10 CFR 110.54(a)(1). The regulation in 10 CFR 110.54(a)(1) states, in part, that licensees exporting nuclear facilities, equipment, and certain non-nuclear materials under a general or specific license during the previous quarter must submit reports by January 15, April 15, July 15, and October 15 of each year on DOC/NRC Forms AP-M or AP-13, and associated forms. The draft RIS includes information relating to this reporting requirement and clarifies that the quarterly reporting requirement is in addition to, and not obviated by, the separate NRC annual reporting requirement in 10 CFR 110.54(c).
  The NRC issues RISs to communicate with stakeholders on a broad range of matters. This may include communicating and clarifying NRC technical or policy positions on regulatory matters that have not been communicated to, or are not broadly understood by, the nuclear industry. As noted in 83 FR 20858 (May 8, 2018), this document is being published in the Proposed Rules section of the Federal Register to comply with publication requirements under 1 CFR chapter I. …
 
  Dated at Rockville, Maryland, this 5th day of June 2018.
  For the Nuclear Regulatory Commission.
Tanya M. Mensah, Senior Project Manager, ROP Support and Generic Communications Branch, Division of Inspection and Regional Support, Office of Nuclear Reactor Regulation.

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OGSOTHER GOVERNMENT SOURCES

OGS_a12
. Items Scheduled for Publication in Future Federal Register Editions
 

(Source:
Federal Register)
 
* Commerce; PROPOSED RULES; Regulatory Agenda: Semiannual Regulatory Agenda [Publication Date: 11 June 2018.]

 
* Treasury; Foreign Assets Control Office; NOTICES;  Blocking or Unblocking of Persons and Properties [Publication Date: 11 June 2018.]

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OGS_3
4. DHS/CBP Posts Harmonized System Update 1809
(Source: CSMS #18-000381, 8 June 2018)
 
Harmonized System Update (HSU) 1809 was created on June 7, 2018 and contains 901 ABI records and 192 harmonized tariff records.
                                   
The HTS modifications, included in HSU 1808, and made to support Public Law 115-97, the Craft Beverage Modernization & Tax Reform Act, have been removed from the system. We expect further guidance to be provided soon.
 
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. For all other questions regarding the HTS changes, please contact Jennifer Keeling via email at
Jennifer.L.Keeling@cbp.dhs.gov.
 
  – Related: CSMS #18-000373
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OGS_a45. DHS/CBP Updates Drawback CATAIR and Error Dictionary
(Source:
CSMS #18-000382, 8 June 2018.)
 
An updated version of the Drawback CATAIR and Drawback Error Dictionary have been posted to CBP.GOV and can be found at the following locations:
 
 
The changes outlined in the document are currently available in the CERT and PROD environments.
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OGS_a56. State/DDTC: (No new postings.)
(Source: State/DDTC)
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OGS_a67. Canada GA Posts Report on Exports of Military Goods from Canada – 2017
(Source: Canada GA, 8 June 2018.)
 
The following report provides information on the export of military goods and technologies for calendar year 2017.
 
This year’s report incorporates all improvements made in the 2016 Report, designed to enhance the transparency of Canada’s military export controls, along with further refinements to update and clarify some text and data presentation. For instance, some charts and tables which last year reported the same information in multiple places (such as Tables 1 and 2) have been consolidated to avoid duplication.
 
Furthermore, as outlined in last year’s report, the 2017 Report now includes the number and value of all exported items to the United States that require an export permit (for example, prohibited firearms, related parts, ammunition and certain explosives) in Table 11.
 
Global Affairs Canada welcomes suggestions on how to improve future editions of this report. Please contact the Export Controls Division at Global Affairs Canada at:
tie.reception@international.gc.ca.
 
REPORT SUMMARY
 
The 2017 Report on the Export of Military Goods from Canada is tabled in the Parliament of Canada to increase the transparency of Canadian arms exports. This voluntary report has been produced since 1990. The last edition covered 2016 and was tabled in Parliament on June 20, 2017.
 
This report covers exports of goods and technology designed for military purposes, and does not include data on dual use or strategic items.
 
Data for this report is assembled following the end of the calendar year, and verified against information received from Canadian industry.
 
Data covering Canadian exports of military goods is also captured in two other key reports: the Annual Report on the Administration of the Export and Import Permits Act which is tabled in Parliament (a legal requirement of the Act); and Canada’s submission to the United Nations Register of Conventional Arms (UNROCA).
 
