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18-0921 Friday “Daily Bugle”

18-0921 Friday “Daily Bugle”

Friday, 21 September 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
.

  1. DHS/CBP Discontinues Broker ISA PC Test
  2. USTR Modifies Section 301 Action: China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation
  1. Items Scheduled for Publication in Future Federal Register Editions 
  2. Commerce/BIS: (No new postings.)
  3. CRS Issues Report on U.S. Export Control System and Export Control Reform Initiative
  4. DHS/CBP Releases Update Concerning Section 301 Trade Remedies Assessed on Certain Products from China
  5. State/DDTC: (No new postings.)
  1. Forbes: “Five Reasons Why the World’s Tech Firms Are Moving to Singapore”
  2. GBTimes: “China Rolls Out Measures to Ease Import and Export Restrictions”
  3. Reuters: “U.S. Sanctions China for Buying Russian Fighter Jets, Missiles”
  4. ST&R Trade Report: “Senate Hearing on Auto Tariffs Scheduled for 26 Sept”
  1. M. Volkov: “A Compliance Priority – Watching Where Your Money Goes”
  1. List of Approaching Events: 10 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 (19 Sep 2018), DOD/NISPOM (18 May 2016), EAR (13 Sep 2018), FACR/OFAC (29 Jun 2018), FTR (24 Apr 2018), HTSUS (14 Aug 2018), ITAR (30 Aug 2018) 
  3. Weekly Highlights of the Daily Bugle Top Stories 

EXIMITEMS FROM TODAY’S FEDERAL REGISTER

EXIM_a1

1. 
DHS/CBP Discontinues Broker ISA PC Test 
(Source: 
Federal Register, 21 Sep 2018.) [Excerpts.] 
 
83 FR 47931-47932: Discontinuation of Customs Broker Importer Self-Assessment Pre-Certification Test
 
* AGENCY: U.S. Customs and Border Protection; Department of Homeland Security.
* ACTION: 
General notice.
* SUMMARY: On April 17, 2013, U.S. Customs and Border Protection (CBP) announced a test allowing customs brokers to pre-certify importers for participation in the Importer Self-Assessment (ISA) program. The Customs Broker Importer Self-Assessment Pre-Certification (Broker ISA PC) test was intended to leverage customs brokers’ relationships with importers to facilitate and promote importer participation in the ISA program. Unfortunately, there was minimal importer participation in the test; thus, CBP has determined that it is not effective to continue with the Broker ISA PC test. This notice announces CBP’s intention to discontinue the test and not to move forward with a permanent Broker ISA PC program.
* DATES: As of September 21, 2018, the test is discontinued. … 
 
Dated: September 18, 2018.
 
Todd C. Owen, Executive Assistant Commissioner, Office of Field Operations.

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

EXIM_a2

2. 
USTR Modifies Section 301 Action: China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation
(Source: 
Federal Register, 21 Sep 2018.) [Excerpts.] 
 
83 FR 47974-4819: Notice of Modification of Section 301 Action: China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation
 
* AGENCY: Office of the United States Trade Representative.
* ACTION: Notice of modification of action.
* SUMMARY: In accordance with the specific direction of the President, the U.S. Trade Representative (Trade Representative) has determined to modify the prior action in this investigation by imposing additional duties on products of China classified in the subheadings of the Harmonized Tariff Schedule of the United States (HTSUS) set out in Annex A to this notice. The rate of additional duty is initially 10 percent ad valorem. On January 1, 2019, the rate of additional duty will increase to 25 percent ad valorem.
* DATES: 
  – September 24, 2018: Additional duties at a rate of 10 percent ad valorem on the tariff subheadings set out in the Annexes to this notice are applicable with respect to products that are entered for consumption, or withdrawn from warehouse for consumption, on or after September 24, 2018.
  – January 1, 2019: The rate of additional duty will increase to 25 percent ad valorem with respect to products that are entered for consumption, or withdrawn from warehouse for consumption, on or after January 1, 2019. … 
 
  Robert E. Lighthizer,
United States Trade Representative.
 
