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18-1130 Friday “Daily Bugle”

18-1130 Friday “Daily Bugle”

Friday, 30 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
.

[No items of interest noted today.]

  1. Items Scheduled for Publication in Future Federal Register Editions 
  2. Commerce/BIS: (No new postings.)
  3. DHS/CBP: “MQ Trade External Gateway Migration Affecting ACE, AES, ACS to Take Place in Jan 2019”
  4. DHS/CBP Publishes Updated CATAIR Appendix PGA
  5. DHS/ICE Removes Chinese Man Sentenced Convicted of Violating the International Emergency Economic Powers Act
  6. State/DDTC: (No new postings.)
  1. Android Headlines: “Bipartisan Senate Initiative Pressures White House to Probe ZTE Again”
  2. Director Magazine: “Turbulent Times Need Flexible Supply Chains”
  3. Expeditors News: “EU and UK Reach Draft Brexit Withdrawal Agreement”
  4. Inside Defense: “White House Threatens Veto of Senate’s Yemen Bill”
  5. ST&R Trade Report: “Tariff Increases Prompting More Companies to Shift Sourcing Out of China”
  1. J.K. Mammen, M. Srere & E. Koch: “Another Record Breaking Year for the SEC Whistleblower Program”
  2. N. Eftimiades: “Uncovering Chinese Espionage in the U.S.”
  3. R. Merritt: “AI Potential U.S. Trade Embargo Subject”
  1. Marla Lyon Moves to Analog Devices
  1. ECS Presents “Seminar Level I – Boot Camp: Achieving ITAR/EAR Compliance” in Orlando, FL on 7-8 Feb 2019
  2. FCC Presents “Designing an Internal Compliance Program for Export Controls & Sanctions”, 5 Feb 2019 in Bruchem, the Netherlands
  3. List of Approaching Events: 80 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 

EXIMITEMS FROM TODAY’S FEDERAL REGISTER

EXIM_a1

 
[No items of interest noted today.]

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OGSOTHER GOVERNMENT SOURCES

OGS_a11
. Items Scheduled for Publication in Future Federal Register Editions
 

(Source:
Federal Register)
* Treasury/OFAC; NOTICES; Blocking or Unblocking of Persons and Properties [Pub. Date: 3 Dec 2018.]

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

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OGS_a03
3. 
DHS/CBP: “MQ Trade External Gateway Migration Affecting ACE, AES, ACS to Take Place in Jan 2019”

(Source: 
CSMS# 18-000705, 29 Nov 2018.)
 
This is an UPDATE that the MQ Trade External Gateway Migration in the PRODUCTION environment is scheduled for January 2019. During this time, CBP will migrate the MQ Gateway off of the mainframe. The following applications will be impacted: ACE, AES and ACS. 
 
During the migration activities, CBP will NOT be able to receive any transactions and consequently they will NOT be held in any CBP queues. Trade messages transmitted to CBP will receive MQ connection errors. As a result, TRADING PARTNERS AND PGA’s WILL NEED TO HOLD ALL MESSAGES IN THEIR SYSTEMS UNTIL AFTER THE DOWNTIME. For transactions received prior to the downtime, any outgoing messages from CBP will be held in queues and sent after the downtime. 
 
There will be no additional data coming to ACE, AES and ACS via EDI for the duration of the outage.
 
The ACE Portal will not be impacted; however, no new data will be displayed nor received.
 
CBP will send out a CSMS when this Migration has completed so that Trade can transmit messages to CBP again.
 
  – Related CSMS No. 18-000700

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OGS_a04
4
DHS/CBP Publishes Updated CATAIR Appendix PGA

(Source: 
CSMS# 18-000707, 30 Nov 2018.)
 
The ACE CATAIR Appendix PGA has been updated. For FDA Processing Codes for BIO program, the following code was removed: BRD – Biologics Regulated Devices (not subject to licensure)
 
Please find more information 
here.

