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18-0830 Thursday “Daily Bugle”

18-0830 Thursday “Daily Bugle”

Thursday, 30 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. Commerce/BIS Amends EAR Based on the 2017 Missile Technology Control Regime Plenary Agreements
  2. Commerce/BIS: RPTAC to Meet on 25 Sep in Wash DC
  3. State/DDTC Amends ITAR, Continues Temporary Modification of Category XI of the USML
  1. Items Scheduled for Publication in Future Federal Register Editions 
  2. Commerce/BIS: (No new postings.)
  3. DHS/CBP Announces Deadline for Filing GSP Retroactive Duty Refund Request, 19 Sep
  4. DoD/DSS Announces eMASS CBT Training Currently Unavailable on the RMF Knowledge Service
  5. GAO: Export-Import Bank: Status of End-Use Monitoring of Dual-Use Exports as of August 2018
  6. OMB/OIRA Reviews of Proposed Ex/Im Regulations
  7. State/DDTC: (No new postings.)
  8. President Posts Proclamation Adjusting Imports of Aluminum into the United States
  9. President Posts Proclamation Adjusting Imports of Steel into the United States
  1. Reuters: “Iran Is Complying with Nuclear Deal Restrictions: IAEA Report”
  2. WorldECR News Alert, 30 Aug
  1. The Export Compliance Journal: “Six FBI Export Compliance Tips for Students Studying Abroad”
  2. M. Volkov: “OFAC Begins to Re-Impose Iran Sanctions and Expands Reach of Previous Sanctions”
  3. R.C. Burns: “To Russia With Love: State Imposes Limited Sanctions for Nerve Gas Attacks”
  1. ECTI Presents “United States Export Control (ITAR/EAR/OFAC) Seminar Series,” 12-15 Nov in Washington, DC
  1. New Edition of the BITAR is Available Today 
  2. Bartlett’s Unfamiliar Quotations 
  3. Are Your Copies of Regulations Up to Date? Latest Amendments: ATF (15 Jan 2016), Customs (12 Jun 2018), DOD/NISPOM (18 May 2016), EAR (30 Aug 2018), FACR/OFAC (29 Jun 2018), FTR (24 Apr 2018), HTSUS (14 Aug 2018), ITAR (30 Aug 2018) 
  4. Weekly Highlights of the Daily Bugle Top Stories 

EXIMITEMS FROM TODAY’S FEDERAL REGISTER

EXIM_a1

1
. Commerce/BIS Amends EAR Based on the 2017 Missile Technology Control Regime Plenary Agreements

(Source: Federal Register, 30 Aug 2018.) [Excerpts.]
 
83 FR 44216-44228: Revisions to the Export Administration Regulations Based on the 2017 Missile Technology Control Regime Plenary Agreements
* AGENCY: Bureau of Industry and Security, Commerce.
* ACTION: Final rule.
* SUMMARY: The Bureau of Industry and Security (BIS) is amending the Export Administration Regulations (EAR) to reflect changes to the Missile Technology Control Regime (MTCR) Annex that were agreed to by MTCR member countries at the October 2017 Plenary in Dublin, Ireland, and the May 2017 Technical Experts Meeting (TEM) in Stockholm, Sweden. This final rule revises seventeen Export Control Classification Numbers (ECCNs) to implement the changes that were agreed to at the meetings and to better align the missile technology (MT) controls on the Commerce Control List (CCL) with the MTCR Annex.
* DATES: This rule is effective August 30, 2018.
* FOR FURTHER INFORMATION CONTACT: Sharon Bragonje, Nuclear and Missile Technology Controls Division, Bureau of Industry and Security, Phone: (202) 482-0434; Email: sharon.bragonje@bis.doc.gov.
* SUPPLEMENTARY INFORMATION: …
   This final rule revises the Export Administration Regulations (EAR) to reflect changes to the MTCR Annex agreed to at the October 2017 Plenary in Dublin, Ireland, and changes resulting from the May 2017 Technical Experts Meeting (TEM) in Stockholm, Sweden. References are provided below for the MTCR Annex changes agreed to at the meetings that correspond to the EAR revisions described below. This rule also makes changes to the Commerce Control List (CCL) (Supplement No. 1 to part 774 of the EAR) to conform with the MTCR Annex. All of the changes in this final rule align the MT controls on the CCL with the MTCR Annex. In the discussion below, BIS identifies the origin of each change in the regulatory text of this final rule by using one the following parenthetical phrases: (Dublin 2017 Plenary), (Stockholm 2017 TEM), or (Changes to Align with MTCR Annex). …
   This final rule amends the CCL to reflect changes to the MTCR Annex by amending seventeen ECCNs, as follows: …
   ECCN 1B117. This final rule amends ECCN 1B117 by revising the heading to remove the criteria for which “batch mixers” are controlled under this entry and moves the criteria to the new “items” paragraphs a and b in the List of Items Controlled section. …
   ECCN 1B118. This final rule amends ECCN 1B118 by revising the heading to remove the criteria for which “continuous mixers” are controlled under 1B118 and adds those criteria to the “items” paragraph in the List of Items Controlled section. …
   ECCN 1C111. This final rule amends ECCN 1C111 by revising “items” paragraph a.1 in the List of Items Controlled section. …
   ECCN 1C118. This final rule amends ECCN 1C118 by revising “items” paragraphs a.1, a.2, and a.3 in the List of Items Controlled section. In “items” paragraphs a.1 and a.2, this final rule removes the phrase “weight percent” and adds in its place the phrase “% by weight.” …
   ECCN 2B109. This final rule amends ECCN 2B109 by revising the heading, revising “items” paragraphs a and b in the List of Items Controlled section, and removing Technical Note 2 in the List of Items Controlled section.  …
   ECCN 2B120. This final rule amends the heading of ECCN 2B120 by revising “items” paragraph a in the List of Items Controlled section to move the phrase “or more” to precede the term “axes.” …
   ECCN 2B121. Similar to the change described above to ECCN 2B120, this final rule amends ECCN 2B121 by revising “items” paragraph a in the List of Items Controlled section to move the phrase “or more” to precede the term “axes.” …
   ECCN 2B122. This final rule amends ECCN 2B122 by revising the heading to remove the word “above” and add in its place the phrase “greater than” to clarify that centrifuges capable of imparting accelerations “greater than” 100 g are those that meet this portion of the control parameter. …
   ECCN 6A107. This final rule amends ECCN 6A107 by adding a definition of ‘Time to steady-state registration’ to the Related Definitions paragraph in the List of Items Controlled section. …
   ECCN 7A105. This final rule amends ECCN 7A105 by revising the heading and the Related Definitions paragraph. This final rule revises the heading of ECCN 7A105 to remove the phrase “Global Navigation Satellite Systems (GNSS),” including the parenthetical phrase with examples of GNSS, and adds in its place the term ‘navigation satellite systems.’ …
   ECCN 7A107. This final rule amends ECCN 7A107 by revising “items” paragraph b in the List of Items Controlled section by removing the phrase “capable of providing” at the beginning of the paragraph. …
   ECCN 7A116. This final rule amends ECCN 7A116 by revising the heading; and adding a License Requirements section, License Exceptions section and List of Items Controlled section (MTCR Annex Change, Category II: Item 10.A., Notes, Dublin 2017 Plenary; and Changes to Align with MTCR Annex). …
   ECCN 9A012. This final rule amends ECCN 9A012 by revising the “MT” paragraph in the table in the License Requirements section and removing the “items” paragraph b.5 in the List of Items Controlled section. …
   ECCN 9A101. This final rule amends ECCN 9A101 by revising the Related Definitions paragraph, revising “items” paragraph a, adding new “items” paragraphs a.3 and a.4, and revising “items” paragraph b in the List of Items Controlled section. …
   ECCN 9A115. This final rule amends ECCN 9A115 by revising the heading; and adding a License Requirements section, License Exceptions section and List of Items Controlled section (Changes to Align with MTCR Annex). …
   ECCN 9A515. This final rule amends ECCN 9A515 by adding a new “items” paragraph h to control spacecraft thrusters for MT reasons. …
   ECCN 9A610. This final rule amends ECCN 9A610 by making revisions to the “items” paragraph (MTCR Annex Change, Category II: Item 10.A., Notes, Dublin 2017 Plenary). …
 
   Dated: August 24, 2018.
Richard E. Ashooh, Assistant Secretary for Export Administration.

