18-1228 Friday “Daily Bugle”

18-1228 Friday “Daily Bugle”

Friday, 28 December 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

  1. DHS/CBP Adjusts Civil Monetary Penalty for Inflation for Two Violations
  2. State Posts Global Magnitsky Human Rights Accountability Act Annual Report
  3. USTR Grants Product Exclusions Relating to Section 301 Investigation of China
  1. Items Scheduled for Publication in Future Federal Register Editions 
  2. Commerce/BIS: (No new postings.)
  3. DoD/DSCA Posts Policy Memo 18-63
  4. State/DDTC: (No new postings.)
  1. ABC News: “North Korea’s ‘Singapore Shops’ Expose Gap in Sanctions Push”
  2. CNBC: “White House Considering New Executive Order to Bar Huawei, ZTE Purchases”
  3. Expeditors News: “CBP to Hold Public Meeting for 21st Century Framework”
  1. A.V. Capobianco, B.P. Curran & A. Dukic: “Russia Sanctions: Remove an Oligarch, Return to Business”
  2. S.W. Evans: “A Comment on the BIS Proposed Rule on Review of Controls for Certain Emerging Technology”
  1. FCC Presents Renewed U.S. Export Controls Awareness Course: “ITAR & EAR from a non-U.S. Perspective”, 9 April in Bruchem, the Netherlands
  2. List of Approaching Events: 58 Events Posted This Week, Including 7 New Events
  1. Bartlett’s Unfamiliar Quotations 
  2. Are Your Copies of Regulations Up to Date? Latest Amendments: DHS/Customs (18 Dec 2018), DOC/EAR (20 Dec 2018), DOC/FTR (24 Apr 2018), DOD/NISPOM (18 May 2016), DOE/AFAEC (23 Feb 2015), DOE/EINEM (20 Nov 2018), DOJ/ATF (26 Dec 2018), DOS/ITAR (4 Oct 2018), DOT/FACR/OFAC (15 Nov 2018), HTSUS (19 Dec 2018)  
  3. Weekly Highlights of the Daily Bugle Top Stories 



1. DHS/CBP Adjusts Civil Monetary Penalty for Inflation for Two Violations

(Source: Federal Register, 28 Dec 2018.) [Excerpts.]
83 FR 67069-67073: Civil Monetary Penalty Adjustments for Inflation
* AGENCY: U.S. Customs and Border Protection, DHS.
* ACTION: Final rule.
* SUMMARY: This rule adjusts for inflation the amounts that U.S. Customs and Border Protection (CBP) can assess as civil monetary penalties for the following two violations–transporting passengers coastwise for hire by certain vessels (known as Bowaters vessels) that do not meet specified conditions; and employing a vessel in a trade without a required Certificate of Documentation. These adjustments are being made in accordance with the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (2015 Act) which was enacted on November 2, 2015. Other CBP civil penalty amounts were adjusted pursuant to this 2015 Act in rule documents published in the Federal Register on July 1, 2016; January 27, 2017; December 8, 2017; and April 2, 2018, but the adjustments for these two civil penalties were inadvertently left out of those documents.
* DATES: This rule is effective on December 28, 2018. The adjusted penalty amounts will be applicable for penalties assessed after December 28, 2018 if the associated violations occurred after November 2, 2015.
* FOR FURTHER INFORMATION CONTACT: Millie Gleason, Office of Field Operations, U.S. Customs and Border Protection. Phone: (202) 325-4291.
   Several non-Tariff Act penalties that are assessed by CBP were inadvertently omitted from the DHS rulemakings. On December 8, 2017, CBP published a rule, correcting for three penalties that had been omitted from the DHS rulemakings for the following three violations–transporting passengers between coastwise points in the United States by a non-coastwise qualified vessel; towing a vessel between coastwise points in the United States by a non-coastwise qualified vessel; and dealing in or using an empty stamped imported liquor container after it has already been used once. See 82 FR 57821.
   However, two additional non-Tariff Act penalties that are assessed by CBP were inadvertently omitted from the DHS rulemakings and the CBP correction rulemaking. The first is a penalty set forth at 46 U.S.C. 12118(f)(3) for transporting passengers coastwise for hire by certain vessels (known as Bowaters vessels) that do not meet specified conditions. This penalty is incurred if a vessel that is used primarily in manufacturing or mineral industries and owned by a Bowaters corporation transports passengers for hire except as a service for a parent or subsidiary of the corporation owning the vessel or under a bareboat charter to a corporation otherwise qualifying as a citizen of the United States. The conditions under which a vessel identified as a Bowaters vessel under the authority of 46 U.S.C. 12118 may transport passengers coastwise for hire are detailed in 46 U.S.C. 12118(d)(2) and 19 CFR 4.80(d). The penalty amount is only set forth in the statute and is not reflected in the CBP regulations. The second is a penalty for employing a vessel in a trade without a required Certificate of Documentation pursuant to 19 U.S.C. 1706a and 19 CFR 4.80(i). A Certificate of Documentation is form CG-1270 issued by the U.S. Coast Guard. This form is required for the operation of a vessel in certain trades. See 19 CFR 4.0(c) and 46 CFR part 67.
   This final rule adjusts these penalty amounts using the same civil monetary penalty adjustment methodology that DHS announced in the IFR (81 FR 42987) and finalized in the DHS final rule (82 FR 8571), and detailed below. …
  Claire M. Grady, Under Secretary for Management and Senior Official Performing the Duties of the Deputy Secretary.

