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19-0329 Friday “Daily Bugle”

19-0329 Friday “Daily Bugle”

Friday, 29 March 2019

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.

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  1. Treasury/OFAC Seeks Comments Concerning Application for the Release of Blocked Funds
  1. Items Scheduled for Publication in Future Federal Register Editions 
  2. Commerce/BIS: (No new postings.) 
  3. OMB/OIRA Reviews of Proposed Ex/Im Regulations: Implementation of WA Controls
  4. State/DDTC: (No new postings.) 
  5. EU Amends List of Defense-Related Products
  6. French DGE Publishes Summary of Forum for Exporters of Dual-Use Goods
  1. Deutsche Welle: “Germany Extends Ban on Arms Sales to Saudi Arabia”
  2. Harvard Business Review: “Corporate Boards Are Pessimistic About Trade Between the U.S. and China”
  3. La Tribune: “Exports: How MBDA Loosens U.S. Dependency (ITAR)”
  1. F. Kendall: “Ellen Lord Is Right On 5G; It Is Time for the U.S. Government to Act – Here’s How”
  2. M. Volkov: “Stanley Black and Decker Settles OFAC Enforcement Action for $1.9 Million”
  3. N.C. Ifudu Nweke, M.J. Schwartz & C.C. Davis: “Recent U.S. Sanctions Designations Create Additional Risks for Companies Doing Business with Venezuela”
  4. T. Murphy: “Section 301 Update”
  5. The FAQ of the Day: Unknown Procurement Method of a Defense Article
  1. ECS Presents “ITAR/EAR Bootcamp: Achieving Compliance” on 8-9 Jul in Seattle, WA
  2. FCC Presents “An Introduction to EU / Dutch Dual-Use and Military Export Controls”, 7 May in Bruchem, the Netherlands
  3. List of Approaching Events: 145 Events Posted This Week, Including 14 New Events 
  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 (14 Mar 2019), DOS/ITAR (19 Mar 2018), DOT/FACR/OFAC (15 Mar 2019), HTSUS (7 Mar 2019) 
  3. Weekly Highlights of the Daily Bugle Top Stories 

EXIMITEMS FROM TODAY’S FEDERAL REGISTER

EXIM_a1

1. Treasury/OFAC Seeks Comments Concerning Application for the Release of Blocked Funds  
(Source: Federal Register, 29 Mar 2019.) [Excerpts.]
 

84 FR 12036: Agency Information Collection Activities; Proposed Collection; Comment Request; Electronic License Application Form
 
* AGENCY: Office of Foreign Assets Control, Treasury.
* ACTION: Notice and request for comments.
* SUMMARY: The Department of the Treasury, as part of its continuing effort to reduce paperwork and respondent burden, invites the general public and other federal agencies to comment on proposed or continuing information collections, as required by the Paperwork Reduction Act of 1995. Currently, the Office of Foreign Assets Control (OFAC) within the Department of the Treasury is soliciting comments concerning OFAC’s Electronic License Application Form TD-F 90-22.54, which is referred to throughout this Notice as the “OFAC Application for the Release of Blocked Funds.”
* DATES: Written comments must be submitted on or before May 28, 2019 to be assured of consideration.
* ADDRESSES: You may submit comments by any of the following methods:
– Federal eRulemaking Portal:
www.regulations.gov. Follow the instructions on the website for submitting comments. Refer to Docket Number OFAC-2019-0001 and the Office of Management and Budget (OMB) control number 1505-0170.
– Fax: Attn: Request for Comments (OFAC Application for the Release of Blocked Funds) 202-622-1759. Refer to Docket Number OFAC-2019-0001 and the OMB control number 1505-0170.
– Mail: Attn: Request for Comments (OFAC Application for the Release of Blocked Funds), Office of Foreign Assets Control, Department of the Treasury, 1500 Pennsylvania Avenue NW, Washington, DC 20220. Refer to Docket Number OFAC-2019-0001 and the OMB control number 1505-0170.
– Instructions: All submissions received must include the agency name and the Federal Register Doc. number that appears at the end of this document. Comments received will be made available to the public via
regulations.gov or upon request, without change and including any personal information provided.
* FOR FURTHER INFORMATION CONTACT: OFAC: Assistant Director for Licensing, tel.: 202-622-2480; Assistant Director for Regulatory Affairs, tel.: 202-622-4855; Assistant Director for Sanctions Compliance & Evaluation, tel.: 202-622-2490; or the Department of the Treasury’s Office of the Chief Counsel (Foreign Assets Control), Office of the General Counsel, tel.: 202-622-2410.
* SUPPLEMENTARY INFORMATION:
– Title: OFAC Application for the Release of Blocked Funds.
– OMB Number: 1505-0170.
– Abstract: Transactions prohibited pursuant to the Trading With the Enemy Act, 50 U.S.C. 4301 et seq., the International Emergency Economic Powers Act, 50 U.S.C. 1701 et seq., and other authorities may be authorized by means of specific licenses issued by OFAC. Such licenses are issued in response to applications submitted by persons whose property and interests in property have been blocked or who wish to engage in transactions that would otherwise be prohibited. The OFAC Application for the Release of Blocked Funds, which provides a standardized method of application for all applicants seeking the unblocking of funds, is available in electronic format on OFAC’s website. By obviating the need for applicants to write lengthy letters to OFAC, this form reduces the overall burden of the application process. Since February 2000, use of the OFAC Application for the Release of Blocked Funds to apply for the unblocking of funds has been mandatory pursuant to a revision in OFAC’s regulations at 31 CFR 501.801. See 65 FR 10707 (February 29, 2000). Applications to OFAC for the release of blocked funds can also be made via the electronic licensing portal here:
https://www.treasury.gov/resource-center/sanctions/Pages/licensing.aspx
– Type of Review: Extension of a currently approved collection. …
 
