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19-0313 Wednesday “Daily Bugle'”

19-0313 Wednesday “Daily Bugle”

Wednesday, 13 March 2019

  1. Commerce/BIS Seeks Comments on License Exemptions and Exclusions
  2. Commerce/BIS Seeks Comments on Offsets in Military Exports
  1. Items Scheduled for Publication in Future Federal Register Editions
  2. Commerce/BIS: Shavkat Abdullaev of Philipsburg, PA, Denied Export Privileges for Five Years
  3. State/DDTC: (No new postings.)
  4. Hong Kong TID Announces System Maintenance for 18 Mar
  1. Expeditors News: “CBP Announces HTSUS UOQ Changes”
  2. ST&R Trade Report: “Aerospace Imports from EU Eased Under New Pact”
  1. D. Wolff & F.P Hadfield: “OFAC Enforcement Action: Do You Know What Your Subsidiaries Are Doing?”
  2. Global Trade News: “Weise Wednesday: Which New Trade Developments Will Impact the US Trade Community?”
  3. T. McVey: “U.S. Sanctions Laws: Dangers Ahead for Foreign Companies”
  1. ECTI Presents “Cornerstones of EAR Compliance: Technology & Software Classification, and No License Required (NLR) Determination” Webinar, 10 Apr
  2. FCC to Provide Training on Export Controls & Compliance, 2 Apr at NAG, Delft, the Netherlands
  1. Bartlett’s Unfamiliar Quotations 
  2. Are Your Copies of Regulations Up to Date? Latest Amendments: DHS/Customs (12 Mar 2019), 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 (7 Mar 2019) 
  3. Weekly Highlights of the Daily Bugle Top Stories 

EXIMITEMS FROM TODAY’S FEDERAL REGISTER

(Source:
Federal Register
, 13 Mar 2019.) [Excerpts.]
 
84 FR 9085: Proposed Information Collection; Comment Request; License Exemptions and Exclusions
* AGENCY: Bureau of Industry and Security.
* ACTION: Notice. …
* DATES: Written comments must be submitted on or before May 13, 2019.
* ADDRESSES: Direct all written comments to Jennifer Jessup, Departmental Paperwork Clearance Officer, Department of Commerce, Room 6616, 14th and Constitution Avenue NW, Washington, DC 20230 (or via the internet at
PRAcomments@doc.gov
)
* FOR FURTHER INFORMATION CONTACT: Requests for additional information or copies of the information collection instrument and instructions should be directed to Mark Crace, BIS ICB Liaison, (202) 482-8093,
mark.crace@bis.doc.gov
.
* SUPPLEMENTARY INFORMATION:
   Over the years, BIS has worked with other Government agencies and the affected public to identify areas where export licensing requirements may be relaxed without jeopardizing U.S. national security or foreign policy. Many of these relaxations have taken the form of licensing exceptions and exclusions. Some of these license exceptions and exclusions have a reporting or recordkeeping requirement to enable the Government to continue to monitor exports of these items. Exporters may choose to utilize the license exception and accept the reporting or recordkeeping burden in lieu of submitting a license application. These exceptions and exclusions have resulted in a large reduction of licensing burden in OMB Control No. 0694-0088 and allow exporters to ship items quickly, without having to wait for license approval.
It is up to the individual company to decide whether it is most advantageous to continue to submit license applications or to comply with the reporting or recordkeeping requirements and take advantage of the licensing exception or exclusion.
  Comments are invited on: (a) Whether the proposed collection of information is necessary for the proper performance of the functions of the agency, including whether the information shall have practical utility; (b) the accuracy of the agency’s estimate of the burden (including hours and cost) of the proposed collection of information; (c) ways to enhance the quality, utility, and clarity of the information to be collected; and (d) ways to minimize the burden of the collection of information on respondents, including through the use of automated collection techniques or other forms of information technology.
  Comments submitted in response to this notice will be summarized and/or included in the request for OMB approval of this information collection; they also will become a matter of public record.
 
  Sheleen Dumas, Departmental Lead PRA Officer, Office of the Chief Information Officer, Commerce Department.
* * * * * * * * * * * * * * * * * * * *

(Source:
Federal Register
, 13 Mar 2019.) [Excerpts.]
 