  – 
Annex A

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

OGSOTHER GOVERNMENT SOURCES

OGS_a13
. Items Scheduled for Publication in Future Federal Register Editions
 

(Source:
Federal Register)
* DHS/CBP; NOTICES; Agency Information Collection Activities; Proposals, Submissions, and Approvals: Entry and Manifest of Merchandise Free of Duty, Carrier’s Certificate and Release [Publication Date: 24 Sep 2018.]

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

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

OGS_a03
5
CRS Issues Report on U.S. Export Control System and Export Control Reform Initiative 

(Source: 
Congressional Research Service, 9 Aug 2018.) 
 
The full report is available 
here (pdf). A summary is included below.
 
Summary
 
Difficulty with striking an appropriate balance between national security and export competitiveness has made the subject of export controls controversial for decades. Through the Arms Export Control Act (AECA), the International Emergency Economic Powers Act (IEEPA), and other authorities, the United States restricts the export of defense articles; dual-use goods and technology; certain nuclear materials and technology; and items that would assist in the proliferation of nuclear, chemical, and biological weapons or the missile technology used to deliver them. U.S. export controls are also used to restrict exports to certain countries on which the United States imposes economic sanctions. The Export Administration Act (EAA) legislated dual-use controls, but it has expired and such controls are presently maintained under IEEPA authorities.
 
The U.S. export control system is diffused among several different licensing and enforcement agencies. Exports of dual-use goods and technologies-as well as some military items-are licensed by the Department of Commerce, munitions are licensed by the Department of State, and restrictions on exports based on U.S. sanctions are administered by the U.S. Department of the Treasury. Administrative enforcement of export controls is conducted by these agencies, while criminal penalties are issued by units of the Department of Homeland Security and the Department of Justice.
 
Aspects of the U.S. export control system have long been criticized by exporters, nonproliferation advocates, allies, and other stakeholders as being too rigorous, insufficiently rigorous, cumbersome, obsolete, inefficient, or combinations of these descriptions. In August 2009, the Barack Obama Administration launched a comprehensive review of the U.S. export control system. In April 2010, then-Defense Secretary Robert M. Gates proposed an outline of a new system based on four singularities
 
  –  a single export control licensing agency for dual-use, munitions exports, and Treasury-administered embargoes,
  – a unified control list,
  – a single primary enforcement coordination agency, and
  – a single integrated information technology (IT) system.
 
The rationalization of the two control lists was the Obama Administration’s focus. The Administration made no specific proposals concerning the single licensing agency, although the Administration implemented some elements of a future single system, such as a consolidated screening list and harmonization of certain licensing policies.
 
In considering the future of the U.S. export control system, Congress may weigh the merits of a unified export control system-a chief goal of President Obama’s proposal-or the continuation of the present bifurcated system by reauthorizing the EAA or enacting replacement legislation. In doing so, Congress may debate the record of the present dual-use system maintained by emergency authority, the aims and effectiveness of the present nonproliferation control regimes, the maintenance of the defense industrial base, and the balance between maintaining economic competitiveness and preserving national security.

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

OGS_a04
6. 
DHS/CBP Releases Update Concerning Section 301 Trade Remedies Assessed on Certain Products from China 

(Source: 
CSMS# 18-000554, 21 Sep 2018.)

Background
 
On August 18, 2017, the Office of the United States Trade Representative (USTR) initiated an investigation under Section 301 of the Trade Act of 1974 into the government of China’s acts, policies, and practices related to technology transfer, intellectual property, and innovation. On June 20, 2018, the USTR published a Notice of Action and Request for Public Comment Concerning Proposed Determination of Action Pursuant to Section 301, imposing additional import duties on a list of Chinese products. See Federal Register 83 FR 28710 (June 20, 2018). On August 16, 2018, the USTR published a Notice of Action providing for the imposition of additional import duties on a second list of Chinese Products. See Federal Register 83 FR 40823 (August 16, 2018).

