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19-0904 Wednesday “Daily Bugle.”

19-0904 Wednesday “Daily Bugle”

Wednesday, 4 September 2019

TOP
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. Treasury/OFAC Issues Nicaragua Sanctions Regulations 
  1. Items Scheduled for Publication in Future Federal Register Editions 
  2. Commerce/BIS: (No new postings.) 
  3. DoD/DSCA Announces New Website Launch on October 1
  4. State: “U.S. Government Guidance for the Export of Hardware, Software, and Technology with Surveillance Capabilities and/or Parts/Know-How”
  5. Japan METI: “Japan’s Opinions and Questions Regarding the Plans of the ROK to Revise the Public Notice of the Exportation and Importation of Strategic Items”
  1. American Shipper: “Commerce Stresses Due Diligence with Exports to Pakistan”
  2. Deutsche Welle: “US Sanctions Iran Space Agency Over Alleged Ballistic Missiles”
  3. ST&R Trade Report: “Customs Broker Management Added to ACE Schedule, Other Functionality Pushed Back”
  1. R. Bickerstaff: “Post-Brexit Software Exports between the EU and the UK”
  2. T. Hoffman, M. Wilhelm & M. Richer: “Incoterms 2020 – Everything you should know”
  1. ECTI Presents United States Export Control (ITAR/EAR/OFAC) Seminar Series in Washington, DC 
  2. FCC Presents “Designing an ICP for Export Controls & Sanctions”, 1 Oct 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 (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 2018), DOS/ITAR (19 Apr 2019), DOT/FACR/OFAC (4 Sep 2019), HTSUS (3 Sep 2019) 
  3. Weekly Highlights of the Daily Bugle Top Stories 

EXIMITEMS FROM TODAY’S FEDERAL REGISTER

EXIM_a11. Treasury/OFAC Issues Nicaragua Sanctions Regulations

(Source: Federal Register, 4 Sep 2019.) [Excerpts.]
 
84 FR 46440-46448: Nicaragua Sanctions Regulations
 
* AGENCY: Office of Foreign Assets Control, Treasury.
* ACTION: Final rule.
* SUMMARY: The Department of the Treasury’s Office of Foreign Assets Control (OFAC) is adding regulations to implement Executive Order 13851 of November 27, 2018 (“Blocking Property of Certain Persons Contributing to the Situation in Nicaragua”). OFAC intends to supplement these regulations with a more comprehensive set of regulations, which may include additional interpretive and definitional guidance, general licenses, and statements of licensing policy.
* DATES: Effective: September 4, 2019.
* FOR FURTHER INFORMATION CONTACT: OFAC: Assistant Director for Licensing, tel.: 202-622-2480; Assistant Director for Regulatory Affairs, tel.: 202-622-4855; or Assistant Director for Sanctions
* SUPPLEMENTARY INFORMATION: …
On November 27, 2018, the President, invoking the authority of, inter alia, the International Emergency Economic Powers Act (50 U.S.C. 1701-1706) (IEEPA), issued Executive Order 13851 (83 FR 61505, November 29, 2018) (E.O. 13851).
 
In E.O. 13851, the President determined that the situation in Nicaragua, including the violent response by the Government of Nicaragua to the protests that began on April 18, 2018, and the Ortega regime’s systematic dismantling and undermining of democratic institutions and the rule of law, its use of indiscriminate violence and repressive tactics against civilians, and its corruption leading to the destabilization of Nicaragua’s economy, constitute an unusual and extraordinary threat to the national security and foreign policy of the United States, and declared a national emergency to deal with that threat.
 
OFAC is issuing the Nicaragua Sanctions Regulations, 31 CFR part 582 (the “Regulations”), to implement E.O. 13851, pursuant to authorities delegated to the Secretary of the Treasury in E.O. 13851. A copy of E.O. 13851 appears in appendix A to this part.
 
The Regulations are being published in abbreviated form at this time for the purpose of providing immediate guidance to the public. OFAC intends to supplement this part 582 with a more comprehensive set of regulations, which may include additional interpretive and definitional guidance, general licenses, and statements of licensing policy. The appendix to the Regulations will be removed when OFAC supplements this part with a more comprehensive set of regulations. …

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OGSOTHER GOVERNMENT SOURCES

OGS_a12. Items Scheduled for Publication in Future Federal Register Editions
(Source: Federal Register, 4 September 2019.)

