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18-1005 Friday “Daily Bugle”

18-1005 Friday “Daily Bugle”

Friday, 5 October 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 Seeks Comments Concerning Chemical Weapons Convention Provisions of the EAR
  2. Commerce/BIS Seeks Comments Regarding Procedures for Submitting Rebuttals and Surrebuttals Requests for Exclusions from and Objections to the Section 232 National Security Adjustments of Imports of Steel and Aluminum
  3. State Issues Notice Concerning Sanctions Pursuant to CAATSA and Executive Order 13489, Makes Additions to CAATSA Section 231(d) Guidance
  1. Items Scheduled for Publication in Future Federal Register Editions 
  2. Commerce/BIS: (No new postings.)
  3. Justice: “Texas Resident Sentenced in South Florida to More Than 6 Years in Prison for Violations of the Cuban Embargo”
  4. State/DDTC: (No new postings.)
  5. Treasury/OFAC Publishes Settlement Agreement with JPMorgan Chase Bank, N.A. (JPMC), Issues Finding of Violation
  6. USPS Publishes Report Concerning Export Controls for Outbound Mail at International Service Centers
  7. EU Amends Certain Specific Restrictions on Economic and Financial Relations with Iraq
  8. EU Parliament Publishes Paper Concerning the EU Common Position on Arms Exports
  9. Hong Kong TID Releases Circular Concerning Air Transshipment Cargo Exemption Scheme for Specified Strategic Commodities
  1. SpaceNews: “U.S. State Department Clarifies Satellite Thruster Regulations”
  2. ST&R Trade Report: “Dates and Deadlines: China Tariffs, Classification, Export Controls, Cargo Receiving”
  3. WorldECR: “Ukraine Issues Unified List Of Dual-Use Goods”
  1. M. Lester: “USA terminates 1955 Treaty of Amity with Iran After ICJ Ruling”
  2. P. Egan: “Shenzhen, China – The Silicon Valley of Drones”
  3. T. Polino, J. Gurley & D.R. Hamill: “We Have a Deal! USTR Publishes Text for US-Mexico-Canada Agreement Slated to Replace NAFTA”
  1. List of Approaching Events: 2 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 (26 Sep 2018), FACR/OFAC (29 Jun 2018), FTR (24 Apr 2018), HTSUS (14 Aug 2018), ITAR (4 Oct 2018) 
  3. Weekly Highlights of the Daily Bugle Top Stories 

EXIMITEMS FROM TODAY’S FEDERAL REGISTER

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1. 
Commerce/BIS Seeks Comments Concerning Chemical Weapons Convention Provisions of the EAR

(Source: Federal Register, 5 Oct 2018.) [Excerpts.] 
 
83 FR 50334-50335: Submission for OMB Review; Comment Request; Chemical Weapons Convention Provisions of the Export Administration Regulations
 
  The Department of Commerce will submit to the Office of Management and Budget (OMB) for clearance the following proposal for collection of information under the provisions of the Paperwork Reduction Act (44 U.S.C. Chapter 35).
 
  – Agency: Bureau of Industry and Security.
  – Title: Chemical Weapons Convention Provisions of the Export Administration Regulations.
  – Form Number(s): N/A.
  – OMB Control Number: 0694-0117.
  – Type of Review: Regular submission. … 
  – Needs and Uses: The Chemical Weapons Convention (CWC) is a multilateral arms control treaty that seeks to achieve an international ban on chemical weapons (CW). The CWC prohibits, the use, development, production, acquisition, stockpiling, retention, and direct or indirect transfer of chemical weapons. This collection implements the following export provision of the treaty in the Export Administration Regulations (EAR):
  Schedule 1 notification and report: Under Part VI of the CWC Verification Annex, the United States is required to notify the Organization for the Prohibition of Chemical Weapons (OPCW), the international organization created to implement the CWC, at least 30 days before any transfer (export/import) of Schedule 1 chemicals to another State Party. The United States is also required to submit annual reports to the OPCW on all transfers of Schedule 1 Chemicals.
  Schedule 3 End-Use Certificates: Under Part VIII of the CWC Verification Annex, the United States is required to obtain End-Use Certificates for exports of Schedule 3 chemicals to States that are not Party to the CWC to ensure the exported chemicals are only used for the purposes not prohibited under the Convention. .. 
 
  This information collection request may be viewed at reginfo.govhttp://www.reginfo.gov/public/. Follow the instructions to view Department of Commerce collections currently under review by OMB.
  Written comments and recommendations for the proposed information collection should be sent within 30 days of publication of this notice to OIRA_Submission@omb.eop.gov.
 
Sheleen Dumas, Departmental Lead PRA Officer, Office of the Chief Information Officer.

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2

Commerce/BIS Seeks Comments Regarding Procedures for Submitting Rebuttals and Surrebuttals Requests for Exclusions from and Objections to the Section 232 National Security Adjustments of Imports of Steel and Aluminum

(Source: Federal Register, 5 Oct 2018.) [Excerpts.] 
 
