19-0314 Thursday “Daily Bugle'”

19-0314 Thursday “Daily Bugle”

Thursday, 14 March 2019

  1. Justice/ATF Ratifies Final Rule to Define Bump-Stock-Type Devices as Machineguns
  1. Items Scheduled for Publication in Future Federal Register Editions
  2. Commerce/BIS: (No new postings)
  3. DoD/DSS Publishes Revised Certificate Pertaining to Foreign Interests (SF 328)
  4. State/DDTC: (No new postings.)
  5. Treasury/OFAC Introduces the “CAPTA List”, Removes the “Part 561 List”
  6. Treasury/OFAC Extends Expiration Date of Venezuela-related General License 7A
  7. Japan METI Publishes Highlights of 26th Asian Export Control Seminar
  1. Bloomberg: “U.K. Unveils Tariffs for a No-Deal Brexit Ahead of Key Vote”
  2. Expeditors News: “CBP Publishes Informational Notice on CBP Form 5106”
  3. FAIR: “Bill Introduced in Senate to Modify Definition of Antique Firearm”
  4. Reuters: “Huawei Pleads Not Guilty to U.S. Charges in New York Court”
  5. Reuters: “U.S. Working on Steel, Aluminum Tariff Relief for Mexico, Canada: Trade Chief”
  6. ST&R Trade Report: “New Task Force to Combat Counterfeit Imports Includes CBP, BIS, Other Agencies”
  1. A.J. Brackett, E.P. Gordy & J.M. Hanna: “What the Venezuela Sanctions May Mean for Future Sanctions Programs”
  2. SIPRI: “Emerging Technologies Pose Challenges to the Control of Biological Weapons, New SIPRI Report”
  3. T. McCarthy, K. Wolf & B. Powell: “State and Commerce Open Public Comment Period on Rocket, Missile, Launch Vehicle, Spacecraft and Satellite Export Controls”
  1. ECS Presents “ITAR/EAR Bootcamp: Achieving Compliance” on 8-9 Jul in Seattle, WA
  2. ICPA Presents “2019 EU Conference”, 15-17 May in London
  3. ECTI Presents “CFIUS Update: New Requirements to Meet, New Industries Affected” Webinar on 16 Apr
  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 


Federal Register
, 14 Mar 2019.)
84 FR 9239-9240: Bump-Stock-Type Devices

* AGENCY: Bureau of Alcohol, Tobacco, Firearms, and Explosives; Department of Justice.
* ACTION: Final rule; ratification.
* SUMMARY: The Attorney General is ratifying a final rule, published in the Federal Register on December 26, 2018,
that amended the definition of ”machinegun” (or ”machine gun”) in Department of Justice regulations. The ratification is issued as a prudential matter in light of pending litigation.
* DATES: March 14, 2019.
* FOR FURTHER INFORMATION CONTACT: Vivian Chu, Office of Regulatory Affairs, Enforcement Programs and Services,
Bureau of Alcohol, Tobacco, Firearms, and Explosives, U.S. Department of Justice, 99 New York Ave. NE, Washington, DC 20226; telephone: (202) 648-7070.
* SUPPLEMENTARY INFORMATION: On December 26, 2018, the Department of Justice published a final rule in the
Federal Register that amended the definition of ”machinegun” (or ”machine gun”) contained in 27 CFR 447.11, 478.11, and 479.11. See 83 FR 66514.
That final rule, which was adopted after the publication of a notice of proposed rulemaking in the Federal Register and a period of public comment, was signed by Acting Attorney General Matthew G. Whitaker on December 18, 2018. That final rule has become the subject of litigation in which parties have argued that Mr. Whitaker was not validly serving as the Acting Attorney General, as either a statutory or constitutional matter.
On February 14, 2019, I was sworn in as Attorney General following confirmation by the Senate and appointment by the President. Although I believe that the challenges to Mr. Whitaker’s designation lack merit, I elected, out of an abundance of caution, to independently reevaluate the above-mentioned rule and the underlying rulemaking record. 
Having now familiarized myself with the rulemaking record that was before the Acting Attorney General and having reevaluated those materials without any deference to his earlier decision, I have personally come to the conclusion that it is appropriate to ratify and affirm the final rule as it was published at 83 FR 66514, and I hereby do so.
   Dated: March 11, 2019.

