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18-1115 Thursday “Daily Bugle”

18-1115 Thursday “Daily Bugle”

Thursday, 15 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. State Updates Cuba Restricted List 
  2. Treasury/OFAC Amends Democratic Republic of the Congo Sanctions Regulations 
  3. USTR Posts Results of the 2017/2018 Annual GSP Review
  4. USTR Seeks Comments on Negotiating Objectives for a U.S.-European Union Trade Agreement
  1. Items Scheduled for Publication in Future Federal Register Editions
  2. Commerce/BIS: (No new postings.)
  3. DHS/CBP Updates ABI Software Vendors List
  4. DoD/DSS Announces Knowledge Center Closure Due to Thanksgiving
  5. State/DDTC: (No new postings.)
  1. Reuters: “U.S. Sanctions 17 Saudis over Killing of Journalist Khashoggi”
  2. ST&R Trade Report: “ACE Functionality Deployments for Broker Permits, GSP Pushed Back”
  1. M. Volkov: “NAVEX Global Research Demonstrates Correlation Between Business Performance and Hotline System”
  2. Z. Stanley-Lockman: “Learning from South Korea: How Artificial Intelligence Can Transform U.S. Export Controls”
  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 (15 Nov 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

1. State Updates Cuba Restricted List
(Source: Federal Register, 15 Nov 2018.) [Excerpts.]
 
83 FR 57523-57525: Updating the State Department’s List of Entities and Subentities Associated With Cuba (Cuba Restricted List)
* ACTION: Updated publication of list of entities and subentities.
* SUMMARY: The Department of State is publishing an update to its List of Restricted Entities and Subentities Associated with Cuba (Cuba Restricted List) with which direct financial transactions are generally prohibited under the Cuban Assets Control Regulations (CACR). This Cuba Restricted List is also considered during review of license applications submitted to the Department of Commerce’s Bureau of Industry and Security (BIS) pursuant to the Export Administration Regulations (EAR).
* DATES: The updates to the Cuba Restricted List are effective on November 15, 2018.
* FOR FURTHER INFORMATION CONTACT: Benjamin Barron, Office of Economic Sanctions Policy and Implementation, tel.: 202-647-7489; Office of the Coordinator for Cuban Affairs, tel.: 202-453-8456, Department of State, Washington, DC 20520.
* SUPPLEMENTARY INFORMATION: …
  On June 16, 2017, the President signed the National Security Presidential Memorandum on Strengthening the Policy of the United States Toward Cuba (NSPM). As directed by the NSPM, on November 9, 2017, the Department of the Treasury’s Office of Foreign Assets Control (OFAC) published a final rule in the Federal Register amending the CACR, 31 CFR part 515, and the Department of Commerce’s Bureau of Industry and Security (BIS) published a final rule in the Federal Register amending, among other sections, the section of the Export Administration Regulations (EAR) regarding Cuba, 15 CFR part 746. The regulatory amendment to the CACR added Sec. 515.209, which generally prohibits direct financial transactions with certain entities and subentities identified on the State Department’s Cuba Restricted List, which the State Department is updating as published below, and accessible on the State Department’s website. The regulatory amendment to the EAR, specifically Sec. 746.2, notes BIS will generally deny applications to export or reexport items for use by entities or subentities identified on the Cuba Restricted List. This update includes 26 newly identified subentities and five amendments to previously-listed subentities including three name-changes, one new alias, and one typographical correction (the subentity “Hotel Palacio del Marqu[eacute]s de San Felipe y Santiago de Bejucal (Habaguanex)” was incorrectly split between two lines). The State Department will continue to update the Cuba Restricted List periodically.
  The publication of the updated Cuba Restricted List further implements the directive in paragraph 3(a)(i) of the NSPM for the Secretary of State to identify the entities or subentities, as appropriate, that are under the control of, or act for or on behalf of, the Cuban military, intelligence, or security services or personnel, and publish a list of those identified entities and subentities with which direct financial transactions would disproportionately benefit such services or personnel at the expense of the Cuban people or private enterprise in Cuba. …
  Below is the U.S. Department of State’s list of entities and
subentities under the control of, or acting for or on behalf of, the
Cuban military, intelligence, or security services or personnel with which direct financial transactions would disproportionately benefit such services or personnel at the expense of the Cuban people or private enterprise in Cuba. For information regarding the prohibition on direct financial transactions with these entities, please see section 515.209 of the Cuban Assets Control Regulations (31 CFR part 515). All entities and subentities were listed effective November 9, 2017, unless otherwise indicated. …
 