Global Affairs Canada does not collect data on most military exports to the United States. Canada and the U.S. have had a Defence Production Sharing Agreement in place since the 1950s, which has helped create an integrated North American technological and industrial base and supported Canada-U.S. trade. As a result, most military items shipped between Canada and the U.S. do not require permits and are therefore not included in the data presented in this report. However, permits are required for a small sub-set of goods, such as prohibited firearms. For those items that do require a permit, data on the number and value of permits utilized is now included.
 
SUMMARY OF KEY DATA
 
  – For the 2017 calendar year, Canada’s total exports permitted under the Export and Import Permits Act of military goods and technology amounted to approximately $1.031 billion.
  – The major share ($962.1million or 93.3%) went to member countries of the North Atlantic Treaty Organization (NATO) or other countries included on Canada’s Automatic Firearms Country Control List (AFCCL). See Annex B for the list of AFCCL countries.
  – Saudi Arabia was the largest non-U.S. export destination in 2017, receiving approximately $497.5 million in Canadian military exports (accounting for 48.25% of the total value of non-U.S. military exports).
  – The United Kingdom was the second largest non-U.S. destination of Canadian military exports, receiving approximately $89.47 million in military exports (accounting for 8.68% of all non-U.S. military exports from Canada).
  – Seven NATO countries were in the top ten destinations for the same period: United Kingdom, Germany, Turkey, France, Netherlands, Norway and Luxembourg.
 
The report can be found in its entirety
here.
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OGS_a78. Canada GA Posts Annual Report to Parliament on the Administration of the Export and Import Permits Act – 2017
(Source: Canada GA, 8 June 2018.)
 
This Annual Report to Parliament on the administration of the Export and Import Permits Act (EIPA) for the year 2017 is submitted pursuant to Section 27 of the Act, Chapter E-19 of the 1985 Revised Statutes of Canada
 
The report can be found in its entirety
here.
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NWSNEWS

(Source:
Defense News) [Excerpts.]
 
India is moving forward with a procurement of the Russian S-400 Triumf air and missile defense system, despite possible U.S. sanctions against Moscow, India’s defense minister announced at a news conference.
 
Nirmala Sitharaman said June 5 that India has explained to the U.S. “how India and Russia’s defense cooperation has been going on for a long time and that it is a time-tested relationship.”
 
India has “got quite a lot of Russian defense assets – assets, spares and servicing,” she added.
 
Despite the threat of U.S. sanctions “we have mentioned that CAATSA (Countering America’s Adversaries Through Sanctions Act) cannot impact the India-Russia defense cooperation,” she noted.
 
The CAATSA was overwhelmingly passed by Congress in August 2017 – a 98-2 vote in the Senate and 419-3 in the House – empowering the legislature to “review and counter aggression” by Iran, Russia and North Korea.
 
The law
, which came into effect in January 2018, can be brought to bear against any individual who “facilitates” an investment in Russia’s defense and intelligence sectors worth more than $10 million. Section 235 of the law stipulates U.S. President Donald Trump could then choose between five different sanction options, including asset freezes and denying access to U.S. and international financial institutions.
 
India’s defense and foreign ministers are expected to raise the issue of CAATSA sanctions when they meet with their U.S. counterparts in Washington in early July.
 
When asked if India will go through with the deal in light of possible U.S. sanctions, Sitharaman said: “The S-400 deal has been on for a very long time, and we have reached the final stage of negotiations. That explains it.” …

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(Source:  
MyTwinTiers.com, 8 June 2018.) [Excerpts.]
 
Chinese tech giant ZTE Corp.’s chairman promised no further compliance violations and apologized to customers in a letter Friday for disruptions caused by its violation of U.S. export controls, a newspaper reported.
 
Washington’s agreement Thursday to restore ZTE’s access to U.S. components removed a prominent irritant in relations with Beijing, but the two nations still are embroiled in a broader conflict over trade, tariffs and technology policy.
 
Chairman Yin Yimin’s letter also apologized to ZTE’s 80,000 employees, according to the South China Morning Post. Their jobs were in jeopardy after ZTE lost access to U.S. technology and suspended most of its operations.
 
Yin’s letter said there were “problems in our compliance culture” and ZTE should “hold the relevant people accountable and avoid similar issues in future,” according to the Post. “I would like to apologize to all employees, customers, shareholders and partners.” …
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Following are highlights of regulatory effective dates and deadlines and federal agency meetings coming up in the next week.
 