* AGENCY: Bureau of Industry and Security. U.S. Department of Commerce.
* ACTION: Notice.
* SUMMARY: The Department of Commerce, as part of its continuing effort to reduce paperwork and respondent burden, invites the general public and other Federal agencies to take this opportunity to comment on proposed and/or continuing information collections, as required by the Paperwork Reduction Act of 1995.
* DATES: To ensure consideration, written comments must be submitted on or before December 4, 2018.
* ADDRESSES: Direct all written comments to Jennifer Jessup, Departmental Paperwork Clearance Officer, Department of Commerce, 1401 Constitution Avenue NW, Room 6616, Washington, DC 20230 (or via the internet at docpra@doc.gov.) … 
* SUPPLEMENTARY INFORMATION: … On September 11, 2018, Bureau of Industry and Security (BIS) published a second interim final rule, Revisions to the Requirements for Submissions Requesting Exclusions from the Remedies Instituted in Presidential Proclamations Adjusting Imports of Steel into the United States and Adjusting Imports of Aluminum into the United States; and the filing of Objections to Submitted Exclusion Requests for Steel and Aluminum. This second interim final rule that was published by BIS, on behalf of the Secretary, made changes to the two supplements added in the March 19 rule: Supplement No. 1 to Part 705–Requirements for Submissions Requesting Exclusions from the Remedies Instituted in Presidential Proclamation 9705 of March 8, 2018 Adjusting Imports of Steel Articles into the United States; and to Supplement No. 2 to Part 705–Requirements for Submissions Requesting Exclusions from the Remedies Instituted in Presidential Proclamation 9704 of March 8, 2018 to Adjusting Imports of Aluminum into the United States.
  This collection of information gives U.S. Companies the opportunity to submit rebuttals to objections received on posted exclusion requests and also allows U.S. companies the opportunity to submit surrebuttals for objections they submitted that receive rebuttals under the Section 232 exclusion process.
  Adding a rebuttal and surrebuttal process is an important step in further improving the exclusion request and objection process for requesting exclusions from the remedies instituted by the President.These voluntary rebuttals and surrebuttals will allow the U.S. Government to better evaluate whether an exclusion request should be granted based on the information provided in an exclusion request and taking into account any objections to a submitted exclusion request, rebuttals, and surrebuttals. Many commenters on the March 19 rule, referenced above, requested the Department make this type of a change to ensure that the process was fair and the Department had all of the relevant information when an objection to an exclusion request received a rebuttal or a surrebuttal was received. … 
 
  – OMB Control Number: 0694-0141.
  – Form Number(s): 0694-0141.
  – Type of Review: Regular Submission. … 
 
  Comments are invited on: (a) Whether the proposed collection of information is necessary for the proper performance of the functions of the agency, including whether the information shall have practical utility; (b) the accuracy of the agency’s estimate of the burden (including hours and cost) of the proposed collection of information; (c) ways to enhance the quality, utility, and clarity of the information to be collected; and (d) ways to minimize the burden of the collection of information on respondents, including through the use of automated collection techniques or other forms of information technology.
  Comments submitted in response to this notice will be summarized and/or included in the request for OMB approval of this information collection; they also will become a matter of public record.
 
Sheleen Dumas, Departmental Lead PRA Officer, Office of the Chief Information Officer. 

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EXIM_a3

3

State Issues Notice Concerning Sanctions Pursuant to CAATSA and Executive Order 13489, Makes Additions to CAATSA Section 231(d) Guidance

(Source: Federal Register, 5 Oct 2018.) [Excerpts.] 
 
83 FR 50433-50434: Notice of Department of State Sanctions Actions Pursuant To Section 231(a) of the Countering America’s Adversaries Through Sanctions Act of 2017 (CAATSA) and Executive Order 13849 of September 20, 2018, and Notice of Additions To the CAATSA Section 231(d) Guidance
 
* ACTION: Notice.
* SUMMARY: The Secretary of State has determined, pursuant to CAATSA 
Section 231(a), that the Chinese entity Equipment Development Department of the Central Military Commission (EDD), formerly known as the General Armaments Department (GAD), has knowingly, on or after August 2, 2017, engaged in a significant transaction with a person that is part of, or operates for or on behalf of, the defense or intelligence sectors of the Government of the Russian Federation. The Secretary of State has selected certain sanctions to be imposed upon EDD and Li Shangfu, EDD’s Director, who has been determined to be a principal executive officer of EDD, or to perform similar functions with similar authorities as such an officer.
  The Secretary of State is also updating previously issued guidance pursuant to CAATSA Section 231(d) to specify additional persons that are part of, or operate for or on behalf of, the defense and intelligence sectors of the Government of the Russian Federation.
* DATES: The Secretary of State’s determination that EDD has knowingly, on or after August 2, 2017, engaged in a significant transaction with a person that is part of, or operates for or on behalf of, the defense or intelligence sectors of the Government of the Russian Federation, and the Secretary of State’s selection of certain sanctions to be imposed upon EDD and Li Shangfu, are effective on September 20, 2018. The Secretary of State’s updates to previously issued guidance pursuant to CAATSA Section 231(d) to specify additional persons that are part of, or operate for or on behalf of, the defense and intelligence sectors of the Government of the Russian Federation are effective on September 20, 2018. … 
* SUPPLEMENTARY INFORMATION: Pursuant to Section 231(a) of CAATSA and Executive Order 13849 the Secretary of State has selected the following sanctions to be imposed upon EDD:
  – United States Government departments and agencies shall not issue any specific license or grant any other specific permission or authority under any statute that requires the prior review or approval of the United States Government as a condition for the export or re-export of goods or technology to EDD;
  – A prohibition on any transactions in foreign exchange that are subject to the jurisdiction of the United States and in which EDD has any interest;
  – A prohibition on any transfers of credit or payments between financial institutions, or by, through, or to any financial institution, to the extent that such transfers or payments are subject to the jurisdiction of the United States and involve any interest of EDD;
  – All property and interests in property of EDD that are in the United States, that hereafter come within the United States, or that are or hereafter come within the possession or control of any United States person are blocked and may not be transferred, paid, exported, withdrawn, or otherwise dealt in; and
  – Imposition on the principal executive officer or officers of EDD, or on persons performing similar functions and with similar authorities as such officer or officers, certain sanctions, as selected by the Secretary of State and described below.
 