  On September 21, 2018, the USTR published a Notice of Modification of Action providing for the imposition of additional import duties on a third list of Chinese products. The September 21, 2018 list of products covered by the Section 301 remedy, which comprises over 5,700 full and partial eight-digit Harmonized Tariff Schedule of the United States (HTSUS) subheadings, which can be found in Annex A to the USTR’s September 21, 2018 Notice. See Federal Register Notice 83 FR 47974. 

Guidance
 
Products Covered by the September 21, 2018 List for the Section 301 Action

The additional import duties for Chinese goods covered by the September 21, 2018 list of products subject to the Section 301 action are effective with respect to goods entered, or withdrawn from warehouse for consumption, on or after 12:01 AM eastern daylight time on September 24, 2018.

  Any article classified in a subheading covered by the September 21 list that is a product of China is subject to a 10% ad valorem duty rate, in addition to the general (Column 1) rate of duty for that particular subheading.

  There are two special tariff numbers that will apply to goods covered by the September 21, 2018 list, 9903.88.03 and 9903.88.04. Heading 9903.88.03 covers all subheadings listed in U.S. note 20(f) to Subchapter III to Chapter 99 (5,734 eight-digit HTSUS subheadings); heading 9903.88.04 covers all subheadings listed in U.S. note 20(g) to Subchapter III to Chapter 99 (11 eight-digit HTSUS subheadings with partial exceptions at the 10-digit level).

  In addition to reporting the Chapter 1-97 HTSUS classification of the imported merchandise, importers shall also report the relevant 9903.88.03 or 9903.88.04 special tariff number for goods subject to the additional duty assessment of 10% ad valorem as a result of the Section 301 trade remedy.

  

  9903.88.03: 10% ad valorem additional duty for articles the product of China,… as enumerated in U.S. note 20(f) to Subchapter III to Chapter 99.

  9903.88.04: 10% ad valorem additional duty for articles the product of China,… as enumerated in U.S. note 20(g) to Subchapter III to Chapter 99.

 
Please note that in accordance with Annex B to the September 21, 2018 notice of action, effective 12:01 AM Eastern Standard Time on January 1, 2019, the additional rates of duty imposed by headings 9903.88.03 and 9903.88.04 will increase to 25% ad valorem.

  The product descriptions provided in Annex C to the September 21, 2018 notice of action are provided for informational purposes only, and are not legally controlling. The provisions of the relevant HTSUS subheadings listed in Annex A are controlling for the purpose of determining whether a good is subject to the Section 301 remedy.

New Statistical Reporting Number for Subheading 8517.62.00, HTSUS


U.S. note 20(g)(2) to Subchapter III to Chapter 99 indicates that heading 9903.88.04 applies to articles classified in subheading 8517.62.00, except for machines provided for in statistical reporting number 8517.62.0090. 8517.62.0090 is a new statistical reporting number that will be added to the HTSUS on or before September 24, 2018. For more information, see 
https://www.usitc.gov/tariff_affairs.htm.

Products Covered by the June 20, 2018 and August 16, 2018 Lists for the Section 301 Action

The instructions for goods covered by the June 20, 2018 and August 16, 2018 lists remain unchanged. 

  The additional import duties for Chinese goods covered by the June 20, 2018 list were effective with respect to goods entered, or withdrawn from warehouse for consumption, on or after 12:01 AM eastern daylight time on July 6, 2018.

  In addition to reporting the Chapters 1-97 HTSUS classification of the imported merchandise, importers shall also report the 9903.88.01 special tariff number for goods subject to the additional duty assessment of 25% ad valorem as a result of the Section 301 trade remedy.

  The additional import duties for Chinese goods covered by the August 16, 2018 list were effective with respect to goods entered, or withdrawn from warehouse for consumption, on or after 12:01 AM eastern daylight time on August 23, 2018.