  – 11 June: deadline for comments to FTZ Board on
Mississippi facility request
  – 13 Jun: deadline for comments to USDA on proposed revisions to
import requirements for eggs and egg products
  – 14 Jun: ITC hearing on GSP additions, removals, other changes
  – 15 Jun: deadline for comments to CPSC on safety issues associated with
Internet-connected consumer goods
  – 15 Jun: effective date of new mandatory safety standard for
children’s folding chairs and stools
  – 15 Jun: deadline for comments to CBP on proposed revocation of classification rulings on
pipe fittings
,
wireless speakers
  – 15 Jun: deadline for submitting 2017
defense export offsets agreement reports
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COMMCOMMENTARY

 
Offset Agreements are conditions to an export sale of defense systems to other countries where the customer country receives an economic benefit to “offset” the purchase.
 
While the U.S. government does not endorse or encourage offsets, it does have to approve them in context of Foreign Military Sale export licenses.
 
Perceptions might sometimes be that offset incentives teeter on the edge of bribery, so it is vital to undertake Foreign Military Sale program[FN/1] proposals having offset benefits with sound proactive procedures. There are three main categories of corruption risk from offsets:
 
  (1) Improperly influencing the need for a particular defense acquisition in the first place,
  (2) Influencing the competitive decision for the main contract in non-transparent ways, and
  (3) Allowing favors to be repaid to corrupt government officials via the offset contracts [from Transparency International].
 
For U.S. exporters, these pitfalls can be avoided by observing diligent process for the government review of Direct Commercial Sale exports in support of Foreign Military Sale (FMS) programs.
 
A proactive approach is critical

The main thing for the exporter is not to get in front of the government about offering offsets. In other words, no promises can be made to the customer country in advance of approvals-which means that the necessary government project approval process has to be well in advance of export license applications.
The recommended cooperative process is for the exporter to create a project white paper. That is, when a viable opportunity is identified including a possible offset benefit, and offset rules, credits, and requirements for the customer country are understood, the defense articles, technology or services in the proposed FMS can be detailed, along with the business development rationale, delivery and implementation programs and plans, proposed service contracts-and the scope of proposed offsets. These are expressed in terms of the defense articles and technology transfers involved, end-user capacity, co-production or co-development programs, and proposed offset candidate projects.
 
This white paper is then submitted to the Defense Technology Security Administration (DTSA)[FN/2] for review, with intention on the part of both the exporter and customer country, but without any commitments having been made. DTSA can then assess the proposal for impacts on U.S. national security and technology security, the policy and agreements in effect for the customer country and its history as an end-user, the level of technology involved and its operational impact, and foreign availability of comparable systems.
 
After this review, if an approval is received (which might include required changes to the offset proposal), the customer country can then be engaged by the exporter to negotiate the final sale and proceed to the necessary license applications.
 
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* Authors: Johanna Reeves, Esq., jreeves@reevesdola.com, 202-715-994; and Katherine Heubert, Esq., 202-715-9940, kheubert@reevesdola.com. Both of Reeves & Dola LLP.
 
[Editor’s Note: Part 1 was included in the Daily Bugle of 24 May 2018; Part 2 was included in the Daily Bugle of 4 June 2018.]
 
This alert is our third installment in our four-part series dedicated to the proposed State and Commerce rules to revise U.S. export controls over firearms and ammunition. The proposed rules, published simultaneously in the Federal Register on May 24, 2018, describe in detail the transition of most firearms and ammunition from the license requirements of the U.S. Department of State’s International Traffic in Arms Regulations (ITAR) to the U.S. Department of Commerce’s Export Administration Regulations (EAR). The Department of State proposed rule, along with instructions on how to submit comments, is accessible here. The Department of Commerce’s companion publication is accessible here, and includes comment instructions as well.

In our last alert, we reviewed the State Department, Directorate of Defense Trade Controls’ (DDTC’s) proposed revisions to U.S. Munitions List (USML) Category I (Firearms, Close Assault Weapons and Combat Shotguns) and the Commerce Department, Bureau of Industry and Security’s (BIS’s ) companion proposed rules to revise the EAR. We also examined “Specially Designed,” the effects the proposed rules will have on the brokering provisions of the ITAR, the proposed new temporary import process for firearms and ammunition, and new requirements for AES filings under the proposed rules.
 
