18-1123 Friday “Daily Bugle”

18-1123 Friday “Daily Bugle”

Friday, 23 November 2018

TOPThe Daily Bugle is a free daily newsletter from Full Circle Compliance, containing changes to export/import regulations (ATF, DOE/NRC, Customs, NISPOM, EAR, FACR/OFAC, FAR/DFARS, FTR/AES, HTSUS, and ITAR), plus news and events. Subscribe here for free subscription. Contact us for advertising inquiries and rates
[The Daily Bugle was not released yesterday, Thursday, 22 November 2018, a U.S. Federal Holiday.]

  1. USTR Initiates Investigation of U.S.-EU Trade Agreement
  1. Items Scheduled for Publication in Future Federal Register Editions 
  2. Commerce/BIS: (No new postings.)
  3. State/DDTC: (No new postings.)
  4. EU Announces Changes Related to TIR Convention 1975, Amends Restrictive Measures Concerning ISIL (Da’esh) and Al-Qaida
  1. Huffington Post: “Pensioner Alexander George Jailed for Trafficking Fighter Jet Parts to Iran”
  2. Miami Herald: “French Bank Fined $1.34 Billion for Violating Cuban Embargo”
  3. Reuters: “France Imposes Sanctions on 18 Saudi Citizens Over Khashoggi Killing”
  4. The Washington Post: “Denmark Joins Germany in Halting Arms Sales to Saudi Arabia”
  1. B. Egan & Z. Wang: “Administration Moves Toward Strengthening Export Controls and Investment Restrictions on “Emerging Technologies”
  2. The Export Compliance Journal: “Société Générale S.A. Fined More Than US$1.3B for Violations of U.S. Sanctions”
  3. T.W. Kassinger & D.J. Ribner: “CFIUS Pilot Program Implementing FIRRMA Becomes Effective”
  1. ECS Presents “Web Meeting Series – Managing Foreign Nationals in the Workplace: Be Confident, Competent, and Compliant” on 11 Dec
  2. FCC Presents “Designing an Internal Compliance Program for Export Controls & Sanctions”, 5 Feb 2019 in Bruchem, the Netherlands
  3. List of Approaching Events: 4 New Events Posted This Week
  1. Bartlett’s Unfamiliar Quotations 
  2. Are Your Copies of Regulations Up to Date? Latest Amendments: ATF (15 Jan 2016), Customs (19 Sep 2018), DOD/NISPOM (18 May 2016), EAR (2 Nov 2018), FACR/OFAC (15 Nov 2018), FTR (24 Apr 2018), HTSUS (1 Nov 2018), ITAR (4 Oct 2018) 
  3. Weekly Highlights of the Daily Bugle Top Stories 



