 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 .
|
| |
ITEMS FROM TODAY’S FEDERAL REGISTER |
[No items of interest noted today.] * * * * * * * * * * * * * * * * * * * *
|
OTHER GOVERNMENT SOURCES |
1 . Items Scheduled for Publication in Future Federal Register Editions * Commerce; NOTICES; Hearings; National Security Investigation of Imports of Automobiles, including Cars, SUVs, Vans and Light Trucks, and Automotive Parts; Change of Date [Publication Date: 16 Jul 2018.] * DHS/CBP; NOTICES; Meetings: Commercial Customs Operations Advisory Committee [Publication Date: 16 Jul 2018.] * * * * * * * * * * * * * * * * * * * *
|
2. Commerce/BIS Issues an Order Terminating the Denial Order Issued on 15 Apr 2018 Against ZTE (Source: Commerce/BIS, 13 Jul 2018.) [Summary.] * Respondent: Zhongxing Telecommunications Equipment Corporation of Shenzhen, China, and ZTE Kangxun Telecommunications Ltd. of Hi-New Shenzhen, China (collectively, “ZTE”) * Order: ZTE has made full and timely payment of the $1,000,000,000 and has complied with the escrow requirements relating to the $400,000,000 suspended portion of the civil penalty. Therefore, BIS is hereby terminating the 15 April 2018 Order, and BIS will remove ZTE from the Denied Persons List. This order does not modify any provision of the Superseding Order or the Superseding Settlement Agreement. * Date of Order: 13 Jul 2018. [Editor’s Note: The 15 April 2018 Order is available here.] * * * * * * * * * * * * * * * * * * * *
|
3. State/DDTC: (No new postings.) * * * * * * * * * * * * * * * * * * * *
|
NEWS |
4. Deutsche Welle: “German Firm Probed Over Suspected Illegal Shipment of Euthanasia Drug to U.S.” (Source: Deutsche Welle, 12 Jul 2018.) [Excerpts.] A German medical firm is suspected of illegally shipping several tons of a solution that is used to euthanize animals to the United States. The solution contains an ingredient also used to execute prisoners. The prosecutor’s office in the northern town of Oldenburg is investigating German veterinary pharmaceutical company VET Pharma Friesoythe GmbH for shipping a liquid drug used for euthanizing dogs to the United States illegally, according to an investigative report by German public broadcaster NDR and
Süddeutsche Zeitung (SZ). The solution in question, called “Beuthanasia-D,” contains pentobarbital, which is used in lethal injection cocktails. The trade of pentobarbital is highly regulated by European Union anti-torture directives and is subject to strict export restrictions. Research by NDR and SZ found that prosecutors are investigating the chief executive of VET Pharma on suspicion of a commercial breach of the German Foreign Trade and Payments Act. Several other employees are also being investigated in the case. … * * * * * * * * * * * * * * * * * * * *
|
British Prime Minister Theresa May reached a “collective” agreement with the cabinet on how the United Kingdom could potentially carry out a smooth Brexit. May had gathered the twenty-six cabinet ministers at her private country residence for over twelve hours to discuss the future relationship of the UK and EU post-Brexit. A common position was finally reached, now two years after the referendum. “This is a proposal that I believe will be good for the UK and good for the EU, and I look forward to it being received positively,” said May. Key items in the ministerial agreement include: – Maintaining a “common rulebook” for all goods with the EU after Brexit on March 29, 2019 – Forming a free trade area that would allow goods and agricultural products to move across borders without delays – Establishing a “join institutional framework” to interpret UK-EU agreements – Treating the borders between the UK and EU as a “combined customs territory” – Ending the free movement of people between the UK and EU and instead creating a “mobility framework” to allow UK and EU citizens to travel and apply for study and work You can read more about Brexit, as well as the UK’s new ministerial agreement, on BBC, MercoPress, and Tribune India. * * * * * * * * * * * * * * * * * * * *
|
