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19-0701 Monday “Daily Bugle'”

19-0701 Monday “Daily Bugle”

Monday, 1 July 2019

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The 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. Contact us for advertising 

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  1. Commerce/BIS Announces MTAC Meeting on 18 July 2019 in Washington DC 
  2. Commerce/BIS Announces SITAC Meeting on 30 July 2019 in Washington DC 
  1. Items Scheduled for Publication in Future Federal Register Editions 
  2. Commerce/BIS: (No new postings.)
  3. CBP Publishes Guidance on the Exclusion of Particular Products from Section 201
  4. Justice: “California Man Charged with Illegally Exporting Cesium Atomic Clocks to Hong Kong
  5. State/DDTC: (No new postings.)
  6. Treasury/OFAC Publishes Reminder for the Annual Report of Blocked Property
  7. UK ECJU Amends Export Control Order 2008 and Control List
  8. UK OFSI Updates Guidance on Russia Sanctions
  9. Japan METI Updates Licensing Policies and Procedures on Exports of Controlled Items to The Republic of Korea
  1. AMN: “Former Art Student Pleads Guilty to Illegal $6.8 Million Arms Deal with Nigeria”
  2. Business Insider: “5,300 Illegal Firearms and 167 Explosives Were Just Seized in a Massive Bust in Florida”
  3. Deutsche Welle: “Japan Restricts Chip Smartphone Materials Exports to South Korea”
  4. JS: “Wisconsin Gun Manufacturer Shipped Unmarked Rifles, Pistols to Australian Arms Dealer Illegally
  5. The Washington Post: “Two Charged in Massive International Arms Smuggling Scheme”
  1. R. Wiese: “Where Did I Come From – Trade Compliance and Country of Origin Claims”
  2. T. Murphy: “Section 301 – A Temporary Trade Truce”
  3. S. Rajarajan: “Challenge in Aviation Supply Chain – ITAR Compliance”
  1. Monday List of Ex/Im Job Openings: 136 Openings Posted This Week; 20 New Openings 
  1. ECS Presents “2nd Annual ECS ITAR/EAR Symposium and Boot Camp” on 17-19 Sep in Annapolis, MD
  2. FCC Presents “U.S. Export Controls: ITAR from a non-U.S. Perspective”, 26 Nov in Bruchem, the Netherlands
  1. Bartlett’s Unfamiliar Quotations 
  2. Are Your Copies of Regulations Up to Date? Latest Amendments: DHS/Customs (5 Apr 2019), DOC/EAR (27 Jun 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 2018), DOS/ITAR (19 Apr 2018), DOT/FACR/OFAC (5 Jun 2018), HTSUS (26 Jun 2019) 
  3. Weekly Highlights of the Daily Bugle Top Stories 

EXIMITEMS FROM TODAY’S FEDERAL REGISTER

EXIM_a11. Commerce/BIS Announces MTAC Meeting on 18 July 2019 in Washington DC

(Source: Federal Register, 1 July 2019.) [Excerpts.]
 
84 FR 31294-31295: Notice of Partially Closed Meeting of the Materials Technical Advisory Committee
 
The Materials Technical Advisory Committee will meet on July 18, 2019, 10:00 a.m., Herbert C. Hoover Building, Room 3884, 14th Street between Constitution & Pennsylvania Avenues NW, Washington, DC. The Committee advises the Office of the Assistant Secretary for Export Administration with respect to technical questions that affect the level of export controls applicable to materials and related technology.
 
Agenda – Open Session
 
(1) Opening Remarks and Introduction.
(2) Presentation: “The Role of U.S. Engagement in China’s Biotechnology Development”
(3) Presentation: “Synthetic Gene-length DNA: Evolving Export Control Concerns”
(4) Discussion about merging with MPETAC co-chairs
(5) Open session report by regime representatives
 
Agenda – Closed Session
 
(6) Discussion of matters determined to be exempt from the provisions relating to public meetings found in 5 U.S.C. app. 2 Sec. Sec. 10(a)(1) and 10(a)(3).
 
The open session will be accessible via teleconference to 20 participants on a first come, first serve basis. To join the conference, submit inquiries to Ms. Yvette Springer at Yvette.Springer@bis.doc.gov no later than July 11, 2019.
 
A limited number of seats will be available during the public session of the meeting. Reservations are not accepted. To the extent time permits, members of the public may present oral statements to the Committee. The public may submit written statements at any time before or after the meeting. However, to facilitate distribution of public presentation materials to Committee members, the Committee suggests that presenters forward the public presentation materials prior to the meeting to Ms. Springer via email. …
For more information, call Yvette Springer at +1 202 482 2813.
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EXIM_a22. Commerce/BIS Announces SITAC Meeting on 30 July 2019 in Washington DC

(Source: Federal Register, 1 July 2019.)
 
84 FR 31294: Notice of Partially Closed Meeting of the Sensors and Instrumentation Technical Advisory Committee
 
The Sensors and Instrumentation Technical Advisory Committee (SITAC) will meet on July 30, 2019, 9:30 a.m., in the Herbert C. Hoover Building, Room 3884, 14th Street between Constitution and Pennsylvania Avenues NW, Washington, DC. The Committee advises the Office of the Assistant Secretary for Export Administration on technical questions that affect the level of export controls applicable to sensors and instrumentation equipment and technology.
 
Agenda – Public Session
 
(1) Welcome and Introductions.
(2) Remarks from the Bureau of Industry and Security Management.
(3) Industry Presentations.
(4) New Business.
 
Agenda – Closed Session
 
(5) Discussion of matters determined to be exempt from the provisions relating to public meetings found in 5 U.S.C. app. 2 Sec. Sec. 10(a)(1) and 10(a)(3).
 
The open session will be accessible via teleconference to 20 participants on a first come, first serve basis. To join the conference, submit inquiries to Ms. Yvette Springer at Yvette.Springer@bis.doc.gov no later than July 23, 2019.
 
A limited number of seats will be available during the public session of the meeting. Reservations are not accepted. To the extent that time permits, members of the public may present oral statements to the Committee. The public may submit written statements at any time before or after the meeting. However, to facilitate distribution of public presentation materials to the Committee members, the Committee suggests that the materials be forwarded before the meeting to Ms. Springer.
 
For more information contact Yvette Springer on +1 202 482 2813.
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OGSOTHER GOVERNMENT SOURCES

OGS_a13. Items Scheduled for Publication in Future Federal Register Editions
(Source: Federal Register, 24 June 2019.)

* State; NOTICES; Designation as a Foreign Terrorist Organization: Balochistan Liberation Army, Husain Ali Hazzima, aka Hussein Ali Hazime, aka Mourtada, and Jundallah (and other aliases)
[Pub. Date: 2 July 2019.]