  In addition to reporting the Chapter 1-97 HTSUS classification of the imported merchandise, importers shall also report the 9903.88.02 special tariff number for goods subject to the additional duty assessment of 25% ad valorem as a result of the Section 301 trade remedy

All Products Covered by Section 301 Duties

The Section 301 duties only apply to products of China, and are based on the country of origin, not country of export.

Chapter 98

 
The additional duties imposed by headings 9903.88.01 through 9903.88.04 do not apply to goods for which entry is properly claimed under a provision of chapter 98 of the HTSUS, except for goods entered under headings 9802.00.40, 9802.00.50, 9802.00.60, and 9802.00.80. For headings 9802.00.40, 9802.00.50, and 9802.00.60, the additional duties apply to the value of repairs, alterations, or processing performed abroad, as described in the applicable heading. For heading 9802.00.80, the additional duties apply to the value of the article less the cost or value of such products of the United States, as described in heading 9802.00.80.  

Chapter 98 Filing Instructions

 
When submitting an entry in which a heading or subheading in Chapter 98 is claimed on merchandise covered by the Section 301 remedy, the following instructions will apply.

  When submitting an entry using a Chapter 98 provision that normally requires the reporting of a secondary Chapter 1-97 HTSUS classification, a filer must first report subheading 9903.88.01, 9903.88.02, 9903.88.03, or 9903.88.04, as applicable, followed by the applicable Chapter 98 subheading, and the Chapter 1-97 HTSUS classification for the commodity being imported.
  When submitting an entry using a Chapter 98 provision that does not normally require the reporting of a secondary Chapter 1-97 HTSUS classification, neither 9903.88.01/02/03/04 nor the Chapter 1-97 HTSUS should be reported. 

  When submitting an entry for a Temporary Importation under Bond (TIB), a filer must first report the applicable subheading in Chapter 98 (i.e., in heading 9813), followed by subheading 9903.88.01/02/03/04, and the Chapter 1-97 HTSUS for the commodity being imported.

Trade Preference Programs And Temporary Reductions In Rates Of Duty
 
Products of China that are covered by the Section 301 remedy and that are eligible for special tariff treatment under general note 3(c)(i) to the tariff schedule, or that are eligible for temporary duty exemptions or reductions under subchapter II to chapter 99, shall be subject to the additional 25 percent ad valorem rate of duty imposed by headings 9903.88.01 and 9903.88.02, or the additional 10 percent ad valorem rate imposed by heading 9903.88.03 and 9903.88.04.

Drawback

 
Section 301 duties are eligible for duty drawback.


For Further Information 
 
For further information, please refer to the USTR’s Notice of Action and Request for Public Comment Concerning Proposed Determination of Action Pursuant to Section 301: China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation, 83 FR 28710 (June 20, 2018); the August 16, 2018 Notice of Action Pursuant to Section 301, 83 FR 40823 (August 16, 2018); and the September 21, 2018 Notice of Modification of Action Pursuant to Section 301, 83 FR 47974.

  Questions related to Section 301 entry filing requirements should be emailed to 
traderemedy@cbp.dhs.gov. Questions from the importing community concerning ACE rejections should be referred to their Client Representative. 

 
  – Related CSMS No. 18-000498 , 18-000493, 18-000419

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

OGS_a05
7. 
State/DDTC: (No new postings.)

(Source: 
State/DDTC)

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

NWSNEWS

(Source: 
Forbes, 21 Sep 2018.) [Excerpts.] 
 
The city-state of Singapore has emerged as a world-class technology hub in Asia and has become a favored destination for firms looking to springboard into the region’s growing markets. … 
 
Beyond the risks of tariff wars is an even bigger overarching reality: the intensifying U.S.-China geopolitical rivalry. As Washington steps up efforts to counter Beijing’s capacity building in key technology sectors, American and foreign tech companies face new constraints. Partnering with a black-listed entity, for example, could expose a company to blocked business deals, increased export controls, technology licensing and sanctions – all of which wreak havoc on day-to-day supply chain activities. Multinational firms, therefore, must increasingly ring fence strategic technology ecosystems in order to comply with sanctions and national security regulations. Singapore, which has in place its own framework of export controls and licensing protocols based on Western rules frame-works, provides a good fit for foreign firms looking to manage export controls. … 

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

(Source: 
GBTimes, 19 Sep 2018.) [Excerpts.] 
 
