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18-1102 Friday “Daily Bugle”

18-1102 Friday “Daily Bugle”

Friday, 2 November 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. U.S. President Continues National Emergency with Respect to Sudan
  2. White House Releases Executive Order 13850, “Blocking Property of Additional Persons Contributing to the Situation in Venezuela”
  3. Commerce/BIS Makes Correction to 24 Oct EAR Amendment Concerning Supplement No. 1 to Part 774, Category 3 
  1. Items Scheduled for Publication in Future Federal Register Editions 
  2. Commerce/BIS: (No new postings.)
  3. DHS/CBP Releases ACE Entry Summary Business Document Version 9.5 (External), Updates Cargo Release CATAIR
  4. State/DDTC: (No new postings.)
  5. Treasury/OFAC Announces Amendment to Iranian Transactions and Sanctions Regulations
  6. Treasury/OFAC Publishes 2 New Venezuela-Related FAQs
  7. White House Releases Fact Sheet Concerning Reimposition of Sanctions Lifted Under “Unacceptable Iran Deal”
  1. The Helsinki Times: “Leaked EU Documents Show Finland Leading Efforts to Undermine Human Rights Standards”
  2. The Middle East Monitor: “Israel Eases Arms Export Rules For ‘Unclassified Weapons'”
  3. Nikkei Asian Review: “Chinese Chipmakers Brace for Next U.S. Crackdown”
  4. Reuters: “U.S. Allows Eight Importers to Keep Buying Iran Oil for Now”
  1. M. Montgomery: “Brokers Workhorses of Tariff Changes”
  2. P. Jeydel: “U.S. Sanctions Venezuelan Gold Sector”
  3. WorldECR: “Warning to Business as JCPOA Wind-Down Period Comes to an End”
  1. FCC Presents “Designing an Internal Compliance Program for Export Controls & Sanctions”, 5 Feb 2019 in Bruchem, the Netherlands
  2. List of Approaching Events: 4 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 (2 Nov 2018), FACR/OFAC (29 Jun 2018), FTR (24 Apr 2018), HTSUS (1 Nov 2018), ITAR (4 Oct 2018) 
  3. Weekly Highlights of the Daily Bugle Top Stories 

EXIMITEMS FROM TODAY’S FEDERAL REGISTER

EXIM_a1

(Source: 
Federal Register, 2 Nov 2018.) 
 
83 FR 55239-55240: Continuation of the National Emergency with Respect to Sudan 
 
On November 3, 1997, by Executive Order 13067, the President declared a national emergency with respect to Sudan pursuant to the International Emergency Economic Powers Act (50 U.S.C. 1701-1706) and took related steps to deal with the unusual and extraordinary threat to the national security and foreign policy of the United States posed by the actions and policies of the Government of Sudan. On April 26, 2006, by Executive Order 13400, the President determined that the conflict in Sudan’s Darfur region posed an unusual and extraordinary threat to the national security and foreign policy of the United States, expanded the scope of the national emergency declared in Executive Order 13067, and ordered the blocking of property of certain persons connected to the Darfur region. On October 13, 2006, by Executive Order 13412, the President took additional steps with respect to the national emergency declared in Executive Order 13067 and expanded in Executive Order 13400. In Executive Order 13412, the President also took steps to implement the Darfur Peace and Accountability Act of 2006 (Public Law 109-344).
 
On January 13, 2017, by Executive Order 13761, the President found that positive efforts by the Government of Sudan between July 2016 and January 2017 improved certain conditions that Executive Orders 13067 and 13412 were intended to address. Given these developments, and in order to encour- age the Government of Sudan to sustain and enhance these efforts, section 1 of Executive Order 13761 provided that sections 1 and 2 of Executive Order 13067 and the entirety of Executive Order 13412 would be revoked as of July 12, 2017, provided that the criteria in section 12(b) of Executive Order 13761 had been met. 
 
