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18-1002 Tuesday “Daily Bugle”

18-1002 Tuesday “Daily Bugle”

Tuesday, 2 October 2018

TOP
The Daily Bugle is a free daily newsletter from Full Circle Compliance, containing changes to export/import regulations (ATF, DOE/NRC, Customs, NISPOM, EAR, FACR/OFAC, FAR/DFARS, FTR/AES, HTSUS, and ITAR), plus news and events.  Subscribe 
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  1. Commerce/BIS Temporarily Denies Export Privileges for Eastline Technologies OU and Others
  2. DHS/CBP Seeks Comments on Form 1303, Ship’s Store Declaration
  1. Items Scheduled for Publication in Future Federal Register Editions
  2. Commerce/BIS Denies Export Privileges of 7 Individuals
  3. Justice: “Pomona Woman Sentenced to Federal Prison in Scheme to Smuggle Restricted Space Communications Technology to China”
  4. State/DDTC: (No new postings.)
  5. EU Commission Announces 2018 Export Control Forum on 13 Dec
  1. Interfax Ukraine: “Ukraine Switches to Unified List of Dual-Use Goods, Meeting EU Standards in State Export Control System in October”
  2. ST&R Trade Report: “U.S., Canada, Mexico Reach Agreement to Update NAFTA”
  1. H. Cassin: “Two Former Oil Executives Receive Multi-Year Prison Terms for FCPA Violations”
  2. O. Gonzalez: “9 October Is Filing Deadline for Exclusion Requests for Section 301 Tariffs, List 1”
  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 (26 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
. Commerce/BIS Temporarily Denies Export Privileges for Eastline Technologies OU and Others

(Source: Federal Register, 2 Oct 2018.) [Excerpts.]
 
83 FR 49540-49543: Order Temporarily Denying Export Privileges
 
I. Introduction and Background of the Parties at Issue
   Pursuant to Section 766.24 of the Export Administration Regulations (the “Regulations” or “EAR”), the Bureau of Industry and Security (“BIS”), U.S. Department of Commerce, through its Office of Export Enforcement (“OEE”), has requested that I issue an order temporarily denying, for a period of 180 days, the export privileges of Eastline Technologies OU (“Eastline”), Adimir OU (“Adimir”), Valery Kosmachov a/k/a Valeri Kosmachov, a/k/a Valery Kosmatsov, a/k/a Valery Kosmatshov, a/k/a Valery Kosmachev (“Kosmachov”), and Sergey Vetrov a/k/a Sergei Vetrov (“Vetrov”) (collectively, “Respondents”). OEE also has requested, pursuant to Sections 766.23 and 766.24 of the Regulations, that this order (“the TDO”) be applied to Real Components, Ltd. (“Real Components”) as a related person.
   Eastline is located in Tallinn, Estonia, and describes itself as a distributor of electronic parts and components, computer-related products, industrial personal computers and embedded systems, equipment for industrial automation, and other state-of-the-art solutions. The company holds an Estonian business license and has two addresses in Tallinn identified in registration documents. Eastline is operated primarily for the purpose of procuring electronic components, including those of U.S. origin. Kosmachov and Vetrov were listed as co-owners of Eastline until late 2016. The company is currently listed as being solely owned by Valeria Mihhailova, whom OEE has reason to believe is Kosmachov’s daughter. Evidence presented by OEE indicates that both Kosmachov and Vetrov remain active in the business, as well as that Kosmachov also has previously represented that Eastline partners with Real Components, which is located in Moscow, Russia, is owned by Vetrov, and is Eastline’s primary customer in Russia.
   Kosmachov also has previously identified himself as being the sole owner of Adimir, an Estonian company. Adimir shares the same business addresses as Eastline. Adimir is known to have previously been involved in the transshipment and attempted transshipment of U.S.-origin items to Russia in apparent violation of the Regulations, as described in a TDO issued by BIS on March 19, 2015, as amended on March 23, 2015 (the “March 2015 TDO”). See 80 FR 15979 (March 26, 2015); 80 FR 16632 (March 30, 2015). During the investigation leading up to the issuance of the March 2015 TDO, Adimir admitted to transshipping U.S.-origin items to Russia, but was not named as a respondent, as Adimir was believed to have ceased operating. See id.; see also Section III., infra. However, as discussed in Section IV., infra, recently-obtained evidence indicates that Adimir appears to have resumed operating, and to again be involved in the procurement of U.S.-origin items for transshipment to Russian customers, primarily including Real Components. …
   This Order is effective upon issuance and shall remain in effect
for 180 days.
 
