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18-1105 Monday “Daily Bugle”

18-1105 Monday “Daily Bugle”

Monday, 5 November 2018

TOP
The Daily Bugle is a free daily newsletter from Full Circle Compliance, containing changes to export/import regulations (ATF, DOE/NRC, Customs, NISPOM, EAR, FACR/OFAC, FAR/DFARS, FTR/AES, HTSUS, and ITAR), plus news and events.  Subscribe 
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  1. Treasury/OFAC Amends Iranian Transactions and Sanctions Regulations to Reinstate Remaining Nuclear-Related Primary and Secondary Sanctions Against Iran  
  1. Items Scheduled for Publication in Future Federal Register Editions
  2. Commerce/BIS: (No new postings.)
  3. State/DDTC: (No new postings.)
  4. Treasury/OFAC Publishes Update Related to Full Reimposition of Sanctions on Iran
  5. AmCham EU Releases Position Paper Regarding Recast of the EU Dual-Use Regulations
  6. EU Publishes Latest Version of the Combined Nomenclature (CN)
  7. Hong Kong TID Releases Circular Concerning Chemical Weapons (Convention) Ordinance, Cap. 578
  1. Bloomberg: “Multinationals’ Dreams of Hefty Iran Contracts Have Withered”
  2. Dutch News: “Dutch Companies Have 94 Permits to Supply “Dual Use” Products to Saudi Arabia”
  3. Fifth Domain: “A New DoD Task Force Addresses The Growing Threats To Critical Technology”
  4. Reuters: “As U.S. Starts Oil Sanctions Against Iran, Major Buyers Get Waivers”
  5. ST&R Trade Report: “China Lowers Imports Tariffs to Diversify Sourcing Amid Trade War with U.S.”
  1. D.V. Lucas: “CFIUS and the Increasing Regulation of Foreign Investment (Part II of II)”
  2. International Trade Compliance Update: “EU Commission Publishes 2019 Version of the Combined Nomenclature”
  3. L. LaRocca & E. Bass: “Export Control Hiring Practices Continue to Challenge Employers”
  1. Monday List of Ex/Im Job Openings: 147 Openings Posted This Week, Including 1 New Listing
  1. FCC Presents “Designing an Internal Compliance Program for Export Controls & Sanctions”, 5 Feb 2019 in Bruchem, the Netherlands
  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 (1 Nov 2018), FACR/OFAC (5 Nov 2018), FTR (24 Apr 2018), HTSUS (2 Nov 2018), ITAR (4 Oct 2018) 
  3. Weekly Highlights of the Daily Bugle Top Stories 

EXIMITEMS FROM TODAY’S FEDERAL REGISTER

EXIM_a1

1.
Treasury/OFAC Amends Iranian Transactions and Sanctions Regulations to Reinstate Remaining Nuclear-Related Primary and Secondary Sanctions Against Iran 
(Source: 
Federal Register, 5 Nov 2018.0 [Excerpts.] 
 