On July 11, 2017, by Executive Order 13804, I amended Executive Order 13761, extending until October 12, 2017, the effective date in section 1 of Executive Order 13761. On October 12, 2017, pursuant to Executive Order 13761, as amended by Executive Order 13804, sections 1 and 2 of Executive Order 13067 and the entirety of Executive Order 13412 were revoked. 
Despite recent positive developments, the crisis constituted by the actions and policies of the Government of Sudan that led to the declaration of a national emergency in Executive Order 13067 of November 3, 1997; the expansion of that emergency in Executive Order 13400 of April 26, 2006; and with respect to which additional steps were taken in Executive Order 13412 of October 13, 2006, Executive Order 13761 of January 13, 2017, and Executive Order 13804 of July 11, 2017, has not been resolved. These actions and policies continue to pose an unusual and extraordinary threat to the national security and foreign policy of the United States. I have, therefore, determined that it is necessary to continue the national emergency declared in Executive Order 13067, as expanded by Executive Order 13400, with respect to Sudan. 
 
This notice shall be published in the 
Federal Register and transmitted to the Congress. 
 
  [Presidential Signature.]
 
THE WHITE HOUSE,
October 31, 2018

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EXIM_2

2. 
White House Releases Executive Order 13850, “Blocking Property of Additional Persons Contributing to the Situation in Venezuela”
(Source: 
Federal Register, 2 Nov 2018.) 
 
83 FR 55243-55245: Executive Order 13850 of November 1, 2018: Blocking Property of Additional Persons Contributing to the Situation in Venezuela
 
By the authority vested in me as President by the Constitution and the laws of the United States of America, including the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) (IEEPA), the National Emergencies Act (50 U.S.C. 1601 et seq.), section 212(f) of the Immigration and Nationality Act of 1952 (8 U.S.C. 1182(f)) (INA), the Venezuela Defense of Human Rights and Civil Society Act of 2014 (Public Law 113-278), as amended (the Venezuelan Defense of Human Rights Act), and section 301 of title 3, United States Code,
 
I, DONALD J. TRUMP, President of the United States of America, in order to take additional steps with respect to the national emergency declared in Executive Order 13692 of March 8, 2015, and relied upon for additional steps taken in Executive Order 13808 of August 24, 2017, Executive Order 13827 of March 19, 2018, and Executive Order 13835 of May 21, 2018, particularly in light of actions by the Maduro regime and associated persons to plunder Venezuela’s wealth for their own corrupt purposes, degrade Venezuela’s infrastructure and natural environment through economic mismanagement and confiscatory mining and industrial practices, and catalyze a regional migration crisis by neglecting the basic needs of the Venezuelan people, hereby order as follows:
 
Section 1. 
(a) All property and interests in property 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 of the following persons are blocked and may not be transferred, paid, exported, withdrawn, or otherwise dealt in: any person determined by the Secretary of the Treasury, in consultation with the Secretary of State:
    (i) to operate in the gold sector of the Venezuelan economy or in any other sector of the Venezuelan economy as may be determined by the Secretary of the Treasury, in consultation with the Secretary of State;
    (ii) to be responsible for or complicit in, or to have directly or indirectly engaged in, any transaction or series of transactions involving deceptive practices or corruption and the Government of Venezuela or projects or programs administered by the Government of Venezuela, or to be an immediate adult family member of such a person;
    (iii) to have materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, any activity or transaction described in subsection (a)(ii) of this section, or any person whose property and interests in property are blocked pursuant to this order; or
    (iv) to be owned or controlled by, or to have acted or purported to act for or on behalf of, directly or indirectly, any person whose property and interests in property are blocked pursuant to this order.
  (b) The prohibitions in subsection (a) of this section apply except to the extent provided by statutes, or in regulations, orders, directives, or licenses that may be issued pursuant to this order, and notwithstanding any contract entered into or any license or permit granted prior to the date of this order.
 
Sec. 2. The unrestricted immigrant and nonimmigrant entry into the United States of aliens determined to meet one or more of the criteria in subsection 1(a) of this order would be detrimental to the interests of the United States, and the entry of such persons into the United States, as immigrants or nonimmigrants, is therefore hereby suspended. Such persons shall be treated as persons 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).
 
Sec. 3. I hereby determine that the making of donations of the type of articles specified in section 203(b)(2) of IEEPA (50 U.S.C. 1702(b)(2)) by, to, or for the benefit of any person whose property and interests in property are blocked pursuant to section 1 of this order would seriously impair my ability to deal with the national emergency declared in Executive Order 13692, and I hereby prohibit such donations as provided by section 1 of this order.
 
