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18-0810 Friday “Daily Bugle”

18-08010 Friday “Daily Bugle”

Friday, 10 August 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. DHS/CBP Seeks Comments on Free Trade Agreements
  1. Items Scheduled for Publication in Future Federal Register Editions 
  2. Commerce/BIS: (No new postings.)
  3. DoD/DSS Knowledge Center Closed Today
  4. State/DDTC: (No new postings.)
  1. NDIA: “Trump Administration’s Conventional Arms Transfer Plans Gaining Steam”
  2. ST&R Trade Report: “USTR Requests Report on Trade Barriers for SMEs in UK”
  3. WorldECR News Alert, 10 Aug 2018
  1. D.M. Edelman: “Introducing: The New CFIUS Requirements, as Approved by the U.S. House and Senate”
  2. Global Trade News: “Thai Export Reform Is Fewer Than 6 Months Away. Are You Export Ready?”
  3. L. Luo: “How to Remove a Company from the EAR’s Entity List”
  4. M. Volkov: “Crime-Fraud Exception to Attorney-Client Privilege”
  5. R. Slack: “Exporting to India is Getting Easier”
  6. S. Kao & S. Oliai: “U.S. Reimposes Sanctions on Iran as First Wind-down Period Ends”
  1. FCC to Present U.S. Export Controls Awareness Training Course for Non-U.S. Organizations, 2 Oct in Bruchem, the Netherlands
  2. List of Approaching Events: 6 New Events Posted This Week
  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 (3 Aug 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

1
. DHS/CBP Seeks Comments on Free Trade Agreements

(Source: Federal Register, 10 Aug 2018.) [Excerpts.]
 
83 FR 39770-39771: Agency Information Collection Activities: Free Trade Agreements
* AGENCY: U.S. Customs and Border Protection (CBP), Department of Homeland Security.
* ACTION: 30-Day notice and request for comments; extension of an existing collection of information. …
* DATES: Comments are encouraged and will be accepted (no later than September 10, 2018) to be assured of consideration.
* ADDRESSES: Interested persons are invited to submit written comments on this proposed information collection to the Office of Information and Regulatory Affairs, Office of Management and Budget. Comments should be addressed to the OMB Desk Officer for Customs and Border Protection, Department of Homeland Security, and sent via electronic mail to dhsdeskofficer@omb.eop.gov.
* FOR FURTHER INFORMATION CONTACT: Requests for additional PRA information should be directed to Seth Renkema, Chief, Economic Impact Analysis Branch, U.S. Customs and Border Protection, Office of Trade, Regulations and Rulings, 90 K Street NE, 10th Floor, Washington, DC 20229-1177, Telephone number (202) 325-0056 or via email CBP_PRA@cbp.dhs.gov. Please note that the contact information provided here is solely for questions regarding this notice. Individuals seeking information about other CBP programs should contact the CBP National Customer Service Center at 877-227-5511, (TTY) 1-800-877-8339, or CBP website.
* SUPPLEMENTARY INFORMATION: …
  – Title: Free Trade agreements.
  – OMB Number: 1651-0117.
  – Form Number: None.
  – Type of Review: Extension (without change). …
  – Abstract: Free trade agreements are established to reduce and eliminate trade barriers, strengthen and develop economic relations, and to lay the foundation for further cooperation to expand and enhance benefits of the agreement. These agreements establish free trade by reduced-duty treatment on imported goods.
   The U.S. has entered into the following Free Trade Agreements: United States-Chile Free Trade Agreement (US-CFTA) (Pub. L. 108-77); the Republic of Singapore (Pub. L. 108-78, 117 Stat. 948,19 U.S.C. 3805 note); Australia (Pub. L. 108-286); Morocco (Pub. L. 108-302); Jordan (Pub. L. 107-43); Bahrain (Pub. L. 109-169); Oman (Pub. L. 109-283); Peru (Pub. L. 110-138, 121 Stat. 1455); Korea (Pub. L. 112-41); Colombia (Pub. L. 112-42, 125 Stat. 462); Panama (Pub. L. 112-43); and Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, and Nicaragua (CAFTA-DR) (Pub. L. 109-53, 119 Stat. 462).
   These free trade agreements involve collection of data elements such as information about the importer and exporter of the goods, a description of the goods, tariff classification number, and the preference criterion in the Rules of Origin.
   Respondents can obtain information on how to make claims under these Free Trade Agreements by going here and use a standard fillable format for the FTA submission by going here. …
 
   Dated: August 7, 2018.
Seth D. Renkema, Branch Chief, Economic Impact Analysis Branch, U.S. Customs and Border Protection.

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OGSOTHER GOVERNMENT SOURCES

OGS_a12
. Items Scheduled for Publication in Future Federal Register Editions
 

(Source:
Federal Register)
 
* Commerce; Industry and Security Bureau; PROPOSED RULES; Commerce Control List: Controls on Certain Spraying or Fogging Systems and “Parts” and “Components” Therefor [Publication Date: 13 August 2018.]
 
* President; ADMINISTRATIVE ORDERS; Export Control Regulations; Continuation of National Emergency (Notice of August 8, 2018) [Publication Date: 13 August 2018.]

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OGS_3
4. DoD/DSS Knowledge Center Closed Today
(Source: DoD/DSS, 10 Aug 2018.)
 
Personnel Security (PCL) inquiries (option #2) to include e-QIP authentication resets of the DSS Knowledge Center will be closed on Friday, August 10, 2018, for the purpose of conducting internal training to deliver the highest quality customer service to Industry and Government callers. Normal operations for PCL and e-QIP inquiries will resume on Monday, August 13, 2018.
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OGS_a4
5. State/DDTC: (No new postings.)