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OGS_a5
5
DHS/ICE Removes Chinese Man Sentenced Convicted of Violating the International Emergency Economic Powers Act

(Source: 
DHS/ICE, 30 Nov 2018.) 
 
U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO) officers removed a citizen of China Wednesday who was sentenced to three years in prison for attempting to illegally export high-grade carbon fiber to China, following an investigation operation initiated by ICE’s Homeland Security Investigations (HSI) in New York in conjunction with the U.S. Department of Commerce (DOC) Bureau of Industry and Security’s Office of Export Enforcement New York Field Office and the Department of Defense’s Defense Criminal Investigative Service (DCIS) Northeast Field Office.
 
Fuyi Sun, 54, aka “Frank,” a citizen of the People’s Republic of China, was sentenced in New York federal court to three years in prison for violating the International Emergency Economic Powers Act (IEEPA) in connection with a scheme to illegally export to China, without a license, high-grade carbon fiber, which is used primarily in aerospace and military applications. 
 
On April 11, 2016, Sun traveled from China to New York for the purpose of purchasing M60 Carbon Fiber from the UC Company.  During meetings with the undercover agents on April 11 and 12, among other things, Sun suggested that the Chinese military was the ultimate end-user for the M60 Carbon Fiber he sought to acquire from the UC Company, and claimed to have personally worked in the Chinese missile program.  Sun further asserted that he maintained a close relationship with the Chinese military, had a sophisticated understanding of the Chinese military’s need for carbon fiber, and suggested that he would be supplying the M60 Carbon Fiber to the Chinese military or to institutions closely associated with it.
 
On April 12, 2016, Sun agreed to purchase two cases of M60 Carbon Fiber from the UC Company.  On that date, Sun paid the undercover agents purporting to represent the UC Company $23,000 in cash for the carbon fiber, as well as an additional $2,000 as compensation for the risk he believed the UC Company was taking to illegally export the carbon fiber to China without a license. 
 
On April 13, 2016, the U.S. Attorney’s Office for the Southern District of New York (SDNY) filed a complaint with SDNY alleging a violation of IEEPA. On the same date, HSI special agents arrested Sun and subsequently remanded him to the custody of the U.S. Marshals Service for prosecution.
 
On Sept. 5, 2017, SDNY convicted Sun of violating IEEPA and sentenced him to incarceration for 36 months.
 
On May 24, 2018, SDNY issued a judicial order of removal for Sun.
 
ERO officers removed Sun from the United States and turned him over to Chinese authorities without incident.

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OGS_a6
6
State/DDTC: (No new postings.)

(Source: 
State/DDTC)

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NWSNEWS

NWS_a017
Android Headlines: “Bipartisan Senate Initiative Pressures White House to Probe ZTE Again”

(Source: 
Android Headlines, 28 Nov 2018.) [Excerpts.] 
 
A small, bipartisan Senate initiative will see a couple of stateside legislators attempt pressuring the White House into once again investigating Chinese technology company ZTE over possible violations of trade sanctions imposed by the United States government. Senators Chris Van Hollen (D-MD) and Marco Rubio (R-FL) penned a 
letter to the Trump administration wherein they’re suggesting ZTE might have violated Commerce Department sanctions by helping Venezuela build a database meant to be used for the surveillance of its citizens. The letter is specifically addressed to the secretaries of commerce, state, and treasury, demanding that the sitting administration probes ZTE’s dealings with Venezuela and determine whether the aforementioned project was carried out using technologies – both hardware and software – from American companies.
 
ZTE is suspected of using memory storage solutions from Dell Technologies to set up the said Venezuelan database in collaboration with Cantv, a state-owned telecom giant in the South American country. … 

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NWS_a28
Director Magazine: “Turbulent Times Need Flexible Supply Chains”

(Source: 
Director Magazine, 29 Nov 2018.) [Excerpts.] 
 
From Trump’s tariffs to Brexit befuddlement, firms that trade internationally face unprecedented global changes – but getting a grip of tech strategy can help secure their supply chains, writes Geoff Taylor, MD of AEB (International). 
 