Sec. 4. The prohibitions in section 1 of this order include:
  (a) the making of any contribution or provision of funds, goods, or services by, to, or for the benefit of any person whose property and interests in property are blocked pursuant to this order; and
  (b) the receipt of any contribution or provision of funds, goods, or services from any such person.
 
Sec. 5. (a) Any transaction that evades or avoids, has the purpose of evading or avoiding, causes a violation of, or attempts to violate any of the prohibitions set forth in this order is prohibited.
  (b) Any conspiracy formed to violate any of the prohibitions set forth in this order is prohibited.
 
Sec. 6. For the purposes of this order:
  (a) the term “person” means an individual or entity;
  (b) the term “entity” means a partnership, association, trust, joint venture, corporation, group, subgroup, or other organization;
  (c) the term “United States person” means any United States citizen, lawful permanent resident, entity organized under the laws of the United States or any jurisdiction within the United States (including foreign branches), or any person in the United States;
  (d) the term “Government of Venezuela” means the Government of Venezuela, any political subdivision, agency, or instrumentality thereof, including the Central Bank of Venezuela, and any person owned or controlled by, or acting for or on behalf of, the Government of Venezuela.
 
Sec. 7. For those persons whose property and interests in property are blocked pursuant to this order who might have a constitutional presence in the United States, I find that because of the ability to transfer funds or other assets instantaneously, prior notice to such persons or to the Government of Venezuela of measures to be taken pursuant to this order would render those measures ineffectual. I therefore determine that for these measures to be effective in addressing the national emergency declared in Executive Order 13692, there need be no prior notice of a listing or determination made pursuant to section 1 of this order.
 
Sec. 8. The Secretary of the Treasury, in consultation with the Secretary of State, is hereby authorized to take such actions, including promulgating rules and regulations, and to employ all powers granted to the President by IEEPA as may be necessary to implement this order. The Secretary of the Treasury may, consistent with applicable law, redelegate any of these functions within the Department of the Treasury. All agencies of the United States Government shall take all appropriate measures within their authority to carry out the provisions of this order.
 
Sec. 9. The Secretary of State is hereby authorized to take such actions, including the promulgation of rules and regulations, and to employ all powers granted to the President by IEEPA, the INA, and section 5 of the Venezuela Defense of Human Rights Act, including the authorities set forth in sections 5(b)(1)(B), 5(c), and 5(d) of that Act, as may be necessary to carry out section 2 of this order and the relevant provisions of section 5 of that Act. The Secretary of State may, consistent with applicable law, redelegate any of these functions within the Department of State.
 
Sec. 10. (a) Nothing in this order shall be construed to impair or otherwise affect:
    (i) the authority granted by law to an executive department or agency, or the head thereof; or
    (ii) the functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals.
  (b) This order shall be implemented consistent with applicable law and subject to the availability of appropriations.
  (c) This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.
 
  [Presidential Signature.]
 
THE WHITE HOUSE,
November 1, 2018

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EXIM_a2

3. 
Commerce/BIS Makes Correction to 24 Oct EAR Amendment Concerning Supplement No. 1 to Part 774, Category 3

(Source: 
Federal Register, 2 Nov 2018.) 
 
83 FR 55099: Wassenaar Arrangement 2017 Plenary Agreements Implementation
 
Correction
 
In rule 2018-22163 beginning on page 53742 in the issue of
Wednesday, October 24, 2018 make the following correction:
 
Supplement No. 1 to Part 774, Category 3 [Corrected]
  • On page 53761, in the second column, the “CIV” paragraph for entity 3A001 was inadvertently omitted. Under line twenty-six, it should read, “CIV: Yes for 3A001.a.3, a.7, and a.11.”

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OGSOTHER GOVERNMENT SOURCES

OGS_a14
. Items Scheduled for Publication in Future Federal Register Editions
 

(Source:
Federal Register)
* Treasury/OFAC;
  – RULES; Iranian Transactions and Sanctions Regulations; and
  – NOTICES; Blocking or Unblocking of Persons and Properties 
[Pub. Dates: 5 Nov 2018.]

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OGS_a03
6
DHS/CBP Releases ACE Entry Summary Business Document Version 9.5 (External), Updates Cargo Release CATAIR

(Source: 
CSMS# 18-000650

CSMS# 18-000649, 2 Nov 2018.) 
 