  Peter D. Haas, Senior Bureau Official, Bureau of Economic and Business Affairs, Department of State.
* * * * * * * * * * * * * * * * * * * * 

EXIM_a2

2. Treasury/OFAC Amends Democratic Republic of the Congo Sanctions Regulations
(Source: Federal Register, 15 Nov 2018.) [Excerpts.]
 
83 FR 57308-57318: Democratic Republic of the Congo Sanctions Regulations
* AGENCY: Office of Foreign Assets Control, Treasury.
* ACTION: Final rule.
* SUMMARY: The Department of the Treasury’s Office of Foreign Assets Control (OFAC) is adopting a final rule amending the Democratic Republic of the Congo Sanctions Regulations to implement Executive Order 13671 of July 8, 2014 (“Taking Additional Steps to Address the National Emergency With Respect to the Conflict in the Democratic Republic of the Congo”). This rule also incorporates other technical and conforming changes.
* DATES: Effective: November 15, 2018.
* FOR FURTHER INFORMATION CONTACT: The Department of the Treasury’s Office of Foreign Assets Control: Assistant Director for Licensing, tel.: 202-622-2480; Assistant Director for Regulatory Affairs, tel: 202-622-4855; Assistant Director for Sanctions Compliance & Evaluation, tel.: 202-622-2490; or the Department of the Treasury’s Office of the Chief Counsel (Foreign Assets Control), Office of the General Counsel, tel.: 202-622-2410.
* SUPPLEMENTARY INFORMATION: …
   This rule amends the Regulations to implement the relevant provisions of E.O. 13671, as well as to update certain provisions and to make other technical and conforming changes. OFAC is revising and republishing in its entirety subpart B of the Regulations, which sets forth the prohibitions contained in sections 1 and 2 of amended E.O. 13413. See, e.g., Sec. Sec. 547.201 and 547.205. In particular, OFAC is revising Sec. 547.201 of subpart B to incorporate the new designation criteria provided for in E.O. 13671. OFAC is also adding Sec. 547.206 to subpart B to clarify which transactions are exempt from the prohibitions in this part.
   This rule also amends several sections in subpart C, which defines key terms used throughout the Regulations. New Sec. 547.300 is being added to clarify that the definitions contained in subpart C apply throughout the entire part, and Sec. Sec. 547.314 and 547.315 are being added to define key terms used in the Regulations. Also, certain existing definitions in subpart C are being updated or revised to take account of new provisions and to provide greater clarity with respect to the terms being used.
   This rule also revises and republishes in its entirety subpart D, which contains interpretive sections regarding the Regulations. Section 547.411 of subpart D is being amended to clarify that the property and interests in property of an entity are blocked if the entity is directly or indirectly owned, whether individually or in the aggregate, 50 percent or more by one or more persons whose property and interests in property are blocked, whether or not the entity itself is listed in or designated pursuant to amended E.O. 13413 or incorporated into OFAC’s Specially Designated Nationals and Blocked Persons List (SDN List). Other sections within subpart D are being amended to reflect current OFAC interpretations.
   Transactions otherwise prohibited by the Regulations but found to be consistent with U.S. policy may be authorized by one of the general licenses contained in subpart E of the Regulations or by a specific license issued pursuant to the procedures described in subpart E of 31 CFR part 501. This rule also amends subpart E of the Regulations. In particular, a general license is being added in Sec. 547.508, authorizing payments from outside the United States for the provision of legal services authorized in Sec. 547.507. The general license authorizing certain emergency medical services that was formerly at Sec. 547.508 has been moved to Sec. 547.509 and updated to reflect current licensing policies. Updates to reflect current licensing policies have also been made to several other general licenses. General licenses and statements of licensing policy relating to this part also may be available through the Democratic Republic of the Congo sanctions page on OFAC’s website: www.treasury.gov/ofac.
   This rule revises subpart G of the Regulations and republishes it in its entirety. Subpart G of the Regulations describes the civil and criminal penalties applicable to violations of the Regulations, as well as the procedures governing the potential imposition of a civil monetary penalty or issuance of a Finding of Violation. Subpart G also refers to appendix A of part 501 for a more complete description of these procedures. Finally, this rule updates the delegation of authority by the Secretary of the Treasury in subpart H of the Regulations. …
 