In today’s alert, we review the proposed revisions to USML Category II (Guns and Armament) and BIS’s companion proposed revisions.
 
Proposed Transitions from USML Cat. II to CCL
 
New “600 series” Export Control Classification Numbers
 –
 the DDTC rule proposes to revise USML Cat. II to establish a “bright line” between the USML and the Commerce Control List (CCL). Items removed from the USML Cat. II to the CCL would be transitioned to four new “600 series” Export Control Classification Numbers (ECCNs). Commerce added the “600 series” to the CCL as part of Export Control Reform under the Obama Administration to control certain items formerly on the USML, or items from the Wassenaar Arrangement Munitions List (WAML). Generally, BIS’s practice is to use the “600 series” ECCNs to control items of a military nature. USML Cat. II items that would be moved over to the CCL would be transitioned only to “600 series” ECCNs and not the “500 series” ECCNs, which is where USMS Cats. I and III will be destined.
 
The new ECCNs are as follows (for ease of review, we have highlighted each ECCN and corresponding header in bold and green):
  • 0A602 – Guns and armament as follows:
a. Guns and armament manufactured between 1890 and 1919.
b. Military flame throwers with an effective range less than 20 meters.
c. through w. [Reserved]
x. “Parts” and “components” that are ”specially designed” for a commodity subject to control in paragraphs .a or .b of this ECCN or a defense article in USML Category II and not elsewhere specified on the USML or the CCL.
 
Note 1 to 0A602:
 ”Parts,” ”components,” ”accessories” and ”attachments” specified in USML subcategory II(j) are subject to the controls of that paragraph. 
 
Note 2 to 0A602:
 Black powder guns and armament manufactured in or prior to 1890 and replicas thereof designed for use with black powder propellants designated EAR99.
  • 0B602 – Test, inspection, and production ”equipment” and related commodities ”specially designed” for the ”development” or ”production” of commodities enumerated or otherwise described in ECCN 0A602 or USML Category II as follows:
a. The following commodities if ”specially designed” for the ”development” or ”production” of commodities enumerated in ECCN 0A602.a or USML Category II: 
  a.1. Gun barrel rifling and broaching machines and tools therefor; 
  a.2. Gun barrel rifling machines; 
  a.3. Gun barrel trepanning machines; 
  a.4. Gun boring and turning machines; 
  a.5. Gun honing machines of 6 feet (183 cm) stroke or more; 
  a.6. Gun jump screw lathes; 
  a.7. Gun rifling machines; and 
  a. 8. Gun straightening presses. 
b. Jigs and fixtures and other metalworking implements or accessories of the kinds exclusively designed for use in the manufacture of items in ECCN 0A602 or USML Category II. 
c. Other tooling and equipment, ”specially designed” for the ”production” of items in ECCN 0A602 or USML Category II. 
d. Test and evaluation equipment and test models, including diagnostic instrumentation and physical test models, ”specially designed” for items in ECCN 0A602 or USML Category II.
  • 0D602 – ”Software” ”specially designed” for the ”development,” ”production,” operation or maintenance of commodities controlled by 0A602 or 0B602 as follows:
Items:
 ”Software” ”specially designed” for the ”development,” ”production,” operation, or maintenance of commodities controlled by ECCN 0A602 and ECCN 0B602. 
  • 0E602 – ”Technology” ”required” for the ”development,” ”production,” operation, installation, maintenance, repair, overhaul or refurbishing of commodities controlled by 0A602 or 0B602, or ”software” controlled by 0D602 as follows:
Items:
 ”Technology” ”required” for the ”development,” ”production,” operation, installation, maintenance, repair, or overhaul of commodities controlled by ECCN 0A602 or 0B602, or ”software” controlled by ECCN 0D602.
 
The reasons for control for all four ECCNs are National Security (NS), Regional Security (RS), United Nations, and Anti-Terrorism (AT). However, each proposed ECCN should be reviewed carefully to see how these controls would be applied to the various items in each ECCN.
 
Many of the items in these new ”600 series” ECCNs would be eligible for the same license exceptions and subject to the same restrictions on use of license exceptions as other ”600 series” ECCNs. The license exceptions identified in each proposed new ECCN are listed below. It is important to note that many exceptions are restricted for the particular ECCN, and these are identified with a “N/A”. However, BIS explains in its proposed rule that the restrictions are not intended to be any more restrictive than the ITAR license exemption restrictions that currently apply to those items.
 