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2. State Posts Global Magnitsky Human Rights Accountability Act Annual Report
(Source: Federal Register, 28 Dec 2018.) [Excerpts.]
83 FR 67460-67463: Global Magnitsky Human Rights Accountability Act Annual Report
* ACTION: Notice.
* SUMMARY: This notice contains the text of the report required by the Global Magnitsky Human Rights Accountability Act, as submitted by the Secretary of State pursuant to Executive Order 13818.
* FOR FURTHER INFORMATION CONTACT: Benjamin A. Kraut, Email: Krautb@state.gov, Phone: (202) 647-9452.
   In 2018, the United States took significant action under the Global Magnitsky sanctions program (Global Magnitsky). As of December 10, 2018, the United States has designated 101 foreign persons (individuals and entities) under E.O. 13818. This sanctions program, which targets human rights abusers, corrupt actors, and their enablers, represents the best of the United States’ values by taking impactful steps to protect and promote human rights and combat corruption around the world. Through the Act and E.O. 13818, the United States has sought to disrupt and deter serious human rights abuse and corruption abroad; promote accountability for those who act with impunity; and protect, promote, and enforce longstanding international norms alongside our partners and allies.
   As the President outlined in his National Security Strategy (NSS), liberty, free enterprise, equal justice under the law, and the dignity of every human life are values that represent who we are as a people. Further, the NSS states that we support with our words and actions those who live under oppressive regimes and seek freedom, individual dignity, and the rule of law. Through Global Magnitsky, the Administration is taking action to execute the President’s vision as described in the NSS.
   Actions taken in 2018 demonstrated the reach, flexibility, and broad scope of Global Magnitsky. The United States responded to an evolving crisis in Nicaragua, promoted accountability for serious human rights abuse constituting ethnic cleansing in Burma, addressed serious human rights abuse and corruption in the Democratic Republic of Congo, the Dominican Republic, Turkey, Cambodia, and Saudi Arabia, and clearly demonstrated the resolve of the Administration to leverage this important tool, when appropriate, to target individuals and entities engaging in specified conduct.
   When considering financial sanctions under Global Magnitsky, the United States prioritizes actions that are expected to produce a tangible and significant impact on the sanctioned persons and their affiliates, so as to prompt changes in behavior or disrupt the activities of malign actors. Persons sanctioned pursuant to this authority appear on the Office of Foreign Assets Control’s (OFAC) List of Specially Designated Nationals and Blocked Persons (SDN List). As a result of these actions, any property or interests in property of the sanctioned persons within or transiting U.S. jurisdiction is blocked. Additionally, U.S. persons are generally prohibited from engaging in transactions with blocked persons, including entities 50 percent or more owned by designated persons. The Secretary of the Treasury, in consultation with the Secretary of State and the Attorney General, imposed financial sanctions on the following persons pursuant to Global Magnitsky: …
   Dated: December 19, 2018.
David Hale, Under Secretary for Political Affairs, Department of State.

