 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 |
| | | [No items of interest today.]
| | | - Items Scheduled for Publication in Future Federal Register Editions
- Commerce/BIS: (No new postings.)
- DHS/CBP Announces ACE Cargo Release Deployment for 16 July from 5AM to 7AM ET
- State/DDTC Announces Change of DTCC Registration Division Name to the Registration Compliance & Analysis (RCA) Division
| | | - The Economic Times: “India, Russia Seek to Skirt US Sanctions Threat to Arms Deals”
- Reuters: “China to Impose Sanctions on U.S. Firms That Sell Arms to Taiwan”
- ST&R Trade Report: “Canada to Require Electronic Export Reporting in 2020”
- WorldECR: “Ross Links Export Control with US Competitive Advantage”
| | | - A. Rochester & P. Carlyle: “Scotch Whisky Included in Threatened US Tariffs”
- C. B. Monahan & C. N. Stinebower: “Banks Beware: A Second Round of Significant Extraterritorial Sanctions Looms”
- E. Chang, W. Chung & A. N. Phillips: “Vessel Forfeiture Issues for Carriers Involved in U.S. Government Drug Trafficking or Other Criminal Investigations”
| | | - Monday List of Ex/Im Job Openings: 153 Openings Posted This Week; 6 New Openings
| | | - ECTI Presents “Preparing Voluntary Self-Disclosures: Requirements, Best Practices, and Pitfalls to Avoid” on 18 July 2019
- FCC Presents “U.S. Export Controls: ITAR from a non-U.S. Perspective”, 26 Nov in Bruchem, the Netherlands
| | | - Bartlett’s Unfamiliar Quotations
- 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)
- Weekly Highlights of the Daily Bugle Top Stories
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ITEMS FROM TODAY’S FEDERAL REGISTER |
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OTHER GOVERNMENT SOURCES |
1. Items Scheduled for Publication in Future Federal Register Editions * Treasury/OFAC; NOTICES; Blocking or Unblocking of Persons and Properties [Pub. Date: 16 Jul 2019.] * Commerce/BIS; NOTICES; Order Denying Export Privileges: Pouran Aazad, et al. [Pub. Date: 16 Jul 2019.] * * * * * * * * * * * * * * * * * * * * |
2 . Commerce/BIS: (No new postings.) * * * * * * * * * * * * * * * * * * * *
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3 . DHS/CBP Announces ACE Cargo Release Deployment for 16 July from 5AM to 7AM ET There will be an ACE PRODUCTION deployment of ACE Cargo Release on Tuesday morning, July 16, 2019, during the 0500 – 0700 ET window, which will impact ACE Cargo Release and ACE Entry Summary processing. To be deployed: – Bill Type T should only be accepted for AIR MOT. If received for other MOTs, then error message text will be sent “INVALID BILL TYPE FOR MODE OF TRANSPORT”. – When an input SE message had more than 1 duplicate HTS number in a line item, an exception occurred that caused the SX to not get generated. This has been fixed. – An exception error was thrown if a Port of Entry code could not be found while processing an SE message. The application’s Posting Service was updated to retrieve Port of Entry from previous postings, if any. Otherwise, obtain the Port of Entry from the incoming SE message. If still not found, continue processing other records in the message (instead of stopping with a fatal exception error). * * * * * * * * * * * * * * * * * * * *
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4. State/DDTC Announces Change of DTCC Registration Division Name to the Registration Compliance & Analysis (RCA) Division Effective July 15, 2019, the DTCC Registration division’s name will change to the Registration Compliance & Analysis (RCA) division. There is no change to Registration organization structure. All registration letters issued on and after July 15, 2019 will reflect the RCA division name. All active registration letters issued before July 15, 2019, will remain valid and no changes are required. Updates to the DDTC Website will also occur on July 15, 2019, to be consistent with DTCC Registration name change. * * * * * * * * * * * * * * * * * * * * |
NEWS |
5 . The Economic Times: “India, Russia Seek to Skirt US Sanctions Threat to Arms Deals” India and Russia have agreed on a new payment method through their national currencies for multi-billion-dollar defense deals, in a bid to avoid risks created by the U.S. threat of sanctions and banking restrictions. The arrangement would enable India to pay the first installment soon for two warships that Russia is building for its navy, two people familiar with the matter said in New Delhi, without elaborating. Defense contracts will be settled in rubles and rupees under a payment agreement reached by the central banks of Russia and India, said a person in Moscow with knowledge of the preparations. … * * * * * * * * * * * * * * * * * * * * |
6 . Reuters: “China to Impose Sanctions on U.S. Firms that Sell Arms to Taiwan” (Source: Reuters, 12 July 2019.) [Excerpts.] China said on Friday it would impose sanctions on U.S. firms involved in a deal to sell $2.2-billion worth of tanks, missiles and related equipment to Taiwan, saying it harmed China’s sovereignty and national security. On Monday, the Pentagon said the U.S. State Department had approved the sale of the weapons requested by Taiwan, including 108 General Dynamics Corp M1A2T Abrams tanks and 250 Stinger missiles, which are manufactured by Raytheon. … * * * * * * * * * * * * * * * * * * * * |
7 . ST&R Trade Report: “Canada to Require Electronic Export Reporting in 2020” The Canada Border Services Agency has announced that as of June 30, 2020, it will no longer accept the paper B13A export declaration form and exporters (or their customs service providers) will instead be required to report exports electronically. There will be two electronic reporting methods available: the Canadian Export Reporting System, which will become operational on March 16, 2020, and replace the Canadian Automated Export Declaration system; and the G7 Export Reporting Electronic Data Interchange, which is already in existence and can be used now.