84 FR 9084-9085: Proposed Information Collection; Comment Request; Offsets in Military Exports
* AGENCY: Bureau of Industry and Security, Department of Commerce.
* ACTION: Notice. …
* DATES: To ensure consideration, written comments must be submitted on or before May 13, 2019.
* ADDRESSES: Direct all written comments to Jennifer Jessup, Departmental Paperwork Clearance Officer, Department of Commerce, 1401 Constitution Avenue NW, Room 6616, Washington, DC 20230 (or via the internet at
PRAcomments@doc.gov
.)
* FOR FURTHER INFORMATION CONTACT: Requests for additional information or copies of the information collection instrument and instructions should be directed to Mark Crace, BIS ICB Liaison, (202) 482-8093,
mark.crace@bis.doc.gov
.
* SUPPLEMENTARY INFORMATION: …
  This collection of information is required by the Defense Production Act (DPA). The DPA requires U.S. firms to furnish information to the Department of Commerce regarding offset agreements exceeding $5,000,000 in value associated with sales of weapon systems or defense-related items to foreign countries or foreign firms. Offsets are industrial or commercial compensation practices required as a condition of purchase in either government-to-government or commercial sales of defense articles and/or defense services as defined by the Arms Export Control Act and the International Traffic in Arms Regulations. Such offsets are required by most major trading partners when purchasing U.S. military equipment or defense related items. …
Comments are invited on: (a) Whether the proposed collection of information is necessary for the proper performance of the functions of the agency, including whether the information shall have practical utility; (b) the accuracy of the agency’s estimate of the burden (including hours and cost) of the proposed collection of information; (c) ways to enhance the quality, utility, and clarity of the information to be collected; and (d) ways to minimize the burden of the collection of information on respondents, including through the use of automated collection techniques or other forms of information technology.
  Comments submitted in response to this notice will be summarized and/or included in the request for OMB approval of this information collection; they also will become a matter of public record.
 
  Sheleen Dumas, Departmental Lead PRA Officer, Office of the Chief Information Officer, Commerce Department.
* * * * * * * * * * * * * * * * * * * *

OGSOTHER GOVERNMENT SOURCES

OGS_a13. Items Scheduled for Publication in Future Federal Register Editions
(Source: Federal Register)

 

* Justice; Alcohol, Tobacco, Firearms, and Explosives Bureau; RULES; Bump-Stock-Type Devices [Pub. Date: 14 Mar 2019.]

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

(Source:
Commerce/BIS, 13 Mar 2019.)
 
* Respondent: Shavkat Abdullaev, Philipsburg, PA
* Charges: On 1 December 2016, in the U.S. District Court for the Eastern District of New York, Shavkat Abdullaev (“Abdullaev”) was convicted of violating the International Emergency Economic Powers Act (50 U.S.C. § 1701, et seq. (2012)) (“IEEPA”). Specifically, Abdullaev was convicted of knowingly and intentionally exporting from the United States to Russia microelectronics without the required U.S. Department of Commerce licenses. Abdullaev was sentenced to 36 months in prison, two years of supervised release, and a $400 assessment.
* Debarred: For a period of five years, until 1 December 2021
* Date of Order: 8 Mar 2019.

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

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

 
All e-services of our website will be suspended from 18:30 to 23:00 on 18 March 2019 (Monday) due to system maintenance.

We apologize for any inconvenience caused.

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

NWSNEWS

NWS_a17. Expeditors News: “CBP Announces HTSUS UOQ Changes”
(Source: Expeditors News, 12 Mar 2018.)
 
On March 8, 2019, U.S. Customs and Border Protection (CBP) announced a timeline for converting the Harmonized Tariff Schedule of the United States (HTSUS) units of quantity (UOQ) to align with the Trade Facilitation and Trade Enforcement Act (TFTEA).
 
CBP is working with the U.S. Census Bureau and the U.S. International Trade Commission to change UOQ with a statistical suffix of “X” to specific quantities. According to CBP, the first HTSUS update was on January 1, 2019 and has tentatively scheduled the next update for January 1, 2020. CBP directs any questions to 484f@cbp.dhs.gov.
 
The CBP press release may be found here.