0A602: 
  Limited Value Shipments (LVS) – $500
  Shipments to Country Group B (GBS) – N/A
  Civil End-Users (CIV) – N/A
 
0B602:
  LVS – $3,000
  GBS – N/A
  CIV – N/A
 
0D602
  CIV – N/A
  Technology & Software under Restriction (TSR) – N/A
 
0E602
  CIV – N/A
  TSR – N/A
 
In addition to the above, the ability to use the license exception, Strategic Trade Authorization (STA), is limited. Please also see Part 740 in the EAR (15 C.F.R. Pt. 740) for more information on license exceptions and restrictions.
 
Items to be Removed From USML Cat. II
 – 
below is a table showing the items that would be transitioned from USML Cat. II to the new ECCNs described above.
 
Item
Current Classification
Proposed

Classification
Flame throwers with effective range less than 20 meters
USML Cat. II(b)
ECCN 0A602
Engines for self-propelled guns & howitzers
USML Cat. II(f)
ECCN 0A606
Tooling & equipment for production
USML Cat. II(g)
ECCN 0B602
Test and evaluation equipment
USML Cat. II(h)
ECCN 0B602
Parts and components
USML Cat. II(j)
USML Cat. II(j) – specially designed list, or ECCN 0A602
 
 
Articles Still Controlled Under USML Cat. II
 
– items that would remain under USML Cat. II would be positively listed as follows, including the corresponding paragraph (Significant Military Equipment (SME) is designated with an asterisk (*)). For ease of review, we have highlighted the main paragraphs in bold and blue.
 
(a) Guns and armament greater than .50 caliber (12.7 mm), as follows:
 
*(1) Guns, howitzers, artillery, and cannons; 
*(2) Mortars; 
*(3) Recoilless rifles; 
*(4) Grenade launchers; or 
(5) Developmental guns and armament greater than .50 caliber (12.7 mm) funded by the Department of Defense and specially designed parts and components therefor. 
 
Note 1 to paragraph (a)(5):
 This paragraph does not control guns and armament greater than .50 caliber (12.7 mm) (a) in production, (b) determined to be subject to the EAR via a commodity jurisdiction determination (see § 120.4 of this subchapter), or (c) identified in the relevant Department of Defense contract or other funding authorization as being developed for both civil and military applications. 
 
Note 2 to paragraph (a)(5):
 Note 1 does not apply to defense articles enumerated on the U.S. Munitions List, whether in production or development. 
 
Note 3 to paragraph (a)(5):
 This provision is applicable to those contracts or other funding authorizations that are dated (one year after publication of the final rule), or later. 
 
Note 1 to paragraph (a):
 This paragraph does not include: Non-automatic and nonsemi-automatic rifles, carbines, and pistols between .50 (12.7 mm) and .72 caliber (18.288 mm) that are controlled on the CCL under ECCN 0A501; shotguns controlled on the CCL under ECCN 0A502; or black powder guns and armaments manufactured between 1890 and 1919 controlled on the CCL under ECCN 0A602.
 
Note 2 to paragraph (a):
 Guns and armament when integrated into their carrier (e.g., ships, ground vehicles, or aircraft) are controlled in the category associated with the carrier. Self-propelled guns and armament are controlled in USML Category VII. Towed guns and armament and stand-alone guns and armament are controlled under this category. 
 
(b) Flame throwers with a minimum effective range of 20 meters.
 
 
(c) [Reserved] 
 
*(d) Kinetic energy weapon systems specially designed for destruction or rendering mission-abort of a target. 
 
Note to paragraph (d):
 Kinetic energy weapons systems include but are not limited to launch systems and subsystems capable of accelerating masses larger than 0.1g to velocities in excess of 1.6 km/s, in single or rapid fire modes, using methods such as: Electromagnetic, electrothermal, plasma, light gas, or chemical. This does not include launch systems and subsystems used for research and testing facilities subject to the EAR, which are controlled on the CCL under ECCN 2B232. 
 
(e) Signature reduction devices specially designed for the guns and armament controlled in paragraphs (a), (b), and (d) of this category (e.g., muzzle flash suppression devices). 
 
