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18-1113 Tuesday “Daily Bugle”

18-1113 Tuesday “Daily Bugle”

Tuesday, 13 November 2018

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The Daily Bugle is a free daily newsletter from Full Circle Compliance, containing changes to export/import regulations (ATF, DOE/NRC, Customs, NISPOM, EAR, FACR/OFAC, FAR/DFARS, FTR/AES, HTSUS, and ITAR), plus news and events.  Subscribe 
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[No items of interest noted today.]

  1. Items Scheduled for Publication in Future Federal Register Editions
  2. Commerce/BIS: (No new postings.)
  3. DHS/CBP Provides Entry Filing Instructions for Imports of Steel Mill Articles and Aluminum Products Granted Relief
  4. DHS/CBP Releases ACE DIS XML Schema Update
  5. State/DDTC: (No new postings.)
  6. Japanese METI Publishes Update Regarding Partial Revision of the Foreign Exchange Order and the Export Trade Control Order
  1. Reuters: “U.S. Envoy Warns Sanctions Still an Option Against Nord Stream 2”
  1. A.K. Lerr: “Responding to the Xinjiang Surveillance State – and Its Likely Progeny”
  1. ECTI Presents “Export Compliance Essentials for the Aerospace Industry” Webinar, 5 Dec
  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

[No items of interest noted today.]
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OGSOTHER GOVERNMENT SOURCES

OGS_a11. Items Scheduled for Publication in Future Federal Register Editions
(Source: Federal Register)

* State; NOTICES; 
  – Designations as Foreign Terrorist Organizations: Hizballah (and Other Aliases);
  – Designations as Global Terrorists:
    – Al-Mujahidin Brigades, aka Khatib Al-Mujahidin, aka Holy Warriors Battalion, aka Al Mujahideen Brigades, aka Ansar al-Mujahidin Movemement; and
     – Jawad Nasrallah, aka, Mohammad Jawad Nasrallah, aka Juad Nasrallah [Publication Dates: 14 Nov 2018.]

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OGS_a2
2. 
Commerce/BIS: (No new postings.)

(Source: 
Commerce/BIS)

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OGS_a33. 
DHS/CBP Provides Entry Filing Instructions for Imports of Steel Mill Articles and Aluminum Products Granted Relief 

(Source: 
CSMS# 18-000671, 13 Nov 2018.) [Excerpts.] 
 
U.S. Customs and Border Protection (CBP), Office of Trade (OT) is providing guidance for the entry filing of imports of steel mill articles and aluminum products granted relief, under section 232 of the Trade Expansion ACT of 1962 from absolute quota by the Secretary of Commerce, paragraphs (1) and (2) of Presidential Proclamation 9777 (83 FR 45026, Vol. 171 September 4, 2018). ACE is programmed to process imports granted relief from quantitative limits. 
 
Importers or filers must submit a copy of the approved Department of Commerce (DOC) quota product exclusion with the approved importer of record number to 
traderemedy@dhs.gov and courtesy copy the Quota and Agriculture Branch 
HQQuota@cbp.dhs.gov
 
Only products from importer(s) designated in the product exclusion approved by the DOC are eligible for the exclusion from the Section 232 measures.
 
NOTE: CBP must receive and activate the product exclusion number before any quota exemption can be processed, and goods subject to the quota exemption can be released.
 
Entry Filing Instructions… 
 
  – Related CSMS No. 18-000624

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OGS_a44. 
DHS/CBP Releases ACE DIS XML Schema Update

(Source: 
CSMS# 18-000670, 13 Nov 2018.) 
 
The ACE DIS XML Schema page has been updated to reflect the DIS XML schema that is currently in production.
 
You can find the ACE DIS XML Schema page 
here.

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OGS_a55. 
State/DDTC: (No new postings.)