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NWS_a28. ST&R Trade Report: “Aerospace Imports from EU Eased Under New Pact”

 
The Federal Aviation Administration reports that the U.S. and the European Union recently signed two decisions that provide greater access to aerospace markets, products, and services.
 
The first decision enables reductions of the EU’s European Aviation Safety Agency fees for validation of U.S. aerospace products. This decision covers simple design modifications such as basic supplemental type certificates and the fee reductions will take effect April 8.
 
The second decision amends the U.S./EU Safety Agreement to remove country-specific limitations associated with aeronautical products and parts eligible for import into the U.S. This amendment treats all EU member states equally under the agreement and recognizes EASA’s oversight and standardization processes throughout their jurisdiction.

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

COMMCOMMENTARY

 
* Authors: David Wolff, Esq., djwolff@crowell.com, +1 202-624-2548; Frances P. Hadfield, fhadfield@crowell.com, +1 212-803-4040. Both of Crowell & Moring LLP.
 
On February 14, 2019, the Office of Foreign Assets Control (OFAC) announced it had assessed a civil monetary penalty of over $5.5 million dollars against AppliChem GmbH (AppliChem) of Darmstadt, Germany (a company that manufactures chemicals and reagents for the pharmaceutical and chemical industries) for 304 violations of the Cuban Assets Control Regulations, 31 C.F.R. part 515 (CACR). Specifically, OFAC determined that between May 2012 and February 2016, after it had been purchased by a U.S. company and come within the jurisdiction of the U.S. sanctions on Cuba, AppliChem sold chemical reagents to Cuba. 19 C.F.R. § 515.201.
 
A. The U.S. Company’s Merger and Acquisition Due Diligence Team Successfully Identified the Cuban Sanctions Issue.
 
On January 1, 2012, Illinois Tool Works, Inc. (ITW), a company based in Glenview, Illinois, acquired AppliChem. In December 2011, during its merger and acquisition due diligence, ITW discovered references to countries subject to U.S. economic and trade sanctions on AppliChem’s website. That same month, ITW told AppliChem it would be required to cease all Cuban transactions after it was acquired. ITW then incorporated AppliChem into its Reagents Division, and allowed AppliChem’s former owners to stay on as manager-employees. On January 12, 2012, the General Manager of ITW’s Reagents Division sent AppliChem’s former owners a memorandum explaining ITW’s guidelines for complying with U.S. sanctions, including the CACR.
 
B. Willful Evasion by the Non-U.S. Entity and Persons Working for It.
 
However, despite these warnings, AppliChem continued to complete and collect on existing orders with Cuba under pre-acquisition contracts. Upon discovering AppliChem’s continued Cuban business, ITW’s European legal department sent a third warning to AppliChem’s former owners on April 5, 2012 to immediately cease all sales to Cuba.
 
In late January 2016, an anonymous report was made through ITW’s ethics helpline. The call alleged that AppliChem had continued making sales to Cuba through an intermediary company in Berlin, Germany. ITW began a full investigation, which revealed that AppliChem’s former owners had continued AppliChem’s Cuba business by creating a scheme that concealed this business from ITW after having been specifically told by ITW to cease Cuban sales.
 
Rather than ceasing sales to Cuba as directed by ITW, between February 2012 and April 2012, AppliChem designed and implemented what it called the “Caribbean Procedures” (whereby Cuba was referred to by the code word “Caribbean”), which made sure that no documents mentioning Cuba would be prepared or retained by AppliChem in connection with its continued business with the country. Pursuant to the Caribbean Procedures, AppliChem engaged an external logistics company and an independent hazardous materials consultant to prepare the necessary shipping documents and hazardous materials declarations, which previously had been handled internally.
Once AppliChem implemented the Caribbean Procedures, AppliChem senior management conducted both written and in-person training sessions for AppliChem’s staff, particularly those working in the logistics department, to ensure that Cuba-related sales would be concealed from ITW. The reasons for the implementation of the Caribbean Procedures were “well known to AppliChem staff during this time” and were described by AppliChem staff as an “open secret” at AppliChem. Consequently, between May 2012 and February 2016, AppliChem fulfilled Cuban orders on 304 invoices. The transaction value of the shipments made during this time was €2,833,701 (approximately $3,433,495).
 