ACE Entry Summary Business Process Document Version 9.5 (External) Released
 
A revised version of the External ACE Entry Summary Business Process document has been posted on ACE Central and can be accessed by going 
here.
 
This version of the document was released Monday October 29, 2018, and includes the following updates:
 
  – Section 10 (Temporary Importation Under Bond Entries) – Added information about how to locate Center teams in subsection 10.2 and revised the language in subsection 10.3 that explains how to request an extension on a Temporary Importation Under Bond entry.
  – Section 11 (Post Summary Corrections) – Completely revised the language in subsection 11.2.2 and 11.2.4 to help clarify what entry types are eligible for post summary corrections.
  – Section 15 (Reconciliation) – Broke the section up into subsections and added a new subsection, 15.3, Reconciliation guides and information.
  – Section 19 (ACE Reports) – Added subsections for the ES-008, ES-010, ES-011, ES-012, ES-013, ES-503, ES-504, ES-505, ES-506, and ES-507 reports.
  – Section 20 (DCMA) – Revised the entire section’s language to make it clearer and more concise.
  – Section 25 (Informal Entries) – Added a section that explains how to process informal entries.
  – Section 26 (HTS Reporting For Multiple Classifications) – Added a section that explains how multiple classifications should be reported. Please note that this section’s content is identical to the information provided in CSMS 18-000624.
 
All ACE Entry Summary Business Process document related questions, comments, and suggestions should be emailed to 
 
ACE Cargo Release CATAIR Document
 
DHS/CBP updated ACE Cargo Release CATAIR document, which is now available on 
www.cbp.gov. Find more information 
here.

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

(Source: 
State/DDTC)

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OGS_a05
8
Treasury/OFAC Announces Amendment to Iranian Transactions and Sanctions Regulations 

(Source: 
Treasury/OFAC, 2 Nov 2018.)
 
The Department of the Treasury’s Office of Foreign Assets Control (OFAC) is issuing an 
amendment to the Iranian Transactions and Sanctions Regulations, 31 C.F.R. part 560 (ITSR), in furtherance of the President’s May 8, 2018 decision to cease the United States’ participation in the Joint Comprehensive Plan of Action.  
 
This regulatory amendment is currently available for public inspection with the Federal Register and will be effective upon publication in the Federal Register on Monday, November 5, 2018.  OFAC plans to issue additional guidance related to the snapback of Iran sanctions on that day. 

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OGS_6
9
Treasury/OFAC Publishes 2 New Venezuela-Related FAQs 

(Source: 
Treasury/OFAC, 1 Nov 2018.) 
 
Today (1 Nov), the President signed an Executive Order 
Blocking Property of Additional Persons Contributing to the Situation in Venezuela. The Department of the Treasury’s Office of Foreign Assets Control (OFAC) is publishing 
two frequently asked questions in connection with the issuance of the Executive Order.

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OGS_7
10
White House Releases Fact Sheet Concerning Reimposition of Sanctions Lifted Under “Unacceptable Iran Deal”

(Source: 
The White House, 2 Nov 2018.) [Excerpts.] 
 
The White House published the following fact sheet on its website:
 
President Donald J. Trump is reimposing the toughest sanctions ever on Iran, targeting many of the corrupt regime’s critical sectors.
  – On November 5, 2018, all United States sanctions that were lifted under the disastrous Iran nuclear deal will be fully reimposed.
  – Together with the unprecedented sanctions actions taken by the Trump Administration, this will be the toughest sanctions regime ever imposed on Iran.
  – Sanctions will target critical sectors of Iran’s economy, such as its energy, shipping, shipbuilding, and financial sectors.
  – Over 700 individuals, entities, vessels, and aircraft are going back onto our sanctions list, including major Iranian banks, oil exporters, and shipping companies.
  – The sanctions also target transactions with the Central Bank of Iran and designated Iranian financial institutions.
  – Sales of food, agricultural commodities, medicine, and medical devices to Iran have long been-and remain-exempt from our sanctions.
  – Reimposing sanctions will cut off revenues the regime uses to bankroll terrorist groups, foment global instability, fund nuclear and ballistic missile programs, and enrich its leaders. … 
 
[Editor’s Note: to read the entire White House fact sheet, click on the source link below the item title.]