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EXIM_a2

2
. Commerce/BIS: RPTAC to Meet on 25 Sep in Wash DC

(Source: Federal Register, 30 Aug 2018.) [Excerpts.]
 
83 FR 44262: Regulations and Procedures Technical Advisory Committee; Notice of Partially Closed Meeting
  The Regulations and Procedures Technical Advisory Committee (RPTAC) will meet September 25, 2018, 9:00 a.m., Room 3884, in the Herbert C. Hoover Building, 14th Street between Constitution and Pennsylvania Avenues NW, Washington, DC. The Committee advises the Office of the Assistant Secretary for Export Administration on implementation of the Export Administration Regulations (EAR) and provides for continuing review to update the EAR as needed.
 
Agenda
 
Public Session
 
  (1) Opening remarks by the Chairman
  (2) Opening remarks by the Bureau of Industry and Security
  (3) Presentation of papers or comments by the Public
  (4) Export Enforcement update
  (5) Regulations update
  (6) Working group reports
  (7) Automated Export System update
 
Closed Session
 
  (8) Discussion of matters determined to be exempt from the provisions relating to public meetings found in 5 U.S.C. app. 2 Sec. Sec. 10(a)(1) and 10(a)(3)
 
  The open session will be accessible via teleconference to 25 participants on a first come, first serve basis. To join the conference, submit inquiries to Ms. Joanna Lewis at Joanna.Lewis@bis.doc.gov no later than September 18, 2018.
  A limited number of seats will be available for the public session. Reservations are not accepted. To the extent that time permits, members of the public may present oral statements to the Committee. The public may submit written statements at any time before or after the meeting. However, to facilitate the distribution of public presentation materials to the Committee members, the Committee suggests that presenters forward the public presentation materials prior to the meeting to Ms. Lewis via email. …
 
  Joanna Lewis, Committee Liaison Officer.

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EXIM_a3

3
. State/DDTC Amends ITAR, Continues Temporary Modification of Category XI of the USML

(Source: Federal Register, 30 Aug 2018.) [Excerpts.]
 
83 FR 44228-44229: Continued Temporary Modification of Category XI of the United States Munitions List
* AGENCY: Department of State.
* ACTION: Final rule; notice of temporary modification.
* SUMMARY: The Department of State, pursuant to its regulations and in the interest of the security of the United States, temporarily modifies paragraph (b) in Category XI of the United States Munitions List (USML).
* DATES: Amendatory instructions 1 and 2 are effective August 30, 2018. Amendatory instruction No. 3 is effective August 30, 2019.
* FOR FURTHER INFORMATION CONTACT: Mr. Robert Monjay, Office of Defense Trade Controls Policy, Department of State, telephone (202) 663-2817; email monjayr@state.gov. ATTN: Temporary Modification of Category XI.
* SUPPLEMENTARY INFORMATION: On July 1, 2014, the Department published a final rule revising Category XI of the USML, 79 FR 37536, effective December 30, 2014. That final rule, consistent with the two prior proposed rules for USML Category XI (78 FR 45018, July 25, 2013 and 77 FR 70958, November 28, 2012), revised paragraph (b) of Category XI to clarify the extent of control and maintain the existing scope of control on items described in paragraph (b) and the directly related software described in paragraph (d).
  The Department later determined that exporters may read the revised control language to exclude certain intelligence-analytics software that has been and remains controlled on the USML. Therefore, the Department determined that it was in the interest of the security of the United States to temporarily revise USML Category XI paragraph (b), pursuant to the provisions of Sec. 126.2, while a long-term solution was developed. The Department published a final rule on July 2, 2015 (80 FR 37974) that temporarily modified USML Category XI(b) until December 29, 2015. The Department published a final rule on December 16, 2015 (80 FR 78130) that continued the July 2, 2015 modification to August 30, 2017. The Department published a final rule on August 30, 2017 (82 FR 41172) that continued the December 16, 2015 modification to August 30, 2018.
  The temporary revision clarified that the scope of control in existence prior to December 30, 2014 for USML paragraph (b) and directly related software in paragraph (d) remains in effect. This clarification is achieved by reinserting the words “analyze and produce information from” and by adding software to the description of items controlled.
  The Department, with its interagency partners, continues to develop a long-term solution for USML Category XI(b). However, that solution will not be in place when the current temporary modification expires on August 30, 2018. Therefore, the Department has determined, for the national security and foreign policy of the United States and in the best interest of the U.S. defense industry, to publish a final rule that extends the temporary modification of USML XI(b) for one year, to August 30, 2019, to allow it to be revised as part of the wholesale revision of USML Category XI. On February 12, 2018, the Department published a Notice of Inquiry (83 FR 5970) requesting public comment on USML Categories V, X and XI. The Department and the interagency are reviewing the public comments submitted in response, and the Department is drafting a proposed rule setting out revised versions of the three categories for public comment. Extending the temporary revisions of USML Category XI(b) now will allow the U.S. government to finalize its review of USML Category XI, with rulemaking to follow, to include any further modifications to USML Category XI paragraph (b) as may be warranted. …
 
  Dated: August 27, 2018.
Andrea Thompson, Under Secretary of State for Arms Control and International Security, U.S. Department of State.

[Editor’s note:  A new edition of
Bartlett’s Annotated ITAR (“BITAR”) includes this amendment.  See Item # 19 below.]

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OGSOTHER GOVERNMENT SOURCES

OGS_a14
. Items Scheduled for Publication in Future Federal Register Editions
 

(Source:
Federal Register)
 
* Commerce; Bureau of Industry and Security; NOTICES; Meetings: Transportation and Related Equipment Technical Advisory Committee [Publication Date: 31 August 2018.] 

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

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OGS_3
6. DHS/CBP Announces Deadline for Filing GSP Retroactive Duty Refund Request, 19 Sep

(Source: CSMS #18-000505, 30 Aug 2018.)
 
On Friday, March 23, 2018, the President signed into law H.R.1625 (Public Law 115-141), the “Consolidated Appropriations Act, 2018,” which reauthorized the Generalized System of Preferences (GSP) program for goods entered or withdrawn from warehouse, for consumption, from January 1, 2018 through December 31, 2020. The new law, effective April 22, 2018, also provided for the retroactive refund of all duties, without interest; to the importer of record (IOR) of GSP-eligible goods entered during the January 1, 2018 through April 21, 2018 lapse period.
 
Status – Phased GSP retroactive duty refund:
 
Phase I – CBP has completed the auto refund processing of importations entered during the lapse with special program indicator (SPI) “A” and checks are forthcoming.
 
Phase II – CBP will begin processing shortly the manual refunds of importations entered during the lapse with the SPI “A” that may be subject to additional review (i.e., AD/CVD, 232 remedy, reconciliation, etc.)
 
Phase III – Importers wishing to claim GSP preference on importations entered during the lapse period without the SPI “A” must input a Post Summary Correction (PSC) or protest (CBP will accept a protest, although not a true 19 USC § 1514)to the corresponding Port team or Center of Excellence and Expertise team requesting the GSP refund no later than September 19, 2018.
 