  Douglas Hassebrock, Director, Office of Export Enforcement (performing the non-exclusive functions and duties of the Assistant Secretary of Commerce for Export Enforcement).

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EXIM_a2

2. DHS/CBP Seeks Comments on Form 1303, Ship’s Store Declaration

(Source: Federal Register, 2 Oct 2018.) [Excerpts.]
 
83 FR 49566-49567: Agency Information Collection Activities: Ship’s Store Declaration
* AGENCY: U.S. Customs and Border Protection (CBP), Department of Homeland Security.
* ACTION: 30-Day notice and request for comments; Extension of an existing collection of information. …
* ADDRESSES: Interested persons are invited to submit written comments on this proposed information collection to the Office of Information and Regulatory Affairs, Office of Management and Budget. Comments should be addressed to the OMB Desk Officer for Customs and Border Protection, Department of Homeland Security, and sent via electronic mail to
* FOR FURTHER INFORMATION CONTACT: Requests for additional PRA information should be directed to Seth Renkema, Chief, Economic Impact Analysis Branch, U.S. Customs and Border Protection, Office of Trade, Regulations and Rulings, 90 K Street NE, 10th Floor, Washington, DC 20229-1177, Telephone number (202) 325-0056 or via email
CBP_PRA@cbp.dhs.gov. Please note that the contact information provided here is solely for questions regarding this notice. Individuals seeking information about other CBP programs should contact the CBP National Customer Service Center at 877-227-5511, (TTY) 1-800-877-8339, or
CBP website.
* SUPPLEMENTARY INFORMATION: …
  – Title: Ship’s Stores Declaration.
  – OMB Number: 1651-0018.
  – Form Number: CBP Form 1303.
  – Current Actions: CBP proposes to extend the expiration date of this information collection with no change to the burden hours. There is no change to the information collected. …
  – Abstract: CBP Form 1303, Ship’s Stores Declaration, is used by the carriers to declare articles to be retained on board the vessel, such as sea stores, ship’s stores (e.g. alcohol and tobacco products), controlled narcotic drugs or bunker fuel in a format that can be readily audited and checked by CBP. This form collects information about the ship, the ports of arrival and departure, and the articles on the ship. CBP Form 1303 form is provided for by 19 CFR 4.7, 4.7a, 4.81, 4.85 and 4.87 and is accessible
here. …
 
  Dated: September 27, 2018.
Seth D. Renkema, Branch Chief, Economic Impact Analysis Branch, U.S. Customs and Border Protection.

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OGSOTHER GOVERNMENT SOURCES

OGS_a13. Items Scheduled for Publication in Future Federal Register Editions
(Source: Federal Register)

* Commerce; NOTICES; Performance Review Board Membership [Publication Date: 3 October 2018.]

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

(Source:
Commerce/BIS, 2 Oct 2018.)
 