Federal Register, 23 Nov 2018.) 
83 FR 59417-59418: U.S.-EU Trade Agreement: Advice on the Probable Economic Effect of Providing Duty-Free Treatment for Currently Dutiable Imports; Institution of Investigation and Scheduling of Hearing
* AGENCY: United States International Trade Commission.
* ACTION: Notice of investigation and scheduling of a public hearing.
* SUMMARY: Following receipt on November 9, 2018, of a request from the United States Trade Representative (USTR) for a report containing advice and an assessment, the Commission instituted Investigation Nos. TA-131-044 and TPA-105-005, U.S.-EU Trade Agreement: Advice on the Probable Economic Effect of Providing Duty-free Treatment for Currently Dutiable Imports.
* DATES: December 6, 2018: Deadline for filing requests to appear at the public hearing.
  – December 10, 2018: Deadline for filing prehearing briefs and statements.
  – December 18, 2018: Public hearing.
  – January 4, 2019: Deadline for filing post-hearing briefs and submissions.
  – January 4, 2019: Deadline for filing all other written statements.
  – March 19, 2019: Transmittal of Commission report to the USTR.
* ADDRESSES: All Commission offices, including the Commission’s hearing rooms, are located in the U.S. International Trade Commission Building, 500 E Street SW, Washington, DC. All written submissions should be addressed to the Secretary, U.S. International Trade Commission, 500 E Street SW, Washington, DC 20436. The public record for this investigation may be viewed on the Commission’s electronic docket (EDIS) at https://edis.usitc.gov.
* FOR FURTHER INFORMATION CONTACT: Project Leader Diana Friedman (202-205-3433 or diana.friedman@usitc.gov) or Deputy Project Leader Mary Roop (202-708-2277 or mary.roop@usitc.gov) for information specific to this investigation. For information on the legal aspects of this investigation, contact William Gearhart of the Commission’s Office of the General Counsel (202-205-3091 or william.gearhart@usitc.gov). The media should contact Margaret O’Laughlin, Office of External Relations (202-205-1819 or margaret.olaughlin@usitc.gov). Hearing-impaired individuals may obtain information on this matter by contacting the Commission’s TDD terminal at 202-205-1810. General information concerning the Commission may also be obtained by accessing its website (https://www.usitc.gov). Persons with mobility impairments who will need special assistance in gaining access to the Commission should contact the Office of the Secretary at 202-205-2000.
  – Background: In his letter of November 8, 2018, the USTR requested that the Commission provide certain advice under section 131 of the Trade Act of 1974 (19 U.S.C. 2151) and an assessment under section 105(a)(2)(B)(i)(III) of the Bipartisan Congressional Trade Priorities and Accountability Act of 2015 (19 U.S.C. 4204(a)(2)(B)(i)(III)) with respect to the effects of providing duty-free treatment for imports of products from the EU.
  More specifically, the USTR, under authority delegated by the President and pursuant to section 131 of the Trade Act of 1974, requested that the Commission provide a report containing its advice as to the probable economic effect of providing duty-free treatment for imports of currently dutiable products from the EU on (i) industries in the United States producing like or directly competitive products, and (ii) consumers. The USTR asked that the Commission’s analysis consider each article in chapters 1 through 97 of the Harmonized Tariff Schedule of the United States (HTS) for which U.S. tariffs will remain, taking into account implementation of U.S. commitments in the World Trade Organization. The USTR asked that the advice be based on the HTS in effect during 2018 and trade data for 2017.
  In addition, the USTR requested that the Commission prepare an assessment, as described in section 105(a)(2)(B)(i)(III) of the Bipartisan Congressional Trade Priorities and Accountability Act of 2015, of the probable economic effects of eliminating tariffs on imports from the EU of those agricultural products described in the list attached to the USTR’s request letter on (i) industries in the United States producing the products concerned, and (ii) the U.S. economy as a whole. The USTR’s request letter and list of agricultural products are posted on the Commission’s website at https://www.usitc.gov.
  For the purposes of these analyses, the USTR requested that the Commission assume that the United Kingdom will no longer be a Member State of the EU. The USTR indicated that those sections of the Commission’s report that relate to the advice and assessment of probable economic effects will be classified. The USTR also indicated that he considers the Commission’s report to be an interagency memorandum that will contain pre-decisional advice and be subject to the deliberative process privilege. As requested, the Commission will provide its report to USTR as soon as possible, which is March 19, 2019.
  – Public Hearing: A public hearing in connection with this investigation will be held at the U.S. International Trade Commission Building, 500 E Street SW, Washington, DC, beginning at 9:30 a.m. on Tuesday, December 18, 2018. Requests to appear at the public hearing should be filed with the Secretary no later than 5:15 p.m., Thursday, December 6, 2018, in accordance with the requirements in the “Written Submissions” section below. All prehearing briefs and statements should be filed not later than 5:15 p.m., Monday, December 10, 2018, and all post-hearing briefs and statements should be filed not later than 5:15 p.m., Friday, January 4, 2019. For further information, call 202-205-2000.
  – Written Submissions: In lieu of or in addition to participating in the hearing, interested parties are invited to file written submissions concerning this investigation. All written submissions should be addressed to the Secretary, and should be received not later than 5:15 p.m., January 4, 2019. All written submissions must conform to the provisions of section 201.8 of the Commission’s Rules of Practice and Procedure (19 CFR 201.8). Section 201.8 and the Commission’s Handbook on Filing Procedures require that interested parties file documents electronically on or before the filing deadline and submit eight (8) true paper copies by 12:00 p.m. Eastern Time on the next business day. In the event that confidential treatment of a document is requested, interested parties must file, at the same time as the eight paper copies, at least four (4) additional true paper copies in which the confidential information must be deleted (see the following paragraphs for further information regarding confidential business information). Persons with questions regarding electronic filing should contact the Office of the Secretary, Docket Services Division (202-205-1802).
  – Confidential Business Information: Any submissions that contain confidential business information must also conform to the requirements of section 201.6 of the Commission’s Rules of Practice and Procedure (19 CFR 201.6). Section 201.6 of the rules requires that the cover of the document and the individual pages be clearly marked as to whether they are the “confidential” or “non-confidential” version, and that the confidential business information is clearly identified by means of brackets. All written submissions, except for confidential business information, will be made available for inspection by interested parties.
  The Commission may include some or all of the confidential business information submitted in the course of this investigation in the report it sends to the USTR. Additionally, all information, including confidential business information, submitted in this investigation may be disclosed to and used: (i) By the Commission, its employees and Offices, and contract personnel (a) for developing or maintaining the records of this or a related proceeding, or (b) in internal investigations, audits, reviews, and evaluations relating to the programs, personnel, and operations of the Commission including under 5 U.S.C. Appendix 3; or (ii) by U.S. government employees and contract personnel (a) for cybersecurity purposes or (b) in monitoring user activity on U.S. government classified networks. The Commission will not otherwise disclose any confidential business information in a way that would reveal the operations of the firm supplying the information.
  – Summaries of Written Submissions: Persons wishing to have a summary of their position included in the report should include a summary with their written submission and should mark the summary as having been provided for that purpose. The summary should be clearly marked as “summary” at the top of the page. The summary may not exceed 500 words, should be in MS Word format or a format that can be easily converted to MS Word, and should not include any confidential business information. The summary will be published as provided if it meets these requirements and is germane to the subject matter of the investigation. The Commission will list the name of the organization furnishing the summary and will include a link to the Commission’s Electronic Document Information System (EDIS) where the full written submission can be found.
  By order of the Commission.
  Issued: November 20, 2018.
Lisa Barton, Secretary to the Commission.


