18-0718 Wednesday “Daily Bugle”

18-0718 Wednesday “Daily Bugle”

Wednesday, 18 July 2018

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 
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[No items of interest noted today.]

  1. Items Scheduled for Publication in Future Federal Register Editions
  2. Commerce/BIS: (No new postings.)
  3. DHS/CBP Releases Notice Concerning Section 232 Product Exclusion ID Test Data
  4. DHS/CBP Updates Drawback CATAIR and Error Dictionary
  5. State/DDTC: (No new postings.)
  6. EU Amends North Korea Sanctions, Imposes Provisional Safeguard Measures Concerning Certain Steel Imports
  1. Big Think: “You Can Legally Download 3D-Printed Gun Designs Starting August 1st”
  2. Global Trade News: “EU and Japan Sign Historic Free Trade Deal”
  3. The Independent: “Government Should Look to Block Arms Sales to Countries Accused of Rights Abuses, Influential Group Of MPs Says”
  4. Reuters: “Exclusive: Philippines Could Breach U.S. Sanctions If Russia Arms Deal Proceeds”
  5. ST&R Trade Report: “Canada Accepting Requests to Avoid Retaliatory Duties on U.S. Goods”
  1. Full Circle Compliance Presents “Awareness Course U.S. Export Controls: ITAR & EAR From a Non-U.S. Perspective”, 2 Oct in Bruchem, the Netherlands
  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 



[No items of interest noted today.]

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OGS_a11. Items Scheduled for Publication in Future Federal Register Editions
(Source: Federal Register)

* Treasury/OFAC; NOTICES; Blocking or Unblocking of Persons and Properties [Publication Date: 19 Jul 2018.]

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DHS/CBP Releases Notice Concerning Section 232 Product Exclusion ID Test Data

CSMS #18-000439, 18 Jul 2018.) 

In support of the trade’s ability to test Product Exclusions related to Section 232, CBP has created the following test data that may be used in the ACE Certification environment. Please note that the Product Exclusion data will be validated against the Effective Dates, HTS, and COO combinations provided in the attached table. 

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DHS/CBP Updates Drawback CATAIR and Error Dictionary

CSMS# 18-000438, 18 Jul 2018.) 
An updated Drawback CATAIR is now posted with a corrected Table of Changes.

The updated Drawback CATAIR can be found here. Additionally, an updated Drawback Error dictionary was posted and that can be found here.

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State/DDTC: (No new postings.)


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EU Amends North Korea Sanctions, Imposes Provisional Safeguard Measures Concerning Certain Steel Imports  

Official Journal of the European Union, 17 Jul 2018.)

Council Implementing Regulation (EU) 2018/1009 of 17 July 2018 implementing Regulation (EU) 2017/1509 concerning restrictive measures against the Democratic People’s Republic of Korea

Commission Implementing Regulation (EU) 2018/1013 of 17 July 2018 imposing provisional safeguard measures with regard to imports of certain steel products

Council Implementing Decision (CFSP) 2018/1016 of 17 July 2018 implementing Decision (CFSP) 2016/849 concerning restrictive measures against the Democratic People’s Republic of Korea

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Big Think: “You Can Legally Download 3D-Printed Gun Designs Starting August 1st”

Big Think, 18 Jul 2018.) [Excerpts.]
The State Department has reached a settlement with Defense Distributed, which publishes downloadable schematics for 3D-printed guns, in a landmark decision that will enable the controversial organization to publish CAD files of firearms on its 
Starting August 1, 2018, anyone in the world with a 3D printer, some raw materials and an open internet connection will be able to produce their own gun, including classic firearms like the AR-10 and Beretta M9, as well as the Liberator, the world’s first 3D-printed gun.
The Ghost Gunner, Defense Distributed’s PC-connected milling machine manufactured that can carve holes in unfinished gun parts, will also become legal on August 1. … 

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Global Trade News: “EU and Japan Sign Historic Free Trade Deal” 

Integration Point Blog, 17 Jul 2018.) [Excerpts.] 
Today the European Union and Japan signed an ambitious Economic Partnership Agreement (EPA) that constitutes “a strong message against protectionism.” The trade agreement is the largest ever negotiated by the EU and encompasses a market of more than 600 million people. … 
The deal eliminates 99% of the tariffs on Japanese goods sold to the EU. Similarly, about 94% of the tariffs on European exports to Japan will be lifted, rising to 99% in the future. All in all, these tariffs are estimated to cost businesses in the EU and Japan nearly $1.17 billion annually.
The next step is for both parliaments to ratify the agreement. The EU and Japan hope to ratify the agreement and bring it into force by March 2019, which is when the United Kingdom makes it exit from the EU.
To learn more about the EU-Japan Economic Partnership Agreement, visit 
European Commission
USA Today, and 
Nikkei Asian Review.

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The Independent: “Government Should Look to Block Arms Sales to Countries Accused of Rights Abuses, Influential Group Of MPs Says”
The Independent, 18 Jul 2018.) [Excerpts.] 
The [UK] government should tighten restrictions on the sale of UK arms to countries accused of human rights abuses, an influential committee of MPs has said.
The Committee on Arms Export Controls (CAEC) said ministers’ default position should be to block the sale of weapons to countries that have not signed an international arms trade treaty and those on a Foreign Office human rights blacklist.
It also called on the government to start monitoring where UK arms are being deployed, in order to ensure British weapons are not being used in attacks on civilians or other human rights abuses.
Critics say the failure to monitor the end destination of British-made weapons allows manufacturers to deny culpability for how their products are used. 