6. NZHerald.co.nz: “University Links with China Raise Questions” (Source: NZHerald.co.nz, 13 Jul 2018.) [Excerpts.] Is our university system being used to augment China’s military development? This is the question western government around the world are grappling with, and now New Zealand is too. The first outward sign of this was news the Security Intelligence Service and the New Zealand Immigration Service is investigating a Chinese PhD student, Hu Bin at Auckland University of Technology. His research on 5G technology has military applications. … Hu’s research apparently came to attention because under the Strategic Goods Regulations, New Zealand entities – including universities – are prohibited from the development, production, or deployment of any goods or know-how with a military end use unless a permit has been obtained from the Secretary of Foreign Affairs and Trade. New Zealand’s Strategic Goods Regulations are based on the Wassenaar Arrangement, and the control measures of the Australia Group, the Nuclear Suppliers Group and the Missile Technology Control Regime. … * * * * * * * * * * * * * * * * * * * *
|
7. Reuters: “U.S. Lifts Ban on Suppliers Selling to China’s ZTE” (Source: Reuters, 13 Jul 2018.) [Excerpts.] The U.S. Department of Commerce on Friday lifted a ban on U.S. companies selling goods to ZTE Corp, allowing China’s second-largest telecommunications equipment maker to resume business. The Commerce Department removed the ban shortly after ZTE deposited $400 million in a U.S. bank escrow, as part of a settlement reached last month. The settlement also included a $1 billion penalty ZTE paid to the U.S. Treasury in June. “The department will remain vigilant as we closely monitor ZTE’s actions to ensure compliance with all U.S. laws and regulations,” Commerce Secretary Wilbur Ross said in an emailed statement that described the penalties and other conditions as the strictest ever imposed in such a case. The terms “will allow the department to protect U.S. national security,” Ross said. …
ZTE, which relies on U.S. components for its smart phones and networking gear, ceased major operations after the ban was ordered in April. The punishment came after the company made false statements about disciplining 35 employees involved with violating U.S. sanctions and illegally shipping U.S.-origin goods to Iran and North Korea, Commerce officials said. ZTE pleaded guilty and settled with Commerce last year over the sanctions violations.
ZTE paid $892 million in penalties to the United States last year in connection with the 2017 settlement and guilty plea. The latest $1.4 billion deal comes on top of that. The $400 million will remain in escrow for as long as 10 years to provide the U.S. government access to the money if ZTE violates the June settlement. On Thursday, ZTE’s Hong Kong shares surged 25 percent after Reuters broke news the United States had signed an escrow agreement that paved the way for ZTE to deposit the $400 million. ZTE also replaced its board of directors and senior management, as required by the June settlement.
It will now operate with a 10-year suspended ban hanging over its head, which the United States can activate if it finds new violations. The current ban could have lasted seven years. A group of Republican and Democratic U.S. senators on Thursday sent a letter seeking to reinstate penalties on ZTE Corp. Many U.S. lawmakers see the company as a national security threat. The U.S. Senate paved the way for a showdown with Trump over the issue last month, when it passed an annual defense policy bill with an amendment attempting to reverse the deal. Its fate is unclear. The measure could be killed when Senate and House of Representatives meet in the coming weeks to forge a compromise version of the bill. Reuters reported on the U.S. demands for a deal on June 1, and on June 5, revealed that ZTE had signed a preliminary agreement with the Commerce Department, along with the fine and other terms. It also broke news of the ban in April.
The Commerce Secretary announced the settlement on June 7. A U.S. investigation into ZTE was launched after Reuters reported in 2012 that the company had signed contracts to ship hardware and software worth millions of dollars to Iran from some of the best-known U.S. technology companies. * * * * * * * * * * * * * * * * * * * *
|  |
COMMENTARY |
You’ve made the sale, done the leg-work, written up the documentation, completed and submitted the export license application — then a few weeks later, Hooray!
