18-1022 Monday “Daily Bugle”

18-1022 Monday “Daily Bugle”

Monday, 22 October 2018

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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[No items of interest noted today.] 

  1. Items Scheduled for Publication in Future Federal Register Editions
  2. Commerce/BIS: (No new postings.)
  3. DHS/CBP Releases Harmonized System Update 1818
  4. DHS/CBP Releases Notice Concerning Entry Summary Order of Reporting for HTS in ACE
  5. DoD/DSCA Posts Policy Memo 18-46
  6. Justice: “Skagway Man Indicted for the Illegal Export/Import of Walrus Ivory, Lacey Act Violations”
  7. State/DDTC: (No new postings.)
  1. Defense News: “Germany Considers Freeze on Arms Exports to Saudi Arabia Over Journalist’s Death”
  2. Digital Journal: “Iran Using ‘Ghost Ships’ To Get Around Trump’s Oil Sanctions”
  3. Global Trade News: “CBP Is Preparing to Roll Out New Minimum Security Criteria for CTPAT”
  4. Nextgov: “Researchers Have Discovered a Way to Track 3D Printed Guns”
  5. Nikkei Asian Review: “Chinese State-Backed Chipmaker Targets Europe Amid U.S. Resistance”
  6. Reuters: “Ericsson Has Dismissed 50 Employees Following U.S. Corruption Probe”
  1. K. Louis: “Exports Critical for Australia’s Defense Industry”
  2. M. Volkov: “JP Morgan Chase Bank Settles “Old” Sanctions Case for $5 Million”
  3. Wilson Sonsini Goodrich & Rosati: “Five Questions to Determine If You Have a CFIUS Filing Requirement”
  1. Monday List of Ex/Im Job Openings: 159 Openings Posted This Week, Including 14 New Openings
  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 (22 Oct 2018), ITAR (4 Oct 2018) 
  3. Weekly Highlights of the Daily Bugle Top Stories 



[No items of interest noted today.]
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OGS_a11. Items Scheduled for Publication in Future Federal Register Editions
(Source: Federal Register)

* Commerce/BIS; 
  – PROPOSED RULES: Foreign Disposition of Certain Commodities; and
  – NOTICES; Meetings:
    – Materials Technical Advisory Committee; and 
    – Regulations and Procedures Technical Advisory Committee [Publication Dates: 23 Oct 2018.]

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CSMS# 18-000625, 22 Oct 2018.) 

Harmonized System Update (HSU) 1818 was created on October 22, 2018 and contains 1,544 ABI records and 286 harmonized tariff records.

On December 22, 2017, the President signed into law the Tax Cuts and Jobs Act (Public Law 115-97), which mandated modification to the Internal Revenue Code of 1986 (IRC). Within the legislation, regulations related to alcohol administered by TTB are amended. The ACE HTS has been updated to reflect these Craft Beverage Modernization Act (CBMA) adjustments and the bill can be accessed using 
this link.  

CBP also encourages trade members to continue to visit the CBMA page 
Adjustments required by the verification of the 2018 Harmonized Tariff Schedule (HTS) are included as well.

The modified records are currently available to all ABI participants and can be retrieved electronically via the procedures indicated in the CATAIR. For further information about this process, please contact your client representative. For all other questions regarding this message, please contact Jennifer Keeling via email at 

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DHS/CBP Releases Notice Concerning Entry Summary Order of Reporting for HTS in ACE
CSMS# 18-000624, 20 Oct 2018.)

INFORMATION: Entry Summary Order of Reporting For Multiple Harmonized Tariff System (HTS) Classifications in the Automated Commercial Environment (ACE) 

BACKGROUND: The purpose of this message is to outline the order of reporting in ACE for multiple HTS on the same entry summary line, when a Chapter 98 or 99 HTS is required. ACE is the system of record for all entry summaries. 

GUIDANCE: When submitting an entry summary in which a heading or subheading in Chapter 98 and/or 99 is claimed on imported merchandise, the following instructions will apply for the order of reporting the HTS on an entry summary line.


  (1) Chapter 98 (if applicable)

  (2) Chapter 99 number(s) for additional duties 

  (3) For trade remedies, first report the Chapter 99 HTS for Section 301, followed by the Chapter 99 HTS for Section 232 or 201 duties (if applicable), followed by the Chapter 99 HTS for Section 201 or 232 quota (if applicable). 

  (4) Chapter 99 number(s) for REPLACEMENT duty or other use (i.e., MTB or other provisions)

  (5) Chapter 99 number for other quota (not covered by #3) (if applicable)

  (6) Chapter 1 to 97 Commodity Tariff

ENTERED VALUE: The entered value of the commodity being imported on the entry summary line should be reported on the Chapter 1-97 HTS classification for the commodity being imported. Except if Chapter 98 reporting provisions require the entered value to be reported differently.

FOR FURTHER INFORMATION: Questions from the importing community concerning ACE entry filing and rejections should be referred to their Client Representative.

  – Related CSMS No. 18-000621, 18-000606, 18-000575

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DoD/DSCA, 22 Oct 2018.) 
This memo revises 
Chapter 2, Section C2.2.5. to clarify ambiguous language with regard to Case Manager communication requirements.