* AGENCY: Office of Foreign Assets Control, Treasury.
* ACTION: Final rule.
* SUMMARY: The Department of the Treasury’s Office of Foreign Assets Control (OFAC) is amending the Iranian Transactions and Sanctions Regulations (ITSR) to implement further the President’s May 8, 2018 decision to cease the United States’ participation in the Joint Comprehensive Plan of Action (JCPOA) by making changes to reflect the re-imposition of sanctions pursuant to certain sections of Executive Order 13846 and changes to certain sanctions lists maintained by OFAC. OFAC is also amending an existing general license in the ITSR to authorize U.S. persons to sell personal property in Iran and transfer the proceeds to the United States.
* DATES: Effective: November 5, 2018. … 
* SUPPLEMENTARY INFORMATION: … Implementing the President’s May 8, 2018 Decision by Reinstating Certain Authorities in the ITSR and Making Certain Technical and Conforming Changes
  On May 8, 2018, the President issued National Security Presidential Memorandum-11 (NSPM-11), which set forth his decision to cease the United States’ participation in the JCPOA. In NSPM-11, the President directed the Secretary of State and the Secretary of the Treasury to immediately begin taking steps to reimpose all U.S. sanctions lifted or waived in connection with the JCPOA as expeditiously as possible, and in no case later than 180 days from the date of NSPM-11. In accordance with his decision, on August 6, 2018, the President issued Executive Order 13846 (83 FR 38939, August 7, 2018) (E.O. 13846) to, among other things, re-impose relevant authorities from certain Executive Orders that had been revoked previously. Today, OFAC is amending the ITSR, 31 CFR part 560, and appendix A to 31 CFR chapter V to take additional regulatory steps to implement the President’s May 8, 2018 decision.
  Previously revoked authorities. On January 16, 2016, the President issued Executive Order 13716 (81 FR 3693, January 21, 2016) (E.O. 13716), which, among other things, revoked Executive Order 13622 of July 30, 2012 (77 FR 45897, August 2, 2012) (E.O. 13622) in connection with the JCPOA. In light of this revocation, on January 21, 2016, OFAC amended the ITSR to, among other things, remove regulatory provisions that implemented sections 5 and 6 of E.O. 13622. (See 81 FR 3330). In that rule, OFAC also made certain technical and conforming changes to the ITSR and appendix A to 31 CFR chapter V related to (1) the removal of certain individuals and entities from OFAC’s Specially Designated Nationals and Blocked Persons List (SDN List), the Foreign Sanctions Evaders List, and the Non-SDN Iran Sanctions Act List on January 16, 2016, and (2) the concurrent transfer of certain individuals and entities that OFAC had previously identified as blocked pursuant to E.O. 13599 of February 5, 2012, to a “List of Persons Identified as Blocked Solely Pursuant to Executive Order 13599” (E.O. 13599 List), which OFAC made available on its website on January 16, 2016.
  Reinstating certain authorities and removing E.O. 13599 List references. In furtherance of the President’s May 8, 2018 decision and in light of the issuance of E.O. 13846, OFAC is now amending the ITSR and appendix A to 31 CFR chapter V by: (1) Reinstating the regulatory provisions implementing the authorities that were previously in sections 5 and 6 of E.O. 13622 and now are in sections 1 and 10 of E.O. 13846 by revising paragraph (c) of Sec.  560.211 of the ITSR; and (2) removing references to the E.O. 13599 List by revising notes in Sec. Sec.  560.211 and 560.304 of the ITSR, revising note 1 to Sec.  560.324 of the ITSR, and revising a note to appendix A to 31 CFR chapter V.
  Sections 1(a)(i) and 1(a)(ii) of E.O. 13846 authorize the Secretary of the Treasury to block all property and interests in property that are in the United States, that come within the United States, or that are or come within the possession or control of any U.S. person, including any foreign branch, of a person upon determining that: (i) On or after August 7, 2018, the person has materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services in support of, the purchase or acquisition of U.S. bank notes or precious metals by the Government of Iran, or (ii) on or after November 5, 2018, the person has materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services in support of, the National Iranian Oil Company (NIOC), the Naftiran Intertrade Company (NICO), or the Central Bank of Iran. Section 16 of E.O. 13846 defines the terms “NIOC” and “NICO” as including any entity owned or controlled by, or operating for or on behalf of, respectively, NIOC or NICO. Section 10 of E.O. 13846 provides that section 1(a) of the order, among other specified provisions, shall not apply to any person for conducting or facilitating a transaction involving a project described in subsection (a) of section 603 of the Iran Threat Reduction and Syria Human Rights Act of 2012 to which the exception under that section applies. Although it is not named in the section, section 10 of E.O. 13846 refers to the Shah Deniz natural gas field in Azerbaijan’s sector of the Caspian Sea and related pipeline projects to bring the gas from Azerbaijan to Europe and Turkey.
  By separate action, effective November 5, 2018, OFAC is removing the E.O. 13599 List from its website and relisting on the SDN List, as appropriate, individuals and entities that were previously listed on the E.O. 13599 List.
 
Sale of Certain Personal Property and Transfer of Proceeds to the United States
  Separately, OFAC is amending an existing general license in the ITSR to authorize U.S. persons to sell certain personal property in Iran and transfer the proceeds to the United States. Section 560.543 of the ITSR authorizes U.S. persons to engage in transactions necessary and ordinarily incident to the sale of real property in Iran, and to transfer the proceeds to the United States, provided that such real property was either acquired before the individual became a U.S. person or inherited from persons in Iran. OFAC routinely receives and approves specific license applications related to the sale of personal property in Iran which, prior to today’s rule, were outside the scope of Sec.  560.543. OFAC is therefore amending this general license to authorize U.S. persons to engage in transactions necessary and ordinarily incident to the sale of personal property in Iran, and to transfer the proceeds to the United States, provided that such personal property was either (1) acquired before the individual became a U.S. person or (2) inherited from persons in Iran. This authorization will complement Sec. 560.518, which authorizes certain transactions in Iranian-origin household and personal effects, as referenced in a new note OFAC is adding to Sec.  560.518. … 
 
  Dated: October 30, 2018.
Andrea Gacki, Director, Office of Foreign Assets Control.

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

OGSOTHER GOVERNMENT SOURCES

OGS_a12. Items Scheduled for Publication in Future Federal Register Editions
(Source: Federal Register)

[No items of interest noted today.]

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

OGS_a2
3. 
Commerce/BIS: (No new postings.)

(Source: 
Commerce/BIS)

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

OGS_a34. 
State/DDTC: (No new postings.)

(Source: 
State/DDTC)

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

OGS_a45. 
Treasury/OFAC Publishes Update Related to Full Reimposition of Sanctions on Iran

(Source: 
Treasury/OFAC, 5 Nov 2018.) 
 
