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19-0419 Friday “Daily Bugle”

19-0419 Friday “Daily Bugle”

Friday, 19 April 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. State Amends ITAR Part 126 Concerning Transfers Made by or for a Department or Agency of the U.S. Government
  1. Items Scheduled for Publication in Future Federal Register Editions 
  2. Commerce/BIS: (No new postings.) 
  3. State/DDTC Publishes Notice Concerning Today’s Amendment to ITAR Part 126.4
  1. Reuters: “Exclusive: New York Fed Cracks Down on Puerto Rico Banks Following Venezuela Sanctions”
  1. M. Volkov: “OFAC Sanctions Compliance Insights from Standard Chartered Bank Enforcement Action (Part III of III)”
  1. FCC Presents “Designing an Internal Compliance Program for Export Controls & Sanctions”, 1 Oct in Bruchem, the Netherlands
  2. List of Approaching Events: 144 Events Posted This Week, Including 8 New Events 
  1. New Edition of Bartlett’s Annotated ITAR (“BITAR”) is Available 
  2. Bartlett’s Unfamiliar Quotations 
  3. Are Your Copies of Regulations Up to Date? Latest Amendments: DHS/Customs (5 Apr 2019), DOC/EAR (11 Apr 2019), 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 Apr 2019), DOT/FACR/OFAC (15 Mar 2019), HTSUS (18 Apr 2019) 
  4. Weekly Highlights of the Daily Bugle Top Stories 

EXIMITEMS FROM TODAY’S FEDERAL REGISTER

EXIM_a1

1
. State Amends ITAR Part 126 Concerning Transfers Made by or for a Department or Agency of the U.S. Government
 


(Source:
Federal Register, 19 Apr 2019.) [Excerpts.]
 


 

84 FR 16398-16402: International Traffic in Arms Regulations: Transfers Made by or for a Department or Agency of the U.S. Government
 