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3. USTR Grants Product Exclusions Relating to Section 301 Investigation of China

(Source: Federal Register, 28 Dec 2018.) [Excerpts.]
83 FR 67463-67468: Notice of Product Exclusions: China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation
* AGENCY: Office of the United States Trade Representative.
* ACTION: Notice of product exclusions.
* SUMMARY: Effective July 6, 2018, the U.S. Trade Representative (Trade Representative) imposed additional duties on goods of China with an annual trade value of approximately $34 billion (the $34 billion action) as part of the action in the Section 301 investigation of China’s acts, policies, and practices related to technology transfer, intellectual property, and innovation. The Trade Representative’s determination included a decision to establish a product exclusion process. The Trade Representative initiated the exclusion process in July 2018, and stakeholders have proceeded to submit requests for the exclusion of specific products. This notice announces the Trade Representative’s determination to grant certain exclusion requests, as specified in the Annex to this notice. The Trade Representative will continue to issue decisions on pending requests on a periodic basis.
* DATES: The product exclusions announced in this notice will apply as of the July 6, 2018 effective date of the $34 billion action, and will extend for one year after the publication of this notice. U.S. Customs and Border Protection will issue instructions on entry guidance and implementation.
* FOR FURTHER INFORMATION CONTACT: For general questions about this
notice, contact Assistant General Counsels Arthur Tsao or Megan Grimball, or Director ofIndustrial Goods Justin Hoffmann at (202) 395-5725. For specific questions on customs classification or implementation of the product exclusions identified in the Annex to this notice, contact traderemedy@cbp.dhs.gov.
   Based on the evaluation of the factors set out in the July 11 notice, which are summarized above, pursuant to sections 301(b), 301(c), and 307(a) of the Trade Act of 1974, as amended, and in accordance with the advice of the interagency Section 301 Committee, the Trade Representative has determined to grant the product exclusions set out in the Annex to this notice. The Trade Representative’s determination also takes into account advice from advisory committees and any public comments on the pertinent exclusion requests.
   As set out in the Annex to this notice, the exclusions are established in two different formats: (1) As an exclusion of an existing 10-digit subheading from within an 8-digit subheading covered by the $34 billion action, or (2) as an exclusion reflected in specially prepared product descriptions. In particular, the exclusions take the form of seven 10-digit HTSUS subheadings, and 24 specially prepared product descriptions. …
  Stephen Vaughn, General Counsel, Office of the U.S. Trade Representative.


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. Items Scheduled for Publication in Future Federal Register Editions

Federal Register)
[No items of interest noted today.]  

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Commerce/BIS: (No new postings.)


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6. DoD/DSCA Posts Policy Memo 18-63

(Source: DoD/DSCA, 28 Dec 2018.)
* DSCA Policy Memo 18-63
Calendar Year (CY) 2019 Transportation Costs Look Up Table Rates has been posted.

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7. State/DDTC: (No new postings.)
(Source: State/DDTC)
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ABC News, 28 Dec 2018.) [Excerpts.]
Despite the unwanted publicity of a criminal trial for one of their main suppliers, business is booming at Pyongyang’s ‘Singapore shops,’ which sell everything from Ukrainian vodka to brand-name knock-offs from China. The stores stock many of the very things United Nations’ sanctions banning trade in luxury goods are intended to block and provide a nagging reminder that not all potential trade partners are lining up behind the U.N.’s pronouncements or the Trump administration’s policy of maximum pressure on the North.
Especially when there’s a buck – or a few million bucks – to be made.
The stores are anything but secret.
They are well marked, open to walk-ins and distribute their own membership cards to reward regular customers. Until recently, the name of their Singaporean partner, the OCN Group, was printed on the Bugsae shop’s plastic shopping bags. And while being the focus of the court case that could land OCN’s former director in prison for a very long time, they continue to unabashedly specialize in imported products – perfumes, fine jewelry, wines, clothing and cosmetics – that would appear to blatantly violate U.N. restrictions. …
The well-stocked shelves belie the hit supplies must have taken with the arrest of their former Singaporean trading partner.
Ng Kheng Wah, 56, faces 80 charges of violating United Nations sanctions for allegedly supplying $6 million worth of luxury goods to the Bugsae Shop from 2010 to 2017. This includes watches “clad with a precious metal,” jewelry, musical instruments and wine. While OCN is not mentioned, the charges accuse Ng of trying to defraud banks through another of his companies, T Specialist International. …
Singapore authorities have accused another Singaporean and a North Korean man of helping to supply luxury goods to Pyongyang. They are also investigating a Singaporean businessman who is facing criminal charges in the United States for allegedly violating sanctions against North Korea. …
The case hints at an uncomfortable truth that has long hamstrung efforts to make sanctions enforcement really bite: engaging the North is not as uniformly taboo with potential trading partners as Washington might like.
China has long been Pyongyang’s biggest pipeline. With Ng on trial, it’s almost certainly where most of the Singapore shops’ goodies come from, even if they originate elsewhere. The two countries have a long border, a rail connection, and almost-daily flights between their capitals that allow for the transport of a significant amount of goods. Russia is another important trader. So have been interests in countries like Egypt, which helped fund and set up the North’s mobile phone system, and HB Oil of Mongolia, which was involved in a 2013 deal to build gas stations in Pyongyang. …