William P. Barr, Attorney General.

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OGS_a12. Items Scheduled for Publication in Future Federal Register Editions
(Source: Federal Register)


* Commerce/BIS; NOTICES; Meetings: Regulations and Procedures Technical Advisory Committee [Pub. Date: 15 Mar 2019.]
* State; NOTICES; Designation as a Specially Designated Global Terrorist: 
  – Akram ‘Abbas al-Kabi, aka Akram Abas al-Ka’bi, aka Sheik Akram al-Ka’abi, aka Shaykh Abu-Akram al-Ka’abi, aka Abu-Muhammad, aka Karumi, aka Abu Ali; and 
  – Harakat al-Nujaba, aka Harakat Hezbollah al-Nujaba, aka Movement of the Noble Ones Hezbollah, etc. [Pub. Dates: 15 Mar 2019.]
* Treasury/OFAC; RULES; List of Foreign Financial Institutions Subject to Correspondent Account or Payable-Through Account Sanctions [Pub. Date: 15 Mar 2019.]

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(Source: Commerce/BIS)

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4. DoD/DSS Publishes Revised Certificate Pertaining to Foreign Interests (SF 328)

, 14 Mar
The revision provides for additional uses by Department of Homeland Security and the Department of Defense. No additional substantive changes were made to the form and industry can begin use immediately. The form can be found on the GSA website, and the DoD issuance site. There is no requirement for industry to resubmit forms already provided to the government.

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(Source: Treasury/OFAC, 14 Mar 2019.)

The CAPTA List contains identifying information of foreign financial institutions for which the opening or maintaining of a correspondent account or a payable-through account in the United States is prohibited or is subject to one or more strict conditions. The specific strict conditions or prohibitions to which the foreign financial institutions are subject to include the Ukraine Freedom Support Act of 2014, as amended by the Countering America’s Adversaries Through Sanctions Act, the North Korea Sanctions Regulations, 31 C.F.R. part 510, the Iranian Financial Sanctions Regulations, 31 C.F.R. Part 561, which were identified on OFAC’s now defunct Part 561 List, and the Hizballah International Financing Prevention Act of 2015, which would be identified on the Hizballah Financial Sanctions Regulations List (the “HFSR List”).
The CAPTA List is not part of the Specially Designated Nationals (SDN) List. Information that appears on the CAPTA list will be included in the data formats associated with the 
Consolidated Sanctions List.
OFAC is also issuing an amendment to the
Iranian Financial Sanctions Regulations, 31 CFR Part 661, to replace references to the Part 561 List in those regulations with references to the CAPTA List. This regulatory amendment is currently available for public inspection with the Federal Register and will take effect upon publication in the Federal Register on March 14, 2019.
Additionally, OFAC is issuing an amendment to the
Hizballah Financial Sanctions Regulations, 31 CFR part 566, to replace references to the HFSR List in those regulations with references to the CAPTA List. This regulatory amendment is currently available for public inspection with the Federal Register and will take effect upon publication in the Federal Register on March 14, 2019.
Finally, to implement these changes the following listing has been moved from the Part 561 List to the new CAPTA List.  The only alteration to this record has been the removal of the [561List] program tag and the addition of the new [561-Related] program tag. 
BANK OF KUNLUN CO LTD (f.k.a. KARAMAY CITY COMMERCIAL BANK CO LTD.; f.k.a. KARAMAY URBAN CREDIT COOPERATIVES), 172 Xibin Rd, Ranghulu District, (Daqing, Heilongjiang Branch), Daqing 163453, China; 9 Dongzhimen North Street, Dongcheng District, (Head Office), Beijing 100007, China; No. 7 Century Ave, (Registered Office), Xinjiang, Karamay 834000, China; No. 68 Zhongya South Rd, Economic and Technological Development Zone, (Urumqi, Xinjiang Branch), Urumqi 830026, China; SWIFT/BIC CKLBCNBJ; United States financial institutions are prohibited from opening or maintaining a correspondent account or a payable-through account for the foreign financial institution listed here, pursuant to 31 C.F.R. section 561.201(c) [561-RELATED].