Phase III GSP Duty Refund PSC or Protest
 
GSP refund requests may be submitted as either a PSC if the entry summary is not liquidated, or a protest if the entry summary has liquidated, in accordance with 19 CFR 174. CBP reserves the right to reject the duty refund request if the importer does not provide sufficient line-level data.
 
Request Deadline
 
Per H.R. 1625 (Title V) (Public Law 115-141), CBP will deny all GSP duty refund requests received after September 19, 2018, unless the request is a re-submission of a previously submitted and improperly denied request.
 
Additional Information
 
CBP’s GSP page is available here.
 
CSMS 18-000296, Generalized System of Preferences (GSP) Reinstated Through December 31, 2020, of April 20, 2018, is available here.
 
For questions regarding the GSP Program, contact Lee Licata, Trade Agreements Branch, at FTA@dhs.gov or at (202) 325-6541, and for refund processing questions, contact Jennelle Cray, Drawback and Revenue Branch, at OTENTRYSUMMARY@cbp.dhs.gov or (202) 325-6937.

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OGS_a4
7. DoD/DSS Announces eMASS CBT Training Currently Unavailable on the RMF Knowledge Service
(Source: DoD/DSS, 30 Aug 2018.)
 
Attention Industry Partners, the Risk Management Framework (RMF) Knowledge Service site has been upgraded as of August 27, 2018. The majority of the functionality is available. However, the Enterprise Mission Assurance Support Service (eMASS) computer-based training and sponsorship sections of the site are not accessible. Since many in Industry do not have CACs, this is presenting a problem with accessing eMASS training and fulfilling sponsorship requirements. The DSS NISP Authorization Office (NAO) has reached out to the RMF Knowledge Service Technical Inquiries Team and DISA representatives for a status. We will continue to keep our Industry partners aware of any updates. Please feel free to reach out to NAO (
dss.quantico.dss-hq.mbx.odaa@mail.mil
) with any questions or concerns.
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OGS_a5
8. GAO: Export-Import Bank: Status of End-Use Monitoring of Dual-Use Exports as of August 2018

(Source: GAO Reports and Testimonies, 30 Aug 2018.)
 
What GAO Found
 
The Export-Import Bank (EXIM) monitored the end use of two dual-use export transactions–with the government of Mexico, and the government of Cameroon–that it continued to finance in fiscal year 2016. As of August 2018, EXIM received all documents from the government of Mexico on time and made a timely determination that Mexico was in compliance with the bank’s dual-use policy, but did not clearly document this determination until 3 months later, on July 26, 2018. The bank received the government of Cameroon’s annual end-use certification several days late and made a timely dual-use compliance determination for the Cameroon construction equipment. Regarding a third transaction that the bank continued to finance in 2016, Eutelsat paid off its loan in June 2017, almost 4 and a half years early, which, according to EXIM officials, ended the bank’s end-use monitoring of the transaction.
 
EXIM did not finance any new exports under its dual-use authority in fiscal year 2017, according to EXIM authorizations data and EXIM officials. According to EXIM officials, dual-use transactions require a quorum of board members for approval, and EXIM’s board has not had a quorum since late 2015, precluding the bank from financing such projects.
 
Why GAO Did This Study
 
EXIM’s mission is to support the export of U.S. goods and services overseas through loans, loan guarantees, and insurance, thereby supporting U.S. jobs. Since 1994, EXIM has had authority to facilitate the financing of U.S. exports of defense articles and services, provided that it determines these items are nonlethal and primarily meant for civilian end use. Included in the same act was a provision for GAO to report annually on the end uses of dual-use exports financed by EXIM during the second preceding fiscal year.
 
This report (1) examines the status of EXIM’s monitoring of dual-use exports that it continued to finance in fiscal year 2016, as of August 2018; and (2) identifies any new dual-use exports that EXIM financed in fiscal year 2017.
 
What GAO Recommends
 
GAO is not making any recommendations in this report.
 
For more information, contact Kimberly Gianopoulos at 202-512-8612 or gianopoulosk@gao.gov.

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OGS_a6
9. OMB/OIRA Reviews of Proposed Ex/Im Regulations
(Source: OMB/OIRA, 29 Aug 2018.)   
 
* Requirements for Requesting Exclusions From Remedies Instituted in Presidential Proclamations Adjusting Imports of Steel Mill Articles and Aluminum Into the U.S.; and Objections to Exclusion Requests
  – AGENCY: DOC-BIS
  – STAGE: Interim Final Rule
  – RECEIVED DATE: 29 Aug 2018
  – RIN: 0694-AH55
  – STATUS: Pending Review
* * * * * * * * * * * * * * * * * * * *

OGS_a7
10. State/DDTC: (No new postings.)
(Source: State/DDTC)
* * * * * * * * * * * * * * * * * * * *

OGS_a8
11. President Posts Proclamation Adjusting Imports of Aluminum into the United States

(Source: White House, 29 Aug 2018.)
 
  (1) On January 19, 2018, the Secretary of Commerce (Secretary) transmitted to me a report on his investigation into the effect of imports of aluminum articles on the national security of the United States under section 232 of the Trade Expansion Act of 1962, as amended (19 U.S.C. 1862). The Secretary found and advised me of his opinion that aluminum articles are being imported into the United States in such quantities and under such circumstances as to threaten to impair the national security of the United States. In light of this conclusion, the Secretary recommended action to adjust the imports of aluminum articles so that such imports will not threaten to impair the national security. The Secretary also recommended that I authorize him, in response to specific requests from affected domestic parties, to exclude from any adopted import restrictions those aluminum articles for which the Secretary determines there is a lack of sufficient domestic production capacity of comparable products, or to exclude aluminum articles from such restrictions for specific national security-based considerations.
 
  (2) In Proclamation 9704 of March 8, 2018 (Adjusting Imports of Aluminum Into the United States), I concurred in the Secretary’s finding that aluminum articles, as defined in clause 1 of Proclamation 9704, are being imported into the United States in such quantities and under such circumstances as to threaten to impair the national security of the United States, and decided to adjust the imports of these aluminum articles by imposing a 10 percent ad valorem tariff on such articles imported from most countries. I further authorized the Secretary to provide relief from these additional duties for any aluminum article determined not to be produced in the United States in a sufficient and reasonably available amount or of a satisfactory quality and also to provide such relief based on specific national security considerations.
 
  (3) Consistent with the Secretary’s recommendation that I authorize him to exclude from any adopted import restrictions those aluminum articles for which the Secretary determines there is a lack of sufficient domestic production of comparable products, or for specific national security-based considerations, I have determined to authorize the Secretary to provide relief from quantitative limitations on aluminum articles adopted pursuant to section 232 of the Trade Expansion Act of 1962, as amended, including those set forth in Proclamation 9758 of May 31, 2018 (Adjusting Imports of Aluminum Into the United States), on the same basis as the Secretary is currently authorized to provide relief from the duty established in clause 2 of Proclamation 9704.
 
  (4) In light of my determinations, I have considered whether it is necessary and appropriate in light of our national security interests to make any corresponding adjustments to the tariff or quotas imposed by previous proclamations. It is my judgment that it is necessary and appropriate, at this time, to maintain the current tariff and quota levels. As directed in Proclamation 9704, the Secretary shall continue to monitor imports of aluminum articles and inform me of any circumstances that, in his opinion, might indicate the need for further action under section 232 of the Trade Expansion Act of 1962, as amended.
 
  (5) The United States continues to hold discussions with countries on satisfactory alternative means to address the threatened impairment to our national security posed by aluminum articles imports. Should these discussions result in an agreement concerning such alternative means, I will take further action as appropriate.
 
  (6) Section 232 of the Trade Expansion Act of 1962, as amended, authorizes the President to adjust the imports of an article and its derivatives that are being imported into the United States in such quantities or under such circumstances as to threaten to impair the national security.
 