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CNBC, 27 Dec 2018.) [Excerpts.]
Key Points
  – President Donald Trump is considering an executive order to declare a national emergency that would bar U.S. companies from using telecommunications equipment made by China’s Huawei and ZTE, three sources familiar with the situation told Reuters.
  – The executive order would direct the Commerce Department to block U.S. companies from buying equipment from foreign telecommunications makers that pose significant national security risks, sources said.
President Donald Trump is considering an executive order in the new year to declare a national emergency that would bar U.S. companies from using telecommunications equipment made by China’s Huawei and ZTE, three sources familiar with the situation told Reuters.
It would be the latest step by the Trump administration to cut Huawei Technologies and ZTE, two of China’s biggest network equipment companies, out of the U.S. market. The United States alleges that the two companies work at the behest of the Chinese government and that their equipment could be used to spy on Americans.
The executive order, which has been under consideration for more than eight months, could be issued as early as January and would direct the Commerce Department to block U.S. companies from buying equipment from foreign telecommunications makers that pose significant national security risks, sources from the telecoms industry and the administration said.
While the order is unlikely to name Huawei or ZTE, a source said it is expected that Commerce officials would interpret it as authorization to limit the spread of equipment made by the two companies. The sources said the text for the order has not been finalized.
The executive order would invoke the International Emergency Economic Powers Act, a law that gives the president the authority to regulate commerce in response to a national emergency that threatens the United States.
The issue has new urgency as U.S. wireless carriers look for partners as they prepare to adopt next generation 5G wireless networks. 
The order follows the passage of a defense policy bill in August that barred the U.S. government itself from using Huawei and ZTE equipment.  . . .
Hit to rural networks
Rural operators in the United States are among the biggest customers of Huawei and ZTE, and fear the executive order would also require them to rip out existing Chinese-made equipment without compensation. Industry officials are divided on whether the administration could legally compel operators to do that.
While the big U.S. wireless companies have cut ties with Huawei in particular, small rural carriers have relied on Huawei and ZTE switches and other equipment because they tend to be less expensive.  
The company is so central to small carriers that William Levy, vice president for sales of Huawei Tech USA, is on the board of directors of the Rural Wireless Association (RWA).
The RWA represents carriers with fewer than 100,000 subscribers. It estimates that 25 percent of its members had Huawei or ZTE equipment in their networks, it said in a filing to the Federal Communications Commission earlier this month.
The RWA is concerned that an executive order could force its members to remove ZTE and Huawei equipment and also bar future purchases, said Caressa Bennet, RWA general counsel.  
It would cost $800 million to $1 billion for all RWA members to replace their Huawei and ZTE equipment, Bennet said.
Separately, the FCC in April granted initial approval to a regulation that bars giving federal funding to help pay for telecommunication infrastructure to companies that purchase equipment from firms deemed threats to U.S. national security, which analysts have said is aimed at Huawei and ZTE.
The FCC is also considering whether to require carriers to remove and replace equipment from firms deemed a national security risk.
In March, FCC Chairman Ajit Pai said “hidden ‘back doors’ to our networks in routers, switches – and virtually any other type of telecommunications equipment – can provide an avenue for hostile governments to inject viruses, launch denial-of-service attacks, steal data, and more.”  . . .