C. OFAC Investigation and Results
 
OFAC determined that ITW voluntarily self-disclosed the violations on behalf of AppliChem, and that the violations constituted an egregious case. The statutory maximum civil monetary penalty applicable in this matter was over $20 million dollars. The base civil monetary penalty was over $10 million dollars.
 
OFAC determined the following to be aggravating factors:
  (1) The willful conduct of AppliChem’s management.
  (2) The use of written procedures to engage in a pattern of conduct in violation of the CACR.
  (3) AppliChem’s sales to Cuba of approximately $3,433,495 in 304 transactions over the course of five years caused significant harm to the sanctions program objective of maintaining a comprehensive embargo on Cuba.
  (4) The size and sophistication of AppliChem, with an average annual revenue of around $23 million between 2012 and 2015, and the fact that it is a subsidiary of ITW, a large international company.
 
OFAC determined the following to be mitigating factors:
 
Once ITW discovered ApliChem’s perfidy, it cooperated by filing a thorough voluntary self-disclosure with OFAC, providing prompt responses to requests for information, performing a thorough internal investigation, and signing a tolling agreement on behalf of AppliChem.
 
This case demonstrates the importance of auditing and verifying foreign subsidiaries. In contrast to previous enforcement actions in which a buyer failed to identify a sanctions exposure, ITW identified the sales and took steps to ensure they ceased. The issue arose because of its new subsidiary’s ability to circumvent those instructions and hide ongoing sales, underscoring the importance of verifying that internal procedures are being followed. Further, U.S. companies with international operations should consider:
 
  (1) Implementing risk-based controls, such as regular audits, to ensure subsidiaries are complying with their obligations under OFAC’s sanctions regulations.
  (2) Performing follow-up due diligence on acquisitions of foreign persons known to engage in historical transactions with sanctioned persons and jurisdictions.
  (3) Appropriately responding to derogatory information regarding the sanctions compliance efforts of foreign persons subject to the jurisdiction of the United States.

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COM_a210. Global Trade News: “Weise Wednesday: Which New Trade Developments Will Impact the US Trade Community?”
(Source: Integration Point Blog, 13 Mar 2019.)
 
Welcome to Weise Wednesday! Twice a month we will share a brief Q&A with the former U.S. Commissioner of Customs, Mr. George Weise. If you have questions, we encourage you to send them to AskGeorge@IntegrationPoint.com.
 
Q: What new trade developments have you seen that would affect the U.S. trade community?
 
A: The two most important developments for the trade community relate to upcoming changes in eligibility for benefits under the Generalized System of Preferences (GSP) program and a change in the status of the U.S.-China trade dispute.
 
India and Turkey about to lose GSP eligibility
 
On March 4, U.S. Trade Representative Robert Lighthizer announced, at the direction of the President, that the United States intends to remove India and Turkey as beneficiary developing countries under the GSP program.  
According to the statement issued by USTR, “India’s termination from GSP follows its failure to provide the United States with assurances that it will provide equitable and reasonable access to its markets in numerous sectors. Turkey’s termination from GSP follows a finding that it is sufficiently economically developed and should no longer benefit from preferential market access to the United States market.”
 
These changes are expected to be effectuated by a Presidential Proclamation, but by statute, the changes cannot take effect until at least 60 days after official notifications are made to Congress and the governments of India and Turkey.  Unless negotiations between the parties can convince the U.S. not to move forward on these actions, importers can expect to pay increased tariffs on a number of products that had formerly been eligible for duty-free treatment under the GSP program.
 
Developments in the U.S.-China trade dispute
 
As I previously discussed, tariffs on numerous Chinese products imported into the U.S. that were included on the so-called List 3 were scheduled to be increased from 10% ad valorem to 25% ad valorem on March 1, unless a substantial trade agreement was reached between the two countries.
 
The good news is that President Trump recently announced on Twitter that he would postpone that scheduled increase in tariffs because the ongoing trade talks between the U.S. and China have been going well. On Twitter, the President stated, “I am pleased to report that the U.S. has made substantial progress in our trade talks with China on important structural issues including intellectual property protection, technology transfer, agriculture, services, currency, and many other issues. As a result of these very productive talks, I will be delaying the U.S. increase in tariffs now scheduled for March 1st.” The President concluded in his tweet, “Assuming both sides make additional progress, we will be planning a Summit for President Xi and myself, at Mar-a-Lago, to conclude an agreement.”
 