(f)-(i) [Reserved] 
 
(j) Parts, components, accessories, and attachments, as follows:
 
  (1) Gun barrels, rails, tubes, and receivers specially designed for the weapons controlled in paragraphs (a) and (d) of this category; 
  (2) Sights specially designed to orient indirect fire weapons; 
  (3) Breech blocks for the weapons controlled in paragraphs (a) and (d) of this category; 
  (4) Firing mechanisms for the weapons controlled in paragraphs (a) and (d) of this category and specially designed parts and components therefor; 
  (5) Systems for firing superposed or stacked ammunition and specially designed parts and components therefor; 
  (6) Servo-electronic and hydraulic elevation adjustment mechanisms; 
  (7) Muzzle brakes; 
  (8) Bore evacuators; 
  (9) Independently powered ammunition handling systems and platform interface components as follows: (i) Mounts; (ii) Carriages; (iii) Gun pallets; (iv) Hydro-pneumatic equilibration cylinders; or (v) Hydro-pneumatic systems capable of scavenging recoil energy to power howitzer functions;
 
Note to paragraph (j)(9):
 For weapons mounts specially designed for ground vehicles, see Category VII. 
 
  (10) Recoil systems to mitigate the shock associated with the firing process of guns integrated into air platforms and specially designed parts and components therefor; 
  (11) Independent ammunition handling systems for the guns and armament controlled in paragraphs (a), (b), and (d) of this category; 
  (12) Ammunition containers/drums, ammunition chutes, ammunition conveyor elements, and ammunition container/drum entrance and exit units, specially designed for the guns and armament controlled in paragraphs (a), (b), and (d) of this category; 
  (13) Aircraft/gun interface units to support gun systems with a designed rate of fire greater than 100 rounds per minute and specially designed parts and components therefor; 
  (14) Prime power generation, energy storage, thermal management, conditioning, switching, and fuelhandling equipment, and the electrical interfaces between the gun power supply and other turret electric drive components specially designed for kinetic weapons controlled in paragraph (d) of this category; 
  (15) Kinetic energy weapon target acquisition, tracking fire control, and damage assessment systems and specially designed parts and components therefor; or 
  *(16) Any part, component, accessory, attachment, equipment, or system that: (i) Is classified; (ii) Contains classified software; or (iii) Is being developed using classified information. 
 
  ”Classified” means classified pursuant to Executive Order 13526, or predecessor order, and a security classification guide developed pursuant thereto or equivalent, or to the corresponding classification rules of another government or intergovernmental organization. 
 
(k) Technical data (see § 120.10 of this subchapter) and defense services (see § 120.9 of this subchapter) directly related to the defense articles described in paragraphs (a), (b), (d), (e), and (j) of this category and classified technical data directly related to items controlled in ECCNs 0A602, 0B602, 0D602, and 0E602 and defense services using the classified technical data. (See ITAR § 125.4 for exemptions.) 
 
(l)-(w) [Reserved] 
 
(x) Commodities, software, and technology subject to the EAR (see § 120.42 of this subchapter) used in or with defense articles.
 
Note to paragraph (x):
 Use of this paragraph is limited to license applications for defense articles where the purchase documentation includes commodities, software, or technology subject to the EAR (see 22 C.F.R. § 123.1(b).
 
Our next alert, and final installment in this four-part series, will review the proposed revisions to USML Category III (Ammunition/Ordnance) and BIS’s companion proposed revisions.
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(Source:
Volkov Law Group Blog, 7 June 2018. Reprinted by permission.)
 
* Author: Michael Volkov, Esq., Volkov Law Group,
mvolkov@volkovlaw.com, 240-505-1992.
 
There are an infinite number of ways that corporations can end up violating the law resulting in a government enforcement action.  There is no way to define the nature and extent of all of these possibilities.
 
But one thing for sure is that when a company’s leadership is not committed to compliance, falsely believes that its compliance program is effective, or simply ignores information suggesting that there are problems in a company, you can bet that the company will suffer some serious harms.  In many cases, these harms can have a devastating impact on the company, its finances, and most importantly, its reputation.
 
This breakdown in communications and understanding has two very distinct results – a failure to listen can lead to a failure to act; and a failure to listen can also lead to negative actions that cause tangible harm.  What do I mean by these two distinctions?
 
Let’s take an unfortunate scenario, which is becoming more common (at least in enforcement actions):  The internal audit department identifies a number of ongoing risks and serious problems occurring in the business.  When presented with these reports, senior leadership either ignores the impact of these reports, causes changes to be made to the reports, and otherwise seeks to dilute the implications of a failure to remedy the situation.  Unfortunately, if you parse through all the government enforcement actions, you will find numerous instances where internal audit uncovered part or all of a serious problem, they reported it, and then the internal audit reports were either changed or ignored.  (Kinross Gold Mining and VimpelCom are examples (
here and
here)).
 