* Respondent: Erik Villasana, Bastrop, TX
* Charges: On 16 November 2017, in the U.S. District Court for the Southern District of Texas, Erik Villasana (“Villasana”) was convicted of violating Section 38 of the Arms Export Control Act (22 U.S.C. § 2778 (2012)) (“AECA”). Specifically, Villasana was convicted of knowingly exporting and attempting to export from the United States to Mexico firearms designated as defense articles on the United States Munitions List, without the required U.S. Department of State licenses. Villasana was sentenced to 63 months in prison, three years of supervised release, and an assessment of $100.
* Debarred under the Export Administration Regulations (“EAR”): For a period of 10 years from the date of the conviction, 16 November 2027
* Date of Order: 27 September 2018
 
* Respondent: Juan Diego Madrid, Bastrop, TX
* Charges: On 16 November 2017, in the U.S. District Court for the Southern District of Texas, Juan Diego Madrid (“Madrid”) was convicted of violating Section 38 of the Arms Export Control Act (22 U.S.C. § 2778 (2012)) (“AECA”). Specifically, Madrid was convicted of knowingly exporting and attempting to export from the United States to Mexico firearms designated as defense articles on the United States Munitions List, without the required U.S. Department of State licenses. Madrid was sentenced to 65 months in prison, three years of supervised release, and an assessment of $100.
* Debarred under the Export Administration Regulations (“EAR”): For a period of 10 years from the date of conviction, 16 November 2027
* Date of Order: 27 September 2018
 
* Respondent: Rolando Armando Madrid, Bastrop, TX
* Charges: On 16 November 2017, in the U.S. District Court for the Southern District of Texas, Rolando Armando Madrid (“Madrid”) was convicted of violating Section 38 of the Arms Export Control Act (22 U.S.C. § 2778 (2012)) (“AECA”). Specifically, Madrid was convicted of knowingly exporting and attempting to export from the United States to Mexico firearms designated as defense articles on the United States Munitions List, without the required U.S. Department of State licenses. Madrid was sentenced to 51 months in prison, three years of supervised release, and an assessment of $100.
* Debarred under the Export Administration Regulations (“EAR”): For a period of 10 years from the date of conviction, 16 November 2027
* Date of Order: 27 September 2018
 
* Respondent: Ruben Arnoldo Madrid, Beaumont, TX
* Charges: On 14 December 2017, in the U.S. District Court for the Southern District of Texas, Ruben Arnoldo Madrid (“Madrid”) was convicted of violating Section 38 of the Arms Export Control Act (22 U.S.C. § 2778 (2012)) (“AECA”). Specifically, Madrid was convicted of knowingly exporting and attempting to export from the United States to Mexico firearms designated as defense articles on the United States Munitions List, without the required U.S. Department of State licenses. Madrid was sentenced to 51 months in prison, three years of supervised release, and an assessment of $100.
* Debarred under the Export Administration Regulations (“EAR”): For a period of 10 years from the date of conviction, 14 December 2027
* Date of Order: 27 September 2018
 
* Respondent: Francisco Xavier Martinez, Bastrop, TX
* Charges: On 16 November 2017, in the U.S. District Court for the Southern District of Texas, Francisco Xavier Martinez (“Martinez”) was convicted of violating Section 38 of the Arms Export Control Act (22 U.S.C. § 2778 (2012)) (“AECA”). Specifically, Martinez was convicted of knowingly exporting and attempting to export from the United States to Mexico firearms designated as defense articles on the United States Munitions List, without the required U.S. Department of State licenses. Martinez was sentenced to 41 months in prison, three years of supervised release, and an assessment of $100.
* Debarred under the Export Administration Regulations (“EAR”): For a period of seven years from the date of conviction, 16 November 2024
* Date of Order: 27 September 2018
 
* Respondent: Edward Alexander Duenas, Beaumont, TX
* Charges: On 16 November 2017, in the U.S. District Court for the Southern District of Texas, Edward Alexander Duenas (“Duenas”) was convicted of violating Section 38 of the Arms Export Control Act (22 U.S.C. § 2778 (2012)) (“AECA”). Specifically, Duenas was convicted of knowingly exporting and attempting to export from the United States to Mexico firearms designated as defense articles on the United States Munitions List, without the required U.S. Department of State licenses. Duenas was sentenced to 27 months in prison, three years of supervised release, and an assessment of $100.
* Debarred under the Export Administration Regulations (“EAR”): For a period of five years from the date of conviction, 16 November 2022
* Date of Order: 27 September 2018
 
