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18-1120 Tuesday “Daily Bugle”

18-1120 Tuesday “Daily Bugle”

Tuesday, 20 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. Commerce/BIS Seeks Comments on Section 232 National Security Investigations of Steel Imports 
  2. Commerce/BIS Seeks Comments on License Transfer and Duplicate License Services 
  3. DHS/CBP Seeks Comments on Form 1300, Vessel Entrance or Clearance Statement 
  1. Items Scheduled for Publication in Future Federal Register Editions
  2. Commerce/BIS: Gregory Allen Justice of Safford, AZ, Denied Export Privileges for 10 Years
  3. DHS/CBP Announces ACE Certification Scheduled Maintenance on 21 Nov
  4. State/DDTC: (No new postings.)
  5. Treasury/OFAC Posts Syria Shipping Advisory
  6. EU Council Announces Political Agreement Reached on an EU Framework for the Screening of Investments
  7. EU Posts Decision on Combating Illicit Trade in and Proliferation of Small Arms in Member States of the League of Arab States
  8. EU Posts Regulation on Classification of Insulated Cables in the Combined Nomenclature
  9. Hong Kong/TID Announces System Maintenance of All E-Services on 22 Nov
  1. Defense News: “Can Data Be Shared among US, Chinese and Russian Aircraft? Sudan Did It.”
  2. Expeditors News: “WCO Information Management Sub-Committee Augments Digital Customs Agenda”
  3. Global Trade News: “Australia Concludes Free Trade Agreement with Hong Kong”
  4. Washington Post: “Trump Administration Proposal Could Target Exports of the Tech behind Siri, Self-Driving Cars, and Supercomputers”
  1. M. O’Kane: “USA and SocGen Agree $1.34bn DPA over Sanctions Violations”
  2. M. Volkov: “Behavioral Studies and Compliance”
  1. ECS Presents “Seminar Level III: Mastering ITAR/EAR Challenges” in Nashville, TN on 30 Apr – 1 May 2019
  1. Bartlett’s Unfamiliar Quotations 
  2. Are Your Copies of Regulations Up to Date? Latest Amendments: ATF (15 Jan 2016), Customs (19 Sep 2018), DOD/NISPOM (18 May 2016), EAR (2 Nov 2018), FACR/OFAC (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. Commerce/BIS Seeks Comments on Section 232 National Security Investigations of Steel Imports
(Source: Federal Register, 20 Nov 2018.) [Excerpts.]
 
83 FR 58528: Submission for OMB Review; Comment Request
   The Department of Commerce will submit to the Office of Management and Budget (OMB) for clearance the following proposal for collection of information under the provisions of the Paperwork Reduction Act (44 U.S.C. chapter 35).
  – Agency: Bureau of Industry and Security.
  – Title: Procedures for Submitting Requests for Expedited Relief from Quantitative Limits–Existing Contract: Section 232 National Security Investigations of Steel Imports.
  – Form Number(s): OMB 0694-0140.
  – OMB Control Number: 0694-0140. …
  – Needs and Uses: In the Proclamation of August 29, President Trump directed that as soon as practicable, the Secretary of Commerce shall issue procedures for requests for exclusions described in clause 2 to allow for exclusion requests for countries subject to quantitative limitations. The U.S. Department of Commerce will create an exclusion process for clause 2 by posting the newly created form on the Commerce website. Requesters will complete this form and send the form, the required certification, and any needed attachments to the U.S. Department of Commerce at the email address steel232-exp@bis.doc.gov. The posting of this exclusion procedure on the Commerce website will fulfill the Presidential directive included in the most recent Proclamation, as well as the earlier Proclamations that directed the Secretary of Commerce to create an exclusion process to ensure users of steel in the United States would continue to have access to the steel that they may need. …
   Written comments and recommendations for the proposed information collection should be sent within 30 days of publication of this notice to OIRA_Submission@omb.eop.gov.
 
  Sheleen Dumas, Departmental Lead PRA Officer, Office of the Chief Information Officer.

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EXIM_a2

2. Commerce/BIS Seeks Comments on License Transfer and Duplicate License Services
(Source: Federal Register, 20 Nov 2018.) [Excerpts.]
 
