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19-0830 Friday “Daily Bugle”

19-0830 Friday “Daily Bugle”

Friday, 30 August 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. Contact us for advertising  

inquiries and rates. 

  1. Commerce/BIS Seeks Comments on Delivery Verification Procedure for Imports
  2. Commerce/BIS Seeks Comments on International Import Certificate
  3. Commerce/BIS Seeks Comments on Application for NATO International Bidding
  4. DHS/CBP Seeks Comments on Declaration of Owner and Declaration of Consignee
  5. State/DDTC Adjusts Controls for Lower Performing Radar and Continued Temporary Modification of Category XI of the United States Munitions List
  6. USTR Modifies Section 301 Action
  1. Items Scheduled for Publication in Future Federal Register Editions 
  2. Commerce/BIS Publishes Due Diligence Guidance to Pakistan 
  3. State/DDTC: (No new postings.)
  4. Treasury/OFAC Updates Specially Designated Nationals List
  5. UK ECJU Releases new Guidance on Military and Dual Use Export
  6. UK OFSI Releases new Guidance on UK Financial Sanctions
  1. Yahoo News: “U.S. Issues Sanctions Over Alleged Fuel Shipments to North Korea”
  1. J. Leung, S. Fischer & A. Dafoe: “Export Controls in the Age of AI” (Part II of II)
  2. J.K. Kearney & L. Kurin: “Commerce Department Blacklists Additional Huawei Affiliates but Grants More Time to U.S. Businesses to Disengage from Huawei, Designated as a National Security Threat”
  3. M. Miller, B. Murphy & S. Murray: “15% China Section 301 Duty Rate Effective September 1, 2019”
  1. ECS Presents “2nd Annual ECS ITAR/EAR Symposium and Managing ITAR/EAR Complexities” on 17-19 Sep in Annapolis, MD
  2. FCC Presents “The ABC of FMS”, 28 Nov in Bruchem, the Netherlands
  3. List of Approaching Events: 137 Events Posted This Week, Including 4 New Events 
  1. Are Your Copies of Regulations Up to Date? Latest Amendments: DHS/Customs (5 Apr 2019), DOC/EAR (21 Aug 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 (30 Aug 2019), DOT/FACR/OFAC (6 Aug 2019), HTSUS (13 Aug 2019) 
  2. Weekly Highlights of the Daily Bugle Top Stories 

EXIMITEMS FROM TODAY’S FEDERAL REGISTER

EXIM_a01
Commerce/BIS Seeks Comments on Delivery Verification Procedure for Imports

(Source:
Federal Register, 30 Aug 2019.) [Excerpts.]
 
84 FR 45722-45723: Agency Information Collection Activities; Proposals, Submissions, and Approvals: International Import Certificate
 
* AGENCY: Bureau of Industry and Security.
* TITLE: Delivery Verification Procedure for Imports.
* FORM NUMBER: BIS-647P.
* OMB CONTROL NUMBER: 0694-0016.
* NEEDS AND USES: Foreign governments, on occasions, require U.S. importers of strategic commodities to furnish their foreign supplier with a U.S. Delivery Verification Certificate validating that the commodities shipped to the U.S. were in fact received. This procedure increases the effectiveness of controls on the international trade of strategic commodities.

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EXIM_a12
Commerce/BIS Seeks Comments on International Import Certificate

(Source:
Federal Register, 30 Aug 2019.) [Excerpts.]
 
84 FR 45723: Agency Information Collection Activities; Proposals, Submissions, and Approvals: International Import Certificate
 
* AGENCY: Bureau of Industry and Security.
* TITLE: International Import Certificate.
* OMB CONTROL NUMBER: 0694-0017.
* NEEDS AND USES: The United States and several other countries have increased the effectiveness of their respective controls over international trade in strategic commodities by means of an Import Certificate procedure. For the U.S. importer, this procedure provides that, where required by the exporting country, the importer submits an international import certificate to the U.S. Government to certify that he/she will import commodities into the United States and will not reexport such commodities, except in accordance with the export control 
regulations of the United States. …

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

EXIM_a23
Commerce/BIS Seeks Comments on Application for NATO International Bidding

(Source:
Federal Register, 30 Aug 2019.) [Excerpts.]
 
84 FR 45723-45724: Agency Information Collection Activities; Proposals, Submissions, and Approvals: Application for NATO International Bidding
 
* AGENCY: Bureau of Industry and Security, Commerce.
* ACTION: Notice.
* SUMMARY: …
* DATES: To ensure consideration, written comments must be submitted on or before October 29, 2019.
* ADDRESSES: Direct all written comments to Mark Crace, IC Liaison, Bureau of Industry and Security, 1401 Constitution Avenue, Suite 2099B, Washington, DC 20233 (or via the internet at
PRAcomments@doc.gov). …
* SUPPLEMENTARY INFORMATION: All U.S. firms desiring to participate in the NATO International Competitive Bidding (ICB) process under the NATO Security Investment Program (NSIP) must be certified as technically, financially and professionally competent. The U.S. Department of Commerce provides the Declaration of Eligibility that certifies these firms. Any such firm seeking certification is required to submit a completed Form BIS-4023P along with a current annual financial report and a resume of past projects in order to become certified and placed on the Consolidated List of Eligible Bidders. …
* OMB Control Number: 0694-0128.
* Form Number(s): BIS-4023P. …

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EXIM_a34
DHS/CBP Seeks Comments on Declaration of Owner and Declaration of Consignee

(Source:
Federal Register, 30 Aug 2019.) [Excerpts.]
 
