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19-0910 Tuesday “Daily Bugle”

19-0910 Tuesday “Daily Bugle”

Tuesday, 10 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. DoD, GSA, and NASA Finalize Rule Banning Kaspersky Products from Government Contracts 
  1. Items Scheduled for Publication in Future Federal Register Editions 
  2. Commerce/BIS: (No new postings.) 
  3. State/DDTC: (No new postings.)
  4. Treasury/OFAC Targets Wide Range of Terrorists and Their Supporters Using Enhanced Counterterrorism Sanctions Authorities
  5. UK Amends the Export Control (Sanctions) Order 2019
  1. CNBC: “US Treasury Warns Shipping Industry Against Doing Business with Iran and ‘Oil-For-Terror’ Networks”
  2. FT: “BAE Chief Stands by Saudi Arabia Deals in Spite of Backlash”
  3. Reuters: “Huawei Drops Lawsuit Against U.S. Over Seized Equipment”
  1. M. C. Hamilton: “The LVS License Exception: What is it and How Does it Work?”
  2. Reach Further Blog: “US Export Compliance 101: Screening is Your First Defense”
  1. ECS Presents “ITAR/EAR Boot Camp: Achieving Compliance” on 8-9 Oct in Savannah, GA 
  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 (30 Aug 2019), DOT/FACR/OFAC (9 Sep 2019), HTSUS (3 Sep 2019) 
  3. Weekly Highlights of the Daily Bugle Top Stories 

EXIMITEMS FROM TODAY’S FEDERAL REGISTER

EXIM_a11. DoD, GSA, and NASA Finalize Rule Banning Kaspersky Products from Government Contracts

(Source: Federal Register, 10 Sep 2019.) [Excerpts.]
 
84 FR 47861-47862: Federal Acquisition Regulation: Use of Products and Services of Kaspersky Lab
 
* AGENCY: Department of Defense (DoD), General Services Administration (GSA), and National Aeronautics and Space Administration (NASA).
* ACTION: Final rule.
* SUMMARY: DoD, GSA, and NASA are adopting as final, without change, an interim rule amending the Federal Acquisition Regulation (FAR) to implement a section of the National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2018.
* DATES: Effective September 10, 2019.
* FOR FURTHER INFORMATION CONTACT:…
SUPPLEMENTARY INFORMATION:
 
I. Background
 
DoD, GSA, and NASA published an interim rule in the Federal Register at 83 FR 28141 on June 15, 2018, to revise the FAR to implement section 1634 of Division A of the NDAA for FY 2018 (Pub. L.
115-91). Section 1634 of this law prohibits the use of products or services of Kaspersky Lab and its related entities by the Federal Government on or after October 1, 2018.
 
The interim rule amended FAR part 4, adding a new subpart 4.20, Prohibition on Contracting for Hardware, Software, and Services Developed or Provided by Kaspersky Lab, with a corresponding new contract clause at 52.204-23, Prohibition on Contracting for Hardware, Software, and Services Developed or Provided by Kaspersky Lab and Other Covered Entities. The interim rule also added text in subpart 13.2, Actions at or Below the Micro-Purchase Threshold, to address section 1634 with regard to micro-purchases. To implement section 1634, the clause at 52.204-23 prohibits contractors from providing any hardware, software, or services developed or provided by Kaspersky Lab or its related entities, or using any such hardware, software, or services in the development of data or deliverables first produced in the performance of the contract. The contractor must also report any such hardware, software, or services discovered during contract performance; this requirement flows down to subcontractors. For clarity, the rule defines “covered entity” and “covered article”. A covered entity includes the entities described in section 1634. A covered article includes hardware, software, or services that the Federal Government will use on or after October 1, 2018. The public comment period ended August 14, 2018. …
 
C. Determinations
 
With the publication of the interim rule the FAR Council has determined it was in the best interest of the Government to apply the rule to contracts at or below the SAT and for the acquisition of
commercial items. Likewise, the Administrator for Federal Procurement Policy determined it was in the best interest of the Government to apply this rule to contracts for the acquisition of COTS items.
 