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OGS_a24
. Commerce/BIS: (No new postings.)
(Source: Commerce/BIS) 
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OGS_a35
.
CBP Publishes Guidance on the Exclusion of Particular Products from Section 201

(Source: CSMS #19-000334, 28 June 2019.) [Excerpts.]
 
The product exclusion announced in this guidance will apply as of June 13, 2019.
 
Background
 
On January 23, 2018, the President issued Presidential Proclamation 9693 and Presidential Proclamation 9694 imposing tariff rate quotas and increased duties on imports of solar cells and panels, and washing machines and parts, effective February 7, 2018.
 
This action was taken after the respective U.S industries filed petitions under Section 201 of the Trade Act of 1974 with the U.S. International Trade Commission (ITC), and the ITC found that these U.S. industries were injured by imported goods. These measures have a duration of four years for solar cells and panels, and three years for washing machines and parts. These measures cover imports from all countries, except certain developing countries. Canada is also excluded from the washing machines/parts measures. See Federal Register 83 FR 3541 and 83 FR 3553.
 
On September 19, 2018, The Trade Representative granted certain product exclusion requests with a determination in the Federal Register Notice (83 FR 47393).
 
As the result of an evaluation of the factors set out in the February 14 notice (83 FR 47393), the Trade Representative has determined to grant the product exclusions set out in the Annex to this notice.
 
Guidance
 
On June 13, 2019 the USTR published Federal Register Notice 84 FR 27684 announcing the exclusion of certain solar products. The Section 201 Harmonized Tariff Schedule classification 9903.45.25 will no longer need to be filed with imports of goods described in subdivisions (15), (16), and (17) of Note 18, Subchapter III, Chapter 99, of the Harmonized Tariff Schedule of the United States.
 
ANNEX to 84 FR 27684 …

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OGS_a46.
Justice: “California Man Charged with Illegally Exporting Cesium Atomic Clocks to Hong Kong”
(Source: Justice, 27 June 2019.)
 
A California man was arrested and charged in an indictment unsealed today in federal court in Boston with illegally exporting cesium atomic clocks to Hong Kong.
 
Alex Yun Cheong Yue, 67, of South El Monte, Calif., was indicted on one count of conspiracy to commit export violations, two counts of unlawful exports and attempted exports of U.S. goods to Hong Kong, and one count of smuggling. Yue will appear this afternoon in federal court in Los Angeles. Wai Kay Victor Zee, 56, of Hong Kong, along with his company, Premium Tech Systems, Limited were also charged. The two defendants remain at large in Hong Kong Special Administrative Region of the People’s Republic of China.
 
According to the charging document, beginning in December 2015, Yue, Zee, and Premium Tech conspired to procure U.S.-origin cesium atomic clocks and export them to Hong Kong without obtaining the required export licenses. Cesium atomic clocks are used in global positioning system solutions, network timing protocols, encryption programs, and national defense and space applications. They are controlled for export by the U.S. Department of Commerce for national security and anti-terrorism reasons.
 
To obtain the atomic clocks, Yue allegedly used a fictitious company, “Ecycle Tech International Ltd.,” to purchase them by falsely representing to the U.S. seller that the atomic clocks would be used solely in the United States for cordless phone research and development. Based on Yue’s false representations, the U.S. seller sold the cesium atomic clocks to Ecycle. On Feb. 19, 2016, the atomic clocks shipped from the manufacturing facility in Beverly, Mass., to Yue in California. Three days later, on Feb. 22, 2016, Yue reshipped the controlled cesium atomic clocks to Zee at Premium Tech in Hong Kong. Neither Yue, Zee, nor Premium Tech ever applied for or obtained the required export licenses from the U.S. Department of Commerce. On Feb. 24, 2016, Zee confirmed receipt of the cesium atomic clocks in Hong Kong.
 
In December 2017, Yue allegedly attempted to purchase an additional cesium atomic clock. Prior to the sale, however, the U.S. seller required Yue to provide an end-user statement detailing where and for what the clocks would be used. In April 2018, Yue sent an end-user certificate on Ecycle letterhead stating that the atomic clocks would be used in a calibration lab in California. It is alleged that in response to further inquiries from the U.S. seller, Yue falsely declared that he was not intending to export the cesium atomic clocks. When the U.S. seller insisted on a site visit to the California location where the atomic clocks would be utilized, Yue abruptly canceled the order. On July 13, 2018, Yue received a refund payment from the U.S. seller. Three days later, on July 16, 2018, Yue sent a wire transfer to Premium Tech’s bank account in Hong Kong with the refunded money.
 
The charge of conspiring to commit export violations and unlawfully exporting and attempting to export U.S. goods provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $1 million. The charge of smuggling goods from the United States provides for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.  …

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OGS_a68.
Treasury/OFAC Publishes Reminder for the Annual Report of Blocked Property  
 

(Source: Treasury/OFAC, 1 July 2019.)
 
31 C.F.R. § 501.603 requires holders of blocked property to provide the Office of Foreign Assets Control (OFAC) with a comprehensive list of all blocked property held as of June 30 of the current year by September 30. Persons that do not hold blocked property as of June 30 do not need to file an Annual Report of Blocked Property (ARBP). Please note that the term blocked property only applies to property that is blocked pursuant to OFAC regulations. Property that was unblocked by an OFAC general or specific license or was previously blocked pursuant to a sanctions program that was terminated on or before June 30, 2019, is not considered blocked property, and should not be reported in the ARBP. Similarly, a restricted account of a person ordinarily resident in Iran is not blocked, and should not be reported to OFAC in the ARBP, unless there is an interest in the account of a person whose property and interests in property are blocked pursuant to an applicable sanctions authority.
 
The annual reports must be filed using the new spreadsheet form TD-F 90-22.50, Annual Report of Blocked Property. Completed forms should be sent to ofacreport@treasury.gov. Failure to submit a required ARBP by September 30 constitutes a violation of 31 C.F.R. Part 501 (“Reporting, Procedures and Penalties Regulations”). Click here to view OFAC’s Guidance on Filing the Annual Report of Blocked Property for additional guidance.
 
For more information on this specific action, please visit this page.

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OGS_a79.
UK ECJU Amends Export Control Order 2008 and Control List

(Source: UK ECJU, 30 June 2019.)
 
The Export Control Joint Unit (ECJU) has amended the Export Control Order 2008.
 