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. Items Scheduled for Publication in Future Federal Register Editions

Federal Register)
* Commerce/BIS; NOTICES;
  – Order Denying Export Privileges: Gregory Allen Justice; and
  – Procedures for Participating in User Testing of the New Commerce 232 Exclusion Process Portal [Pub. Dates: 26 Nov 2018.]
* Treasury/OFAC; NOTICES; Blocking or Unblocking of Persons and Properties [Pub. Date: 26 Nov 2018.]

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

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

State/DDTC: (No new postings.)


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EU Announces Changes Related to TIR Convention 1975, Amends Restrictive Measures Concerning ISIL (Da’esh) and Al-Qaida

Official Journal of the European Union, 22 Nov 2018.) 
International Agreements (22 Nov 2018)
Regulations (22 Nov 2018) 

Commission Implementing Regulation (EU) 2018/1809 of 22 November 2018 amending for the 293rd time Council Regulation (EC) No 881/2002 imposing certain specific restrictive measures directed against certain persons and entities associated with the ISIL (Da’esh) and Al-Qaida organizations

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Huffington Post, 22 Nov 2018.) [Excerpts.] 
He was prosecuted for violating Weapons of Mass Destruction controls.
A retired company boss has been jailed for trafficking fighter jet parts to Iran in violation of Weapons of Mass Destruction controls.
Alexander George, 77, from Bristol, was sentenced to two-and-a-half years for shipping military items to Iran, including Russian MiG and US F4 Phantom parts sent through various companies and countries.
Two others – Paul Attwater, 65, and his 66-year-old wife Iris, both of Telford, Shropshire, were handed suspended six-month prison sentences last month for sourcing dual-use aircraft parts from the US and shipping them to George’s companies in Malaysia and Dubai, which then sent them to Iran.
The UK operates a strict licensing regime to uphold international sanctions and to ensure military equipment and dual-use items, which could be used by both the military and civilian sectors, do not fall into the wrong hands. … 

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Miami Herald: “French Bank Fined $1.34 Billion for Violating Cuban Embargo”
Miami Herald, 20 Nov 2018.) [Excerpts.] 
U.S. government agencies have imposed fines totaling $1.34 billion on the French bank Société Générale (SG) for transactions that violated sanctions on Cuba and other countries.
Federal prosecutors in New York also accused SG of conspiring to violate the Trading with the Enemy law and the embargo on Cuba for what they called “SG’s role in processing billions of transactions using the U.S. financial system, in connection with credit facilities involving Cuba.”
Under an agreement between the French bank and the U.S. government, SG will pay the fines and establish controls to avoid future violations. In exchange, the U.S. has agreed to drop the charges in three years. … 