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Justice: “Skagway Man Indicted for the Illegal Export/Import of Walrus Ivory, Lacey Act Violations”

Justice, 19 Oct 2018.) [Excerpts.] 
U.S. Attorney Bryan Schroder announced today that a Skagway man has been indicted on charges alleging smuggling of walrus ivory and the illegal export and import of walrus ivory in violation of the Lacey Act.
James Terrance Williams, 67, of Skagway, d.b.a. Inside Passage Arts, was named in the 10-count indictment charging him with smuggling walrus ivory from the United States, smuggling walrus ivory into the United States, illegal sale of smuggled ivory in violation of the Lacey Act, and Lacey Act false labeling.  
Under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), walrus ivory cannot be exported out of the United States, nor imported into the United States, without a permit.  The indictment alleges that, in October 2014 and March 2016, Williams illegally exported raw, unworked, walrus ivory tusks from Alaska to Indonesia for carving.  He would then smuggle the carved walrus ivory back into the United States, disguising the illegal nature of the transportation by falsification of records, all in furtherance of illegal sales of the ivory. 
This scheme involved numerous Lacey Act violations. Specifically, it is alleged that, in the years 2014, 2015, and 2016, Williams would then sell the carved walrus ivory as merchandise, knowing that it had been unlawfully transported into the United States from a foreign county.  Furthermore, it is alleged that, Williams knowingly made or submitted false records and accounts for the importation, transportation, and sale of carved walrus ivory tusks.
If convicted, Williams faces terms of imprisonment of up to 10 years and fines up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant. … 
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.

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State/DDTC: (No new postings.)


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Defense News, 22 Oct 2018.) [Excerpts.]
Germany’s chancellor has expressed her support for a freeze on arms exports to Saudi Arabia.
Angela Merkel’s comments on Sunday in Berlin follow the death of Jamal Khashoggi, a Washington Post columnist.
A man appearing to wear Khashoggi’s clothes left the Saudi Consulate in Istanbul following his killing there, according to a surveillance video, while a member of Saudi Crown Prince Mohammed bin Salman’s entourage made four calls to the royal’s office around the same time, reports said Monday.
German Economy Minister Peter Altmaier underlined Merkel’s point Monday, calling for a joint European position, as Germany “won’t at this point approve any further arms exports because we want to know what happened.”
Turkish media reports and officials maintain that a 15-member Saudi team flew to Istanbul on Oct. 2, knowing Khashoggi would arrive for a document he needed to get married. Once he was inside the diplomatic mission, the Saudis accosted Khashoggi, cut off his fingers, killed and dismembered the 59-year-old writer.
The kingdom claims Khashoggi died in a “fistfight.”… 
eading Republicans and Democrats in Congress are saying Saudi Arabia should face punishment over Khashoggi’s killing. President Donald Trump also had talked about possible punishment but said he didn’t want to halt proposed arms sales to Saudi Arabia because, he maintained, it would harm U.S. manufacturers.

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Digital Journal: “Iran Using ‘Ghost Ships’ To Get Around Trump’s Oil Sanctions”

Digital Journal, 20 Oct 2018.) [Excerpts.] 
The two biggest buyers of Iranian oil are China and India, accounting for 50 percent of all Iranian oil exports. However, despite the growing trade tensions and looming sanctions against Iran, China has promised to keep Iranian oil flowing, regardless of the Trump sanctions.
China is actually working alongside Russia and the European Union on newly created 
special purpose vehicle (SPV) to bypass the sanctions. India is not so concerned about the trade sanctions and has also promised to keep Iranian oil flowing, citing the importance of oil to its economy. 
President Trump exited the Joint Comprehensive Plan of Action (JCPoA), better known as the Iran nuclear agreement, and in August, as the rhetoric between the White House and Iran started escalating, Trump began imposing sanctions on the state. The first round of sanctions hit Iranian financial interests in the U.S. … 

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Global Trade News: “CBP Is Preparing to Roll Out New Minimum Security Criteria for CTPAT” 

Integration Point Blog, 19 Oct 2018.) [Excerpts.] 
U.S. CBP recently began the process of sharing the proposed new minimum security criteria (MSC) for the Customs Trade Partnership Against Terrorism (CTPAT) program. The new MSC have been in the works for two years, and this is the first revision since they were created 16 years ago.
The current “Minimum Security Criteria Workbook for Importers” is available to all existing members through the CTPAT Portal. Workbooks for additional entity types are also available via the CTPAT Portal; however, this blogpost will focus on Importer criteria.
Members have until the end of October 2018 to review and submit their feedback. CBP plans to evaluate the feedback to determine if further modifications are needed before finalizing the new MSC. It is expected that in early 2019, the new MSC will be rolled out in a phased approach as CBP takes the time to educate the trade and prioritize feasibility. … 

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Nextgov: “Researchers Have Discovered a Way to Track 3D Printed Guns”

Nextgov, 19 Oct 2018.) [Excerpts.]
Even printers have fingerprints.
One of the key reasons policymakers and law enforcement agencies find 3D printed guns worrisome is their so-called “untraceable” nature, but researchers may have found a way to match a gun to a printer.
Unlike traditional firearms, 3D printed guns have no bills of sale or serial numbers, nor do builders go through background checks. 
Researchers at the University of Buffalo, however, have discovered that each 3D printer leaves its own signature. The researchers have dubbed this a “hardware fingerprint.”
These hardware variations in each printer create a pattern on each object printed. Even two printers of the same make and model have a slightly different fingerprint.
The researchers are calling the identification system they developed “PrinTracker.”
  “Two human beings can write the same thing, but they’ll have different handwriting. It’s the same concept for [tracking] 3D printers,” Wenyao Xu, lead author of the paper 
told CNET. … 

