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18-0705 Thursday “Daily Bugle”

18-0705 Thursday “Daily Bugle”

Thursday, 5 July 2018

TOP
The Daily Bugle is a free daily newsletter from Full Circle Compliance, containing changes to export/import regulations (ATF, DOE/NRC, Customs, NISPOM, EAR, FACR/OFAC, FAR/DFARS, FTR/AES, HTSUS, and ITAR), plus news and events.  Subscribe 
here for free subscription. Contact us
for advertising inquiries and rates. [N.B. The Daily Bugle was not released on Wednesday, 4 July 2018, a U.S. Federal Holiday.]  

  1. Justice/ATF Extends Information Collection Activities Concerning FFL Out of Business Records Request (ATF F 5300.3A) 
  2. Justice/ATF Extends Information Collection Activities Concerning Identification Markings Placed on Firearms 
  3. Justice/ATF Extends Information Collection Activities Concerning Identification of Imported Explosives Materials 
  1. Items Scheduled for Publication in Future Federal Register Editions
  2. Commerce/BIS Grants Limited and Temporary Service Authorization Concerning ZTE
  3. State/DDTC: (No new postings.)
  4. EU Posts Corrigenda Concerning Syria Sanctions
  1. Bloomberg: “State Department Leaves Door Open to Iran Oil Import Exemptions”
  2. Channel News Asia: “China Court ‘Bans Sales’ of Chips from U.S. Firm Micron”
  3. Defense News: “Why Have French Arms Exports Dropped 50 Percent Since Last Year?”
  4. Lawyerly: “Sydney Exec Fights Extradition to U.S. Over Iran Weapons Embargo Violations”
  5. Reuters: “China’s ZTE Corp Names C-Suite Executives in Step Toward U.S. Ban Lift”
  6. ST&R Trade Report: “Trump May be Seeking Ways to Skirt WTO, Increase Tariffs”
  1. J.E. Bartlett: “BIS Gives ZTE a 30-Day Pass”
  2. S. Barajas, R.S. Rodriguez & F. Ponce Nava Cortés: “Mexican Ministry of Economy Prohibits the Import and Export of Various Goods From and To North Korea and Iran”
  3. S. Shirk: “How to Shield Silicon Valley”
  1. Bartlett’s Unfamiliar Quotations 
  2. Are Your Copies of Regulations Up to Date? Latest Amendments: ATF (15 Jan 2016), Customs (12 Jun 2018), DOD/NISPOM (18 May 2016), EAR (6 Jun 2018), FACR/OFAC (29 Jun 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

(Source: 
Federal Register, 5 Jul 2018.) [Excerpts.] 
 
83 FR 31419-31420: Agency Information Collection Activities; Proposed eCollection eComments Requested; Revision of a Currently Approved Collection; FFL Out of Business Records Request–ATF F 5300.3A
 
* AGENCY: Bureau of Alcohol, Tobacco, Firearms and Explosives, Department of Justice.
* ACTION: 30-day notice.
* SUMMARY: The Department of Justice (DOJ), Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), will submit the following information collection request to the Office of Management and Budget (OMB) for review and approval in accordance with the Paperwork Reduction Act of 1995. The proposed collection OMB 1140-0036 (FFL Out of Business Records Request–ATF F 5300.3A) is being revised due to minor changes to ATF F 5300.3A, as well as an increase in the in respondents, burden hours, and cost since the last renewal in 2016. The proposed information collection was previously published in the Federal Register, on May 2, 2018, allowing for a 60-day comment period.
* DATES: Comments are encouraged and will be accepted for an additional 30 days until August 6, 2018.
* FOR FURTHER INFORMATION CONTACT: If you have additional comments, particularly with respect to the estimated public burden or associated response time, have suggestions, need a copy of the proposed information collection instrument with instructions, or desire any additional information, please contact Kris Howard, Program Manager, National Tracing Center Division, either by mail at 244 Needy Road, Martinsburg, WV 25405, by email at 
kris.howard@atf.gov, or by telephone at 304-260-3683.
* SUPPLEMENTARY INFORMATION: … 
  – The Title of the Form/Collection: FFL Out of Business Records Request
  – The agency form number, if any, and the applicable component of the Department sponsoring the collection:
  – Form number: ATF F 5300.3A.
  – Component: Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Department of Justice.
  – Abstract: The form is used by ATF to notify licensees that go out of business to send their firearms related business records to the ATF, if the business discontinuance is absolute, or to allow the licensee to notify ATF of the successor who will be maintaining control of their firearms related records. The questions are simple and a return address is supplied. The format is easy for the user to list the required information ATF needs to perform its functions in regard to the law. …
  If additional information is required contact: Melody Braswell, Department Clearance Officer, United States Department of Justice, Justice Management Division, Policy and Planning Staff, Two Constitution Square, 145 N Street NE, 3E.405A, Washington, DC 20530.
 