  (7) Section 604 of the Trade Act of 1974, as amended (19 U.S.C. 2483), authorizes the President to embody in the Harmonized Tariff Schedule of the United States (HTSUS) the substance of statutes affecting import treatment, and actions thereunder, including the removal, modification, continuance, or imposition of any rate of duty or other import restriction.
 
Now, Therefore, I, Donald J. Trump, President of the United States of America, by the authority vested in me by the Constitution and the laws of the United States of America, including section 232 of the Trade Expansion Act of 1962, as amended, section 301 of title 3, United States Code, and section 604 of the Trade Act of 1974, as amended, do hereby proclaim as follows:
 
  (1) The Secretary, in consultation with the Secretary of State, the Secretary of the Treasury, the Secretary of Defense, the United States Trade Representative (USTR), the Assistant to the President for National Security Affairs, the Assistant to the President for Economic Policy, and such other senior Executive Branch officials as the Secretary deems appropriate, is hereby authorized to provide relief from the quantitative limitations applicable to aluminum articles described in subheadings 9903.85.05 and 9903.85.06 of subchapter III of chapter 99 of the HTSUS for any aluminum article determined not to be produced in the United States in a sufficient and reasonably available amount or of a satisfactory quality, and is also authorized to provide such relief based upon specific national security considerations. Such relief shall be provided for an aluminum article only after a request for relief is made by a directly affected party located in the United States. Such relief may be provided to directly affected parties on a party

by

party basis taking into account the regional availability of particular articles, the ability to transport articles within the United States, and any other factors as the Secretary deems appropriate. If the Secretary determines that relief should be granted to a requesting party for the importation of a particular aluminum article, the Secretary shall publicly post such determination and notify U.S. Customs and Border Protection (CBP) of the Department of Homeland Security concerning such article so that it will be excluded from the applicable quantitative limitation. Relief granted under this clause shall apply only to an article entered for consumption, or withdrawn from warehouse for consumption, on or after the date on which the request for relief is granted by the Secretary. Until such time as any applicable quantitative limitation for a particular article has been reached, CBP shall count any aluminum article for which relief is granted under this clause toward such quantitative limitation at the time when such aluminum article is entered for consumption or withdrawn from warehouse for consumption. Any aluminum article for which relief is granted under this clause shall not be subject to the additional rate of duty set forth in Proclamation 9704, as amended. Aluminum articles for which relief is granted under this clause shall be subject to the duty treatment provided in subheading 9903.85.11 of subchapter III of chapter 99 of the HTSUS, as established by the Annex to this proclamation.
 
  (2) As soon as practicable, the Secretary shall issue procedures for the requests for exclusion described in clause 1 of this proclamation. The issuance of such procedures is exempt from Executive Order 13771 of January 30, 2017 (Reducing Regulation and Controlling Regulatory Costs). CBP shall implement exclusions granted pursuant to clause 1 of this proclamation as soon as practicable.
 
  (3) Clause 3 of Proclamation 9704, as amended by Proclamation 9710, is further amended by striking the fourth and fifth sentences and inserting in lieu thereof the following two sentences: “If the Secretary determines that a particular aluminum article should be excluded, the Secretary shall publicly post such determination and notify U.S. Customs and Border Protection (CBP) of the Department of Homeland Security concerning such article so that it will be excluded from the duties described in clause 2 of this proclamation. For merchandise entered for consumption, or withdrawn from warehouse for consumption, on or after the date the duty established under this proclamation is effective and with respect to which liquidation is not final, such relief shall be retroactive to the date the request for relief was accepted by the Department of Commerce.”.
 
  (4) Where the government of a country identified in the superior text to subheadings 9903.85.05 and 9903.85.06 of subchapter III of chapter 99 of the HTSUS notifies the United States that it has established a mechanism for the certification of exports to the United States of products covered by the quantitative limitations applicable to these subheadings, and where such mechanism meets the operational requirements for participation in an export certification system administered by the United States, CBP, in consultation with the Secretary, USTR, and other relevant executive departments and agencies, may require that importers of these products furnish relevant export certification information in order to qualify for the treatment set forth in subheadings 9903.85.05 and 9903.85.06. Where CBP adopts such a requirement, it shall publish in the Federal Register notice of the requirement and procedures for the submission of relevant export certification information. No article that is subject to the export certification requirement announced in such notice may be entered for consumption, or withdrawn from warehouse for consumption, on or after the effective date specified in such notice, except upon presentation of a valid and properly executed certification, in accordance with the procedures set forth in the notice.
 
  (5) Subdivision (c) of U.S. note 19 to subchapter III of chapter 99 of the HTSUS is amended by inserting at the end the following new sentence: “Pursuant to subheading 9903.85.11 and superior text thereto, the Secretary may provide that any excluded product shall be granted entry into the customs territory of the United States when the applicable quantitative limitation has filled for the specified period for such good.”.
 
  (6) Subdivision (d) of U.S. note 19 to subchapter III of chapter 99 of the HTSUS is amended by inserting after “9903.85.06” the phrase “and 9903.85.11”.
 
  (7) The superior text for subheadings 9903.85.05 and 9903.85.06 of the HTSUS is amended by deleting “Aluminum” and inserting in lieu thereof: “Except as provided in subheading 9903.85.11, aluminum”.
 
  (8) To implement clause 1 of this proclamation, subchapter III of chapter 99 of the HTSUS is modified as provided in the Annex to this proclamation.
 
  (9) The modifications to the HTSUS made by clauses 5 through 8 of this proclamation and the Annex to this proclamation shall be effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on August 30, 2018, and shall continue in effect, unless such actions are expressly reduced, modified, or terminated.
 
  (10) Clause 5 of Proclamation 9704 is amended by inserting “for consumption” after “goods entered” in the first sentence. Clause 5 of Proclamation 9710, as amended, is amended by striking “by this proclamation” from the end of the second sentence. Clause 5 of Proclamation 9739 is amended by striking “by clause 1 of this proclamation”.
 
  (11) The Secretary, in consultation with CBP and other relevant executive departments and agencies, shall revise the HTSUS so that it conforms to the amendments directed by this proclamation. The Secretary shall publish any such modification to the HTSUS in the Federal Register.
 
  (12) Any provision of previous proclamations and Executive Orders that is inconsistent with the actions taken in this proclamation is superseded to the extent of such inconsistency.
 
IN WITNESS WHEREOF, I have hereunto set my hand this twenty-ninth day of August, in the year of our Lord two thousand eighteen, and of the Independence of the United States of America the two hundred and forty-third.
 
DONALD J. TRUMP

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OGS_a9
12. President Posts Proclamation Adjusting Imports of Steel into the United States
(Source: White House, 29 Aug 2018.)
 
  (1) On January 11, 2018, the Secretary of Commerce (Secretary) transmitted to me a report on his investigation into the effect of imports of steel articles on the national security of the United States under section 232 of the Trade Expansion Act of 1962, as amended (19 U.S.C. 1862). The Secretary found and advised me of his opinion that steel articles are being imported into the United States in such quantities and under such circumstances as to threaten to impair the national security of the United States. In light of this conclusion, the Secretary recommended action to adjust the imports of steel articles so that such imports will not threaten to impair the national security. The Secretary also recommended that I authorize him, in response to specific requests from affected domestic parties, to exclude from any adopted import restrictions those steel articles for which the Secretary determines there is a lack of sufficient domestic production capacity of comparable products, or to exclude steel articles from such restrictions for specific national security-based considerations.
 
  (2) In Proclamation 9705 of March 8, 2018 (Adjusting Imports of Steel Into the United States), I concurred in the Secretary’s finding that steel articles, as defined in clause 1 of Proclamation 9705, as amended by clause 8 of Proclamation 9711 of March 22, 2018 (Adjusting Imports of Steel Into the United States), are being imported into the United States in such quantities and under such circumstances as to threaten to impair the national security of the United States, and decided to adjust the imports of these steel articles by imposing a 25 percent ad valorem tariff on such articles imported from most countries. I further authorized the Secretary to provide relief from these additional duties for any steel article determined not to be produced in the United States in a sufficient and reasonably available amount or of a satisfactory quality and also to provide such relief based on specific national security considerations.
 