  The Secretary of State has selected the following sanctions to be imposed upon Li Shangfu, EDD’s Director, who has been determined to be a principal executive officer of EDD, or to perform similar functions with similar authorities as such an officer:
  – A prohibition on any transactions in foreign exchange that are subject to the jurisdiction of the United States and in which Li Shangfu has any interest;
  – A prohibition on any transfers of credit or payments between financial institutions, or by, through, or to any financial institution, to the extent that such transfers or payments are subject to the jurisdiction of the United States and involve any interest of Li Shangfu;
  – All property and interests in property of Li Shangfu that 
are in the United States, that hereafter come within the United States, or that are or hereafter come within the possession or control of any United States person are blocked and may not be transferred, paid, exported, withdrawn, or otherwise dealt in; and
  – The Secretary of State shall deny a visa to Li Shangfu, and the Secretary of Homeland Security shall exclude Li Shangfu from the United States, by treating Li Shangfu as a person covered by section 1 of Proclamation 8693 of July 24, 2011 (Suspension of Entry of Aliens Subject to United Nations Security Council Travel Bans and International Emergency Economic Powers Act Sanctions).
 
Also, pursuant to the authority in CAATSA Section 231(d), the Secretary 
of State is issuing updated guidance specifying the following 
additional persons that are part of, or operate for or on behalf of, 
the defense and intelligence sectors of the Government of the Russian 
Federation:
 
Section 231(d) List Regarding the Defense Sector of the Government of 
the Russian Federation
 
  – Komsomolsk-na-Amur Aviation Production Organization (KNAAPO)
  – Oboronlogistika, OOO
  – PMC Wagner
 
Section 231(d) List Regarding the Russian Intelligence Sector of the 
Government of the Russian Federation
 
  – Antonov, Boris Alekseyevich
  – Aslanov, Dzheykhun Nasimi Ogly
  – Badin, Dmitriy Sergeyevich
  – Bogacheva, Anna Vladislavovna
  – Bovda, Maria Anatolyevna
  – Bovda, Robert Sergeyevich
  – Burchik, Mikhail Leonidovich
  – Bystrov, Mikhail Ivanovich
  – Concord Catering
  – Concord Management and Consulting LLC
  – Gizunov, Sergey Aleksandrovich
  – Internet Research Agency LLC
  – Kaverzina, Irina Viktorovna
  – Korobov, Igor Valentinovich
  – Kovalev, Anatoliy Sergeyevich
  – Kozachek, Nikolay Yuryevich
  – Krylova, Aleksandra Yuryevna
  – Lukashev, Aleksey Viktorovich
  – Malyshev, Artem Andreyevich
  – Morgachev, Sergey Aleksandrovich
  – Netyksho, Viktor Borisovich
  – Osadchuk, Aleksandr Vladimirovich
  – Podkopaev, Vadim Vladimirovich
  – Polozov, Sergey Pavlovich
  – Potemkin, Aleksey Aleksandrovich
  – Prigozhin, Yevgeniy Viktorovich
  – Vasilchenko, Gleb Igorevich
  – Venkov, Vladimir
  – Yermakov, Ivan Sergeyevich
  – Yershov, Pavel Vyacheslavovich
 

Christopher A. Ford, Assistant Secretary of State. 

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OGSOTHER GOVERNMENT SOURCES

OGS_a14
. Items Scheduled for Publication in Future Federal Register Editions
 

(Source:
Federal Register)
 
[No items of interest noted today.]

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6. 
Justice: “Texas Resident Sentenced in South Florida to More Than 6 Years in Prison for Violations of the Cuban Embargo”

(Source: 
Justice, 1 Oct 2018.) [Excerpts.]
 
On September 27, 2018, a Texas resident was sentenced in the Southern District of Florida to 6.5 years in prison for unlawfully exporting to Cuba electronic devices that require a license to export due to national security controls. … 
 
Bryan Evan Singer, 46, of Bryan, Texas was convicted at trial for attempting to illegally smuggle electronics to Cuba in violation of the Cuban Embargo, in violation of Title 18, United States Code, Section 554, and for making false statements to federal law enforcement, in violation of Title 18, United States Code, Section 1001(a)(2).  On September 27, 2018, U.S. District Court Chief Judge K. Michael Moore sentenced Singer to 78 months in prison, to be followed by supervised release. 
 