* Treasury/OFAC; NOTICES; Blocking or Unblocking of Persons and Properties [Pub. Date: 5 Sep 2019.]

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OGS_a23
.
Commerce/BIS (No new postings.)

(Source: Commerce/BIS)

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OGS_a34
.
DoD/DSCA Announces New Website Launch on October 1
(Source:
DoD/DSCA, 4 Sep 2019.)
 
On October 1, the Defense Counterintelligence and Security Agency (DCSA) will launch its brand-new website – DCSA.mil. While the DSS website will initially reroute to DCSA.mil, we would like to remind you that any saved bookmarks will no longer work with the new site and you will need to update them in your browser. For any questions, suggestions, feedback or comments, please email us at DCSA.pa@mail.mil.

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OGS_a45.
State: “U.S. Government Guidance for the Export of Hardware, Software, and Technology with Surveillance Capabilities and/or Parts/Know-How”
(Source: Jenny Stein, SteinJL@state.gov, 4 Sep 2019.)
 
The U.S. Department of State is developing guidance for exporters of items with intended and unintended surveillance capabilities.  The guidance seeks to provide insight to exporters on considerations to weigh prior to exporting these items.  It also offers businesses greater understanding of the human rights concerns the U.S. government may have with the export.
 
We are posting the draft guidance – entitled, “U.S. Government Guidance for the Export of Hardware, Software and Technology with Surveillance Capabilities and/or Parts/Know-How” –  for the next 30 days to solicit feedback from the public to help strengthen the document.  The draft guidance can be found here.  We encourage you to be as specific as possible in your suggested input (e.g. line edits, and accompanying rationale, are welcome). On October 4, 2019, we will remove the draft guidance from this website and will work to finalize the draft.  For those interested, please send your feedback to IFBHR@state.gov.  We thank you in advance!
 
Jenny Stein, Special Advisor, Business and Human Rights and Internet Freedom, Bureau of Democracy, Human Rights and Labor, U.S. Department of State, SteinJL@state.gov, (202) 663-2652

 

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OGS_a56 
. Japan METI: “Japan’s Opinions and Questions Regarding the Plans of the ROK to Revise the Public Notice of the Exportation and Importation of Strategic Items”
(Source:
METI, 3 Sep 2019.)
 
The Japanese Ministry of Economy, Trade and Industry (METI) has published the following document on its website:
 

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NWSNEWS

NWS_a17.
American Shipper: “Commerce Stresses Due Diligence with Exports to Pakistan”
(Source: American Shipper, 3 Sep 2019.) [Excerpts.]
 
The BIS Office of Export Enforcement has “revealed schemes” by Pakistani entities attempting to acquire U.S. technologies to support the country’s nuclear program.
 
The U.S. Commerce Department’s Bureau of Industry and Security (BIS) has published “due diligence” guidance urging companies to use extra care when exporting to Pakistan.
 
BIS has stepped up its attention toward Pakistan after the agency’s Office of Export Enforcement investigations “revealed schemes to export items subject to the EAR (Export Administration Regulations) to nuclear- and missile-related entities in Pakistan listed on the Entity List without the required licenses.”
 
The agency first imposed export controls on Pakistan since 1992. These controls were intensified by BIS after Pakistan detonated a nuclear device in 1998.
 
BIS routinely adds Pakistani firms and individuals to its Entity List for their efforts to import U.S.-made technology for use in the country’s nuclear program, including most recently Engineering and Commercial Services and Solutions Engineering. …

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NWS_a28
.
Deutsche Welle: “US Sanctions Iran Space Agency Over Alleged Ballistic Missiles”
(Source: Deutsche Welle, 3 Sep 2019. [Excerpts.]
 
The Trump administration has sanctioned three Iranian space organizations, alleging a cover up for missile work. The US has said the orders serve as an international warning about Tehran’s nuclear abilities.
 
The US has for the first time imposed sanctions on Iran’s civilian space agency as well as two research organizations, which it accused of developing ballistic missiles.
 
The US State and Treasury departments made the announcement on Tuesday, alleging that the Iran Space Agency, the Iran Space Research Center, and the Astronautics Research Institute were advancing Tehran’s missile program under the cover of a civilian mission to launch satellites into orbit. …
 
Under the new sanctions, all US citizens and residents would be held criminally responsible for engaging with Iran’s space program.
 