Today, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) took a number of actions in connection with the full re-imposition of sanctions on Iran. 
OFAC issued Frequently Asked Questions (FAQs) relating to the end of the 180-day wind-down period and the re-imposition of U.S. sanctions lifted or waived in connection with the Joint Comprehensive Plan of Action (JCPOA). 
Additionally, persons and associated blocked property that were previously identified on the Executive Order (E.O.) 13599 List have been moved to the SDN List. OFAC has removed the E.O. 13599 List from its website. 
Moreover, an amendment to the Iranian Transactions Sanctions Regulations (ITSR) takes effect today. The amendment, among other things, reflects the re-imposition of sanctions pursuant to certain sections of E.O. 13846 and technical changes that remove references to the E.O. 13599 List.  
Finally, OFAC has published the following 
technical notice related to today’s action for users of OFAC’s sanctions list data files. 
 
  – Related Treasury press release: 
here

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OGS_a56. 
AmCham EU Releases Position Paper Regarding Recast of the EU Dual-Use Regulations 

(Source: 
AmCham EU, 30 Oct 2018.)  
 
The American Chamber of Commerce to the European Union (AmCham EU) has released a 5-page position paper concerning the recast of the EU Dual-Use Regulations. 
 
The position paper (in PDF) is available 
HERE.

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OGS_a67. 
EU Publishes Latest Version of the Combined Nomenclature (CN)

(Source: 
Official Journal of the European Union, 31 Oct 2018.)
 

Commission Implementing Regulation (EU) 2018/1602 of 11 October 2018 amending Annex I to Council Regulation (EEC) No 2658/87 on the tariff and statistical nomenclature and on the Common Customs Tariff [shall apply from 1 January 2019.] 

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OGS_a78. 
Hong Kong TID Releases Circular Concerning Chemical Weapons (Convention) Ordinance, Cap. 578

(Source: 
Hong Kong TID, 2 Nov 2018.)
 
The Trade and Industry Department (TID) of Hong Kong has released circular no. 11/2018: Permit Requirement for 2019 and Report on Past Activities in 2018 for Scheduled Chemicals and Unscheduled Discrete Organic Chemicals under Chemical Weapons (Convention) Ordinance, Cap. 578. 
 
Read the circular 
HERE.

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NWSNEWS

NWS_a0
9
. 
Bloomberg: “Multinationals’ Dreams of Hefty Iran Contracts Have Withered”
(Source: 
Bloomberg, 5 Nov 2018.) [Excerpts.] 
 
The Trump administration reintroduced punitive measures Monday against Iran’s all-important energy and shipping sectors. Although Iran and the other parties to the 2015 nuclear deal (France, Germany, the U.K., the European Union, China and Russia) remain committed, fear of violating the sanctions and losing access to the world’s biggest economy has forced major multinationals in and outside the U.S. to forgo lucrative projects in Iran.
 
Here are some of the heavy hitters that have pulled out or put plans on hold:
 
Boeing Co.; 
Airbus Group SE, ATR; 
General Electric Co.; 
Siemens AG; 
Total SA; 
Peugeot; 
Renault SA; 
Maersk; 
Bouygues SA; 
Air France-KLM Group; 
British Airways … 

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

(Source: 
Dutch News, 30 Oct 2018.) [Excerpts.]
 
Dutch firms are currently running 94 government-approved contracts to supply products which could be used for military purposes to Saudi Arabia, broadcaster 
NOS said on Tuesday.
 
The contracts for “dual use”‘ products and services have a total value of €136m and all have been approved by the foreign affairs ministry, NOS said. A number of contracts have been refused an export licence, including four destined for Saudi Arabia this year. … 
 
Western countries are under increasing pressure to suspend arms exports to Saudi Arabia since the murder of journalist Jamal Khashoggi in the Saudi consulate in Istanbul and due to the mounting famine in Jemen.
 
There is no EU ban on weapons exports to Saudi Arabia and Eurostat figures show that France, Britain, Germany and Italy all have major contracts to supply conventional weapons.
 
  “The Netherlands does not do what countries such as France and Britain do,” a foreign affairs ministry spokesman told the broadcaster. The Dutch government line is to stop the export of goods which could be use to 
contravene human rights, he said.

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NWS_a2
11. 
Fifth Domain: “A New DoD Task Force Addresses the Growing Threats To Critical Technology

(Source: Fifth Domain, 3 Nov 2018.)
 
Amid an alleged campaign of hacking by the Chinese government, efforts are taking place to prevent the exfiltration of data and protect sensitive information that is stored in the U.S. government and the defense-industrial base.
 
In a memo dated Oct. 24, Secretary of Defense Jim Mattis announced the creation of the Protecting Critical Technology Task Force to safeguard critical American technology.
 
  “Each year, American businesses lose hundreds of billions of dollars while our military superiority is challenged,” Deputy Secretary of Defense Patrick M. Shanahan said in a statement. “Together with our partners in industry, we will use every tool at our disposal to end the loss of intellectual property, technology and data critical to our national security.”
 
The PCTTF will report to Shanahan and Gen. Paul Selva, the vice chairman of the joint chief of staff. It includes representatives from the Central Intelligence Agency and the Defense Security Service, according to an industry official briefed on the matter.

The order comes after a string of high-profile hacks on the U.S. government and defense contractors.
 
Current and former U.S. intelligence officials say that China is working to hack the U.S. defense-industrial base, with a particular focus on firms that are on the lower tier of the supply chain.
 