On May 2, 2017, Singer intended to travel from Stock Island, Florida to Havana, Cuba aboard his vessel “La Mala.”  Prior to Singer’s departure, law enforcement conducted an outbound inspection of the boat. During the inspection, Singer declared that he was only bringing to Cuba those items observable on the deck, and that the value of those items was less than $2,500. However, law enforcement conducting the search discovered a hidden compartment under a bolted down bed in the cabin of Singer’s boat. In the hidden compartment, law enforcement discovered hundreds of electronic devices, valued at over $30,000. Included in those devices were over 300 Ubiquiti Nanostation Network devices, which are designed to provide highly encrypted connections between computer networks over long distances. These devices require a license for export to Cuba, under United States law, because their capabilities threaten national security.   Singer never sought or obtained a license to export to Cuba, prior to his offenses of conviction. … 

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OGS_a04
7. 
State/DDTC: (No new postings.)

(Source: 
State/DDTC)

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OGS_a05
8. 
Treasury/OFAC Publishes Settlement Agreement with JPMorgan Chase Bank, N.A. (JPMCA), Issues Finding of Violation 

(Source: 
Treasury/OFAC, 5 Oct 2018.) 
 
The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) today announced a $5,263,171 settlement with JPMorgan Chase Bank, N.A., to settle potential civil liability for 87 apparent violations of the Cuban Assets Control Regulations, 31 C.F.R. Part 515 (CACR); the Iranian Transactions and Sanctions Regulations, 31 C.F.R. Part 560 (ITSR); and the Weapons of Mass Destruction Proliferators Sanctions Regulations, 31 C.F.R. Part 544 (WMDPSR).  Specifically, the transactions were net settlement payments, of which a very small portion appears to have been attributable to interests of airlines that were at various times on OFAC’s List of Specially Designated Nationals and Blocked Persons (the “SDN List”), blocked pursuant to OFAC sanctions, or located in countries subject to the sanctions programs administered by OFAC.  These apparent violations do not include transactions that were exempt from the prohibitions of the International Emergency Economic Powers Act (IEEPA); for example, the apparent violations include transactions such as airline freight charges, which are not exempt.  OFAC has determined that JPMC voluntarily self-disclosed the apparent violations, and that the apparent violations constitute a non-egregious case.
 
Separately, OFAC has issued a Finding of Violation to JPMC regarding violations of the Foreign Narcotics Kingpin Sanctions Regulations, 31 C.F.R. part 598 (FNKSR), and the Syrian Sanctions Regulations, 31 C.F.R. part 542.  Specifically, OFAC determined that from approximately 2007 to October 2013, JPMC processed 85 transactions totaling $46,127.04 and maintained eight accounts on behalf of six customers who were contemporaneously identified on the SDN List.  OFAC determined that JPMC voluntarily disclosed the violations, and that the violations constitute a non-egregious case.
 
For more information on these actions, please visit this 
web notice.

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OGS_a6
9. 
USPS Publishes Report Concerning Export Controls for Outbound Mail at International Service Centers

(Source: 
USPS, 28 Sep 2018.) 
 
Objective
 
In response to the Postal Accountability and Enhancement Act of 2006, the U.S. Postal Service (USPS) designed a program to detect mailers who were not following U.S. Government export laws and regulations. The Postal Service monitors outbound international mailpieces to ensure compliance with U.S. Government export laws and regulations. Postal Service International Service Centers (ISC) distribute and dispatch international mail to foreign countries. To assist in the enforcement of the export laws and regulations, the Postal Service and U.S. Postal Inspection Service use electronically generated customs declaration information to identify potential violations and determine whether a mailpiece should be entered into the mailstream or returned to sender.
Our objective was to determine whether the export controls monitoring program mailpiece screening controls at the ISCs were adequate, effective, and followed to ensure international mailpieces mailed and destined for foreign countries are compliant with applicable regulations.
 
What the OIG Found
 
The Postal Service’s Export Controls Monitoring Program mailpiece screening controls at the ISCs were not always adequate, effective, or followed to ensure international mailpieces destined for foreign countries were compliant with applicable regulations. We found:
 

 The Postal Service, for its Export Controls Program, lacks overall strategic focus. This occurred because although the Postal Service’s Export Controls Program has teams in place to manage the operational phases of the program, there is no centralized program ownership or oversight. This also occurred because management did not adequately plan, assess, and monitor the program as a whole. Specifically, management did not:

 Have a formal strategic plan or current risk assessment for the program.

 Conduct a cost-benefit analysis on the overall program.
– Have a documented process for proactively monitoring emerging issues, or analyze export compliance data.

As a result, the Postal Service is at increased risk of non-compliance with export regulations. 

To read the entire announcement, click here.  To read the full report, click here.
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10. 
EU Amends Certain Specific Restrictions on Economic and Financial Relations with Iraq

(Source: 
Official Journal of the European Union, 5 Oct 2018.)
 
Regulations
 

Commission Implementing Regulation (EU) 2018/1483 of 4 October 2018 amending Council Regulation (EC) No 1210/2003 concerning certain specific restrictions on economic and financial relations with Iraq 

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OGS_a8
11. 
EU Parliament Publishes Paper Concerning the EU Common Position on Arms Exports

(Sources: 
European Parliament, 2 Oct 2018; and 
SIPRI, 4 Oct 2018.) 
 