* Respondent: Edgar Garza-Sanchez, Edinburg, TX
* Charges: On 28 March 2017, in the U.S. District Court for the Southern District of Texas, Edgar Garza-Sanchez (“Garza-Sanchez”) was convicted of violating Section 38 of the Arms Export Control Act (22 U.S.C. § 2778 (2012) (“AECA”). Specifically, Garza-Sanchez was convicted of intentionally and knowingly conspiring to knowingly and willfully export and cause to be exported from the United States to Mexico approximately 13,600 rounds 7.62 x 39 mm caliber ammunition and approximately 200 7.62 x 39 mm magazines, items designated as defense articles on the United States Munitions List, without the required U.S. Department of State licenses. Garza-Sanchez was sentenced to 21 months in prison, three years of supervised release, and an assessment of $100.
* Debarred under the Export Administration Regulations (“EAR”): For a period of five years from the date of Garza-Sanchez’s conviction, until 28 March 22
* Date of Order: 27 September 2018.
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(Source:
Justice
, 1 Oct 2018.) [Excerpts.]
 
A Chinese national who pleaded guilty to participating in a scheme that illegally exported sensitive space communications technology to China was sentenced today to serve 46 months in federal prison.
 
Si Chen, 33, a Pomona resident who has been in custody since her arrest in May 2017, was sentenced by United States District Judge Cormac J. Carney.
 
Chen, who used various aliases, included “Cathy Chen,” pleaded guilty in July to conspiracy to violate the International Emergency Economic Powers Act (IEEPA), which controls and restricts the export of certain goods and technology from the United States to foreign nations. Chen also pleaded guilty to money laundering and using a forged passport with her photo but a different name that appeared to have been issued by the People’s Republic of China. … 
 
According to court documents, from March 2013 through the end of 2015, Chen purchased and smuggled sensitive items to China without obtaining licenses from the U.S. Department of Commerce that are required under IEEPA. Those items included components commonly used in military communications “jammers.” Additionally, Chen smuggled communications devices worth more than $100,000 that are commonly used in space communications applications. Chen falsely under-valued the items on the shipping paperwork to avoid arousing suspicion. Chen received payments for the illegally exported products through an account held at a bank in China by a family member.
 
Under IEEPA, it is crime to willfully export or attempt to export items that appear on the Commerce Control List without a license from the U.S. Department of Commerce. These are items authorities have determined could be detrimental to regional stability and national security. … 
 
In addition to participating in the scheme to violate IEEPA, Chen used several aliases and a forged Chinese passport to conceal her smuggling activities. Chen used a Chinese passport bearing her photo and a false name – “Chunping Ji” – to rent an office in Pomona where she took delivery of the export-controlled items. After receiving the goods, Chen shipped the devices to Hong Kong, and from there the items were transshipped to China. The parcels shipped to Hong Kong bore her false name, along with false product descriptions and monetary values, all done in an effort to avoid attracting law enforcement scrutiny. …

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(Source:
European Commission, 2 Oct 2018.)
 
The European Commission and the Austrian Presidency of the Council are inviting representatives from EU Member States and the European Parliament, industry and civil society to participate in the 2018 Export Control Forum.
 
The 2018 Export Control Forum will provide an opportunity to exchange information about ongoing export control implementation in the EU, and to review the state of play of the legislative process regarding the proposal for a modernization of EU export controls.
 
The 2018 Export Control Forum will be opened by representatives of the Commission, the Presidency and the European Parliament, and will convene selected panels of experts, to be followed by open dialogue with the stakeholders.
 