  Dated: June 29, 2018.
Melody Braswell, Department Clearance Officer for PRA, U.S. Department of Justice. 

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

EXIM_a2

2.
Justice/ATF Extends Information Collection Activities Concerning Identification Markings Placed on Firearms
(Source: 
Federal Register, 5 Jul 2018.) [Excerpts.] 
 
83 FR 31420-31421: Agency Information Collection Activities; Proposed eCollection eComments Requested; Identification Markings Placed on Firearms
 
* AGENCY: Bureau of Alcohol, Tobacco, Firearms and Explosives, Department of Justice.
* ACTION: 30-day notice.
* SUMMARY: The Department of Justice (DOJ), Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), will submit the following information collection request to the Office of Management and Budget (OMB) for review and approval in accordance with the Paperwork Reduction Act of 1995. The proposed information collection OMB 1140-0050 (Identification Markings Placed on Firearms) is being revised due to a change in burden, since there is an increase in the number of respondents, although there is a reduction in responses and total burden hours from the previous renewal in 2015, due to less firearms being imported. The proposed information collection was previously published in the Federal Register on May 2, 2018, allowing for a 60-day comment period.
* DATES: Comments are encouraged and will be accepted for an additional 30 days until August 6, 2018.
* FOR FURTHER INFORMATION CONTACT: If you have additional comments, particularly with respect to the estimated public burden or associated response time, have suggestions, need a copy of the proposed information collection instrument with instructions, or desire any other additional information, please contact Rinell Lawrence, Firearms Industry Programs Branch (FIPB) either by mail at 99 New York Avenue NE, Washington, DC 20226, by email at 
fipb-informationcollection@atf.gov, or by telephone at 202-648-7190. Written comments and/or suggestions can also be directed to the Office of Management and Budget, Office of Information and Regulatory Affairs, Attention Department of Justice Desk Officer, Washington, DC 20503 or sent to 
OIRA_submissions@omb.eop.gov.
* SUPPLEMENTARY INFORMATION: … 
  – The Title of the Form/Collection: Identification Markings Placed on Firearms.
  – The agency form number, if any, and the applicable component of the Department sponsoring the collection:
  – Form number: None.
  – Component: Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Department of Justice.
  – Abstract: Each licensed firearms manufacturer or licensed firearm importer must legibly identify each firearm by engraving, casting, stamping (impressing), or otherwise conspicuously placing on the frame or receiver an individual serial number; which will be used to facilitate investigations about the criminal use of firearms. … 
  If additional information is required contact: Melody Braswell, Department Clearance Officer, United States Department of Justice, Justice Management Division, Policy and Planning Staff, Two Constitution Square, 145 N Street NE, 3E.405A, Washington, DC 20530.
 
  Dated: June 29, 2018.

Melody Braswell, Department Clearance Officer for PRA, U.S. Department of Justice.

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

EXIM_a3

3.
Justice/ATF Extends Information Collection Activities Concerning Identification of Imported Explosives Materials
(Source: 
Federal Register, 5 Jul 2018.) [Excerpts.] 
 
83 FR 31418-31419: Agency Information Collection Activities; Proposed eCollection eComments Requested; Identification of Imported Explosives Materials
 