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NWSNEWS

The Helsinki Times: “Leaked EU Documents Show Finland Leading Efforts to Undermine Human Rights Standards”

(Source: 
The Helsinki Times, 2 Nov 2018.) [Excerpts.] 
 
NWS_a0111.
Recently-leaked internal documents from the European Commission reveal that Finland, Sweden, and the UK are at the heart of an opposition to proposed legislation which would improve human rights safeguards across the EU. 
 
The proposals, outlined here, would put in place new limits to prevent the export of surveillance technology to regimes and entities accused of human rights abuses. The proposals were first launched in 2016, drawing widespread praise from human rights advocacy groups.
 
While the EU publicly expressed unanimous support for such measures, the documents reveal that in private, the Finnish government has helped lead the charge to prevent any improvement to existing safeguards. 
 
EU companies have in the past been implicated in selling technology used to commit human rights abuses in China, Syria, Russia, Israel, and Egypt, among others. It was therefore recognized that measures should be put in place to stop EU countries exporting such “dual-use technology” … to authoritarian regimes. … 

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NWS_a212. 
The Middle East Monitor: “Israel Eases Arms Export Rules For ‘Unclassified Weapons'”

(Source: 
The Middle East Monitor, 1 Nov 2018.) [Excerpts.]
 
Israeli defense companies “will henceforth be allowed to negotiate with almost any country in the world for a possible sale of weapons systems defined as unclassified without obtaining special licenses in advance from the Israeli Defense Export Control Agency (DECA),” reported Globes.
 
However, “despite the exemption from marketing licenses, no binding agreements can be signed with customers before DECA approves the deal.”
 
Globes noted allegations that Israeli weaponry is “being exported clandestinely, primarily through arms traders, to countries that violate human rights and were under a UN arms embargo”, allegations “stated in a number of High Court of Justice petitions against the Ministry of Defense, which refuses to disclose the list of countries to which it allows weapons exports”.
 
According to new figures reported by DECA, “the list of defense products whose export is subject to state supervision has been changed”, with “exporters of thousands of defense products that previously required a marketing license will now be exempt from obtaining such a license”. … 

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NWS_a313. 
Nikkei Asian Review: “Chinese Chipmakers Brace for Next U.S. Crackdown”

(Source: 
Nikkei Asian Review, 2 Nov 2018.) [Excerpts.] 
 
Top Tech Companies Vulnerable to High Political Risk
 
Washington’s battle against Beijing’s tech ambitions stepped up a gear this week with the decision to indict a Chinese and Taiwanese company for industrial espionage. But few involved in China’s drive to create its own semiconductor industry — critical to realizing its ambition to dominate advanced technologies — believe the crackdown will stop there.
 
Dozens of Chinese chip companies are braced for further action by the U.S. Commerce Department, which on Tuesday banned American companies from trading with Fujian Jinhua Integrated Circuit Co. Fujian Jinhua is a little-known dynamic random access memory (DRAM) chipmaker that has been accused of stealing trade secrets from U.S. rival, Micron Technology. … 
 
  “The U.S. is using the Fujian Jinhua case to demonstrate its ability to kill any of these semiconductor projects or hit top tech companies badly in one day,” said Roger Sheng, a Shanghai-based analyst at research company Gartner. … 

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NWS_a414. 
Reuters: “U.S. Allows Eight Importers to Keep Buying Iran Oil for Now”

(Source: 
Reuters, 2 Nov 2018.) [Excerpts.] 
 
The United States said on Friday it will temporarily allow eight importers to keep buying Iranian oil when it reimposes sanctions on Monday to try to force Iran to curb its nuclear, missile and regional activities.
 
U.S. Secretary of State Mike Pompeo, who announced the decision, did not name the eight, which he referred to as “jurisdictions,” a term that might include importers such as Taiwan which the United States does not regard as a country.
 
However, he said that the European Union as a whole, which has 28 members, would not receive a waiver.
 
Turkish Energy Minister Fatih Donmez said Turkey had been told it would be granted a waiver. India, Iraq and South Korea were also on the list, said a source familiar with the matter who spoke on condition of anonymity. Under U.S. law, such exceptions can only be granted for up to 180 days.
 