While the law does not specifically address acquisitions of commercial items, including COTS items, there is an unacceptable level of risk for the Government in buying hardware, software, or services developed or provided in whole or in part by Kaspersky Lab. This level of risk is not alleviated by the fact that the item being acquired has been sold or offered for sale to the general public, either in the same form or a modified form as sold to the Government (i.e., that it is a commercial item or COTS item), nor by the small size of the purchase (i.e., at or below the SAT). As a result, agencies may face increased exposure for violating the law and unknowingly acquiring a covered article absent coverage of these types of acquisitions by this rule. …

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OGSOTHER GOVERNMENT SOURCES

OGS_a12. Items Scheduled for Publication in Future Federal Register Editions
(Source: Federal Register, 10 September 2019.)

* President; ADMINISTRATIVE ORDERS; U.S. Elections, Foreign Interference and Undermining Public Confidence; Continuation of National Emergency (Notice of September 10, 2019) [Pub. Date: 11 Sep 2019.]

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OGS_a23
.
Commerce/BIS (No new postings.)

(Source: Commerce/BIS)

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OGS_a45
.
Treasury/OFAC Targets Wide Range of Terrorists and Their Supporters Using Enhanced Counterterrorism Sanctions Authorities
(Source:
Treasury/OFAC, 10 Sep 2019.) [Excerpts.]
 
Today, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) utilized newly enhanced counterterrorism sanctions authorities to designate a series of terrorist leaders, facilitators, and entities. Equipped with new tools from President Trump’s recently updated Executive Order (E.O.) 13224, which became effective today, Treasury designated 15 leaders, individuals, and entities affiliated with terror groups. Today’s action targets a wide array of groups, including entities affiliated with HAMAS, the Islamic State of Iraq and Syria (ISIS), al-Qa’ida, and the Islamic Revolutionary Guard Corps Qods-Force (IRGC-QF), and combined with actions taken by the State Department amounts to some of the furthest reaching designations of terrorists and their supporters in the past 15 years.
 
“Since the horrific attacks of 9/11, the U.S. government has refocused its counterterrorism efforts to constantly adapt to emerging threats. President Trump’s modernized counterterrorism Executive Order enhances the authorities we use to target the finances of terror groups and their leaders to ensure they are as robust as possible,” said Secretary Steven T. Mnuchin. “These new authorities will allow the U.S. Government to starve terrorists of resources they need to attack the United States and our allies, and will hold foreign financial institutions who continue to do business with them accountable. These new tools aid our unrelenting efforts to cut off terrorists from their sources of support and deprive them of the funds required to carry out their destructive activities. They serve as a powerful deterrent to radical terror groups and those seeking to aid their nefarious goals.” …

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OGS_a56
.
UK Amends the Export Control (Sanctions) Order 2019
(Source: UK GOV, 9 Sep 2019.) [Summary written by Ray Todd on raytodd.blog.]
 
This Order amends existing statutory instruments which provide for the implementation of EU sanctions regulations in the UK – in response to changes that have been made to EU Regulations. The changes also correct some aspects of existing UK law, with the aim of ensuring that penalties and other provisions in UK law effectively implement the UK’s obligations.
 

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NWSNEWS

NWS_a17. 
CNBC: “US Treasury Warns Shipping Industry Against Doing Business with Iran and ‘Oil-For-Terror’ Networks”
(Source: CNBC, 9 Sep 2019.) [Excerpts.]
 
Iran’s Revolutionary Guard Corps and its external Quds Force are still moving oil worth hundreds of millions of dollars through sprawling illicit shipping networks, despite a maximum pressure sanctions regime from Washington and scores of corporate and government entities blacklisted.
 
Washington is working to crack down on this, the U.S. Treasury Department says, and it’s warning those in the maritime industry to be wary of involvement with regimes or entities that have been deemed terror sponsors by the U.S. – or face steep costs. …
 
The U.S. has long designated the Iranian-sponsored Lebanese militant group Hezbollah as an SDGT under the order, and more recently brought Iran’s Islamic Revolutionary Guard Corps into that group, the first time a government entity has been so designated — leading Iran to in turn brand all U.S. military personnel in the Middle East as terrorists. Tehran rejects the U.S. designation, and has called Washington’s sanctions “economic terrorism.” …

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NWS_a28

FT: “BAE Chief Stands by Saudi Arabia Deals in Spite of Backlash”
(Source:
Financial Times, 10 Sep 2019.) [Excerpts.]
 