Changes have been made to:
  – main order Article 2(1) (interpretation)
  – article 36 (offences relating to prohibitions and restrictions in the torture regulation)
  – schedule 2 (military goods, software and technology)
  – schedule 4 (countries and destinations subject to stricter export or trade controls)
 
The new order, The Export Control (Amendment) Order 2019 (SI 2019 No.989) comes into force on 30 June 2019. In particular, the order implements Directive (EU) 2019/514, making changes to the list of defence-related products corresponding to changes made to the European Common Military List (CML) that was previously updated following changes agreed in the Wassenaar Arrangement (an international export control regime). See details of wider changes provided below.
 
The complete list of changes relating to the transposition of Directive (EU) 2019/514 can be found in the transposition note published with the order.
 
Changes to the main order:
 
  – references to Council Regulation (EC) No 1236/2005 have been replaced with references to Regulation (EU) 2019/125, which codifies and replaces that Regulation
  – amendments to Article 36 and 36A to ensure offences relating to prohibitions and restrictions accurately cross-refer to the relevant provisions in Regulation 2019/125
 
Changes to schedule 2 (see transposition note for details):
  – changes to ML1, ML8, ML10, ML13, ML17 and ML20
  – change to the definition of “required”
Changes to schedule 4:
  
– an amendment to remove Eritrea from the list of countries at Part 2 Schedule 4, which lists countries and destinations embargoed and subject to transit control for military goods
  
– The Export Control (Eritrea and Miscellaneous Amendments) Order 2011 (SI 2011/1296) is revoked to the extent that it made provision for offences to enforce the sanctions measures set out in Council Regulation (EU) No. 667/2010 – this is in line with the lifting of sanctions against Eritrea by the United Nations and the European Union
 

ECJU has updated the Consolidated control list of strategic military and dual-use items that require export authorisation 

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OGS_a810.
UK OFSI Updates Guidance on Russia Sanctions

(Source: UK OFSI, 1 July 2019.)
 
The UK Office of Financial Sanctions Implementation (OFSI) has published the following update on its website:
 
Who is subject to financial sanctions in the UK?
 
A guide to the current consolidated list of asset freeze targets, and a list of persons subject to restrictive measures in view of Russia’s actions destabilising the situation in the Ukraine.
 
Documents
 
HTML
 
PDF, 158KB, 3 pages
 
HTML
  

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OGS_a911.
Japan METI Updates Licensing Policies and Procedures on Exports of Controlled Items to The Republic of Korea

(Source: METI, 1 July 2019.)
 
In order to ensure appropriate implementation of export control and regulation based on Article 25(1) and Article 48(1) of the Foreign Exchange and Foreign Trade Act, the Ministry of Economy, Trade and Industry (METI) will apply updated licensing policies and procedures on the export and transfer of controlled items and their relevant technologies to the Republic of Korea (ROK).
 
METI applies specific licensing policies and procedures for implementing its export control and regulation on a country-by-country basis, considering how a specific country implements its export control and regulation. In most cases, METI has developed these policies and procedures through reliable relationships based on trust and close communication with the specific country and its export control authority.
 
Through careful consideration among the relevant ministries in Japan, the Government of Japan cannot help but state that the Japan-ROK relationship of trust including in the field of export control and regulation has been significantly undermined. Considering that certain issues in ROK’s export control and regulation can only be addressed under a relationship of utmost trust, METI has concluded that it must change the current implementation practices such as licensing policies and procedures for export or transfer of controlled items and their relevant technologies to the ROK in order to ensure appropriate implementation of Japan’s own export control and regulation. In addition, as METI has recently found that certain sensitive items have been exported to the ROK with inadequate management by companies, METI will apply more stringent procedures over certain controlled items and their relevant technologies.
 
1. Removal of the Republic of Korea from “White Countries”
 
On July 1, METI will begin the public comments process for the amendment of the Cabinet Order removing the Republic of Korea from the Appended Table III (so called “white countries”) of the Export Trade Control Order.
 
 
2. Individual export licenses for certain items and their relevant technologies
 
From July 4, exporters shall apply for an individual export license for export of Fluorinated polyimide, Resist, and Hydrogen Fluoride, and their relevant technologies, which may include technology transferred with exports of manufacturing equipment to the Republic of Korea, as the relevant bulk licenses for those three items will no longer be applicable.
 

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NWSNEWS

NWS_a112
.
AMN: “Former Art Student Pleads Guilty to Illegal $6.8 Million Arms Deal with Nigeria”

(Source: American Military News, 30 June 2019.) [Excerpts.]
 
Ara Dolarian Jr., the Fresno, CA, man who went from art student to arms dealer, pleaded guilty in federal court Thursday to one count of conspiracy to violate the Arms Export Control Act.
 
Dolarian, 58, faces a maximum of five years in prison and a $250,000 fine. He awaits sentencing. He 
was arrested by federal agents in May for allegedly trying to broker an illegal arms deal in 2013 and 2014 with the Nigerian government.
 
Court documents show Dolarian, through his company Dolarian Capital Inc., was trying to sell high-explosive bombs, rockets, military-grade firearms and aircraft-mounted cannons from Eastern Europe and South Africa without approval from the U.S. State Department. …

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NWS_a213
.
Business Insider: “5,300 Illegal Firearms and 167 Explosives Were Just Seized in a Massive Bust in Florida”

(Source: Business Insider, 28 June 2019.) [Excerpts.]
 
A massive international weapons trafficking operation has resulted in the seizure of 5,300 firearms and 167 explosives, federal authorities announced on Friday. Investigators also arrested 25 people and issued 53 search warrants across the United States, Argentina, and Brazil.
 
The massive sting, called “Operation Patagonia Express,” stymied Florida arms traffickers who have brought in millions on the black market by supplying criminal gangs in South America with weapons. The weapons that were confiscated included AR-15 rifles, handguns, grenades, and military-grade aircraft and tank weaponry, officials said during a news conference, according to the Miami Herald. …
 
The weapons were purchased at licensed firearm shops or gun shows in Florida where criminal background checks weren’t thoroughly enforced, and then sent abroad illegally through the US Postal Service, according to the Herald.

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NWS_a314
.
Deutsche Welle: “Japan Restricts Chip Smartphone Materials Exports to South Korea”
(Source: Deutsche Welle, 1 July 2019.) [Excerpts.]
 
Companies like Samsung will likely be affected by the new export controls, which followed a series of court rulings demanding that Japan pay compensation to victims of forced labor during WWII.
 
Japan announced on Monday that it would tighten restrictions on exports of high-tech materials used in smartphone displays and chips to South Korea.
 
The country’s Ministry of Economy, Trade and Industry (METI) said the tighter exports controls would go into effect on July 4.
 