SG processed 1,077 transactions totalling more than $5.56 billion in violation of U.S. sanctions on Cuba, Iran and Sudan, according to an OFAC announcement. … 

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Reuters: “France Imposes Sanctions on 18 Saudi Citizens Over Khashoggi Killing”
Reuters, 22 Nov 2018.) [Excerpts.] 
France said on Thursday it had imposed sanctions, including travel bans, on 18 Saudi citizens linked to the murder of Saudi journalist Jamal Khashoggi and said more could follow depending on results of an investigation.
The foreign ministry did not name the individuals but said in a statement that the move was in coordination with European partners, notably Germany. Berlin on Monday also banned 18 Saudis and moved to halt all arms sales to Saudi Arabia.
The bans bind all members of the European Union’s passport-free Schengen zone, it said. … 
French reaction has been relatively guarded given it is keen to retain its influence with Riyadh and protect commercial relations spanning energy, finance and weapons sales. … 

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The Washington Post: “Denmark Joins Germany in Halting Arms Sales to Saudi Arabia”
The Washington Post, 22 Nov 2018.) [Excerpts.] 
Denmark became the second European country to halt future arms exports to Saudi Arabia on Thursday, following a similar decision by neighboring Germany earlier this month. The Danish announcement comes the same week President Trump backed Saudi Crown Prince Mohammed bin Salman, 
despite the CIA assessing that he ordered the killing of journalist Jamal Khashoggi. 
Denmark’s ban includes goods that can be used both for military and civilian purposes but is still less expansive than the German measures, which also included sales that had already been approved.

While the Nordic country is a tiny arms equipment exporter in comparison to bigger players such as the United States, Britain or France, its decision will likely exacerbate concerns within the European arms industry of a growing anti-Saudi consensus in the European Union and beyond. … 

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B. Egan & Z. Wang: “Administration Moves Toward Strengthening Export Controls and Investment Restrictions on “Emerging Technologies”

Steptoe International Compliance Blog, 20 Nov 2018.)
* Authors: Brian Egan, Esq., 
began@steptoe.com; and Zhu (Judy) Wang, Esq., 
zwang@steptoe.com.  Both of Steptoe & Johnson LLP.
On November 19, 2018, the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) took its first step towards a potentially significant expansion of U.S. export controls by publishing a Federal Register 
notice soliciting public comments on how the U.S. government should regulate the export of “emerging technologies.” Under the Export Controls Reform Act of 2018 (ECRA), “emerging and foundational technologies” will be subject to additional export controls and will trigger heightened foreign investment reviews for U.S. companies that produce or develop these technologies.  Commerce has requested public comments on the “criteria for defining and identifying emerging technologies” by 
December 19, 2018.  Commerce will begin a separate comment process regarding “foundational technologies” at a later date.
Export Controls 
BIS regulates the export of “dual-use” and less sensitive military items through the Commerce Control List (CCL) and the Export Administration Regulations (EAR). Section 1758 of the 
ECRA, enacted in August 2018 as a part of the National Defense Authorization Act for Fiscal Year 2019, requires BIS to establish “appropriate controls” for the export, re-export, or in-country transfer of “emerging and foundational technologies” that “are essential to the national security of the United States” but are not yet subject to U.S. export controls.  While Commerce will have the discretion to set the level of export controls for any identified emerging and foundational technologies, at a minimum it must require a license for the export of these technologies to countries subject to a U.S. arms embargo. (
Section 126.1 of the International Traffic in Arms Regulations (ITAR) identifies several countries, including China, currently subject to an arms embargo by the United States.)
Foreign Investments 
The identification of emerging technologies also will have implications for inbound foreign investments, as investments in U.S. companies that produce or develop these technologies may be subject to increased scrutiny under the “pilot program” created by the Committee on Foreign Investment in the United States (CFIUS) pursuant to the 
Foreign Investment Risk Review Modernization Act of 2018 (FIRRMA).  Under 
FIRRMA’s Pilot Program, which was announced October 10, 2018 and entered into force on November 10, 2018, foreign investors in a U.S. business that produces, designs, tests, manufactures, fabricates, or develops an “emerging and foundational technology” (or any other “critical technology”) used or designed for use in one of 27 identified Pilot Program industries must file declarations with CFIUS and seek CFIUS’s approval, if the foreign investor acquires control, access to “material non-public technical information,” board of director or equivalent rights, or other involvement in certain substantive decision-making by the U.S. company. For additional analysis of the CFIUS Pilot Program, see our previous post 
Comment Process for Emerging Technologies 
BIS’s notice lists 14 broad categories of technology on which the agency intends to focus in determining whether there are any specific emerging technologies that merit control:
  • Biotechnology;
  • Artificial intelligence (AI) and machine learning technology;
  • Position, Navigation, and Timing (PNT) technology;
  • Microprocessor technology;
  • Advanced computing technology;
  • Data analytics technology;
  • Quantum information and sensing technology;
  • Logistics technology;
  • Additive manufacturing;
  • Robotics;
  • Brain-computer interfaces;
  • Hypersonics;
  • Advanced materials; and
  • Advanced surveillance technologies.
BIS is seeking public comments on seven specific topics: (1) how to define emerging technology to assist identification of such technology in the future; (2) criteria to apply to determine whether there are specific technologies within the 14 general categories that are important to U.S. national security; (3) sources to identify such technologies; (4) other general technology categories that warrant review to identify emerging technology that are important to U.S. national security; (5) the status of development of these technologies in the United States and other countries; (6) the impact specific emerging technology controls would have on U.S. technological leadership; (7) any other approaches to the issue of identifying emerging technologies important to U.S. national security. BIS anticipates that this process ultimately will lead to “proposed rules for new Export Control Classification Numbers (ECCNs) on the CCL” that will cover any identified emerging technologies.
The definition and identification of “emerging technologies” could have broad implications for U.S. export controls and foreign investments, and we anticipate that BIS will carefully review the public input that it receives as part of its process for creating regulations on this topic.