  (3) Consistent with the Secretary’s recommendation that I authorize him to exclude from any adopted import restrictions those steel articles for which the Secretary determines there is a lack of sufficient domestic production of comparable products, or for specific national security-based considerations, I have determined to authorize the Secretary to provide relief from quantitative limitations on steel articles adopted pursuant to section 232 of the Trade Expansion Act of 1962, as amended, including those set forth in Proclamation 9740 of April 30, 2018 (Adjusting Imports of Steel Into the United States), and Proclamation 9759 of May 31, 2018 (Adjusting Imports of Steel Into the United States), on the same basis as the Secretary is currently authorized to provide relief from the duty established in clause 2 of Proclamation 9705.
 
  (4) In addition, I have been informed that the quantitative limitations set forth in Proclamation 9740 and Proclamation 9759 have in some cases already filled for this year, and that projects in the United States employing thousands of workers may be significantly disrupted or delayed because imports of specific steel articles, which were contracted for purchase prior to my decision to adjust imports of these articles, cannot presently be entered into the United States because the quantitative limits have already been reached. In light of these circumstances, and after considering the impact on the economy and the national security objectives of section 232 of the Trade Expansion Act of 1962, as amended, I have determined to direct the Secretary to provide relief from the quantitative limitations set forth in Proclamation 9740 and Proclamation 9759 in limited circumstances.
 
  (5) In light of my determinations, I have considered whether it is necessary and appropriate in light of our national security interests to make any corresponding adjustments to the tariff or quotas imposed by previous proclamations. It is my judgment that it is necessary and appropriate, at this time, to maintain the current tariff and quota levels. As directed in Proclamation 9705, the Secretary shall continue to monitor imports of steel articles and inform me of any circumstances that, in his opinion, might indicate the need for further action under section 232 of the Trade Expansion Act of 1962, as amended.
 
  (6) The United States continues to hold discussions with countries on satisfactory alternative means to address the threatened impairment to our national security posed by steel articles imports. Should these discussions result in an agreement concerning such alternative means, I will take further action as appropriate.
 
  (7) Section 232 of the Trade Expansion Act of 1962, as amended, authorizes the President to adjust the imports of an article and its derivatives that are being imported into the United States in such quantities or under such circumstances as to threaten to impair the national security.
 
  (8) Section 604 of the Trade Act of 1974, as amended (19 U.S.C. 2483), authorizes the President to embody in the Harmonized Tariff Schedule of the United States (HTSUS) the substance of statutes affecting import treatment, and actions thereunder, including the removal, modification, continuance, or imposition of any rate of duty or other import restriction.
 
Now, Therefore, I, Donald J. Trump, President of the United States of America, by the authority vested in me by the Constitution and the laws of the United States of America, including section 232 of the Trade Expansion Act of 1962, as amended, section 301 of title 3, United States Code, and section 604 of the Trade Act of 1974, as amended, do hereby proclaim as follows:
 
  (1) The Secretary, in consultation with the Secretary of State, the Secretary of the Treasury, the Secretary of Defense, the United States Trade Representative (USTR), the Assistant to the President for National Security Affairs, the Assistant to the President for Economic Policy, and such other senior Executive Branch officials as the Secretary deems appropriate, is hereby authorized to provide relief from the quantitative limitations applicable to steel articles described in subheadings 9903.80.05 through 9903.80.58 of subchapter III of chapter 99 of the HTSUS for any steel article determined not to be produced in the United States in a sufficient and reasonably available amount or of a satisfactory quality, and is also authorized to provide such relief based upon specific national security considerations. Such relief shall be provided for a steel article only after a request for relief is made by a directly affected party located in the United States. Such relief may be provided to directly affected parties on a party

by

party basis taking into account the regional availability of particular articles, the ability to transport articles within the United States, and any other factors as the Secretary deems appropriate. If the Secretary determines that relief should be granted to a requesting party for the importation of a particular steel article, the Secretary shall publicly post such determination and notify U.S. Customs and Border Protection (CBP) of the Department of Homeland Security concerning such article so that it will be excluded from the applicable quantitative limitation. Relief granted under this clause shall apply only to an article entered for consumption, or withdrawn from warehouse for consumption, on or after the date on which the request for relief is granted by the Secretary. Until such time as any applicable quantitative limitation for a particular article has been reached, CBP shall count any steel article for which relief is granted under this clause toward such quantitative limitation at the time when such steel article is entered for consumption or withdrawn from warehouse for consumption. Any steel article for which relief is granted under this clause shall not be subject to the additional rate of duty set forth in Proclamation 9705, as amended. Steel articles for which relief is granted under this clause shall be subject to the duty treatment provided in subheading 9903.80.60 of subchapter III of chapter 99 of the HTSUS, as established by the Annex to this proclamation.
 
  (2) The Secretary shall, on an expedited basis, grant relief from the quantitative limitations set forth in Proclamation 9740 and Proclamation 9759 and their accompanying annexes for any steel article where (i) the party requesting relief entered into a written contract for production and shipment of such steel article before March 8, 2018; (ii) such contract specifies the quantity of such steel article that is to be produced and shipped to the United States consistent with a schedule contained in such contract; (iii) such steel article is to be used to construct a facility in the United States and such steel article cannot be procured from a supplier in the United States to meet the delivery schedule and specifications contained in such contract; (iv) the payments made pursuant to such contract constitute 10 percent or less of the cost of the facility under construction; and (v) lack of relief from the quantitative limitations on such steel article would significantly disrupt or delay completion of the facility being constructed in the United States with the steel article specified in such contract. Until such time as any applicable quantitative limitation for a particular article has been reached, CBP shall count any steel article for which relief is granted under this clause toward such quantitative limitation at the time when such steel article is entered for consumption or withdrawn from warehouse for consumption. Any steel article for which relief is granted under this clause shall be subject to the additional rate of duty set forth in clause 2 of Proclamation 9705, as amended by this proclamation, when such steel article is entered for consumption or withdrawn from warehouse for consumption. This rate of duty is in addition to any other duties, fees, exactions, and charges applicable to such steel article. Any steel article provided relief under this clause must be entered for consumption, or withdrawn from warehouse for consumption, on or before March 31, 2019, and may not be granted further relief by the Secretary under clause 3 of Proclamation 9705, as amended. Steel articles for which relief is granted under this clause shall be subject to the duty treatment provided in subheading 9903.80.61 of subchapter III of chapter 99 of the HTSUS, as established by the Annex to this proclamation.
 
  (3) The Secretary shall grant relief under clause 2 of this proclamation only upon receipt of a sworn statement signed by the chief executive officer and the chief legal officer of the party requesting relief. Such statement shall attest that (i) the steel article for which relief is sought and the associated contract meet all of the criteria for relief set forth in clause 2 of this proclamation; (ii) the party requesting relief will accurately report to CBP, in the manner that CBP prescribes, the quantity of steel articles entered for consumption, or withdrawn from warehouse for consumption, pursuant to any grant of relief; and (iii) the quantity of steel articles entered pursuant to a grant of relief will not exceed the quantity specified in such contract for delivery on or before March 31, 2019. Upon granting relief under clause 2 of this proclamation, the Secretary shall notify CBP and publish a notice of relief for the quantity of steel articles specified in such contract that are scheduled for delivery on or before March 31, 2019. The Secretary shall revoke any grant of relief under clause 2 of this proclamation if the Secretary determines at any time after such grant that the criteria for relief have not been met and may, if the Secretary deems it appropriate, notify the Attorney General of the facts that led to such revocation.
 