U.S. Treasury Secretary Steven Mnuchin also said Washington had told the Brussels-based SWIFT financial messaging service that it was expected to disconnect all Iranian financial institutions that the United States plans to blacklist as of Monday. He declined to name the targeted institutions. 
 
The restoration of sanctions is part of a wider effort by U.S. President Donald Trump to force Iran to curb its nuclear and missile programs as well as its support for proxy forces in Yemen, Syria, Lebanon and other parts of the Middle East.
 
Trump set in motion the resumption of sanctions on May 8, when he announced U.S. withdrawal from a 2015 deal between Iran and world powers under which Tehran had agreed to curtail its nuclear program in return for relief from sanctions. … 

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COMMCOMMENTARY

COM_1
15. 
M. Montgomery: “Brokers Workhorses of Tariff Changes”

(Source: 
American Shipper, 1 Nov 2018.) [Excerpts.] 
 
* Author: Megan Montgomery, executive vice president of the National Customs Brokers & Forwarders Association of America.
 
For all those in trade who’ve always wished for their 15 minutes of fame, I think we can safely say we’ve hit that mark. When family members start asking questions about country of origin and tariff shifts at the dinner table, trade has officially made its prime time debut. And yet, with all the national nightly news coverage of the tariffs, the role of the broker is still under-explored. As our industry doesn’t actually bear responsibility for the payment of these tariffs, our role doesn’t usually rise to the limelight, but it does deserve some credit for the role we play in keeping trade moving during these turbulent trading times.

Customs brokers and freight forwarders exist to facilitate trade. We serve our clients and the national security interests in a variety of roles every day. … 
 
[Editor’s Note: due to copyright restrictions, we are not authorized to include the entire article. Click on the source link below the item title to read the entire article.]

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COM_2
16. 
P. Jeydel: “U.S. Sanctions Venezuelan Gold Sector”

(Source: 
Steptoe International Compliance Blog, 1 Nov 2018.) 
 
* Author: Peter Jeydel, Esq., Esq., 
pjeydel@steptoe.com. Steptoe & Johnson LLP.
 
Today (1 Nov) the President issued a new 
Executive Order targeting Venezuela, which is noteworthy in three respects: 
 
  (1) It shows the US government wants to continue to increase the pressure on the Maduro regime through sanctions, but is continuing to act incrementally rather than imposing more sweeping restrictions that had been rumored in the past to be under consideration, such as broader oil sector sanctions. 
  (2) It may have a significant impact on any companies dealing in the Venezuelan gold sector or dealing in gold sourced from Venezuela.  
Press reports indicate that a significant portion of Venezuelan gold is exported to refiners in Turkey.  OFAC issued 
Frequently Asked Questions to provide additional guidance to those operating in these areas.
  (3) It authorizes the Treasury and State Departments to designate additional sectors of the Venezuelan economy for future sanctions, an authority similar to that which exists under the current Russia sanctions program.  
 
No sanctions designations of individuals or entities were announced concurrent with the publication of this Executive Order, so for the time being this remains simply a framework for potential future sanctions.

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COM_3
17. 
WorldECR: “Warning to Business as JCPOA Wind-Down Period Comes to an End”

(Source: 
WorldECR, 1 Nov 2018.) 
 
Readers are alerted that 4 November marks the end of a 180-day wind-down period under which companies had the chance to phase out their activities in Iran before the re-imposition of the remaining US sanctions lifted under the Joint Comprehensive Plan of Action (‘JCPOA’) agreed with Iran by the permanent members of the Security Council, and Germany in July 2015.
 
A slew of sanctions has already been re-imposed from August.
 