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* Author: Unknown staff writer of The Export Compliance Journal. 
On November 19, 2018, the Department of Justice announced that 
Société Générale S.A. (SocGen), a French bank headquartered in Paris, was to pay fines in excess of US$1.34B for violations of the Trading With the Enemy Act.
These fines represent the second largest penalty ever levied against a financial institution for violating U.S. sanctions, following only the 
US$8.9B fine levied against BNP Paribas in 2014.
  “Today, Société Générale has admitted its willful violations of US sanctions laws-and longtime concealment of those violations-which resulted in billions of dollars of illicit funds flowing through the US financial system,” said Geoffrey Berman, U.S. Attorney for the Southern District of New York.
Under a settlement agreement with U.S. authorities, SocGen will pay $717M to the U.S. Department of Justice, $325M to the NY Department of Financial Services, $163M to the Manhattan District Attorney’s office, $81M to the U.S. Federal Reserve, and $54M to the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC).
From 2003 through 2013, SocGen operated several financial institutions that facilitated money flowing to a number of sanctioned entities 
engaging in more than 2,500 transactions with parties in Iran, Sudan, Cuba and Libya that involved nearly US$13B.
  “We acknowledge and regret the shortcomings that were identified in these settlements and have cooperated with the US authorities to resolve these matters,” said Société Générale Chief Executive Frederic Oudea.
  “We aim to meet the highest standards of compliance and ethics, in the best interest of our clients and of all of our stakeholders.”
In addition to the fines, under the terms of the settlement agreement, SocGen has agreed to refrain from all future criminal conduct, and implement remedial measures as required by its regulators, including enhancements of its compliance program and sanctions-related internal controls. The U.S. Government has agreed to defer prosecution of criminal charges for a period of three years, and if SocGen has continued to comply with the terms of the agreement, the Government will then seek to dismiss the charges.

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T.W. Kassinger & D.J. Ribner: “CFIUS Pilot Program Implementing FIRRMA Becomes Effective”