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Nikkei Asian Review: “Chinese State-Backed Chipmaker Targets Europe Amid U.S. Resistance”

Nikkei Asian Review, 22 Oct 2018.) [Excerpts.] 
Innotron in talks to acquire industry’s most advanced equipment from ASML
Chinese chipmaker Innotron Memory, which Beijing envisions becoming a challenger to industry heavyweights like Samsung Electronics and Micron Technology, is seeking technology from top European semiconductor equipment supplier ASML as the U.S. pushes back against China’s high-tech ambitions. … 
On Monday, [Innotron CEO Zhu Yiming] is scheduled to meet the top management of the Netherlands’ ASML, according to an industry source familiar with the plan. Zhu and his team will discuss with the ASML executives at the company’s Veldhoven headquarters the possibility of purchasing extreme-ultraviolet lithography equipment, the industry’s most advanced chip production tool — and the costliest at $120 million each. … 
The domestic chip industry — the top priority in the incentive — has been caught in the crossfire as U.S. President Donald Trump’s administration ratchets up efforts to curb China’s high-tech ambitions. American authorities have strengthened export controls on advanced chip equipment, while almost all Chinese tech acquisition attempts are blocked by Washington on national security grounds. … 
There have long been restrictions on sales or shipments of cutting-edge chip manufacturing equipment to China. The restrictions have been justified through the Wassenaar Arrangement, a multinational voluntary export-control compliance agreement that covers the export of technologies that could have military applications. But companies can obtain exemptions from such restrictions.

ASML declined to comment on whether Innotron is interested in buying EUV systems. But the Dutch chip equipment maker told the Nikkei Asian Review that it treats all of its customers worldwide equally — including Chinese clients. ASML also responded in a statement that it is aware that the EUV system is listed in the Wassenaar Arrangement but the Dutch company has already obtained licenses to ship the advanced production equipment to China. … 

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Reuters: “Ericsson Has Dismissed 50 Employees Following U.S. Corruption Probe”

Reuters, 18 Oct 2018.)
Mobile telecom gear maker Ericsson said on Thursday that it has dismissed 50 people over a U.S. corruption probe it warned could lead to a financial penalty.
The Swedish company has previously said that it initially received questions from U.S. authorities in March 2013 and that it has been cooperating with the U.S. Securities and Exchange Commission and the U.S. Department of Justice.
  “I’m trying to say that we have taken quite a lot of actions and done quite a lot of activities,” Ericsson Chief Executive Borje Ekholm told a press conference, after the group reported stronger-than-expected third-quarter results. 
The 50 employees have left the company since Ericsson began its own investigation in 2013, a company spokesman said, but declined to be more precise. Several regions were affected, but the spokesperson declined to give details. 
Ericsson has not commented on previous media reports that U.S. authorities were investigating its business practices in Romania and in China. 
  “We believe that the resolution of these matters will likely result in monetary and other measures, the magnitude of which cannot be estimated currently but may be material,” Ekholm said in a statement. 
Findings of corruption by U.S. authorities can result in hefty fines for companies under the Foreign Corrupt Practices Act.

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K. Louis: “Exports Critical for Australia’s Defense Industry”
The Strategist, 19 Oct 2018.) [Excerpts.] 
* Author: Kate Louis, head of defense and industry policy at the Australian Industry Group.
The federal government’s 
defense export strategy, released in January 2018, is paving the way for a new era of success for the Australian defense industry. A key element of the strategy will be pairing strong advocacy of Australian industry with a clear, consistent and well-resourced defense export control regime to manage the export permit process.
Given the relatively small domestic requirement to supply the Australian Defense Force, exports are critical in expanding and lifting the global competitiveness of the industry. This is important not only for business, but also for the industry’s ability to deliver even more competitively to the ADF.
The vision set out in the strategy to become a top-10 defense exporter is ambitious but achievable. It will require continued leadership from the government and the Department of Defense, appropriate policy settings and strong advocacy. … 
[Editor’s Note: to read the entire article, click on the source link below the item title.]