They will affect materials such as fluorinated polyimide, resist, and hydrogen fluoride, as well as the transfer of manufacturing technologies, by removing them from a list that allowed expedited export. …

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NWS_a415
.
JS: “Wisconsin Gun Manufacturer Shipped Unmarked Rifles, Pistols to Australian Arms Dealer Illegally”
(Source: Milwaukee Journal Sentinel, 30 June 2019.) [Excerpts.]
 
Wisconsin man has agreed to plead guilty in a scheme to ship illegal guns to an Australian weapons dealer using a crate with a false floor to skirt customs officials.
 
Andy Lloyd Huebschmann of New Holstein pleaded guilty in federal court filings Friday to sending the Australian dealer pistols, rifles and rifle parts to convert semi-automatic guns into fully automatic weapons.
 

Huebschmann owns Germantown-based Thureon Defense LLC and is licensed to manufacture and deal guns, according to the plea agreement. He met Paul Munro of Australia at a Las Vegas gun trade show about seven years ago and Munro persuaded him to ship him Thureon guns under the radar. …

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NWS_a516
.
The Washington Post: “Two Charged in Massive International Arms Smuggling Scheme”
(Source: The Washington Post, 28 June 2019.) [Excerpts.]
 
Two people have been charged in Florida with orchestrating a massive arms smuggling scheme involving thousands of weapons and parts sent to South America, federal officials said Friday.
 
Homeland Security Investigations officials said at a news conference that authorities seized 5,300 firearms and components, many of them powerful AR-15 rifles. More than two dozen people have been arrested in Argentina, Brazil and the U.S.
 
Matthew Albence, deputy director of U.S. Immigration and Customs Enforcement, said the weapons were mailed in pieces using false labeling from the U.S. to South America and assembled there. The weapons parts were shipped through the U.S. Post Office and other delivery services. …

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COMMCOMMENTARY

COM_a117.
R. Wiese: “Where Did I Come From – Trade Compliance and Country of Origin Claims”

(Source: LinkedIn, 1 July 2019.) [Excerpts.]
 
* Author: Russell Wiese, Esq., Hunt & Hunt Lawyers, +61 3 8602 9231, rwiese@huntvic.com.au.
 
Every import and export declaration requires the importer/exporter to nominate the country of origin of the exported good. While sometimes this information may only be for statistical purposes, it can also determine the duty rate and in some cases, whether or not an import or export is prohibited. Despite the importance of the origin of the goods, there is no easy or uniform test to guide traders, and their services providers, in making origin claims.
 
When to make an origin claim
 
When is an origin claim required
 
Part of the difficulty with assessing origin results from the different reasons that a claim as to origin is required. An origin claim may be required for import purposes to assess security and biosecurity risks. An origin claim may also be tied to customs or dumping duty rates. For this reasons, whenever a good is being imported or exported, an origin claim is required on the import declaration.
 
Origin claims may also be required to be made on the actual good or their packaging. The Commerce (Trade Descriptions) Act 1905 (Commerce Act) and associated regulations sets out which goods must contain a country of origin marking.
 
Goods that require an origin marking include food, electrical products, textiles, toys, china or porcelain kitchenware, most goods clad in leather, fibre, vulcanite or plastic and anything that is imported in a pre-packaged form.
 
Voluntary claims
 
Goods produced in Australia and some imported goods will not require an origin claim. Of course, this does not prevent a producer or retailer from making a voluntary origin claim. Voluntary claims will sometimes go beyond the basic “made in” claim, to make claims about particular regions or the quality of the ingredients. For instance, “Made in Normandy from the finest French ingredients”.
 
The key rule regarding voluntary claims is that they must not be misleading or deceptive (see below).
 
Risks of not making a claim or making a false claim
 
False claims
 
Regardless of whether an origin claim is made in an import declaration, on packaging, a website or in advertising it must be accurate. In respect of Customs documents, section 243U of the Customs Act 1901 (Customs Act) imposes penalties for the making of false statements to the Australian Border Force (ABF) , regardless of whether the statement has a customs duty impact. Section 243T of the Customs Act will apply where the false statement results in an underpayment of duty.
 
The Commerce Act makes it an offence to import or export goods that bear a false trade description. An example would be importing Chinese made ugg boots that falsely carry the claim “Australian Made”.
 
The penalties are serious. In addition to fines, the ABF can seize goods that either don’t have the required trade description or contain a false trade description. The legislation does allow the ABF to permit re-labelling if it considered the non-compliance was accidental. However, even if this is permitted, re-labelling in Australia is likely to be very expensive and in some cases, not commercially viable.
 
Other risks of making a false origin claim
 
Whether it is an imported or Australian sourced good, false claims as to origin may be deemed to be false or misleading conduct under the Australian Consumer Law. The Australian Competition and Consumer Commission (ACCC) is very aggressive in imposing penalties in respect of false or misleading claims.
 
Other unexpected outcomes include:
 
– the importation of a prohibited import. Examples are military goods from many countries including Russia and textiles and seafood from North Korea. Given both Russia and North Korea share a border with China, it is important to be aware of this risk when importing goods from China,
 
– under illegal logging laws the due diligence requirements can be met in different ways for countries with a country specific guideline. However, if origin is incorrectly assessed, the risk of importing illegally log timbers or related products will greatly increase;
 
– treatment may be required for biosecurity purposes that would not have been required if the claimed origin was correct. This treatment may ruin the commercial purpose of the goods or at the very least, be costly and slow the supply chain;
 
– the application of prohibitive dumping duties.
 
How to determine origin
 
The origin of the goods is required for a variety of purposes. Unfortunately, the origin test for one purpose may not be a good guide as to whether an origin claim is satisfied for another purpose.
 
The low hanging fruit that was grown in Australia
 
Let’s start with the easiest products, the low hanging fruit. Origin is easy to determine for goods that are grown, extracted from or produced in a particular country from 100% originating goods. For instance, fruit and vegetable will almost always originate from the country in which the product was grown.
 
There are always exceptions, for example, is a chicken hatched in Australia an Australian originating bird if the egg was laid in New Zealand. Leaving aside jet setting eggs, most issues only arise in respect of manufactured goods that are not made exclusively from products from a particular country. Of course, with today’s modern supply chains, most manufactured goods contain imports from more than one country.
 
Free trade agreements
 
Trade is usually associated with a business, and an issue is bound to become important to a business once it has a monetary impact. The country of origin of the goods is likely to get the attention of your client if they understand that origin may be the difference between 5% customs duty or duty free entry under a free trade agreement (FTA). This duty impact may be much greater for exports from Australia.
 