84 FR 45786-45787: Agency Information Collection Activities; Proposals, Submissions, and Approvals: Declaration of Owner and Declaration of Consignee When Entry is made by an Agent
 
* AGENCY: U.S. Customs and Border Protection (CBP), Department of Homeland Security.
* ACTION: 60-Day notice and request for comments; extension of an existing collection of information.
* SUMMARY: The Department of Homeland Security, U.S. Customs and Border Protection will be submitting the following information collection request to the Office of Management and Budget (OMB) for review and approval in accordance with the Paperwork Reduction Act of 1995 (PRA). The information collection is published in the Federal Register to obtain comments from the public and affected agencies.
* DATES: Comments are encouraged and must be submitted (no later than October 29, 2019) to be assured of consideration.
* ADDRESSES: Written comments and/or suggestions regarding the item(s) contained in this notice must include the OMB Control Number 1651-0093 in the subject line and the agency name. To avoid duplicate submissions, please use only one of the following methods to submit comments:
   (1) Email. Submit comments to:
CBP_PRA@cbp.dhs.gov.
   (2) Mail. Submit written comments to CBP Paperwork Reduction Act Officer, U.S. Customs and Border Protection, Office of Trade, Regulations and Rulings, Economic Impact Analysis Branch, 90 K Street NE, 10th Floor, Washington, DC 20229-1177.
* FOR FURTHER INFORMATION CONTACT: Requests for additional PRA information should be directed to Seth Renkema, Chief, Economic Impact Analysis Branch, U.S. Customs and Border Protection, Office of Trade, Regulations and Rulings, 90 K Street NE, 10th Floor, Washington, DC 20229-1177, Telephone number 202-325-0056 or via email
CBP_PRA@cbp.dhs.gov. Please note that the contact information provided here is solely for questions regarding this notice. Individuals seeking information about other CBP programs should contact the CBP National Customer Service Center at 877-227-5511, (TTY) 1-800-877-8339, or CBP website at
https://www.cbp.gov/.
* SUPPLEMENTARY INFORMATION: …

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EXIM_a45
State/DDTC Amends ITAR to Adjust Controls for Lower Performing Radar and Continued Temporary Modification of Category XI of the United States Munitions List

(Source:
Federal Register, 30 Aug 2019.) [Excerpts.]
 
84 FR 45652-45654: Adjustment of Controls for Lower Performing Radar and Continued Temporary Modification of Category XI of the United States Munitions List
 
* AGENCY: Department of State.
* ACTION: Final rule; notification of temporary modification.
* SUMMARY: The Department of State, in response to public comments, revises Category XI on the United States Munitions List to remove items that do not warrant continued inclusion, and, pursuant to its regulations and in the interest of the security of the United States, temporarily modifies paragraph (b) in Category XI of the United States Munitions List (USML).
* DATES:
This rule is effective August 30, 2019, except for amendatory instruction 3 which is effective August 30, 2021.
* FOR FURTHER INFORMATION CONTACT: Ms. Sarah Heidema, Director, Office of Defense Trade Controls Policy, Department of State, telephone (202) 663-1282; email
DDTCRESPONSETEAM@STATE.GOV.
* SUPPLEMENTARY INFORMATION: On July 1, 2014, the Department published a final rule revising Category XI of the USML, 79 FR 37536, effective December 30, 2014. That final rule, consistent with the two prior proposed rules for USML Category XI (78 FR 45018, July 25, 2013 and 77 FR 70958, November 28, 2012), revised paragraph (b) of Category XI to 
clarify the extent of control and maintain the existing scope of 
control on items described in paragraph (b) and the directly related software described in paragraph (d). …
The Department, with its interagency partners, continues to develop a long term solution for USML Category XI(b). However, that solution will not be in place when the current temporary modification expires on August 30, 2019. Therefore, the Department has determined, for the national security and foreign policy of the United States and in the best interest of the U.S. defense industry, to publish a final rule that extends the temporary modification of USML XI(b) for two years, to August 30, 2021, to allow it to be revised as part of the wholesale revision of USML Category XI.

Effective August 30, 2019, in §121.1, under Category XI, remove and reserve paragraph (a)(3)(ix), revise paragraph (b), and add a note to Category XI to read as follows:

§ 121.1 The United States Munitions List.
* * * * *
Category XI-Military Electronics
* * * * *
* (b) Electronic systems, equipment or software, not elsewhere enumerated in this subchapter, specially designed for intelligence purposes that collect, survey, monitor, or exploit, or analyze and produce information from, the electromagnetic spectrum (regardless of transmission medium), or for counteracting such activities.  

Andrea Thompson, Under Secretary for Arms Control and International Security.
[FR Doc. 2019-18821 Filed 8-29-19; 8:45 am]

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EXIM_a56
USTR Modifies Section 301 Action

(Source:
Federal Register, 30 Aug 2019.) [Excerpts.]
 
84 FR 45821-45822: Notice of Modification of Section 301 Action: China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation
 
* AGENCY: Office of the United States Trade Representative.
* ACTION: Notice of modification of action.
* SUMMARY: In accordance with the specific direction of the President, the U.S. Trade Representative has determined to modify the action being taken in this Section 301 investigation by increasing the rate of additional duty from 10 to 15 percent for the products of China covered by the $300 billion tariff action published on August 20, 2019.
* DATES: For products covered by Annex A of the August 20, 2019 notice (84 FR 43304), the rate of additional duty will be 15 percent on the current effective date of September 1, 2019. For products covered by Annex C of the August 20 notice, the rate of additional duty will be 15 percent on the current effective date of December 15, 2019.
* FOR FURTHER INFORMATION CONTACT: For questions about this action, contact Associate General Counsel Arthur Tsao or Assistant General Counsel Megan Grimball, or Director of Industrial Goods Justin Hoffmann at (202) 395-5725. For questions on customs classification or implementation of additional duties on products identified in the Annexes to this notice, contact
traderemedy@cbp.dhs.gov.
* SUPPLEMENTARY INFORMATION: …

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OGSOTHER GOVERNMENT SOURCES

OGS_a07
. Items Scheduled
for Publication in Future Federal Register Editions

(Source: Federal Register, 30 August 2019.)
 