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M. Volkov: “JP Morgan Chase Bank Settles “Old” Sanctions Case for $5 Million”
Volkov Law Group Blog, 19 Oct 2018. Reprinted by permission.) 
* Author: Michael Volkov, Esq., Volkov Law Group, 
mvolkov@volkovlaw.com, 240-505-1992. 
The Treasury Department’s Office of Foreign Asset Control (“OFAC”) announced its third enforcement action for 2018.  While OFAC has been busy with implementing new sanctions regimes and re-imposing the Iran sanctions regime, OFAC is beginning to clear some of the enforcement matters that have been pending.
JP Morgan Chase agreed to a $5.2 million settlement with OFAC for 87 apparent violations from the processing of net settlement payments totaling just over $1 billion, of which 0.14 percent involved sanctioned parties.  Specifically, JP Morgan Chase processed 87 transactions in violation of the Cuba, Iran, and Weapons of Mass Destruction Sanctions Programs.
JPMorgan Chase voluntarily disclosed the apparent violations, and OFAC determined that the violations were non-egregious, resulting in a base penalty of nearly $8 million, which was then reduced to $5.2 million because of Chase’s voluntary disclosure, cooperation and remediation.
JP Morgan Chase’s conduct surrounded transactions with state-owned airlines that were prohibited under the Cuba, Iran and WMD Sanctions Programs.  JP Morgan Chase operated a net settlement mechanism to resolve billings among the various airlines and other market participants on behalf of its client and its approximately 100 members and a non-U.S. entity and its over 350 members.  Eight of the participating airlines were sanctioned parties or located in countries that were sanctioned.
JP Morgan Chase’s violations occurred because of it failed to screen participating entities in the non-U.S. entity which included sanctioned parties.   JP Morgan Chase had the information needed to conduct the screening.  JP Morgan Chase also ignored several red flag notices and other warning signs, including two specific warnings that OFAC-sanctioned entities were participating in the settlement process.
On the mitigating side, OFAC observed that no JP Morgan Chase managers or supervisors were aware of the conduct or transactions; the total harm to OFAC’s sanctions program was significantly less than the value of the transactions.
JP Morgan Chase implemented compliance program improvements.  Specifically, JP Morgan Chase screened all of its transactions between February 2012 and the termination of its relationship with its U.S. entity client.  JP Morgan Chase also increased its compliance staff, implemented new sanctions-screening software, and enhanced its training program.
In a separate and related action, OFAC issued a Finding of Violation against JP Morgan Chase for violations of the Narcotics Kingpin Sanctions Regulations and the Syrian Sanctions Regulations.  OFAC imposed no penalty for this violation.
Over a three-year period between 2011 and 2014, JP Morgan Chase processed 85 transactions totaling approximately $46,000 and maintained eight accounts on behalf of six customers were who were on the SDN List.
OFAC noted that, from 2007 to October 2013, JP Morgan Chase used a vendor screening system that failed to identify these six customers as potential matches to the SDN List. Specifically, OFAC noted the system failed to identify customer names with hyphens, initials, or additional middle or last names as potential matches to similar or identical names on the SDN List. Despite strong similarities between the accountholder’s names, addresses, and dates of birth in the account documentation and on the SDN List, JP Morgan Chase maintained accounts for, and/or processed transactions on behalf of, these six customers.

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Wilson Sonsini Goodrich & Rosati: “Five Questions to Determine If You Have a CFIUS Filing Requirement”
Wilson Sonsini Goodrich & Rosati, 18 Oct 2018.)
As of November 10, 2018, foreign investors making acquisitions and equity investments into many U.S. businesses 
will be required to file their investments with the Committee on Foreign Investment in the United States (CFIUS) before closing. This mandatory filing requirement also covers investments from U.S. funds with foreign limited partners under many circumstances. Penalties for failing to make a mandatory filing may be as much as the total investment in question, and parties can be forced to divest their investment.
The guidance that follows provides a high-level description of the changes to the CFIUS rules.
On October 10, the Department of the Treasury issued two new sets of regulations as the first stage in the implementation of the Foreign Investment Risk Review Modernization Act (FIRRMA), the law passed in August to reform CFIUS. FIRRMA is intended to ensure that CFIUS has an opportunity to review foreign investments into a wider range of U.S. businesses-including those that develop, make, or test “critical technologies”-and to evaluate national security risks associated with those investments. These initial rules are only the beginning of FIRRMA implementation, which will spread out over the next year or more, but even these initial rules may change the way in which many technology companies seek investment.
first set of rules issued October 10, which take effect immediately, include a series of amendments to the existing CFIUS regulations generally intended to conform the existing regulations with certain aspects of FIRRMA. The 
second set of rules establishes a so-called “pilot program”-interim regulations that will implement many of the new authorities granted to FIRRMA from November 10, 2018 until final regulations are established. The pilot program expands CFIUS jurisdiction to many non-controlling investments, and then makes the filing of those investments, as well as many controlling investments, mandatory. 
Answering five questions will determine whether a CFIUS filing is required; if the answer is “yes” to all five, a filing is likely necessary:
1. Did the investment sign after October 10, and will it close on or after November 10?
2. Is the investor a foreign person?

  a.   If the investor is a foreign natural person, a foreign entity, a foreign investment fund, a foreign government, or a U.S. entity under the control of any foreign person or entity (e.g., a U.S. company for which a foreign person has the right to designate one of its directors), it is a foreign person.

  b.   In addition, if the investor is a U.S. fund with one or more foreign general partners, or limited partners that serve in more than a purely passive capacity, it may also be a foreign person. A foreign limited partner that receives non-public information about a target’s technologies generally is not considered passive.

3. Is the investment into the target business covered by the pilot program?

  a.   Any type of equity or equity-like investment into a U.S. business (e.g., an equity financing, entry into a new joint venture, or acquisition of contingent equity interests with rights granted upon conversion) is covered. Changes to pre-existing rights, e.g., new rights to access information, also are covered.

  b.   The investment must grant the investor one of the following rights: i. control over the target, ii. a board seat, observer, or nomination right, iii. access to non-public information about the target’s technologies, or iv. any other form of involvement in the use, development, acquisition, or release of the target’s technologies.

4. Does the target work with “critical technologies”?

  a.   The regulations define “critical technologies” very broadly to include not only defense-related products and services but also cameras, computers, semiconductor chips, security software, biotech, and more. Critical technologies also may expand over time, as the government has the authority to develop further the set of technologies of interest through rulemaking.

  b.   In addition to International Traffic in Arms Regulations (ITAR, administered by the Department of State) controlled defense articles and services, critical technologies also include: i. anything subject to the Export Administration Regulations (EAR) that is controlled for national security (NS), chemical and biological weapons proliferation (CW), nuclear nonproliferation (NP), missile technology (MT), regional stability (RS) or surreptitious listening (SL) reasons (generally anything that is more than anti-terrorism (AT) controlled), ii. certain items related to nuclear equipment and facilities, iii. certain toxins, and iv. yet to be defined emerging technologies.

  c.   If a company does not have sufficient information to determine the export classification of its products and technologies and satisfies the other four tests, then it may be advisable to make a precautionary filing as a result.