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(Source: Treasury/OFAC, 14 Mar 2019.)


The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) today extended the expiration date of a general license related to PDV Holding, Inc. (PDVH), and CITGO Holding, Inc. General License 7A provides an 18-month authorization that renews automatically on a monthly basis, which will enable CITGO to maintain operations in markets that are based on long-term planning and contractual commitments.
“This extension will further enable CITGO’s ongoing operations while prohibiting any benefit from flowing back to the illegitimate Maduro regime,” said a Treasury spokesperson.    
On January 28, 2019, OFAC designated Petroleos de Venezuela, S.A. (PdVSA) pursuant to Executive Order (E.O.) 13850 for operating in the oil sector of the Venezuelan economy. Concurrent with this action, OFAC issued a general license that authorized certain transactions and activities related to PdVSA and its subsidiaries within specified timeframes. Effective March 14, 2019, General License 7, dated January 28, 2019, is replaced and superseded in its entirety by General License 7A. As with any general license issued by OFAC, the license may be revoked or amended at any time.

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, 4 Mar 2019.) [Excerpts.]

For three days from February 26, 2019, an Asian Export Control Seminar, which was organized by the Center for Information on Security Trade Control (CISTEC), and co-organized by with the Ministry of Economy, Trade and Industry (METI) and the Ministry of Foreign Affairs (MOFA), was held in Tokyo. The seminar was the 26th seminar since its inauguration, bringing together approximately 200 participants from 32 countries and regions, international organizations and other organizations. …

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NWS_19. Bloomberg: “U.K. Unveils Tariffs for a No-Deal Brexit Ahead of Key Vote”
(Source: Bloomberg, 13 Mar 2019.) [Excepts.] 

The U.K. will avoid imposing tariffs on most imported goods in the event of a no-deal Brexit, though officials said prices of key European Union products including beef, cheese and cars will rise.
The government said Wednesday its “balanced approach” aims to offset a spike in prices that consumers would experience in a no-deal departure as a result of the falling pound and higher costs of imports. But a major U.K. business lobby described it as a “sledgehammer” for the economy.
The announcement comes after Parliament overwhelmingly rejected Prime Minister Theresa May’s Brexit deal for a second time Tuesday night, and lawmakers are expected to vote Wednesday to rule out leaving the EU without a deal – a scenario the premier herself accepted would cause “damage” to the U.K. Revealing the government’s no-deal planning so close to the vote will be seen by many MPs as a strategy to focus minds. ...

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NWS_210. Expeditors News: “CBP Publishes Informational Notice on CBP Form 5106” 

(Source: Expeditors News
, 13 Mar 2019.)

On March 11, 2019, U.S. Customs and Border Protection (CBP) published an informational notice with details on the revised CBP Form 5106, used to create or update an importer identity, which will be deployed in the Automated Commercial Environment (ACE).
The informational notice covers:
  (1) What will stay the same in ACE;
  (2) What will change in ACE;
  (3) What resources are available for submission to ACE;
  (4) Who to contact for issues with the use of the form 5106.
Per the notice, CBP Form 5106 is used for “establishing bond coverage, release and entry of merchandise, liquidation, issuance of bills, refunds and the processing of drawback, and Fines Penalties & Forfeitures actions.” CBP will deploy the revised form in ACE on March 16, 2019.

The CBP notice may be found here.