   Dated: November 7, 2018.
Andrea Gacki, Director, Office of Foreign Assets Control.
* * * * * * * * * * * * * * * * * * * * 

EXIM_a33. USTR Posts Results of the 2017/2018 Annual GSP Review
(Source: Federal Register, 15 Nov 2018.) [Excerpts.]
 
83 FR 57527-57528: Results of the 2017/2018 Annual Generalized System of Preferences Review
* AGENCY: Office of the United States Trade Representative.
* ACTION: Notice.
* SUMMARY: The Office of the United States Trade Representative (USTR) is announcing the results of the 2016/2017 Annual Generalized System of Preferences (GSP) Review with respect to: Products considered for addition to the list of eligible products for GSP; products considered for removal from the list of eligible products for certain beneficiary countries; decisions related to competitive need limitations (CNLs), including petitions for waivers of CNLs; and requests to reinstate/redesignate products previously excluded from GSP eligibility for certain countries.
* FOR FURTHER INFORMATION CONTACT: Lauren Gamache, Director for GSP at (202) 395-2974 or lauren.m.gamache@ustr.eop.gov.
* SUPPLEMENTARY INFORMATION: …
   As part of the 2017/2018 GSP Annual Review, the TPSC reviewed three types of actions related to the CNLs: (1) Whether to grant CNL waivers for products from certain countries, (2) whether to redesignate products from certain countries previously excluded from GSP eligibility based on CNLs; and (3) whether to grant de minimis CNL waivers for products from certain countries.
   In the 2017/2018 Annual GSP Review, the TPSC reviewed (1) petitions to add nine products to the list of those eligible for duty-free treatment under GSP; (2) petitions to remove the GSP eligibility of two products; (3) petitions to waive CNLs for five products from beneficiary countries; (4) 92 products eligible for one-year de minimis waivers of CNLs; and (5) petitions to redesignate products previously excluded from GSP eligibility for certain beneficiary countries.
   Presidential Proclamation 9813 of October 30, 2018, implements the President’s decisions regarding the 2017/2018 Annual GSP Review, including CNL waivers and product redesignations. The modifications to the GSP program that were implemented by Presidential Proclamation 9813 became effective on November 1, 2018. This notice provides a summary of the results of the 2017/2018 Annual GSP Review. You can also view the results, comprising six lists, at https://www.regulations.gov using docket number USTR-2017-0014, under “Supporting and Related Materials” and on the USTR website at here.
   As described in List I, the President denied all petitions to add products to the list of GSP-eligible products for all BDCs. The products in List I, however, remain eligible for duty-free preferences for least-developed beneficiary countries only. For ease of reference, a brief description and the U.S. Harmonized Tariff Schedule (HTS) categories of the nine products included in List I follows:
 
  (1) Certain fresh pears (HTS 0808.30.40)
  (2) certain melon and citrus fruit peel (HTS 0814.00.80)
  (3) cottonseed (HTS 1207.29.00)
  (4) crude sunflower-seed or safflower oil (HTS 1512.11.00)
  (5) certain prepared or preserved apples (HTS 2008.99.05)
  (6) p-Anisic acid, clofibrate, and 3-phenoxybenzoic acid (HTS 2918.99.05)
  (7) certain aromatic carboxylic acids and their derivatives described in U.S. Note 3 (HTS 2918.99.43)
  (8) certain aromatic carboxylic acids and their derivatives not covered in U.S. Note 3 (HTS 2918.99.47)
  (9) certain rubber transmission V-belts (HTS 4010.33.30) …
 
  Erland Herfindahl, Deputy Assistant U.S. Trade Representative for the Generalized System of Preferences, Office of the U.S. Trade Representative.
* * * * * * * * * * * * * * * * * * * * 

EXIM_a44. USTR Seeks Comments on Negotiating Objectives for a U.S.-European Union Trade Agreement
(Source: Federal Register, 15 Nov 2018.)
 