USTR: NOTICES: Request for Comments: National Trade Estimate Report on Foreign Trade Barriers [Pub. Date: 3 Sep 2019.]


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OGS_a18
Commerce/BIS Publishes Due Diligence Guidance to Pakistan 

(Source:
Commerce/BIS, 30 Aug 2019.)
 
Guidance document can be found
here.

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OGS_a310. Treasury/OFAC Updates Specially Designated Nationals List

(Source:  
Treasury/OFAC, 30 Aug 2019.)
 
The following individuals have been added to OFAC’s SDN List:
CHEN, Mei Hsiang (Chinese Traditional:
陳美香) (a.k.a. CHEN, Mei-Hsiang), Taiwan; DOB 18 May 1956; nationality Taiwan; Gender Female; Secondary sanctions risk: North Korea Sanctions Regulations, sections 510.201 and 510.210; Passport 310422295 expires 06 Jan 2025; National ID No. R222185563 (individual) [DPRK4].
HUANG, Wang Ken (Chinese Traditional:
黃旺根) (a.k.a. HUANG, Wan Ken; a.k.a. HUANG, Wang-gen; a.k.a. HUANG, Wan-Ken), Taiwan; DOB 18 Jul 1960; nationality Taiwan; Gender Male; Secondary sanctions risk: North Korea Sanctions Regulations, sections 510.201 and 510.210 (individual) [DPRK4].
The following entities have been added to OFAC’s SDN List:
JUI CHENG SHIPPING COMPANY LIMITED (Chinese Traditional:
瑞誠海運股份有限公司) (a.k.a. JUI CHENG SHIPPING CO LTD; a.k.a. JUI CHENG SHIPPING CO., LIMITED), Care of Jui Zong Ship Management Co Ltd, 5th Floor, 551, Jiuru 1st Road, Sanmin District, Kaohsiung 80764, Taiwan; Room B, 21/F Kaikwong Commercial Building, 332 Lockhart Road, Wan Chai, Hong Kong; Secondary sanctions risk: North Korea Sanctions Regulations, sections 510.201 and 510.210; Commercial Registry Number 0925906 (Hong Kong); Company Number IMO 5499198 [DPRK4].
JUI PANG SHIPPING CO LTD (Chinese Traditional:
瑞邦海運股份有限公司), 5th Floor, 551, Jiuru 1st Road, Sanmin District, Kaohsiung City 80764, Taiwan; 5F-2 No 551 Jiouru 1st Road, Sanmin District, Kaohsiung, Taiwan; 4FL No. 198 Wencheng 2nd Road, Chengde Village, North District, Tainan, Taiwan; 193 San Kuan Rd, Tainan City 70247, Taiwan; Secondary sanctions risk: North Korea Sanctions Regulations, sections 510.201 and 510.210; Company Number IMO 1865817; Business Number 16111431 (Taiwan) [DPRK4].
JUI ZONG SHIP MANAGEMENT CO LTD (Chinese Traditional:
瑞榮船舶管理有限公司) (a.k.a. JUI ZONG SHIP MANAGEMENT CO; a.k.a. JUI ZONG SHIP MANAGEMENT CO., LTD.), 5FL-2 No. 551 Jiouru 1st Road Sanmin Dist., Kaohsiung 80764, Taiwan; 5th Floor, 551, Jiuru 1st Road, Sanmin District, Kaohsiung City 80764, Taiwan; Secondary sanctions risk: North Korea Sanctions Regulations, sections 510.201 and 510.210; Company Number IMO 5418446; Business Number 13195014 (Taiwan) [DPRK4].
The following vessel has been added to OFAC’s SDN List:
SHANG YUAN BAO Panama flag; Secondary sanctions risk: North Korea Sanctions Regulations, sections 510.201 and 510.210; Vessel Registration Identification IMO 8126070 (vessel) [DPRK4] (Linked To: HUANG, Wang Ken; Linked To: CHEN, Mei Hsiang; Linked To: JUI CHENG SHIPPING COMPANY LIMITED; Linked To: JUI PANG SHIPPING CO LTD; Linked To: JUI ZONG SHIP MANAGEMENT CO LTD).

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OGS_a411
UK ECJU Releases new Guidance on Military and Dual Use Export

(Source:
UK ECJU, 30 Aug 2019.)
 
The UK Export Control Joint Unit (ECJU) within the Department of International Trade (TID) has published the following update on its website:
 

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OGS_a512
UK OFSI Releases new Guidance on UK Financial Sanctions

(Source:
UK OFSI, 30 Aug 2019.)
 
The UK Office of Financial Sanctions Implementation (OFSI) has published the following update on its website:
 

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COMNEWS

NWS_a113.
 Yahoo News: “U.S. Issues Sanctions Over Alleged Fuel Shipments to North Korea”

(Source:
Yahoo News, 30 Aug 2019.) [Excerpts.]
 
Six UN Security Council members on Wednesday blocked a move to include Somali jihadist group Al-Shabaab on a list of organizations such as Al-Qaeda that are under international sanctions, diplomatic sources said.
 
Several NGOs and the UN Office for the Coordination of Humanitarian Affairs recently stepped in to oppose the classification, which would have effectively kept humanitarian aid away from millions of Somalis living in Al-Shabaab-controlled areas.
 
Germany, Belgium, Poland, France, Kuwait and the United States were the six countries whose votes blocked the implementation of the new sanctions. …

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COMCOMMENTARY

COM_a114J. Leung, S. Fischer & A. Dafoe: “Export Controls in the Age of AI” (Part II of II)

(Source: 
War on the Rocks, 28 Aug 2019.)
 