Approved: March 25, 2019.
Andrea Gacki, Director, Office of Foreign Assets Control.

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

OGSOTHER GOVERNMENT SOURCES

OGS_a12
. Items Scheduled for Publication in Future Federal Register Editions
 

(Source:
Federal Register)
 

* Commerce/BIS; NOTICES;
– Meetings: Sensors and Instrumentation Technical Advisory Committee [Publication Date: 1 Apr 2019.]
 
* Commerce/BIS; NOTICES; Order Denying Export Privileges:
– Arnoldo Antonio Arredondo; and
– Mohan L. Nirala [Included in the Daily Bugle of 26 Mar 2019. Publication Dates: 1 Apr 2019.]
 
* Commerce/BIS; NOTICES; Recruitment of Members:
Technical Advisory Committees [Publication Date: 1 Apr 2019.]
 
* Justice/AFT; RULES; Removal of Expired Regulations Concerning Commerce in Firearms and Ammunition and Machine Guns, Destructive Devices, and Certain Other Firearms [Publication Date: 1 Apr 2019.]

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

OGS_a03
3. Commerce/BIS: (No new postings.)

(Source: Commerce/BIS)

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

OGS_a44. OMB/OIRA Reviews of Proposed Ex/Im Regulations:  Implementation of WA Controls

(Source: OMB/OIRA, 28 Mar 2019.)  
 
* Implementation of New Controls Agreed at Wassenaar Arrangement (WA) 2018 Plenary
– AGENCY: DOC-BIS
– STAGE: Final Rule
– RECEIVED DATE:28 Mar 2019
– RIN: 0694-AH69

– STATUS: Pending Review

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

OGS_a6
5. State/DDTC: (No new postings.)
(Source: State/DDTC)
* * * * * * * * * * * * * * * * * * * *

OGS_a7
6. EU Amends List of Defense-Related Products

(Source: Official Journal of the European Union, 29 Mar 2019.)
 
The European Commission has amended the list of Defense-Related Products. Consequently, the Annex to Directive 2009/43/EC is replaced by the text set out in the Annex to Directive (EU) 2019/514.
 
Directives
* Commission Directive (EU) 2019/514 of 14 March 2019 amending Directive 2009/43/EC of the European Parliament and of the Council as regards the list of defense-related products.

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

OGS_a9
7. French DGE Publishes Summary of Forum for Exporters of Dual-Use Goods

 
The 7th Exporters’ Forum was held on Monday, 18 March 2019 at the Pierre Mendès-France Center of the Ministry of the Economy and Finance.  The press release (in French) can be read here.

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

NWSNEWS

NWS_a018. Deutsche Welle: “Germany Extends Ban on Arms Sales to Saudi Arabia”

(Source:
Deutsche Welle, 29 Mar 2019.) [Excerpts.]
 
German arms exports to Riyadh have been halted since October 2018, after the killing of journalist Jamal Khashoggi.
 
The weapons freeze has been criticized by France and the UK. Germany has extended its current ban on arms exports to Saudi Arabia for six more months, ending on September 30, Chancellor Angela Merkel’s spokesman Steffen Seibert said on Thursday. During that period, no new contracts will be approved, Seibert said. The decision came after Merkel met with members of her cabinet to review the policy.
 
The German government had placed a temporary ban on weapons sales to Saudi Arabia in October 2018, following the controversial killing of journalist Jamal Khashoggi at a Saudi consulate in Istanbul. At the time, Merkel said that no new exports to the country would be allowed until the circumstances of Khashoggi’s death had been established. But more recently, the chancellor indicated that Germany needed to be more flexible. …

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

NWS_a29. Harvard Business Review: “Corporate Boards Are Pessimistic About Trade Between the U.S. and China”
 
 
 

(Source:
Harvard Business Review, 29 Mar 2019.) [Excerpts.]
 