5. Does the target have customers or partners in a “pilot program industry”?

  a.   If the target’s customers or other third parties that use the target’s critical technologies operate in a specified list of industries-which includes computer manufacturing, semiconductor manufacturing, biotechnology, nanotechnology, battery manufacturing, aerospace manufacturing, optical instrument manufacturing, and many more-the target’s activities with respect to those critical technologies likely fall within the pilot program industry. A full list of pilot program industries is provided at the end of this advisory.

  b.   If a company does not have sufficient information to determine the areas in which its customers do business, and it satisfies the other four tests, then it may be advisable to make a precautionary filing as a result. 


Some other common questions follow:
When must a CFIUS filing be made? At least 45 days before the investment closes, unless the investment is expected to close between November 10 and December 25, in which case the filing must be made on November 10 or promptly thereafter.
How long will a mandatory CFIUS filing take? The traditional CFIUS filing process has historically taken four or more months to clear. The pilot program regulations establish an expedited short-form declaration process that is designed to provide CFIUS feedback within 30 days and can be used as an alternative. Because the pilot program is new, however, the timing of that declaration process may be unpredictable.
What penalties may apply for failure to make a mandatory filing? Parties who fail to comply can be compelled to file by CFIUS and forced to divest their investment in the target. In addition, those parties may be liable to the U.S. government for civil penalties up to the total value of the investment in question.
What about transactions subject to CFIUS jurisdiction that aren’t covered by the pilot program, such as foreign investments that yield control over U.S. companies without critical technologies? Transactions currently subject to CFIUS jurisdiction continue to be subject to CFIUS jurisdiction, and CFIUS will continue to have the authority to review those transactions before or after closing if they are not filed voluntarily and cleared by CFIUS. While transactions outside of the pilot program are not required to be filed, CFIUS, as part of FIRRMA, has established a new office dedicated to monitoring for unfiled transactions and enforcing the new rules, and that office is expanding its review of unfiled transactions. Accordingly, even covered transactions not subject to the mandatory filing rules are subject to increased CFIUS risk.
Are there any transactions that are affected by CFIUS’s expansion of jurisdiction to cover non-controlling transaction, but that are not subject to mandatory filing requirements? Not under the current pilot program, which defines a new set of “pilot program covered investments” and then makes all such investments “pilot program covered transactions” subject to mandatory filing requirements. 
How are investments by funds impacted? The pilot program implements FIRRMA’s exemption for investment funds that are exclusively managed by U.S. persons and that do not provide the foreign person with control over fund decision-making or access to key fund portfolio company information. In practice, however, this means U.S. funds may be considered foreign investors-or vehicles for foreign investments by their limited partners-if those funds have one or more non-U.S. persons at the general partner or management company, or if those funds have foreign limited partners that play more than a purely passive role.
What is the full list of covered pilot program industries?
  • Aircraft Manufacturing – NAICS Code: 336411
  • Aircraft Engine and Engine Parts Manufacturing – NAICS Code: 336412
  • Alumina Refining and Primary Aluminum Production – NAICS Code: 331313
  • Ball and Roller Bearing Manufacturing – NAICS Code: 332991
  • Computer Storage Device Manufacturing – NAICS Code: 334112
  • Electronic Computer Manufacturing – NAICS Code: 334111
  • Guided Missile and Space Vehicle Manufacturing – NAICS Code: 336414
  • Guided Missile and Space Vehicle Propulsion Unit and Propulsion Unit Parts Manufacturing – NAICS Code: 336415
  • Military Armored Vehicle, Tank, and Tank Component Manufacturing – NAICS Code: 336992
  • Nuclear Electric Power Generation – NAICS Code: 221113
  • Optical Instrument and Lens Manufacturing – NAICS Code: 333314
  • Other Basic Inorganic Chemical Manufacturing – NAICS Code: 325180
  • Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing – NAICS Code: 336419
  • Petrochemical Manufacturing – NAICS Code: 325110
  • Powder Metallurgy Part Manufacturing – NAICS Code: 332117
  • Power, Distribution, and Specialty Transformer Manufacturing – NAICS Code: 335311
  • Primary Battery Manufacturing – NAICS Code: 335912
  • Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing – NAICS Code: 334220
  • Research and Development in Nanotechnology – NAICS Code: 541713
  • Research and Development in Biotechnology (except Nanobiotechnology) – NAICS Code: 541714
  • Secondary Smelting and Alloying of Aluminum – NAICS Code: 331314
  • Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing – NAICS Code: 334511
  • Semiconductor and Related Device Manufacturing – NAICS Code: 334413
  • Semiconductor Machinery Manufacturing – NAICS Code: 333242
  • Storage Battery Manufacturing – NAICS Code: 335911
  • Telephone Apparatus Manufacturing – NAICS Code: 334210
  • Turbine and Turbine Generator Set Units Manufacturing – NAICS Code: 333611

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MS_a117. Monday List of Ex/Im Job Openings: 159 Openings Posted This Week, Including 14 New Openings

(Source: Editor) 