* Authors: Jade Leung, Head of Research and Partnerships at Centre for the Governance of AI at the University of Oxford, Sophie-Charlotte Fischer, PhD Candidate at ETH Zurich and Research Affiliate with the Centre for the Governance of AI, Allan Dafoe, Associate Professor at the University of Oxford and Director of the Centre for the Governance of AI.
 
Part I of II was published in the Daily Bugle of 29 August 2019.
 
Second, the restricted technology should be feasible to control, which is more likely to be the case when it is tangible, large, can only be exported through certain ports, and so forth. Many of the key components of AI, however, do not have those properties. Algorithms and software are intangible or small (the size of a data-stream or thumb drive) and can be exported through any internet-connected device. The fact that export controls failed to prevent the proliferation of 
cryptographic products illustrates this.
 
Valuable information is not always digitized. Moreover, much of it is intangible, such as the technical skills required to integrate software and hardware components into a product, or the intuition that comes with deep research experience for where the next technological breakthrough may lie. Thus, policymakers may be tempted to try to control the movement of and conversations between skilled individuals. Indeed, the recent 
tightening of visa restrictions for Chinese students and the introduction of the 
Protect Our Universities Act indicate a building policy momentum in this direction. Such policies conflict with liberal and scientific norms about the free flow of ideas and people, and have been heavily criticized by 
national and 
global scientific communities. Further, export controls which would prohibit 
foreign nationals in the United States from working on technologies covered by new export control regulations risk undermining the U.S. technology base – 
more than half of the top AI talent working in the country are foreign nationals, with the largest group coming from China. If these experts are forced to leave, or are never allowed to enter, AI export controls could inadvertently 
strengthen the technology base of U.S. competitors while weakening its own.
 
Finally, export control policies risk imposing substantial costs on the private sector. The case of satellite technology demonstrates the chilling effect of export controls on the commercial satellite industry. The 
Strom Thurmond Act of 1999 placed communications satellites and all of their associated components and research on the U.S. Munitions List. This
 contributed to the decrease in U.S. market share of the global satellite components market from 90 percent in 1995 to 56 percent in 1999. Similarly, export controls on
 cryptographic products in the 1990s caused technology companies to lose hundreds of millions of dollars in sales to foreign competitors. Hampering the performance of commercial firms has substantial negative second-order effects, from 
harming the health of the domestic economy to 
undermining American economic and technological leadership and 
weakening the national industrial base.
 
In sum, history suggests that export controls, if not wielded carefully, are a poor tool for today’s emerging dual-use technologies. At best, they are one tool in the policymakers’ toolbox, and a niche one at that. Encouragingly, at least a few 
recent remarks suggest that the White House recognizes some of these concerns.
 
A Positive Agenda for Technological Leadership
 
If the goal is U.S. technological leadership, policymakers should look beyond export controls and develop a comprehensive, positive strategy for U.S. scientific and economic innovation. The Trump administration’s 
executive order on AI signals a step in this direction, emphasizing the development of domestic AI talent, the promotion of an international R&D environment, and investment of federal resources into AI research and commercialization. However, much needs to be done to clarify the strategy, make resources available, and implement this plan.
 
The first important element of a positive agenda is improved STEM education at American high schools and universities. This is critical not only to nurture new AI talent, which is currently in scarce supply globally, but also to retain this talent within the United States. Training and maintaining a highly skilled domestic AI workforce is an important cornerstone for strengthening the industrial base, maintaining a leading position in global markets for AI, and bolstering overall American technological leadership. STEM education has long been 
neglected in the United States
 relative to other countries such as China.
 
Second, given its 
high dependency on foreign researchers, the United States should adapt its immigration policy so as to better attract and retain AI talent from abroad. Promisingly, as of 2019, the United States is in a 
leading position globally in terms of attracting and retaining AI researchers. One step is to 
 streamline the 
visa application process for highly qualified workers. On average, the process currently takes several months, whereas the procedure in countries such as 
Canada only takes two weeks. Changes in visa regulations could also make it easier for foreign STEM students at U.S. universities to stay after graduating.
 
Third, to effectively shape the development of AI internationally, the United States will need to articulate a persuasive global vision for AI and establish sufficient domestic support for that vision. The vision should acknowledge the necessity of addressing the social and economic risks from AI given the 
strong concerns held by the American public. Further, the United States should commit to investing in global governance efforts to address the social, ethical, and economic dimensions of AI development. There have been promising efforts in this vein spearheaded by the recently established 
Joint Artificial Intelligence Center and the 
Defense Innovation Board. Further, the United States should prioritize close cooperation with allies, and acknowledge that strategic cooperation with rivals – specifically China – in areas such as 
AI safety research and the development of 
international standards may be necessary for Washington to be able to maintain and project its leadership.
 
The Global Stakes
 
Export control conversations focus on techno-military superiority, but the stakes are even higher. The game of technological preeminence shapes world order – whose values are built into future institutions, which actors become powerful or irrelevant, and how transformative technologies like AI will impact the structure of the economy and the functioning of societies. From this global perspective, the consequences of a techno-military race could be terribly destructive. Indeed, the competition over AI is but one of several broader trends in global politics that risk a reversion to rivalrous techno-nationalist economic blocs. This could, in turn, promote competition between these blocs and consequently undermine 
globalization
innovation, and 
geopolitical stability. This then risks weakening our ability to coordinate transnationally to solve other global problems like global health, poverty, climate change, and environmental sustainability.
 
Critically, this means that Western technological leadership needs to be pursued with caution, moderated by the knowledge that national strategies are now, more than ever, dependent on the health of the international economy and strategic cooperation with competitors. A robust national strategy for AI should be grounded in both the national interest and a commitment to build the necessary institutions and norms to govern AI for the global good, for generations to come.

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COM_a215. J.K. 