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Expeditors News, 27 Dec 2018.)
On December 21, 2018, U.S. Customs and Border Protection (CBP) announced that they plan to hold a public meeting on Friday, March 1, 2019, to discuss the themes of “The 21st Century Customs Framework”.
“The 21st Century Customs Framework” seeks to address numerous aspects of CBP’s trade mission in the 21st century, including:
  – Emerging Roles in the Global Supply Chain;
  – Intelligent Enforcement;
  – Cutting-Edge Technology;
  – Data Access and Sharing;
  – 21st Century Processes; and
  – Self-Funded Customs Infrastructure.
Members of the public seeking to submit comments to CBP must do so by February 4, 2019, by the Federal eRulemaking Portal at
http://www.regulations.gov, or may email or mail CBP directly. The meeting will take place at the U.S. International Trade Commission in Washington, DC between 9:00 A.M. and 5:00 P.M. EST.
The Federal Register Notice announcing the meeting may be found

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. A.V. Capobianco, B.P. Curran & A. Dukic: “Russia Sanctions: Remove an Oligarch, Return to Business”

Hogan Lovells, 27 Dec 2018.)
* Authors: Anthony V. Capobianco, Esq., anthony.capobianco@hoganlovells.com, +1 202-637-2568; Brian P. Curran, Esq., brian.curran@hoganlovells.com, +1 202-637-4886; and Aleksandar Dukic, Esq., aleksandar.dukic@hoganlovells.com, +1 202-637-546. All of Hogan Lovells.
On 19 December 2018, the U.S. Department of the Treasury, Office of Foreign Assets Control (OFAC) submitted a notification to Congress that it plans to terminate sanctions on three major companies originally designated for their ownership and control by Russian oligarch Oleg Deripaska, permitting Western companies to breathe a sigh of relief.
The companies, En+ Group plc (En+), UC Rusal plc (Rusal), and JSC EuroSibEnergo (ESE), have committed to OFAC to undertake a number of steps to address the circumstances that led to their designation, including (i) reducing Deripaska’s direct and indirect shareholding stake; (ii) overhauling the composition of the En+ and Rusal boards of directors; (iii) taking other restrictive steps related to their corporate governance; and (iv) committing to full transparency with OFAC by undertaking extensive, ongoing auditing, certification, and reporting requirements. These three companies, two of which operate in the energy sector and one of which, Rusal, is one of the largest aluminum producers in the world, have extensive dealings with Western businesses and their designation had raised substantial questions and concerns for American and European enterprises in a range of industries since sanctions were imposed last April.
Sanctions on a Russian oligarch and his major business holdings
Oleg Deripaska was reportedly targeted by OFAC for sanctions as a significant operator in Russia’s energy sector, itself targeted for sanctions, and for his connections to the Russian Government. When designated, OFAC noted that Deripaska had been accused of a number of nefarious activities, including threatening the lives of his business rivals, illegal wiretapping, bribery, ordering the murder of a businessman, and having connections to Russian organized crime.
On 6 April 2018, pursuant to the Countering America’s Adversaries Through Sanctions Act (CAATSA) and Executive Orders 13661, 13662, and 13582, OFAC designated the Russian oligarch Deripaska and his business holdings En+, Rusal, and ESE on its List of Specially Designated Nationals and Blocked Persons (SDN List). Designation on the SDN List under these authorities effectively prohibits all transactions with Deripaska and these entities, as well as entities that they own 50 percent or more, that involve a U.S. nexus, including U.S. persons, U.S.-origin items (including hardware, software, and technology), and U.S. dollars or financial institutions. Furthermore, these designations go so far as to subject non-U.S. companies to exposure forpossible sanction by the U.S. Government for engaging in certain business with these SDNs even when transacting without any nexus to the U.S., creating substantial risks for companies around the world.
General licenses creating space for wind down and negotiation
Recognizing the potential disruption that these designations could have for U.S., European, and other companies, OFAC has issued a series of general licenses permitting certain activities involving the sanctioned companies. These provided U.S. companies with an opportunity to wind down their business and offered the sanctioned companies an opportunity to address the cause of their designation and eliminate Deripaska’s substantial control and shareholdings in the companies’ operations. OFAC’s December 19th announcement is the highly anticipated result of months of negotiations between the sanctioned companies and OFAC and outlines the steps that these companies have agreed to take in order to effect their removal from the SDN List.
Commitments to OFAC to reduce Deripaska’s ownership and control
OFAC’s decision to terminate the sanctions against En+, Rusal, and ESE hinge on extensive corporate governance restructuring and other commitments by En+, which is directly owned by Deripaska and is the parent of Rusal and ESE, as well as the two subsidiary entities themselves. Specifically, the sanctioned entities agreed to the following terms, among others, so long as Deripaska remains on the SDN List:
  – Reduced and limited shareholding: Deripaska will have no direct ownership stake in ESE and only a .01 percent direct ownership stake in Rusal. En+ will reduce Deripaska’s interest from approximately 70 percent to 44.95 percent, effected through transfers of shares that do not lead to the direct or indirect receipt of funds by Deripaska.
  – Dividends frozen: Deripaska may not obtain cash in return for his shares or from future dividends issued by En+, Rusal, or ESE.
  – Limited voting rights:Deripaska will not be allowed to vote more than 35 percent of En+ shares. Any of his voting rights above the 35 percent will be assigned to a voting trust obligated to vote with the majority of non-Deripaska voting shares. En+ shareholders identified by OFAC to have ties to Deripaska will likewise have to assign their voting rights to an independent third party for voting.
  – Independent board of directors: En+ agreed to create a twelve-person board of directors with a majority of independent directors, eight of which will be independent of Deripaska and selected through an independent executive search firm, half of which will be of U.S. or UK nationality with extensive business expertise, and only four of which will Deripaska have the right to nominate but which will not be permitted to sit on the Audit or Nominations committees.
  – Further extinguishment of control: Deripaska is further required to provide En+ with a deed letter binding him to take a number of steps to sever his ability to control En+ and En+ is required to certify that it has not granted Deripaska or his relatives rights beyond those of ordinary shareholders.
  – Ongoing transparency through auditing, certification, and reporting: En+, Rusal, and ESE have agreed to provide OFAC with extensive transparency into their management and operations, including auditing, monthly certifications, quarterly reports, access to board meeting minutes, and a number of other commitments to notify OFAC of certain changes in structure and operation.
Delisting and a resumption of normal operations for business partners
As a result of the commitments made by En+, Rusal, and ESE to reorganize their structure and
eliminate significant ownership and control of their business affairs by Deripaska, OFAC has agreed to delist these sanctioned entities from the SDN List in thirty days, enabling their U.S. and foreign business partners to resume normal business dealings.
General License No. 13I permitting divestment and certain transfers
The day after OFAC made its announcement to Congress that it intended to remove sanctions on these entities, it issued General License No. 13I, extending the period of authorization for activities by U.S. persons that are ordinarily incident and necessary to the divestment or transfer of debt, equity or other holdings in En+ and Rusal to a non-U.S. person or to facilitate such divestment or transfer by a non-U.S. person to another non-U.S. person. Under General License No. 13I, U.S. persons are permitted to engage in the authorized divestment and transfer activities related to En+ and Rusal until 21 January 2019. This extension continues to authorize U.S. persons to reduce their holdings in these sanctioned entities, which remain subject to U.S. sanctions until delisted by OFAC.