* AGENCY: Bureau of Alcohol, Tobacco, Firearms and Explosives, Department of Justice.
* ACTION: 30-day notice.
* SUMMARY: The Department of Justice (DOJ), Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), will submit the following information collection request to the Office of Management and Budget (OMB) for review and approval in accordance with the Paperwork Reduction Act of 1995. The proposed information collection OMB 1140-0062 (Identification of Imported Explosives Materials) is being revised due to a change in burden, since there is an increase in the number of respondents, responses, and total burden hours since the last renewal in 2015. The proposed information collection is also being published to obtain comments from the public and affected agencies. The proposed information collection was previously published in the Federal Register, on May 2, 2018, allowing for a 60-day comment period.
* DATES: Comments are encouraged and will be accepted for an additional 30 days until August 6, 2018.
* FOR FURTHER INFORMATION CONTACT: If you have additional comments, particularly with respect to the estimated public burden or associated response time, have suggestions, need a copy of the proposed information collection instrument with instructions, or desire any other additional information, please contact Anita Scheddel, Program Analyst, Explosives Industry Programs Branch, either by mail 99 New York Ave. NE, Washington, DC 20226, or by email at 
eipb-informationcollection@atf.gov, or by telephone at 202-648-7158. Written comments and/or suggestions can also be directed to the Office of Management and Budget, Office of Information and Regulatory Affairs, Attention Department of Justice Desk Officer, Washington, DC 20503 or sent to 
OIRA_submissions@omb.eop.gov.
* SUPPLEMENTARY INFORMATION: … 
  – Type of Information Collection: Revision of a currently approved collection.
  – The Title of the Form/Collection: Identification of Imported Explosives Materials
  – Form number: None.
  – Component: Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Department of Justice.
  – Abstract: The information is necessary to ensure that explosive materials can be effectively traced. All licensed importers are required to identify by marking all explosive materials they import for sale or distribution. … 
  If additional information is required contact: Melody Braswell, Department Clearance Officer, United States Department of Justice, Justice Management Division, Policy and Planning Staff, Two Constitution Square, 145 N Street NE, 3E.405A, Washington, DC 20530.
 
  Dated: June 29, 2018.
Melody Braswell, Department Clearance Officer for PRA, U.S. Department of Justice.

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

OGSOTHER GOVERNMENT SOURCES

OGS_a14. Items Scheduled for Publication in Future Federal Register Editions
(Source: Federal Register)

* Treasury/OFAC; NOTICES; Blocking or Unblocking of Persons and Properties [Publication Date: 6 Jul 2018.]
* * * * * * * * * * * * * * * * * * * *

OGS_abc25. 
Commerce/BIS Grants Limited and Temporary Service Authorization Concerning ZTE
(Source: 
Commerce/BIS, 2 Jul 2018.) [Summary.]
 
The Director of the Office of Exporter Services, DOC/BIS, posted a Limited Authorization dated 2 July 2018, pursuant to 15 CFR 764.3(a)(2), allowing until 1 August 2018 (1) the maintenance of ZTE networks and equipment lawfully obtained before 15 April 2018, (2) the service and support of ZTE telephone handsets, (3) the disclosure of information to ZTE regarding security vulnerabilities in items owned, possessed, or controlled by ZTE, and (4) the payment to or from ZTE for those authorized transactions. 
 
See the document 
HERE.
[See also today’s commentary by James E. Bartlett III, item #14.]

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

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

 
Corrigenda

Corrigendum to Council Implementing Regulation (EU) 2018/774 of 28 May 2018 implementing Regulation (EU) No 36/2012 concerning restrictive measures in view of the situation in Syria ( OJ L 131, 29.5.2018 )

Corrigendum to Council Decision (CFSP) 2018/778 of 28 May 2018 amending Decision 2013/255/CFSP concerning restrictive measures against Syria ( OJ L 131, 29.5.2018 )

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

NWSNEWS

(Source: 
Bloomberg, 3 Jul 2018.) [Excerpts.] 
 
The U.S. will grant waivers “on a case-by-case basis” so countries can buy Iranian oil after American sanctions are reimposed, a State Department official said, softening the Trump administration’s stance as it seeks to isolate the Islamic Republic after quitting the Iran nuclear deal.
 
Brian Hook, the State Department’s director of policy planning, said three times at a briefing Monday that the U.S. isn’t “looking” to make any exceptions for countries that import Iranian oil after the Nov. 4 date the U.S. has set for when sanctions will snap back into place. But he suggested countries that are reducing oil imports from Iran could get relief. … 

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

(Source: 
Channel News Asia, 4 Jul 2018.) [Excerpts.] 
 
A Chinese technology firm embroiled in a patent dispute with US chip giant Micron said Wednesday (Jul 4) that a court had ruled in its favor and ordered an immediate halt of several Micron products in China.
 
According to the state-owned Fujian Jinhua Integrated Circuit Co, a court in the southeastern city of Fuzhou has ruled that Micron must stop sales of more than a dozen solid-state drives, memory sticks and chips. … 
 
The case comes amid increasing trade friction between the world’s top two economies, with billions of dollars in fresh trade tariffs due to come into force on Friday.
 
Earlier this week, U.S. authorities blocked a seven-year application from China Mobile to enter the domestic market, citing national security concerns. … 
 
Earlier this year, Washington banned Chinese telecom and smartphone giant ZTE from purchasing crucial U.S. components for seven years, threatening its survival, as punishment for breaking US export controls.
 