Kearney & L. Kurin: “Commerce Department Blacklists Additional Huawei Affiliates but Grants More Time to U.S. Businesses to Disengage from Huawei, Designated as a National Security Threat”

 

 
* Authors: James K. Kearney, Esq., 
james.kearney@wbd-us.com, Lidiya Kurin, Esq., 
lidiya.kurin@wbd-us.com, both of Womble Bond Dickinson.
 
On August 19, 2019, the Department of Commerce Bureau of Industry and Security (“BIS”) announced that it has added 46 additional Huawei Technologies Co., Ltd. (“Huawei”) affiliates to its Entities List, bringing to over 100 the number of Huawei’s non-U.S. affiliates subject to Entity List restrictions.[FN/1] However, although these restrictions make it harder for U.S. companies to transact business with Huawei and its affiliates, an existing general license authorizing certain specified transactions with these entities, due to expire on August 19, 2019, has been clarified and extended for an additional 90 days.[FN/2] 
 
The BIS Entity List identifies entities reasonably believed to be involved in, or pose a significant risk of being or becoming involved in, activities contrary to the national security or foreign policy interests of the U.S.[FN/3] Prior to any export, reexport, or transfer (in-country) of items subject to the Export Administration Regulations (“EAR”) [FN/4] to parties on the Entity List, the exporter must obtain a license from BIS approving the export or transfer. However, most license applications are subject to a presumption of denial.[FN/5] 
 
The Entity List export restrictions only apply to “items subject to the EAR” and do not apply to information and software that are (1) unclassified and available to the public without restrictions on its dissemination; (2) non-proprietary system definitions; or (3) appear in patents and published patent applications.[FN/6] “Activities” that fall outside the scope of the EAR include the sending, taking, or storing of technology or software that is (i) unclassified, (ii) secured using ‘end-to-end encryption,’ (iii) secured using cryptographic modules compliant with FIPS 140-2, and (iv) not intentionally stored in a country listed in Country Group D:5 or in the Russian Federation.
 
Huawei was designated as a national security threat and placed on the Entity List, along with 68 of its non-U.S. affiliates, on May 21, 2019. However, on May 22, 2019, to mitigate the financial and logistical ramifications on U.S. companies resulting from the Entity List designation, particularly on rural companies, BIS issued a Temporary General License for 90 days until August 19, 2019 for certain limited transactions with Huawei and its 68 non-U.S. affiliates.[FN/7] This temporary license restored previous EAR licensing requirements and policies in place before Huawei’s inclusion, authorizing certain continued transactions with the listed entities.
 
BIS has now extended this Temporary General License for an additional 90 days through November 18, 2019. In addition, BIS has clarified various aspects of the transactions with Huawei and its non-U.S. affiliates authorized under the Temporary General License. Although subject to certain exclusions detailed in the Temporary General License, the following activities are generally authorized:
  (1) Continued operation of existing networks and equipment, including software updates, subject to legally binding contracts/agreements executed on or before May 16, 2019;
  (2) Support to existing personal consumer electronic devices and Customer Premises Equipment (CPE) that were available to the public on or before May 16, 2019; and
  (3) Disclosure to Huawei and its non-U.S. affiliates of information regarding security vulnerabilities when related to the process of providing ongoing security research.
 
BIS has promised to publish additional guidance regarding the authorized transactions and any applicable exclusions.
 
Prior to any export, reexport, or transfer (in-country) pursuant to this temporary license of items subject to the EAR, the exporter, reexporter, or transferor must obtain a certification statement (and any additional support documentation needed to substantiate the certification statement) from the Huawei entity that will receive the items specifying how the requested action meets the scope of the temporary license.
 
As of the time of writing, Huawei’s U.S. subsidiary has not been targeted by the Department of Commerce. However, pursuant to Executive Order 13873, in which President Trump declared a national emergency with respect to foreign telecommunications equipment providers, the implications of future rules and regulations may lead to a more comprehensive ban on dealings with Huawei and all Huawei affiliates.[FN/8]
 
In addition to more stringent restrictions against Huawei and its affiliates, other information and communications technology and service providers may be targeted. Executive Order 13873 prohibits any transaction if it (a) involves information and communications technology or services created or supplied by any affiliate of a foreign adversary and (b) poses an undue risk to the information and communications technology or services, critical infrastructure, digital economy, or national security of the United States. The term “transaction” is broadly defined as any acquisition, importation, transfer, installation, dealing in, or use of any information and communications technology or service.
 
The expansive scope of the Executive Order allows the government considerable discretion to place additional, more comprehensive restrictions on Huawei and other information and communications technology and service providers. The Administration has shown its willingness to act consistently with the findings of the Executive Order. Earlier this month, the Administration issued a rule barring federal agencies from buying telecommunication equipment and services from Huawei, ZTE Corporation and other Chinese companies. [FN/9] Going forward, more rules targeting additional Chinese entities, transactions with China in general, and perhaps entities from other countries such as Russia can reasonably be expected.
 