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8. WorldECR: “Ross Links Export Control with US Competitive Advantage” (Source: WorldECR, Jul 2019.) [Excerpts.] In his keynote speech at the US Bureau of Industry and Security Update event in Washington, DC, US Commerce Secretary Wilbur Ross has explicitly linked the US export control regime, and the Export Control Reform Act, with the US’s need to maintain its ‘strategic advantage in advanced technology’ upon which, he said, the nation’s future prosperity “depends”. “We cannot allow our most precious resource – our intellectual property -to be stolen, copied, or traded away for short-term gain. And we can no longer accept the decline of U.S. industries due to state-supported overcapacity, and the strategic — often clandestine — foreign purchases and investments in our most important technology enterprises.”
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COMMENTARY |
9. A. Rochester & P. Carlyle: “Scotch Whisky Included in Threatened US Tariffs” 15 Jul 2019. Trade tensions between the US and the EU appear to be intensifying, with Scotch whisky among the products that may be included in a new list of US tariffs. Since the election of President Trump and the Boeing-Bombardier dispute in September 2017, tariffs have been a significant issue in international trade discussions. Now, US Trade Representative Robert Lighthizer has threatened tariffs of up to $4 billion on EU imports, although it is not yet clear when these will be imposed. Scotch whisky is among a number of food and drink products from across the EU that could be affected. The US is the world’s largest export market for Scotch whisky by value — £1.04 billion in 2018. By volume, it is the second largest, with 137 million 70cl bottles exported last year. Lighthizer said that the tariffs come “in response to harm caused by EU aircraft subsidies.” The US claims Airbus benefits from EU subsidies to the detriment of Chicago-headquartered Boeing. In autumn 2017, the US Government responded to Boeing’s concerns about subsidies with a 300% tariff on Bombardier’s C-Series jet, after which Airbus received a majority stake for one dollar in an entity created by Bombardier to produce and market the C-Series jet and avoid tariffs by assembling the final parts in the US state of Alabama. … Although it is possible that these whisky tariffs may never be implemented, they pose a real threat, and are indicative of the challenges that UK businesses might face post-Brexit as the UK seeks to establish direct trading relationships around the world. * * * * * * * * * * * * * * * * * * * * |
10. C.B. Monahan & C.N. Stinebower: “Banks Beware: A Second Round of Significant Extraterritorial Sanctions Looms” July 10, 2019, was the first instance of plaintiffs setting their sights on a new set of targets in the string of cases under Title III of Helms Burton- financial institutions. Although yesterday’s complaint was directed at Société Générale, S.A., the case should cause concern for any financial institution (“FI”), especially those non-U.S. FIs that found themselves in the string of U.S. sanctions-enforcement cases dating back to December 2005-sometimes referred to as the “stripping cases.” They are known as such because the banks removed-or stripped-references to sanctioned geographies to more-easily process transactions through U.S. correspondent banks. The U.S. penalized non-U.S. FIs heavily for that activity in what some would call an extraterritorial exercise of sanctions enforcement, and now those same FIs may find themselves penalized again.