* AGENCY: Department of State.
* ACTION: Final rule.
* SUMMARY: The Department of State is amending the International Traffic in Arms Regulations (ITAR) to revise the licensing exemption for transfers made by or for an agency of the U.S. Government.
* DATES:
This rule is effective today, April 19, 2019.
* FOR FURTHER INFORMATION CONTACT: Robert Monjay, Office of Defense Trade Controls Policy, Department of State, telephone (202) 663-2817; email
DDTCPublicComments@state.gov. ATTN: ITAR Amendment–By or For.
* SUPPLEMENTARY INFORMATION: The Department published a proposed rule on May 22, 2015 (RIN 1400-AC88, 80 FR 29565) (Proposed Rule) and received 17 public comments. The Department published a final rule on August 17, 2016 (81 FR 54732) covering those elements of the Proposed Rule not related to the exemption for exports and temporary imports made to or on behalf of a department or agency of the U.S. Government in ITAR Sec. 126.4, and addressed the relevant public comments. This final rule addresses only the proposed revision of that exemption, and addresses only the public comments related to that proposal. The changes to Sec. 126.4 relevant to the existing text are described below.
  This final rule revises ITAR Sec. 126.4 to clarify when exports, reexports, retransfers, temporary imports, and performance of a defense service (collectively described as “transfers” for the remainder of this rule) may be made by or for an agency of the U.S. Government without a license, including by employees of the U.S. Government in the performance of their official duties. This rule expands the scope of this exemption to allow for permanent exports, reexports, and retransfers, in addition to temporary exports and imports, and to allow transfers by third parties acting for the U.S. Government. In addition, this rule revises the section heading from shipments to transfers to reflect the scope of the exemption.
  The authorization to transfer defense articles and defense services by or for the U.S. Government is divided between paragraphs (a) and (b) in the revised Sec. 126.4. Paragraph (a) applies to transfers made by the U.S. Government and paragraph (b) applies to transfers made for, or on behalf of, the U.S. Government. Paragraphs (c), (d), (e) and (f) set out additional requirements applicable to transfers made under either paragraph (a) or (b).
  Paragraph (a) is revised to authorize those transfers made by a department or agency of the U.S. Government (1) for official use by the U.S. Government, (2) for carrying out certain international agreements or arrangements, (3) for carrying out foreign assistance, or sales programs authorized by statute, or (4) for carrying out certain Department of Defense (DOD) “security cooperation programs and activities,” as that term is defined in paragraph (a)(4)(i). Certain agreements or arrangements entered into with international partners authorized by Title 10, Title 22, or a National Defense Authorization Act are included in paragraph (a)(2), and may be for cooperative research, development, testing, evaluation, or production; reciprocal use of test facilities; loan of equipment and material; personnel exchange; cooperative logistics support, acquisition, and cross-servicing; security of supply; or reciprocal defense procurement activities, among others. The exemption continues to authorize the transfer of technical data, although the Department has deleted the term as redundant because the definition of “defense article” in Sec. 120.6 includes technical data.
  Paragraph (a)(1) also provides that use by U.S. Government contractors can be within the scope of the official use of the U.S. Government, when the U.S. Government contractor is either operating within a U.S. Government-controlled facility or a U.S. Government employee is empowered and responsible to exercise control over the defense article. Additionally, the Deputy Assistant Secretary of State for Defense Trade Controls may approve the use of this exemption for other activities by U.S. Government contractors if requested by a department or agency of the U.S. Government. Paragraph (a)(1)(ii)(D) is added to clarify that the provision does not authorize the release of technical data to persons or entities of a country identified in Sec. 126.1, even if they are in a contractual relationship with the U.S. Government.
The existing note is deleted, as the special definition of an item considered to be permanently exported is no longer necessary because the exemption is expanded to allow for permanent and temporary transactions. Paragraph (a)(5) is added to explain that authorization of a transfer under Sec. 126.4 is for purposes of the ITAR only, and that it does not constitute any other form of U.S. Government approval that may be required, including but not limited to requirements imposed by statutes, contracts, or agreements, such as a third party transfer requirement under a Memorandum of Understanding or foreign assistance program. Additionally, authorization to export does not absolve parties of the requirement to comply with any applicable U.S. Government processes, procedures, or practices, including the need for exports of items on the MTCR Annex to receive the case-by-case review called for by the MTCR Guidelines.
  Paragraph (a)(6) is added to retain the existing provision that this exemption cannot be used when the U.S. Government is acting as a transmittal agent on behalf of a private individual or firm, even when it does so in satisfaction of security requirements. The Department removed the requirement that the U.S. Government must conduct all aspects of the transaction and the special definition of permanent export. The Department also eliminated language limiting the scope of the rule to temporary imports and temporary exports, and added a new paragraph (f) to clarify that a Directorate of Defense Trade Controls (DDTC) authorization is required for any change in end-use or end-user not authorized by the section.
  Paragraph (a)(7) is added to clarify that exports made in compliance with section 38(b)(2) of the Arms Export Control Act (AECA) (22 U.S.C. 2778(b)(2)) are excluded from the licensing requirements of the AECA and do not require export authorization from DDTC. Any defense article or defense service exported in compliance with section 38(b)(2) is excluded from ITAR control provided it is either: (1) For official use by a department or agency of the United States Government, as implemented in Sec. 126.4(a)(1) and (b), or (2) for carrying out any foreign assistance or sales program authorized by law and subject to the control of the President by other means, as stated in Sec. 126.4(a)(3) and (b). Unless otherwise authorized pursuant to U.S. law or regulation, reexport or retransfer of defense articles and services exported pursuant to section 38(b)(2) but which no longer are subject to independent controls require authorization from the Department of State. Nothing in ITAR Sec. 126.4 relieves exporters from any other obligation imposed by U.S. law or regulation outside of the ITAR, including any applicable United Nations or U.S. embargo or sanction.
  Paragraph (a)(4)(ii) is added to clarify that the U.S. Government agency or entity exporting pursuant to the exemption is required to obtain appropriate end-use assurances from the recipient, including verification that the recipient has knowledge of and intent to comply with paragraph (f).
  A new paragraph (b) is added to authorize transfers performed by another entity for a department or agency of the U.S. Government. Third parties may only perform a transfer for a department or agency of the U.S. Government under this exemption when that department or agency would have been authorized to perform the transfer itself under paragraph (a). Transfers by third parties directly to the U.S. Government overseas may be conducted at the request of the U.S. Government. Transfers by third parties to anyone other than the U.S. Government, including directly to any U.S. Government contractors, must be conducted pursuant to written direction from the U.S. Government department or agency, such as through contractual documents, or pursuant to an international agreement or arrangement. For example, transfers by a company to itself may be authorized by written direction from the U.S. Government department or agency requiring the transfer. Under no circumstances shall a transfer to any non-U.S. Government entity be authorized under paragraph (b)(1). Each department or agency will determine for itself who is authorized to issue such written directions.
  A new paragraph (c) is added to clarify that the ITAR does not require an authorization for the return to the United States of a defense article exported under this section provided the defense articles have not been subsequently transferred without authorization or by license or other approval pursuant to another provision of the ITAR. The defense article must be returned to the U.S. Government or to the person who exported it pursuant to paragraph (b).
  The Department redesignated the existing paragraph (b) as new paragraph (d) and existing paragraph (d) as new paragraph (e). The Department also removed the text of the existing paragraph (c), as permanent exports are now included in the authorizations in paragraphs (a) and (b). The Department revised new paragraph (d) for clarity and to specifically state that this exemption does not authorize exports that would violate a U.S. or United Nations Security Council arms embargo. The Department revised new paragraph (e) (former paragraph (d)) to clarify that exporters no longer need to provide U.S. Customs and Border Protection with a written certification of compliance with this section and to clarify that the ITAR does not impose an Electronic Export Information (EEI) filing requirement on exports via U.S. Government vehicles, aircraft and vessels. To the extent that other U.S. Government statutes and regulations do impose an EEI filing requirement, this provision is not intended to serve as an exemption from that requirement.
  The Department added a new paragraph (f) which provides that authorization from DDTC in the form of a license or other approval, including through Sec. 126.4, is required for any change in the end-use or end-user.
  The Department also revised Sec. 126.1(a) to add Sec. 126.4(a)(1) and (3) and (b)(1) to the list of exemptions provided for in the ITAR that apply with respect to defense articles or defense services originating in or for export to any proscribed countries, areas, or persons. Exports may not be made under any other provision of this exemption to the countries that are subject to restrictions identified in Sec. 126.1.
  . . . . 