(Source: State/DDTC)

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NWSNEWS

NWS_a016. NDIA: “Trump Administration’s Conventional Arms Transfer Plans Gaining Steam”

(Source: NDIA, 8 Aug 2018.)
 
The Trump administration plans to maintain a sustained dialogue with industry as it implements its new policy to sell arms overseas, a State Department official said Aug. 8.
 
  “We had said when we started on this process that we were not just going to be looking for input to the implementation plan, write the plan, put it out there, and then say, ‘Thanks, we’re done, talk to you all later,'” said Laura Cressey, the deputy director for regional security and arms transfers at the Department of State.
 
  “We really do want to make sure that this is just the beginning of our engagement and we continue to reach out to folk,” she said at
Center for Strategic and International Studies panel titled “U.S. Arms Transfer Policy: Shaping the Way Ahead.”
 
President Donald Trump directed the secretaries of defense, commerce and energy to submit the conventional arms transfer implementation plan within 60 days, which they did July 13, said Ambassador Tina Kaidanow, acting assistant secretary of state for political-military affairs. Since its release, Kaidanow and officials from the executive branch have met with stakeholders from industry, civil society, and congressional staffers to align the implementation plan with “real world” challenges.
 
The initiative includes working with partners and allies to identify critical capability requirements and “energizing” a whole-of-government effort to expedite arms transfers that support national security objectives; improving the United States’ ability to compete with adversaries by providing allies and partners with alternatives to foreign defense articles; increasing the competitiveness of U.S.-made systems; and updating and revising the regulatory framework, according to a State Department fact sheet.
 
  “The plan represents an integrated strategy, one that aligns our conventional arms transfers with our national security and economic interest,” Kaidanow noted. The goal is “ensure that U.S. products can win in the competitive global market place,” she added.
 
  “In the national implementation plan, the third line of effort calls for “creating conducive environments through engagement with Congress, industry, international partners, and other stakeholders to foster the efficient operation of the U.S. defense trade,” Kaidanow said.
 
Cressey said there have been – and continue to be – roundtable meetings with associations, large and small, to ensure that their input is received.
 
Keith Webster, president of the Defense and Aerospace Council of the U.S. Chamber of Commerce, said: “Our defense industries ensure that innovation continues to progress … innovation comes from revenue. Our defense industries lead in innovation. We need our industries to remain vibrant, to reinvest that revenue as they do, and research for next generation capability for our forces and our allied forces to dominate on the battlefield tomorrow.”
 
Kaidanow said: “The release of the new policy was only the first step in the series of what we believe will be very practical initiatives to transform the way the U.S. government works to support and grow our defense industrial base.”

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U.S. Trade Representative Robert Lighthizer recently asked the International Trade Commission to investigate and prepare a report that catalogues trade-related barriers that small- and medium-sized enterprises perceive as disproportionately affecting U.S. SMEs exporting to the United Kingdom, compared to larger U.S. exporters to the UK.
 
Lighthizer states in an Aug. 2 letter that in identifying these barriers the ITC may consider information and definitions contained in the three ITC reports on SMEs that were released in 2010, the 2014 ITC report on trade barriers that U.S. SMEs perceive as affecting exports to the European Union, any relevant literature, and information gathered from SMEs and others throughout the investigation. The letter adds that the report should cover barriers faced by U.S. SMEs exporting manufactured products, agricultural goods, and services, focusing primarily on barriers identified by SMEs that have experience in exporting to the UK either directly or through supply chains.
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(Source:
WorldECR, 10 Aug 2018.)
 
  (1) US reimposes Iran sanctions; EU reactivates Blocking Regulation
  (2) US sanctions 44 Chinese businesses over ‘threat to national security’
  (3) Australia: Review of Defense Trade Controls Act reaches roundtable stage
  (4) OFSI updates its guidance on UK financial sanctions
  (5) US sanctions Russia for UK Novichok attack
 

[Editor’s Note:
Click here to find information on how to subscribe to WorldECR, the journal of export controls and sanctions.]

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COMMCOMMENTARY

(Source:
Export Compliance Matters, 9 Aug 2018.)
        
* Author: Doreen M. Edelman, Esq., Baker Donelson LLP, +1 202-508-3460,
dedelman@bakerdonelson.com.
 
The Committee on Foreign Investment in the United States (CFIUS) reform legislation, known as the Foreign Investment Risk Review Modernization Act (FIRRMA), attached to the 2019 National Defense Authorization Act, passed both the House and Senate as of August 1 and is now awaiting the President’s signature. The new law casts a wider net over what type of transactions and investments will be subject to potential CFIUS review. Thus, dealmakers should carefully review the requirements and document their decisions if the parties decide not to file for CFIUS approval. Read on for an overview of key changes to the CFIUS legislation.
 