Your export license is approved. You read it cautiously, however, apprehensive about the limitations or stipulations that the agency might have attached to its authorization. The Department of Commerce calls them “Conditions,” Department of State calls them “Provisos,” but the meaning is the same. Your export is good to go, provided you meet certain requirements. These conditions or provisos are issued as part of the license to the applicant. The apprehension about provisos is because they might entail a significant restriction or reduction to your proposed export undertaking, whether goods, services, or technology. Provisos Can Run the Gamut Some are only standard conditions of issuance, attached to most or all licenses. Others might be fully expected and reasonable, even easy, to accommodate. Some, however, might be unexpectedly restrictive, or over-restrictive, to your intended action, work, or delivery. Or might be difficult to understand, and require clarification from the agency. The good news is that, if you think you have an excessively restrictive proviso, or that a proviso was given in error, or does not reflect the information given in your application, there is an appeal procedure available called a ‘Proviso Reconsideration’ request. This entails a re-submission of the license or agreement application with exactly the same information as before, but showing ‘Proviso Reconsideration’ in the purpose block. Pointing Out the Predicament of Your Potentially Problematic Proviso To this you attach a letter of explanation, in which you provide the wording of the original proviso with a statement of the problem about it. Then offer a recommendation on how the proviso should be revised, or that it should be deleted, for the reasons explained and justified in your letter. Acknowledge to yourself that the restrictive proviso might be your own fault, on account of insufficient or poorly prepared information in the original application. Sometimes provisos are concerned with the actions of a foreign party or end-user, which you are sometimes obliged to share with the foreign party, and other times (if classified, for instance) you are required not to share. Conditions and provisos being an integral part of the license, measures must be put in place to track and document proviso compliance. Provisos might require additional documentation or record-keeping, which must be immediately facilitated. Lastly, the same attention must be given to any additional work, procedures, or arrangements that you said you were going to do in the original application, which may not be repeated back in an added condition on the license. If you said you needed to do it, then that was in account in approving your license. * * * * * * * * * * * * * * * * * * * *
| |
EX/IM TRAINING EVENTS & CONFERENCES |
9. Full Circle Compliance Presents “Awareness Course U.S. Export Controls: ITAR & EAR From a Non-U.S. Perspective “, 2 Oct in Bruchem, the Netherlands (Source: Full Circle Compliance, events@fullcirclecompliance.eu.) Our next academy course is designed for beginning compliance officers and professionals who want to enhance their knowledge on the latest ITAR/EAR requirements and best practices. The course will cover multiple topics regarding U.S. export controls that apply to organisations outside the U.S., such as: the regulatory framework, including the latest and anticipated regulatory amendments, key concepts and definitions, classification and licensing requirements, handling (potential) non-compliance issues, and practice tips to ensure compliance with the ITAR and EAR.
* What: Awareness Course U.S. Export Controls: ITAR & EAR From a Non-U.S. Perspective * When: 2 Oct 2018, 9.00 AM – 5.00 PM (CEST) * Where: Landgoed Groenhoven, Bruchem, the Netherlands * Instructors: Ghislaine Gillessen, Mike Farrell, and Alexander P. Bosch * Information & Registration: HERE or e-mail events@fullcirclecompliance.eu * * * * * * * * * * * * * * * * * * * * |
10. List of Approaching Events – 10 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 # Jul 19: London, UK; “Advanced Importing“; UK Institute of Export and International Trade * Sep 13-17: Galveston, TX (Cruise); “ICPA @ SEA!“; International Compliance Professionals Association (ICPA) * Sep 19: Washington, D.C.; “ DDTC In-House Seminar“; Department of State (Registration: Aug 10 – Aug 31; first come, first served) * Oct 21-23: Grapevine, TX; “2018 Fall Conference“; International Compliance Professionals Association (ICPA) # Oct 31 – Nov 1: Singapore; “7th Asia Summit on Anti-Corruption”; American Conference Institute 2019 * May 5-7: Savannah, GA; “2019 Spring Seminar“; National Association of Foreign Trade Zones (NAFTZ) Webinars * * * * * * * * * * * * * * * * * * * * | |
| EDITOR’S NOTES |
11 . Bartlett’s Unfamiliar Quotations (Source: Editor)
*
Charles Scribner, Jr.(Charles Scribner IV; 13 Jul 1921 – 11 Nov 1995, also known as Charles Scribner Jr., was the head of the Charles Scribner’s Sons publishing company. He succeeded his father, Charles Scribner III, in 1952 as chief of Charles Scribner’s Sons, which had been founded by his great-grandfather, Charles Scribner I, in 1846. He oversaw the operations until 1984, when the company was bought out by Macmillan Publishing.) – “Language is the soul of intellect, and reading is the essential process by which that intellect is cultivated beyond the commonplace experiences of everyday life.” * * * * * * * * * * * * * * * * * * * *
|
12. 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. – 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. – 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 – 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. – HTS codes for AES are available here. – HTS codes that are not valid for AES are available here. – 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. * * * * * * * * * * * * * * * * * * * *
|
13 . 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. If you would to submit material for inclusion in the The Export/Import Daily Update (“Daily Bugle”), please find instructions here. * 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. * TO UNSUBSCRIBE: Use the Safe Unsubscribe link below. |
Stay Connected
 |
| | | |
Copyright © 2018. All Rights Reserved. | | | |