[FN/1] Addition of Certain Entities to the Entity List and Revision of Entries on the Entity List, 84 Fed. Reg. 43493 (August 21, 2019).
[FN/2] Temporary General License: Extension of Validity, Clarifications to Authorized Transactions, and Changes to Certification Statement Requirements, 84 Fed. Reg. 43487 (August 21, 2019).
[FN/3] 15 C.F.R. § 744.16 (2016).
[FN/4] Pursuant to 15 C.F.R. § 734.3 of the EAR, the following items are subject to the EAR:
(1) All items in the United States, including in a U.S. Foreign Trade Zone or moving in transit through the United States from one foreign country to another;
(2) All U.S. origin items wherever located;
(3) Foreign-made commodities that incorporate controlled U.S.-origin commodities, foreign-made commodities that are ‘bundled’ with controlled U.S.-origin software, foreign-made software that is commingled with controlled U.S.-origin software, and foreign-made technology that is commingled with controlled U.S.-origin technology:
(i) In any quantity, as described in § 734.4(a) of this part; or
(ii) In quantities exceeding the 
de minimis levels, as described in § 734.4(c) or § 734.4(d) of this part;
(4) Certain foreign-made direct products of U.S. origin technology or software, as described in § 736.2(b)(3) of the EAR. The term “direct product” means the immediate product (including processes and services) produced directly by the use of technology or software; and
(5) Certain commodities produced by any plant or major component of a plant located outside the United States that is a direct product of U.S.-origin technology or software, as described in § 736.2(b)(3) of the EAR.
[FN/5] Noncompliance with EAR licensing requirements may result in criminal and/or civil penalties. Criminal penalties for violations can reach 20 years imprisonment and $1 million per violation, while administrative monetary penalties can reach $11,000 for each violation, and $120,000 per violation in cases involving items controlled for national security reasons, as is the case with Huawei.
[FN/6] 15 C.F.R. § 734.3(b)(3) (2016).
[FN/7] Addition of Entities to the Entity List, 84 Fed. Reg. 22961 (May 21, 2019); Temporary General License, 84 Fed. Reg. 23468(May 22, 2019).
[FN/8] Securing the Information and Communications Technology and Services Supply Chain, 84 Fed. Reg. 22689 (May 17, 2019).
[FN/9] See Federal Acquisition Regulation Subpart 4.21 – Prohibition on Contracting for Certain Telecommunications and Video Surveillance Services or Equipment.

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

COM_a316. M. Miller, 

B. Murphy & S. Murray: “15% China Section 301 Duty Rate Effective September 1, 2019”

(Source: 
Miller & Company P.C., 29 Aug 2019.) [Excerpts.]
 
* Authors: Marshall Miller, Esq., 
mmiller@millerco.com, Brian Murphy, Esq., 
bmurphy@millerco.com, Sean Murray, Esq., 
smurray@millerco.com, all of Miller & Company P.C.
 
The U.S. Trade Representative has released the pre-publication draft of the Federal Register notice that will appear on Friday, August 30 to increase the additional duty rate on China Section 301 List 4 products from 10% to 15%, beginning September 1. 
 
In an August 20, 2019 Federal Register notice (84 Fed. Reg. 43304), the USTR announced the imposition of Section 301 duties on $300 billion in additional Chinese products. The products were divided into Lists 4A and 4B. The List 4A duties will be implemented at 12:01am Eastern Daylight Time (EDT) on September 1, while the List 4B duties are scheduled for implementation at 12:01am EDT on December 15, 2019. The new notice does not change the lists or implementation dates; it only increases the additional duty rate from 10% to 15%. 
 
Affected clients should be considering their Customs entry strategy to avoid or mitigate the application of these duties if possible. Clients with foreign-trade zone inventory subject to these new duties on List 4A products should consider changing its zone status designation to Privileged Foreign (PF) status before September 1 to shield it from these duties. 

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

TEEX/IM TRAINING EVENTS & CONFERENCES

TE_117
ECS Presents “2nd Annual ECS ITAR/EAR Symposium and Managing ITAR/EAR Complexities” on 17-19 Sep in Annapolis, MD 

(Source: ECS)
 
* What:  The 2nd Annual ECS ITAR/EAR Symposium and Managing ITAR/EAR Complexities, Annapolis, MD
* When:  September 17-19, 2019
* Where:  
Chart House
* Sponsor:  Export Compliance Solutions & Consulting (ECS)
* ECS Speaker Panel: Commerce/BIS; Debi Davis, Esterline; Scott Jackson, Curtiss Wright; Matt Doyle, Lockheed Martin; Matthew McGrath, McGrath Law Group and ECS staff. 
* Register 
here or by calling 866-238-4018 or email 
spalmer@exportcompliancesolutions.com

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

TE_218
. 
FCC Presents “The ABC of FMS”, 28 Nov in Bruchem, the Netherlands
 
This training course is specifically designed for compliance professionals and those in a similar role working for government agencies or companies (temporarily) obtaining U.S. export-controlled articles and technology procured through government-to-government Foreign Military Sales (FMS), and authorized by the Arms Export Control Act (AECA) (22 U.S.C. 2751, et. seq.).
 
The course will cover multiple topics relevant for organizations outside the U.S. working with U.S. export-controlled articles and technology procured through FMS, including: the U.S. regulatory framework, with a special focus on the AECA, key concepts and definitions, and practical compliance tips to ensure the proper handling of FMS-acquired articles and technology. Participants will receive a certification upon completion of the training.
 
Details
* What: The ABC of Foreign Military Sales (FMS)
* When: Thursday, 28 Nov 2019
– Welcome and Registration: 9.00 am – 9.30 am
– Training hours: 9.30 am – 4.00 pm
* Where: Full Circle Compliance, Landgoed Groenhoven, Dorpsstraat 6, Bruchem, the Netherlands
* Information & Registration: here 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 International Traffic in Arms Regulations (ITAR) from a non-U.S. Perspective” (26 Nov 2019), and/or “U.S. Export Controls: The Export Administration Regulations (EAR) from a non-U.S. Perspective” (27 Nov 2019). Please, see the event page for our combo deals

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

TE_List19. 
List of Approaching Events: 138 Events Posted This Week, Including 3 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: “ITAR – Requirements for Government Contractors“; Williams Mullins, LLP

*
 
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

* Sep 2: Edinburgh, UK; “
Strategic Export Control: Intermediate Practitioners course“; UK/DIT

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

* Sep 3: Edinburgh, UK; “
Strategic Export Control: Foundation Workshop“; UK/DIT
* Sep 3: Edinburgh, UK; “
Strategic Export Control: Licenses Workshop“; UK/DIT


* Sep 4: Lancaster, UK; “You Can Export: Agents and Distributors“; UK DIT

* Sep 4: Long Beach, CA; “Automated Commercial Environment (ACE) Export Compliance Seminar“; U.S. Census Bureau