Supply chain management (SCM) is a crucial yet underappreciated area of any business that often goes unnoticed until something goes wrong.
 
It gets everyone’s attention when, for example, volcanic eruptions or election results suddenly affect the availability or price of everyday products.
 
In a globalized and increasingly digital world, each supply chain is an ecosystem of its own. … 
 
The data required in global trade is elaborate and often more difficult to manage then the goods movements themselves.
 
Immeasurable amounts of information are exchanged from system to system, from one supply chain partner to the other, and through the many virtual borders of customs offices and export control organizations along the way. … 

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NWS_a39
Expeditors News: “EU and UK Reach Draft Brexit Withdrawal Agreement” 

(Source: 
Expeditors News, 29 Nov 2018.) 
 
On November 25, 2018, the Government of United Kingdom and the Heads of the remaining European Union Member States reached agreement on the terms of a Withdrawal Agreement.
 
According to a release by the European Commission, “The Withdrawal Agreement establishes the terms of the UK’s withdrawal from the EU. It ensures that the withdrawal will happen in an orderly manner, and offers legal certainty once the Treaties and EU law will cease to apply to the UK.”  Both the UK and EU Parliaments need to accept this Withdrawal Agreement before it can be written into law and implemented.  The UK Parliament is scheduled to debate and vote on the Agreement on December 11, 2018 and must be accepted prior to the European Parliament endorsing it.
 
The acceptance of the Withdrawal Agreement will allow the previously agreed transition period from March 29, 2019 to December 31, 2020 to be implemented. Key points with respect to customs and trade include, but are not limited to, the following:
 
  – During the transition, all EU regulations will continue to apply to the UK;
  – The UK will remain in the European customs territory, and International Trade Agreements will stay in place. After the transition period, the UK will negotiate its own trade deals;
  – The transition period could be extended, if decided by the Joint Committee before July 1, 2020.
 
The Withdrawal Agreement is supplemented with a joint political (non-binding) statement with regards to the goals of negotiations on a future trading and customs environment that should take place during the transition period.
 
The EU press release can be accessed 
here. The full withdrawal agreement can be viewed 
here and the draft political statement can be accessed 
here.

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NWS_a410
Inside Defense: “White House Threatens Veto of Senate’s Yemen Bill”

(Source: 
Inside Defense, 29 Nov 2018.) [Excerpts.] 
 
The White House is threatening a presidential veto of a bipartisan Senate resolution that would direct the removal of U.S. armed forces from hostilities in Yemen that have not been authorized by Congress.
 
  “The fundamental premise of S.J. Res. 54 is flawed — United States forces are not engaged in hostilities between the Saudi-led coalition and Houthi forces in Yemen,” a statement of administration policy reads. “Since 2015, the United States has provided limited support to member countries of the Emirati and Saudi-led coalition, including intelligence sharing, logistics, and, until recently, aerial refueling. This support is provided in accordance with licenses and approvals under the Arms Export Control Act, statutory authorities to provide logistics support, and the President’s constitutional powers. United States counterterrorism operations and an October 2016 strike on radar facilities in Houthi-controlled territory, which was the subject of a prior report consistent with the War Powers Resolution of 1973, are separate matters. … 

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NWS_a511. 
ST&R Trade Report: “Tariff Increases Prompting More Companies to Shift Sourcing Out of China”

(Source: 
Sandler, Travis & Rosenberg Trade Report, 30 Nov 2018.)
 
One of the ways companies affected by this year’s tariff increases on imports from China can avoid or reduce those duties is by moving production, in whole or in part, to other countries. A number of recent press accounts indicate that use of this option is accelerating, largely to the benefit of smaller economies in Asia.
 