Andrea Thompson, Under Secretary for Arms Control and International Security, U.S. Department of State
 
[Edditor’s Note:  See Item #9, below, regarding a commercially available copy of an annotated version of the ITAR containing the above amendment plus commentary.] 

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

OGSOTHER GOVERNMENT SOURCES

OGS_a12
. Items Scheduled
for Publication in Future Federal Register Editions

(Source:
Federal Register
)

 

[No items of interest noted today.]  

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

OGS_a23
. Commerce/BIS: (No new postings.)

(Source: Commerce/BIS)

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

(Source:
State/DDTC, 19 Apr 2019.)
 
The Directorate of Defense Trade Controls has published an
amendment to International Traffic in Arms Regulations § 126.4 that substantially expands and clarifies the circumstances under which transfers of defense articles and services by or for a Department or Agency of the U.S. government may occur without a license.  This amendment furthers the objectives outlined in the
President’s Conventional Arms Transfer Policy.  The revisions articulated in the amendment:
 
  – Expand the scope to allow for permanent exports, reexports, and retransfers, in addition to temporary exports and imports; 
  – Clarify use for contractors engaged in official business and acting on behalf of the U.S. government;
  – Clarify use for transfers in furtherance of international agreements or security cooperation programs with the U.S. government; and
  – Expand the scope to allow transfers by third parties acting at the direction of the U.S. government. 
 
These revisions advance U.S. interests by facilitating defense cooperation with our partners and allies and by supporting the U.S. defense industry through removal of a range of licensing requirements for transfers that have otherwise been vetted by the U.S. government.  They also support our defense research and development partners by facilitating work under cooperative development programs with the Department of Defense.

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

NWSNEWS

NWS_a015.
Reuters: “Exclusive: New York Fed Cracks Down on Puerto Rico Banks Following Venezuela Sanctions”

(Source:
Reuters, 18 Apr 2019.) [Excerpts.]
 
U.S. sanctions on Venezuela have led the New York Federal Reserve to crack down on Puerto Rico’s $50 billion offshore banking industry, according to four sources and a document seen by Reuters.
 
The development will prevent the island’s offshore banks, several of which are owned by citizens of crisis-stricken Venezuela, from opening accounts with the Fed that give them direct access to the U.S. financial system.
 
Offshore banks in Puerto Rico are able to open accounts with the Fed since the island is a U.S. territory. That gives them a competitive advantage over other offshore banking jurisdictions like the British Virgin Islands, which have to access the U.S. financial system through expensive third-party correspondent banks.
 
But in a previously unreported Feb. 27 letter, the New York Fed said it had halted approval of new accounts for Puerto Rican offshore banks and other financial institutions “in light of recent events, including the expansion of U.S. economic sanctions relating to Venezuela.”
 