(1) Deals Covered:
 
  – Real Estate Investments: The purchase or lease by, or a concession offered to, a non-U.S. person of a public or private piece of U.S. real estate that: (i) is located within, or will function as part of, an air or maritime installation; (ii) is in close proximity to a U.S. military installation or other national security facility; (iii) could offer a non-U.S. person the ability to collect information about the facility; or (iv) could otherwise put national security activities at risk of foreign surveillance.
  – Critical Technology, Critical Infrastructure, and Sensitive Personal Data Companies: Non-controlling foreign investments in critical technology and critical infrastructure companies and companies that maintain or collect sensitive personal data of U.S. citizens if the investment could offer the foreign person access to material, nonpublic technical information; board membership or observer rights, or the right to nominate a board member; or involvement (other through voting shares) in substantive decision making of the U.S. business.
  – Change in a Foreign Person’s or Company’s Rights: Any change in the rights that a foreign person has with respect to a U.S. business if the change could result in foreign control of the U.S. business or an investment in a critical technology company, a critical infrastructure company, or a company that maintains or collects sensitive personal data of U.S. citizens.
  – New “Sense of Congress” statutory factors to consider: When reviewing whether a transaction is covered, CFIUS will be able to consider (i) whether a transaction involves a country of special concern that has a strategic goal of acquiring technologies or critical infrastructure that would affect U.S. technological leadership in that area; (ii) the national security effects of potential cumulative market control by foreign persons; (iii) whether a foreign person involved in a transaction has a history of complying with U.S. law; (iv) how the control of U.S. industries and commercial activity affects the capability and capacity of the U.S. to meet the requirements of national security; (v) the extent to which a transaction is likely to expose sensitive or personally identifiable data of U.S. citizens to exploitation by foreign persons and governments; and (vi) whether a transaction exacerbates or creates new cybersecurity vulnerabilities, or allows a foreign government to gain new significant capabilities to engage in malicious cyber activities against the U.S.
  – Attempts to Evade CFIUS: Any transaction, transfer, agreement, or arrangement designed or intended to evade or circumvent CFIUS review
 
(2) Administrative Changes:
 
  – Extended Review Period: The review period will be extended from 30 days to 45 days and allows the Committee to extend an investigation for one additional 15-day period in “extraordinary circumstances.”
  – Short Form Declaration: Companies can submit five-page, short-form “declaration” as opposed to filing a notice. CFIUS would have 30 days to decide whether to require a full formal filing or determine that no further action is necessary. Declarations will be mandatory for transactions that involve an investment that results in the direct or indirect acquisition of a substantial interest in a critical technology company, a critical infrastructure company, or a company that maintains or collects sensitive personal data of U.S. citizens by a foreign person in which a foreign government has a direct or indirect substantial interest.
  – Unilateral Review: CFIUS will be able to unilaterally initiate a review of a previously reviewed transaction if a company materially breaches a mitigation agreement or condition when there are no other “adequate or appropriate” remedies, even if the breach was unintentional.
  – Suspension Authority: CFIUS will be able to suspend a transaction during its review and investigation, and can short its investigation and refer the matter directly to the President for action. CFIUS also will have expanded authority to impose interim mitigation measures in the period of time that a transaction is before them.
  – Judicial Review: Companies will be permitted to challenge CFIUS actions and findings by bringing a civil action in the U.S. Court of Appeals for the D.C. Circuit and procedures will be established for the review of privileged or protected information in judicial proceedings.
  – Filing Fees: New filing fees based on the value of the transaction, taking into account the effect of the fee on small business concerns, the expenses of the Committee, the effect of the fee on the foreign investment, and other matters that the Committee deems appropriate. The filing fee will not exceed the lesser of $300,000 or one percent of the value of the transaction.
 
(3) Export Control Reform:
 
The bill also includes the “Export Control Reform Act of 2018,” which codifies the Department of Commerce’s export control regime and directs the agency to establish an export control process that covers “emerging and foundational” technologies. This will be done through the creation of an interagency process where the Secretaries of Commerce, Defense, Energy, and State will identify emerging and foundational technologies “that are essential to the national security of the United States.”
 
(4) Timing and Next Steps
 
The bill is now awaiting signature from President Trump. Most of the key FIRRMA provisions will have to wait for implementing regulations to be published, and these will go into effect 30 days after the regulations are published in the Federal Register or 18 months after enactment of FIRRMA, whichever comes first. However, FIRRMA authorizes the Committee to implement pilot programs to institute the provisions earlier than this, as long as the relevant notices are published at least 30 days in advance. This can affect how foreign investment decisions should be reviewed and contemplated today. For example, the mandatory filing provisions will have to be considered, as well as the new types of transactions potentially subject to review. Keep in mind that the mandatory declarations will be required to be submitted to the Committee at least 45 days before a covered transaction is completed and that CFIUS can impose penalties for failure to notify.
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(Source:  
Integration Point Blog, 9 Aug 2018.) [Excerpts.]
 
Thailand is one of the largest exporting countries whose economy is more than two-thirds dependent on export in terms of gross domestic product (GDP). Despite being such an export-driven economy, the export sector dealing with dual-use items and weapons of mass destruction remained unorganized until 2015.
 
On September 22, 2015, Thailand’s Ministry of Commerce issued a notification stating the need for the trade industry to prepare for stringent export compliance measures under the new licensing system for dual-use items (DUI). The initialization of establishing an effective export control system resulted from United Nations Security Council Resolution (UNSCR) 1540, which directs its member states to adopt an effective policy for non-proliferation of weapons of mass destruction (WMD).
 
Thailand is not a member of any major export control regimes and, at the time, only had the Export and Import of Goods Act of 1979 in effect. The export of specific dual-use goods was restricted under existing laws of six different ministries:
 
  – The Ministry of Defense: Arms & Chemical Materials
  – The Ministry of Science & Technology: Nuclear-Related Items
  – The Ministry of Industry: Toxic Chemicals and Chemical Precursors
  – The Ministry of Public Health: Microorganism, Pathogen, and Animal Toxin
  – The Ministry of Commerce (Department of Foreign Trade): Dual Use Items
  – The Ministry of Finance: Overall Export & Import Goods under Customs Law
 
 
At a geographically strategic location where the transfer of goods can be done with ease, Thailand wants to be proactive in its approach to curb the spread of terrorism. By implementing and showcasing its capacity as an active member state against the spread of WMD, Thailand can become a major trade hub in the northern ASEAN region. It can encourage foreign investors to invest in locally produced DUI and prevent the chances of facing trade barriers from other countries.
 