83 FR 58528-58529: Submission for OMB Review; Comment Request
  The Department of Commerce will submit to the Office of Management and Budget (OMB) for clearance the following proposal for collection of information under the provisions of the Paperwork Reduction Act (44 U.S.C. chapter 35).
  – Agency: Bureau of Industry and Security.
  – Title: License Transfer and Duplicate License Services.
  – Form Number(s): N/A.
  – OMB Control Number: 0694-0126. …
  – Needs and Uses: The collection is necessary under Section 750.9 of the Export Administration Regulation (EAR) which outlines the process for obtaining a duplicate license when a license is lost or destroyed. Section 750.10 of the EAR explains the procedure for transfer of ownership of validated export licenses. Both activities are services provided after the license approval process. The supporting statement will use the terms “transfer” and “duplicate” to distinguish the unique activities of each. When no distinction is made, the response supports both activities. …
  Written comments and recommendations for the proposed information collection should be sent within 30 days of publication of this notice to OIRA_Submission@omb.eop.gov.
 
  Sheleen Dumas, Departmental Lead PRA Officer, Office of the Chief Information Officer.

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EXIM_a3

3
. DHS/CBP Seeks Comments on Form 1300, Vessel Entrance or Clearance Statement

(Source: Federal Register, 20 Nov 2018.) [Excerpts.]
 
83 FR 58589-58590: Agency Information Collection Activities: Vessel Entrance or Clearance Statement
* AGENCY: U.S. Customs and Border Protection (CBP), Department of Homeland Security.
* ACTION: 60-Day Notice and request for comments; extension of an existing collection of information. …
* ADDRESSES: Written comments and/or suggestions regarding the item(s) contained in this notice must include the OMB Control Number 1651-0019 in the subject line and the agency name. To avoid duplicate submissions, please use only one of the following methods to submit comments:
  (1) Email. Submit comments to: CBP_PRA@cbp.dhs.gov.
  (2) Mail. Submit written comments to CBP Paperwork Reduction Act Officer, U.S. Customs and Border Protection, Office of Trade, Regulations and Rulings, Economic Impact Analysis Branch, 90 K Street NE, 10th Floor, Washington, DC 20229-1177.
* FOR FURTHER INFORMATION CONTACT: Requests for additional PRA information should be directed to Seth Renkema, Chief, Economic Impact Analysis Branch, U.S. Customs and Border Protection, Office of Trade, Regulations and Rulings, 90 K Street NE, 10th Floor, Washington, DC 20229-1177, Telephone number (202) 325-0056 or via email CBP_PRA@cbp.dhs.gov. Please note that the contact information provided here is solely for questions regarding this notice. Individuals seeking information about other CBP programs should contact the CBP National Customer Service Center at 877-227-5511, (TTY) 1-800-877-8339, or CBP website.
* SUPPLEMENTARY INFORMATION: …
  – Title: Vessel Entrance or Clearance Statement.
  – OMB Number: 1651-0019.
  – Form Number: CBP Form 1300. …
  – Abstract: CBP Form 1300, Vessel Entrance or Clearance Statement, is used to collect essential commercial vessel data at time of formal entrance and clearance in U.S. ports. The form allows the master to attest to the truthfulness of all CBP forms associated with the manifest package, and collects information about the vessel, cargo, purpose of entrance, certificate numbers, and expiration for various certificates. It also serves as a record of fees and tonnage tax payments in order to prevent overpayments. CBP Form 1300 was developed through agreement by the United Nations Intergovernmental Maritime Consultative Organization (IMCO) in conjunction with the United States and various other countries. This form is authorized by 19 U.S.C. 1431, 1433, and 1434, and provided for by 19 CFR part 4, and accessible here. …
 
  Dated: November 15, 2018.
Seth D. Renkema, Branch Chief, Economic Impact Analysis Branch, U.S. Customs and Border Protection.

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OGSOTHER GOVERNMENT SOURCES

OGS_a14. Items Scheduled for Publication in Future Federal Register Editions
(Source: Federal Register)

* Treasury; Foreign Assets Control Office; NOTICES; Blocking or Unblocking of Persons and Properties  [Publication Date: 21 November 2018.]