Some production has been moving out of China for years as government officials work to refocus the country’s economy on services and high-tech manufacturing. However, a Reuters article states, “the risk of more, and higher, US tariffs on China, and fears that nearby emerging economies can only accommodate new businesses on a ‘first come, first served’ basis,” are driving what industry experts say is “the biggest shift in cross-border supply chains since China joined the World Trade Organization in 2001.” A 
Politico article adds that about 84 percent of companies responding to a recent Ernst and Young survey said they are reviewing their supply chains amid the ongoing trade tensions and 51 percent have already made changes.
 
Press reports state that as a result countries in Southeast Asia are seeing increased interest from businesses looking to relocate manufacturing operations. For example, the 
Politico article states, “small and medium-sized factories that make furniture, textiles and electronics in China’s Pearl River Delta and Yangtze River Delta regions, the country’s main export production hubs,” are being lured to industrial parks in Vietnam. A CNBC article adds that Vietnam and Malaysia could take on more low-end manufacturing of technology products and that auto parts production could be shifted to Thailand and Malaysia. Even makers of large industrial machinery are considering moving some of their assembly lines to Japan or Mexico, CNN states.
 
At the same time, countries in the region do not typically have manufacturing technology, infrastructure, skilled labor, or customs procedures comparable to those of China, making it difficult to shift sourcing totally away from that country. As a result, Reuters quoted Sandler, Travis & Rosenberg’s Sally Peng as saying, “everyone is looking for that China Plus One, Plus Two, Plus Three country strategy, all the way to Africa.”
 
Changing the country of origin of imported goods is a legal and proven method of mitigating liability for import duties, including the Section 232 and 301 duties the U.S. has imposed this year on hundreds of billions of dollars’ worth of goods from China and other countries. For instance, U.S. Customs and Border Protection has found that the assembly of numerous parts to create various modules, and the assembly of these modules to produce aircraft engines, result in a substantial transformation of the parts so that their country of origin is the country where the engine is produced. This approach can be particularly useful for certain U.S. or other products that fall within the special HTSUS Chapter 98 provisions, many of which are wholly or partially exempt from the additional tariffs.
 
Click here to learn more about these and other duty mitigating strategies.

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COMMCOMMENTARY

COM_1
12. 
J.K. Mammen, M. Srere & E. Koch: “Another Record Breaking Year for the SEC Whistleblower Program”

(Source: 
Bryan Cave, 29 Nov 2018.) 
 
* Authors: Jennifer Kies Mammen, Esq., 
jennifer.mammen@bclplaw.com; Mark Srere, Esq., 
mark.srere@bclplaw.com; an Elaine Koch, Esq., 
edkoch@bclplaw.com. All of Bryan Cave, Washington DC and Kansas, respectively. 
 
On November 15, 2018, the Securities and Exchange Commission (“SEC”) released its 
annual report to Congress (“Report”) on the Dodd-Frank Whistleblower Program (the “Program”), under which eligible whistleblowers may receive awards of between 10% and 30% of the sanctions collected in actions brought by the SEC and related actions brought by other authorities.  The past year has been historic for the Program, both in terms of the number of whistleblower tips and the dollar value of whistleblower awards.  In Fiscal Year 2018, the SEC awarded more than $168 million to 13 whistleblowers, more money than it had awarded in all prior years of the Program combined.  This FY2018 total included the SEC’s largest awards to date, including an $83 million award shared by three individuals, and a nearly $54 million award shared by two individuals.
 
Citing whistleblower confidentiality, “an integral component” of the Program, the SEC refrains from disclosing any information that could reasonably be expected to reveal the identity of a whistleblower.  Nonetheless, the Report reveals certain trends that can be instructive to companies seeking to prevent and detect potential violations of the securities laws and to mitigate penalties that may result from inadvertent violations.
 