The U.S. trade fights and UK’s Brexit are the most salient and recent symptoms of a decade of retreat from globalization that has international business apprehensive about the future. One of the most worrying developments today is the rising tension between the U.S. and China on everything from trade to military posturing. …
 
In this scenario, trade and investments between the opposing spheres would likely be highly limited, and strategic goods such as high technology components and products would be subject to stringent export controls. (Huawei’s growing isolation is a recent case in point.) This scenario would leave multinational firms with unpleasant options for how to handle any assets or operations that fall into the opposing sphere’s territories. …

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

NWS_a310La Tribune: “Exports: How MBDA Loosens U.S. Dependency (ITAR)”

(Source:
La Tribune, 27 Mar 2019.) [Excerpts. Unofficial translation by Alex Witt.]
 
Investments into research, buyout of SMEs, or participation in critical start-ups, and participation in European Union defense programs to safeguard the sovereignty of European industry. The three strategies pursued by [European arms manufacturer] MBDA to loosen the constraint of U.S. ITAR regulations, are the absolute weapon to paralyze competition.
 
The blow was violent for MBDA and, more generally, for France and its defense industry. All the more violent as this blow was struck by an ally, the United States, which block for more than a year the export of a component of the SCALP missiles to Egypt, the Egyptian air force wishing to equip its fighter planes with this cruise missile. A decision that resulted in the blocking of a new order of the Rafale in Egypt. …  

 
back to top
 

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

COMCOMMENTARY

COM_a111
. F. Kendall: “Ellen Lord Is Right On 5G; It Is Time for the U.S. Government to Act — Here’s How”

(Source: Forbes, 27 Mar 2019.) [Excerpts.]
 
* Author: Frank Kendall, independent consultant, and contributor to Forbes.
 
In a recent address at the Atlantic Council, Under Secretary of Defense for Acquisition and Sustainment Ellen Lord called for “whole of government” action in response to international 5G development. She was absolutely correct to do so. China is aggressively challenging the U.S. position in the microelectronics and 5G markets and it is past time to respond. Despite a great deal of handwringing, there has been no successful effort to address the problems associated with the future of the U.S. industry that designs and manufactures microelectronic components. …
 

The U.S. needs a framework for addressing the combined range of national security concerns associated with (1) the specialized microelectronic devices used in military systems, (2) the use of commercial microelectronic devices in military and other sensitive national security systems, and (3) the concerns associated with widespread use of commercial microelectronics devices throughout the U.S. economy. …

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

(Source: Volkov Law Group Blog, 28 Mar 2019. Reprinted by permission.)
 
* Author: Michael Volkov, Esq., Volkov Law Group, mvolkov@volkovlaw.com, 240-505-1992.
 
Stanley Black and Decker (“Stanley”) and its Chinese subsidiary Jiangsu Guoqiang Tools Co. (“GQ”) agreed to pay approximately $1.9 million to settle OFAC charges that it violated the Iran Sanctions Program.  The OFAC enforcement action was the fifth in 2019.  Stanley voluntarily disclosed the apparent violations to OFAC. See Here for a copy of OFAC Enforcement Action.
 
Between June 2013 and December 2014, GQ exported or attempted to export 23 shipments of power tools and spare parts to Iran with a total value of more than $3.2 million. 
Stanley initiated acquisition negotiations with GQ in 2011.  During the pre-acquisition due diligence process, Stanley discovered GQ’s exports to Iran.  Stanley conditioned its acquisition of GQ on termination of Iran transactions.
 
In May 2013, Stanley acquired a 60 percent interest in GQ and created a joint venture with GQ.  After the acquisition, Stanley conducted sanctions and export compliance training.  In early August 2013, a Stanley China employee reviewed the company’s trade compliance policies and procedures with GQ’s Manager for Export Sales by telephone. After this one training session, the individual who conducted the training asked the GQ Manager for Export Sales to provide the same training to her team within GQ, and to designate two members of her team to attend additional training on a customer screening tool.
 
In a familiar scenario this year in OFAC enforcement actions, GQ continued to engage in transactions with Iran customers.  Furthermore, Stanley did not implement procedures to monitor or audit GQ’s operations to ensure that its Iran-related sales did not recur post-acquisition. Despite written certifications and assurances, and notwithstanding the training sessions conducted by Stanley, GQ continued to export goods to Iran throughout 2013 and 2014
 
After learning about the continuing violations, Stanley eventually conducted an internal investigation and discovered that GQ employees sought to hide exports to Iran by using six trading companies (4 United Arab Emirates companies and 2 Chinese companies) and fake bills of lading with incorrect ports of discharge and places of delivery.  Stanley reported the matter to OFAC. 
 
Stanley’s internal investigation confirmed that GQ board members and senior management participated in these activities while knowing that its conduct violated Stanley’s policies and US economic sanctions. 
 