The board’s audit committee has a specific responsibility to review these reports and ensure that appropriate remediation is taken. If a senior executive, such as the CEO or CFO, are able to derail this process, the company is sure to suffer. The integrity of the internal audit process is essential to a healthy functioning corporate governance environment.
 
A second scenario based on a failure to listen is a deeply troubling trend. When a corporation encourages employees to speak up, the company has to embrace the messenger and the message. This requires patient listening skills and commitment to addressing possible concerns. Forward-thinking companies know that soliciting employee concerns is an important means to prevent serious harm to the company.
 
Unfortunately, we are learning from recent compliance surveys that instances of retaliation against employees is increasing significant, especially in the immediate weeks after an employee raises a concern. Instead of listening, companies are actively punishing employees who raise concerns. This is untenable and ensures that any semblance of corporate trust and integrity will evaporate quickly, leaving only a culture of fear and distrust.
 
Employees expect corporate leaders to listen and respond appropriately, not to punish employees for raising important concerns. Of course, everyone knows that not every employee concern is significant but maintaining effective communications – listening and responding – is an important insurance policy for protecting the company. In retaliation situations, the company not only fails to listen but actively takes the situation and acts to the detriment of everyone involved.
 
These situations all sound theoretical but in fact they occur more often than everyone will admit. It is even more important for corporate leaders who are committed to trust and integrity to affirm their willingness and respond appropriately. Words are important but conduct is even more critical in these situations. One misstep can have a serious impact on a company’s culture and its ability to embrace its employees to ensure they are productive and committed to advancing the company’s objectives.
* * * * * * * * * * * * * * * * * * * *

TEEX/IM TRAINING EVENTS & CONFERENCES

TE_a3
15. 
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 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 14-15: Annapolis, MD; “
June 2018 Seminar Level III-Mastering ITAR/EAR Challenges
“; Export Compliance Solutions;
spalmer@exportcompliancesolutions.com
; 866-238-4018

* 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: Waltham, MA; “U.S. Trade with Canada“; Coalition Of New England Companies for Trade (CONECT)

* 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
 
# July 18-20: Raleigh, NC; “Export Controls Specialist Certification“; 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
# July 26-29: Chicago, IL; “Customs Broker 4-Day Bootcamp“; Global Trade Academy
# July 26-29: Princeton, NJ; “Customs Broker 4-Day Bootcamp“; Global Trade Academy

* 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 14-15: Atlanta, GA; “2018 Trade Symposium“; U.S. Customs and Border Protection
* 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 11-13: Detroit, MI; “
Export Controls Specialist Certification
“; Global Trade Academy 

* 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: Detroit, MI; ”
Advanced Classification of Machinery and Electronics“; 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 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 12: Webinar; ”
A Deep Dive into the Russia-Ukraine Sanctions Program“; The Volkov Law Group 

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) 

# Jun 28: Webinar; ”
International Letters of Credit“; Massachusetts Export Center

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_a116
. Bartlett’s Unfamiliar Quotations

(Source: Editor)

* Aeschylus (c. 525/524 – c. 456/455 BC; was an ancient Greek tragedian. He is often described as the father of tragedy. Academics’ knowledge of the genre begins with his work, and understanding of earlier tragedies is largely based on inferences from his surviving plays. According to Aristotle, he expanded the number of characters in the theater and allowed conflict among them; characters previously had interacted only with the chorus.)
  – “It is not the oath that makes us believe the man, but the man the oath.”
 
* Johnny Depp (John Christopher Depp II; 9 Jun 1963; is an American actor, producer, and musician.) 
  – “If you were waiting for the opportune moment … that was it.”
 
Friday funnies:
 
* A middle-aged man was working out in a health club when a sweet young thing walked in.  The man asked a nearby trainer, “Tell me, which machine should I use to impress that young lady over there?”  The trainer replied, “I would recommend the ATM machine in the lobby.”

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

EN_a217. 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: 6 June 2018: 83 FR 26204-26205: Unverified List (UVL); Correction 

 

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: 8 Jun 2018: Harmonized System Update 1809, containing 901 ABI records and 192 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_a318
. 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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