Timeline
 
In 2015, a committee for the Export Administration of Dual-Use Items was established within the Ministry of Commerce.
On October 16, 2015, the Department of Foreign Trade (DFT) published the new export control list following the notification stating the new licensing requirement. The list is divided into two parts:
  –
List I: It covers and monitors over 1,692 items, following the European Union Dual-Use List of 2012 and using Export Control Numbers (ECN) similar to it. Out of 1,692 items, 1,461 are tangible items, whereas 231 are intangible items, i.e., software and technology.
  –
List II: These are not DUI; rather they are Harmonized System (HS) classification codes related to DUI and may fall under the definition of dual-use items.
 
On October 4, 2016, the draft law for the “Trade Controls on Weapons of Mass Destruction Act” (TCWMD Act) was introduced to focus on the end user and the end user agreement, promoting Internal Compliance Programs (ICP) and introducing a third list (the Munitions List).
 
On January 1, 2018, the export control list of 2015 was scheduled to come into force. Due to the pending process of the electronic portal and licensing system, it was delayed until 2019.
 
Future Actions – Be Export Ready!
 
In September 2018, an annual license period will start for those companies/exporters who have implemented effective Internal Compliance Programs within their organization. It will require them to self-screen and monitor all trade transactions to be eligible for an annual license so that applying for separate licenses for every shipment is not required.
 
On January 1, 2019, all export control lists will come into effect along with the TCWMD Act. The electronic export management system, known as the electronic-Trade Management of Dual-Use Items (e-TMD), will be made available. Currently, one can take trials of the e-TMD system and training courses on Internal Compliance Programs on the e-TCWMD portal.
Industries such as automotive, chemical manufacturing, machinery, electronics, semiconductors, and telecommunication are expected to be majorly affected by the new system.
 
You will be required to file for a shipment-to-shipment basis license for items listed in List-I (DUI), where classification will be determined by a questionnaire that you need to answer in the e-TMD/e-TCWMD system. In cases of non-DUI, you may file for self-certification stating that exported items are not dual-use items to the Ministry of Customs.
 
Since the process will be completely online, entering incorrect information will lead to non-compliance and hefty fines. It is expected that punishments up to 22 years and fines of bt22 million (approx. 0.7 million USD) can be levied in cases of DUI non-compliance. For WMD cases, punishments can amount to life imprisonment and bt50 million (approx.1.5 million USD) in fines. …
 
Recommended Reading
 
You can read more about Thai export reform from the 
Department of Foreign Trade (Thai) and 
The Bangkok Post (English). You can also view
the
e-TCWMD portal here.
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(Source:
China Law Insight, 9 Aug 2018.)
 
* Author: Laura Luo, Esq., Laura.Luo@us.kwm.com, King & Wood Mallesons, New York City.
 
On August 1, 2018, the Bureau of Industry and Security (“BIS”) issued a rule amending the Export Administration Regulations (“EAR”) by adding forty-four Chinese entities to the Entity List. A list of the newly added companies can be found 
here
 
Export Administration Regulations Overview
 
The EAR is a set of regulations issued under the Export Administration Act that governs the export of certain U.S.-origin commodities, including foreign-made products that incorporate certain U.S.-origin goods, technology, or software. Generally, companies seeking to export, reexport, or transfer (in-country) goods covered by the EAR must obtain a license or license exemption from BIS depending on the purchasing entity and the country on destination. Additional information concerning the EAR and long-arm jurisdiction in export control can be found 
here.
 
Placement on the Entity List signifies that the End-User Review Committee (“ERC”) has determined that the listed entities have been, or pose a significant risk of, acting contrary to U.S. national security and foreign policy interests. As a result, the EAR imposes additional license requirements on, and limit the availability of most license exceptions for, exports, reexports, and transfer (in-country) of U.S.-origin controlled goods and technology to such companies. With respect to the forty-four newly-added Chinese companies, BIS has provided that:
 
  – there is a presumption of denial for any license review, and
  – there are no license exceptions available for any of these entities.
 
Despite being listed of the Entity List, these Chinese companies may still sell goods and services to purchasers in the U.S. because the EAR concern only the export, reexport, and transfer (in-country) of certain goods to listed entities. However, if the goods involved are controlled goods within the meaning of the EAR, such Chinese entities must still comply with the EAR or otherwise find themselves subject to penalties for violations of the EAR.
 
Requesting Removal From The Entity List
 
Only listed companies may appeal a decision by submitting a written request to the ERC to modify or remove their entries. Because the ERC will deliberate with other agencies and examine information from public and non-public sources, including law enforcement data and classified information, third parties are not allowed to file requests on behalf of any listed company. Any requests must be made in English and supported by the party’s basis for removal or modification. The ERC must review any such requests and provide a written decision within thirty calendar days of receiving such requests.
 
Before filing a request with the ERC, a listed entity should conduct its own internal due diligence to first determine whether it does wish to appeal the ERC’s decision and to then gather all relevant information for preparation of its submission and ensuing discussions with the ERC. A listed entity should consider:
 
  (1) the national security or foreign policy interests involved,
  (2) whether the entity poses any risk to such interests, and
  (3) whether there is a reasonable basis for the ERC’s initial placement of the entity on the Entity List.
 