  “Discoveries that took years of work and millions of dollars in investment here in the United States can be stolen by computer hackers or carried out the door by an employee in a matter of minutes,” Attorney General Jeff Sessions said Nov 1. “This theft is not just wrong; it poses a grave threat to our national security.”
 
China has consistently denied the hacks.
 
The task force also comes after the Defense Federal Acquisition Regulation Supplement, the rulebook for how defense contractors work with the federal government, was recently modified to add extra cybersecurity provisions.
 
The rules were accelerated after recent hacks on defense contractors, according to two industry officials briefed on the matter.
 
  “Cybersecurity has not become an ingrained norm in manufacturing, especially in small and medium-sized manufacturers,” read an October report from the Pentagon.
 
China “is increasingly dominating downstream value-added materials processing and associated manufacturing supply chains, both in China and increasingly in other countries,” the report said.
 
Pentagon and defense industry officials say that they often do not know all the companies in their supply chain, but that may change soon as a pilot program is being conducted that could trace the origin of all components, according to Lockheed Martin, a top cybersecurity contractor.
 
In addition, the Department of Homeland Security created a task force Oct. 30 that includes both public and private officials to manage risks to American computer and communications systems.
  
  “Threats to the nation’s IT and communications supply chain can severely impact our national security and nearly every facet of our economy,” Homeland Security Undersecretary Christopher Krebs said in a statement.

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

NWS_a3
12.  
Reuters: “As U.S. Starts Oil Sanctions Against Iran, Major Buyers Get Waivers”

(Source: Reuters, 5 Nov 2018.) 
 
The United States reintroduced sanctions against Iranian oil on Monday while giving some of Washington’s closest allies exemptions that allow Tehran’s biggest customers, mostly in Asia, to keep buying crude for now.
 
Washington has restored measures lifted under a 2015 nuclear deal negotiated with Tehran by the administration of President Barack Obama.
 
President Donald Trump’s administration added 300 new designations including Iran’s oil, shipping, insurance and banking sectors, aiming to cripple Iran’s main export revenues from the petroleum industry.
 
Despite this, Iran will continue to sell some oil as Washington said on Friday it would temporarily allow eight importers to keep buying Iranian supplies.
 
It did not identify who had received the exemptions, which will last up to 180 days and have been granted on the basis that importers have already slashed purchases and will further reduce them in the future.
 
It was not clear yet what individual volumes or aggregate volume the waivers entail. During the previous wave of sanctions on Iran in 2012 exemptions were given to China, India, Taiwan, Japan, Turkey and EU countries such as Italy, Greece and Spain for a total amount of over 1 million barrels per day.
 
South Korea said on Monday it had been granted a waiver to continue at least temporarily importing condensate from Iran and running financial transactions with the Middle Eastern country. Condensate – a super-light crude oil – is a critical feedstock for South Korea’s petrochemical industry.

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NWS_a5
13. 
ST&R Trade Report: “China Lowers Imports Tariffs to Diversify Sourcing Amid Trade War with U.S.” 

(Source: 
Sandler, Travis & Rosenberg Trade Report, 5 Nov 2018.)
Effective Nov. 1 China lowered its import duties on 1,585 tariff lines as part of a long-term plan to diversify sourcing away from the U.S. The move is expected to benefit suppliers such as the European Union, southeast Asia, and countries participating in China’s “One Belt, One Road” initiative.
 
China has responded to each stage of the Section 301 tariff increases the U.S. has imposed against imports from China with duty hikes of its own. However, this retaliation has resulted in higher costs for imports from the U.S., including key components in the supply chains for finished goods produced in China. Anticipating that these mutual tariff increases will remain in place for an extended period, Beijing has announced several rounds of duty decreases to encourage more sourcing from other countries. Affected products have included cancer-related drugs (effective May 1) and automobiles, auto parts, and some consumer goods (effective July 1).
 
The latest round, which took effect Nov. 1, included lowering the average duty rates for the following products as indicated.
  
  – construction machinery, instruments, and other mechanical and electrical equipment that have substantial domestic demand from 12.2 percent to 8.8 percent
  – textiles, construction materials, etc. from 11.5 percent to 8.4 percent
  – resource commodities such as paper products and primary processed products from 6.6 percent to 5.4 percent
 
(While affected goods from the U.S. will also benefit from these changes, they also remain subject to the retaliatory duties described above.)
 
As a result of these and previous adjustments, China’s overall average import duty rate has been reduced from 9.8 percent in 2017 to 7.5 percent today.
 

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COMMCOMMENTARY

COMM_a0
14. 
D.V. Lucas: “CFIUS and the Increasing Regulation of Foreign Investment (Part II of II)”

(Source: 
Bradley, 17 Oct 2018.) 
 
* Author: David Vance Lucas, Esq., 
dlucas@bradley.com. Bradley.
 

[Editor’s Note: Read part I 
here.]

 
First FIRRMA Implementation, Impact and Insights
 
The Foreign Investment Risk Review Modernization Act (FIRRMA) was signed into law on August 13, 2018, increasing the authority of the Committee on Foreign Investment in the U.S. (CFIUS).
 