Stanley implemented enhanced compliance controls to ensure that it adhered to a culture of compliance, conducted regular risk assessments to ensure that its internal controls appropriately mitigated sanctions risks, conducted regular audits, and provided ongoing sanctions compliance training.
 
The Stanley enforcement action underscores the importance of pre-acquisition due diligence and post-acquisition confirmation of compliance with economic sanctions.  Companies have to take appropriate steps to audit, monitor and verify newly-acquired subsidiaries and affiliates for OFAC compliance.
 
OFAC explained:
 

U.S.-owned or -controlled foreign subsidiaries are subject to the ITSR and U.S. person parent companies may face potential exposure to civil monetary penalties vis-à-vis the actions of their foreign subsidiaries. Foreign acquisitions can pose unique risks that U.S. person parent companies need to address fully at all stages of its relationship with the subsidiary. U.S. parent companies are encouraged to take steps to mitigate risk to sanctions exposure, including by addressing known deficiencies like unconventional record-keeping practices, and any hindrances to monitoring, auditing, or investigating the foreign subsidiary’s operations. Testing of compliance procedures and timely auditing of subsidiaries can mitigate the risk of exposure to U.S. economic sanctions violations. 

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

(Source: 
Akin Gump Strauss Hauer & Feld LLP
, 28 Mar 2019.) [Excerpts.]
 

* Authors: Nnedinma C. Ifudu Nweke, Esq.,
nifudu@akingump.com
, +1 202-887-4013; Melissa J. Schwartz, Esq.,
mjschwartz@akingump.com
, +1 202-887-4539; and Christian C. Davis, Esq.,
chdavis@akingump.com
, +1 202-887-4529. All of Akin Gump Strauss Hauer & Feld LLP.

 

Key Points
  – OFAC recently added a Moscow-based Russian-Venezuelan joint venture bank, Evrofinance Mosnarbank (“Evrofinance”), to the List of Specially Designated Nationals and Blocked Persons (the “SDN List”) for engaging in sanctions circumvention activities and providing support to the Venezuelan state-owned oil company, Petróleos de Venezuela S.A. (“PdVSA”), which was designated as an SDN on January 28, 2019.
  – Additionally, OFAC recently added CVG Compania General de Mineria de Venezuela CA (“Minerven”), the Venezuelan state-run metals mining company; Banco de Desarrollo Económico y Social de Venezuela (“BANDES”), Venezuela’s national development bank; and certain other financial institutions owned or controlled by BANDES to the SDN List.
  – Further, on March 25, 2019, with strong bipartisan support, the U.S. House of Representatives passed two Venezuela-related bills that would impose additional export control restrictions on transfers of arms and certain dual-use items to Venezuela and require the President to assess the national security risks posed by potential Russian acquisition of the U.S. energy infrastructure holdings of CITGO, among other provisions.
 
In recent days, the United States government ratcheted up sanctions against Venezuela in an effort to apply increasing pressure on the Maduro regime, resulting in additional risk for both U.S. and non-U.S. companies with ongoing or potential business in or with the country. These actions follow the designation of Venezuelan state-owned oil company PdVSA on January 28, which we discussed in prior client updates on February 6, 2019 and February 13, 2019.
 
Specifically, the administration designated Moscow-based bank Evrofinance as an SDN for supporting PdVSA and engaging in alleged sanctions circumvention activities. This action highlights risks for non-U.S. companies that provide financial support to SDNs or blocked persons or otherwise support the Maduro regime. In addition, the administration designated as SDNs several major state-owned companies operating in the financial and metals sectors of Venezuela.
 
Furthermore, the U.S. House of Representatives passed two bills on March 25, 2019 with overwhelming bi-partisan support that, if enacted into law, would further restrict the Maduro regime’s access to U.S. munitions and dual-use items, as well as apply scrutiny to any potential Russian acquisition of the U.S. energy infrastructure holdings of CITGO, a PdVSA subsidiary.
 

This update summarizes these recent actions, as well as other recent Venezuela-related sanctions developments. …  

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

COM_a414. T. Murphy: “Section 301 Update”

(Source: Author, 29 Mar 2019.)
 
* Author: Ted Murhpy, Esq., Baker & Mckenzie. Contact Ted at:
 
Just a quick update on the evolving Section 301 situation.
 
First, negotiations for a deal are continuing (and appear to be making meaningful progress).  U.S. trade officials were in Beijing this week, and Chinese officials will be coming to Washington, DC next week, to continue the negotiations.  By all accounts, progress is being made on the terms of a deal, but certain key issues remain unresolved.  If progress continues to be made (which, while not guaranteed, we expect given both sides’ strong desire for a deal), there will likely be a summit/signing ceremony sometime late April-June.  
 