Appealing parties remain subject to any additional licensing requirements until (1) the ERC approves of the party’s appeal, and (2) a formal notice of the party’s removal is published in the Federal Register. The bar for removal, however, is rather high. All decisions to remove or modify an entry on the Entity List must be made by unanimous vote of the ERC, whereas inclusion on the list only requires a majority vote. Decisions made by the ERC are final and unappealable. Due to national security concerns and the confidential nature of the business information reviewed by the ERC, BIS will not share with the public any detailed information on which the ERC relied to make its determination or any information exchanged between the applying entity and the ERC.
 
Despite this high voting standard, companies have previously been successful in petitioning for removal. On September 25, 2017, the ERC removed China National Commercial New Tone Trading Company Ltd from the Entity List, after having initially placed the company on the Entity List on July 28, 2015 and subsequently receiving a request for removal.
 
Finally, even if a listed entity fails to obtain a positive outcome with respect to a request for removal, the Entity List is constantly changing, as the ERC reviews the Entity List on an annual basis to determine whether any listed entities should be removed or modified.
 
Additional Recourse For Listed Entities
 
Should a listed entity choose to pursue the matter further, it must turn to the federal judicial system in hopes of overturning the ERC’s determination. This avenue of recourse presents yet another uphill battle for the listed entity to overcome, as the courts will generally give deferential treatment to an agency’s decision, unless it is shown to either violate the law or otherwise be arbitrary and capricious.
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(Source:
Volkov Law Group Blog, 8 Aug 2018. Reprinted by permission.)
 
* Author: Michael Volkov, Esq., Volkov Law Group,
mvolkov@volkovlaw.com, 240-505-1992.
 
The attorney-client privilege is an invaluable tool that is used to encourage frank and open communications between a client and an attorney. Clients rely on the privilege when communicating with attorneys. It is important to remember that the attorney-client privilege applies only to communications between a client and an attorney for the purpose of seeking legal advice.
 
A company’s reliance on the attorney-client privilege provides a critical cloak of protection for attorneys to investigate potential misconduct and to remediate problems without any fear that the government or third parties will gain access to such information.
 
As everyone knows, however, the attorney-client privilege is not absolute. Prosecutors regularly seek access to attorney-client communications using the crime-fraud exception, especially in white-collar cases.
 
In basic terms, the crime-fraud exception applies to attorney-client communications in furtherance of a contemplated or ongoing crime or fraud. The crime-fraud exception distinguishes between forward-looking and past communications. Of course, such an exception is not easily applied and there are numerous grey areas that occur when dealing with crime-fraud exception claims.
 
In Special Counsel Mueller’s investigation, the issue has come up on numerous occasions when dealing with Michael Cohen’s communications, and with the investigation of Paul Manafort and Rick Gates.
 
In a lengthy and interesting decision (
here), Judge Beryl Howell required Manafort and Gates’ former attorney to testify before the grand jury concerning limited aspects of her legal representation of Manafort and Gates relating to alleged misleading representations made to the Department of Justice concerning their work on behalf of the Ukraine government.
 
To meet the crime-fraud exception, the government must make a prima facie showing to establish the elements of an ongoing or imminent crime or fraud.  The government is not required to prove beyond a reasonable doubt the elements of an ongoing or imminent fraud.  The court will often look at the claimed privilege materials in camera to resolve such a claim.
 
There are numerous situations in criminal law when these situations occur.  Assume that a client requests his or her lawyer to prepare a document for filing with the government based on false information.  Even if the attorney did not know that the document included false information, the attorney may be required to testify about what the client told the attorney when preparing the document.  (Of course, I am assuming that if the attorney knew the document contained false information, the attorney would not have filed the document).
 
When the government seeks to prosecute the client for the false document, the government will seek to obtain the attorney’s testimony about what the client told the attorney in preparing the document. This is a case where the crime-fraud exception can be applied.
 
Given the myriad number of ways in which white-collar criminals can employ lawyers to assist in the furtherance of fraud, money laundering or Ponzi schemes, it is easy to envision how attorneys can be turned into witnesses against their clients. But in many cases, the perpetrator does not make incriminating statements to the attorney, since the attorney would (and should) decline to participate in the conduct if he or she knows that the project is part of a criminal scheme.
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(Source:
Trade & Manufacturing Monitor, 8 Aug 2018.)
 
* Author: Robert Slack, Esq., 
rslack@kelleydrye.com, Kelley Drye & Warren LLP.
 
A set of changes to the U.S. dual use export control rules makes exporting sensitive goods, software, and technology to India less burdensome.
 
Over the last several years, India has joined three of the four major multilateral export control regimes – the Missile Technology Control Regime (MTCR), the Wassenaar Arrangement, and the Australia Group.  In response to India’s ascension to these agreements, the United States has amended the Export Administration Regulations (EAR) to ease export control license requirements for exports and reexports of qualifying items to India.
 
Earlier this year, the Bureau of Industry and Security (BIS) lifted license requirements for 
exports and reexports of “CB2” controlled items to India, including fluid handling equipment controlled under Export Control Classification Number 2B350 and chemicals controlled under ECCN 1C350, as a result of India’s ascension to the Australia Group.  This move eased restrictions on many fluid handling companies that produce controlled equipment, as they may more easily transfer products and share data between operations in India and the United States.
 