CFIUS is an interagency committee that reviews foreign investment in the U.S. for potential national security issues. Historically, CFIUS only applied to a specific set of industries, technologies and capabilities that were determined to have involved national security. It was also a voluntary filing. 
 
Per authority included in FIRRMA, the U.S. Treasury Department announced a “Pilot Program” on October 10, 2018, which created the first mandatory filing requirement imposed by CFIUS. Significantly, the Pilot Program will apply to investments involving any non-US person in a U.S. business not contractually agreed to before October 11, 2018, or closed by November 10, 2018.
 
Equally significant, per the Pilot Program, CFIUS will no longer be voluntary for covered transactions. The Pilot Program requires the filing of a CFIUS notice or a new short form declaration; the failure to do so can result in a civil penalty up to the value of the transaction. CFIUS will have 30 days following the filing of a Pilot Program declaration to either clear the transaction, request a written notice, initiate a CFIUS review, or inform the parties that CFIUS did not have enough time to complete its review and that the parties may submit a formal notice.
 
The Pilot Program covers any foreign investment that provides a non-U.S. investor with the following rights in U.S. businesses that “produce, design, test, manufacture, fabricate, or develop one or more critical technologies:”
 
  • Access to nonpublic technical information – presumably export controlled.
  • Membership, participation, observation or nomination rights to boards of directors (or the governance equivalent).
  • The ability to make substantive decisions regarding the use, development, acquisition, or release of critical technology — other than through the exercise of common voting rights.
 
The Treasury Department adopted the North American Industry Classification System (NAICS) to identify the industries covered by the Pilot Program. The Pilot Program currently specifies the following 27 NAICS 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
 
The list of covered industries is notably much more expansive than the historic limited scope of CFIUS – which included national security, military and controlled technologies.
 
The Pilot Program is an initial temporary implementation of FIRRMA, but likely foreshadows the intent for FIRRMA’s final regulations. Under FIRRMA, the final regulations must be enacted by February 2020. Accordingly, the Pilot Program will end no later than the implementation of the final FIRRMA regulations. In the interim, the Treasury Department is expected to begin the public rule making and comment process, which will likely be significantly influenced by lessons learned from the Pilot Program.
 
As a result, if you have a process, merger or acquisition underway, be mindful of how FIRRMA and the current Pilot Program may affect your transaction, including but not limited to diligence regarding export controlled or critical technologies, and the determination of the correct and defendable NAICS classification of your business.

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

COMM_a01
15. 
International Trade Compliance Update: “EU Commission Publishes 2019 Version of the Combined Nomenclature”

(Source: 
International Trade Compliance Update, 2 Nov 2018.)
 
The European Commission has published the latest version of the Combined Nomenclature (CN) applicable as from 1 January 2019.  The Combined Nomenclature forms the basis for the declaration of goods (a) at importation or exportation or (b) when subject to intra-Union trade statistics. This determines which rate of customs duty applies and how the goods are treated for statistical purposes. The CN is thus a vital working tool for business and the Member States’ customs administrations.
 
The Combined Nomenclature was established by Council Regulation (EEC) No 2658/87 on the tariff and statistical nomenclature and on the Common Customs Tariff. It is updated every year and is published as a Commission Implementing Regulation in the Official Journal of the European Union, L Series.
 
The latest version is now available as Commission Implementing Regulation (EU) 2018/1602 in EU Official Journal L 273 of 31 October 2018 and applies from 1 January 2019. The latest version includes:
 
  – Amendments to implement the gradual reduction of duty rates for fresh bananas, as required by Council Decision 2011/194/EU;
  – Amendments to implement the gradual reduction of duty rates for products covered by the agreement in the form of the Declaration on the Expansion of Trade in Information Technology Products (ITA2), as required by Council Decision (EU) 2016/971;
  – Amendments to take account of changes in requirements relating to statistics, to commercial policy and technological and commercial developments, by deleting obsolete codes, by introducing new subheadings to facilitate monitoring of specific goods;
  – Amendments to adapt the list of international non-proprietary names (Annex 3 to Section II of Part Three (Tariff Annexes) of the CN) and the list of pharmaceutical intermediates, i.e. compounds of a kind used for the manufacture of finished pharmaceutical products (Annex 6 to Section II of Part Three (Tariff Annexes) of the CN), which are free of duty;
  – New CN codes to better monitor the growing market of ‘beverage can body stock’, ‘beverage can end stock and tab stock’, under subheading 7606 12 and to definitions of these products under a new Additional note 2 to Chapter 76; and
  – Certain minor changes in order to align the different language versions of the text.

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COM_a3
16. 
L. LaRocca & E. Bass: “Export Control Hiring Practices Continue to Challenge Employers”

(Source: 
Steptoe Labor & Employment Blog, 1 Nov 2018.)
 
* Authors: Elizabeth (Liz) Laskey LaRocca, Esq., 
elarocca@steptoe.com; and Erin Brass, Esq., 
ebass@steptoe.com. Both of Steptoe & Johnson LLP. 
 