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11. E. Chang, W. Chung & A. N. Phillips: “Vessel Forfeiture Issues for Carriers Involved in U.S. Government Drug Trafficking or Other Criminal Investigations” On June 17, 2019, at the Port of Philadelphia (Pennsylvania), U.S. federal law enforcement seized over 16 tons of cocaine from containers onboard the MSC GAYANE container ship. The estimated value of this cocaine is approximately $1 billion dollars. To date, six crew members of the MSC GAYANE have been arrested and charged with violations of the federal maritime drug trafficking laws. This was the second major drug seizure on a container ship by the U.S. government at the Port of Philadelphia in recent months, and reportedly the largest such seizure in the Port’s history. Similarly, in March of this year, over 3,000 pounds (1.5 tons) of cocaine were seized on a container ship at the Port of New York/New Jersey which was reportedly the largest cocaine seizure in that port in approximately 25 years. … * * * * * * * * * * * * * * * * * * * * |  |
EX/IM MOVERS & SHAKERS |
12. Monday List of Ex/Im Job Openings: 153 Openings Posted This Week, Including 6 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 * Lockheed Martin Rotary and Mission Systems; Liverpool, NY, Moorestown, NJ, Owego, NY, Stratford, CT; Intl Licensing Analyst Stf ; Requisition ID: 483502BR * Thermo Fisher Scientific; Boulder, CO or Atlanta, GA or Boston, MA or Remote, NY; Compliance Specialist III; Requisition ID: 91186BR * United Technologies – Collins Aerospace; Charlotte, NC; Director, ITC; Requisition ID: 01323647 * * * * * * * * * * * * * * * * * * * * | |
| 15. Tony Dearth to Move from DDTC to Dearth Consulting (Source: Editor) Tony Dearth, currently Chief of Staff, Directorate of Defense Trade Controls, U.S. Dep’t of State, retires from Federal service effective July 19, 2019. He will become President of Dearth Consulting LLC (www.DearthConsulting.org) in Goodyear, Arizona. Contact Tony at Tony@DearthConsulting.org or 1-602-699-5035. * * * * * * * * * * * * * * * * * * * * |
EX/IM TRAINING EVENTS & CONFERENCES |
| 13. ECTI Presents “Preparing Voluntary Self-Disclosures: Requirements, Best Practices, and Pitfalls to Avoid” on 18 July 2019 * What: Preparing Voluntary Self-Disclosures: Requirements, Best Practices, and Pitfalls to Avoid * When: July 18, 2019; 1:00 p.m. (EDT) * Where: Webinar * Sponsor: Export Compliance Training Institute (ECTI) * ECTI Speaker: Olga Torres * * * * * * * * * * * * * * * * * * * * |
14. 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 * 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 pricing deals. * * * * * * * * * * * * * * * * * * * * | |
| EDITOR’S NOTES |
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Pasquier Quesnel
(14 Jul 1634 – 2 Dec 1719; was a French Jansenist theologian.) – “The truth only irritates those it enlightens, but does not convert.“ * Mohammed bin Rashid Al Maktoum
(born 15 July 1949, is the Vice President and Prime Minister of the United Arab Emirates (UAE), and ruler of the Emirate of Dubai.) – “With each new day in Africa, a gazelle wakes up knowing he must outrun the fastest lion or perish. At the same time, a lion stirs and stretches, knowing he must outrun a gazelle or starve. It’s no different for the human race. Whether you consider yourself a gazelle or a lion, you have to run faster than others to survive.“ Monday is pun day: * Seven days without a pun makes one weak. * How do rabbits keep their fur neat? They use a hare brush. * How do you know that bees are happy? Because they hum while they work. * * * * * * * * * * * * * * * * * * * *
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16 . 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: 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 (4 Jul 2019) of Bartlett’s Annotated FTR (“BAFTR”), by James E. Bartlett III, is available for downloading in Word format. The BAFTR is a 152-page Word document containing 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 . * 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. * 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: 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: 4 Jul 2019) of the ITAR with all amendments is contained in Bartlett’s Annotated ITAR (“BITAR”), by James E. Bartlett III. The BITAR is a 371-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. 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”.) – HTS codes for AES are available here. – HTS codes that are not valid for AES are available here. * * * * * * * * * * * * * * * * * * * *
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17. Weekly Highlights of the Daily Bugle Top Stories (Source: Editor) Review last week’s top Ex/Im stories in “Weekly Highlights of the Daily Bugle Top Stories” published here. * * * * * * * * * * * * * * * * * * * *
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| * 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. * CAVEAT: The contents of this newsletter cannot be relied upon as legal or expert advice. Consult your own legal counsel or compliance specialists before taking actions based upon news items or opinions from this or other unofficial sources. If any U.S. federal tax issue is discussed in this communication, it was not intended or written by the author or sender for tax or legal advice, and cannot be used for the purpose of avoiding penalties under the Internal Revenue Code or promoting, marketing, or recommending to another party any transaction or tax-related matter.
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