According to US State Department FAQs, the sanctions which will take effect from 4 November onwards include:
 
  – “Sanctions on Iran’s port operators, and shipping and shipbuilding sectors, including on the Islamic Republic of Iran Shipping Lines (IRISL), South Shipping Line Iran, or their affiliates;
  – Sanctions on petroleum-related transactions with, among others, the National Iranian Oil Company (NIOC), Naftiran Intertrade Company (NICO), and National Iranian Tanker Company (NITC), including the purchase of petroleum, petroleum products, or petrochemical products from Iran; Issued on May 8, 2018 Last Updated on August 6, 2018;
  – Sanctions on transactions by foreign financial institutions with the Central Bank of Iran and designated Iranian financial institutions under Section 1245 of the National Defense Authorization Act for Fiscal Year 2012 (NDAA);
  – Sanctions on the provision of specialized financial messaging services to the Central Bank of Iran and Iranian financial institutions described in Section 104(c)(2)(E)(ii) of the Comprehensive Iran Sanctions and Divestment Act of 2010 (CISADA);
  – Sanctions on the provision of underwriting services, insurance, or reinsurance; and
  – Sanctions on Iran’s energy sector.”
 
The U.S. government is also revoking authorization “for U.S.-owned or -controlled foreign entities to wind down certain activities with the Government of Iran or persons subject to the jurisdiction of the Government of Iran that were previously authorized pursuant to General License H.”
 
Secretary of State, Mike Pompeo has outlined 12 “demands” of Iran – including that it should close its heavy water reactor, end support for terror groups in the Middle East, and end support for Houthi groups in Yemen – which he says must be met before any new deal is agreed.
 
Earlier this year, the State Department convened an Iran Action Group, which has authored a report, “Outlaw Regime”, that describes the “scope of Iran’s destructive behavior at home and abroad”, and why “the Iran deal was proving to be a failed strategic bet that fell short of protecting the American people or our allies from the potential of an Iranian nuclear weapon.”
 
  – See: 
here and 
here.

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TEEX/IM TRAINING EVENTS & CONFERENCES

TE_a2
18. 
FCC Presents “Designing an Internal Compliance Program for Export Controls & Sanctions”, 5 Feb 2019 in Bruchem, the Netherlands
(Source: Full Circle Compliance, events@fullcirclecompliance.eu.)
 
The next Full Circle Compliance (FCC) academy course is specifically designed for beginning compliance professionals who aim to enhance their organization’s compliance efforts.  The course will cover multiple topics and tackle various questions, including but not limited to:
 
  – Setting the Scene: ensuring compliance in the export control and sanctions arena
  – What is expected from your organization? A closer look at the frameworks and guidelines from U.S. and European government agencies (incl. State/DDTC, Commerce/BIS, Treasury/OFAC, European Union, The Netherlands, and Germany) 
  – Key elements of an Internal Compliance Program
  – Strategic benefits of an Internal Compliance Program
  – Best practice tips for enhancing your 
compliance activities
  – Compliance Toolkit: internal controls samples (policies, procedures, instructions, checklists)
 
* What: Designing an Internal Compliance Program for Export Controls & Sanctions 
* When: Tuesday, 5 Feb 2019, 9.00 AM – 4.30 PM 
* Where: Landgoed Groenhoven, Bruchem, the Netherlands
* Sponsor: Full Circle Compliance (FCC)

* Instructors: Drs. Ghislaine C.Y. Gillessen RA, Marco F.N. Crombach MSc
 

* Information & Registration: via the event page, via
events@fullcirclecompliance.eu or call +31 (0)23 – 844 – 9046.
 

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TE_a3
19. 
List of Approaching Events: 4 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

 
 



* Nov 6: Detroit, MI; “Classification: How to Classify Parts“; Global Trade Academy

* 
Nov 6: London, UK; “
Breakfast Seminar: U.S. Iran Sanctions
; Peters & Peters

* 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: Westborough, MA: “
Tariff Management: Rethinking Your Supply Chain for Today’s International Trade Climate
“; 
Massachusetts Export Center

* 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 9; Grand Rapids, MI; “Export Controls: ITAR & EAR Compliance Training“; Michigan Economic Development Corporation

* 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: Washington D.C.; “
Emerging Technology Meets National Security
“; National Venture Capital Association

* 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 20: Singapore; “
The WorldECR Export controls And Sanctions Forum 2018
“; WorldECR


Nov 20: Varese, Italy; “
Dual Use: aggiornamenti 2018
“; Camera di Comercio di Varese;

* 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 22: Hong Kong; “
The WorldECR Export controls And Sanctions Forum 2018
“; WorldECR

* Nov 27: Houston, TX; “Duty Drawback Specialist – Certification“; Global Trade Academy

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

;