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(Source: Author)

* Author: Sam Weiss Evans, Assist. Prof., Tufts University,
sam@samuelevansresearch.org; Visiting Fellow, Univ. of Cambridge; +1 617.545.4787 (US/global); +44 7586 312 168 (UK mobile).

The Department of Commerce Bureau of Industry & Security (BIS) Advance notice of Proposed Rulemaking (ANPRM) on “Review of Controls for Certain Emerging Technology” provides an opportunity to look at how we might better use export controls to ensure security, promote the economy, and support academic freedom. Emerging technology and research have always been contentious issues within export controls, and the ANPRM is the result of two significant changes in the export control landscape: The passage of the Export Controls Act of 2018 and the transition of the Emerging Technology and Research Advisory Committee (ETRAC) into the Emerging Technology Technical Advisory Committee (ETTAC). 

With a little over a week before comments are due (on 10 January), I am sharing my analysis of how BIS might use the ETTAC and the interagency process as a testing ground for negotiating the changing landscape of export controls in a 21st century political and technical environment.  My three main recommendations are:
  (1) With up to four years between emerging technology identification and international harmonization, formal definition of emerging technology of security concern should only be done for the narrowest band of technology that the US can guarantee it will possess and other nations will not possess within that time frame.
  (2) The US must develop security governance capabilities over emerging technology that are more attuned to the interconnected nature of global research and commerce than export controls are, and ETTAC is ideally placed as a forum for working out what those new capabilities might be, and how they will relate to export controls.
  (3) The methodology of ETTAC and the interagency process should be open to public scrutiny, even though the application of any particular instance of that methodology will likely be restricted for national security and proprietary reasons.