  – Date: 13 December 2018
  – Venue: Albert Borschette Conference Centre (CCAB) Room CCAB0A, Rue Froissart 36, Brussels
  – More information on the agenda and the possibility to register for this event will follow soon.
* * * * * * * * * * * * * * * * * * * * 

NWSNEWS

(Source:
Interfax Ukraine, 2 Oct 2018.) [Excerpts.]
 
Ukraine in the second half of October is switching to the unified national list of dual-use goods that are subject to export control, meeting EU standards, the State Service of Export Control of Ukraine has reported.
 
According to a posting on the authority’s website, the decision to introduce the unified national list of dual-use goods made in January by the Cabinet of Ministers will take effect on October 19.
 
The State Service of Export Control of Ukraine said that according to Ukrainian legislation, economic entities planning to hand over military goods abroad, including broker activities, are obliged to be preliminary registered in the State Service of Export Control of Ukraine. …

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The U.S., Canada, and Mexico announced Sept. 28 an agreement to modernize the 25-year-old North American Free Trade Agreement. The U.S.-Mexico-Canada Agreement is expected to be signed by Dec. 1, which could bring it up for congressional consideration in early 2019.
 
According to fact sheets from the Office of the U.S. Trade Representative, the USMCA includes the following provisions.
 
Agriculture
  – Canada will provide new-tariff rate quotas exclusively for U.S. fluid milk, cheese, cream, skim milk powder, butter and cream powder, concentrated and condensed milk, yogurt and buttermilk, powdered buttermilk, products of natural milk constituents, ice cream and ice cream mixes, whey, margarine, and other dairy.
  – The U.S. will provide reciprocal access on a ton-for-ton basis for imports of Canadian dairy products as well as new market access for Canadian peanuts, processed peanut products, and a limited amount of sugar and sugar-containing products.
  – Canada will eliminate milk price classes 6 and 7, which USTR states allow “low-priced dairy ingredients to undersell United States dairy sales in Canada and in third country markets.”
  – Canada will apply export charges to its exports of skim milk powder, milk protein concentrates, and infant formula at volumes over an agreed threshold.
  – Canada will provide new TRQs for U.S. chicken, eggs, and egg products and increase its access for turkey.
 
Manufacturing
  – To qualify for preferential treatment 75 percent of auto content must be made in North America and 40-45 percent must be made by workers earning at least $16 per hour.
  – Rules of origin for chemicals, steel-intensive products, glass, and optical fiber have been strengthened.
  – New procedures streamline certification and verification of rules of origin and promote strong enforcement, including new cooperation and enforcement provisions that help prevent duty evasion before it happens.
  – New provisions are added for transparency in import licensing and export licensing procedures.
  – Parties are prohibited from applying (a) requirements to use local distributors for importation, (b) restrictions on the importation of commercial goods that contain cryptography, (c) import restrictions on used goods to remanufactured goods, and (d) requirements for consular transactions and their associated fees and charges.
  – Provisions for duty-free temporary admission of goods are updated to cover shipping containers or other substantial holders used in the shipment of goods.
  – Rules that allow for some use of non-NAFTA inputs in textile and apparel trade are limited.
 
  – Sewing thread, pocketing fabric, narrow elastic bands, and coated fabric, when incorporated in most apparel and other finished products, must be made in the region for those finished products to qualify for trade benefits.
  – A textiles chapter for North American trade is established, including textile-specific verification and customs cooperation provisions that provide new tools for strengthening customs enforcement and preventing fraud and circumvention in this sector.
  – New provisions covering trade in information and communication technology, pharmaceuticals, medical devices, cosmetic products, and chemical substances exceed NAFTA and TPP rules and promote enhanced regulatory compatibility, best regulatory practices, and increased trade among the countries.
 