Two recent settlements between employers and the U.S. Department of Justice (DOJ) highlight the complex interplay between U.S. immigration and export control laws in the hiring process. The settlements provide a reminder to employers of the potential employment discrimination pitfalls for companies trying to comply with export control laws.
 
In late August 2018, the DOJ’s Immigration and Employee Rights Section (IER) 
reached a settlement agreement with international law firm Clifford Chance US LLP, which the DOJ accused of violating the Immigration and Nationality Act (INA) by refusing to consider employment-authorized non-US citizens and dual citizens for a document review project. Just two months earlier, the DOJ 
found that engineering company Setpoint Systems, Inc. violated the INA by limiting certain positions to U.S. citizens only.  In both cases, the unlawful employment practices stemmed from a mistaken understanding of the requirements of the International Traffic in Arms Regulations (ITAR).
 
In this blog, we provide an overview of the overlapping laws and summary of key compliance practices for employers.
Brief Background of Applicable Laws
 
Export Control Laws
 
Under the ITAR or the Export Administration Regulations (EAR), companies must obtain licenses before releasing export-controlled technical data or technology to certain “foreign persons,” including foreign persons located in the United States colloquially known as a  “deemed export.”  Companies face severe consequences for failing to obtain the required licenses before release of export-controlled information, and many have entered into civil settlement agreements with the U.S. Government to resolve allegations of violating applicable deemed export rules. Thus, companies must implement compliance processes or technology control plans to assure that they do not release ITAR-controlled or EAR-controlled technology and technical data to foreign person employees in instances where a prior authorization is required. It should be noted that advance authorizations are not always required.
 
A “foreign person” means any individual who is not a “U.S. person,” 
i.e., (1) not a U.S. citizen, (2) not a U.S. lawful permanent resident, or (3) not a certain class of protected persons (e.g., refugees and asylees). [FN/1]  In other words, companies need not obtain export licenses for employees that are U.S. persons.  However, employers must keep in mind the applicable discrimination laws when designing an export-control compliance program.
 
U.S. Discrimination Laws
Title VII of the Civil Rights Act of 1964 prohibits discrimination based on, among other things, race and national origin.  Although Title VII does not directly prohibit discrimination based on citizenship or immigration status, those statuses are typically synonymous with race or national origin. Title VII prohibits both intentional discrimination and policies/practices that have a disparate impact on a protected status.
 
Title VII protects all persons working in the U.S. However, Title VII does not prohibit an employer from refusing to hire individuals who lack authorization to work in the U.S. or who require the employer to sponsor a work visa. Moreover, Title VII contains a “national security exception,” which permits companies to refuse to hire any person who does not meet federal national security laws, such as export control laws. 42 U.S.C. § 2000e-2. If an employer refuses to hire a person based on the national security exception, the employer bears the burden to prove that the position is subject to national security requirements.
The INA further prohibits discrimination based on (1) national origin or (2) citizenship status for “protected individuals.” 8 U.S.C. § 1324b(a)(1). The statute defines “protected individuals” as U.S. citizens, U.S. nationals, lawful permanent residents, and certain asylees and refugees. 8 U.S.C. § 1324b(a)(3).  Thus, the statute does not protect individuals in temporary, non-immigrant, statuses from citizenship status discrimination. The statute further permits action based on citizenship where necessary to comply with federal laws, including export control laws.
 
Significantly, the export control regulations’ definition of “U.S. Persons” incorporates the definition of “protected individuals” under the INA. In other words, U.S citizens, U.S. nationals, lawful permanent residents, and certain asylees and refugees are “protected individuals” and, as such, do not trigger export control regulations under ITAR or the EAR. This means that these individuals are not restricted from access to such controlled technologies. Thus, as is shown by the DOJ settlements, ITAR or EAR compliance efforts cannot justify employment restrictions which exclude any class of these “protected individuals.”
 
Notably, the INA further prohibits (1) unfair documentary practices, and (2) retaliation against any individual for participation in a DOJ investigation. An employer engages in unfair documentary practices if it requests more or different documents than necessary to verify employment eligibility, or specifically requests certain documents with the intent to discriminate on the basis of national origin or citizenship. Indeed, in 2018 alone, the DOJ settled at least four cases against employers accused of engaging in discriminatory document verification practices. 
See, e.g.
Settlement against Rose Acre Farms, resulting in $70,000 in back pay.
Best Practices
 