It plans stricter requirements for the opening of such accounts in the future, it said.
 

It did not give further details on why it was taking that step. But the move follows two Puerto Rican offshore banks that have accounts open with the New York Fed being mentioned in federal investigations into money laundering and sanctions evasion related to Venezuela. … 

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

COMCOMMENTARY

COM_a16
M. Volkov: “OFAC Sanctions Compliance Insights from Standard Chartered Bank Enforcement Action (Part III of III)”
(Source:
Volkov Law Group Blog. Reprinted by permission.)
 
* Author: Michael Volkov, Esq., Volkov Law Group,
mvolkov@volkovlaw.com, 240-505-1992.
 
The Treasury Department’s Office of Foreign Asset Control (OFAC) has promised to issue guidance on effective sanctions compliance programs. This is a long-anticipated update to prior information OFAC has released on the same subject.
 
OFAC has raised the stakes for sanctions enforcement, especially with respect to Iran and Venezuela sanctions programs. So far this year, OFAC has announced a number of significant enforcement actions and is sending a strong message on the importance of compliance. Companies that ignore these stakes are only asking for trouble (how is that for a trite phrase).
 
OFAC’s Settlement Agreement (
here) with Standard Chartered Bank contains some important details surrounding sanctions compliance. DOJ’s amended deferred prosecution agreement incorporates these details be reference (here). The SCB DPA also includes some important factors credited by DOJ as part of SCB’s remedial measures.
 
Companies that are in the process of implementing or updating their OFAC sanctions compliance program should review these documents and should incorporate these compliance expectations and elements into their own analysis.
 
As part of its settlement agreement, SCB agreed to maintain sanctions compliance measures. The key elements include:
 
– Management Commitment
– Risk Assessment
– Internal Controls
– Testing & Audit
– Training
 
A brief description of each element and the expectations relating to each is set forth below:
 
Under Management Commitment, SCB has to ensure that senior management reviews and approves SCB’s sanctions compliance program; and senior management executives and board of directors maintain commitment and support of SCB’s sanctions compliance program.
 
Senior managers also are required to delegate sufficient authority and autonomy to deploy its policies and procedures to mitigate SCBS’ sanctions risks; and compliance units(s) must receive adequate resources, including in the form of human capital, expertise, information technology and other resources, as appropriate, that are relative to SCB’s breadth of operations, target and secondary markets, and other factors affecting to its overall risk profile.
 
Senior management has to promote a “culture of compliance” throughout the organization; and demonstrate recognition of the seriousness of apparent violations of the laws and regulations and the importance of preventing recurrence.
 
Under Risk Assessment, SCB has to conduct an OFAC risk assessment in a manner and with a frequency that adequately accounts for potential risks posed by its clients and customers, products, services, supply chain, intermediaries, counter-parties, transactions, and geographic locations; and SCB has to develop a methodology to identify, analyze, and address the particular risks it identifies.
 
With respect to Internal Controls, SCH has to design and implement written policies and procedures outlining its sanctions compliance program. These policies and procedures have to be relevant to the organization, captures SCB’s day-to-day operations and procedures, are easy to follow, and prevent employees from engaging in misconduct.
 
Further, SCB’s internal controls have to adequately address the results of its OFAC risk assessment and profile, and should enable SCB to clearly and effectively identify, interdict, escalate, and report to appropriate personnel within the organization transactions and activity that may be prohibited by OFAC.
 
Interestingly, with respect to automated databases used for sanctions compliance, SCB has to ensure that it has selected and calibrated the solution in a manner that is appropriate to address SCB’s risk profile and compliance needs, and SCB routinely tests the solution to ensure effectiveness.
 
SCB has to enforce its policies and procedures through internal and/or external audits and has to ensure that its OFAC-related recordkeeping policies and procedures adequately account for its requirements. SCB specifically has to ensure that, upon learning of a weakness in its internal controls pertaining to sanctions compliance, it will take immediate and effective action, to the extent possible, to identify and implement compensating controls until the root cause of the weakness can be determined and remediated.
 
SCB further has to clearly communicate the sanctions compliance program’s policies and procedures to all relevant staff, including personnel within the sanctions compliance function, as well as relevant gatekeepers and business units operating in high-risk areas (e.g., customer acquisition, payments, sales, etc.) and to external parties performing sanctions compliance responsibilities on behalf of SCB.
 
In particular, SCB has to appoint personnel to integrate the sanctions compliance program’s policies and procedures into SCB’s daily operations. This process includes consultations with relevant business units and ensures that SCB employees understand the policies and procedures.
 