(Source: 
State/DDTC)

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OGS_a66. 
Japanese METI Publishes Cabinet Decision on the Bill for the Cabinet Order for Partial Revision of the Foreign Exchange Order and the Export Trade Control Order

(Source: 
METI, 6 Nov 2018.) [Excerpts]
 
For the purposes of preventing the proliferation of weapons of mass destruction, preventing the excess accumulation of conventional weapons, and executing treaties and other international agreements, the [Japanese] Ministry of Economy, Trade and Industry (METI) controls exports and technologies under the Foreign Exchange and Foreign Trade Act which governs the Foreign Exchange Order (hereinafter referred to as the “Exchange Order”) and the Export Trade Control Order (hereinafter referred to as the “Export Order”).
 
METI hereby announces that on November 6, 2018, the Cabinet approved the Bill for the Partial Revision of the Exchange Order and the Export Order concerning (i) revision of goods and technologies in the export regulatory list based on the agreements concluded by the International Export Control Regimes during the meetings held in 2017 and (ii) removal of some blood products from the regulatory list in light of the current situations of domestic supply and demand.
 
(1) Outline of the Revision
 
  – The Exchange and Export Orders are to be revised concerning goods and technologies contained in the regulatory list so that the government of Japan can ensure domestic implementation of the agreements and other rules concluded at the meetings of the International Export Control Regimes (related to the Appended Table of the Exchange Order and Appended Table 1 of the Export Order).
  – The Exchange and Export Orders are to be revised to remove some blood products from the regulatory list, because their removal will not affect stable supply and therefore they do not need to be regulated. (related to Appended Table 2 of the Export Order).
 
The details of the revision are as follows:
 
Related to The Appended Table of the Exchange Order
 
Technologies involving design, manufacture, or use of assemblies or parts thereof used for repair of reactor vessels or reactors and storage tanks, containers or receivers have been added (Revision of Appended Table, column 3, (ii) of the Exchange Order)
 
Related to Appended Table 1 of the Export Order
 
  – Parts of devices used for manufacture of tritium have been added (Revision of Appended Table 1, column 2, (48) of the Export Order)
  – Addition of assemblies or parts thereof used for repair of reactor vessels or reactors and storage tanks, containers or receivers have been added (Revision of Appended Table 1, column 3, (iii) of the Export Order)
  – Addition of devices for synthesis of nucleic acids or binding between nucleic acids (Revision of Appended Table 1, column 3-2, have been added (ii), (9) of the Export Order)
  – Thermoplastic copolymers have been removed (Revision of Appended Table 1, column 5, (xvi) of the Export Order)
  – Removal of robots that perform 3D image processing or analysis in real time (Revision of Appended Table 1, column 6, have been removed (vii), (1) of the Export Order)
  – Optical modulators using electro-optic effects have been added (Revision of Appended Table 1, column 7, (viii)-4 of the Export Order)
  – Substrates used for manufacture of masks have been added (Revision of Appended Table 1, column 7, (xvii)-2 of the Export Order)
  – Polycrystal substrates have been added (Revision of Appended Table 1, column 7, (xxiii) of the the Export Order)
  – High speed cinema recording cameras, mechanical cameras, streak cameras, electronic cameras, or related components have been removed (Revision of Appended Table 1, column 10, (iv) of the Export Order)
 
Note: Addition or removal of goods listed in Appended Table 1 of the Export Order shall additionally cause technologies involving design, manufacture or use of these goods to be added to or removed from the Appended Table of the Exchange Order. When addition or removal of goods to or from the Export Order is made, such addition or removal is to be automatically reflected under the Appended Table of the Exchange Order without any additional physical or legal amendment of the table.
 
Related to Appended Table 2 of the Export Order
 
  – Removal of some blood products (Revision of Appended Table 2, column 19 from the Export Order)
 
Note: In line with the revisions in the Exchange Order and the Export Order, METI will also revise the related ordinances, public notices and other regulations.
 
(2) Future schedule
 
  – Promulgation: 9 November 2018
  – Enforcement: 9 January 2019 (Provisions related to Appended Table 1 of the Export Order), 1 April 2019 (Provisions related to Appended Table 2 of the Export Order)
 
For further details, please see the 
Japanese language press release. … 

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NWSNEWS

NWS_a0
7
. 
Reuters: “U.S. Envoy Warns Sanctions Still an Option Against Nord Stream 2”

(Source: 
Reuters, 13 Nov 2018.) [Excerpts.] 
 