A new paper on the further development of the EU common position on arms exports, prepared by Stockholm International Peace Research Institute 
(SIPRI) experts for the European Parliament Sub-Committee on Security and Defence (SEDE), has been published online.  
 
The paper, “The further development of the Common Position 2008/944/CFSP on arms export control”, can be accessed here
 
In view of the upcoming review of the EU Common Position 944/2008/CFSP on arms exports, the aim of the workshop was to provide an overview of the context in which this process will take place together with a set of possible outcomes the review could produce. 
 
The speakers from the Stockholm International Peace Research Institute (SIPRI), first defined the context by describing how, since the EU Common Position was adopted in 2008, EU member states performed in terms of military expenditure, arms production and arms transfers. Recent measures adopted at the EU level to boost defence industrial cooperation were also indicated as part of this framework. The speakers also highlighted the divergences in member states’ export policies which emerged in the last decade, most recently during the conflict in Yemen. They then provided a number of options that could be taken into consideration during the 2018 review, covering both adjustments to the language of the criteria and the user’s guide and measures to improve the implementation of the EU Common Position, the quality of reporting and to increase coherence and coordination of the EU export control regime.  
 
A video recording of the workshop is available on the European Parliament webpage here.

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12. 
Hong Kong TID Releases Circular Concerning Air Transshipment Cargo Exemption Scheme for Specified Strategic Commodities

(Source: 
Hong Kong TID, Strategic Trade Controls Circular No. 10/2018, 5 Oct 2018.)
 
The Trade and Industry Department (TID) of Hong Kong has released Strategic Trade Controls Circular No. 10/2018 concerning Air Transshipment Cargo Exemption Scheme for Specified Strategic Commodities. 
The circular is available 
here
.

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NWSNEWS

(Source: 
SpaceNews, 5 Oct 2018.) [Excerpts.]
 
The U.S. State Department has revised an export control rule to clarify that spacecraft and their thrusters should not be classified as rocket engines, as some companies have been doing.
 
The new rule, released Oct. 4 on the Federal Register, results from confusion among satellite and space hardware manufacturers from reforms meant to relax some export control laws in 2014 and 2017, according to the State Department. 
 
Previous rules under U.S. International Traffic in Arms Regulations (ITAR) classified satellites and their thrusters as rocket engines, resulting in strict, weapons-level control of their sale to non-U.S. buyers. 
 
Since then, satellite and space hardware manufacturers have classified the same thrusters under both ITAR and the Commerce Department’s less stringent Export Administration Regulations, or EAR, the State Department said.
 

The State Department said that satellites and their thrusters can have some characteristics of other ITAR-controlled technologies, but acknowledged “such thrusters are not rocket or missile power plants per se.” …  
 

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NWS_a214. 
ST&R Trade Report: “Dates and Deadlines: China Tariffs, Classification, Export Controls, Cargo Receiving” 

(Source: 
Sandler, Travis & Rosenberg Trade Report, 5 Oct 2018.)
 
Following are highlights of regulatory effective dates and deadlines, federal agency meetings, and other trade-related events coming up in the next week.
 
  – Oct. 9 – deadline to request 
exclusions from section 301 tariffs on Chinese goods
  – Oct. 10 – deadline for comments on request for 
new FTZ subzone in Minnesota
  – Oct. 10 – deadline for comments to FMC on 
cargo receiving and handling practices
  – Oct. 12 – deadline for comments to BIS on 
export controls on spraying/fogging systems

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NWS_a315. 
WorldECR: “Ukraine Issues Unified List Of Dual-Use Goods”

(Source: 
WorldECR, 4 Oct 2018. 
 
EU-compliant unified list of dual-use goods will take effect on 19 October.
 
Ukraine will switch to an EU-compliant unified list of dual-use goods subject to export control later this month, according to the State Service of Export Control of Ukraine. Interfax Ukraine has reported that the decision to introduce the unified list, made in January by the Cabinet of Ministers, will take effect on 19 October.
 
Businesses planning to export or handle the brokering of the delivery of dual-use goods abroad will have to register first with the State Service of Export Control Ukraine.
 
More information can be found 
here.

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COMMCOMMENTARY

 
* Author: Maya Lester, Esq., Brick Court Chambers,
maya.lester
@brickcourt.co.uk
,
 +44 20 7379 3550.
 
Following 
yesterday’s ICJ ruling, US Secretary of State Mike Pompeo has 
announced that the USA will terminate the 1955 Treaty of Amity between Iran and the USA, which Iran claims to have been violated by the US through the reimposition of sanctions. Mr. Pompeo remarked that the ICJ’s ruling “was a defeat for Iran. It rightly rejected all of Iran’s baseless requests. The court denied Iran’s attempt to secure broad measures to interfere with U.S. sanctions and rightly noted Iran’s history of noncompliance with its international obligations under the Treaty on the Nonproliferation of Nuclear Weapons.”
 
In relation to the 
ICJ’s Order focusing on potential humanitarian issues, Mr. Pompeo said that “existing exceptions, authorizations, and licensing policies for humanitarian-related transactions and safety of flight will remain in effect. The United States has been actively engaged on these issues without regard to any proceeding before the ICJ. We’re working closely with the Department of the Treasury to ensure that certain humanitarian-related transactions involving Iran can and will continue.”