Published every Monday or first business day of the week. Please, send job openings in the following format to 


” New or amended listing this week


Aerion Supersonic; Reno, NV;
Export Control Officer

* Aerojet Rocketdyne; Canoga Park, CA; 
Manager, Industrial Security & Compliance

* Agility; Bensenville, IL; 
Ocean Export Coordinator

Agility; Basel, Switzerland; 
International Exhibition Coordinator

* Agility; Carson, CA;
Air Export Coordinator
* Agility; Charlotte, NC;
Import Manager/Licensed Customs Broker
* Agility; East Boston, MA; Customs/Entry Writer Coordinator

* Agility; Queens, NY;
Air Export Supervisor

Airschott, Inc.; Dulles, VA; Imports/Exports/International Logistics & Business

Ajilon; Woodland Hills, CA; 
Import Export Specialist

 Alcoa Group; Knoxville, TN;
Trade Compliance Administrator

Amazon; Washington D.C., DC; Manager, Export Control & Trade Compliance;

American Trucking Associations (ATA); Arlington, VA;
Mgr Customs, Immigration & Cross-Broder Ops

* Arrow; Shanghai, China; Compliance Manager;

ASML; Veldhoven, Netherlands; 
Expertise Manager Export Control;

Augusta Westland; Philadelphia, PA;
Manager, Import Export

 Systems; Kingsport, TN; 
Government Compliance Manager
; Requisition ID: 41212BR;

BAE Systems; Poznań, Poland; Export Control Officer;

* Bio-Rad Laboratories: Hercules, CA;
Regional Trade Compliance Manager – Americas
; Requisition ID: 2018-8158; kelly_demorais@bio-rad.com;
* Bio-Rad Laboratories; Hercules, CA;
Sr. Trade Compliance Specialist
; Requisition ID: 2018-8159; kelly_demorais@bio-rad.com;

Boeing; Adelaide, Brisbane, Canberra, Melbourne, Australia; 
Trade Control Specialist
; Requisition ID: 1800072289;

* Boeing; Dallas, TX; 
Global Regulatory and Compliance Specialist 4
; Requisition ID: 12795;

* Boeing; Manassas, VA; 
Export Control Manager
; Requisition ID: 1900

* Boeing; Zoushan, China; 
 Compliance Analyst
* Boeing; Zoushan, China;
Trade Compliance Manager;

Cobham; Davenport, IA; 
Export Compliance Manager

Culmen International; Alexandria, VA; 
Government Property and Export Control Specialist

* Curtiss-Wright Corporation; Bournemouth, Dorset, UK; Senior Trade Compliance Manager; Requisition ID: 3621

DynCorp International; Forth Worth, TX; 
Trade Compliance Manager
; Requisition ID: 1804484

 DynCorp International; Tampa, FL; Foreign Disclosure Officer; Requisition ID: PR1701977;

Energizer Holdings; St. Louis, MO; Trade Compliance Analyst; Kieshana Miles,kieshana.miles@energizer.com; Requisition ID: NAM00604;

Entegris; Shanghai, China; Senior Manager, ASJ Trade Compliance;

Esri; Redlands, CA; 
Export Compliance Specialist

* Esterline – Korry Electronics; Everett, WA;
Manager of Trade Compliance
; Requisition ID: 14718BR;

* Expeditors; Amsterdam, Netherlands; 
Regional Compliance SME (Subject-Matter expert) Supervisor On-site

 Expeditors; Krefeld, Germany; 
Clerk Import / Export
 Expeditors; Bedfont, United Kingdom;
Customs Brokerage Clerk

* Expeditors; Bedfont, United Kingdom; 
District Trade Compliance Manager
* Expeditors; Detroit, MI; US Export Compliance Consultant;
* Expeditors; Dublin, IE; Consultant – Customs and Trade Compliance;
* Expeditors; Dusseldorf, Germany; Clerk, Airfreight Import;

 Expeditors; Krefeld, Germany; 
Clerk, Airfreight Import
* Expeditors; Plainfield, IN; District Trade Compliance Manager;
* Expeditors; Sunnyvale, CA, USA; Customs Compliance Coordinator;
* Expeditors; Sunnyvale, CA, USA; Customs Compliance Specialist;
* Expeditors; Stockholm, SE; District Trade Compliance Manager;

Export Solutions, Inc.; San Jose, CA;
Trade Compliance Manager

* Flash Global; Sao Paolo, Brazil;
Import and Export Analyst III

* FLIR; Irving, CA; 
Sr. Manager Export Compliance;

* FLIR; Nashua, NH; 
Global Trade Compliance Analyst, Traffic
 FLIR; Billerica, MA;
Global Trade Compliance Analyst, Licensing

* FLIR; Goleta, CA; Global Trade Compliance Analyst, Traffic;  

* FLIR; Täby, Sweden; 
GTC EMEA Customs Analyst

Fortive; Irvine, CA; 
Export Control Analyst

* Full Circle Compliance; Bruchem, Netherlands;
Legal Analyst, Manager

* General Atomics; San Diego, CA;
Director, Compliance
; Requisition ID: 18549BR

* General Atomics; San Diego, CA; 
Experienced Project Manager – Compliance Management
; Requisition ID: 20913BR

General Atomics; San Diego, CA;
Government Compliance Specialist
; Requisition ID: 20593BR

* General Atomics; San Diego, CA; 
Senior Government Compliance Specialist
; Requisition ID: 20736BR