Awards
 
  – Since the Program was created in 2011, whistleblower tips have generated more than $1.7 billion in total monetary sanctions, including disgorgement of more than $901 million of ill-gotten gains and interest
  – Since 2011, the SEC has awarded more than $326 million to 59 whistleblowers.
  – FY2018 included the three largest awards ever and half of the ten largest awards ever granted
 
Whistleblower Profiles
 
 – Approximately 69% of FY2018 award recipients were current or former insiders, an increase over last year.
    (i) Highlighting the importance of internal compliance programs, of those who were current or former employees, nearly 83% represented that they had filed internal reports or understood that their supervisors or relevant compliance personnel were aware of the alleged wrongdoing before submitting a tip to the SEC.
  – The remaining whistleblowers receiving awards were investors, professionals working in the same or similar industries, individuals with specific market expertise, or individuals with personal relationships with the defendants.
 
Anti-Retaliation Measures
 
  – Given the objective of Dodd-Frank to encourage reporting to the Commission, the Court found that reserving retaliation protection under that law for individuals who so report would be consistent with Congress’s aim while not disrupting protections that may be available under other laws, including Sarbanes-Oxley.
  – The SEC will continue to target companies and individuals who retaliate against whistleblowers or attempt to impede whistleblowers from communicating with the Commission.
  – To date, the Commission has brought 12 anti-retaliation actions, including three under Section 21F(h)(1), which provides protections for whistleblowers against retaliation, and nine under Exchange Act Rule 21F-17, which prohibits any person from taking any action to prevent an individual from contacting the SEC directly to report a possible securities law violation.
 
Tips

  – In the past year, the SEC received more than 5,200 whistleblower tips, continuing its streak of receiving more complaints each year since the Program began in 2011. This represents a nearly 20 percent increase over 2017 and more than a 76 percent increase in the number of tips it received in 2012.  Over the course of the Program, the SEC has received more than 28,000 tips.
     (i) The SEC noted an uptick in tips received in the months following the Supreme Court’s decision in 
Digital Realty Trust, Inc. v. Somers.
  – In FY 2018, the SEC received tips from whistleblowers in 72 foreign countries across six continents. As in FY 2017, the largest number of tips from whistleblowers outside the United States came from Canada, the United Kingdom, and Australia.
  – Over the duration of the Program, the SEC has received tips from individuals in 119 foreign countries and has issued 12 awards to individuals who were foreign nationals or living outside the United States.
 
Proposed Rule Changes
 
  – On July 20, 2018, the SEC released proposed amendments to the Whistleblower Rules, including:
    (i) Prohibiting individuals who submit “false, fictitious, or fraudulent statements” to the SEC or who make repeated frivolous award claims from receiving awards;
    (ii) Providing a procedure for summarily disposing of certain categories of claims likely to be denied, such as untimely applications or those for tips that were never used by the Commission;
    (iii) Allowing awards based on non-prosecution agreements, deferred prosecution agreements, and settlements;
    (iv) Permitting adjustments to particularly large or small awards, though these would still be governed by the 10-30 percent range prescribed by Dodd-Frank;
    (v) Clarifying the definition of “related actions” to prevent potential double recoveries; and
    (vi) Modifying Rule 21F-2 to comport with the Supreme Court’s ruling in 
Digital Realty Trust, Inc. v. Somers.
  – The comment period for the proposed rule changes ended on September 18, 2018, and the Commission staff is currently reviewing the comments
 
As described in the report, whistleblower tips are carefully reviewed and investigated, so the time between an individual submitting a tip and receiving an award may be several years.  All indicators suggest that more and more whistleblowers will continue to submit complaints under the Program, particularly as the SEC publicly touts massive awards and legal protections from retaliation for whistleblowers who voluntarily provide original information that leads to successful Commission and related enforcement actions resulting in monetary sanctions over $1 million. 
 
Companies should ensure they have compliance programs in place to prevent and detect potential violations of the securities laws, and to mitigate penalties that may result from inadvertent violations.  This can include incentivizing employees to report through internal channels, which allows covered entities the opportunity to investigate and mitigate existing violations, as well as to prevent future violations.  In light of the focus on anti-retaliation measures, companies also should assure employees that they will not suffer from retaliation, confirm they have appropriate policies prohibiting whistleblower retaliation, and provide a complaint procedure for any employee who believes he or she has suffered from retaliation.  It also remains critical for companies to encourage a culture of compliance and to engage in strong self-policing.