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NWS_311. FAIR: “Bill Introduced in Senate to Modify Definition of Antique Firearm” 

On February 12, 2019, Senator Bill Cassidy (R-LA) introduced S. 443 to change the definition of “antique firearm” in the Gun Control Act of 1968 (GCA) and in the National Firearms Act (NFA) by replacing “1898” with “the calendar year that is 100 years before the calendar year in which the determination as to whether the firearm meets the requirement of this subparagraph is being made.” If enacted, firearms manufactured 100 years ago or more generally would not be subject to GCA or NFA controls. This would be a rolling determination as opposed to a static year of manufacture. So to illustrate, if the bill were to pass both the Senate and the House, and President Trump were to sign into law this year, firearms made before 1919 would be classified as antiques. The full text of the bill is available here.
Modernizing the federal firearms laws in this way would be a welcome change for collectors and enthusiasts. However, this is not the first time Sen. Cassidy has attempted to revise the definition of “antique firearm” and advance the cut-off date. Unfortunately, none of the bills made it out of committee. …

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NWS_412. Reuters: “Huawei Pleads Not Guilty to U.S. Charges in New York Court”

(Source: Reuters, 14 Mar 2019.) [Excerpts.]

China’s Huawei Technologies Co Ltd on Thursday pleaded not guilty to a 13-count indictment filed in a New York federal court against the company, as tensions have ratcheted up between the U.S. and Beijing.
Huawei, the world’s largest telecommunications equipment maker, was charged with bank and wire fraud, violating sanctions against Iran and obstructing justice.
The company’s chief financial officer, Meng Wanzhou, was arrested in December in Canada on charges in the indictment, which was not unsealed until January. She has said she is innocent of the charges and is fighting extradition. …
U.S. authorities claim Huawei used Skycom to obtain embargoed U.S. goods, technology and services in Iran, and to move money via the international banking system. …

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NWS_513. Reuters: “U.S. Working on Steel, Aluminum Tariff Relief for Mexico, Canada: Trade Chief”

(Source: Reuters, 12 Mar 2019.) [Excerpts.] 

The United States is working on a plan to lift tariffs from Mexican and Canadian steel and aluminum but preserve the gains that domestic producers have received from the duties so far, U.S. Trade Representative Robert Lighthizer said on Tuesday. …
The United States imposed the “Section 232” tariffs on steel and aluminum nearly a year ago to protect domestic producers on national security grounds. A plan to lift tariffs on the metals from Canada and Mexico was once linked to the renegotiation of the North American Free Trade Agreement but ultimately was excluded from that deal.
Since then, a number of U.S. lawmakers have said they did not believe the new U.S.-Mexico-Canada Agreement (USMCA) could win approval in Congress if the metals tariffs – along with and retaliatory duties on U.S. farm and other products – were left in place. …

[Representative Ron] Kind cautioned that the Trump administration would need to submit the USMCA enabling legislation soon to Congress so it could be considered before the August recess. After that, it could become caught up in another border wall funding fight in the fall and later the 2020 presidential election campaign, which would diminish its approval chances. … 

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NWS_614. ST&R Trade Report: “New Task Force to Combat Counterfeit Imports Includes CBP, BIS, Other Agencies” 

A new multi-agency task force designed to protect national security and combat counterfeit goods was launched recently in Detroit and could serve as a national model for related investigations.
According to a press release from the Department of Homeland Security, the Global Trade Task Force is led by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and combines the investigative, interdiction, regulatory, and licensing capabilities of a variety of agencies, including HSI, U.S. Customs and Border Protection, the Drug Enforcement Administration, the Bureau of Industry and Security, and the Food and Drug Administration’s Office of Criminal Investigations.
The GTTF’s primary mission is to counter the following types of illicit commercial activities.
   (1) trafficking of counterfeit, substandard, or tainted goods, with an emphasis on those that pose a threat to public health or safety including pharmaceuticals and cosmeceuticals; automotive, aerospace, rail, and heavy industry products; and environmental crimes
   (2) financially-motivated fraud schemes that deprive the U.S. government of revenue, harm businesses or rights holders, or undermine financial institutions
   (3) illegal export of U.S. military products, sensitive dual-use technology, weapons of mass destruction, or chemical, biological, radiological, and nuclear materials

The press release states that the task force will use “robust import and export controls and investigative authorities” to combat these activities. Its first enforcement operation targeted goods and shipments entering and exiting the U.S. at express delivery, rail, and centralized examination station facilities in the Detroit area. During this weeklong effort HSI and CBP seized more than $1 million worth of counterfeit goods and prescription drugs, including transceiver network modules, e-cigarettes, watches, and smartphones.