Last week, BIS lifted licensing requirements for transfers of items 
controlled for “NS2” reasons to India, including a broad array of optical equipment, lasers, sensors, electronic components, and materials, reflecting India’s status as a participant in the Wassenaar Arrangement.  The amendment also allows exporters to more broadly use License Exception 
Strategic Trade Authorization (STA) to export more sensitive items controlled for national security purposes to India without a license.  Although license exception STA involves a number of administrative steps, once an STA program is set up, it can be far more efficient to use than obtaining individual licenses from BIS for each export.

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(Source: Authors)
 

 
On 6 August 2018, President Trump issued Executive Order 13846, which reimposed certain sanctions with respect to Iran in the first round of the Iran Deal sanctions “snap back.” President Trump had previously announced on 8 May 2018 the U.S.’ intention to withdraw from the Iran Nuclear Deal (the Joint Comprehensive Plan of Action, or “JCPOA”). The U.S. Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) published guidance  detailing two wind-down periods for businesses to conclude certain activities that were allowed under JCPOA relief but would be restricted once JCPOA-related sanctions were reimposed (or “snapped back”) in August and November 2018. 
 
Executive Order 13846
 reimposed certain sanctions previously revoked or amended. General licenses relating to commercial aircraft, Iranian-origin carpets, and foodstuffs that were established to facilitate wind-down activities for the August deadline have also now expired. Executive Order 13846 also expanded the scope of sanctions against Iran in effect prior to 16 January 2016 (Implementation Day under the JCPOA).
 
JCPOA-related sanctions that have been reimposed include restrictions on:
 
  – The purchase or acquisition of U.S. bank notes by the Government of Iran;
  – Iran’s trade in gold and other precious metals;
  – Graphite, aluminum, steel, coal, and software used in industrial processes;
  – Transactions related to the Iranian rial;
  – Activities related to Iran’s issuance of sovereign debt; and
  – Iran’s automotive sector.
 
The second and last wind-down period will expire at 11:59 p.m. Eastern Standard Time (EST) on 4 November 2018, and the remaining sanctions lifted or waived as part of the JCPOA relief will re-enter into full effect on 5 November 2018.  Sanctions that will be snapped back into place in November include those relating to:
 
  – Iran’s port operators and its shipping and shipbuilding sectors;
  – Petroleum-related transactions, including the purchase of petroleum, petroleum products, or petrochemical products from Iran;
  – Transactions by foreign financial institutions with the Central Bank of Iran and other designated Iranian financial institutions;
  – Provision of specialized financial messaging services to the Iranian Central Bank and other financial institutions;
  – Provision of underwriting services, insurance, or reinsurance; and
  – Iran’s energy sector.
 
By the end of the wind-down periods, OFAC will announce additional persons and entities that will be added to its Specially Designated Nationals (SDN) list, requiring blocking actions and other restrictions relating to these individuals and entities.
 
OFAC had previously clarified in its FAQS issued 8 May 2018 that non-U.S., non-Iranian persons may receive payment for goods or services or may receive repayment of loans or credits extended, under certain conditions. These conditions include that the goods or services were provided before the end of the applicable wind-down period, or loans and credits extended before the end of the wind-down period, and as agreed to prior to 8 May 2018, following U.S. sanctions in effect at the time. All payments must be consistent with U.S. sanctions.
 
EU Response to U.S. Snap Back
 
In response to the White House’s May announcement that the U.S. would withdraw from the JCPOA, the EUstated on 18 May 2018 that it would reactivate its Blocking Statute, EC No. 2271/96 from 22 November 1996, in order to counter the effects in the EU of U.S. withdrawal from the JCPOA.  Fundamentally, the Blocking Statute seeks to protect EU operators from the extraterritorial application of particular U.S. sanctions programs and provides a mechanism for EU operators to recover damages due to the application of these specified laws.
 
The Blocking Statute’s annex was updated to include the now reimposed U.S. sanctions on Iran.  After a two-month period of scrutiny by the European Parliament and the European Council without objection by either, the updated Blocking Statute and amended annex to the Statute entered into force on 7 August 2018.  The EU also provided published guidance regarding this update.

Impact on Businesses 
 
U.S. businesses and their foreign branches and subsidiaries must evaluate their business operations and cease any activities that would be in violation of the sanctions reimposed on 6 August 2018.  With the last wind-down period approaching, companies should also be working to conclude activities under those sanctions programs in anticipation of the 4 November 2018 deadline, including winding down activities formerly authorized under General Licenses H and preparing for additional updates to the SDN List.
 
This reimposition of secondary sanctions will have a significant impact on U.S. companies and foreign subsidiaries of U.S. companies that may have taken advantage of the opportunities to do business with Iran pursuant to the JCPOA-related sanctions relief, but now must take actions to wind-down activities in response to the fluid sanctions environment.
 
EU entities considering business in Iran or Cuba will need to consider the applicability of U.S. sanctions and the EU Blocking Statute to their operations when deciding whether and how to proceed.
 
Additional Information
 
For additional OFAC guidance and updated Frequently Asked Questions (FAQs), please refer to the following sources:
 
  – OFAC FAQs Related to Executive Order 13846;
  – OFAC FAQs issued 8 May 2018 and updated 6 August 2018;
  – Additional resources and FAQs cited in 
OFAC’s 6 August 2018 press release;
  – Wind-down general license relating to commercial aircraft at 
31 C.F.R. § 560.536; and
  – Wind-down general license relating to Iranian-origin carpets and foodstuffs at 31 C.F.R. §§ 
560.534 and 
560.535). 
 