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

(Source:
Commerce/BIS, 20 Nov 2018.)
 
* Respondent: Gregory Allen Justice, Safford, AZ
* Charges: On 19 September 2017 in the U.S. District Court for the Central District of California, Gregory Allen Justice (“Justice”) was convicted of violating Section 38 of the Arms Export Control Act (22 U.S.C. § 2778 (2012)) (“AECA”), among other crimes. Justice was convicted of violating Section 38 of the AECA by knowingly and willfully attempting to export, cause others to export, and aid and abet the export to Russia, for the intended benefit of the Russian Government, of defense articles designated on the United States Munitions List (“USML”), without the required U.S. Department of State licenses. Justice, a Boeing engineer, knowingly and willfully sold and provided USML-controlled technical data relating to U.S. military satellite programs to a person he believed to be an agent of a Russian intelligence service, but who was in fact an undercover Federal Bureau of Investigation employee. Justice was sentenced to 60 months in prison, three years of supervised release, and a $200 special assessment.
* Debarred: Based on the conviction of Justice and subsequent review by BIS, Justice has been denied export privileges for a period of 10 years from the date of his conviction, until 19 September 2027
* Date of Order: 15 November 2018
* * * * * * * * * * * * * * * * * * * *

(Source:
CSMS #18-000690, 20 Nov 2018.)
 
There will be ACE CERTIFICATION Scheduled Maintenance on Wednesday evening, November 21, 2018 from 1700 ET to 2000 ET for ACE Infrastructure maintenance.

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OGS_a47
State/DDTC: (No new postings.)

(Source: 
State/DDTC)

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(Source:
Treasury/OFAC, 20 Nov 2018.) [Excerpts.]
 
The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC), with the U.S. Department of State and the U.S. Coast Guard, is issuing
this advisory to alert persons globally to the significant U.S. sanctions risks for parties involved in petroleum shipments to Syria.  These shipments create significant sanctions risk for entities and individuals in the shipping industry, including insurers, shipping companies, financial institutions, and vessel owners, managers, and operators.
 
In addition, the following changes to the Specially Designated Nationals List occurred today: …

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(Source:
Council of the European Union, 20 Nov 2018.) [Excerpts.]
 
The EU will soon be able to coordinate scrutiny of investments from third countries in strategic sectors to check that they do not threaten security or public order.
 
The Presidency today reached a provisional agreement with European Parliament representatives on an EU framework for screening foreign direct investments (FDIs). The agreement will now be submitted for political endorsement by EU ambassadors. …
 
The EU is the number one destination for FDIs and is a very open market. However, in recent years there has been a surge in investments relating to critical EU assets which are not the result of normal market forces. For example, opaque state-owned enterprises or private firms with close government links have been buying EU firms using cutting-edge or dual use technologies (such as artificial intelligence, robotics or nanotechnologies) and strategic infrastructure assets which could have a potential impact on the EU’s security or public order.
 
Currently, fewer than half of EU member states have legislation in place that allows them to review FDIs. On the basis of the rules agreed today, member states will retain the power to review and potentially block foreign direct investment on security and public order grounds. In the same way, they will not be required to adopt or maintain a screening mechanism. However, existing and new mechanisms will have to meet a number of EU-wide characteristics, such as the respect of the non-discrimination principle, the protection of confidential information, the right to judicial redress against national authorities’ decisions or clearly defined applicable procedural rules.
 
The regulation will enable the Commission to issue advisory opinions to the member states where it considers that an investment, whether planned or completed, would be likely to affect security or public order in one or more member state.
 
The text also foresees a cooperation mechanism between member states and the Commission. Member states will need to inform each other and the Commission of any foreign direct investment that is undergoing screening by their national authority. Upon request, they will also need to make available certain information, such as the ownership structure of the foreign investor and the financing of the investment.
Next steps
 
The agreement will be submitted to EU ambassadors for endorsement on behalf of the Council, following technical finalisation of the text. Parliament and Council will then be called on to adopt the proposed regulation at first reading.