Each free trade agreement has rules for determining which goods will be counted as originating in Australia or the other countries the subject of the FTA. Under FTAs the common rules are based on the value of the finished good attributable to the FTA countries or a change in tariff classification rule, which compares the tariff classification of the imported components to the tariff classification of the finished goods.
 
However, this is where the generalities end. In respect of value content rules you see variances around the minimum level of local content required, whether any particular goods are excluded from the assessment and whether the you are assessing a percentage of the cost of materials or the FOB value of the goods.
 
In respect of the change in tariff classification rule the variances tend to be around the level of change required and whether any particular changes are excluded. For instances, some FTAs will allow Australian originating wine to be made from imported grapes whereas the agreement with Japan specifically prevents wine qualifying where the grapes are imported.
 
As FTAs have a policy goal of liberating trade between two countries, they are usually not a good general guide as to making origin claims for other purposes (not even for the purpose of other FTAs).
 
Safe harbours for the purpose of the ACCC and the Commerce Act
 
The Australian Consumer Law sets out certain safe harbours that if satisfied, constitute a defence to any claim that a false or misleading claim as to origin has been made or an incorrect claim as to origin under the Commerce Act. For a “made in” claim, the safe harbour will be satisfied where a good underwent its last substantial transformation in a country. Goods are substantially transformed in a country if the goods are grown in or produced in that country, or if as a result of processing in that country, the goods are fundamentally different in identity, nature or essential character from all of their imported ingredients or components.
 
This might sound like a relatively easy test to satisfy, but the reality is more difficult. The test does not merely require a change, but rather a “fundamental difference”. This was demonstrated recently in a Federal Court case concerning fish oil and vitamin D capsules. The manufacturer made claims that the capsules were made in Australia in circumstances where the fish oil, vitamin D and gel to make the capsules was imported. In Australia, the gel was processed to produce the capsule substance. The fish oil and vitamin D then underwent a process of being encapsulated. The fish oil and vitamin would realistically only be ingested if place in a capsule, or made palatable in some other way.
 
The Court held that while the imported gel underwent a substantial transformation, the fish oil and vitamin D was not different in substance from their imported form. The Court reasoned that what was imported was fish oil and vitamin D and what was sold in Australian was fish oil and vitamin D in capsules.
 
In applying the test, the Court noted how difficult it was to apply a test that compared imported components to an assembled or processed end product.
 
It can be expected that if a product is marketed by reference to a key component (such as fish oil) that actual component must be made in the country the subject of the origin claim.
 
Steps to take
 
False origin claims on imported and exported goods represent a significant risk for both traders and customs brokers. The potential risks justify a level of due diligence. What information are you basing the origin claim on? The country of export may be a starting point, but it is not sufficient to justify an origin claim. This will particularly be the case for goods where origin has a significant duty or security impact. In these circumstances, transhipment of goods with the intention to hide the true origin should be anticipated.
 
For major suppliers, the Australian importer should be organising an inspection of the manufacturing facility. Where the size and risk of the order does not justify a factory visit, it is still recommended that you obtain assurance (preferably contractual warranties) from the supplier as to the country of origin of the goods.
 
Each product, country and supply chain will present its own challenges. The first step is to be aware of the risks and start inquiries as to origin. It is not sufficient to turn a blind eye to this issue and hope that it does not become a compliance focus for the ABF. The ABF’s sudden and strict enforcement of asbestos laws demonstrated past non-enforcement of the law is no justification for importer non-compliance with the law.

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

COM_a2
18
.
T. Murphy: “Section 301 – A Temporary Trade Truce”

(Source: Author, 1 July 2019.)
 
Usually forwarded by JEB. Use email subject as item title.
 
* Author: Ted Murhpy, Esq., Baker & Mckenzie. Contact Ted at:
 
Dear Friends,
 
As you have likely seen by now, President Trump announced on Saturday that, following his meeting with President Xi, an agreement had been reached to restart negotiations to resolve the issues underlying the Section 301 investigation. As part of that agreement, the United States would not impose additional duties on Chinese-origin product (i.e., suspend the List 4 process), and China would start “buying a tremendous amount of food and agricultural product” (he also said “We’re going to give them lists of things that we’d like them to buy.”). President Trump also said that U.S. companies would be allowed to keep selling product to Huawei for the time being (with details to be determined).
 
The good news is that the two sides will resume negotiations. The bad news is that meaningful differences remain and negotiations to resolve these issues will not be quick or easy. Also, no timeline was announced for starting (or concluding) the negotiations (either by the president, or by the White House or by the USTR later in the weekend or so far today), which makes this seem more like an agreement to start talking at some point in the future, than an agreement to agree.  
 
As a result, we believe that companies should plan on the dispute (and additional tariffs) remaining in place for the foreseeable future. Companies impacted by the List 3 tariffs should continue to prepare and file their product exclusion petitions (the process opened yesterday). Companies impacted by List 4 should be taking advantage of this delay in the imposition of additional duties to further alternative sourcing plans (e.g., modifying your supply chains, accelerating imports, etc.). …

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

(Source: Ramco Systems, 25 June 2019.) [Excerpts.]

 
* Author: Saravanan Rajarajan, Associate Director – Aviation SBU, Ramco Systems, contact@ramco.com.
 
For something as crucial as defense-related parts movement across the globe, it is inevitable that every aspect of it is run through a fine-tooth comb to doubly ensure the parts do not end up in unauthorized hands or for unauthorized purposes.
 
Working in this area, International Traffic in Arms Regulations (ITAR) monitors the export and import of defense-related articles and services on the United States Munitions List (USML). USML is a list which comprises articles, services and technology that have been categorized as something specific to defense and space-related by the United States federal government. The U.S. government has made it mandatory that all manufacturers, exporters, and brokers of defense articles, defense services, or related technical data must be ITAR compliant.
 
ITAR compliance in the Aviation Supply Chain can be quite a taxing job. The reason? Some parts used in the defense segment are also used in commercial aviation, and it becomes tricky to categorize them according to its use in each of the segment. Also, the high frequency and volume of movements across the globe makes it challenging to track it at every level.
 
Aviation ERP systems, comprising of advanced defense software modules, can be of great help when it comes to enabling ITAR compliance by addressing the following 6 key requirements. …

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


MSEX/IM MOVERS & SHAKERS

MS_a120. Monday List of Ex/Im Job Openings: 136 Openings Posted This Week, Including 20 New Openings 

(Source: Events & Jobs Editor) 
 

Published every Monday or first business day of the week. Please, send job openings in the following format to 
jobs@fullcirclecompliance.eu
.
 