China rolled out measures to further its opening-up policy and boost trade at a Li Keqiang-chaired executive meeting of the State Council in Beijing on Tuesday.
 
In order to maintain steady growth in both the import and export sectors, China will advance trade facilitation by shortening its customs clearance times, reducing the costs involved and minimizing the documents required.
 
In addition, companies will be able to get customs clearance documents processed online and complete the verification process at ports as of November 1 this year.
 

Further, a large number of resource products, such as imported minerals, will be able to pass through ports before being verified and there are plans to introduce express channels for agriculture products. … 

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

NWS_a3
10
Reuters: “U.S. Sanctions China for Buying Russian Fighter Jets, Missiles”

(Source: 
Reuters, 21 Sep 2018.) [Excerpts.] 
 
The Trump administration imposed sanctions on the Chinese military on Thursday for buying fighter jets and missile systems from Russia, in breach of a sweeping U.S. sanctions law punishing Moscow for meddling in the 2016 U.S. election. …
 
The U.S. State Department said it would immediately impose sanctions on China’s Equipment Development Department (EDD), the military branch responsible for weapons and equipment, and its director, Li Shangfu, for engaging in “significant transactions” with Rosoboronexport, Russia’s main arms exporter.
 
The sanctions are related to China’s purchase of 10 SU-35 combat aircraft in 2017 and S-400 surface-to-air missile system-related equipment in 2018, the State Department said.
 
They block the Chinese agency, and Li, from applying for export licenses and participating in the U.S. financial system.
 
It also adds them to the Treasury Department’s list of specially designated individuals with whom Americans are barred from doing business.
 
The U.S. also blacklisted another 33 people and entities associated with the Russian military and intelligence, adding them to a list under the 2017 law, known as the Countering America’s Adversaries Through Sanctions Act, or CAATSA. … 
 
Doing significant business with anyone on the U.S. blacklist can trigger sanctions like those imposed on China.
 
Some of those added to the list, which now contains 72 names, were indicted in connection with Russian interference in the 2016 U.S. election, a U.S. official said.
 
President Donald Trump on Thursday issued an executive order intended to facilitate implementation of the sanctions. … 

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NWS_a4
11
ST&R Trade Report: “Senate Hearing on Auto Tariffs Scheduled for 26 Sept” 

(Source: 
Sandler, Travis & Rosenberg Trade Report, 21 Sep 2018.)
 
The Senate Finance Committee will hold a hearing 26 Sept at 10:30 a.m. EST to examine the impact of tariffs on the U.S. automotive industry. Chairman Hatch (R-Utah) said that, as the Trump administration continues to rely on tariffs to resolve trade issues, he looks forward to hearing from various witnesses “to learn more about the potential harm tariffs could have on the industry and how they may be passed along to consumers.”
 
The Department of Commerce on 23 May self-initiated an investigation under section 232 of the Trade Expansion Act of 1962 to determine whether imports of automobiles (including SUVs, vans, and light trucks) and auto parts are harming U.S. national security. If the DOC finds that excessive automobile and auto parts imports are a threat to U.S. national security, and the president concurs, the president has the authority to adjust imports, including through the use of tariffs and quotas.

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COMMCOMMENTARY

COMM_a2a
12
M. Volkov: “A Compliance Priority – Watching Where Your Money Goes”

(Source: 
Volkov Law Group Blog, 20 Sep 2018. Reprinted by permission.) 
 
* Author: Michael Volkov, Esq., Volkov Law Group, 
mvolkov@volkovlaw.com, 240-505-1992. 
 
“His money is twice tainted: taint yours and taint mine.”
  – Mark Twain
 
In a number of enforcement contexts, I am always struck by a common theme – crooks are able to obtain access to corporate money for improper purposes.  You never hear about a crook who uses his own money to pay bribes or secure any illegal advantage.
 