My full comment is available here. Any additions or corrections to my comment are welcome before 7 January to sam@evansresearch.org

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FCC Presents Renewed U.S. Export Controls Awareness Course: “ITAR & EAR from a non-U.S. Perspective”, 9 April in Bruchem, the Netherlands

Our next academy course is specifically designed for beginning compliance professionals and those in a similar role who aim to stay up-to-date with the latest U.S. export control requirements that apply to non-U.S. transactions, and industry’s best practices.
The course will cover multiple topics relevant for organizations outside the U.S. that are subject to U.S. export controls, including: the U.S. regulatory framework, key concepts and definitions, tips regarding classification and licensing, essential steps to ensure a U.S. export control compliant shipment, how to handle a (potential) non-compliance issue, recent enforcement trends, and the latest and anticipated regulatory amendments.  Participants will receive a certification upon completion of the training.
* What: Awareness Course U.S. Export Controls: ITAR & EAR from a Non-U.S. Perspective 
* When: Tuesday, 9 Apr 2010, 9.30 am – 4.30 pm (CET)
* Where: Landgoed Groenhoven, Bruchem, the Netherlands
* Sponsor: 
Full Circle Compliance (FCC)
* Instructors: Michael E. Farrell and Alexander P. Bosch 
* Information & Registration: 
HERE, email 
events@fullcirclecompliance.eu, or call Mr. Vincent Goossen at +31 6 15 65 02 09.
Register before 18 February and get a 
10% Early Bird discount 

on the course fee!

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List of Approaching Events: 58 Events Posted This Week, Including 7 New Events
(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


* 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 28 – Apr 8: Wilmington, CA: “
Customs Brokers License Exam Course
;” FTA

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

Jan 30-31, 2019: Pittsburgh, PA; “
Complying with U.S. Export Controls
“; Commerce/BIS

* 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 6-7: Washington , D.C.; “International Technology Transfers, Cloud Computing & Deemed Export Compliance“; American Conference Institute

* Feb 11-12: 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 13: Southampton; “
UK Export Control Awareness Breakfast
“; Hampshire Chamber of Commerce, ECJU, and Trethowans LLP

* Feb 18-21: Orlando, FL; “
ITAR Defense Trade Controls / EAR Export Controls Seminar

Feb 26-27: Miami, FL; “
Complying with U.S. Export Controls
“; Commerce/BIS

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

Mar 5-6: San Diego, CA; “
Complying with U.S. Export Controls
“; Commerce/BIS

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 9: Bruchem, The Netherlands; “Awareness Course U.S. Export Controls: ITAR & EAR from a Non-U.S. Perspective“; Full Circle Compliance
* 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
May 7: Bruchem, The Netherlands; “An Introduction to EU / Dutch Dual-Use and Military Export Controls“; Full Circle Compliance

Jun 5-6: Seattle, WA; “
Complying with U.S. Export Controls
“; Commerce/BIS

Jun 10: Cleveland, OH; “
Letters of Credit
“; Global Training Center
Jun 11: Cleveland, OH; “
Export Doc & Proc
“; Global Training Center
Jun 12: Cleveland, OH; “
Tariff Classificatio
n“; Global Training Center
Jun 13: Cleveland, OH; “
NAFTA Rules of Origin
“; Global Training Center
Jun 14: Cleveland, OH; “
Incoterms® 2010 Rules
“; Global Training 
* Jun 17-20: San Diego, CA; “ITAR Defense Trade Controls / EAR Export Controls“; ECTI

Jul 8 – 10: National Harbour, MD; “
2019 Summer Back to Basics 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

Aug 20-21: Milpitas, CA;

Complying with U.S. Export Controls
Aug 22: Milpitas, CA:

Encryption Controls

* 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 1: Bruchem, The Netherlands; “The Export Administration Regulations (EAR) from a non-U.S. Perspective“; Full Circle Compliance

Oct 28 – 29: Washington D.C.; “
2019 Fall Advanced Conference
“; SIA
Nov 26; Bruchem, The Netherlands; “The International Traffic in Arms Regulations (EAR) from a non-U.S. Perspective“; Full Circle Compliance