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(Source: 
sUAS News, 4 Oct 2018.) [Excerpts.]
 
* Author: Patrick Ega, editor of the Americas Desk at sUAS News and host and Executive Producer of the sUAS News Podcast Series, Drone TV, and the Small Unmanned Systems Business Exposition. 
 
Anyone who is calling themselves the Silicon Valley of Drones outside of Guangdong, China is either delusional, a wishful thinker, a huckster, or has no internet access. You may also be possibly suffering from the same afflictions if you believe or espouse the notion that there is no money in hardware. I am here to tell you friends: there is a boatload of Yuan in it. … 
 
The world UAV Congress takeaway –
 
Say it loud: we are number one in drones, and we’re proud! Yes, there are tons of different manufacturers and offerings covering most of the same applications we do or want to do here in the U.S., Europe, and the rest of the world. Fire drones, delivery drones, FARM DRONES, science drones, mapping drones, and configurations for everything in-between! … 
 
In a nutshell, we here in the U.S. are reaping all of the financial and technical rewards of the Federal Aviation Administration’s telling everyone in the U.S. to take a decade off from commercial drones. Not that there weren’t plenty of folks in the U.S. of A that wanted to compete in the global market. However, ITAR (International Traffic in Arms Regulations) put the kibosh on that too, and it shows in China. ITAR non-compliers are eligible for all-inclusive, expenses-paid, extended vacation at the luxurious USP Leavenworth. The ITAR wicket is a sticky one as it can be enacted retroactively. Violators are encouraged under duress to reclaim previously sold and classified as uncontrolled items. You don’t need a law degree from ASU (Harvard on the Gila) to figure out that it is a bad place to be. … 
 
[Editor’s Note: to read the entire item, click on the source link below the item title.]

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(Source: 
Arent Fox, 4 Oct 2018.) 
 
* Authors: Teresa M. Polino, Partner, 
Teresa.Polino@arentfox.com; John Gurley, Partner, 
john.gurley@arentfox.com; and David R. Hamill, Partner, 
david.hamill@arentfox.com. All of Arent Fox. 
 
For the past weeks, a few contentious proposals remained for the three countries to resolve. For better or worse, they have been addressed or deferred. The result is the USMCA, an agreement slated to replace the 24-year-old NAFTA with what the Parties call a “a 21st century, high-standard agreement.” While the USMCA text has answered many questions, there are a number of issues that will need to be fleshed out during the implementation phase of the agreement.
 
Now that the negotiations are over and the USTR has published a text of the Agreement, the US ratification process moves into the legislative arena where deadlines are uncertain and subject to political calendars. Under the Trade Promotion Authority, the earliest that the President can sign the Agreement is November 29, 2018. While there is no legal obligation to sign on this date, the President as expressed an interest in ratifying this Agreement during the term of Mexican president Enrique Pena Nieto. The new Mexican president will be sworn in on December 1, 2018, leaving a very short window of time for signature. 
 
President Trump’s signing of the Agreement will set into motion a series of procedural events that must occur before the Agreement can be introduced to Congress for ratification. Upon completion of all internal procedural requirements, the Parties must notify each other, and the USMCA will enter into force on the first day of the third month following the last notification. Note that the various USMCA side letters, such as the US-Canada and US-Mexico automotive side letters, do not need to go through the ratification process and will take effect upon the parties signing. The higher Regional Value Content requirements established in the USMCA for automotive vehicles cannot go into force before January 1, 2020.
 
The following is a summary of a few of the key provisions of the USMCA:
 
Duties: As expected, the USMCA provides that, with certain exceptions, originating goods from the three signatory countries shall be duty free, existing customs duties may not be increased and new duties may not be adopted on any originating good. Additionally, the USMCA maintains a series of duty-free entry provisions comparable to some of the US Chapter 98 provisions, including provisions for temporary admission of certain goods, and duty free entry of commercial samples and articles exported for repair.
 
Rules of Origin: The USMCA maintains the NAFTA criteria for originating goods: (a) wholly obtained or produced; (b) product-specific rules of origin (tariff shift, RVC and/or specific processing requirements); (c) produced exclusively from originating materials; (d) and unassembled parts rule. Additionally, the Chapter on Rules of Origin addresses the following:
 
  • Retains the NAFTA transaction value and net cost methods for calculating Regional Value Content;
  • Preserves rules relating to intermediate materials, indirect materials, accumulation, and fungible goods;
  • Increases the de minimis exception to 10 percent, subject to exceptions for certain products;
  • Sets forth a special rule for sets classified pursuant to GRI 3, a provision allowing for a set that meets certain criteria to be classified in a single tariff number for duty purposes. Under the special origin rule, a set is originating only if each good in the set is originating and both the set and the goods meet the other applicable requirements; except that a set may be originating if the value of all non-originating goods does not exceed seven percent of the value of the set;
  • Provides that the “Shipped Directly” requirement continues to apply;
  • Defines “Non-Qualifying Operations” to include mere dilution, or production or pricing practice, the object of which was to circumvent the rules of origin;
  • Increases the Automotive Regional Value Content Rule to require that 75 percent of auto content be made in North America; and
  • Imposes a new Labor Value Content Rule, requiring that 40-45 percent of auto content be made by workers earning at least $16 per hour.
 