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(Source: McGuire Woods LLP, 11 Mar 2019.)

* Authors: Alex J. Brackett, Esq.,
abrackett@mcguirewoods.com; Emily P. Gordy, Esq.,
egordy@mcguirewoods.com; and Jeffrey M. Hanna, Esq.,
jhanna@mcguirewoods.com. All of McGuire Woods LLP.
When the Trump Administration designated Venezuelan state-owned oil producer Petreoleos de Venezuela (“PdVSA”) on January 28, 2019, pursuant to preexisting sanctions relating to the political situation created by the Maduro regime, it sent a significant but not unanticipated ripple through the global petroleum markets. The impact of the sanctions for commodities traders and petroleum refiners-particularly in the U.S. Gulf Coast, where PdVSA’s steady supply of heavy crude has long been a sizable staple feedstock-was fairly immediate, and appears to have had the intended effect of isolating PdVSA, impairing its production capabilities and reducing its cash revenues. According to industry reports, many of the larger commodity traders around the world have largely if not entirely backed away from trading in PdVSA crude, and PdVSA has been cut off from its primary sources of naphtha and other diluents it needs to move its heavy crude through pipelines. Whether the sanctions will have the intended political effect of forcing regime change in Venezuela remains to be seen.
Although at a high level the PdVSA sanctions are not functionally different from other OFAC sanctions designations, their political contours, the immediacy of the underlying humanitarian crisis in Venezuela, and the proximity and entanglement of PdVSA in U.S. markets-including the fact that one of PdVSA’s most valuable assets is the U.S.-based Citgo-makes them appear like a different creature. So, what can the Venezuela sanctions, as imposed against PdVSA, tell us about the future of U.S. sanctions?
Possibly, Nothing
All sanctions regimes, export controls, import controls and other forms of trade restriction are reflections of foreign policy. In the case of sanctions, their form and function tends to be highly particularized to the political situation at issue. The Venezuela sanctions appear unique in part because of the specific circumstances in which they are imposed: Maduro’s government is in crisis, Venezuela is a significant crude producer and exporter for the international oil market, and PdVSA is a critical element of the Venezuelan economy and of great symbolic importance to the Venezuelan people. Combine that with Venezuela’s physical proximity to the United States and the fact that the imposition of sanctions against PdVSA is cutting that company off from its biggest export market and cutting U.S. refiners off from one of their largest sources of feedstock, and you have a uniquely impactful sanctions action that is unlikely to be repeated.
It’s Complicated
Sanctions can be a blunt instrument, but they can also be a precise tool, as they appear to be here. The Venezuela sanctions continue a trend of applying incremental pressure to targeted sectors of an economy or particular operators in that sector, without going so far as to impose a comprehensive embargo against an entire country. Unlike the Russia/Ukraine sectoral sanctions, the Venezuela sanctions, through the PdVSA designation, went from incremental to exponential in the pressure being applied. But like the sectoral sanctions, the Venezuela sanctions are more complex in design and application. It is reasonable to expect that future sanctions programs will probably look more like the Venezuela sanctions and Russia/Ukraine sectoral sanctions than the Cuba embargo.
Sanctions to the Front
As of this writing, the Maduro regime remains in place and it is unclear whether the regime change being sought by the Trump Administration will occur-at least in a reasonably orderly fashion. Regardless of that outcome, the PdVSA designation has certainly impacted the political conversation, and moved Venezuela’s political and humanitarian crisis more to the forefront in terms of U.S. and international awareness and attention. As a result, it is possible that the current and future administrations will feel emboldened to consider the use of sanctions more liberally, particularly if Maduro does step aside without internal armed conflict or outside military intervention. On that point, we can’t ignore that the Trump administration has not shied away from applying sanctions and appears ready and willing to do so to further its foreign policy agenda.