One of the things to keep an eye on as the talks progress is whether the deal will result in either side rolling back the duties already imposed (e.g., the List 1, 2 and 3 duties in the United States).  Last week, President Trump said that, even if a deal is reached, he intended to keep the duties in place “for a substantial period of time” until he is sure that China is complying with the terms (remember, we do not always take what he says literally, but we do take it seriously).  If the United States takes this approach, we expect that China will keep its retaliatory duties in place as well (the U.S. has imposed additional tariffs on $250 billion worth of Chinese-origin goods and China has imposed retaliatory duties on $110 billion worth of U.S.-origin goods). 
 
Second, the U.S. Trade Representative’s office recently released a second tranche of product exclusion approvals for List 1.   These exclusions include numerous products in Chapter 84, 85 and 90, including various types of housings, filters, rotors, valves, engines & motors.  There are also exclusions for certain high tech products (ADP storage units, digital displays, LED displays), and consumer products (instrument tuners, breast pumps, salad spinners). Since the approvals are product-specific (not company-specific), all companies which import merchandise subject to Section 301 duties should be reviewing the approvals to see if they can benefit.  Remember, the approvals are retroactive (e.g., back to July 6, 2018 for List 1 articles).
 
Third, the U.S. Trade Representative’s office has not created a product exclusion process for List 3 by March 17th, despite the clear instruction from Congress in the Explanatory Statement to the Consolidated Appropriations Act, 2019 (H.J. Res. 31) (see previous post).  It appears that the USTR is sticking to its position that the exclusion process will only be created if the List 3 duty rate goes from 10% to 25%.
 

Finally, one of the ‘hidden’ (or maybe lingering) costs of the trade way will be the increased bond costs many importers are bearing as a result of the increased duties.  Even if a deal is reached (and even if duties are eventually rolled back), we do not believe that bond amounts will be lowered very quickly (if at all).  As a result, importers will likely be bearing this additional cost well into the future. 

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

COM_a515. The FAQ of the Day: Unknown Procurement Method of a Defense Article
 
Q: Which office (DDTC or RSAT) should a foreign end user contact if they are not certain of the original procurement method of a defense article (FMS or DCS) and is seeking a third party transfer or reexport/retransfer authorization?
 

A: Where a foreign end user is not certain of the original procurement method, RSAT is the appropriate office for the foreign end user to submit a request (PM_RSAT-TPT@state.gov). In such cases, RSAT will process the request and coordinate with DDTC. Information on RSAT and the third party transfer process can be found at www.state.gov/t/pm/rsat/index.htm. Whether for RSAT or DDTC, to facilitate adjudication of the request, we ask that the foreign end user provide a best-faith statement as to what it believes to be the original acquisition method (i.e., via DCS or FMS), a summary of steps taken to investigate the acquisition of the article(s), and any other information that may be helpful.

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

TEEX/IM TRAINING EVENTS & CONFERENCES

TE_a0
16.
ECS Presents “ITAR/EAR Bootcamp: Achieving Compliance” on 8-9 Jul in Seattle, WA

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

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

(Source: Editor) 
 
* What: Export Compliance Training, including the following topics:
  – Setting the Scene: International relations and developments in the export control arena.
  – Regulatory framework and basics of U.S. (ITAR/EAR) and EU / Dutch dual-use and military export controls
  – Tips for designing / enhancing an Internal Compliance Program (ICP).
* 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.
 

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

TE_a318. 
List of Approaching Events: 145 Events Posted This Week, Including 14 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 
webinars. 
   
If you wish to submit an event listing, please send it to to
jobs@fullcirclecompliance.eu
, composed in the below format:
 
    
#
 * Date: Location; “Event Title”; <Weblink>”; EVENT SPONSOR
 
   ”
*” = New or updated listing  

 
Continuously Available Training
 

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

* Webinar: ”
Company-Wide US Export Controls Awareness Program“; Export Compliance Training Institute;
danielle@learnexportcompliance.com 

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

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

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

 

* Apr 1: Eindhoven, NL; “
Export Control, Dual-use en Sancties
“; Fenex
*
 
Apr 2: Brussels, Belgium; “
Dual-Use, Military Research & Misuse
“; Vrije Universiteit Brussel
*
 
Apr 2: Delft, The Netherlands; “
Export Compliance Training“; 
Netherlands Aerospace Group and Full Circle Compliance

* 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 4-5; Miami, FL; “
CTPAT Training
“; SCS America
* 
Apr 9: Bruchem, The Netherlands; “
Awareness Course U.S. Export Controls: ITAR & EAR from a Non-U.S. Perspective
“; Full Circle Compliance
*
 
Apr 9: Sheffield, UK; “
An Introduction to Export
“; Sheffield Chamber of Commerce
*
 
Apr 9: London, UK; “
Strategic Export Control: Intermediate Practitioners Course
“; UK/DIT