Companies have to maintain vigilant financial controls to protect against theft, fraud and misuse of corporate funds.  There are a number of sources available from which corporate crooks can fund their illegal schemes.
 
There are several potential sources that recur in the corporate finance world – third-party intermediaries, procurement and expense reimbursement.
 
In China and other high-risk countries, third party intermediaries are often used as a way for an insider to collude and secure money with the assistance of the third party. These schemes are often used and involve agents, distributors and shadow/fake vendors.  The insider has to collude with the outside third party to help secure funds for a variety of illegal purposes – to steal for their own benefit and/or to pay bribes are good examples.
 
In many cases, an inside may have a family member or friend on the outside participate in the scheme. In these cases, they have two significant hurdles – they have to avoid any conflict of interest detection, which is relatively easy, and they have to overcome financial controls, vendor onboarding and accounts payable scrutiny.  This is why a company’s internal controls and the role of various gatekeepers are critical.  When an insider colludes with an outsider, it is difficult to catch.
 
The SEC has underscored this critical issue by pointing to the importance of invoice-to-payment processes. In many FCPA enforcement actions, the SEC has highlighted the weakness or absence of such controls as a reason that bribery may have occurred.
 
Procurement functions at companies have taken on greater roles in protecting against potential fraud against the company in managing vendors and suppliers.  The nature and extent of these risks in the supply chain are exponential and it is easy to get overwhelmed by permutations of risk.
 
In high-risk countries, one of the most significant risks is when a company appoints a local employee to manage the procurement function.  I have heard from company after company that they had to fire their procurement officer for taking bribes from potential vendors (some like to call this incoming bribes as opposed to outgoing bribes).  The local employee in a high-risk company can bring benefits from knowing potential vendors and their reputations.  At the same time, they can create significant risks because of those same connections.  It is important to build robust controls around the local procurement manager in these situations.
 
Another important source of illegal funds are employee reimbursement expenses – such as travel, lodging, meals, entertainment and comparable funding sources.  I do not intend to review the numerous cases in which these funds were misused to fund bribery or used by a crook to steal from the company.
 
Companies have recognized this issue and they are revamping their programs to require pre-approval and appropriate documentation before paying the expense.  Millions and millions (like Carl Sagan’s famous “billions and billions”) have been lost in this area, and funded numerous illegal schemes and fraudulent activities.
 
Yet it seems that companies have not recognized this problem to warrant revisiting and revamping their internal accounting controls surrounding this risk.  Some companies are still relying on retrospective reimbursement without requiring pre-approvals and adequate documentation.  Such an approach is outdated and poses real and significant risks.

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

TEEX/IM TRAINING EVENTS & CONFERENCES

TE_a3
13. 
List of Approaching Events: 10 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 Alexander Witt, Events & Jobs Editor (email: 
awitt@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

 
 


* 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: Houston, TX; “
Federal Maritime Commission – Trade & Compliance
“; Foreign Trade Association (FTA)

* 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 3: London, UK; “Control List Classification – Combined Dual-Use and Military“; UK Department for International Trade
* Oct 4: London, UK; “Making better License Applications“; UK Department for International Trade

* 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: Dallas Fort-Worth, TX; “
AES/ACA Compliance
“; North Texas Customs Brokers and Freight Forwarders Association (NTCBFFA)

* 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: Adelaide, Australia; 
Defence Export Controls Outreach
; Australian Department of Defense

*
 Oct 23: Kontich, Belgium; “
Export Control Compliance Basics
“; Customs4Trade

*
Oct 23-24: New Orleans, LA; “
Complying with U.S. Export Controls – 2 Days
“; 
Commerce/BIS;


Oct 24: Arlington, VG; “
2018 Information Technology & Export Controls
“; Society for International Affairs (SIAED);

* 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 25: New Orleans, LA; “
How to Build an Export Compliance Program – 1 Day
“; 
Commerce/BIS;