  (4) As soon as practicable, the Secretary shall issue procedures for the requests for exclusion described in clause 1 of this proclamation. The issuance of such procedures is exempt from Executive Order 13771 of January 30, 2017 (Reducing Regulation and Controlling Regulatory Costs). CBP shall implement exclusions granted pursuant to clause 1 or relief provided under clause 2 of this proclamation as soon as practicable.
 
  (5) Clause 3 of Proclamation 9705, as amended by Proclamation 9711, is further amended by striking the fourth and fifth sentences and inserting in lieu thereof the following two sentences: “If the Secretary determines that a particular steel article should be excluded, the Secretary shall publicly post such determination and notify U.S. Customs and Border Protection (CBP) of the Department of Homeland Security concerning such article so that it will be excluded from the duties described in clause 2 of this proclamation. For merchandise entered for consumption, or withdrawn from warehouse for consumption, on or after the date the duty established under this proclamation is effective and with respect to which liquidation is not final, such relief shall be retroactive to the date the request for relief was accepted by the Department of Commerce.”.
 
  (6) In order to establish the duty rate on imports of steel articles for which relief is granted under clause 2 of this proclamation, clause 2 of Proclamation 9705, as amended, is further amended by striking the last sentence and inserting in lieu thereof the following two sentences: “All steel articles imports covered by subheading 9903.80.61, in subchapter III of chapter 99 of the HTSUS, shall be subject to the additional 25 percent ad valorem rate of duty established herein with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on the date specified in a determination by the Secretary granting relief. These rates of duty, which are in addition to any other duties, fees, exactions, and charges applicable to such imported steel articles, shall apply to imports of steel articles from each country as specified in the preceding three sentences.”.
 
  (7) Where the government of a country identified in the superior text to subheadings 9903.80.05 through 9903.80.58 of subchapter III of chapter 99 of the HTSUS notifies the United States that it has established a mechanism for the certification of exports to the United States of products covered by the quantitative limitations applicable to these subheadings, and where such mechanism meets the operational requirements for participation in an export certification system administered by the United States, CBP, in consultation with the Secretary, USTR, and other relevant executive departments and agencies, may require that importers of these products furnish relevant export certification information in order to qualify for the treatment set forth in subheadings 9903.80.05 through 9903.80.58. Where CBP adopts such a requirement, it shall publish in the Federal Register notice of the requirement and procedures for the submission of relevant export certification information. No article that is subject to the export certification requirement announced in such notice may be entered for consumption, or withdrawn from warehouse for consumption, on or after the effective date specified in such notice, except upon presentation of a valid and properly executed certification, in accordance with the procedures set forth in the notice.
 
  (8) Subdivision (c) of U.S. note 16 to subchapter III of chapter 99 of the HTSUS is amended by inserting at the end the following new sentence: “Pursuant to subheadings 9903.80.60 and 9903.80.61 and superior text thereto, the Secretary may provide that any excluded product shall be granted entry into the customs territory of the United States when the applicable quantitative limitation has filled for the specified period for such good.”.
 
  (9) Subdivision (d) of U.S. note 16 to subchapter III of chapter 99 of the HTSUS is amended by inserting after “9903.80.58” the phrase “and 9903.80.60 and 9903.80.61”.
 
  (10) The rate of duty specified in the HTSUS in the general column for heading 9903.80.01 is amended by striking “25%” and inserting in lieu thereof: “The duty provided in the applicable subheading + 25%”.
 
  (11) The rate of duty specified in the HTSUS in the general column for heading 9903.80.02 is amended by striking “50%” and inserting in lieu thereof: “The duty provided in the applicable subheading + 50%”.
 
  (12) The superior text for subheadings 9903.80.05 through 9903.80.58 of the HTSUS is amended by deleting “Iron” and inserting in lieu thereof: “Except as provided in subheadings 9903.80.60 and 9903.80.61, iron”.
 
  (13) To implement clauses 1 and 2 of this proclamation, subchapter III of chapter 99 of the HTSUS is modified as provided in the Annex to this proclamation.
 
  (14) The modifications to the HTSUS made by clauses 8 through 13 of this proclamation and the Annex to this proclamation shall be effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on August 30, 2018, and shall continue in effect, unless such actions are expressly reduced, modified, or terminated.
 
  (15) Clause 5 of Proclamation 9705 is amended by inserting “for consumption” after “goods entered” in the first sentence. Clause 5 of Proclamation 9711, as amended, is amended by striking “by this proclamation” from the end of the second sentence. Clause 6 of Proclamation 9740 is amended by striking “by clause 1 of this proclamation”.
 
  (16) The Secretary, in consultation with CBP and other relevant executive departments and agencies, shall revise the HTSUS so that it conforms to the amendments directed by this proclamation. The Secretary shall publish any such modification to the HTSUS in the Federal Register.
 
  (17) Any provision of previous proclamations and Executive Orders that is inconsistent with the actions taken in this proclamation is superseded to the extent of such inconsistency.
 
IN WITNESS WHEREOF, I have hereunto set my hand this twenty-ninth day of August, in the year of our Lord two thousand eighteen, and of the Independence of the United States of America the two hundred and forty-third.
 
DONALD J. TRUMP
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NWSNEWS

(Source:
Reuters, 30 Aug 2018.)
 
Iran has remained within the main restrictions on its nuclear activities imposed by a 2015 deal with major powers, a confidential report by the U.N. atomic watchdog indicated on Thursday.
 
In its second quarterly report since President Donald Trump announced in May that the United States would quit the accord and reimpose sanctions, the International Atomic Energy Agency said Iran had stayed within the caps on uranium enrichment levels, enriched uranium stocks and other items. …
 
With the United States reimposing its sanctions on Iran that were lifted under the nuclear deal, many diplomats and analysts now doubt that the accord will survive despite European Union efforts to counter some of the effects of Trump’s move.
 
Sticking to the nuclear accord is not the only way forward for Iran, Foreign Minister Mohammad Javad Zarif said on Thursday. “Being the party to still honor the deal in deeds & not just words is not Iran’s only option,” he said on Twitter.
 
Speaking after the IAEA report was sent to the agency’s member states, French Foreign Minister Jean-Yves Le Drian said the deal was still holding, despite the U.S. withdrawal.
 
He urged his fellow ministers, who met in Vienna on Thursday to discuss EU policy on Iran, to do more to protect Tehran from U.S. sanctions, calling for “permanent financial mechanisms that allow Iran to continue to trade”.
 
The EU implemented a law this month to shield European companies from the impact of U.S. sanctions on Tehran and has approved aid for the Iranian private sector, although large European companies are pulling out of Iran.
 
Adhering to the deal should bring Iran economic benefits, Zarif said. “If preserving (the) JCPOA (the deal) is the goal, then there is no escape from mustering the courage to comply with commitment to normalize Iran’s economic relations instead of making extraneous demands,” Zarif wrote on Twitter.
 
On Wednesday, Iranian Supreme Leader Ayatollah Ali Khamenei cast doubt on the ability of EU countries to save the agreement and said Tehran might abandon it.
 
Khamenei told President Hassan Rouhani not to rely too much on European support as he came under increased pressure at home over his handling of the economy in the face of U.S. sanctions, with key ministers under attack by parliament.
 
Le Drian, whose country signed the Iran deal along with Britain, Germany, China, Russia and the United States under then-President Barack Obama, said Tehran should be ready to negotiate on its future nuclear plans, its ballistic missile arsenal and its role in wars in Syria and Yemen.
 
Those issues were not covered by the 2015 deal and Trump has cited this as a major reason for pulling Washington out of it.
 
Le Drian said Iran, which says its missiles are only for defense, was arming regional allies with rockets and allowing “ballistic proliferation,” adding: “Iran needs to avoid the temptation to be the (regional) hegemon.”
 