* Apr 10: Arlington, VA; “Basic ITAR“; Barnes & Thornburg

*
 
Apr 10: London, UK; “
Strategic Export Control: Foundation Workshop
“; UK/DIT
*
 
Apr 10: London, UK; “
Strategic Export Control: Licenses Workshop
“; UK/DIT
*
 
April 10: Sheffield, UK; “
Export Documentation – How and Why?” 
; Sheffield Chamber of Commerce

* 
Apr 16: Leeds, UK; “
Export Documentation
“; Chamber International

Apr 17: Miami, FL; “
CBP COMPLIANCE & ENFORCEMENT
“; Diaz Trade Consulting
*
 Apr 17-18; Miramar, FL; “
11th Maritime Forwarding, Freight Logistics & Global Chain Supply Workshop
“; ABS Consulting;


Apr 17-18: Scottsdale, AZ; “
Complying with U.S. Export Controls
“; Commerce/BIS

*
 
April 18: Sheffield, UK; “
International Trade Operations and Procedures (ITOPS)
; Sheffield Chamber of Commerce

* Apr 23: Anaheim, CA; “Export Controls Essentials: What Finance Personnel Need to Know“; California State University

* Apr 23-24: Portsmouth, NH;

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

Technology Controls
“; Commerce/BIS
*
 
Apr 25: London, UK; “
Making better License Applications
“; 
UK/DIT

* Apr 25: Minneapolis, MN; “Importing 201: Advanced Import Compliance“; Global Training Center

# *
Apr 30-May 1: Dallas, TX; “Compliance Officer Training“; Globaleyes; 

*
 
Apr 30-May 1: Irvine, CA: “
Complying with U.S. Export Controls
“; Commerce /BIS

*
 Apr 30-May 1: Nashville, TN: “Mastering ITAR/EAR Challenges“; Export Compliance Solutions (ECS);
*
 
May 1: Leeds, UK; “
Understanding Exporting & Incoterms
“; Chamber International

* May 2-3: Washington DC; “Economic Sanctions Enforcement and Compliance;” American Conference Institute
*
 
May 5: Munich, Germany; “
European and German Export Controls
“; AWA;

* 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
*
 
May 8: Southampton, UK; “
Strategic Export Control: Intermediate Practitioners course
“; UK/DIT
*
 
May 9: Southampton, UK; “
Strategic Export Control: Foundation Workshop
“; UK/DIT
*
 
May 9: Southampton, UK; “
Strategic Export Control: Licenses Workshop
“; UK/DIT
*
 
May 9: Sheffield, UK; “
Essential Incoterms – Getting it Rights
“; Sheffield Chamber of Commerce
*
 
May 15: Bristol, UK; “
A Foundation Course in Importing
“; BusinessWest
*
 
May 15-17; London, UK; “ICPA European Conference“; ICPA

#
* May 16: Bellevue, WA; “The Ever-Changing International Trade Landscape“; Baker McKenzie

* 
May 16: Bristol, UK; “
Export Controls and Licensing
; BusinessWest
*
 
May 16: Bristol, UK; “
Inward Processing Relief
“; BusinessWest
*
 May 16: Hamburg, Germany; “
U.S. Export Controls and Embargoes & Sanctions for European Companies
“; Hamburger Zollakademie
*
 
May 16-17; Toronto, Canada; “ICPA Canada Conference“; ICPA

* May 17: Milwaukee, WI; “Importing 201: Advanced Import Compliance“; Global Training Center

* May 19: Traverse City; “Export Compliance Overview Traning“; Foster Swift Collins & Smith PC  

*
 
May 21: London, UK; “
US & UK Export Controls: A Basic Understanding
“; The Institute of Export and International Trade

* Jun 5-6: Seattle, WA; “
Complying with U.S. Export Controls
“; Commerce/BIS
*
 
Jun 7: Upper Marlboro, MD; “
2019 Spring Golf Outing
“; SIA

*
 
Jun 10: Cleveland, OH; “
Letters of Credit
“; Global Training Center
*
 
Jun 11: Cleveland, OH; “
Export Doc & Proc
“; Global Training Center
*
 
Jun 11: Sheffield, UK; “
Customs Procedures and Compliance in International Trade
“; Sheffield Chamber of Commerce


Jun 11-12: Detroit, MI; “
Complying with U.S. Export Controls
“; Commerce/BIS

*
 
Jun 12: Cleveland, OH; “
Tariff Classificatio
n“; Global Training Center
*
 
Jun 12: Derby, UK; “
Strategic Export Control: Intermediate Practitioners course
“; UK/DIT
*
 
Jun 13: Cleveland, OH; “
NAFTA Rules of Origin
“; Global Training Center
*
 
Jun 13: Derby, UK; “
Strategic Export Control: Foundation Workshop
“; UK/DIT
*
 
Jun 13: Derby, UK; “
Strategic Export Control: Licenses Workshop
“; UK/DIT
*
 
Jun 13: Detroit, MI; “
How to Build an Export Compliance Program
“; Commerce/BIS
*
 