* 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 30 – Nov 1: Chicago, IL; ”
Export Controls Specialist – Certification
“; Global Trade Academy

*
 
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 6: Manchester, UK; “Export Control Symposium Autumn 2018“; UK Department for International Trade

* 
Nov 6-7: Düsseldorf, Germany; “Customs Compliance in Europe 2018 Conference“; NielsonSmith


* 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 14-15: London, UK; “
Export Controls, ICPs and Good Practice
“; WorldECR

* 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 20: Sydney, Australia; 
Defence Export Controls Outreach
; Australian Department of Defense;


Nov 21: Brussels, Belgium; “
Academic Export Control Outreach Event
“;

Flanders Department of Foreign Affairs;

* Nov 21: London, UK; “Cyber Export Controls“; UK Department for International Trade

* 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 6: San Pedro, CA; “
2018 FTA Holiday Celebration
“; Foreign Trade Association (FTA)

* 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

* Jan 30-31: Washington, DC; “
5th National Forum on CFIUS
;” American Conference Institute (ACI)

* Feb 6-7: Orlando, FL; “
Boot Camp: Achieving ITAR/EAR Compliance
“; Export Compliance Solutions (ECS)

* 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 


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

* Sep 25: Webinar; “
Meeting CBP’s Informed Compliance and Reasonable Care Standards
;” Sandler, Travis & Rosenberg, P.A. (ST&R)

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

* Oct 2: Webinar; “
Mitigating Section 301 Duties With First Sale Customs Valuation
;” Sandler, Travis & Rosenberg, P.A. (ST&R)
* Oct 10: Webinar; “
Advanced Classification, Part 2
;” Sandler, Travis & Rosenberg, P.A. (ST&R)

* 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_a114
. Bartlett’s Unfamiliar Quotations

(Source: Editor)

Michael Faraday 
(22 Sep 1791 – 25 Aug 1867, was an English scientist who contributed to the study of electromagnetism and electrochemistry.)
  – “The lecturer should give the audience full reason to believe that all his powers have been exerted for their pleasure and instruction.”
 
Friday funnies:
* “I like nonsense, it wakes up the brain cells. Fantasy is a necessary ingredient in living, It’s a way of looking at life through the wrong end of a telescope. Which is what I do, And that enables you to laugh at life’s realities.”
  – Dr. Seuss (1904 – 1991)
 
* “Insane people are always sure that they are fine. It is only the sane people who are willing to admit that they are crazy.”
  – Nora Ephron 
(1941 – 2012) 

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

EN_a215. 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: 19 Sep 2018: 
83 FR 47283-47284
: Extension of Import Restrictions Imposed on Archaeological Material From Cambodia 
DOD NATIONAL INDUSTRIAL SECURITY PROGRAM OPERATING MANUAL (NISPOM): DoD 5220.22-M

  – Last Amendment: 18 May 2016: Change 2
: Implement an insider threat program; reporting requirements for Cleared Defense Contractors; alignment with Federal standards for classified information systems; incorporated and cancelled Supp. 1 to the NISPOM (Summary 
here
.)


EXPORT ADMINISTRATION REGULATIONS (EAR): 15 CFR Subtit. B, Ch. VII, Pts. 730-774 

  – Last Amendment: 13 Sep 2018: 
83 FR 46391-46392
: Addition of Certain Entities to the Entity List, Revision of Entries on the Entity List and Removal of Certain Entities From the Entity List; Correction

 

FOREIGN ASSETS CONTROL REGULATIONS (OFAC FACR): 31 CFR, Parts 500-599, Embargoes, Sanctions, Executive Orders

  – Last Amendment:
29 June 2018: 83 FR 30541-30548: Global Magnitsky Sanctions Regulations; and 83 FR 30539-30541: Removal of the Sudanese Sanctions Regulations and Amendment of the Terrorism List Government Sanctions Regulations 

 

FOREIGN TRADE REGULATIONS (FTR): 15 CFR Part 30  

  – Last Amendment: 24 Apr 2018:
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.

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

EN_a316
. 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, 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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