With respect to Testing and Audits, SCB has to ensure that the testing and/or audit function is accountable to senior management, is independent of the audited activities and functions, and has sufficient authority, skills, expertise, and resources within the organization. SCB has to employ testing or audit procedures appropriate to the level and sophistication of its sanctions compliance program and ensure that this function, whether deployed internally or by an external party, reflects a comprehensive and objective assessment of SCB’s OFAC-related risks and internal controls. Further, SCB has to ensure that, upon learning of a confirmed negative testing or audit result pertaining to its sanctions compliance program, it will take immediate and effective action to identify and implement compensating controls until the root cause of the weakness can be determined and remediated.
 
Finally, with respect to Training, SCB has to ensure that its OFAC-related training program provides adequate information and instruction to employees and, as appropriate, stakeholders (for example, clients, suppliers, business partners, and counterparties) in order to support SCB’s sanctions compliance efforts. SCB’s training program has to provide OFAC-related training with a scope that is appropriate for the products and services it offers; the customers, clients, and partner relationships it maintains; and the geographic regions in which it operates. SCB has to conduct training for all relevant employees at least once a year. SCBs training resources and materials have to be available to all personnel and easily accessible. Upon learning of a confirmed negative testing result or audit finding, or other deficiency pertaining to its sanctions compliance program, SCB has to take immediate and effective action to provide training to relevant personnel.

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

TEEX/IM TRAINING EVENTS & CONFERENCES

TE_a07

FCC Presents “Designing an Internal Compliance Program for Export Controls & Sanctions”, 1 Oct in Bruchem, the Netherlands

 
This training course is designed for compliance officers, managers, and other professionals who aim to enhance their organization’s compliance efforts. The course will cover multiple topics and tackle various key questions, including but not limited to:
– Setting the Scene: ensuring compliance in the export control and sanctions arena
– What is expected from your organization? A closer look at the official frameworks and guidelines from U.S. and European government agencies
– Key elements of an ICP
– Best practice tips for enhancing your current compliance efforts  
– Internal controls samples (policies, procedures, instructions)
– Strategic benefits of having an ICP.
 
* What: Designing an Internal Compliance Program for Export Controls & Sanctions”
* Date: Tuesday, 1 Oct 2019
* Location: Full Circle Compliance, Landgoed Groenhoven, Dorpsstraat 6, Bruchem, The Netherlands
* Times:
  – Registration and welcome: 9.00 am – 9.30 am
  – Training course hours: 9.30 am – 4.30 pm
* Level: Intermediate
* Target Audience:  the course provides valuable insights for both compliance professionals, employees and (senior / middle) management working in any industry subject to U.S. and/or EU (member state) export control laws and sanctions regulations.
* Instructors: Drs. Ghislaine C.Y. Gillessen RA (Managing Director) and Marco M. Crombach MSc (Senior Manager).

* Information & Registration: click here or contact us at events@fullcirclecompliance.eu or 31 (0)23 – 844 – 9046.  

 

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

TE_a38. 
List of Approaching Events: 144 Events Posted This Week, Including 8 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
events@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

* Webinar Series: “Complying with US Export Controls“; Commerce/BIS

* 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 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: Amersfoort, the Netherlands; “Rusland en de onderliggende risico’s bij export“; EvoFenedex

Apr 25: Portsmouth, NH;

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

#
* Apr 25: London, UK; “Post Brexit Documentation and Compliance“; The Institute of Export and International Trade

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

* Apr 30: Tirana, Albania; “Nothing to declare? A complete overview of Trade Compliance“; International Chamber of Commerce Albania

*
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 3: Lowell, MA; “Best Practices for Export Enforcement Management“; Massachusetts Export Center; 617-973-6610

*
 
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 13: Miami, FL; “Automated Commercial Environment (ACE) Export Compliance Seminar (Spanish)“; South Florida DEC  

*
May 13: The Hague, the Netherlands; “Seminar exportcontrole strategische goederen“; Ministerie van Buitenlandse Zaken

* May 14: Miami, FL; “Automated Commercial Environment (ACE) Export Compliance Seminar“; South Florida DEC

*
 
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, MI; “Export Compliance Overview Traning“; Foster Swift Collins & Smith PC   

*
May 20: Schiphol, the Netherlands; “Voorlichting Export licenties, sanctielijsten en Dual use goederen“; ACN
*
May 20-21; Trier, Germany; “Sanctions in EU External Relations“; ERA Academy of European Law  