The committee also warned that ministers have not clarified how Brexit will affect the regulation of arms sales. … 

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Reuters: “Exclusive: Philippines Could Breach U.S. Sanctions If Russia Arms Deal Proceeds”
Reuters, 18 Jul 2018.) [Excerpts.] 
The Philippines is at risk of breaching sanctions imposed by the United States if it proceeds with the purchase of grenade launchers from a blacklisted Russian firm, a deal that could test its longtime security alliance with Washington.
A senior Philippine general familiar with the deal said Manila had agreed in October last year to a 400 million peso ($7.48 million) purchase of 750 RPG-7B rocket propelled grenade launchers from Russia’s state-owned Rosoboronexport, but the transfer had yet to be completed.
U.S. sanctions were imposed last year against any country trading with Russia’s defense and intelligence sectors. … 
Russia has donated assault rifles and trucks to the Philippines but the grenade launchers would be Manila’s first purchase of Russian weapons. The Philippines has long relied on the United States as its main source of military hardware and support.
If it goes ahead, the deal could add strain to a nearly 70-year-old security alliance that Washington has described as “ironclad”, despite Philippine President Rodrigo Duterte’s disdain for the relationship with the former colonial power. … 
A U.S. State Department official said foreign governments and private sector entities had been put on notice that “significant transactions with any of the 39 listed entities will result in sanctions”. Rosoboronexport was blacklisted in April.
American allies who buy weapons and equipment from Russia, the world’s second-largest arms exporter, would also be penalized and could see the transfer of those arms disrupted.
The State Department official declined to say what specific sanctions the U.S. could impose on the Philippines if it goes ahead with the deal with Rosoboronexport, while a spokesman for the Treasury Department said it “does not telegraph sanctions or comment on prospective actions.” … 

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ST&R Trade Report: “Canada Accepting Requests to Avoid Retaliatory Duties on U.S. Goods” 
Sandler, Travis & Rosenberg Trade Report, 18 Jul 2018.)
The Canadian government is accepting requests for remission of the tariffs imposed on U.S. goods as of July 1 in retaliation for the Trump administration’s duty hike on steel and aluminum products.
Canada’s tariffs include an additional 25 percent duty on steel products classified under various subheadings in Chapter 72 and an additional 10 percent duty on aluminum products as well as other goods such as food products, mattresses, lawn mowers, dishwashers, boats, and various consumer goods. These measures are being imposed in retaliation for, and will remain in place until the elimination of, the higher duties the U.S. imposed June 1 on steel and aluminum products from Canada citing national security concerns.
The Canadian government states that it will consider requests for remission of the additional tariffs (i.e., relief from payment or refund of payments made) only in the following circumstances: (1) to address situations of short supply in the domestic market, either on a national or regional basis; (2) where there are contractual requirements, existing prior to May 31, 2018, for Canadian businesses to use U.S. steel or aluminum in their products or projects; and (3) to address, on a case-by-case basis, other exceptional circumstances that could have severe adverse impacts on the Canadian economy.
Requests must include a substantial amount of information concerning the requesting company, subject goods, import volumes and values, and tariff effects. Requests will go through a detailed review process and the government has set no deadlines for making decisions. Only companies registered in Canada may submit remission requests.
Aside from requesting remissions, companies can use other methods to lower or avoid the Canadian retaliatory tariffs on their products, parts, or SKUs, including reclassification or tariff engineering.

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(Source: Full Circle Compliance,
Our next academy course is specifically 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: Tuesday, 2 Oct 2018, 9 AM – 5 PM (CEST)
* Where: Landgoed Groenhoven, Bruchem, the Netherlands
* Sponsor: Full Circle Compliance (FCC)
* Instructors: Ghislaine Gillessen, Mike Farrell, and Alexander P. Bosch
* Information & Registration: HERE or via events@fullcirclecompliance.eu  
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William Makepeace Thackeray (18 Jul 1811 – 24 Dec 1863; was a British novelist and author. He is known for his satirical works, particularly 
Vanity Fair, a panoramic portrait of English society.)
– “A good laugh is sunshine in the house.”
  – “The two most engaging powers of an author are to make new things familiar, familiar things new.”

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. 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.
: 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. 
: 19 CFR, Ch. 1, Pts. 0-199
  – Last Amendment: 12 Jun 2018: 83 FR 27380-27407: Air Cargo Advance Screening (ACAS)

  – 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 

: 15 CFR Subtit. B, Ch. VII, Pts. 730-774

  – Last Amendment: 6 June 2018: 83 FR 26204-26205: Unverified List (UVL); Correction

: 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 

: 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
  – 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.  
, 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 
  – HTS codes that are not valid for AES are available 

  – 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 

, 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
. BAFTR subscribers receive a 25% discount on subscriptions to the BITAR, please
contact us

to receive your discount code.  

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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 

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* 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 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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