Brussels Diplomatic Academy

* 
Nov 27 – 30: Washington, D.C.; “
35th International Conference on the Foreign Corrupt Practices Act
“; American Conference Institute
* 
Nov 29: Washington, D.C.; “
Other Transaction Authority Agreements: An Introduction
“; Public Contracting Institute

* 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 6: Washington D.C.; “
Other Transaction Authority Agreements: Key Terms and Compliance Obligations
“; Public Contracting Institute
* 
Dec 7: Boston, MA: “
Export Expo
“; 
Massachusetts Export Center

*
Dec 11: York, PA; 
International Traffic in Arms Regulations Seminar
; World Trade Center Harrisburg

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

* 
Dec 13: Washington, D.C.; “
Other Transaction Authority Agreements: Accelerators, Consortia, and Recent Developments
“; Public Contracting Institute

* 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: San Diego, CA; “ITAR Defense Trade Controls / EAR Export Controls Seminar”; ECTI; 540-433-3977

Jan 29: Rotterdam, The Netherlands; “
Awareness training Export Control, Dual-use en Sancties
“; FENEX

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

* 
Feb 5; Bruchem, the Netherlands; “Designing an Internal Compliance Program for Export Controls & Sanctions“; Full Circle Compliance 

* 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 


 
  
 
 

* Nov 7: Webinar; “
Export Compliance Toolkit: Checklists and Workflows
“; ECTI

Nov 13: Webinar; “A Deep Dive into AES“; ECTI;
* Nov 14: Webinar; “
An Export Commodity Classification Number – ECCN
“; Foreign Trade Association


Nov 29: Webinar;
Conflicts Between EU and US Export Rules
“; ECTI;

* 
Nov 29: Webinar; “
Other Transaction Authority Agreements: An Introduction
“; Public Contracting Institute

* 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 6: Webinar; “
Other Transaction Authority Agreements: Key Terms and Compliance Obligations
“; Public Contracting Institute
* Dec 11: Webinar; “
Incoterms 2010: Terms of Sale
“; International Business Training 

* 
Dec 13: Webinar; “
Other Transaction Authority Agreements: Accelerators, Consortia, and Recent Developments
“; Public Contracting Institute

* Dec 20: Webinar; “International Logistics
“; International Business Training 

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

ENEDITOR’S NOTES

EN_a120
. Bartlett’s Unfamiliar Quotations

(Source: Editor)

Daniel Boone (2 Nov 1734 – 26 Sep 1820; was an American pioneer, explorer, woodsman, and frontiersman, whose frontier exploits made him one of the first folk heroes of the United States. Boone is most famous for his exploration and settlement of what is now Kentucky.)

  
– “All you need for happiness is a good gun, a good horse, and a good wife.”
 

Marie Antoinette (born Maria Antonia Josepha Johanna; 2 Nov 1755 – 16 Oct 1793; was the last Queen of France before the French Revolution. She became Dauphine of France in May 1770 at age 14 upon her marriage to Louis-Auguste, heir apparent to the French throne. On 10 May 1774, her husband ascended the throne as Louis XVI and she assumed the title Queen of France and Navarre, which she held until September 1791, when she became Queen of the French as the French Revolution proceeded, a title that she held until 21 September 1792, when she was convicted by the Revolutionary Tribunal of high treason and executed by guillotine.)

  – “There is nothing new except what has been forgotten.”
 
Friday funnies: 
 
* Q: What do a dog and a phone have in common?
   A: They both have collar ID.
* Q: What did the axe murderer say to the judge?
   A: “It was an axe-ident.”
 
* An eager young man entered his prospective boss’s office for an interview.  The boss said, “One thing our company cares a lot about is cleanliness.  Did you wipe your shoes on the doormat before coming in?”  “Oh, yes, sir!” the young man replied.” The boss replied, “And one thing we insist on from our employees is honesty. There is no doormat outside!”

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

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: 2 Nov 2018: 
83 FR 55099: Wassenaar Arrangement 2017 Plenary Agreements Implementation [Correction to 24 Oct EAR Amendment Concerning Supplement No. 1 to Part 774, Category 3.]

 

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: 1 Nov 2018: 
Harmonized System Update 1809
,
containing 1,200 ABI records and 245 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.

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

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

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

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

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