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OGS_710. EU Posts Decision on Combating Illicit Trade in and Proliferation of Small Arms in Member States of the League of Arab States
(Source:
Official Journal of the European Union, 20 Nov 2018.)
 
Regulations:
* Council Decision (CFSP) 2018/1789 of 19 November 2018 in support of combating the illicit trade in and proliferation of small arms and light weapons in the Member States of the League of Arab States

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(Source:
Official Journal of the European Union, 20 Nov 2018.)
 
Regulations:
* Commission Implementing Regulation (EU) 2018/1785 of 15 November 2018 concerning the classification of certain goods in the Combined Nomenclature

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(Source:
Hong Kong Trade and Industry Department, 20 Nov 2018.)
 
All e-services of our website will be suspended from 18:30 to 23:00 on 22 November 2018 (Thursday) due to system maintenance.

We apologize for any inconvenience caused.

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NWSNEWS

NWS_a0
13. Defense News: “Can Data Be Shared among US, Chinese and Russian Aircraft? Sudan Did It.”
(Source: Defense News, 20 Nov 2018.)
 
Sudan has been flying military aircraft of Russian and Chinese origin alongside American fighter jets – and sharing data among them, according to the chief of staff of the Sudanese Air Force.
 
  “Sudanese engineers have been able to make an adaptation between Eastern and Western platforms,” Lt. Gen. Pilot Salah Eldin Abdelkhaliq Saeed said at the second Manama Airpower Symposium this month. “They have even entered American, Russian and Chinese radars in one command-and-control center. We have provided all our platforms with a unified Sudanese surveillance system and Sudanese communication devices.”
 
Russian fighters operating in Sudan include the Mig-29, Mig-23, Su-24 and Su-25, as well as the AN-26, AN-30, AN-32, AN-12 and Ilyushin Il-76 Russian military transport aircraft.
 
Sudan is also operating the Chinese A-5, PT-6, FTC-2000 and K-8 aircraft, in addition to American C-130s, French Puma helicopters and German Bo 105 helicopters.
 
Saeed noted that many of the European and American military aircraft cannot be operated by the Sudanese Air Force because there are no spare parts for the platforms, and Sudan lacks the maintenance capabilities to update them. This is especially caused by U.S. sanctions on Sudan that prevent the African country from cooperating with some American and European companies.
 
The U.S. lifted some sanctions on Sudan in October 2017, but Sudan remains on a list of state sponsors of terrorism. The restrictions on that list “include restrictions on U.S. foreign assistance” and “a ban on defense exports and sales,” according to the U.S. State Department.

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(Source:
Expeditors News, 19 Nov 2018.)
 
On November 7, 2018, the World Customs Organization (WCO) announced the Information Management Sub-committee (IMSC) augmented the digital customs agenda during their 75th session, held on October 29 and 30, 2018.
 
The IMSC approved the new WCO Data Model Business Guide, which is described as a “…non-technical resource for senior and middle level management of Customs and stakeholders – aimed at enhancing the understanding of strategic and business perspective of WCO Data Model.”
 
Additionally, the IMSC discussed the WCO Digital Customs Program, blockchain, and cloud computing by bringing forward discussions on new technology and processes.
 
The IMSC agreed to the further development of the draft Handbook on Information Security as they discussed information security and cyber security threats.
 
The WCO press release may be found
here.

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NWS_a315. Global Trade News: “Australia Concludes Free Trade Agreement with Hong Kong”

(Source: Integration Point Blog, 20 Nov 2018.)
 
On November 15, Australia and Hong Kong signed a Declaration of Intent signifying the successful conclusion of negotiations on the Australia-Hong Kong Free Trade Agreement (FTA) and an Investment Agreement. Australian Minister for Trade, Tourism and Investment, Simon Birmingham, and Hong Kong’s Secretary for Commerce and Economic Development, Edward Yau finalized the deal on the sidelines of 30th Asia-Pacific Economic Cooperation (APEC) Ministerial Meeting in Port Moresby, Papua New Guinea.
 
The negotiations for the FTA and Investment Agreement began in 2017. The agreements aim to to expand existing market access between the two regions, and mark a significant milestone in the two regions’ history of fruitful trade relationships.
 