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(Source: 
The Diplomat, 28 Nov 2018.) [Excerpts.] 
 
A detailed look into how, why, and where Chinese spies are active in the United States.
 
* Author: Nicholas Eftimiades lecturer at Penn State University, Homeland Security Program. He recently retired from a 34 year government career that included employment in the CIA, Department of State, and Defense Intelligence Agency.
 
… On October 30, 2018 the U.S. Department of Justice announced the indictment of 10 Chinese intelligence officers and cyber hackers from the Ministry of State Security (MSS), China’s main civilian espionage organization. The United States charged the group with stealing airline engine technology from French and U.S. companies. The alleged scheme ran from 2010 to 2015 and targeted turbofan engine technology developed through a U.S.-French partnership. The objective of this espionage was to steal intellectual data and confidential business information about the engine. China’s defense industry is working to develop a comparable engine.
 
Weeks earlier, on October 10, the FBI announced the arrest of Mr. Yanjun Xu, alleged deputy division director of the Jiangsu Province Office (sixth bureau) of the Ministry of State Security, China’s main civilian spy agency. The FBI’s affidavit describes luring Xu to Belgium to illegally purchase General Electric commercial aviation technology. Belgian authorities placed him in custody on arrival and put him on a plane to the United States (most likely with an FBI escort). … 
 
[Editor’s Note: To read the entire article, click on the source link below the item title.]

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COM_a3
14. 
R. Merritt: “AI Potential U.S. Trade Embargo Subject”

(Source: 
EE Times Asia, 30 Nov 2018.) [Excerpts.]
 
* Author: Rick Merritt, Silicon Valley Bureau Chief, EE Times. 
 
Uncle Sam wants to restrict a few good technologies – and it needs engineers to help identify them.
 
As part of legislation passed this summer, the U.S. Commerce Department put out a 
call for input by Dec. 19 on which of 14 broad emerging technologies should face export controls. The call quickly got attention from industry veterans and groups concerned that controls could hurt U.S. companies and worsen a 
growing tech trade war with China.
 
The call issued on Nov. 14 listed aspects of biotech, AI, quantum computing, semiconductors, robotics, drones, and advanced materials as possible candidates. It gave special attention to AI, listing 10 specific areas ranging from computer vision and natural-language processing to AI chipsets. In semiconductors, it called out even broader areas including microprocessor technology, SoCs, stacked memory on chip, and memory-centric logic.
 
The effort aims to determine which emerging technologies could be strategic to national security and how to identify and control them without “negatively impacting U.S. leadership in the science, technology, engineering, and manufacturing sectors.” It did not define the range of the controls except to say that, “at a minimum, it [would] require a license for [their] export … to countries subject to a U.S. embargo, including those subject to an arms embargo.” … 
 
[Editor’s Note: To read the entire article, click on the source link below the item title.]

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MSEX/IM MOVERS & SHAKERS

MS_a1
15.
 
Marla Lyon Moves to Analog Devices
(Source: Editor)

Marla Lyon, previously with CIRCOR International, has been appointed Director, Global Trade Compliance, at Analog Devices.  Contact Marla at 
Marla.Lyon@analog.com or 978-268-3327.

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TEEX/IM TRAINING EVENTS & CONFERENCES

TE_a1
16.
 
ECS Presents “Seminar Level I – Boot Camp: Achieving ITAR/EAR Compliance” in Orlando, FL on 7-8 Feb 2019
(Source: S. Palmer, spalmer@exportcompliancesolutions.com.)
 
* What: Seminar Level I – Boot Camp: Achieving ITAR/EAR Compliance; Orlando, FL
* When: February 7-8, 2019
* Sponsor: Export Compliance Solutions (ECS)
* ECS Speaker Panel:  Suzanne Palmer, Mal Zerden
* Register here or by calling 866-238-4018 or email

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TE_a2
17. 
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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TE_a318. 
List of Approaching Events: 80 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 
webinars. 
 