83 FR 57526-57527: Request for Comments on Negotiating Objectives for a U.S.-European Union Trade Agreement
* AGENCY: Office of the United States Trade Representative.
* ACTION: Request for comments and notice of public hearing.
* SUMMARY: On October 16, 2018, the United States Trade Representative notified Congress of the Administration’s intention to enter into negotiations on a trade agreement with the European Union (EU). The Office of the United States Trade Representative (USTR) is seeking public comments on a proposed U.S.-EU trade agreement, including U.S. interests and priorities, in order to develop U.S. negotiating positions. You can provide comments in writing and orally at a public hearing. The Administration’s aim in negotiations with the EU is to address both tariff and non-tariff barriers and to achieve fairer, more balanced trade.
* DATES:
  – December 10, 2018: Deadline for the submission of written comments and for written notification of your intent to testify, as well as a summary of your testimony at the public hearing.
  – December 14, 2018: The Trade Policy Staff Committee (TPSC) will hold a public hearing beginning at 9:30 a.m., at the Auditorium of the Herbert C. Hoover Building, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230.
* ADDRESSES: You should submit notifications of intent to testify and written comments through the Federal eRulemaking Portal: https://www.regulations.gov. Follow the instructions for submitting comments in parts 2 and 3 below. For alternatives to on-line submissions, please contact Yvonne Jamison at (202) 395-3475.
* FOR FURTHER INFORMATION CONTACT: For procedural questions concerning written comments, please contact Yvonne Jamison at (202) 395-3475. Direct all other questions to David Weiner, Deputy Assistant U.S. Trade Representative for Europe, at (202) 395-9679.
* SUPPLEMENTARY INFORMATION: …
  The TPSC invites interested parties to submit comments and/or oral testimony to assist USTR as it develops negotiating objectives and positions for the agreement, including with regard to objectives identified in section 102 of the Bipartisan Congressional Trade Priorities and Accountability Act of 2015 (19 U.S.C. 4201). In particular, the TPSC invites interested parties to comment on issues including, but not limited to, the following:
   (a) General and product-specific negotiating objectives for the proposed agreement.
   (b) Relevant barriers to trade in goods and services between the U.S. and the EU that should be addressed in the negotiations.
   (c) Economic costs and benefits to U.S. producers and consumers of removal or reduction of tariffs and removal or reduction of non-tariff barriers on articles traded with the EU.
   (d) Treatment of specific goods (described by HTSUS numbers) under the proposed agreement, including comments on:
   i. Product-specific import or export interests or barriers.
   ii. Experience with particular measures that should be addressed in the negotiations.
   iii. Ways to address export priorities and import sensitivities in the context of the proposed agreement.
   (e) Customs and trade facilitation issues that should be addressed in the negotiations.
   (f) Sanitary and phytosanitary measures and technical barriers to trade that should be addressed in the negotiations.
   (g) Other measures or practices that undermine fair market opportunities for U.S. businesses, workers, farmers, and ranchers that should be addressed in the negotiations.
   USTR must receive written comments no later than Monday, December 10, 2018.
   USTR requests that small businesses, generally defined by the Small Business Administration as firms with fewer than 500 employees, or organizations representing small business members, which submit comments to self-identify as such, so that we may be aware of issues of particular interest to small businesses.
   The TPSC will hold a hearing on December 14, 2018, in the Auditorium of the Herbert C. Hoover Building, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230. If necessary, the hearing will continue on the next business day. Persons wishing to testify at the hearing must provide written notification of their intention by December 10, 2018. The notification of intent to testify must be made in the `type comment’ field under docket number USTR-2018-0035 on the www.regulations.gov website and should include the name, address, and telephone number of the person presenting the testimony. You should attach a summary of the testimony by using the `upload file’ field. The file name also should include who will be presenting the testimony. The TPSC limits remarks at the hearing to no more than five minutes to allow for possible questions. …
 