IPR
  – Data for biologic drugs will be protected for ten years and a robust scope of products will be eligible for protection.
  – Full national treatment will be required for copyright and related rights.
  – A minimum copyright term of life of the author plus 70 years, or 75 years after first authorized publication for works with a copyright term not based on the life of a person, will be required.
  – Provisions for protecting trademarks, including well-known marks, are enhanced.
  – For the first time, a U.S. trade agreement will require ex officio authority for law enforcement officials to stop suspected counterfeit or pirated goods at every phase of entering, exiting, and transiting through the territory of any party.
  – Protections against the misappropriation of trade secrets include civil procedures and remedies, criminal procedures and penalties, prohibitions against impeding trade secret licensing, judicial procedures to prevent disclosure of trade secrets during the litigation process, and penalties for government officials for the unauthorized disclosure of trade secrets.
  – A new digital trade chapter contains the strongest disciplines of any international agreement, including a prohibition on customs duties and other discriminatory measures being applied to digital products distributed electronically (e-books, videos, music, software, games, etc.) and measures to ensure that data can be transferred cross-border and minimize limits on where data can be stored and processed.
 
Low-Value Shipments
  – Canada will raise its de minimis level from C$20 to C$40 for taxes and will provide for duty-free shipments up to C$150. Mexico will continue to provide USD $50 tax-free de minimis and provide duty-free shipments up to the equivalent level of US$117. Canada will also allow 90 days after entry for the importer to make payment of taxes.
 
Other
  – A new chapter on macroeconomic policies and exchange rate matters includes high-standard commitments to refrain from competitive devaluations and targeting exchange rates.
  – Labor and environment obligations are brought into the core of the agreement and made fully enforceable.
  – Parties are required to take measures to prohibit the importation of goods produced by forced labor.
  – Parties are obligated to enhance the effectiveness of customs inspections of shipments containing wild fauna and flora at ports of entry and ensure strong enforcement to combat illegal, unregulated, and unreported fishing.
  – Non-discrimination and transparency commitments were agreed regarding sale and distribution and labeling and certification provisions to avoid technical barriers to trade in wine and distilled spirits.
  – According to press sources, the Chapter 19 provisions allowing parties to challenge each other’s antidumping and countervailing duty cases is retained.
  – The U.S. has reportedly agreed to essentially exempt Canada and Mexico from any potential Section 232 tariff increases on automobiles or auto parts.

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COMMCOMMENTARY

(Source:
FCPA Blog, 1 Oct 2018.) [Excerpts.]
 
* Author: Harry Cassin, managing director of the FCPA Blog.
 
Two former executives of SBM Offshore, N.V. were sent to prison Friday for their role in bribing officials at state-owned oil and gas companies in three countries.
 
Former CEO of Netherlands-based SBM Offshore Anthony “Tony” Mace, 66, was sentenced to 36 months in prison and ordered to pay a fine of $150,000. 
 
Mace, a UK citizen, was also on the board of SBM’s U.S.-based subsidiary, SBM Offshore USA Inc.
 
Robert Zubiate, also 66, was sentenced to 30 months in prison and ordered to pay fine of $50,000. He was a sales and marketing executive at SBM USA.
 
Mace and Zubiate both pleaded guilty last November to bribing officials at Brazil’s Petrobras, Angola’s Sonangol, and Equatorial Guinea’s GEPetrol.
 
According to Mace’s plea agreement, other employees of SBM initiated the bribes before he became CEO. …

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(Source: Author, 1 Oct 2018.)
 

 
I realize the deluge of new tariffs and their deadlines can overwhelm, so here in a nutshell:
 