BAE Systems’ chief executive Charles Woodburn will be among those running the gauntlet of human rights activists descending on London this week to protest at the ethics of Saudi Arabia after the murder of journalist Jamal Khashoggi.
 
But the head of Britain’s biggest defence company is making no apologies. Saudi Arabia is one of the group’s largest export markets and its dealings with the regime are a fact of life for a big defence contractor. …

The company, whose 85,000 employees build everything from F-35 fighter jets to nuclear submarines and combat vehicles, is the lead industrial partner for the pan-European Eurofighter consortium in Saudi Arabia and is responsible for the maintenance and support of the kingdom’s 72 jets. …

It is in the US where some analysts question BAE’s future direction in the wake of a flurry of deals; Raytheon is merging with the aerospace arm of UTC to create a $120bn all-American giant, while L3 Technologies last year unveiled a tie-up with Harris Corp. …

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NWS_a39

Reuters: “Huawei Drops Lawsuit Against U.S. Over Seized Equipment”
(Source: Reuters, 10 Sep 2019.) [Excerpts.]
 
China’s Huawei Technologies Co Ltd has dropped a lawsuit against the U.S. government after Washington released telecommunications equipment it had seized on suspicion of violations of export controls, according to a court filing on Monday.
 
Huawei, which has been placed on a U.S. trade blacklist since May, had sued the Commerce Department and other U.S. government agencies for seizing its equipment in Alaska in 2017 en route back to China after a lab test in California.
 
Huawei said the U.S. government returned the equipment in August after confirming no export license was required and it decided to drop the suit. …

 

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COMMCOMMENTARY

COM_a1
10
.
 
M.C. Hamilton: “The LVS License Exception: What is it and How Does it Work?”

(Source: Tucker Arensberg, 9 Sep 2019.)
 
* Author; Mark C. Hamilton, Esq., Tucker Arensberg, P.C., mhamilton@tuckerlaw.com, 412-594-5558.
 
So your company has a new overseas customer that requires several low value shipments this year. But when you check the Commerce Control List you discover this new business will require an export license. What do you do? You should first check to see if the “LVS” license exception applies.
 
LVS is for single shipments of limited value to Country Group B destinations. The details are found at 15 CFR Part 740.3, but here are the basics:
 
Let’s say you are exporting computer equipment classified as Export Control Classification Number (“ECCN”) 4A004, which has an LVS exception of up to $5,000. LVS will allow you to ship the equipment without an export license so long as (1) the net value does not exceed $5,000 and (2) you are shipping to a Country Group B destination. This includes almost all countries. See Supplement No. 1 to Part 740 for the entire Country Group B list.
 
Here are a few wrinkles you should know about:
 
– An LVS shipment can include more than one order so long as its net value is below the LVS value specified by the commodity’s ECCN.
– You cannot split up orders in order to meet the LVS dollar limit.
– The total value of LVS exports to the same customer in a calendar year cannot exceed twelve times the applicable LVS value limit. There is no restriction on the number of orders so long as the annual LVS value limit per ECCN is not exceeded.
– An order may include commodities controlled under different ECCNs, but the net value of the commodities controlled under each ECCN shall not exceed the LVS limit specified for that ECCN.
 
For example, if an $8,000 order includes commodities controlled under two different ECCNs, each with an LVS limit of $5,000, you can ship so long as neither commodity alone exceeds $5,000 in value.
 
– Finally, always read the entire ECCN entry. There may be specific restrictions to LVS applicability depending on the destination and reason for control.
 
That’s the LVS exception in a nutshell. Obviously, it can be a real life-saver if your company does only limited amounts of business with a specific customer each year.

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COM_a2
11

Reach Further Blog: “US Export Compliance 101: Screening is Your First Defense”
(Source: East-West Bank, by Angela Bao, 9 Sep 2019.) [Excerpts.]
 
Staying compliant with export regulations means staying competitive in your industry.
 