In a politically charged settlement reached last month, Washington then temporarily allowed ZTE to resume some activities while it works to meet conditions set by U.S. officials.

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

(Source: 
Defense News
, 5 Jul 2018.) [Excerpts.]
 
Electoral uncertainty and hard times for oil producers led to a halving of French arms exports last year, the annual government report to parliament showed July 4.
 
France won in 2017 orders for arms exports worth €6.9 billion (U.S. $8 billion), half the €14 billion booked in the previous year, the report on foreign weapon sales said.
 
That sharp drop in foreign weapon sales reflected “greater constraints” in 2017, notably nations waiting to see the outcome of the French elections and an economic slowdown among most oil producers, the report said. The latter led many hydrocarbon-rich countries to postpone some arms deals. … 
 
  “This export strategy, in close ties with foreign policy, defense and security of France, is conducted with the strict respect of French commitment to international agreements, and governed by a very strict control of exports,” the report said. 
 

Besides access to Western technology, “a French solution presents a real autonomy in use,” the report said. … 

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

(Source: 
Lawyerly, 4 Jul 2018.) [Excerpts.] 
 
A Sydney executive is fighting plans to extradite him to the U.S. to face charges that he supplied military technology to Iran in violation of a weapons embargo.
 
David Levick has filed a lawsuit against the United States and the Attorney-General for the Commonwealth of Australia, arguing the Attorney-General failed to properly consider whether he had committed extraditable offenses when it decided June 8 to surrender him to the U.S.
 
He’s seeking a court order blocking the Commonwealth from taking any steps to extradite him to the U.S. until the conclusion of the court proceeding. … 
 
The Attorney-General has promised not the surrender Levick before June 29.
 
Levick and his company, ICM Components Inc., were indicted by a U.S. grand jury in 2012 for allegedly conspiring to export military technology to an Iranian company from the US, including parts used for missiles, drones, torpedoes and helicopters.
 
The Department of Justice alleges between March 2007 and March 2009, Levick flouted the Iran weapons ban by placing orders for aircraft parts with U.S. companies on behalf of an unnamed Iranian company.
 
Levick and his company used different means to conceal their illegal acts, the DOJ claims, including using a broker in Florida to place the orders; structuring payments to avoid restrictions on Iranian financial institutions by other countries; and concealing the goods’ final destination from manufacturers, distributors, shippers, freight forwarders and customs.
 
Levick and ICM each face five counts, four counts of illegally exporting goods to an embargoed nation in violation of the International Emergency Economic Powers Act, and one count of conspiracy to defraud the US and to violate the IEEPA and the Arms Export Control Act. They also face forfeiture of at least $199,227.41.
 
Levick faces up to five years in prison for the conspiracy charge and 20 years for each count of violating the IEEPA. … 
 
A hearing on the bid to block the extradition has been scheduled for August 3 in Sydney. … 
 

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

NWS_512
.
Reuters: “China’s ZTE Corp Names C-Suite Executives in Step Toward U.S. Ban Lift”
(Source: 
Reuters, 5 Jul 2018.) [Excerpts.] 
 
ZTE Corp has appointed a new team of top executives including a CEO to comply with a deal it made with the United States to end a ban on U.S. firms supplying parts to China’s second-biggest telecommunications equipment maker.
 
ZTE, in an exchange filing on Thursday, named a former head of its Germany business, Xu Ziyang, as its new chief executive. … 
 
ZTE had promised to overhaul its management within 30 days of agreeing a $1.4 billion settlement with U.S. authorities in June, aimed at lifting a seven-year supplier ban. It received a reprieve from the ban earlier this week to continue existing business from July 2 to Aug. 1.
 
ZTE, which relies on U.S. suppliers for core components, had to cease major operations in April after authorities imposed the ban, saying the firm broke an agreement to discipline executives who conspired to evade U.S. sanctions on Iran and North Korea.
 
As part of the settlement, ZTE agreed to pay a $1 billion fine, put $400 million in escrow, and hire a U.S.-appointed compliance monitor. It also agreed to replace its board, remove all members of its leadership at or above senior vice president level along with any executives associated with the wrongdoing, and punish responsible executives. … 

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

NWS_613
.
ST&R Trade Report: “Trump May be Seeking Ways to Skirt WTO, Increase Tariffs” 
(Source: 
Sandler, Travis & Rosenberg Trade Report, 5 July 2018.)
 