O’Melveny, 20 Nov 2018.) 
* Authors: Theodore Kassinger, Esq.; and David Ribner, Esq. Both of O’Melveny. Contact details 
[Authors’ Note: This memorandum is a summary for general information and discussion only and may be considered an advertisement for certain purposes. It is not a full analysis of the matters presented, may not be relied upon as legal advice, and does not purport to represent the views of our clients or the Firm. The views expressed in this newsletter are the views of the authors except as otherwise noted.]
In August 2018, Congress enacted the Foreign Investment Risk Review Modernization Act (FIRRMA), expanding the authority of the Committee on Foreign Investment in the United States (CFIUS)-which determines whether foreign investments in US businesses present a threat to US national security-in numerous ways. Earlier this month, CFIUS began a pilot program to implement part of its new FIRRMA authority, with potentially significant implications for a certain set of investments.
The pilot program expands CFIUS jurisdiction to certain non-controlling “other investments” by foreign persons, regardless of country of origin, in US businesses that are involved in (1) “critical technologies,” where (2) the business falls within any of 
27 specific industries, as defined by North American Industry Classification System (NAICS) codes. Nuclear electric power generation (NAICS Code 221113), Turbine and Turbine Generator Set Units Manufacturing (NAICS Code 333611), and Power, Distribution, and Specialty Transformer Manufacturing (NAICS Code 335311) are among the 27 industries. [FN/1] The non-controlling “other investments” that are now subject to CFIUS jurisdiction under the pilot program are only those that provide: access to material nonpublic technical information; board representation or observership; or other involvement in substantive company decision-making.
A U.S. business is involved in “critical technology” if it produces, designs, or uses goods, services, or technologies that are controlled for export purposes by the International Traffic in Arms Regulations, certain parts of the Export Administration Regulations, or specially designed nuclear equipment, parts, or technology controlled by the Department of Energy and Nuclear Regulatory Commission. This list will be expanded in the future to include certain “emerging” and “foundational” technologies that will be determined by an inter-agency review led by the Commerce Department.
In addition to broadening CFIUS’s jurisdiction, the pilot program requires parties to transactions subject to CFIUS jurisdiction to file short-form “declarations” for both controlling and non-controlling investments in US businesses involved in critical technologies within the 27 industries.
Declarations must be filed at least 45 days prior to a transaction’s completion date. Once CFIUS accepts the declaration for review, CFIUS will have 30 days to take one of four actions: request the parties file a notice; inform the parties that the declaration is insufficient for CFIUS to complete action and advise that the parties may file a notice; initiate a formal review of the transaction; or clear the transaction. Importantly, a transaction that is cleared on the basis of a declaration alone is not eligible for the regulatory safe harbor available to parties that file a notice.
Failure to file a required mandatory declaration can subject the transaction parties to a civil monetary penalty up to the value of the transaction. Therefore, careful consideration should be given to whether foreign investments fall within the scope of the pilot program.
  [FN/1] The other electric power generation industries in the NAICS (hydroelectric, fossil fuel, solar, wind, geothermal, and biomass) are outside the scope of the pilot program.

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ECS Presents “Web Meeting Series – Managing Foreign Nationals in the Workplace: Be Confident, Competent, and Compliant” on 11 Dec
(Source: S. Palmer, 
* What: Web Meeting Series – Managing Foreign Nationals in the Workplace: Be Confident, Competent, and Compliant
* When: December 11, 2018; 1:00-2:30 p.m. EST
* Where: 
* Sponsor:  Export Compliance Solutions & Consulting (ECS)
* ECS Instructors: Suzanne Palmer, Melva Exner

* Register 
here or by calling 866-238-4018 or by emailing 

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

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

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

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List of Approaching Events: 4 New Events Posted This Week
(Sources: Editor and Event Sponsors)

Published every Friday or last publication day of the week, o
ur overview of Approaching Events is organized to list c
ontinuously available training, training events, s
eminars & conferences, and 
Please, submit your event announcement to Alexander Witt, Events & Jobs Editor (email: 
), composed in the below format:

#” = New or updated listing  

Continuously Available Training
* E-Seminars: “US Export Controls” / “Defense Trade Controls“; Export Compliance Training Institute; danielle@learnexportcompliance.com 

* Webinar: ”
Company-Wide US Export Controls Awareness Program“; Export Compliance Training Institute;

* E-Seminars: “ITAR/EAR Awareness“; Export Compliance Solutions;
* Online: “Simplified Network Application Process Redesign (SNAP-R)“; Commerce/BIS; 202-482-2227
* E-Seminars: “Webinars On-Demand Library“; Sandler, Travis & Rosenberg, P.A.
* Online: “International Trade Webinars“; Global Training Center
Online: “On-Demand Webinars“; “General Training“; Center for Development of Security Excellence; Defense Security Service (DSS)
* Online: “ACE Reports Training and User Guide“; DHS/CBP

* Online: ”
Increase Your International Sales – Webinar Archive“; U.S. Commercial Service

* Web Form: “Compliance Snapshot Assessment“; Commonwealth Trading Partners (CTP)
* Online: “
Customs Broker Exam Prep Course
“; The Exam Center
Seminars and Conferences