The new tariffs are either Section 232 or Section 301. Section 232 tariffs impose a 25% tariff on steel and a 10%% tariff on aluminum on imports from most of the countries in the world. Section 301 tariffs are the 25% tariffs specific to Chinese imports. Section 301 tariffs are found in three lists that were issued earlier this year a few months apart. Both Section 201 and Section 301 tariffs allow for interested parties to request a one-year exclusion from the tariffs, but there are important differences between Section 232 and Section 301 exclusions. First, Section 232 exclusions benefit solely the party that applies and receives the exclusion. In contrast, Section 301 exclusions benefit anyone who imports the product (identified by its ten digit HTSUS classification), not just the applicant for the exclusion. Second, refunds are calculated differently. You must pay both Section 232 or Section 301 duties until and unless an exclusion is granted. Once granted, you may qualify for a refund of the duties. Section 232 refunds are calculated from the date the exclusion request is posted publicly; only shipments after that date qualify for a Section 232 refund. In contrast, Section 301 exclusions allow for a refund for all the Section 301 duties paid. Section 301’s apparent generosity comes with a condition. Unlike Section 232 which does not have any deadlines to apply for exclusion requests, Section 301 imposes strict exclusion request deadlines.
 
This brings me to the October 9, 2018, the filing deadline for exclusion requests for products listed under List 1 of Section 301. December 18, 2018 is the exclusion request deadline under List 2 of Section 301. No deadline has been announced for List 3. Your company should file an exclusion request if you have a reasonable grounds to do so. Because all exclusion requests and responses are in the public record, you should also monitor the pubic record and consider filing timely responses to prevent your competitors from gaining an advantage.
 
Your company should also consider hiring a legal expert, someone who has successfully devised Section 232 and 301 solutions for clients. Filing exclusion requests is complicated and applications are denied because they are poorly written, poorly argued, and for not following the requisite procedures.  
 

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ENEDITOR’S NOTES

* Mahatma Gandhi (Mohandas Karamchand Gandhi; 2 Oct 1869 – 30 Jan 1948; was an Indian activist who was the leader of the Indian independence movement against British rule. Employing nonviolent civil disobedience, Gandhi led India to independence and inspired movements for civil rights and freedom across the world. The honorific Mahātmā (Sanskrit: “high-souled”, “venerable”) – applied to him first in 1914 in South Africa – is now used worldwide.)
  – “First they ignore you, then they laugh at you, then they fight you, then you win.”
   – “The weak can never forgive. Forgiveness is the attribute of the strong.”
   – “An eye for an eye only ends up making the whole world blind.”

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EN_a313
. 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: 26 Sep 2018: 83 FR 48532-48537: Addition of Certain Entities to the Entity List, Revision of an Entry on the Entity List and Removal of an Entity From the Entity List

  
*
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: 3 FR 17749-17751: Foreign Trade Regulations (FTR): Clarification on the Collection and Confidentiality of Kimberley Process Certificates
  – HTS codes that are not valid for AES are available
here.
  – The latest edition (30 Apr 2018) of Bartlett’s Annotated FTR (“BAFTR”), by James E. Bartlett III, is available for downloading in Word format. The BAFTR contains all FTR amendments, FTR Letters and Notices, a large Index, and approximately 250 footnotes containing case annotations, practice tips, Census/AES guidance, and explanations of the numerous errors contained in the official text. Subscribers receive revised copies in Microsoft Word every time the FTR is amended. The BAFTR is available by annual subscription from the Full Circle Compliance websiteBITAR subscribers are entitled to a 25% discount on subscriptions to the BAFTR. Government employees (including military) and employees of universities are eligible for a 50% discount on both publications at www.FullCircleCompiance.eu.  
 
*
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_a0314
Weekly Highlights of the Daily Bugle Top Stories

(Source: Editor) 

Review last week’s top Ex/Im stories in “Weekly Highlights of the Daily Bugle Top Stories” published 
here

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EPEDITORIAL POLICY

* 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 6,000 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.

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* CAVEAT: The contents of this newsletter cannot be relied upon as legal or expert advice.  Consult your own legal counsel or compliance specialists before taking actions based upon news items or opinions from this or other unofficial sources.  If any U.S. federal tax issue is discussed in this communication, it was not intended or written by the author or sender for tax or legal advice, and cannot be used for the purpose of avoiding penalties under the Internal Revenue Code or promoting, marketing, or recommending to another party any transaction or tax-related matter.


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