  Edward Gresser, Chair of the Trade Policy Staff Committee, Office of the United States Trade Representative.
* * * * * * * * * * * * * * * * * * * * 

OGSOTHER GOVERNMENT SOURCES

OGS_a15. Items Scheduled for Publication in Future Federal Register Editions
(Source: Federal Register)

* Commerce; PROPOSED RULES; Regulatory Agenda; Semiannual Regulatory Agenda [Publication Date: 16 November 2018.]
 
* Treasury; Foreign Assets Control Office; NOTICES; Blocking or Unblocking of Persons and Properties [Publication Date: 16 November 2018.]
 
* U.S. Customs and Border Protection; NOTICES; Meetings; Commercial Customs Operations Advisory Committee [Publication Date: 16 November 2018.]

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

OGS_a2
6. 
Commerce/BIS: (No new postings.)

(Source: 
Commerce/BIS)

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

(Source:
CSMS #18-000679, 15 Nov 2018.)
 
An updated ABI Software Vendors List has been posted here.

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

(Source:
DoD/DSS, 15 Nov 2018.)
 
The Knowledge Center will be closing at 3 pm on Wednesday, November 21 and remained closed on Friday, November 23, 2018. Normal business hours will resume Monday November 26, 2018.

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

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

NWSNEWS

NWS_a0
10. Reuters: “U.S. Sanctions 17 Saudis over Killing of Journalist Khashoggi”
(Source: Reuters, 15 Nov 2018.) [Excerpts.]
 
The U.S. Treasury imposed sanctions on 17 Saudi officials on Thursday for their role in the killing last month of Jamal Khashoggi at the Saudi Arabian consulate in Istanbul, Turkey, the first concrete response by the Trump administration to the journalist’s death.
 
Among those sanctioned were Saud al-Qahtani, who has been removed from his position as a top aide to Crown Prince Mohammed bin Salman, as well as the Saudi Consul General Mohammed Alotaibi and members of a 15-person team Turkey has identified as being involved in Khashoggi’s death.
 
The announcement was unusual for Washington, which rarely imposes sanctions on Saudi nationals. The sanctions do not target the Riyadh government, an important U.S. security and economic ally.
 
It also allows President Donald Trump’s administration to stop short of any action that might affect lucrative U.S. arms deals with Saudi Arabia that he has vowed to preserve.
 
The sanctions limit access to the U.S. financial system and freeze the individuals’ assets. They will be implemented under the Global Magnitsky Human Rights Accountability Act, which targets perpetrators of serious human rights abuses and corruption. …

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

NWS_a1
11. ST&R Trade Report: “ACE Functionality Deployments for Broker Permits, GSP Pushed Back”

 
U.S. Customs and Border Protection recently posted on its website the following tentative schedule for deployment of additional functionality within the Automated Commercial Environment (
click here for more information on these developments).
 
  – Feb. 9, 2019: create unique identifiers for Centers of Excellence and Expertise to be added to all post-release work flow in ACE
  – Feb. 9, 2019: automate and modernize the CBP Form 5106 (importer identification input record) input process via electronic data interchange and the ACE secure data portal
  – March 2019: mandatory updates related to the renewal of the Generalized System of Preferences (postponed from December 2018)
  – July 2019: add phone numbers and email addresses as optional data elements on the manifest for all modes of transportation
  – August 2019: provide greater visibility into Section 321 low-value shipments (entry type 86)
  – June 2020: incorporate partner government agency requirements into the e214 foreign-trade zone admission process
  – August 2020: transition all brokers to a single national permit and eliminate multiple district permits and waivers (postponed from August 2019)
 
CBP notes that it has removed several deployments from this schedule, including electronic vessel manifest confidentiality, vessel agent account type, and non-intrusive inspection program.

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

COMMCOMMENTARY

(Source:  
Volkov Law Group Blog, 14 Nov 2018. Reprinted by permission.)
 