* COMPANY; LOCATION; POSITION TITLE (WEBLINK); CONTACT INFORMATION; REQUISITION ID
 

#
” New or amended listing this week
 
* Abbott; Orlando, FL;
Senior Compliance Analyst 
* Accenture; Buenos Aires, Argentina;
Contract Analyst – Trade Compliance 
* Agility; Basel, Switzerland;
Zolldeklarant/in Export
*
Agility; Houston, TX;
Ocean Export Team Leader  

* Airbus; Toulouse, France; Export Control Manager (m/f); Requisition ID: 10435666 CP EN EXT 1

* AM General; Auburn Hills, MI; International Compliance Analyst 

* AMAG Pharmaceuticals; Waltham, MA;
Associate, Logistics & Trade Compliance
; Requisition ID: 1386

* AMAG Pharmaceuticals; Waltham, MA; Compliance Specialist; Requisition ID: 1397

* American Showa, Inc.; Columbus, OH;
Trade Compliance Specialist
; LoAnn Burt, 
lburt@amshowa.com   
#
* Arris; Suwanee, GA; Mgr. Trade Compliance; Requisition ID: 19000992

* Arrowhead Products; Los Alamitos, CA; Trade Compliance Specialist

* Ascend Materials; Houston, TX; Principal International Trade Compliance Specialist; Requisition ID: R0000954 
* ASML; San Diego, CA; 
Customs & Export Control Classification Specialist
;
 
Requisition ID: req9558
* Belk; Charlotte, NC;
Sr Manager – Global Trade & Customs Compliance
;
Skyler Evans
; Requisition ID: JR-20062

* BlackRock; Gurgaon, India; Analyst – Regulatory Reporting & Compliance
* BlackRock Institutional Trust Company; San Francisco, CA; Chief Compliance Officer; Requisition ID: R184478

* Bose; Framingham, MA; Senior Customs & Trade Compliance Lead; Requisition ID: R12731

* Cargill; Schiphol, the Netherlands; Regional Trade Compliance Manager; Requisition ID: SCH02604

#
* CIRCOR International; Burlington, MA; Director Trade Compliance

* Cisco Systems, Inc.; Charlotte, NC;
Trade Compliance Manager
; Requisition ID: 1261937
* Cisco Systems, Inc.; San Jose, CA or Research Triangle Park, NC; Customs Project Manager / Business Analyst; Requisition ID: 1263171
* Cloudflare; Austin, TX, San Francisco, CA, Washington D.C.; International Trade Compliance Manager 

* Cobham Advanced Electronic Solutions; Hauppauge, NY or Plainview, NY; Export Compliance Administrator; Requisition ID: req2484

#
* CommScope; Suzhou, China; Specialist, Import & Export

* Cruise; San Francisco, CA; Program Manager – Trade and Compliance; sherry.horowitz@getcruise.com; Requisition ID: 1276

* Danaher – Beckman Coulter; Brea, CA:
Global Export Compliance Manager
; Requisition ID:
BEC014282

* Danaher – Leica Microsystems; Wetzlar, Germany; Chief Compliance Officer; Requisition ID: LEI004530
* DHL; Hong Kong, China;
Regional Compliance Officer, APEC
; Requisition ID: req78306

* Elbit Systems of America; Merrimack, NH; Audit and Compliance Specialist; Requisition ID: 2019-7095

* Emerson; Costa Rica; Trade Compliance Analyst I

* Engenium; Orlando, FL;
Import/Export Compliance Specialist 

* ePlus; Herndon, VA; Senior Manager Trade Compliance; Requisition ID: SENIOo2880

* Expeditors; Bedfont, United Kingdom;
Customs Brokerage Clerk 
* Expeditors; Romulus, MI; US Export Compliance Consultant

# * Expeditors; Rozenburg, the Netherlands; Import en Export control medewerker 
* Flexport; Amsterdam, the Netherlands;
Regional Compliance Manager 

# * FLIR; Arlington, VA; Director, Global Export Compliance Americas; Requisition ID: REQ12624 
* FLIR; Arlington, VA; Global Trade Compliance (GTC) Program Manager; Requisition ID: REQ12249

#
* FLIR; Billerica, MA; Global Trace Compliance – Site Trade Compliance Operations Leader; Requisition ID: REQ11588
#
* FLIR; Elkridge, MD and Nashua, NH; Import/Export Analyst, Global Trade Compliance; Requisition ID: REQ12529
#
* FLIR; Hong Kong, Shanghai, China, Singapore; Director, Global Export Compliance Asia Pacific; Requisition ID: REQ12630
#
* FLIR; Täby, Sweden; Director, Global Export Compliance EMEA; Requisition ID: REQ12627

* General Atomics; San Diego, CA;
Government Compliance Specialist
; Requisition ID: 23607BR
* General Atomics; San Diego, CA;
Government Regulatory Compliance Specialist
; Requisition ID: 23576BR

#
* Grass Valley; Newbury, United Kingdom; Logistics and Trade Compliance Manager; Requisition ID: 1094

* Gulfstream Aerospace; Savannah, GA; Global Risk & Compliance Manager; Requisition ID: 144738

* Harris Corporation; Van Nuys, CA; Trade Compliance Senior Specialist; Ramone Mellis; Requisition ID: ES20192103-30606

* Henderson Group Unlimited, Inc; State Dept, DDTC; Washington, DC; 
Commodities Jurisdiction Analyst
 
* Henkel; Rocky Hill, CT;
Global Trade Manager
; Requisition ID: 190001EB
* Hitachi Vantara; Singapore;
Trade Compliance Analyst
; Requisition ID: 1003050 (026187)
* Honeywell; Paris, France;
Export Compliance Lead
; Requisition ID: HRD60078
* Huntington Ingalls Industries; Centreville, VA;
Import Export Administrator
; Requisition ID: 2019-1943
* Hypertherm; Hanover, NH;
Export & Trade Compliance Manager
; Requisition ID: R41

#
* Illumina; Great Abington, United Kingdom; Compliance Specialist; Requisition ID: 18249-JOB
#
* Illumina; San Diego, CA; Compliance Manager; Requisition ID: 18197-JOB

#
* Illumina; Woodlands, Singapore;
Staff Trade Compliance Analyst
; Requisition ID: 16691-JOB

*
Infineon Technologies, El Segundo, CA;
Senior Export Compliance Specialist
; Requisition ID: 31215;
* Integra LifeSciences; Plainsboro, NJ;
Import/Export Compliance Specialist
; Requisition ID: 2019-29346
* Integrated DNA Technologies; Coralville, IA; Global Trade Compliance Manager; Requisition ID: 2019-4688