This is clearly good news for global traders, assuming an agreement can be reached between the parties. What isn’t clear at this point, however, is how comprehensive the agreement is likely to be, and whether any of the previously implemented additional tariffs already imposed by both countries will be eliminated or continued. As always, stay tuned and stay engaged.

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

COM_a311. T. McVey: “U.S. Sanctions Laws: Dangers Ahead for Foreign Companies”
(Source:
Williams Mullen
, 12 Mar 2019.) [Excerpts.]
 
* Author: T. McVey, Williams Mullen, Esq.,
tmcvey@williamsmullen.com
, +1 202-293-8118
 
Introduction
. International companies are signaling growing concern about the U.S. sanctions laws. These laws impose restrictions on entering business transactions with certain targeted countries, companies and even individual persons anywhere in the world. These apply, of course, to U.S. firms. However, they can also apply to non-U.S. parties in certain cases, even in activities that have no connection to the U.S. Many foreign companies ask how the U.S. Government can extend the long arm of its jurisdiction around the world – yet the incidence of U.S. sanctions on non-U.S. parties is increasing.   In light of the significant recent penalties imposed on non-U.S. parties for U.S. sanctions violations, including $8.9 billion for financial institutions [FN/1] and $1.19 billion for non-financial companies, [FN/2] every non-U.S. company should be aware of these laws.
 
The U.S. sanctions laws can apply to foreign parties in a number of ways – if foreign companies have certain requisite contacts with the U.S., under “secondary sanctions” and for providing material support and assistance to certain parties that have been targeted for sanctions. In addition, foreign persons and entities can be individually designated for sanctions and placed on U.S. List of Specially Designated Nationals and Blocked Persons or other restricted party lists. Problems can come out of nowhere – such as when Huawei Technologies CFO Meng Wanzhou was recently arrested in a Canadian airport lounge for extradition to the U.S. for U.S. sanctions violations.  
 
These laws create a growing legal risk for foreign companies and financial institutions – often without their even knowing it. The following provides a more detailed discussion of the U.S. sanctions laws for non-U.S. companies and steps they can take to reduce these risks. …
 

[Editor’s Note: Due to the length of this article we only posted an excerpt of it in today’s Daily Bugle. The item can be read in its entirety
here.]

 
—————-
  [FN/1] On May 1, 2015 the U.S. Justice Department announced the conviction of BNP Paribas S.A. for conspiring to violate the U.S. sanctions laws with a total financial penalty (including forfeiture and criminal fine) of $8.9 billion. See Justice Department release
here
.
  [FN/2] In March 2017
ZTE Corporation agreed to pay $1.19 billion
in combined civil and criminal penalties for violations of U.S. sanctions laws regarding sales of products to Iran.

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TEEX/IM TRAINING EVENTS & CONFERENCES

TE_a112. ECTI Presents “Cornerstones of EAR Compliance: Technology & Software Classification, and No License Required (NLR) Determination” Webinar, 10 Apr

(Source: D. Hatch, danielle@learnexportcompliance.com)
 
* What: Cornerstones of EAR Compliance: Technology & Software Classification, and No License Required (NLR) Determination
* When: April 10, 2019; 1:00 p.m. (EDT)
* Where: Webinar
* Sponsor: Export Compliance Training Institute (ECTI)
* ECTI Speaker: Scott Gearity
* Register: here or contact Danielle Hatch, 540-433-3977, danielle@learnexportcompliance.com.

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

TE_a213. FCC to Provide Training on Export Controls & Compliance, 2 Apr at NAG, Delft, the Netherlands 

(Source: Editor) 
 
* What: Export Compliance Training, including the following topics:
  – International relations and developments in the export control arena
  – Export control regulations overview (U.S. and EU/Dutch)
  – Recent developments concerning Internal Compliance Programs (ICPs) requirements.
* When: Tuesday, 2 Apr 2019, 9.30 am – 1.30 pm (CET)
* Where: Netherlands Aerospace Group (“NAG”), Molengraaffsingel 10, Delft, the Netherlands. 
* Sponsor: NAG and Full Circle Compliance (“FCC”)
* Instructors: Drs. Ghislaine C.Y. Gillessen RA & Drs. Vincent Goossen (both of FCC)

* Registration & Information: 
here
 or send an email to
events@fullcirclecompliance.eu
.