. Bartlett’s Unfamiliar Quotations

(Source: Editor)
* Mortimer Adler (Mortimer Jerome Adler; 28 Dec 1902 – 28 Jun 2001; was an American philosopher, educator, and popular author.  Adler and Hutchins went on to found the Great Books of the Western World program and the Great Books Foundation.)
  – “In the case of good books, the point is not to see how many of them you can get through, but how many can get through to you.”
* Woodrow Wilson (Thomas Woodrow Wilson; 28 Dec 28, 1856 – 3 Feb 1924; was an American statesman and academic who served as the 28th president of the United States from 1913 to 1921. A member of the Democratic Party, Wilson served as the president of Princeton University from 1902 to 1910, and as governor of New Jersey from 1911 to 1913, before winning the 1912 presidential election.)
  – “I would rather lose in a cause that will some day win, than win in a cause that will some day lose.”
Friday funnies: 
* Q.  Why aren’t koalas actual bears?
   A.  The don’t meet the koalafications.
* I went in to a pet shop. I said, “Can I buy a goldfish?” The guy said, “Do you want an aquarium?”  I said, “I don’t care what star sign it is.”
* Q. What’s the difference between an oral thermometer and a rectal thermometer?
   A. The taste.

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

EN_a216. 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.

: 19 CFR, Ch. 1, Pts. 0-199.  Implemented by Dep’t of Homeland Security, U.S. Customs & Border Protection.
  – Last Amendment: 18 Dec 2018: 
83 FR 64942-65067
: Modernized Drawback  

: 15 CFR Subtit. B, Ch. VII, Pts. 730-774. Implemented by Dep’t of Congress, Bureau of Industry & Security.
  – Last Amendment: 20 Dec 2018: 
83 FR 65292-65294
: Control of Military Electronic Equipment and Other Items the President Determines No Longer Warrant Control Under the United States Munitions List (USML); Correction [Concerning ECCN 7A005 and ECCN 7A105.]
: 15 CFR Part 30.  Implemented by Dep’t of Congress, U.S. Census Bureau.
  – 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 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 
.  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 

: DoD 5220.22-M. Implemented by Dep’t of Defense.
  – 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 

: 10 CFR Part 810; Implemented by Dep’t of Energy, National Nuclear Security Administration, under the Atomic Energy Act of 1954.
  – Last Amendment: 23 Feb 2015:

80 FR 9359
, comprehensive updating of regulations, updates the activities and technologies subject to specific authorization and DOE reporting requirements. This rule also identifies destinations with respect to which most assistance would be generally authorized and destinations that would require a specific authorization by the Secretary of Energy.

; 10 CFR Part 110; Implemented by Dep’t of Energy, U.S. Nuclear Regulatory Commission, under the Atomic Energy Act of 1954.
  – Last Amendment: 20 Nov 2018, 10 CFR 110.6, Re-transfers.

: 27 CFR Part 447-Importation of Arms, Ammunition, and Implements of War.  Implemented by Dep’t of Justice, Bureau of Alcohol, Tobacco, Firearms & Explosives.
  – Last Amendment: 26 Dec 2018: 
83 FR 66514-66554
: Bump-Stock-Type Devices

: 22 C.F.R. Ch. I, Subch. M, Pts. 120-130. Implemented by Dep’t of State, Directorate of Defense Trade Controls.
  – 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.
: 31 CFR, Parts 500-599, Embargoes, Sanctions, Executive Orders. 
Implemented by Dep’t of Treasury, Office of Foreign Assets Control.
  – Last Amendment: 15 Nov 2018: 
83 FR 57308-57318
: Democratic Republic of the Congo Sanctions Regulations
, 1 Jan 2018: 19 USC 1202 Annex. Implemented by U.S. International Trade Commission. (“HTS” and “HTSA” are often seen as abbreviations for the Harmonized Tariff Schedule of the United States Annotated, shortened versions of “HTSUSA”.)
  – Last Amendment: 19 Dec 2018: 
Harmonized System Update (HSU) 1820
, containing 19,061 ABI records and 3,393 harmonized tariff records.
  – HTS codes for AES are available 
  – HTS codes that are not valid for AES are available 

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

. 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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