According to the Australian Department of Foreign Affairs and Trade, in 2017 Australia was Hong Kong’s seventeenth largest export destination and twelfth largest import source. In that year, the two way trade in merchandise and services between the two regions amounted to A$ 18.76 billion.
 
Mutual benefits of FTA
 
Yau, in the
joint statement issued after the talks, emphasized that Australia is already a significant trading partner of Hong Kong and that these agreements are meant to strengthen their bilateral trade and investment relationship with Australia.
The agreements cover trade processes in merchandise, services, investment and other related areas with legal certainty. In addition to the added benefit of duty free imports of Hong Kong goods in Australian markets, once the agreement enters into force, Australia will reap the benefit of zero tariffs on all exports to Hong Kong, thereby strengthening its agricultural, seafood, beef and pork, and winemaking industries.
 
The FTA and Investment Agreement will also open the floodgates for Australian investments in Hong Kong. They will provide regulatory certainty for Australian businesses through enhanced and modern trading norms for e-commerce, financial services, telecommunications, and intellectual property. Additionally, the deal ensures a guaranteed certainty of access for the Australian suppliers of education, professional, financial, transport, construction, tourism, and recreational services in the Hong Kong services sector. Both regions anticipate greater market access.
 
Next steps
 
After ratification of this agreement, Hong Kong will secure a free flow of goods with as many as nineteen nations and Australia will have FTAs with seven of its top eight export markets for goods and services.  Hong Kong and Australia are expected to ratify these agreements in their respective legislative bodies in the early half of 2019.
 
If you want to learn more about the Australia-Hong Kong FTA, read the
Government of Hong Kong’s press release or
Australia’s Minister for Trade, Tourism and Investment press release.

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NWS_a416
. Washington Post: “Trump Administration Proposal Could Target Exports of the Tech behind Siri, Self-Driving Cars, and Supercomputers”

(Source: Washington Post, 20 Nov 2018.) [Excerpts.]
 
Amazon, Apple, Google, IBM and their peers could be subject to new restrictions on how they export the technology behind voice-activated smartphones, self-driving cars and speedy supercomputers to China under a proposal floated Monday by the Trump administration.
 
For the U.S. government, its pursuit of new regulations marks a heightened effort to ensure that emerging technologies, including artificial intelligence, don’t fall into the hands of countries or actors that might pose a national security threat.
 
The official request for public comment, published in the Federal Register, asks whether a long list of AI tools should be subject to stricter export-control rules. The Trump administration’s potential targets include image-recognition software, ultrafast quantum computers, advanced computer chips, self-driving cars and robots. Companies that make those products and services might, for instance, have to obtain licenses before selling them to foreign governments or partnering with some researchers in certain countries. … 

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COMMCOMMENTARY

(Source:
European Sanctions Blog, 20 Nov 2018.)
 
* Author: Michael O’Kane, Esq., Peters & Peters Solicitors LLP,
mokane@petersandpeters.com.
 
Société Générale SA (“SocGen”) has entered into a 3-year Deferred Prosecution Agreement (DPA) with the USA over sanctions violations; namely, for processing (between 2004 and 2010) US dollar transactions involving countries, persons or entities subject to US sanctions. Under the DPA, SocGen has agreed to pay penalties totaling $1,340,165,000, and to implement remedial measures as required by its regulators. The penalty comprises:
 
  – $717,200,000 to the US Attorney’s Office of the Southern District of New York (
Press Release);
  – $162,800,000 to the New York County District Attorney’s Office (
Press Release);
  – $53,900,000 to OFAC (NoticeEnforcement Information, and Settlement Agreement);
  – $81,265,000 to the Federal Reserve (
Press Release); and
  – $325,000,000 to the New York State Department of Financial Services (
Press Release).
 
We reported in September 2018 that SocGen had allocated approximately €1.1 billion ($1.3 billion) to the matter. Link to SocGen Press Release.

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

(Source:
Volkov Law Group Blog, 20 Nov 2018. Reprinted by permission.)
 
* Author: Michael Volkov, Esq., Volkov Law Group,
mvolkov@volkovlaw.com, 240-505-1992.
 