* Sep 5: London, UK; “Sanctions Compliance in Maritime Trade Financing“; Dow Jones

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


* Sep 10: Durham, UK; “YOU CAN EXPORT: Introduction to International TradeUK DIT

* Sep 10: Minneapolis, MN; “
Trade Compliance & Policy” C.H. Robinson


* Sep 10: Mobile, AL; “Attracting Foreign Sales with EXIM“; EXIM

* Sep 10-11: Portland, OR; “Complying with U.S. Export Controls“; Commerce/BIS

* Sep 12: Leeds, United Kingdom; “Leeds World Trade Summit“; Institute of Export & International Trade

* Sep 12: Nashville, TN; “
6th Annual Compliance and Government Investigations Seminar
“; Bass, Berry & Sims

* Sep 16-18: Winchester, UK; “
From EAR to ITARnity: Ever-challenging US Export Controls Compliance
” Squire Patton Boggs

* Sep 16-19: Austin, TX; “
ITAR Controls / EAR & OFAC Export Controls (Sep 18-19) Seminar Series
“; ECTI
; 540-433-3977

* Sep 17: Chicago, IL; “
Automated Commercial Environment (ACE) Export Compliance Seminar
“; U.S. Census Bureau

* Sep 17: Kansas City, MO; “Import/Export 101“; Miller & Company P.C.

*
 
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 18: Kansas City, MO; “Import/Export 101“; Miller & Company P.C.

* Sep 18: Leeds, UK; “Export Documentation & Import Procedures“; Chamber International

* Sep 18-19: Los Angeles, CA; “Complying with U.S. Export Controls“; Commerce/BIS

*
 Sep 20: Las Vegas, NV; “
EAR and OFAC Fundamentals: Export Control Of Dual-Use Equipment
“; Barnes & Thornburg LLP

* Sep 23-27: College Park, MD; “Defense and Dual-Use Export Controls“; The Strategic Trade Research Institute

* Sep 23-26: London, United Kingdom; “Annual Corporate Compliance Conference“; Baker McKenzie

* Sep 24: Boston, MA; “
Trade Compliance & Policy” C.H. Robinson

* Sep 24: Brisbane, Australia; “Defence Export Controls Outreach“; Australian DoD

* Sep 24-25: Minneapolis, MN; “Complying with U.S. Export Controls“; Commerce/BIS
* Sep 24-25: San Francisco, CA; “West Coast Conference on FCPA Enforcement and Compliance“; American Conference Institute

* Sep 24-26: Los Angeles, CA; “Export Controls Specialist – Certification“; Amber Road

*
 
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 25: Washington DC; “National Forum on FARA“; American Conference Institute

* Sep 25-26: Amsterdam, the Netherlands; “Defence Exports Annual Conference“; SMI

* Sep 25-26: San Francisco, CA; “West Coast Conference on FCPA Enforcement and Compliance“; American Conference Institute

* Sep 26: Amsterdam, The Netherlands; “Global Trade Management: Turning trade challenges into opportunities” Amber Road

*
 
Sep 26: Bristol, UK; “
Understanding The Paperwork
“; BusinessWest


* Sep 26: Tallahassee, FL; “Export University 101: Introduction to Exporting“; EXIM

* Sep 27: London, UK; “Managing Sanctions & Anti-Corruption in Shipping Seminar“; The Nautical Institute

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

* Oct 2: New York, NY; “Sanctions Compliance Think Tank“; American Conference Institute

* Oct 2-3: Toronto, Canada; “Canadian Forum on Global Economic Sanctions Compliance & Enforcement“; The Canadian Institute

* Oct 3: Chicago, IL; “
Trade Compliance & Policy” C.H. Robinson

* Oct 3: Perth, Australia; “Defence Export Controls Outreach“; Australian DoD

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

* Oct 3-4: London, UK; “The WorldECR Export Controls & Sanctions Forum 2019“; WorldECR

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

* Oct 8: New York, NY; “Trade Compliance & Policy” C.H. Robinson* Oct 14-17; Columbus, OH; “
University Export Controls Seminar
“; ECTI

* Oct 10: Rancho Mirage, CA; “WESCCON 2019 Conference“; Pacific Coast Council

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

* Oct 15-16: Washington DC; “The WorldECR Export Controls & Sanctions Forum 2019“; WorldECR

* Oct 17: Grayslake, IL: “How to Write an Export Management Compliance Program (EMCP)“; Lake County Chamber of Commerce

* Oct 17: Leeds, UK; “
Strategic Export Control: Foundation Workshop“; UK/DIT
* Oct 17: Leeds, UK; “
Strategic Export Control: Licenses Workshop“; UK/DIT

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

* Oct 20-22: Grapevine, TX; “ICPA Fall Conference 2019“; ICPA

* Oct 21-25: Chicago, IL; “Certified Classification Specialist (CCLS)“; Amber Road

* Oct 22: Indianapolis, IN; “
Trade Compliance & Policy” C.H. Robinson

* Oct 24: New York, NY; “The Fundamentals of Export Regulatory Compliance“; NEXCO  

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

* Oct 29: Montreal, Canada; “
Trade Compliance & Policy” C.H. Robinson

* Oct 29: San Francisco, CA; “San Francisco Economic Sanctions Boot Camp“; American Conference Institute

* Oct 29-30; Tysons Corner, VA; “Conducting an internal Import/Export Audit“; Amber Road
* Oct 31: Toronto, Canada; “Trade Compliance & Policy” C.H. Robinson  

* Nov 7; Amsterdam, the Netherlands; “Annual International Trade & Compliance Conference“; Baker McKenzie

* Nov 12; Washington, DC; “2019 OFAC Fall Symposium“, Treasury/OFAC

* Nov 11-13; London, United Kingdom; “International Trade Finance Training Course“; IFF