Jun 14: Cleveland, OH; “
Incoterms® 2010 Rules
“; Global Training 
* Jun 17-20: San Diego, CA; “ITAR Defense Trade Controls / EAR Export Controls“; ECTI
*
 
Jul 3: Bristol, UK; “
Introduction to Export Procedures – Export Training
“; BusinessWest
*
 
Jul 3: Cambridge, UK;
Strategic Export Control: Intermediate Practitioners Course
“; UK/DIT
*
 
Jul 4: Cambridge, UK;
Strategic Export Control: Foundation Workshop
“; UK/DIT
*
 
Jul 4: Cambridge, UK; “
Strategic Export Control: Licenses Workshop
“; UK/DIT
*
 
Jul 4: Bristol, UK;
Using Documentary Letters of Credit, Drafts and Bills”; 
BusinessWest
*
 
Jul 4: Sheffield, UK; “
An Introduction to Export
“; Sheffield Chamber of Commerce
*
 
Jul 8-9: Seattle, WA: “
Boot Camp: Achieving ITAR/EAR Compliance
“; Export Compliance Solutions (ECS);

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

* Jul 9-11: Washington; “
BIS 2019 Annual Conference on Export Controls and Policy
“; Commerce/BIS

*
 
July 10: Sheffield, UK; “
Export Documentation – How and Why?” 
; Sheffield Chamber of Commerce

*
 
Jul 11: Birmingham, UK; “
US & UK Export Controls: A Basic Understanding
“; The Institute of Export and International Trade

*
Jul 24-25: St. Louis, MO; “
 Complying with U.S. Export Controls
“; Commerce/BIS

* Aug 20-21: Cincinnati, OH;

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

* Aug 20-21: Milpitas, CA;

Complying with U.S. Export Controls
“;
Commerce/BIS
* Aug 22: Milpitas, CA:

Encryption Controls
“;
Commerce/BIS

* Sep 2, 9, 16: Rotterdam, the Netherlands; “Awareness training Export Control, Dual-use en Sancties“; FENEX

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

* Sep 16-19: Austin, TX; “
ITAR Controls / EAR & OFAC Export Controls (Sep 18-19) Seminar Series
“; ECTI
; 540-433-3977
*
 
Sep 17: Sheffield, UK; “
Customs Procedures and Compliance in International Trade
“; Sheffield Chamber of Commerce


Sep 17-19: Annapolis, MD; “
The ECS 2nd Annual ITAR/EAR Symposium
“; ECS
*
 Sep 20: Las Vegas; “
EAR and OFAC Fundamentals: Export Control Of Dual-Use Equipment
“; Barnes & Thornburg LLP
*
 
Sep 25: Bristol, UK; “
Classification of Goods – Using Commodity and Tariff Codes”; 
BusinessWest
* 
Sep 25: Bristol, UK; “
Incoterms® Rules 2010
“; BusinessWest
*
 
Sep 25: London, UK; “
US & UK Export Controls: A Basic Understanding
; The Institute of Export and International Trade
*
 
Sep 25: Sheffield, UK; “
Essential Incoterms – Getting it Rights
“; Sheffield Chamber of Commerce
*
 
Sep 26: Bristol, UK; “
Understanding The Paperwork
“; BusinessWest

* Sep 30 – Oct 3; Amsterdam, NL; “
ITAR Controls / EAR/OFAC Commercial and Military Controls
“; ECTI
; 540-433-3977

#
* Oct 3; Rotterdam, the Netherlands; “Trade Compliance Congres 2019“; Sdu

*
 
Oct 7: Munich, Germany; “
European and German Export Controls
“; AWA

* Oct 14-17; Columbus, OH; “
University Export Controls Seminar
“; ECTI
*
 
Oct 17: Sheffield, UK; “
Export Documentation – How and Why?” 
; Sheffield Chamber of Commerce
*
 
Oct 27: Singapore; “
5th Asia Pacific Summit on Economic Sanctions Compliance and Enforcement
“; 
American Conference Institute


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

* Oct 28-31; Phoenix, AZ; “
ITAR Controls / EAR & OFAC Export Controls Seminar Series
“; ECTI
* Nov 11-14; Washington, DC; “
ITAR Controls / EAR & OFAC Export Controls Seminar Series
“; ECTI
*
 
Nov 20: Bristol, UK; “
Introduction to Export Procedures – Export Training
“; BusinessWest
*
 
Nov 21: Bristol, UK; “
A Foundation Course in Importing
“; BusinessWest

*
 
Nov 26: Bruchem, The Netherlands; “The International Traffic in Arms Regulations (EAR) from a non-U.S. Perspective“; Full Circle Compliance
* 
Nov 27: Bruchem, The Netherlands; ” The Export Administration Regulations (EAR) from a non-U.S. Perspective“; Full Circle Compliance
 