Export control programs may run afoul of U.S. anti-discrimination laws in one of four ways: (1) refusing to hire protected persons; (2) advertising for export-controlled positions with unlawful language; (3) applying export control regulations to positions that do not implicate the laws; or (4) failing to separate export control document verification procedures from form I-9 employment verification processes.
First, employers cannot restrict hiring for export-controlled positions to only U.S.-citizens, as the definition of protected persons encompasses more classes of people. The settlements noted above are examples of using overly-restrictive hiring provisions. While employers can restrict hiring for export-controlled positions, the restrictions must carefully align with the export-control requirements. Yet employers can lawfully limit hiring, whether or not the position is export-controlled, to candidates who do not require immigration sponsorship, so long as they implement such policies in a non-discriminatory manner.
Second, when advertising for such positions, employers must use great caution when drafting wording. Even legally accurate language can be regarded as discriminatory due to the possibility of misunderstandings of terminology deterring potential candidates from applying for the position. There is no designated “safe” language for describing immigration-specific limitations in job advertisements.  There are, however, two immigration-specific questions which IER has designated as safe to ask of applicants during the hiring process:
  (1) 
Are you legally authorized to work in the U.S.? 
  (2) 
Will you now or in the future require sponsorship for employment visa status (e.g., H-1B status)?
Third, employers must apply export control screening procedures only to those positions that are actually subject to export control laws and must ask only the questions needed to determine compliance. Employers must carefully analyze each position to determine whether it, in fact, is subject to the export control laws, since employers bear the burden of showing such laws apply. Employers must also use caution to carefully limit questions to the necessary information; for example, if the export control laws limit access based on a person’s citizenship, employers must ask only about citizenship and not national origin.
Fourth, employers should separate the Form I-9 employment authorization verification process from the export control U.S. Person verification process. Separating those processes limits violations of INA’s documentary practice provisions and further limits the perception of any present or future discriminatory use of the information. When collecting information for export-control compliance, employers should tell employees that the information collected will not be used for any other purpose.
 
———–
  [FN/1] Although not customarily referred to when defining a “foreign person” for export control purposes, a U.S. national is included by reference. Specifically, 22 C.F.R. § 120.15 provides that “U.S. person” means a person “who is a lawful permanent resident as defined by 8 U.S.C. 1101(a)(2) or who is a protected individual as defined by 8 U.S.C. § 1324b(a)(3).” (Emphasis added.) In turn, 8 U.S.C. 1324b(a)(3) defines “protected individual” as “a citizen or national of the United States,” “an alien who is lawfully admitted for permanent residence,” and certain refugees and asylees.

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


MSEX/IM MOVERS & SHAKERS

MS_a117. Monday List of Ex/Im Job Openings: 147 Openings Posted This Week, Including 1 New Opening

(Source: Editor) 
 

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

 
* COMPANY; LOCATION; POSITION TITLE (WEBLINK); CONTACT INFORMATION; REQUISITION ID
 

#
” New or amended listing this week

 


Acco Brands; Lake Zurich, IL; 
North America Trade Compliance Specialist Classification
;

* 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

*
 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
;

* 
Analog Devices; Wilmington, MA; 
Director, Global Trade Compliance
;

Apple; Cupertino, CA; 
Export Compliance Progam Manager

* Arrow; Shanghai, China; Compliance Manager;

Ascent Aerospace; Lake Orion, MI; 
ITAR/EAR/Export Compliance Manager
;


ASML; Veldhoven, Netherlands; 
Expertise Manager Export Control;

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

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

Boeing; Saint Louis, MO; 
Trade Control Specialist

Requisition ID 1800078843

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

Cubic; San Diego, CA; 
Export Compliance Analyst
; Requisition ID: 15764
* 
Culmen International; Alexandria, VA; 
Government Property and Export Control Specialist
;

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

Doosan; West Fargo, ND; 
Director Customs & Trade Compliance
*
 
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;

* 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; Irvine, 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; Arlington, VA; 
Export Policy Analyst
; Requisition ID: 2018-48185 


* Google; Mountain View, CA; 
Trade Specialist, Export Compliance
; sdemian@google.com;

Google; Sunnyvale, CA; 
Export Compliance Manager
;

Greene, Tweed & Co.; Kulpsville, PA; 
Export Compliance Specialist
;
* Harris Corporation; Van Nuys, CA; 
Trade Compliance Specialist
;
rwellbro@harris.com
; 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 

HealthNewCo; Irivine, CA;
Director, Global Trade Compliance;
* 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
;

Henkel AG; Rocky Hill, CT; 
Global Trade Defense Information Manager
;

* 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; Munich, Germany; Manager Export Control;
* Infineon Technologies; Munich, Germany; Specialist Export Control;
*
 
Infinera; Sunnyvale, CA; Director, Global Logistics and Trade Compliance;

*
 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: 
WD30047852135
* Johnson Controls; Boca Raton, FL; Licensing Coordinator; Rquisition ID: 
WD30047853135
* Johnson Controls; Milwaukee, WI; Trade Compliance Analyst; Requisition ID: WD30047348124
* Johnson Controls; Tamaulipas, Matamoros, Mexico; Trade Compliance Specialist; Requisition ID: EB00064420180

* 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

* 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; 
Associate Export Controls Analyst
; Requisition ID: 18000K22

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


MEGGITT Control Systems; North Hollywood, CA; 
Sr. Trade Compliance Specialist
;

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

MIT Lincoln Laboratory; Cambridge, MA; 
Export Compliance & Document Control Analyst;

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
Apply 
HERE
 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
Apply 
HERE
 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:
18017919
* Northrop Grumman; Linthicum, MD;
Manager Regulatory Compliance 2
; Requisition ID:
18016051
* 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: 
183273