* Author: Michael Volkov, Esq., Volkov Law Group,
mvolkov@volkovlaw.com, 240-505-1992.
 
NAVEX Global continues to publish important research and guidance on ethics and compliance program (benchmark reports for hotline systems
here, third-party risk management systems
here, and policies and procedure management
here).
 
In an interesting new report (
here), NAVEX Global enlisted Professor Kyle Welch from George Washington University’s Business School to analyze years of NAVEX Global’s hotline data.  Professor Welch was given access to over ten years (2004 to 2017) of NAVEX Global’s hotline data (which was anonymized), which totaled approximately 3 million internal report records from 5000 public companies, including more than half of the Fortune 500.
 
Professor Welch’s conclusions are significant.  Companies that implement robust and widely-used internal reporting systems benefit from a flow of information from reporting employees and are better able to identify and remediate problems before the problem becomes larger and costlier.
 
The study shows a correlation between increased use of internal hotline reporting systems and improved business performance.  The benefits to a company increase with use of the hotline reporting system.
Increased Return on Assets.  Higher levels of hotline usage correlates with increased profitability and productivity as measured by return on assets (ROA).  The specific amount of improvement was approximately a 2.8 percent increase.
Fewer Material Lawsuits.  Companies with higher levels of reporting were subject to 6.9 percent fewer pending material lawsuits in the subsequent three years than those with lower levels of hotline activity.  Companies that actively monitored their hotline reports had even lower rates of material lawsuits.
Lower Litigation Costs.  When material lawsuits were initiated against companies, companies with higher hotline usage faced 20.4 percent less in total settlement amounts.  This finding suggests that companies with active hotline reporting system are able to intervene and remediate a problem before the problem results in a significant lawsuit
 
Fewer External Whistleblower Reports.  Companies with more internal reporting activity experienced fewer external reports (to the Occupational Health & Safety Administration, which receives whistleblower reports under Section 806 of the Sarbanes-Oxley Act).
 
Professor Welch’s study also found that lower levels of hotline activity were associated with suspect corporate governance and financial reporting.
 
Practices.  Companies with lower-level hotline activity rated poorly on basic governance indices which measure governance practices such as staggered boards, limited shareholder rights and golden parachute payments for senior executives.
Earnings Management.  Firms with lower-level hotline activity also tend to claim, “discretionary accruals” (as an indicator of earnings management) more often.  In addition, companies with more discretionary accruals tended to experience more external whistleblower reports.

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

(Source:
Bulletin of Atomic Scientists, 13 Nov 2018.) [Excerpts.]
 
* Author: Zoe Stanley-Lockman, Associate Research Fellow in the Institute of Defense and Strategic Studies at the S. Rajaratnam School of International Studies within Nanyang Technological University, Singapore.
 
Modern export-control systems are streaked with a brush of irony: The very civilian agencies that determine governmental approaches to exporting emerging technologies do not leverage these same technologies to perform key tasks. Rightfully, experts raise alarm at states and non-state actors that weaponize artificial intelligence (AI), yet they pay relatively little attention to how the government itself can use AI to shore up nonproliferation of sensitive technologies.
 
For years, both the military and intelligence communities have sought applications for emerging technologies suitable for their organizations. …  
 
A key question in years to come will be: How can civilian agencies in the national-security space leverage artificial intelligence to fortify security interests, with far fewer resources than their heavyweight military and intelligence counterparts? One answer comes from South Korea. …

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


ENEDITOR’S NOTES

* Felix Frankfurter (15 Nov 1882 – 22 Feb 1965; was an Austrian-American lawyer, professor, and jurist who served as an Associate Justice of the Supreme Court of the United States. Frankfurter served on the Supreme Court from 1939 to 1962 and was a noted advocate of judicial restraint in the judgments of the Court.)
  – “There is no greater inequality than the equal treatment of unequals.”
  – “It simply is not true that war never settles anything.”

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

EN_a315
. 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: 15 Nov 2018:
83 FR 57308-57318: Democratic Republic of the Congo 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_a0316
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.

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* 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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