* Nov 11-14; Washington, DC; “
ITAR Controls / EAR & OFAC Export Controls Seminar Series
“; ECTI

* Nov 13-14; Santa Clara, CA; “2019 Year-End Review of Import/Export Developments“; Baker McKenzie

* Nov 18: London, UK; “2nd Annual Navigating Russia Sanctions Complexities“; C5
* Nov 19-20: London, UK; “London Forum on Economic Sanctions“; C5

* Nov 19-21: Tysons Corner, VA; “Export Controls Specialist – Certification“; Amber Road

*
 
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

* Nov 27: Rotterdam, the Netherlands; “Incoterms 2020“; Fenex

* Dec 2-6: Tysons Corner, VA; “Certified Classification Specialist (CCLS)“; Amber Road

*
 
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 20-23; San Diego, CA; “ITAR Controls / EAR & OFAC Export Controls Seminar Series“, ECTI; 540-433-3977  

* Jan 22-23: New York, NY; “AML & OFAC for the Insurance Industry“; American Conference Institute  

* Jan 23: Orlando, FL; “Customs/Import Boot Camp“; Partnering for Compliance

*
 
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 17-20; Huntsville, AL; “
ITAR Controls / EAR & OFAC Export Controls Seminar Series
“, ECTI; 540-433-3977

* Feb 20-21; Berlin, Germany; “
14. Exportkontrolltag
“; ZAR

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

* Mar 2-5; Washington D.C.; “
ITAR Controls / EAR & OFAC Export Controls Seminar Series
“, ECTI; 540-433-3977

* Mar 3-5; Vienna, Austria; “Lehrgang Exportkontrolle & Export Compliance“; OPWZ

* Mar 10-12:  Orlando, FL; “‘Partnering for Compliance’ Export/Import Control Training and Education Program“; Partnering for Compliance

* Apr 22-23: Washington D.C.; “Economic Sanctions Enforcement and Compliance“;
American Conference Institute

* Apr 29-30: Washington DC; “Economic Sanctions Enforcement and Compliance“; American Conference Institute
* May 20-21: Berlin, Germany; “Berlin Forum on Global Economic Sanctions“; C5

* May 27-28: Hong Kong, China; “Hong Kong Summit on Economic Sanctions Enforcement and Compliance“;
American Conference Institute

* Jun 9-10: Shanghai, China; “China Forum for Legal and Compliance Officers“; American Conference Institute
* Jul 21-22: Washington DC; “FCPA High Risks Markets“; American Conference Institute

 
Webinars 



* Sep 24: Webinar: “Top 10 Mistakes Importers Make (and How to Avoid Them)“; Sandler, Travis and Rosenberg Trade Law

* Sep 25: Webinar: “
EAR
“; Global Training Center
* Sep 26: Webinar: “
ITAR
“; Global Training Center

* Oct 29: Webinar: “Key updates on export controls and sanctions“; Baker McKenzie

* Dec 10: Webinar: “ECCN Classification Numbers“; NCBFAA

* Dec 17: Webinar: “Managing Emerging Compliance Risks“; Baker McKenzie

 

2020
 
* Jan 14: Webinar: “Commodity Jurisdiction“; NCBFAA
* Apr 14: Webinar: “ACE Export Reports for Compliance“; NCBFAA

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

ENEDITOR’S NOTES

EN_a220
. Bartlett’s Unfamiliar Quotations

(Source: Editor)

 


Warren Buffett(Warren Edward Buffett; born 30 Aug 1930; is an American business magnate, investor, speaker and philanthropist who serves as the chairman and CEO of Berkshire Hathaway. He is considered one of the most successful investors in the world and has a net worth of $82.5 billion as of March 9, 2019, making him the third-wealthiest person in the world.)

– 
“Do not save what is left after spending, instead spend what is left after saving.”

Friday funnies (more State jokes):

* Pennsylvania: What do you call an Amish guy with his hand in a horse’s mouth?  A mechanic.

* Tennessee: Do you know what you get when you play a country record backward in Nashville?  You get your job back, your house back, your wife back, your dog back …

* Texas: Interpreting “Texanese”: “Y’all is singular. All y’all is plural. All y’all’s is plural possessive.”

back to top 

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

EN_a321. 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: 21 August 2019: 84 FR 43493-43501: Addition of Certain Entities to the Entity List and Revision of Entries on the Entity List and 84 FR 43487-43493: Temporary General License: Extension of Validity, Clarifications to Authorized Transactions, and Changes to Certification Statement Requirements

 

*
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 (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
.  
 

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: 30 Aug 2019, 84 FR 45652: 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 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 one business day after every ITAR amendment. (A new edition containing today’s amendment will be available Monday.) 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: 6 August 2019: 84 FR 38545 – August 2019 Amendments to Iranian Financial Sanctions Regulations and Iranian Human Rights Abuses Sanctions Regulations [amendment of 31 CFR Parts 561 and 562.]  
  

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: 13 Aug 2019: Harmonized System Update (HSU) 1914  
  – HTS codes for AES are available here.
  – HTS codes that are not valid for AES are available here.

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

EN_a422
. 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; and Assistant Editors, Alex 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 cannot be relied upon as legal or expert advice.  Consult your own legal counsel or compliance specialists before taking actions based upon news items or opinions from this or other unofficial sources.  If any U.S. federal tax issue is discussed in this communication, it was not intended or written by the author or sender for tax or legal advice, and cannot be used for the purpose of avoiding penalties under the Internal Revenue Code or promoting, marketing, or recommending to another party any transaction or tax-related matter.

* SUBSCRIPTIONS: Subscriptions are free.  Subscribe by completing the request form on the Full Circle Compliance website.

* BACK ISSUES: An archive of Daily Bugle publications from 2005 to present is available HERE.

* TO UNSUBSCRIBE: Use the Safe Unsubscribe link below.

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