* Itron; Austin, TX;
Compliance & Regulatory Counsel
; Requisition ID: 1900030
* Izpal Corporation; Bangkok, Thailand; Assistant Import/Export Manager
* Johnson Controls; Milwaukee, WI;
Director, Global Trade Compliance
; Requisition ID: WD30055791295;
* Kelley Drye & Warren LLP; Washington DC;
Junior Export Controls/Sanctions Associate 
* Koch Chem Tech; Tulsa, OK;
Import/Export Compliance Specialist
; Requisition ID: 052017
* KPMG; Chicago, IL or New York, NY or Washington D.C.;
Export and Sanctions Compliance Manager
; Requisition ID: 41146
* Kubota; Grapevine, TX;
Manager, Import & Export Compliance
; Requisition ID: 228
* Leidos; Columbia, MD;
International Trade Manager / Export Compliance
; Requisition ID: R-00005745;
* Lenovo; Bratislava, Slovakia; Customs Trade Compliance Specialist; Requisition ID: 73198
* Lenovo; Guandong, China; AP Trade Compliance Specialist; Requisition ID: 73183
* Leonardo DRS; Arlington, VA;
Trade Compliance Import Manager
; Requisition ID: 93515
*
Leonardo DRS; Melbourne, FL;
Senior Supply Chain Analyst – Small Business Compliance
; Requisition ID: 91669
* Leonardo DRS; St Louis, MO;
Export/Trade Compliance Specialist

brandy.mormino@drs.com
; Requisition ID: 94325
* Lockheed Martin; Arlington, VA; Global Trade Compliance Analyst 
* Lockheed Martin; Arlington, VA;
 
International Licensing Analyst Staff
; Requisition ID: 480803BR

#
* Lockheed Martin Aeronautics; Palmdale, CA;
Export Compliance Site Lead
; Requisition ID: 488546BR

* Lockheed Martin Rotary and Mission Systems; Liverpool, NY, Moorestown, NJ, Owego, NY, Stratford, CT;
Intl Licensing Analyst Stf
; Requisition ID: 483502BR

#
* Lufthansa; Jamaica, NY; Export Compliance Officer (M/F)

* Lutron Electronics Co; Lehigh Valley, PA;
Trade Compliance Coordinator
; Requisition ID: 4025;
* ManTech; Hanover, MD; Process & Training – ITAR Specialist; Requisition ID: R00435
* Meggitt; Rockmart, GA;
Trade Compliance Coordinator
; Requisition ID: 37846

#
* Mercury Systems; Andover, MA; Corporate and Compliance Counsel; Requisition ID: 19-419

* Micron Technology; Xi’an, China; Logistics Import/Export Specialist I; Requisition ID: 135498

* Microsoft; Redmond, WA;
Export Control Manager
; Requisition ID: 609856

* Morson Group; Glasgow, UK; Export Control Officer Investigations

#
* National Aeronautics and Space Administration; Huntsville, AL; Export Control Specialist; Requisition ID: 109371

* NCR Corporation; Atlanta, GA; Export Compliance Analyst; Requisition ID: R0083245


* Netflix; Los Angeles, CA;
Specialist, Trade Compliance
 


* Northrop Grumman, Falls Church, VA, Int’l Trade Compliance Analyst 4, Requisition ID: 19010228

* Northrop Grumman; Falls Church, VA; USG International Policy Manager; Requisition ID: 19015251 
* Northrop Grumman; Redondo Beach, CA, San Diego, CA or Melbourne, FL; 
Sr. International Trade Compliance Analyst
; Requisition ID: 19013440
* Northrop Grumman Innovation Systems; Dulles, VA;
Sr. Principal International Trade Compliance Analyst
; Requisition ID: 19015953
* Philips; Best, the Netherlands;
Head of Trade Compliance
; Requisition ID: 308818
* Pinpoint Pharma; Lincolnshire, IL;
Export Compliance Specialist
; Requisition ID: 351

* PolyOne, Avon Lake, OH; Trade Compliance Analyst 

#
* Plexus Corp.; Neenah, WI; Global Trade Compliance Manager; Jillian Schooley; Requisition ID: R001823
#
* Plexus Corp.; Neenah, WI; Trade Compliance Analyst Sr.; Jillian Schooley; Requisition ID: R001823 

* Qorvo; Richardson, TX;
Import/Export Analyst
; Requisition ID: 0008593
* Qualcomm; Bangalore, India;
Export Compliance Specialist
; Requisition ID: N1969832

* Raytheon, Cambridge, MA; Manager – Global Trade Licensing; Requisition ID: 142549BR
* Raytheon, Cambridge, MA; Principal Global Trade Licensing Analyst; Requisition ID: 139430BR
* Raytheon, Cambridge, MA; Sr Global Trade Licensing Analyst; Requisition ID: 139427BR

* Raytheon; El Segundo, CA;
Import Ctl&Compliance Advisor
; Requisition ID:136269BR

* Raytheon, McKinney, TX; Global Trade Licensing Analyst I; Requisition ID: 138819BR

* Raytheon; Tuscon, AZ; Empowered Official; Requisition ID: 141725BR

* Raytheon; Tuscon, AZ;
Manager Export-Import Control
; Requisition ID: 134614BR
* Rockwell Automation; Mayfield Heights, OH and Milwaukee, WI;
Senior Analyst, Import/Export Compliance
; Requisition ID: 85004BR
* SABIC; Houston TX; 
Senior Analyst, Trade Compliance
;
Danielle.Cannata@sabic.com
; Requisition ID: 8411BR

* Sandvik; Amsterdam, The Netherlands; Process Support Specialist Trade Compliance And Freight

* Sarepta Therapeutics; Cambridge, MA;
Director, Logistics & Global Trade Compliance  
* Siemens; Munich, Germany; Intern Regulatory Compliance; Requisition ID: 116687

* Siemens; Sacramento, CA;  
Custom Trade & Compliance Professional
; Requisition ID: 244347

* Sierra Nevada Corporation; Arlington, VA; Director, International Trade Compliance; Requisition ID; R0008327

* Sierra Nevada Corporation; Arlington, VA;
International Trade Compliance Analyst II
; Requisition ID: R0007508
* Sierra Nevada Corporation; Arlington, VA;
International Trade Compliance Analyst II
; Requisition ID: R0007996
* Sierra Nevada Corporation; Louisville, CO; International Trade Compliance Analyst Senior; Requisition ID: R0008390 
* SIG SAUER, Inc.; Newington, NH;
Director of Trade Compliance
; Requisition ID: 1114
* Sun Chemical; Cincinnati, OH, Northlake, IL, Parsippany, NJ;
Global Trade Compliance Specialist
; Requisition ID: 2019-2733
* Synopsys Inc.; Remote, U.S.;
Director, Global Trade Compliance
; Requisition ID: 20358BR