For now, we remain relatively early in the life cycle of the PdVSA designation, with the first wind-down deadlines set to pass and the global commodities markets remaining in a wait-and-see posture. More time needs to pass before we will have a clear understanding of the likely political and economic trajectory of the situation in Venezuela, and that clarity may remain elusive. For now, we have to view the posture of the Venezuela sanctions as dynamic and subject to significant change with limited notice.

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. SIPRI: “Emerging Technologies Pose Challenges to the Control of Biological Weapons, New SIPRI Report”

(Source: SIPRI ,14 Mar 2019.)

* Authors: Kolja Brockmann, Researcher; Sibylle Bauer, Director of Studies; and Dr. Vincent Boulanin, Senior Researcher. All of Stockholm International Peace Research (SIPRI).
Advances in additive manufacturing, artificial intelligence and robotics could increase the possibilities for the development, production and use of biological weapons. The existing biological arms control and non-proliferation governance framework needs to be adapted to address these security risks, according to a new report from the Stockholm International Peace Research Institute (SIPRI).
The SIPRI report, ‘Bio Plus X: Arms Control and the Convergence of Biology and Emerging Technologies’, will be presented at the international conference ‘2019. Capturing technology. Rethinking arms control’ at the German Federal Foreign Office in Berlin on 15 March 2019.
Emerging technologies could facilitate the production and use of biological weapons
The report explores the risks and challenges posed by the interaction of developments in biotechnology and advances in three emerging technologies: additive manufacturing (so-called 3D printing), artificial intelligence and robotics. ‘Each of these technologies could, in its own way, facilitate the development, production and use of biological weapons, and make them more dangerous,’ says Kolja Brockmann, Researcher at SIPRI and lead author of the report. ‘The increased use of robots in laboratories could lead to significant gains in productivity during the design-build-test cycle of biological weapons, while artificial intelligence could be used to find new ways to optimize the transmissibility or virulence of a biological agent,’ says Dr Vincent Boulanin, Senior Researcher at SIPRI on emerging technologies.
Governance frameworks must be strengthened and re-envisioned
All three technologies are difficult to control, particularly due to their digitization and their dual-use nature. ‘A key challenge for effective biological arms control is that treaty structures and the institutional arrangements in ministries and government agencies do not correspond to today’s technical realities,’ says Dr Sibylle Bauer, Director of the SIPRI Armament and Disarmament programme.
New policy options could address governance issues
The report recommends that, in order to tackle the governance issues presented by emerging technologies, national governments need to monitor and assess developments in science and technology on a more systematic basis. They should also strengthen international efforts to foster responsible science and biosecurity awareness. In addition, the report suggests that the private sector should reinforce self-regulation and compliance standards.

Read the report here.

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. T. McCarthy, K. Wolf & B. Powell: “State and Commerce Open Public Comment Period on Rocket, Missile, Launch Vehicle, Spacecraft, and Satellite Export Controls”

(Source: Akin Gump Strauss Hauer & Feld LLP, 12 Mar 2019.)