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ENEDITOR’S NOTES

* Walter Annenberg (Walter Hubert Annenberg; 13 Mar 1908 – 1 Oct 2002; was an American businessman, investor, philanthropist, and diplomat. Annenberg owned and operated Triangle Publications, which included ownership of The Philadelphia Inquirer, TV Guide, the Daily Racing Form, and Seventeen magazine. He was appointed by President Richard Nixon as United States Ambassador to the United Kingdom, where he served from 1969 to 1974.)
  – “Too much work, too much vacation, too much of any one thing is unsound.”
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EN_a315
. Are Your Copies of Regulations Up to Date?
(Source: Editor)

 

*
DHS CUSTOMS REGULATIONS: 19 CFR, Ch. 1, Pts. 0-199.  Implemented by Dep’t of Homeland Security, U.S. Customs & Border Protection.

  – Last Amendment: 12 Mar 2019: 84 FR 8807-8809: Extension of Import Restrictions Imposed on Archaeological and Ecclesiastical Ethnological Material From Honduras 

 

DOC EXPORT ADMINISTRATION REGULATIONS (EAR): 15 CFR Subtit. B, Ch. VII, Pts. 730-774. Implemented by Dep’t of Commerce, 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.]
 
* DOC FOREIGN TRADE REGULATIONS (FTR): 15 CFR Part 30.  Implemented by Dep’t of Commerce, 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 here.
  – The latest edition (1 Jan 2019) 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.   

 

DOD NATIONAL INDUSTRIAL SECURITY PROGRAM OPERATING MANUAL (NISPOM): 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 here.)
 
 
DOE ASSISTANCE TO FOREIGN ATOMIC ENERGY ACTIVITIES: 10 CFR Part 810; Implemented by Dep’t of Energy, National Nuclear Security Administration, under 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.
 
DOE EXPORT AND IMPORT OF NUCLEAR EQUIPMENT AND MATERIAL; 10 CFR Part 110; Implemented by Dep’t of Energy, U.S. Nuclear Regulatory Commission, under Atomic Energy Act of 1954.
  – Last Amendment: 20 Nov 2018, 10 CFR 110.6, Re-transfers.
 

* DOJ ATF ARMS IMPORT REGULATIONS: 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: 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.  

 

DOS INTERNATIONAL TRAFFIC IN ARMS REGULATIONS (ITAR): 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: 5 Mar 2019) 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.
 
* DOT FOREIGN ASSETS CONTROL REGULATIONS (OFAC FACR): 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
  
* USITC HARMONIZED TARIFF SCHEDULE OF THE UNITED STATES (HTS, HTSA or HTSUSA), 1 Jan 2019: 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: 7 Mar 2019: H
armonized System Update (HSU) 1903  
[contains 67 ABI records and 13 harmonized tariff records].

  – HTS codes for AES are available here.
  – HTS codes that are not valid for AES are available here.
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EN_a0316
Weekly Highlights of the Daily Bugle Top Stories

(Source: Editor) 

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

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EPEDITORIAL POLICY

* The Ex/Im Daily Update is a publication of FCC Advisory B.V., compiled by: Editor, James E. Bartlett III; Assistant Editors, Alexander P. Bosch and Vincent J.A. Goossen; and Events & Jobs Editor, Alex Witt. The Ex/Im Daily Update is emailed every business day to approximately 6,500 readers of changes to defense and high-tech trade laws and regulations. We check the following sources daily: Federal Register, Congressional Record, Commerce/AES, Commerce/BIS, DHS/CBP, DOE/NRC, DOJ/ATF, DoD/DSS, DoD/DTSA, FAR/DFARS, State/DDTC, Treasury/OFAC, White House, and similar websites of Australia, Canada, U.K., and other countries and international organizations.  Due to space limitations, we do not post Arms Sales notifications, Denied Party listings, or Customs AD/CVD items.

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

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


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