Origin Procedures: Unlike the NAFTA, an importer may make a claim for preferential treatment based on a certification of origin completed by the exporter, producer or importer. The certification need not follow a prescribed format, but the USMCA provides minimum data elements to be included in the certification. Origin certifications may be provided on an invoice or any other document, and may be completed and submitted in an electronic manner with an electronic or digital signature; however, as with NAFTA, the importer must have a valid certification of origin in its possession at the time the preference claim is made.
 
Also similar to the NAFTA, the USMCA retains the exporter and producer recordkeeping obligations for those parties in the transaction who have issued certificates of origin and preserves Customs’ ability to conduct verifications of claims for preferential treatment through written requests, verification visits, and any other procedure as may be decided by the parties. Under the USMCA, an importer must also maintain all the records necessary to demonstrate that the good is originating if the claim is based on an importer completed certification.
 
Trade Facilitation: To facilitate greater cross-border trade, the USMCA provides an increase of 
de minimis shipment value levels in Canada and Mexico. Canada will raise its 
de 
minimis level for the first time in decades, from C$20 to C$40 for taxes and C$150 for customs duties. Mexico will continue to provide USD $50 tax free 
de minimis and also provide duty free shipments up to the equivalent level of USD $117. Shipment values up to these levels would enter with minimal formal entry procedures, making it easier for small and medium-sized businesses to be a part of cross-border trade. Canada will also allow a period of 90 days after entry for the importer to make payment of taxes.
 
Digital Trade: The USMCA chapter on Digital Trade provides a foundation for the expansion of trade and investment in the innovative products and services where the United States has a competitive advantage. Among its key provisions is a prohibition on customs duties and other discriminatory measures from being applied to digital products distributed electronically (e-books, videos, music, software, games, etc.).
 
Additionally, the USMCA ensures that data can be transferred cross-border, and minimizes limits on where data can be stored and processed, thereby enhancing and protecting the global digital ecosystem. Furthermore, the USMCA aims to facilitate digital transactions by ensuring that suppliers are not restricted in their use of electronic authentication or electronic signatures, and by promoting collaboration on cybersecurity, to keep networks and services secure.
 
Intellectual Property: The Intellectual Property (IP) chapter provides protection and enforcement of IP rights relating to copyrights, trademarks and patents. Notably, the Agreement includes key enforcement provisions, including 
ex officioauthority 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.
 
With regard to protection of trade secrets, the IP chapter of the USMCA includes various protections against misappropriation of trade secrets, including by state-owned enterprises. Such protections include civil procedures and remedies, criminal procedures and penalties, prohibitions against impeding licensing of trade secrets, judicial procedures to prevent disclosure of trade secrets during the litigation process, and penalties for government officials for the unauthorized disclosure of trade secrets.
 
Section 232 Auto, Steel & Aluminum Tariffs: The current tariffs on steel and aluminum have not been removed (though there continues to be talk of negotiations on this thorny issue). Within the new Agreement, a side letter between the US and Canada addresses Section 232 and provides a quantitative exemption for autos and auto parts in the event the US implements Section 232 tariffs on these goods. Additionally, should future 232 Tariffs on other goods be invoked, the side letter provides for a 60 day consultation period for Canada to work with the US to come to an agreement prior to the implementation of any future Section 232 measures.
 
The Sunset Clause: The USMCA shall terminate 16 years after the date of its entry into force unless the parties wish to renew for another 16 term. However, the USMCA provides that the parties shall conduct a “joint review” of the “operation of the Agreement” every 6 years. As part of this 6-year “joint review,” each Party must confirm, in writing, their desire to extend the Agreement for another 16 year term. If during any “joint review” the parties do not agree to extend for another 16 year term, a “joint review” shall be conducted every year for the remainder of the term of the Agreement or until the parties agree to extend for another 16-year period, at which point the 6-year “joint review” cycle will be reinstated.
 
Agriculture: The USMCA represents a significant step forward for the agriculture industry, particularly the dairy sector. All food and agricultural products that have zero tariffs under the NAFTA will remain at zero. Since the original NAFTA did not eliminate all tariffs on agricultural trade between the US and Canada, the USMCA will create new market access opportunities for US exports to Canada of dairy, poultry, and eggs. In exchange, the US will provide new access to Canada for dairy, peanuts, processed peanut products, and a limited amount of sugar and sugar containing products.
 
Additionally, the top priority for America’s dairy industry in this negotiation has been for Canada to eliminate its program that allows low priced dairy ingredients to undersell United States dairy sales in Canada and in third country markets. As a result of the negotiation, six months after entry into force of the USMCA, Canada will eliminate what is known as its milk classes 6 and 7. By doing so, Canada will ensure that the price for skim milk solids used to produce nonfat dry milk, milk protein concentrates, and infant formula will be set no lower than a level based on the United States price for nonfat dry milk. Canada has also committed to adopt measures designed to limit the impact of any surplus skim milk production on external markets.
 