#
* May 21: Chicago, IL; “Trade Compliance & Policy” C.H. Robinson

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

#
* May 30: London, UK; “London Export Control Symposium“; UK/DIT
#
* May 30: London, UK; “Post Brexit Documentation and Compliance“; 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

#
* Jun 25: London, UK; “Introduction to Export Licensing Controls“; The Institute of Export and International Trade
#
* Jun 26-28: Washington D.C.; “American Association of Exporters and Importers (AAEI) Conference“; AAEI

*
 
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 23-25; Washington D.C.; “Anti-Corruption Compliance for High Risk Markets“; American Conference Institute

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

#
* Aug 1-2: Torrance, CA; “Customs Compliance for Import Personnel” Foreign Trade Association

* 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, NV; “
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 15: Singapore; “
5th Asia Pacific Summit on Economic Sanctions Compliance and Enforcement
“; 
American Conference Institute

*
Oct 17: Sheffield, UK; “
Export Documentation – How and Why?” 
; Sheffield Chamber of Commerce


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: 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 10-11: New York, NY; ” 
10th Annual New York Forum on Economic Sanctions“; American Conference Institute

*
 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

#
* Feb 24-26; Las Vegas, NV; “Winter Back to Basics Conference“; Society for International Affairs

 
Webinars 


 


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   

* April 30: Webinar; “Conducting investigations and making disclosures“; Baker McKenzie


* May 1: Webinar: “Sanctions Update“; Reed Smith LLP

*
May 2: Webinar: “CFIUS, FIRRMA & ECRA?” Arent Fox

* May 9: Webinar: “Duty Drawback: Your Secret Weapon in the Tariff War“; Massachusetts Export Center; 617-973-6610
* May 17: Webinar: “Foreign Investment & Export Control Update:  Next Steps Under the FIRRMA & ECRA“; Massachusetts Export Center; 617-973-6610

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

* Jun 6: Webinar: “China Trade Update“; Massachusetts Export Center; 617-973-6610

*
Jun 12: Webinar: “EU Export Controls“; BDP

* Jul 19: Webinar: “Managing Export Operations and Compliance“; Massachusetts Export Center; 617-973-6610

* 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_a0
9
.
New Edition of 
Bartlett’s Annotated ITAR
 (“BITAR”) is Available

(Source: Editor)
 
A revised edition of the BITAR was published today, containing the 84 FR 16398 (
here) revisions to sections 126.1(a) and 126.4, “Transfers Made By and For a Department of Agency of the U.S. Government.”  The BITAR is a 367-page Word (5.7 MB) 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. If you are already subscribed to the BITAR you can download the latest version via your own account on 
our website.

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

EN_a110
. Bartlett’s Unfamiliar Quotations

(Source: Editor)

 

* Richard Hughes (Richard Arthur Warren Hughes OBE; 19 Apr 1900 – 28 Apr 1976; was a British writer of poems, short stories, novels, and plays.)
  – “Do your bit to save humanity from lapsing back into barbarity by reading all the novels you can.”
  – “All that non-fiction can do is answer questions. It’s fiction’s business to ask them.”
 
Friday’s funnies:
* A biologist, a chemist, and a statistician are out hunting. The biologist shoots at a deer and misses five feet to the left. The chemist takes a shot and misses five feet to the right. The statistician yells “We got ’em!”
* How easy is it to count in binary? It’s as easy as 01 10 11.
* A Roman walks into a bar and says, “Gimme a martinus.” “You mean martini?” the bartender asks. The Roman replies, “If I wanted two, I would have asked for them!” Another Roman walks into the bar, holds up two fingers, and says, “Five beers, please.”

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

EN_a211. 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: 5 Apr 2019:
 
5 Apr 2019: 84 FR 13499-13513: Civil Monetary Penalty Adjustments for Inflation
 

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: 11 Apr 2019:
84 FR 14608-14614
: Revisions to the Unverified List (UVL)

 
*
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 Apr 2019: 84 FR 16398-16402: International Traffic in Arms Regulations: Transfers Made by or for a Department or Agency of the U.S. Government 
  – 
The only available fully updated copy (latest edition: 19 Apr 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:
18 Apr 2019:
Harmonized System Update (HSU) 1906

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

EN_a312
. 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, Vincent J.A. Goossen and Alex Witt; and Events & Jobs Editor, Sven Goor. 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.

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