Iran has ruled out negotiations on its ballistic missiles and broader Middle Eastern role.

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(Source:
WorldECR, 30 Aug)
 
  (1) No-deal BREXIT will render UK issued licences void for exports from EU (and vice versa)
  (2) BIS reaches settlement with Citibank over breach of anti-boycott rules
  (3) US sanctions Russia over its use of chemical weapons; UK calls on EU for further sanctions
  (4) Singapore Customs releases several notices to exporters
  (5) Iran sues US over re-imposition of sanctions following JCPOA exit
 

[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

 
The undeniable value of international collaboration places universities and other research facilities at high risk of breaching deemed export laws. Joint research projects, training programs and other cooperative activities necessitate the exchange of data, shared experiment results, and inter-campus visitation.
 
These activities open the door to a host of export compliance violations surrounding licensing errors and omissions, as well as the risk of receiving visitors whose name may exist on a Restricted or Denied Party List.
 
Fortunately, most vulnerable facilities maintain robust deemed export compliance programs to protect their controlled goods and technology. That’s a good thing, because the U.S. government is paying attention. The Federal Bureau of Investigation (FBI) is very interested in universities and research institutions, and they’re not limiting their attention to the activities that occur on U.S. soil. They continue to remain focused on Study Abroad programs that, while highly enriching, can be a threat to safety and security for young travelers and for the institutions they represent.
 
Many American universities have partner schools in locations around the world. The ones in China are of particular concern to FBI agents, perhaps due in part to an American student whose semester in Shanghai led to a chain of events that ended with a four-year sentence for espionage in a federal detention center. To make a long story short, the young man was paid by Chinese intelligence agents to take the US State Department test and try to join the CIA so that he could divulge secrets to the Chinese. It all began innocently enough with a job writing online articles. Unfortunately the hiring company was a front for a Chinese intelligence agency.
 
The FBI’s “Advice for U.S. College Students Abroad” outlines existing threats to students and the precautions they can take to avoid turning an invaluable learning experience into a disaster.
 
And when it comes to laptops, smartphones and other electronic devices, as outlined in “SAFETY AND SECURITY for US Students Traveling Abroad,” the risks are the same as for adults travelling for business or research purposes, and the advice is similar. To highlight just a few:
 
  (1) Obtain pre-travel country risk assessments for the country/countries being visited. There could be specific issues you need to be aware of.
  (2) Do not leave electronic devices unattended. That means laptops are not checked baggage. Shield passwords and avoid Wi-Fi networks (in some countries these networks are controlled by security services).
  (3) Use up-to-date protections for antivirus, spyware, security patches and firewalls. Do not use thumb drives given to you while abroad, as they could be compromised.
  (4) Sanitize your laptop, telephone and PDA prior to travel. Ensure no sensitive contact, research, or personal data is on them.
  (5) If your device is stolen, report it immediately to the US Embassy or Consulate.
  (6) Avoid illegal, improper or indiscreet actions. As the hapless American student discovered in Shanghai, if something sounds too good to be true, it probably is. When in doubt, report uncomfortable situations to U.S. authorities.
 
The above advice is a good start to preparing for that big overseas adventure, but it’s not a comprehensive list. Additional travel security tips and country threat information are available from the FBI upon request. If you or someone you care about is about to embark on a Study Abroad program, do your research, and ensure the trip memorable for the right reasons.
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(Source:
Volkov Law Group Blog, 29 Aug 2018. Reprinted by permission.)
 
* Author: Michael Volkov, Esq., Volkov Law Group, mvolkov@volkovlaw.com, 240-505-1992.
 
The Trump Administration issued a new executive order on August 6, 2018, in order to reimpose the first tranche of the Iran sanctions lifted by the former Joint Comprehensive Plan of Action (“JCPOA”). In doing so, the executive order consolidates relevant sanctions authorities and broadens the scope of the previous restrictions.
 
Companies will now have to comply with a renewed set of secondary sanctions, and prepare for the second and final tranche of reimposed sanctions which will be announced on November 4, 2018.
 
Interestingly, OFAC has adopted a new broad “material support” prohibition against companies and individuals who provide material support for, or goods and services in support of, persons subject to the Iran sanctions. Such a prohibition will apply to direct or indirect transactions that may ultimately benefit a prohibited entity or person. As a result, companies will have to take greater efforts to confirm that their products or services do not end up in the hands of a prohibited entity or person.
 
Even though the European Union has not followed suit in reimposing the Iran sanctions, many European companies have announced plans to discontinue business in Iran. In response to the August 6, 2018 action, the European Union announced a new blocking statute that is intended to punish companies and individuals that comply with the new, US sanctions regime against Iran. The EU’s blocking statute is expected to have little impact on EU company decisions to discontinue business in Iran.
 
As of August 7, 2018, the following sanctions were reinstated:
 
  – The purchase or acquisition of U.S. dollar banknotes by the Iran government.
  – Iran’s trade in gold or precious metals.
  – The direct or indirect sale, supply, or transfer to or from Iran of graphite, raw, or semi-finished metals such as aluminum and steel, coal, and software for integrating industrial processes.
  – Significant transactions related to the purchase or sale of Iranian rials, or the maintenance of significant funds or accounts outside Iran denominated in the Iran rial.
  – Purchase, subscription to, or facilitation of the issuance of Iran sovereign debt.
  – Iran’s automotive sector.
 
In addition, the wind-down period terminated for transactions related to: Iran commercial passenger aircraft pursuant to General License I; Iran-origin foodstuffs and carpets; and letters of credit and brokering services.
 
The next wind-down period ends on November 4, 2018, and previous sanctions will be re-imposed against Iran’s port operators and shipping and ship-building sectors; petroleum-related transactions; financial transactions and specialized messaging services with the Central Bank of Iran; underwriting and insurance services; and Iran’s energy sector. In addition, all activities under General License H will no longer be authorized.
 
The new executive order also broadens the scope of sanctions in effect prior to the JCPOA dated January 16, 2016. OFAC details this action in Frequently Asked Question 601 (here). These new actions include:
 
Specially Designated Nationals (SDNs): The executive order provides new authority to designate SDNs to include any person that on or after November 5, 2018 provides material support or goods or services in support of persons designated for: (1) providing support, or goods or services in support of the purchase or acquisition of U.S. bank notes or precious metals by the Iran government; (2) providing support, or goods or services in support of the National Iranian Oil Company (NIOC), the Nafitran Intertrade Oil Company (NIOC), or the Central Bank of Iran; or (3) being part of the Iranian energy sector, shipping, or shipbuilding sectors, being a port operator in Iran, or providing significant support of persons designated as SDNs.
 
Financial Institutions: The new executive order provides authority to prohibit or restrict correspondent and payable-through accounts of foreign financial institutions that knowingly conduct or facilitate significant transactions with persons designated under the new authorities outlined above.
 
Petroleum Transactions: The new executive order expands the menu of sanctions available to be imposed on persons who knowingly engage in significant transactions related to Iranian petroleum products and petrochemicals, including: (1) Visa restrictions on controlling officers and shareholders; (2) secondary sanctions on principal executive officers of a SDN; and (3) prohibitions on investing in or purchasing debt and equity instruments from a sanctioned person.
 
Foreign Subsidiaries of US Companies: The new executive order expands restrictions on foreign subsidiaries of U.S. owned or controlled companies by prohibiting transactions with persons blocked for any of the following activities: (1) providing material support for, or goods and services in support of, persons designated pursuant to Iran sanctions; and (2) being part of the Iranian energy sector, shipping or shipbuilding sectors, being a port operators in Iran or providing significant support of SDNs.
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(Source:
Export Law Blog, 30 Aug 2018. Reprinted by permission.)
 