* Authors: Tom McCarthy, Esq., tmccarthy@akingump.com, +1 202-887-4047; Kevin Wolf, Esq., kwolf@akingump.com, +1 202-887-4051; and Brad Powell, Esq., powellb@akingump.com, +1 202-887-4312. All of Akin Gump Strauss Hauer & Feld LLP.
Key Points
   – The Departments of State and Commerce are soliciting comments on USML Categories IV and XV and related entries on the CCL (e.g., 9×004, 9×515, 9×604).
   – This comment period is the first opportunity for industry to provide input on the full scope of USML Categories IV and XV and their related CCL entries since Export Control Reform efforts in 2014.
   – Comments are due by April 22, 2019.
In 2014, Categories IV (launch vehicles and missiles) and XV (spacecraft) of the U.S. Munitions List (USML) were substantially revised to move commercial items and less-sensitive military items to new or amended controls on the Commerce Control List (CCL). These changes were part of the Export Control Reform (ECR) effort to implement U.S. national security and foreign policy objectives by revising the USML to only control articles providing a critical military or intelligence advantage and not inadvertently control items in normal commercial use. As described by the Department of State (“State”), “this approach, however, requires that the list be regularly revised and updated to account for technological developments, practical application issues identified by exporters and reexporters, and changes in the military and commercial applications of items affected by the list.” Although there have been several minor revisions, updates and corrections to these USML Categories since 2014, this notice is the Trump administration’s first request for comments on how these space-related USML Categories can be improved.
The requests for comments are part of the effort by the National Space Council to develop and implement recommendations to streamline the regulatory environment for commercial space companies. [FN/1] On May 24, 2018, President Trump issued Space Policy Directive 2 (SPD-2), “Streamlining Regulations on Commercial Use of Space,” which directed various U.S. agencies to review and revise regulations applicable to the commercial space sector in order to promote growth, minimize uncertainty, protect national security and “encourage American leadership in space commerce.” [FN/2] SPD-2 also formalized the National Space Council’s recommendation regarding export controls by directing the National Space Council to review export licensing regulations affecting commercial space flight activity and recommend revisions consistent with the goals of SPD-2. Although any such recommendations have yet to be released publicly, the National Space Council appears to be already working with State and the Department of Commerce (“Commerce”), both of which issued Advanced Notices of Proposed Rulemaking (ANPRMs) on March 8, 2019 as “part of their work” with the National Space Council. [FN/3]
ANPRMs and Comment Period
On March 8, 2019, State and Commerce issued ANPRMs requesting public comments on Categories IV and XV of the USML and related entries on the CCL, including 9×004, 9×515 and 9×604.[FN/4] Among other things, these categories control rockets, missiles, launch vehicles, spacecraft, satellites and many of their related subsystems, parts, components, accessories and attachments.
While these ANPRMs relate specifically to the President’s policy objectives on the commercial use of outer space and the work of the National Space Council, the ANPRMs broadly ask how to improve and update the current versions of Categories IV and XV and their related CCL entries. Like other ECR-related ANPRMs in the past, State and Commerce seek input on the following general questions:
   – Are there any emerging or new technologies that warrant control in USML Categories IV or XV, that are not currently described or not described with sufficient clarity?
   – Are there specific defense articles described in USML Categories IV and XV that have entered into normal commercial use since the most recent revisions of those categories?
   – Are there any defense articles described in USML Categories IV and XV for which commercial use is proposed, intended or anticipated in the next five years?
   – Are there any other technical issues that should be addressed for items in USML Categories IV and XV or corresponding entries of the CCL (e.g., the addition of technical notes or defined terms)?
   – Are there any other technologies controlled in USML Categories IV or XV, which are not currently described, or are not described with sufficient clarity, that should move to the CCL?
   – What are the potential cost savings to private entities from shifting control over commercial items from the USML to the CCL?
Additionally, the ANPRMs identify a number of particular topics relevant to specific U.S. space program activities and the commercial space industry:
   – What are the appropriate controls for items associated with the NASA Lunar Gateway project? [FN/5]
   – In consideration of existing control parameters on the size of space-based optical telescopes, how might future control parameters differentiate technically between space-based optical telescopes for astrophysics missions and those used for Earth observation?
   – Are there any suggested revisions, such as a definition of “clear aperture,” that would clarify the scope of Categories XV(a)(7) and XV(e)(2)?
   – Are there any suggested revisions, such as a definition of “servicing,” that would clarify the scope of Category XV(a)(12)?
   – Should any other specific space-related technologies be added to the following list for review: satellite thrusters, gyroscopes, inertial navigation systems, large aperture earth observation cameras, spacecraft antenna systems and adaptive Global Navigation Satellite System (GNSS) antennas, suborbital systems with propulsion systems currently controlled under USML, kapton tape, star trackers and astrocompasses?
   – For technologies controlled under 9A515 (including habitats, planetary rovers and planetary systems), what factors or specific technologies should be considered for movement to a different Export Control Classification Number (ECCN) or a paragraph under 9A515 with less stringent licensing requirements?
Comments are due to State and Commerce by April 22, 2019.
State and Commerce export control personnel read all public comments and take them into account when preparing proposed rules to revise the categories – if you have suggestions for how to improve the categories, now is the best time to make them. The higher the quality of the comments and supporting documentation, the more likely your suggestions are to be taken seriously as part of future revision efforts.