* Teledyne Technologies; Chestnut Ridge; Import/Export Compliance Specialist; Requisition ID: 2019-8779
* Teledyne Technologies; Englewood, CO, Lincoln, NE, Omaha, NE; Customs Compliance Manager; Requisition ID: 2018-8144

* Textron Aviation; Wichita, KS;
Trade Compliance Analyst
; Requisition ID: 269127
* Thales; Stuttgart, Germany;
Trade Compliance Spezialist (M/W/D)
; Requisition ID: R0054290
* Thermo Fisher Scientific; Boulder, CO or Atlanta, GA or Boston, MA or Remote, NY; Compliance Specialist III; Requisition ID: 91186BR
* Thermo Fisher Scientific; Franklin, MA; Sr. Trade Compliance Analyst; Requisition ID: 90074BR

* Thermo Fisher Scientific; Fremont, CA; Manager, Global Trade Compliance

* Torres Law, PLLC; Dallas, TX; 
Import/Export Consultant-Legal

info@torrestradelaw.com 
* Uber; Amsterdam, the Netherlands;
Trade Compliance Analyst 
* United Technologies – Collins Aerospace; Cedar Rapids, IA;
Export Licensing Specialist (ITC)
; Requisition ID: 01311691
* United Technologies – Collins Aerospace; Windsor Locks, CT;
Associate Director Trade Compliance
; Requisition ID: 01308017
*
University of California; San Francisco, CA;
Export Control Officer
; Requisition ID: 51010;

#
* Velocity Electronics; Singapore; Trade Compliance Specialist


* Veridos GmbH; München, Germany;
Ausfuhrbeauftragter (Export Control Officer m/w/d
; Requisition ID: 1677
* Viasat; Carlsbad, CA;
Global Trade Analyst
; Requisition ID: 2824
* Vigilant GTS; Remote Position, U.S.;
Global Trade Compliance Account Manager 
* Walt Disney; Kissimmee, FL;
Trade Compliance Analyst (Project Hire)
; Requisition ID: 654599BR
* Wealth Ocean; Newport Beach, CA;
Marketing & International Trade Specialist 
* World Wide Technology; Oude Meer, the Netherlands;
Logistics and Trade Compliance Manager
; Requisition ID: 19-0415
* XPO Logistics; Greenwich, CT;
Compliance Paralegal 
* XPO Logistics; Greenwich, CT;
Director, Trade Compliance Counsel 
  
 
back to top 

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

TEEX/IM TRAINING EVENTS & CONFERENCES

TE_a121. ECS Presents “2nd Annual ECS ITAR/EAR Symposium and Boot Camp” on 17-19 Sep in Annapolis, MD

(Source: ECS)
 
* What: The 2nd Annual ECS ITAR/EAR Symposium and Boot Camp, Annapolis, MD
* When:  September 17-19, 2019
* Where: Chart House
* Sponsor:  Export Compliance Solutions & Consulting (ECS)
* ECS Speaker Panel: Suzanne Palmer, Mal Zerden, Lisa Bencivenga, Timothy Mooney, Matthew McGrath, Matt Doyle
* Register here or by calling 866-238-4018 or email

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

TE_a222. FCC Presents “U.S. Export Controls: The ITAR from a non-U.S. Perspective”, 26 Nov in Bruchem, the Netherlands

 
This intermediate-level training course is specifically designed for compliance professionals and those in a similar role who aim to stay up-to-date with the latest International Traffic in Arms Regulations (ITAR) requirements that apply to non-U.S. transactions.
 
The course will cover multiple topics relevant for organizations outside the U.S. that are subject to the International Traffic in Arms Regulations, including but not limited to: the U.S. regulatory framework, key ITAR concepts and definitions, tips regarding classification and licensing, essential steps to ensure an ITAR compliant shipment, how to handle a (potential) non-compliance issue, recent enforcement trends, and the latest regulatory amendments, including the latest U.S. Export Control Reform developments. Participants will receive a certification upon completion of the training.
 
Details
* What: U.S. Export Controls: The International Traffic in Arms Regulations (ITAR) from a non-U.S. Perspective
* When: Tuesday, 26 Nov 2019
 – Welcome and Registration: 9.00 am – 9.30 am
 – Training hours: 9.30 am – 4.30 pm
* Where: Full Circle Compliance, Landgoed Groenhoven, Dorpsstraat 6, Bruchem, the Netherlands
* Information & Registration: via the
event page or contact FCC at
events@fullcirclecompliance.eu or + 31 (0)23 – 844 – 9046
* This course can be followed in combination with “U.S. Export Controls: The Export Administration Regulations (EAR) from a non-U.S. Perspective” (27 Nov 2019), and/or “The ABC of Foreign Military Sales” (29 Nov 2019). Please, see the event page for our combo deals.

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

ENEDITOR’S NOTES

* Frederic Bastiat (Claude-Frédéric Bastiat; 29 Jun 1801 – 24 Dec 1850; was a French economist, writer and a prominent member of the French Liberal School. As an advocate of classical economics and the economics of Adam Smith, his views favored a free market and influenced the Austrian School.)
 – “Everyone wants to live at the expense of the state. They forget that the state wants to live at the expense of everyone.”
 
George Sand (Amantine Lucile Aurore Dupin; 1 Jul 1804 – 8 Jun 1876; best known by her nom de plume George Sand, was a French novelist, memoirist, and socialist. One of the most popular writers in Europe in her lifetime, being more popular than both Victor Hugo and Honore de Balzac in England in the 1830s and 1840s.)
  – “Simplicity is the most difficult thing to secure in this world; it is the last limit of experience and the last effort of genius.”
 
Monday is pun day:
* Q. How do trees access the internet? A. They log on.
* Q. Why should you never trust a train? A. They have loco motives.
* Q. My wife told me I had to stop acting like a flamingo. So I had to put my foot down.

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

EN_a324
. 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: 27 June 2019:
84 FR 30593-30595: Revisions to the Unverified List 

     

* 
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: 5 June 2019:
84 FR 25992
 
– June 2019 Amendments to the Cuban Assets Control Regulations [amendment of 31 CFR Part 515]
  

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: 26 June 2019: 
Harmonized System Update (HSU) 1912 
  – HTS codes for AES are available 
here.
  – HTS codes that are not valid for AES are available 
here.

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

EN_a0325
Weekly Highlights of the Daily Bugle Top Stories

(Source: Editor) 

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

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

EPEDITORIAL POLICY

* The Ex/Im Daily Update is a publication of FCC Advisory B.V., compiled by: Editor, James E. Bartlett III; and Assistant Editors, Alexander Witt and 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.

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