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

* Raytheon; Billerica, MA;
Import Ctl&Compliance Advisor
; Requisition ID:
119749BR

* Raytheon; Billerica, MA; 
Mgr I Export-Import Control
; Requisition ID: 
118298BR

* 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

*
 SABIC; Houston TX; 
Senior Analyst, Trade Compliance
;
Danielle.Cannata@sabic.com
; 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

Toyota Tsusho America; Georgetown, KY; 
Import Export Compliance Specialist;

* 
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

* 
University of South Florida; Tampa, FL; Export Control Officer;
* 
Vigilant; Budapest, Hungary; Jr. Compliance Analyst;

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

* VT iDirect; Herndon VA;
 
Manager, Global Logistics
; Requisition ID: 2018R-3120-1;
 
psingh@idirect.net
;
*
 
Wesco International; Houston, TX; 
Export Compliance Specialist
;

* 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

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

TEEX/IM TRAINING EVENTS & CONFERENCES

TE_a218FCC 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 (CET)
* 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.

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

ENEDITOR’S NOTES

Eden Phillpotts (4 Nov 1862 – 29 Dec 1960; was an English author, poet and dramatist, born in Mount Abu, India, who worked as an insurance agent for 10 years before becoming a professional writer.)
  – “The people sensible enough to give good advice are usually sensible enough to give none.”
 
Will Durant (William James Durant; 5 Nov 1885 – 7 Nov 1981; was an American writer, historian, and philosopher. He became best known for his work The Story of Civilization, in 11 volumes, written in collaboration with his wife, Ariel Durant, and published between 1935 and 1975.  The Durants were awarded the Pulitzer Prize for General Non-Fiction in 1968 and the Presidential Medal of Freedom in 1977.)
  – “We are what we repeatedly do. Excellence, then, is not an act, but a habit.”
  – “The love we have in our youth is superficial compared to the love that an old man has for his old wife.”


                                
Monday is pun day:  
* Becoming a vegetarian is a big missed steak.
* I’m only friends with 25 letters of the alphabet. I don’t know Y.
* Last night, I dreamed I was swimming in an ocean of orange soda. But it was a Fanta sea.
* A man sued an airline company after it lost his luggage. Sadly, he lost his case.
* A man sued the surgeon who mistakenly amputated his good leg, then had to repeat the surgery to remove his diseased leg. Sadly, his case was thrown out of court because the judge said he didn’t have a leg to stand on. 

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

EN_a320
. 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: 5 Nov 2018: 
83 FR 55269-55271: Iranian Transactions and Sanctions Regulations 

 
*
FOREIGN TRADE REGULATIONS (FTR)
: 15 CFR Part 30
  – Last Amendment: 24 Apr 2018: 3 FR 17749-17751: Foreign Trade Regulations (FTR): Clarification on the Collection and Confidentiality of Kimberley Process Certificates
  – HTS codes that are not valid for AES are available
here.
  – The latest edition (30 Apr 2018) of Bartlett’s Annotated FTR (“BAFTR”), by James E. Bartlett III, is available for downloading in Word format. The BAFTR contains all FTR amendments, FTR Letters and Notices, a large Index, and approximately 250 footnotes containing case annotations, practice tips, Census/AES guidance, and explanations of the numerous errors contained in the official text. Subscribers receive revised copies in Microsoft Word every time the FTR is amended. The BAFTR is available by annual subscription from the Full Circle Compliance websiteBITAR subscribers are entitled to a 25% discount on subscriptions to the BAFTR. Government employees (including military) and employees of universities are eligible for a 50% discount on both publications at www.FullCircleCompiance.eu.  
 
*
HARMONIZED TARIFF SCHEDULE OF THE UNITED STATES (HTS, HTSA or HTSUSA)
, 1 Jan 2018: 19 USC 1202 Annex. (“HTS” and “HTSA” are often seen as abbreviations for the Harmonized Tariff Schedule of the United States Annotated, shortened versions of “HTSUSA”.)

  – Last Amendment: 1 Nov 2018: 
Harmonized System Update 1819, 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_a0321
Weekly Highlights of the Daily Bugle Top Stories

(Source: Editor) 

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

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

EPEDITORIAL POLICY

* The Ex/Im Daily Update is a publication of FCC Advisory B.V., compiled by: Editor, James E. Bartlett III; Assistant Editors, Alexander P. Bosch and Vincent J.A. Goossen; and Events & Jobs Editor, Alex Witt. The Ex/Im Daily Update is emailed every business day to approximately 6,000 readers of changes to defense and high-tech trade laws and regulations. We check the following sources daily: Federal Register, Congressional Record, Commerce/AES, Commerce/BIS, DHS/CBP, DOE/NRC, DOJ/ATF, DoD/DSS, DoD/DTSA, FAR/DFARS, State/DDTC, Treasury/OFAC, White House, and similar websites of Australia, Canada, U.K., and other countries and international organizations.  Due to space limitations, we do not post Arms Sales notifications, Denied Party listings, or Customs AD/CVD items.

* 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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