The United States could yet impose new sanctions to try to block construction of the Russian Nord Stream 2 gas pipeline across the Baltic Sea to the European Union, the U.S. ambassador to the EU said on Tuesday.
 
Asked if Donald Trump could take further measures to thwart a project which the president has said would leave EU countries even more beholden to Moscow for their energy, Gordon Sondland said: “We have not deployed the full set of tools yet that could significantly undermine if not outright stop the project.” … 
 
  “If that philosophy is not adopted and Nord Stream continues, then the president has many, many other tools at his disposal – I’m not going to go through the litany – to try and curb and stop the project.”
 
In August, Trump signed new sanctions on Russia into law that the pipeline’s promoter, Gazprom, said could hold up some of its projects. For now, construction is continuing with the participation of some major EU companies, despite opposition from many EU states and from the EU executive. … 
 
Last week, on a visit to Poland which is a vocal critic of Nord Stream 2, U.S. Energy Secretary Rick Perry said Trump was maintaining the option of imposing sanctions.
 
Washington has not detailed potential actions but one way in which the United States could undermine the project would be by penalizing big multinational firms working on it. … 
 
Gazprom is the sole shareholder in Nord Stream 2, shouldering half of the 9.5 billion euro ($10.7 billion) construction cost. Gazprom’s Western partners are Germany’s Uniper and Wintershall, Anglo-Dutch group Royal Dutch Shell, France’s Engie and Austria’s OMV.

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COMMCOMMENTARY

COMM_a00
8. 
A.K. Lerr: “Responding to the Xinjiang Surveillance State – and Its Likely Progeny”

(Source: 
CSIS, 13 Nov 2018.) 
 
* Author: Amy K. Lerr, Director, Human Rights Initiative, Center for Strategic & International Studies (CSIS), 
alehr@csis.org
 
Congressional attention has turned to the Orwellian plight facing the Uyghurs, a Muslim minority in Xinjiang, in Northwest China. The Chinese state 
has incarcerated approximately one million Muslims in Xinjiang in “political education” camps for offenses as minor as having a beard. The authorities have placed tight restrictions on the practice of their religion and the teaching of their local language in an apparent effort to assimilate them into mainstream Han Chinese culture. Technology plays a vital role in this police state and enables new levels of intrusion into the population’s daily lives. … 
 
Congress has … begun to focus attention on the U.S. companies supplying technology to Chinese counterparts that play a key role in the Xinjiang surveillance state. In May 2018, Senators Marco Rubio (R-FL) and Chris Smith (R-NJ) wrote a 
letter to the commerce secretary expressing concern about the situation in Xinjiang and questioning why U.S. firms had been able to sell products to the Chinese authorities for use in surveillance systems despite existing export control measures. … 
 
[Editor’s Note: to read the entire item, please click on the source link below the item title.]

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TEEX/IM TRAINING EVENTS & CONFERENCES

TE_a19ECTI Presents “Export Compliance Essentials for the Aerospace Industry” Webinar, 5 Dec

(Source: Danielle Hatch, 
danielle@learnexportcompliance.com.)
 
* What: Export Compliance Essentials for the Aerospace Industry
* When: December 5, 2018; 1:00 p.m. (EST)
* Where: Webinar
* Sponsor: Export Compliance Training Institute (ECTI)
* ECTI Speaker: Scott Gearity
* Register: 
Here or Danielle Hatch, 540-433-3977,

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ENEDITOR’S NOTES


William Shenstone (13 Nov 1714 – 11 Feb 1763; was an English poet and one of the earliest practitioners of English landscape gardening through the development of his estate, The Leasowes.)
  – “A liar begins with making falsehood appear like truth, and ends with making truth itself appear like falsehood.”
  – “A miser grows rich by seeming poor; an extravagant man grows poor by seeming rich.”

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EN_a311
. 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.

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EN_a0312
Weekly Highlights of the Daily Bugle Top Stories

(Source: Editor) 

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

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EPEDITORIAL POLICY

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

* 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.


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