President Trump is reportedly considering a draft bill that would give him authority to ignore World Trade Organization rules and increase U.S. import tariffs. However, any such bill would have major ramifications and is not likely to be approved by Congress.
 
According to press reports, the president believes the WTO has been detrimental to U.S. interests, and in fact was “designed by the rest of the world” to be that way, despite the fact that the U.S. has won the vast majority of the cases it has initiated at the WTO since its inception in 1995. He is also known to be focused on lowering the U.S. trade deficit through what he calls “reciprocal” trade; i.e., imposing the same tariffs on U.S. imports from specific countries as they impose on U.S.-made goods. His ability to put this into practice, however, is limited by WTO rules that prevent the U.S. from arbitrarily increasing tariffs on goods from individual countries or raising tariffs above agreed rates.
 
In response, a draft bill that Trump was reportedly briefed on in May would essentially ignore those rules by providing that if the president determines that a foreign country imposes a tariff or non-tariff barrier on a particular good that is “significantly higher” than such measures imposed by the U.S. on that good, the president may (a) negotiate an agreement to lower that tariff or eliminate the non-tariff barrier or (b) increase the U.S. import duty equal to the foreign tariff or the effective duty rate imposed by the non-tariff barrier. If the foreign country retaliates with its own tariff increase, the president could follow suit. Before taking any such action the president would have to consult with the Senate Finance and House Ways and Means committees, publish a notice in the Federal Register, and seek advice from trade advisory committees. However, it does not appear that approval from any of these sources would be necessary for tariff increases to become effective.
 
According to press reports, any such bill stands little chance of being enacted into law. In that case the president could consider withdrawing the U.S. from the WTO altogether, but that appears to be unlikely as well, at least at this point. An Axios article noted that the president could not unilaterally declare a withdrawal, which U.S. law “states quite plainly … requires an act of Congress.” In addition, the president reportedly said over the weekend that “I’m not talking about pulling out” of the WTO, a claim reiterated by several administration officials, though he warned July 2 that if “if they don’t treat us properly, we will be doing something.” On the other hand, a Business Insider article cited Council on Foreign Relations senior fellow Edward Alden as saying a withdrawal could be moot because the president “has already shown that he can pursue the policies he wants without regard to WTO rules.”

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

COMMCOMMENTARY

COMM_a0
14.
J.E. Bartlett: “BIS Gives ZTE a 30-Day Pass”

(Source: Author, 5 Jul 2018.)


* Author: Jim Bartlett, Esq., Principal, Law Office of James E. Bartlett III, PLLC, and Partner, Full Circle Compliance, 202-802-0646,
JEBartlett@JEBartlett.com
.

On 2 July 2018, a 
Limited Authorization pursuant to 15 CFR 764.3(a)(2) was signed by the Director of the Office of Exporter Services, DOC/BIS. [See item #5 above.]  The Limited Authorization is in effect a “30-day pass” allowing (1) the maintenance of ZTE networks and equipment lawfully obtained before 15 April 2018, (2) the service and support of ZTE telephone handsets, (3) the disclosure of information to ZTE regarding security vulnerabilities in items owned, possessed, or controlled by ZTE, and (4) the payment to or from ZTE for those authorized transactions.  It does not does not amend the 
ZTE Denial Order of 15 April 2018 or the 
Superseding Order of  8 June 2018.  
Although the Superseding Order provided that the Denial Order would be lifted upon ZTE’s payment of $1 Billion fine and deposit of a $400,000 escrow amount, BIS has not yet announced the lifting of the Denial Order.
The Limited Authorization authorizes the following four activities previously prohibited by the BIS ZTE denial order of 15 April 2018.  These activities may be performed only until 1 August 2018.  Below is a summary of the permitted activities:
   (1) Maintaining and supporting existing networks and equipment under contracts and agreements with ZTE that were executed before 15 April 2018.  This includes providing software updates and patches.
   (2) Servicing and supporting ZTE telephone handsets that were available to the public before 15 April 2018.  This includes providing software updates and patches.
   (3) Disclosing information to ZTE regarding security vulnerabilities in items owned, possessed, or controlled by ZTE if it is related to maintaining the integrity and reliability of communications networks and equipment.
   (4) Making payments to and receiving payments from ZTE for the specific transactions permitted by this Limited Authorization.
All permitted transactions are subject to the standard licensing requirements of the EAR.  All other exports, reexports, in-country transfers, and activities prohibited by the ZTE denial order of 15 April 2018 that are not specifically authorized by the Limited Authorization remain prohibited unless authorized in writing by DOC/BIS. 