  [FN/1] See

  [FN/2] See here.
  [FN/3] State ANPRM is available here; Commerce ANPRM is available here.
  [FN/4] Id.
  [FN/5] NASA’s Lunar Orbital Platform Gateway (formerly known as “Deep Space Gateway” and colloquially referred to as “Lunar Gateway” or “Gateway”) is a developing, U.S.-led project to establish a habitable outpost in lunar orbit that will serve as a strategic waystation between Earth and the Moon’s surface (and ultimately, Mars). At the time of this writing, NASA plans to develop many of the various modules by competitive award to U.S. industry, and Gateway payloads (other than crew) are expected to launch on commercial rockets. Further details are available here and here.

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TE_a118. ECS Presents “ITAR/EAR Bootcamp: Achieving Compliance” on 8-9 Jul in Seattle, WA

* What: ITAR/EAR Bootcamp: Achieving Compliance; Seattle, WA
* When: July 8-9, 2019
* Where:
Sheraton Grande
* Sponsor: Export Compliance Solutions & Consulting (ECS)
* ECS Speaker Panel:  Suzanne Palmer, Mal Zerden
* Register here or by calling 866-238-4018 or e-mail

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TE_a219. ICPA Presents “2019 EU Conference”, 15-17 May in London 

(Source: ICPA)
* What: 2019 EU Conference
  – Import and Export Track (click here for the agenda)
Professional Speakers
  – Hot Industry Topics
* When: 15-17 May 2019
* Where: The Tower Hotel, London, United Kingdom
* Sponsor: International Compliance Professionals Association (ICPA)
* Information & Registration: Click here.

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TE_a320. ECTI Presents “CFIUS Update: New Requirements to Meet, New Industries Affected” Webinar on 16 Apr

(Source: D. Hatch, 
* What: CFIUS Update: New Requirements to Meet, New Industries Affected
* When: April 16, 2019 12:00 p.m. (EDT)
* Where: Webinar
* Sponsor: Export Compliance Training Institute (ECTI)
* ECTI Speaker: Thaddeus McBride
* Register: 
here or contact Danielle Hatch, 540-433-3977, 

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* Albert Einstein (14 Mar 1879 – 18 Apr 1955; was a German-born theoretical physicist who developed the theory of relativity, one of the two pillars of modern physics (with quantum mechanics). He is best known to the general public for his mass-energy equivalence formula, E = mc2, which has been dubbed “the world’s most famous equation”. He received the 1921 Nobel Prize in Physics for ‘”his services to theoretical physics, and especially for his discovery of the law of the photoelectric effect”, a pivotal step in the development of quantum theory.)
 – “The true sign of intelligence is not knowledge but imagination.”
  – “Whoever is careless with the truth in small matters cannot be trusted with important matters.”
* Hannah Cowley (14 Mar 1743 – 11 Mar 1809; was an English dramatist and poet.  The major themes of her plays – including her first, The Runaway(1776), and her major hit which is being revived, The Belle’s Stratagem (1780) – revolve around marriage, and how women strive to overcome the injustices imposed by family life and social custom.)
  – “The charms of women were never more powerful, and never inspired such achievements, as in those immortal periods when they could neither read nor write.”
  – “It requires genius to make a good pun – some men of bright parts can’t reach it.”
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. 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.   


  – 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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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 

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* 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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