Automotive: While global automakers are worried about the challenges that the USMCA rules will pose, and the impact of these rules when compounded with the potential Section 232 tariffs on automotive goods, the North American automotive industry views the USMCA as vital to the success of the North American auto industry. As noted in the “Rules of Origin” discussion above, the automotive provisions raise the domestic content requirements for passenger vehicles, trucks and parts thereof. The Agreement provides for a staggered increase of the RVC requirement for passenger vehicles and light trucks, staring on January 1, 2020 at 66 percent under the net cost method and increasing by 3 percent per year until it reaches 75 percent in 2023. The Agreement further provides for specific RVC requirements for various auto parts, heavy trucks and parts thereof.
 
Additionally, the Agreement imposes a new Labor Value Content Rule, requiring that a certain percentage of auto content be made by workers earning at least $16 per hour. The percentage starts at 30 percent in 2020, and has a staggered implementation schedule that increases the LVC annually until 2023.
 
Textile & Apparel: The new provisions on textiles incentivize greater North American production in textiles and apparel trade, strengthen customs enforcement, and facilitate broader consultation and cooperation among the Parties on issues related to textiles and apparel trade. Specifically, the textile and apparel rules promote greater use of Made-in-the-USA fibers, yarns, and fabrics by limiting rules that allow for some use of non-NAFTA inputs and requiring that sewing thread, pocketing fabric, narrow elastic bands, and coated fabric, when incorporated in most apparel and other finished products, be made in the region for those finished products to qualify for trade benefits. Adjustments were also made to the Tariff Preference Levels. Additionally, the USCMA establishes a Textiles chapter for North American trade, including textile-specific verification and customs cooperation provisions that provide new tools for strengthening customs enforcement and preventing circumvention and fraud.

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

TEEX/IM TRAINING EVENTS & CONFERENCES

TE_a3
19. 
List of Approaching Events: 2 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

 
 


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

* Nov 14: Manchester, UK; “Intermediate Seminar“; UK Department for International Trade

* Nov 14-15: Newark, NJ; “
Complying with U.S. Export Controls
“; Commerce/BIS and The New Jersey District Export Council 

* 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

# Nov 28-30: Brussels, Belgium; “
Beware Sanctions and Export Controls”

;



Brussels Diplomatic 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 13: Brussels, Belgium; “
2018 Export Control Forum
“; European Commission

* 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 6-7: Scottsdale, AZ;

Complying with U.S. Export Controls
“; Commerce/BIS

* Feb 12-13: Washington, D.C.; “
2019 Legislative Summit
“; National Association of Foreign Trade Zones (NAFTZ) 
* Feb 18-21: Orlando, FL; “
ITAR Defense Trade Controls / EAR Export Controls Seminar
“; ECTI

* Mar 6-7: San Diego, CA;

Complying with U.S. Export Controls
“; Commerce/BIS
* Mar 12-14: Dallas, TX;

Complying with U.S. Export Controls
“; Commerce/BIS
* Mar 12-14: Dallas, TX;

How to Build an Export Compliance Program
“; Commerce/BIS

* Mar 18-21: Las Vegas, NV; “
ITAR Defense Trade Controls / EAR Export Controls Seminar
“; ECTI

* Mar 26-27: Scottsdale, AZ; “
Seminar Level II: Managing ITAR/EAR Complexities
“; Export Compliance Solutions
 

* Apr 1-4: Washington, DC;ITAR Defense Trade Controls / EAR Export Controls Seminar“; ECTI

* Apr 3-4: Denver, CO;

Complying with U.S. Export Controls
“; Commerce/BIS
* Apr 23-24: Portsmouth, NH;

Complying with U.S. Export Controls
“; Commerce/BIS
Apr 25: Portsmouth, NH;

Technology Controls
“; Commerce/BIS

* May 5-7: Savannah, GA; “2019 Spring Seminar“; National Association of Foreign Trade Zones (NAFTZ)

* Aug 20-21: Cincinnati, OH;

Complying with U.S. Export Controls
“; Commerce/BIS

* Sep 8-11: Chicago, IL; “2019 Annual Conference and Exposition“; National Association of Foreign Trade Zones (NAFTZ)
 
Webinars 


 
  

* Oct 10: Webinar; “
Advanced Classification, Part 2
;” Sandler, Travis & Rosenberg, P.A. 

* Oct 11: Webinar; “
FTAs – an EU perspective
“; Amber Road

* 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_a120
. Bartlett’s Unfamiliar Quotations

(Source: Editor)

William Samuel Johnson (7 Oct 1727 – 14 Nov 1819; was an early American statesman who was notable for signing the United States Constitution, for representing Connecticut in the United States Senate, and for serving as the third president of King’s College now known as Columbia University.)
  – “To keep your secret is wisdom; to expect others to keep it is folly.”
 

Niels Bohr (Niels Henrik David Bohr; 7 Oct 1885 – 18 Nov 1962; was a Danish physicist who made foundational contributions to understanding atomic structure and quantum theory, for which he received the Nobel Prize in Physics in 1922. Bohr was also a philosopher and a promoter of scientific research.)
  – “An expert is a man who has made all the mistakes which can be made, in a narrow field.”
Friday Funny:
“Only Robinson Crusoe had everything done by Friday.”
  – Unknown Author 

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

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: 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:
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: 
4 Oct 2018: 
83 FR 50003-50007
: Regulatory Reform Revisions to the International Traffic in Arms Regulations
  – The only available fully updated copy (latest edition: 4 Oct 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_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.

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

* 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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