Any foreign companies and governments, as well as international space cooperation organizations, can be subject to penalties if found to have any involvement with the Iranian space institutions.
 
The White House would also freeze any of the Iran space agency’s assets in US jurisdictions, though it is unlikely there would be any given the current state of the relationship between the two countries. …

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NWS_a39.
ST&R Trade Report: “Customs Broker Management Added to ACE Schedule, Other Functionality Pushed Back”
 
U.S. Customs and Border Protection has added some functionality to its Automated Commercial Environment deployment schedule and has also delayed the deployment of some other functions. CBP notes that the updated schedule set forth below is subject to change.
 
ACE functionality, including data reports, can help importers and others boost compliance and duty savings efforts. For more information, please contact customs attorney Lenny Feldman at (305) 894-1011.
 
Section 321 Shipments. CBP still plans to automate data collection on shipments under section 321 (which allows up to $800 worth of goods to be imported free of duty and tax by one person on one day) as of Sept. 28. The development of an entry type 86 for ABI submission of section 321 shipments is expected to give CBP greater visibility into low-value shipments, provide partner government agencies with required data on such shipments, and allow filers to transmit transaction data (e.g., manufacturer, importer, and consignee information) via ABI and receive electronic release messages from CBP for such shipments.
 
AD/CV Redesign. CBP has pushed back from Sept. 14 to Oct. 5 the deployment of functionality that will enhance the antidumping/countervailing duty order case management user interface and provide for streamlined input and searchability. Among other things, search results will include company history and third-country case information.
 
Broker Management. CBP is planning to streamline the employee reporting process for customs brokers, enhance messaging to the field broker management officers, and automate the generation of broker licenses and permits in ACE as of Sept. 28. CBP has also targeted August 2020 for transitioning all brokers to a single national permit, which will eliminate multiple district permits and waivers.
 
Collections. Release 1, focusing on the back end processing of automated clearinghouse debit/credit transactions, is now scheduled to be deployed Sept. 7.
 
Mass Processing. Enhancements to the mass liquidation functionality and a new mass update capability for post-release activity are newly scheduled to be deployed Nov. 23.

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COMMCOMMENTARY

COM_a1
10
.
R. Bickerstaff: “Post-Brexit Software Exports between the EU and the UK”
(Source: Bird&Bird, 3 Sep 2019.) [Excerpts.]
 
Author: Roger Bickerstaff, Esq., Bird&Bird UK, roger.bickerstaff@twobirds.com, +44 (0)20 7415 6000.
 
The export of certain categories of software, and particularly encryption software, is controlled by export control regulations in the UK and the EU. Following Brexit, exporters of software (including where software is embedded in physical products) will have to consider the added dimension of export and import of controlled software between the EU and UK and vice versa.
 
This issue is relevant to software companies which distribute software between the UK and the EU (and vice versa). These companies will need to ensure that their software distribution arrangements are compliant with the export regulations. It is also relevant to software licensees. A great many software licences require the software licensee to comply with applicable software licensing law. A breach of the export regulations may result in a breach of the terms of a software license.
 
Post Brexit, both software suppliers and user companies that have operations in both the UK and EU-27 countries may need to obtain export licences or to take administration steps in order to achieve compliance.
 
Non-compliance with the export controls regulatory regime can result in fines being levied and individuals can be given prison sentences in some circumstances. … 

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COM_a2
11
.
T. Hoffman, M. Wilhelm & M. Richer: “Incoterms 2020 – Everything you should know”
(Source:
Mayer Brown, 2 Sep 2019.)
 
* Authors: Tina Hoffmann, Esq., thoffmann@mayerbrown.com; Dr. Marco Wilhelm, Esq., mwilhelm@mayerbrown.com; and Dr. Malte Richter LLM, Esq., mrichter@mayerbrown.com; all of Mayer Brown.
 
In international and domestic trade, it is often required to regulate the allocation of rights and obligations between the parties briefly and clearly. For this purpose, the internationally recognized International Commercial Terms (Incoterms) are often used. These are provisions regulating important rights of purchasers and sellers, in particular the allocation of risk of loss, but also of the responsibilities with regard to transport, insurance as well as costs.
 