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

* Nov 28-30: Brussels, Belgium; “

Brussels Diplomatic Academy

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

* Dec 3-7: Tysons Corner, VA; “Certified Classification Specialist“; Global Trade Academy 

Dec 4: Stony Brook, NY; “
ITAR/EAR Compliance: An Executive Level Introduction
“; Stony Brook University

* Dec 4-5: Frankfurt, Germany; “US Defence Contracting and DFARS Compliance in Europe;” C5 Group
* Dec 5: London, UK; “Intermediate Seminar“; UK Department for International Trade

 Dec 6: London, UK; “
Beginner’s Workshop
“; UK Department for International Trad

* Dec 6: London, UK; “Licenses Workshop“; UK Department for International Trade
* Dec 6: London, UK; “Control List Classification – Combined Dual Use and Military“; UK Department for International Trade
* Dec 6: London, UK; “International Documentation and Customs Compliance“; Institute of Export and International Trade

 Dec 6: Manchester, UK; “
Export Documentation Training Course
;” Greater Manchester Chamber of Commerce

* Dec 6: Manchester, UK; “
Introduction to Export Controls and Licenses

* Dec 6: San Pedro, CA; “
2018 FTA Holiday Celebration
“; Foreign Trade Association (FTA)

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

Dec 7: Washington D.C.; “
2018 Holiday Party
“; SIA

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

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

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

* Dec 14: Philadelphia, PA; “Incoterms 2010: Terms of Sale Seminar“; International Business Training

* Jan 6-7: Long Beach, CA; ”
Fundamentals of FTZ Seminar“; NAFTZ 

Jan 15: Arlington, VA; “
Voluntary Disclosure/Voluntary Self-Disclosure Seminar
“; SIA

Jan 21-24: San Diego, CA; “ITAR Defense Trade Controls / EAR Export Controls Seminar”; ECTI; 540-433-3977

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

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

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

* Feb 6-7: Orlando, FL; “
Boot Camp: Achieving ITAR/EAR Compliance
“; Export Compliance Solutions (ECS)

* Feb 6-7: Scottsdale, AZ;

Complying with U.S. Export Controls
“; Commerce/BIS

* Feb 12-13: Washington, D.C.; “
2019 Legislative Summit
“; National Association of Foreign Trade Zones (NAFTZ) 
* Feb 18-21: Orlando, FL; “
ITAR Defense Trade Controls / EAR Export Controls Seminar

Mar 4-6: Savannah, GA; “
2019 Winter Back to Basics Conference
“; SIA

Mar 5-7:  Orlando, FL; “
‘Partnering for Compliance’ Export/Import Control Training and Education Program
“; Partnering for Compliance

* Mar 6-7: San Diego, CA;

Complying with U.S. Export Controls
“; Commerce/BIS

 Mar 9: Orlando, FL; “
Customs/Import Boot Camp
;” Partnering for Compliance

* Mar 12-14: Dallas, TX;

Complying with U.S. Export Controls
“; Commerce/BIS
* Mar 12-14: Dallas, TX;

How to Build an Export Compliance Program
“; Commerce/BIS

* Mar 18-21: Las Vegas, NV; “
ITAR Defense Trade Controls / EAR Export Controls Seminar

* Mar 26-27: Scottsdale, AZ; “
Seminar Level II: Managing ITAR/EAR Complexities
“; Export Compliance Solutions

* Apr 1-4: Washington, DC;ITAR Defense Trade Controls / EAR Export Controls Seminar“; ECTI

* Apr 3-4: Denver, CO;

Complying with U.S. Export Controls
“; Commerce/BIS
* Apr 23-24: Portsmouth, NH;

Complying with U.S. Export Controls
“; Commerce/BIS
Apr 25: Portsmouth, NH;

Technology Controls
“; Commerce/BIS

 Apr 30-May 1: Nashville, TN: “Seminar Level III-Mastering ITAR/EAR Challenges“; Export Compliance Solutions (ECS);

* May 5-7: Savannah, GA; “2019 Spring Seminar“; National Association of Foreign Trade Zones (NAFTZ)

May 6-7: Atlanta, GA; “
2019 Spring Conference
“; SIA

Jul 10-11: Seattle, WA: “Seminar Level I-Boot Camp: Achieving ITAR/EAR Compliance“; Export Compliance Solutions (ECS);

* Aug 20-21: Cincinnati, OH;