Additional resources related to the EU Blocking Statute and updated annex are also provided in the European Commission’s press release.
* * * * * * * * * * * * * * * * * * * *

TEEX/IM TRAINING EVENTS & CONFERENCES

TE_a1
15
FCC to Present U.S. Export Controls Awareness Training Course for Non-U.S. Organizations, 2 Oct in Bruchem, the Netherlands

(Source: Full Circle Compliance, events@fullcirclecompliance.eu.)
 
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  
 
* * * * * * * * * * * * * * * * * * * *

TE_a3
16. 
List of Approaching Events: 6 New Events Posted This Week
(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

* 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 15: Minneapolis, MN; “Export Documentation and Procedures Seminar“; International Business Training 
* Aug 16: Indianapolis, IN; “
Export Documentation and Procedures Seminar
“; International Business Training 
* Aug 16: Milpitas, CA; “Encryption Controls“; Bureau of Industry and Security
* Aug 16: Minneapolis, MN; “Incoterms 2010: Terms of Sale Seminar“; International Business Training 
* Aug 17: Indianapolis, IL; Incoterms 2010: Terms of Sale Seminar“; International Business Training 
* Aug 20: Cincinnati, OH; “Export Documentation and Procedures Seminar“; International Business Training  

*
 Aug 21: Leeds, UK; “
Understanding Exporting
“; Chamber International

*
 Aug 22: London, UK; “
Advanced Exporting
“; UK Institute of Export and International Trade

* Aug 22: Minneapolis, MN; “Import Documentation and Procedures Seminar“; International Business Training
* Aug 23: Cincinnati, OH; “Import Documentation and Procedures Seminar“; International Business Training 
* Aug 24: Houston, TX; “Export Documentation and Procedures Seminar“; International Business Training  

#
 Aug 24 – 27: New York, NY; “
Best Customs Broker Exam Course
“; GRVR Attorneys  

*
Aug 29: Leeds, UK; “
Understanding Incoterms
“; Chamber International

*
Sep 3: Edinburgh, UK; “
Intermediate Seminar
“; UK Department for International Trade
*
Sep 4: Edinburgh, UK; “
Beginner’s Workshop
“; UK Department for International Trade

*
Sep 4: Edinburgh, UK; “
Control List Classification – Combined Dual Use and Military
“; UK Department for International Trade

*
Sep 4: Edinburgh, UK; “
Licenses Workshop
“; UK Department for International Trade

*
Sep 4: Leeds, UK; “
Methods of Payment & Letters of Credit
; Chamber International

*
 Sep 4: London, UK; “
An Introduction to Exporting
“; UK Institute of Export and International Trade

*
Sep 5: Aberdeen, UK; “
Beginner’s Workshop
“; UK Department for International Trade

Sep 5: Aberdeen, UK; “
Intermediate Seminar
“; UK Department for International Trade
*
 Sep 6: Aberdeen, UK; “
Licenses Workshop
“; UK Department for International Trade

* Sep 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 11: Leeds, UK; “
Export Documentation and Export Procedures
“; Chamber International

* Sep 12: Buffalo, NY; “Export Documentation and Procedures Seminar“; International Business Training 
* Sep 12-13: Springfield, RI; “Complying with US Export Controls“; Bureau of Industry and Security
* Sep 12-19: Chicago, IL; “Import 5-Day Boot Camp“; Global Trade Academy 
* Sep 13: Buffalo, NY; “Import Documentation and Procedures Seminar“; International Business Training 
* Sep 13: Frankfurt, Germany; “BAFA/U.S. Export Control Seminar 2018“; 
* 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: Anaheim, CA; “Import Documentation and Procedures Seminar“; International Business Training 

#
Sep 18: Kontich, Belgium; “
Export Controls Master Class
“; Customs4Trade

* 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: Pittsburgh, PA; “Export Documentation and Procedures Seminar“; International Business Training 
* 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: Pittsburgh, PA; “Incoterms 2010: Terms of Sale Seminar“; International Business Training 
* Sep 21-24: Detroit, Michigan; “Best Customs Broker Exam Course“; GRVR Attorneys 

*
 Sep 24: Seligenstadt, Germany; “
Follow-Up Fachtagung
“; FALEX

* Sep 25-26; Chicago, IL; ”
Financial Crime Executive Roundtable“; American Conference Institute
* Sep 25: Kansas City, MO; “Import Documentation and Procedures Seminar“; International Business Training 

*
 Sep 25: Leeds, UK; “
Understanding Exporting & Incoterms
“; Chamber International

*
 
Sep 25-26: San Francisco, CA; “
11th West Coast Conference on FCPA Enforcement and Compliance
“; American Conference Institute

* Sep 25-26: Toronto, Canada; ”
4th Forum on Economic Sanctions and Compliance Enforcement“; C5 Group

* Sep 26: Kansas City, MO; “Export Documentation and Procedures Seminar“; International Business Training 
* 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
* Sep 28: Anaheim, CA; “Export Documentation and Procedures Seminar“; International Business Training 

* Oct 2: Bruchem, Netherlands; “Awareness Course U.S. Export Controls: ITAR & EAR From a Non-U.S. Perspective“; Full Circle Compliance

*
 Oct 2: Leeds, UK; “
Export Documentation
“; Chamber International

* Oct 2: Manchester, UK; “E-Z CERT: 
How To Process Your Export Documentation Online
” Greater Manchester Chamber of Commerce