General Dynamics Information Technology; Washington D.C., DC;
Export Control Analyst

* Google; Mountain View, CA; 
Trade Specialist, Export Compliance
; sdemian@google.com;
* Harris Corporation; Van Nuys, CA; 
Trade Compliance Specialist
; Job ID: ES20182408-26963

* Harris Corporation; Melbourne, FL; Director Corporate Trade Compliance; Requisition ID: CHQ20182007-26041
* Harris Corporation; Melbourne, FL; Corporate Trade Compliance Investigations Lead; Requisition ID: CHQ20182007-26042 

* Harris Corporation; Rochester, NY; Government Compliance Shipping; Requisition ID: CS20181709-27381 
* Henderson Group Unlimited, Inc; State Dept, DDTC; Washington, DC; 
Defense Trade Control Compliance Analyst
* Henderson Group Unlimited, Inc; State Dept, DDTC; Washington, DC; 
Commodities Jurisdiction Analyst

* Hitachi Vantara; Englewood, CO, Santa Clara, CL; 
Trade Compliance Specialist

* Honeywell International Inc.; Sunnyvale, CA or Lincolnshire, IL; Sr. Import/Export Analyst; HRD32371

* iDirect; Herndon, VA;
Senior Regulatory Compliance Engineer
; Requisition ID: 2018R-4700-56

* Infineon Technologies; El Segundo, CA;
Export Compliance Specialist

* Infineon Technologies; Munich, Germany; Manager Export Control;
* Infineon Technologies; Munich, Germany; Specialist Export Control;

* Inmarsat; London, UK; Export Control Officer;

 InteliTrac Global Solutions; Herndon, VA; 
ITAR Compliance Official / Deputy Facility Security Officer

 InteliTrac Global Solutions; Herndon, VA;
ITAR Compliance Official

Intertec International; tempe, AZ; 
Export Compliance Officer;

* Johnson Controls; Boca Raton, FL; Licensing Coordinator; Requisition ID: 
* Johnson Controls; Boca Raton, FL; Licensing Coordinator; Rquisition ID: 
* Johnson Controls; Milwaukee, WI; Trade Compliance Analyst; Requisition ID: WD30047348124
* Johnson Controls; Tamaulipas, Matamoros, Mexico; Trade Compliance Specialist; Requisition ID: EB00064420180

* Kohls; Menomonee Falls, WI; Senior Manager, Customs Compliance

* Lam Research Corp.; Shanghai, China; 
Foreign Trade (FT) Analyst;

* Leonardo DRS; Cypress, CA; 
Contracts & Compliance Manager
; Requisition ID: 91594
* Leonardo DRS; Dallas, TX; 
 Contracts & Compliance Administrator
; Requisition ID: 91611
* Leonardo DRS; Dallas, TX; 
Contracts & Compliance Manager
; Requisition ID: 91608
* Leonardo DRS; Melbourne, FL; 
Senior Supply Chain Analyst – Small Business Compliance
; Requisition ID: 91669

Lighting; Amsterdam, Netherlands; 
Global Trade Compliance Officer Export Controls

* Livingston; CA; 
Import Analyst; 
Requisition ID: 60988
* Livingston; GA; 
Import Specialist; 
Requisition ID: 61165
* Livingston; IL; 
Import Specialist; 
Requisition ID: 60803

* Lockheed Martin; Bethesda, MD;
Regulatory Compliance Analyst
; Requisition ID: 449353BR

* Lockheed Martin; Forth Worth, TX;
International Trade Compliance Analyst
; Requisition ID: 447332BR

Medtronic; Minneapolis, MN;
Trade Compliance Program Manager
; Requisition ID: 18000BJW;

Microsoft; Redmond, WA; 
Senior Trade Manager, Export Control

Mitel; Ontario, CA;
Import/Export Analyst- Trade Compliance

* Muscogee International, LLC; Washington, D.C.;
DDTC Compliance Specialist II; Apply
HERE or contact their
recruiting team.

* Muscogee International, LLC; Washington, D.C.;
DDTC Policy Analyst
 or contact their 
recruiting team
* Muscogee International, LLC; Washington, D.C.; 
DDTC Records Auditor
Apply HERE or contact their recruiting team. 
* Muscogee International, LLC; Washington, D.C.; DDTC Contract AnalystApply HERE or contact their recruiting team.

* Muscogee International, LLC; Washington, D.C.; 
DDTC Service Support Desk Lead
 or contact their 
recruiting team
* Muscogee International, LLC; Washington, D.C.; 
DDTC Service Support Desk
Apply HERE or contact their recruiting team. 
* Muscogee International, LLC; Washington, D.C.; DDTC Office Support IApply HERE or contact their recruiting team.
* Muscogee International, LLC; Washington, D.C.; DDTC Office Support IIApply HERE or contact their recruiting team.

* Muscogee International, LLC; Washington, D.C.; DDTC Office Support IIIApply HERE or contact their recruiting team.