Complying with U.S. Export Controls
“; Commerce/BIS

* Sep 8-11: Chicago, IL; “2019 Annual Conference and Exposition“; National Association of Foreign Trade Zones (NAFTZ)

Sep 17-19: Annapolis, MD; “
The ECS 2nd Annual ITAR/EAR Symposium
“; ECS

Oct 28 – 29: Washington D.C.; “
2019 Fall Advanced Conference
“; SIA


Nov 27: Webinar; “
Advanced Classification, Part 2
Sandler, Travis & Rosenberg, P.A
Nov 29: Webinar; “
Conflicts between EU and Export Control Rules
“; ECTI;

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

 Nov 29: Webinar;
“Trade Wars: Episode IX [Monthly Update]”
; Sandler, Travis & Rosenberg, P.A

Nov 30: Webinar; 
KPMG TradeWatch Webcast Update on Country of Origin Rules”; 
KPMG LLP; rtatum@kpmg.com

* Dec 3: Webinar; “Tariff Classification: Using the Harmonized Tariff Schedule; International Business Training 

* Dec 4: Webinar; “NAFTA Rules of Origin“; International Business Training 

Dec 5: Webinar; “
Export Compliance Essentials for the Aerospace Industry
; call 540-433-3977
* Dec 5: Webinar; “Import Documentation and Procedures“; International Business Training

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

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

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

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


. Bartlett’s Unfamiliar Quotations

(Source: Editor)
George Eliot (Mary Anne Evans; 22 Nov 1819 – 22 Dec 1880; known by her pen name George Eliot, was an English novelist, poet, journalist, translator, and one of the leading writers of the Victorian era. She published seven novels, including Silas Marner, most of which are set in provincial England and known for their realism and psychological insight.)
 – “Animals are such agreeable friends – they ask no questions; they pass no criticisms.”
Andre Gide (André Paul Guillaume Gide; 22 Nov 1869 – 19 Feb 1951; was a French author and winner of the Nobel Prize in Literature. The author of more than fifty books, the New York Times described him as “France’s greatest contemporary man of letters” and “judged the greatest French writer of this century by the literary cognoscenti.”)
 – “‘Know thyself’ — A maxim as pernicious as it is ugly. Whoever studies himself arrests his own development. A caterpillar who seeks to know himself would never become a butterfly.”
 – “Most quarrels amplify a misunderstanding.”
Harpo Marx (born Adolph Marx; 23 Nov 1888 – 28 Sep 1964); was an American comedian, actor, mime artist, and musician, and the second-oldest of the Marx Brothers. He wore a curly reddish blonde wig, and never spoke during performances (he blew a horn or whistled to communicate), and played the harp in most of his films.)
  – “She’s a lovely person. She deserves a good husband. Marry her before she finds one.”

Baruch Spinoza 
(born Benedito de Espinosa, 24 Nov 1632 – 21 Feb 1677, was a Jewish-Dutch philosopher of Portuguese Sephardi origin. By laying the groundwork for the Enlightenment and modern biblical criticism, including modern conceptions of the self and the universe, he came to be considered one of the great rationalists of 17th-century philosophy.)
  – “If you want the present to be different from the past, study the past.”
  – “None are more taken in by flattery than the proud, who wish to be the first and are not.”

Friday funnies:
* Asked to write a composition entitled, “What I’m thankful for on Thanksgiving,” Johnny wrote, “I am thankful that I’m not a turkey.”
Q: What do you call the age of a pilgrim?
   A: Pilgrimage.
Q: What do you get if you divide the circumference of a pumpkin by its diameter? 

   A: Pumpkin pi.
Q: What kind of weather does a turkey like best?
   A: Fowl weather!
* My readers have asked me to stop telling bad Thanksgiving jokes, but I couldn’t just quit cold turkey.

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

EN_a217. 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 

  – 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 


  – 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



  – Last Amendment: 24 Apr 2018:
83 FR 17749-17751
: Foreign Trade Regulations (FTR): Clarification on the Collection and Confidentiality of Kimberley Process Certificates

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

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

  – HTS codes for AES are available 
  – HTS codes that are not valid for AES are available here.


  – 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 
. BAFTR subscribers receive a $25 discount on subscriptions to the BITAR, please
contact us
to receive your discount code.

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

. Weekly Highlights of the Daily Bugle Top Stories
(Source: Editor)

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

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

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

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

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

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

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

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