* Oct 5: Boston, MA; “
Incoterms 2010: Terms of Sale Seminar“; International Business Training
* Oct 5: Boston, MA; “ Incoterms: A Strategic Approach“; International Business Training
* Oct 9: New Orleans, LA
; “
Import Documentation and Procedures Seminar
“; International Business Training

* Oct 10: Manchester, UK; “
Export Documentation Training Course
“; Greater Manchester Chamber of Commerce

#
Oct 10: New Orleans, LA; “Tariff Classification Seminar“; Global Learning Centre

* Oct 11: New Orleans, LA; “Export Documentation and Procedures Seminar“; International Business Training 

*
 Oct 11: Rotterdam, NL; “
Trade Compliance Congres
“; SDU, Customs Knowledge, and EvoFenedex

* Oct 12: New Orleans, LA; “Incoterms 2010: Terms of Sale Seminar“; International Business Training
* 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 16: Kontich, Belgium; “
Export Control Compliance Basics
“; Customs4Trade

* Oct 17: Manchester, UK; “
Understanding Tariff Codes
” Greater Manchester Chamber of Commerce
* October 17-18; Miami/Fort Lauderdale, FL; “11th Maritime Forwarding, Freight Logistics & Global Chain Supply Workshop“; ABS Consulting; albert@abs-consulting.net; 954 218-5285
 

* 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“; International Compliance Professionals Association (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 23: Kontich, Belgium; “
Export Control Compliance Basics
“; Customs4Trade

* 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 26: Louisville, KY; “Incoterms 2010: Terms of Sale Seminar“; International Business Training
* Oct 26: Milwaukee, WI; “Incoterms: A Strategic Approach“; International Business Training 
* 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

#
Oct 30: Singapore; “
4th Asia Summit on Economic Sanctions
“; American Conference Institute

*
 
Oct 31 – Nov 1: Singapore;
7th Asia Summit on Anti-Corruption“;
American Conference Institute


* 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: Manchester, UK; “
Understanding Incoterms
” Greater Manchester Chamber of Commerce

* 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 8-9: Shanghai, China; “
ICPA China Conference
“; International Compliance Professionals Association

* 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 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 16, San Diego, CA; “Incoterms 2010: Terms of Sale Seminar“; International Business Training

* Nov 20: Manchester, UK; “
How to Claim Duty Relief on Export and Import Processes
” Greater Manchester Chamber of Commerce
* Nov 21: Manchester, UK; “
Introduction to Exporting
” Greater Manchester Chamber of Commerce
 

* 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 6: London, UK; “
Beginner’s Workshop
“; UK Department for International Trad

* 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; “
Export Documentation Training Course
;” Greater Manchester Chamber of Commerce

* Dec 6: Manchester, UK; “
Introduction to Export Controls and Licenses
“; 
* Dec 14: Philadelphia, PA; “Incoterms 2010: Terms of Sale Seminar“; International Business Training
 
2019
 

* Jan 6-7: Long Beach, CA; ”
Fundamentals of FTZ Seminar“;
* Jan 21-24, 2019: San Diego, CA; “ITAR Defense Trade Controls / EAR Export Controls Seminar”; ECTI; 540-433-3977

* Feb 12-13: Washington, D.C.; “
2019 Legislative Summit
“; National Association of Foreign Trade Zones (NAFTZ) 

* 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 



* Aug 23: Webinar; “Social Media for Trade and Logistics Professionals“; Foreign Trade Association
* Aug 27: Webinar; ”
Import Documentation and Procedures“; International Business Training

* Sep 6: Webinar; “University Export Controls Program: Strength in Numbers“; 
ECTI; 540-433-3977
* Sep 
19: Webinar; “
International Logistics
“; International Business Training
 

* Sep 24: Webinar; “Tariff Classification: Using the Harmonized Tariff Schedule; International Business Training
* Sep 25: Webinar; “NAFTA Rules of Origin“; International Business Training 

* Sep 26: Webinar; “
US Antiboycott Regulations: Clarified & Demystified
“; ECTI; 540-433-3977

* Oct 15: Webinar; “
Incoterms 2010: Terms of Sale
“; International Business Training  
* Nov 14: Webinar; “An Export Commodity Classification Number – ECCN“; Foreign Trade Association
* Dec 3: Webinar; “Tariff Classification: Using the Harmonized Tariff Schedule; International Business Training 

* Dec 4: Webinar; “NAFTA Rules of Origin“; International Business Training 
* Dec 5: Webinar; “Import Documentation and Procedures“; International Business Training
* Dec 11: Webinar; “
Incoterms 2010: Terms of Sale
“; International Business Training 

* Dec 20: Webinar; “International Logistics
“; International Business Training  
 

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

ENEDITOR’S NOTES

EN_a117
. Bartlett’s Unfamiliar Quotations

(Source: Editor)
 

* Camillo di Cavour (Camillo Paolo Filippo Giulio Benso, Count of Cavour, Isolabella and Leri; 10 Aug 1810 – 6 Jun 1861; was an Italian statesman and a leading figure in the movement toward Italian unification.)
  – “I have discovered the art of deceiving diplomats. I tell them the truth and they never believe me.”

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

EN_a218. 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 Amendments: 3 Aug 2018: 83 FR 38021-38023: Revision of Export and Reexport License Requirements for Republic of South Sudan Under the Export Administration Regulations; and 83 FR 38018-38021: U.S.-India Major Defense Partners: Implementation Under the Export Administration Regulations of India’s Membership in the Wassenaar Arrangement and Addition of India to Country Group A:5
 

 

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:
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_a319
. 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.

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