* Author: R. Clifton Burns, Esq., Bryan Cave LLP, Wash DC, Clif.Burns@bryancave.com, 202-508-6067).
 
I wrote earlier this month on a State Department press release finding that Russia had used chemical weapons in the attacks on Sergei and Yulia Skirpal in the United Kingdom and that, accordingly, sanctions would be imposed on Russia pursuant to the Chemical and Biological Weapons Control and Warfare Elimination Act of 1991 (the “CBW Act”). That act requires the imposition of five sanctions, although the President has the authority to waive any or all of the sanctions based on national security considerations. On Monday, the State Department published a notice in the Federal Register imposing those sanctions, effective immediately. As expected, the application of certain of the sanctions was waived completely or partially, and the ones given full effect are unlikely to be of much concern to Russia.   As a result, it seems unlikely that Russia will find any reason to curtail its use of nerve agents around the world.
 
The first sanction required by the CBW Act is the termination of all foreign assistance to Russia under the Foreign Assistance Act of 1961. This sanctions was waived on national security grounds. It’s not clear why State bothered to use the national security waiver here, since Russia last received foreign assistance under the act in 2014 and none was scheduled to be provided in 2019 (or likely any time after that.)
 
The second required sanction is the termination of arms sales to Russia. State waived this sanction except “with respect to the issuance of licenses in support of government space cooperation and commercial space launches.” You’ve got to get supplies to the International Space Station somehow or other.  And, of course, DDTC stopped granting license to export most items on the USML back in 2014.
 
The notice imposes the third required sanction completely and without waiver. It terminates all “foreign military financing for Russia under the Arms Export Control Act.” This can hardly be an earth-shaking development. When was the last time the US financed arms sales to Russia? World War II?
 
The fourth sanction – denial to Russia of “any credit, credit guarantees, or other financial assistance by any department, agency, or instrumentality of the United States Government, including the Export-Import Bank of the United States” – is also imposed without any waiver. Again, this is a sanction without any forseeable impact given the likelihood that little, if any, such federal financial assistance is being provided to Russia.  The last transactions involving Russia financed by the EXIM Bank were in 2014.
 
The fifth required sanction under the CBW Act is the prohibition of “the export to Russia of any goods or technology” controlled on the Commerce Control List for NS reasons. The State Department notice here has a number of waivers that arguably are not very different from waiving the prohibition in its entirety.
 
Not surprisingly, the waiver includes any exports under license exception ENC. Remember that all encryption items, other than mass market items, are controlled for NS reasons, so this prohibition would have prohibited, say, exporting network equipment to Russia. How could we spy on them if we don’t sell them routers?  Which is why, of course, Russia limits imports from the United States of items, such as routers, with encryption functionality.  Other exceptions that survive the prohibition are GOV, RPL, BAG, TMP, TSU, APR, CIV, and AVS.
 
Beyond the waivers for exports under the aforementioned license exports, there are waivers for exports to wholly-owned U.S. subsidiaries, to commercial (i.e. non-governmental) enterprises, and to Russian nationals in the United States. Because Russia has always been subject to NS controls, these waived exports will still require, as they always have, licenses.
 
One final observation should be made on the meaning of “to Russia” in these sanctions. As noted the sanctions prohibit the provision of federal financial assistance “to Russia.” The reference in the fifth sanction to waivers for deemed exports to Russian nationals in the United States means that “to Russia” means to anyone in Russia and to any Russian outside Russia.  So, if that a Russian granted asylum in the United States is one of the victims of a natural disaster, FEMA could not provide any financial relief to that Russian.  That’ll teach Russia!
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TEEX/IM TRAINING EVENTS & CONFERENCES

TE_a1
18. ECTI Presents “United States Export Control (ITAR/EAR/OFAC) Seminar Series,” 12-15 Nov in Washington, DC 


(Source: Jill Kincaid; jill@learnexportcompliance.com)
 
* What: United States Export Controls (ITAR/EAR/OFAC) Seminar Series in Washington, DC
* When: ITAR Seminar:  November 12-13, 2018; EAR/OFAC Seminar: November 14-15, 2018
* Where: Washington, DC: Embassy Suites Alexandria Old Town 
* Sponsor: Export Compliance Training Institute (ECTI)
* ECTI Speaker Panel: Scott Gearity, Greg Creeser, Marc Binder, Melissa Proctor and Christopher Stagg
* Register: Here, or Jessica Lemon, 540-433-3977, jessica@learnexportcompliance.com.


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ENEDITOR’S NOTES

EN_a419
. New Edition of the BITAR is Available Today

(Source: Editor)
 
Today’s amendment to the ITAR (see Item # __ above) is included in the 30 August 2018 edition of Bartlett’s Annotated International Traffic in Arms Regulations, more commonly known as “The BITAR”.  Today’s ITAR amendment is not significant, as it merely continues the temporary amendment of USML Category XI that was posted last year on this date.  However, today’s update to the BITAR revises over 100 footnotes and Appendix items to correct the changed website URL addresses of DDTC publications and other agencies and commercial sites.  If you maintain a paper copy of the BITAR, you should reprint the entire BITAR (355 pages) and discard the former version, because many pages have changed – too many to list separately.  If you are a subscriber, please login to your account on the FCC website to download the 30 Aug 2018 version of BITAR.  If you are not yet a subscriber, you should be!  The BITAR contains all ITAR amendments to date plus a large Index, over 800 footnotes containing amendment histories, case annotations, practice tips, a list of all Consent Agreements since 1978, DDTC guidance, and explanations of errors in the official ITAR text.  The BITAR is revised and distributed as a new edition to subscribers within 24 hours after every ITAR amendment. Subscribe here

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EN_a120
. Bartlett’s Unfamiliar Quotations

(Source: Editor)
* Mary Shelley (Mary Wollstonecraft Shelley, née Godwin; 30 Aug 1797 – 1 Feb 1851; was an English novelist, short story writer, dramatist, essayist, biographer, and travel writer, best known for her Gothic novel, Frankenstein: or, The Modern Prometheus (1818). She also edited and promoted the works of her husband, the Romantic poet and philosopher Percy Bysshe Shelley.)
  – “I do not wish women to have power over men; but over themselves.”
 
* Ted Williams (Theodore Samuel “Ted” Williams; 30 Aug 1918 – 5 Jul 2002; was an American professional baseball player and manager.  Williams was a nineteen-time All-Star, a two-time recipient of the American League (AL) Most Valuable Player Award, a six-time AL batting champion, and a two-time Triple Crown winner. He finished his playing career with a .344 batting average, 521 home runs, and a .482 on-base percentage, the highest of all time.)
  – “By the time you know what to do, you’re too old to do it.”

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EN_a221. 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: 30 Aug 2018: 83 FR 44216-44228: Revisions to the Export Administration Regulations Based on the 2017 Missile Technology Control Regime Plenary Agreements

 

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: 
14 Aug 2018: 
Harmonized System Update 1812
, containing 27 ABI records and 6 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:
30 Aug 2018: 83 FR 44228-44229, USML Chapter XI(c). 

  – The only available fully updated copy (latest edition: 30 Aug 2018) of the ITAR with all amendments is contained in Bartlett’s Annotated ITAR (“BITAR”), by James E. Bartlett III. The BITAR contains all ITAR amendments to date, plus a large Index, over 800 footnotes containing amendment histories, case annotations, practice tips, DDTC guidance, and explanations of errors in the official ITAR text. Subscribers receive updated copies of the BITAR in Word by email, usually revised within 24 hours after every ITAR amendment.
The BITAR is available by annual subscription from the Full Circle Compliance 
website
. BAFTR subscribers receive a 25% discount on subscriptions to the BITAR, please
contact us
to receive your discount code.
 

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EN_a322
. 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.

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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, Alex Witt. 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.

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