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

COMM_a01
15. 
S. Barajas, R.S. Rodriguez & F. Ponce Nava Cortés: “Mexican Ministry of Economy Prohibits the Import and Export of Various Goods From and To North Korea and Iran”

(Source: 
Basham, Ringe & Correa, S.C., 3 Jul 2018.) 
 
* Authors: Sergio Barajas Perez, Esq., 
barajas@basham.com.mx; Roberto Serralde Rodriguez, Esq. 
rserralde@basham.com.mx; and Felix Ponce Nava Cortes, Esq., 
fponce@basham.com.mx. All of Basham, Ringe & Correa, S.C. 
 
The Mexican Ministry of Economy published the “Agreement that establishes preventive actions to export or import of various goods to certain countries, entities and persons”, in compliance with various Resolutions adopted by the Security Council of the United Nations (UN).
 
Our country, in compliance with the obligations assumed by the UN Security Council, adopts the following measures:
  – Prohibit the import and export of some goods with origin or destination to the Democratic People’s Republic of Korea and the Islamic Republic of Iran.
  – Eliminate the prohibition of other goods in the aforementioned agreement, with origin or destination to the Democratic People’s Republic of Korea.
 
To access the goods covered under the agreement (in Spanish), please go 
here. The Agreement entered into force on June 15, 2018.

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

COMM_a3
16.
S. Shirk: “How to Shield Silicon Valley”

(Source: 
Bloomberg, 4 Jul 2018.) [Excerpts.] 
 
* Author: Susan Shirk is chair of the 21st Century China Center at the University of California at San Diego School of Global Policy and Strategy.
 
When it comes to critical technologies, the U.S. needs to vet Chinese buyers more carefully.
 
President Donald Trump thankfully appears to have 
backed off his threat to block all Chinese investment in critical U.S. technologies, looking instead to Congress to develop a more robust investment screening system.  But the risk of this technological cold war spinning out of control, to the detriment of both countries, remains. Lawmakers must strike a balance between preserving economic openness and protecting national security, which means thinking both smaller and bigger than they seem to be doing thus far. 
 
A bill making its way through Congress, the Foreign Investment Risk Review Modernization Act, is meant to enhance scrutiny of investments that could lead to potential foreign government control over key U.S. technologies. An interagency body known as the 
Committee on Foreign Investment in the United States (CFIUS) is tasked with deciding which investments look problematic, on a case-by-case basis. … 
 

To achieve that balance, legislators should adopt a “small yard, high fence” approach, to borrow a concept proposed some years ago by former Defense Secretary Robert Gates in reference to export controls. … 

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

ENEDITOR’S NOTES

 

Nathaniel Hawthorne (4 Jul 1804 – 19 May 1864; was an American novelist, dark romantic, and short story writer. Much of Hawthorne’s writing centers on New England, featuring moral metaphors with an anti-Puritan inspiration. His themes often center on the inherent evil and sin of humanity, and his works often have moral messages and deep psychological complexity. His published works include novels, short stories, and a biography of his college friend Franklin Pierce, the 14th President of the United States. His best-known work is The Scarlet Letter.)
 – “Caresses, tender expressions of one sort or another, are as necessary to the life of the affections as leaves are to the life of a tree. If they are wholly restrained, love will die at the roots.”
 
P. T. Barnum(Phineas Taylor Barnum; 5July 1810 – 7 Apr 1891; was an American showman, politician, and businessman remembered for promoting celebrated hoaxes and for founding the Barnum & Bailey Circus.)
  – “Without promotion, something terrible happens… nothing!”

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

EN_a318
. 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 Jun 2018: 83 FR 27380-27407: Air Cargo Advance Screening (ACAS)
 
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: 29 June 2018: 83 FR 30541-30548: Global Magnitsky Sanctions Regulations; and 83 FR 30539-30541: Removal of the Sudanese Sanctions Regulations and Amendment of the Terrorism List Government Sanctions Regulations 

 
*
FOREIGN TRADE REGULATIONS (FTR)
: 15 CFR Part 30
  – Last Amendment: 24 Apr 2018: 3 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 Apr 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 websiteBITAR 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.  

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EN_a0319
Weekly Highlights of the Daily Bugle Top Stories

(Source: Editor) 

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

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

EPEDITORIAL POLICY

* 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 of this newsletter 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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