*
 
Nov 27: Manchester, UK; “
US & UK Export Controls: A Basic Understanding
“; The Institute of Export and International Trade
* Dec 4-5: New York, NY; “10th Annual New York Forum on Economic Sanctions;” American Conference Institute
*
 
Dec 4-5: Washington, DC; “
36th International Conference on the Foreign Corrupt Practices Act
“; American Conference Institute

* Dec 9-12; Miami, FL; “
ITAR Controls / EAR & OFAC Export Controls Seminar Series
“; ECTI
*
 Dec 12-13; Washington D.C.; “
Coping with U.S. Export Controls and Sanctions 2019
“; Practicing Law Institute
 
2020

 
*
 
Jan 30-31: Houston, TX; “
14th Forum on the Foreign Corrupt Practices Act
“; 
American Conference Institute

#
* Feb 5-6; Munich, Germany; “Export Compliance in Europe Conference“; NielsonSmith

 
Webinars 


 


Apr 10: Webinar: “
Import Compliance Bootcamp
“; Sandler, Travis & Rosenberg, P.A

Apr 16: Webinar: “
CFIUS Update: New Requirements to Meet, New Industries Affected
“; ECTI; 540-433-3977

* Apr 16: Webinar: “Importing 201: Advanced Import Compliance“; Global Training Center


Apr 23: Webinar: “
How to Improve Export Compliance with Effective Audits
“; ECTI; 540-433-3977

* Apr 23: Webinar: “ITAR Training Basics – For Compliance Executives April“; CVG Strategy

#
* Apr 23: Webinar: “Switzerland’s Export Control and Customs Regimes: a webinar“; WorldECR in association with MME

* Apr 25: Webinar: “Best Practices for Voluntary and Required Self Disclosures“; Massachusetts Export Center   

* May 22: Webinar: “ITAR“; Global Training Center
* May 23: Webinar: “EAR“; Global Training Center

#
* Oct 29: Webinar: “Key updates on export controls and sanctions“; Baker McKenzie
#
* Dec 17: Webinar: “Managing Emerging Compliance Risks“; Baker McKenzie

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

ENEDITOR’S NOTES

EN_a119
. Bartlett’s Unfamiliar Quotations

(Source: Editor)

 

* Amelia Barr (Amelia Edith Huddleston Barr; 29 Mar 1831 – 10 Mar 1919; was a British novelist and teacher. Her career is an illustration of the capacity of woman under stress of sorrow to conquer the world and be successful.)
  – “It is only in sorrow bad weather masters us; in joy we face the storm and defy it.”
 
* Maimonides (Moses ben Maimon;  30 Mar 1135 or 1138 – 12 Dec 1204; was a medieval Sephardic Jewish philosopher who became one of the most prolific and influential Torah scholars of the Middle Ages. In his time, he was also a preeminent astronomer and physician.)
  – “Do not consider it proof just because it is written in books, for a liar who will deceive with his tongue will not hesitate to do the same with his pen.”
 
Friday’s proverbs:
* It is often the last key on the ring which opens the door | Turkish proverb.
* To advise is easier than to help. | German Proverb

* A man grows most tired while standing still. | Chinese Proverb

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

EN_a220. Are Your Copies of Regulations Up to Date?
(Source: Editor)

The official versions of the following regulations are published annually in the U.S. Code of Federal Regulations (C.F.R.), but are updated as amended in the Federal Register.  The latest amendments to applicable regulations are listed below.
 

*
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 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.
 

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 the 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: 14 Mar 2019:
 
84 FR 9239-9240
: Bump-Stock-Type Devices
 

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: 19 Mar 2019: 84 FR 9957-9959: Department of State 2019 Civil Monetary Penalties Inflationary Adjustment
  – 
The only available fully updated copy (latest edition: 19 March 2019) of the ITAR with all amendments is contained in 
Bartlett’s Annotated ITAR 
(“BITAR”), by James E. Bartlett III. The BITAR is a 361-page Word document containing 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 download, 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 Mar 2019: 
84 FR: 9456-9458
: List of Foreign Financial Institutions Subject to Correspondent Account or Payable-Through Account Sanctions (CAPTA List)
  
*
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: 25 Mar 2019:
Harmonized System Update 1904, contains 1,015 ABI records and 194 harmonized tariff records

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

EN_a321
. Weekly Highlights of the Daily Bugle Top Stories
(Source: Editor)
 

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

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

* The Ex/Im Daily Update is a publication of FCC Advisory B.V., compiled by: Editor, James E. Bartlett III; Assistant Editors, Alexander P. Bosch and Vincent J.A. Goossen; and Events & Jobs Editor, Alex Witt. The Ex/Im Daily Update is emailed every business day to approximately 7,000 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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