* Northrop Grumman; Baltimore, MD;
Manager 2, International Trade Compliance
; Requisition ID:
* Northrop Grumman; Linthicum, MD;
Manager Regulatory Compliance 2
; Requisition ID:
* Northrop Grumman; Orlando, FL;
International Trade Compliance Analyst 2
; Requisition ID: 18020191
* Northrop Grumman; Redondo Beach, CA;
International Trade Compliance Analyst 4
; Requisition ID: 18021390

NXP; Eindhoven, Netherlands; 
Trade Compliance Coordinator

* Office of the Director of National Intelligence; McLean, VA;
Associate General Counsel

* Oshkosh Corporation; Greenville, WI; Senior Global Trade Compliance Analyst – Licensing; ID: 

* Polaris; Minneapolis, MN;
Sr. Global Trade Compliance Specialist, Tariff Classification
; Requisition ID: 11770BR

* Raytheon; Billerica, MA;
Import Ctl&Compliance Advisor
; Requisition ID:

* Raytheon; Billerica, MA; 
Mgr I Export-Import Control
; Requisition ID: 

* Raytheon; El Segundo, CA; 
Import Control and Compliance Advisor
; APPLY Requisition ID 119247BR

* Raytheon; El Segundo, CA; Manager III, Global Trade Licensing; Requisition ID: 117235BR 
* Raytheon; El Segundo, CA; Fullerton, CA; Goleta, CA; Aberdeen, MD; Plano, TX; McKinney, TX; Principal Analyst, Global Trade Licensing; Requisition ID: 117247BR

* Raytheon; Tucson, AZ; 
Export Licensing And Compliance Specialist
; Requisition ID: 114936BR

* Raytheon; Tucson, AZ; 
Import Ctl&Compliance Advisor
; Requisition ID: 

* Raytheon; Woburn, MA; Supply Chain Compliance Advisor; Requisition ID:

 SABIC; Houston TX; 
Senior Analyst, Trade Compliance
; Requisition ID: 8411BR

* The Safariland Group; Jacksonville, FL; Sr. Export Compliance Specialist;

* Sierra Nevada Corporation; Denver, CO; 
International Trade Compliance Analyst III
; Requisition ID: R0006075  

Spirent; Calabasas, CA;
Global Trade Compliance Specialist
; Requisition ID: 4088;

Supermicro; San Jose, CA; 
Import/Export Specialist;

* Textron Aviation; Wichita, KS;
Trade Compliance Analyst
; Requisition ID: 269127

* Thales; Cambridge, UK; 
Trade Compliance Support Officer
; Krista Helvey; Requisition ID R0034813;

* Thales; Cambridge, UK; 
Trade Compliance Officer
; Krista Helvey; Requisition ID R0034820;

TLR; San Fransisco, CA;
Import CSR
; Requisition ID: 1040

Tyssenkrupp; Essen, Germany;
Head of Export Control and Customs (ECC)

United Technologies – Pratt & Whitney; East Hartford, CT; ITC Site Lead, Hot Section Module Center; Requisition ID: 71012BR
United Technologies – Pratt & Whitney; East Hartford, CT; Senior Export Operations Associate; Requisition ID: 71010BR

* United Technologies – Pratt & Whitney; East Hartford, CT; 
Senior Manager, Digital Systems & Integration
; Requisition ID: 70425BR

United Technologies – Pratt & Whitney; East Hartford, CT; 
Senior Program Manager, ITC Operations
; Requisition ID: 71195BR

University of South Florida; Tampa, FL; Export Control Officer;

Vigilant; Budapest, Hungary; Jr. Compliance Analyst;

* Vigilant; Negotiable Location, USA;
Global Trade Compliance Analyst

* Virgin Galactic; Las Cruces, NM; Export Compliance Officer; Requisition ID: 2018-3558

* VT iDirect; Herndon VA;
Manager, Global Logistics
; Requisition ID: 2018R-3120-1;

* World Wide Technology; Edwardsville, IL;
International Trade Compliance Specialist

* Xilinx; San Jose, CA;
Trade Compliance Specialist
; Requisition ID: 155901

XPO Logistics; Amsterdam, Netherlands; Compliance Officer;

* Xylem, Inc; Morton Grove, IL; 
Trade Compliance Specialist 

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


Franz Liszt (22 Oct 1811 – 31 Jul 1886; was a prolific 19th-century Hungarian composer, virtuoso pianist, conductor, music teacher, arranger, organist, philanthropist, author, nationalist and a Franciscan tertiary during the Romantic era.)
“Beware of missing chances; otherwise it may be altogether too late someday.” 
Monday is pun day:  
* A criminal’s best asset is his lie ability.
* The floor was dusty because it was suffering from sweep deprivation.
* Q. Why did the lumberjack lose his job?
   A. He axed too many questions.

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

. 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.
: 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. 
: 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  


  – 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 

: 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

: 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 

: 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
  – 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.  
, 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: 22 Oct 2018: Harmonized System Update 1818

containing 1,544 ABI records and 286 harmonized tariff records.

  – HTS codes for AES are available 
  – HTS codes that are not valid for AES are available 
  – 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
. BAFTR subscribers receive a $25 discount on subscriptions to the BITAR, please
contact us
to receive your discount code.

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

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 

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


* 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.

* RIGHTS & RESTRICTIONS: This email contains no proprietary, classified, or export-controlled information. All items are obtained from public sources or are published with permission of private contributors, and may be freely circulated without further permission, provided attribution is given to “The Export/Import Daily Bugle of (date)”. Any further use of contributors’ material, however, must comply with applicable copyright laws.  If you would to submit material for inclusion in the The Export/Import Daily Update (“Daily Bugle”), please find instructions here.

* CAVEAT: The contents 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.

* SUBSCRIPTIONS: Subscriptions are free.  Subscribe by completing the request form on the Full Circle Compliance website

* BACK ISSUES: An archive of Daily Bugle publications from 2005 to present is available HERE.

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