Please, submit your event announcement to Alexander Witt, Events & Jobs Editor (email: 
awitt@fullcirclecompliance.eu
), composed in the below format:
 
# DATE: LOCATION; “EVENT TITLE”; EVENT SPONSOR; WEBLINK; CONTACT DETAILS (email and/or phone number)
 

#” = 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;
danielle@learnexportcompliance.com 

* E-Seminars: “ITAR/EAR Awareness“; Export Compliance Solutions;
spalmer@exportcompliancesolutions.com
* 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

 
 


* 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 10 – 12: Salt Lake City; “Discover Global Markets: Indo-Pacific“; U.S. Department of Commerce

*
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
 
 
2019
 

* 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
“; FENEX

* 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: Scottsdale, AZ;

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

# Feb 7-8: Orlando, FL; “
Boot Camp: Achieving ITAR/EAR Compliance
“; Export Compliance Solutions (ECS)
* 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
“; ECTI

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
“; ECTI

* 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
 
Webinars 


 
  
 
 
* 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
“;
 ECTI; 
danielle@learnexportcompliance.com
; 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
 

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

ENEDITOR’S NOTES

EN_a119
. Bartlett’s Unfamiliar Quotations

(Source: Editor)

Winston Churchill (Sir Winston Leonard Spencer-Churchill; 30 Nov 1874 – 24 Jan 1965; was a British politician, statesman, army officer, and writer, who was Prime Minister of the United Kingdom from 1940 to 1945 and again from 1951 to 1955. As Prime Minister, Churchill led Britain to victory in the Second World War.)
  – “Success consists of going from failure to failure without loss of enthusiasm.”
 

Jonathan Swift (30 Nov 1667 – 19 Oct 1745; was an Anglo-Irish satirist, essayist, political pamphleteer. Swift is best remembered for 
Gulliver’s Travels (1726), and 
A Modest Proposal (1729). He is regarded by the Encyclopedia Britannica as the foremost prose satirist in the English language.)
  – “Every man desires to live long, but no man wishes to be old.”
  – “He was a bold man who first ate an oyster.”
 

Mark Twain (30 Nov 1835 – 21 Apr 1910; born Samuel Langhorne Clemens, was an American writer, humorist, entrepreneur, publisher, and lecturer. Among his novels are 
The Adventures of Tom Sawyer (1876) and its sequel, 
The Adventures of Huckleberry Finn (1885), the latter often called “The Great American Novel”.)
  – “The best way to cheer yourself up is to try to cheer somebody else up.”
 
Friday funnies:
A professor in a university history class recently asked the students if anyone could explain what the
Rowe vs. Wade decision was.  They sat in silence for a while until one said, “Um, was that the decision George Washington had to make before crossing the Delaware River?”

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

EN_a220. 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:
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 
here.
  –
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 
website
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 
here
.
  – HTS codes that are not valid for AES are available here.

 
INTERNATIONAL TRAFFIC IN ARMS REGULATIONS (ITAR): 22 C.F.R. Ch. I, Subch. M, Pts. 120-130.
  

  – Last Amendment: 
4 Oct 2018: 
83 FR 50003-50007
: Regulatory Reform Revisions to the International Traffic in Arms Regulations
  – The only available fully updated copy (latest edition: 4 Oct 2018) of the ITAR with all amendments is contained in Bartlett’s Annotated ITAR (“BITAR”)
, by James E. Bartlett III. The BITAR contains all ITAR amendments to date, plus a large Index, over 800 footnotes containing amendment histories, case annotations, practice tips, DDTC guidance, and explanations of errors in the official ITAR text. Subscribers receive updated copies of the BITAR in Word by email, usually revised within 24 hours after every ITAR amendment.
The BITAR is available by annual subscription from the Full Circle Compliance 
website
. BAFTR subscribers receive a $25 discount on subscriptions to the BITAR, please
contact us
to receive your discount code.

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

EN_a321
. 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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