I am not a cynic when it comes to looking at the latest “fads” in compliance.  Please do not get me wrong.  Compliance is a fast-evolving field that is quickly moving beyond the limited perspective of legal into a new territory, coined by Donna Boehme (
here), the subject-matter expert (“SME”).
 
Donna has a great point – lawyers and other professionals cannot just willy-nilly decree themselves as compliance experts.  There is a real profession that depends on a blending of skillsets to bring about effective ethics and compliance program management.  It is a profession and an expertise all to itself – as it grows and as more people move into the profession, new compliance officers bring perspective, expertise and one key ingredient – experience.  In other words, the best teacher here is experience.
 
One of the new purported magic bullets for compliance professionals is “behavioral studies,” a term that encompasses a variety of social research.  Some of this research is good and helpful, and some of this research is just plain obvious, reinforcing profound grasps of the obvious.
 
My observations or hesitance here is meant to make sure that compliance professionals as SMEs do not get subsumed or sucked into the latest “rage” when it comes to compliance.  No matter how you wrap it up, or how you try to define the compliance profession, it will always be a blend of skillsets, comprising a blend of subject area: legal, management, statistics, accounting, communications, behaviors, economics and perhaps philosophy.
 
From my vantage point, there is plenty of room for professionals with all types of skillsets to contribute to the compliance profession. One is not better nor exclusive of the other. Each perspective is valuable, and each offers benefits to the ultimate goal – design and implementation of an effective ethics and compliance program.
 
Behavioral studies, however, that reinforce common sense are valuable to hear but do not necessarily advance the ball. For example, I have heard or read about studies that confirm the following principles:
  • The Slippery Slope – organizations that tolerate or ignore so-called “minor infractions” are more likely to experience significant compliance misconduct.
My response is pretty clear – of course we know that. Even as a prosecutor, we were well aware of the “broken windows” theory of enforcement suggesting that petty offenses that are ignored breeds a culture or environment in which more significant offenses are likely to occur.
 
Let’s try another:
  • Senior Manager Conformity – When senior managers engage in misconduct or are known to do so, mid-level managers and employees are more apt to “conform” or “model” their behavior to the senior manager.
My response – well of course, if there is a culture of senior manager misconduct, others in the organization may follow suit, notwithstanding their personal ethical values in the interest of “conforming” to the example and/or secure organizational benefits (tangible and intangible) from conforming with the examples set.
 
Hopefully, you are getting my point.
 
On the other side of the equation, there are valuable “studies” that demonstrate the connection between ethical cultures and conduct, rates of misconduct, sustainability and profits and other organizational objectives.
 
In the pure behavioral context, I found fascinating those studies where persons when given a specific set of rules can “cheat” the system to earn immediate and valuable benefits. To me, the interesting results of these studies are that participants often “cheat” at the margins and usually rationalize such cheating as “not such a big deal” or “I am entitled to it.” These studies, in my view, perhaps because I was a federal prosecutor for so long, provide insights into people who engage in misconduct and their thinking patterns.

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TEEX/IM TRAINING EVENTS & CONFERENCES

TE_a219. ECS Presents “Seminar Level III: Mastering ITAR/EAR Challenges” in Nashville, TN on 30 Apr – 1 May 2019

(Source: Suzanne Palmer, spalmer@exportcompliancesolutions.com)
 
* What: Seminar Level III:  Mastering ITAR/EAR Challenges; Nashville, TN
* When: April 30-May 1, 2019
* Sponsor: Export Compliance Solutions (ECS)
* ECS Speaker Panel:  Suzanne Palmer; Lisa Bencivenga; Mal Zerden; Commerce BIS TBD; Scott Jackson
* Register here or by calling 866-238-4018 or email spalmer@exportcompliancesolutions.com

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ENEDITOR’S NOTES

* Arthur Guiterman (20 Nov 1871 – 11 Jan 1943; was an American writer best known for his humorous poems.)
  – “Don’t tell your friends about your indigestion. ‘How are you’ is a greeting, not a question.”
  – “Admitting error clears the score, and proves you wiser than before.”

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EN_a321
. 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_a0322
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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