The currently valid Incoterms, the Incoterms 2010, entered into force on 1 January 2011 and covered current developments in commercial practice and transport at the time. Now, the International Chamber of Commerce is about to publish its latest amendments, introducing the Incoterms 2020, which will become effective 1 January 2020. This White Paper briefly describes the current Incoterms 2010 as well as the most likely amendments to be expected with the new Incoterms 2020.
 
Downloads the White Paper: The Incoterms 2020

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TEEX/IM TRAINING EVENTS & CONFERENCES

TE_a112.
ECTI Presents United States Export Control (ITAR/EAR/OFAC
)
 
Seminar Series in Washington, DC
(Source: Jill Kincaid)
 
* What: United States Export Control (ITAR/EAR/OFAC) Seminar Series in Washington, DC
* When: ITAR Seminar: November 11-12, 2019; EAR/OFAC Seminar: November 13-14, 2019
* Where: Embassy Suites Alexandria Old Town
* Sponsor: Export Compliance Training Institute (ECTI)
* ECTI Speaker Panel: Scott Gearity, Greg Creeser, Melissa Proctor, Marc Binder and Timothy O’Toole
* Register here, or Jessica Lemon, 540-433-3977.

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TE_a213. FCC Presents “Designing an ICP for Export Controls & Sanctions”, 1 Oct in Bruchem, the Netherlands

 
This training course is designed for compliance officers, managers, and other professionals who aim to enhance their organization’s compliance efforts. The course will cover multiple topics and tackle various key questions, including but not limited to:
– Setting the Scene: ensuring compliance in the export control and sanctions arena
– What is expected from your organization? A closer look at the official frameworks and guidelines from U.S. and European government agencies
– Key elements of an ICP
– Best practice tips for enhancing your current compliance efforts  
– Internal controls samples (policies, procedures, instructions)
– Strategic benefits of having an ICP.
* What: Designing an Internal Compliance Program (ICP) for Export Controls & Sanctions
* Date: Tuesday, 1 Oct 2019
* Location: Full Circle Compliance, Landgoed Groenhoven, Dorpsstraat 6, Bruchem, The Netherlands
* Times:
  – Registration and welcome: 9.00 am – 9.30 am
  – Training course hours: 9.30 am – 4.30 pm
* Level: Intermediate
* Target Audience:  the course provides valuable insights for both compliance professionals, employees and (senior / middle) management working in any industry subject to U.S. and/or EU (member state) export control laws and sanctions regulations.
* Instructors: Drs. Ghislaine C.Y. Gillessen RA and Marco M. Crombach MSc.
* Information & Registration: click
here or contact us at 
events@fullcirclecompliance.eu or 31 (0)23 – 844 – 9046.  

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ENEDITOR’S NOTES

 

* Paul Harvey
(Paul Harvey Aurandt; 4 Sep 1918 – 28 Feb 2009; was a conservative American radio broadcaster for the ABC Radio Networks. He broadcast “Paul Harvey News and Comment” on weekday mornings and mid-days and at noon on Saturdays, as well as his famous “The Rest of the Story” segments, described as a blend of mystery and history. From 1952 through 2008, his programs reached as many as 24 million people a week. Paul Harvey News was carried on 1,200 radio stations, 400 American Forces Network stations, and 300 newspapers.
– “Like what you do. If you don’t like it, do something else.
– “When your outgo exceeds your income, the upshot may be your downfall.”
 

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EN_a315
. Are Your Copies of Regulations Up to Date?
(Source: Editor)

 

*
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:
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 July 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 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 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, Adjustment of Controls for Lower Performing Radar and Continued Temporary Modification of Category XI of the United States Munitions List.  
  – The only available fully updated copy (latest edition: 30 August 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 email, 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: 4 Sep 2019:
84 FR 46440-46448 – Nicaragua Sanctions Regulations

  

* 
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: 4 Sep 2019: Harmonized System Update (HSU) 1915    

 – HTS codes for AES are available here.
 – HTS codes that are not valid for AES are available here.

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EN_a0316
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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EPEDITORIAL POLICY

* The Ex/Im Daily Update is a publication of FCC Advisory B.V., compiled by: Editor, James E. Bartlett III; and Assistant Editor, Alexander Witt. The Ex/Im Daily Update is emailed every business day to approximately 7,500 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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