Whether you are a small business, a large corporation or just getting into exporting, understanding and maintaining export compliance is crucial to your company’s health and longevity. Especially during the current global trade tensions, knowing, complying with and staying up-to-date with all the relevant regulations is especially important for business continuity. If you don’t, you could be subject to fines, denial of export privileges and, in extreme cases, even imprisonment. It’s more important now than ever for companies to take initiative and develop their own internal export compliance programs.
 
Over the past few years, the United States has increasingly cited national security concerns as reasons for enhanced export controls, says Paula Murphy, director of the Massachusetts Export Center. The restricted parties lists are constantly being updated, so it’s important for companies to check at each stage of exporting so they don’t run into compliance issues, adds Allen Yao, vice president of trade risk operations at East West Bank. Otherwise, they won’t be able to complete their export transactions and conduct business. “They really need to be well-versed in these regulations and compliant with them, in order to remain competitive,” emphasizes Murphy.
Every company’s first line of defense is to develop proper screening procedures. “This is one of the most critical steps for export compliance, and it’s also one of the most overlooked, especially for small business exporters,” shares Murphy. “It’s unfortunately not unusual for us to go to a company, and they aren’t even aware they need to be screening, or that they have insufficient screening operations.” … 
 
There are several factors businesses need to consider when screening their export transactions, some of which may overlap:
 
(1) Restricted parties. Ensures that export transactions do not involve organizations, companies or individuals that any U.S. government agency has identified as prohibited.
 
(2) Sanctions. Ensures that transactions do not involve restricted countries or sanctioned parties. “The key list for sanctioned parties, which is the specially designated nationals (SDNs) list, also has ownership restrictions in place,” adds Murphy.
 
Specifically, Murphy says that a party involved in a U.S. export transaction cannot be 50 percent or more owned by one or more SDNs. “When you’re doing business in countries where there’s a prevalence of SDNs, screening needs to be enhanced to include ownership,” she advises.
 
(3) End-use or user. Some products may have dual uses, where it can have a conventional use, but could potentially be used for something prohibited, such as to make a weapon of mass destruction. Businesses must check the Export Administration Regulations (EAR) and the International Traffic in Arms Regulations (ITAR), which controls defense-related products and services, to make sure that your product’s end-use is compliant. Murphy adds that in the past 10 years, there has been a significant export control initiative where a lot of items that were included under ITAR are now under EAR, so it’s important for businesses to check both lists. If the end-use is involved in any of the listed functions below (detailed more thoroughly in part 744 of the EAR), then those products may require a license to export.
 
– Weapons of mass destruction
– Nuclear activities (e.g., nuclear reactors)
– Rocket systems (e.g., space launch vehicles)
– Unmanned air vehicles.
 
Yao also recommends that businesses screen against the U.S. Department of Commerce, Bureau of Industry and Security’s (BIS) Unverified List (UVL), which he says is a list of companies that the BIS “could not verify as bona fide because the end-user check could not be completed to a satisfactory level.” Parties on the UVL cannot receive items subject to the EAR, even with license exceptions.
 
(4) Red flags. The EAR defines red flags as “any abnormal circumstances in a transaction that indicate that the export may be destined for an inappropriate end-use, end-user, or destination.” The BIS has put together a list of red flag indicators for exporters to screen against.
 
(5) Anti-boycott. U.S. companies are prohibited from engaging in activities that directly or indirectly support certain boycotts in foreign countries, particularly the boycott of Israel by the Arab League.
 
(6) Illegal diversion. Also referred to as transshipment, illegal diversion is when a business sells a product to a foreign customer, and then that customer resells that product to a prohibited entity or for a prohibited end-use.
 
Developing export screening procedures
 
Screening can be one of the biggest challenges for a business because there are no regulatory guidelines, shares Murphy. Each individual company will also require different levels of screening, depending on the size of their exports, where they are exporting and what their products are. However, Murphy emphasizes that it’s important for companies to conduct their own risk analysis and determine what works best for them, while minimizing the disruption of business.
 
“Exporters must determine the lists they need to screen against. At a minimum, they need to be screening against all 11 lists maintained by the U.S. government that restrict exports, re-exports and transfer of items,” suggests Murphy. “But companies operating globally might choose to screen against additional lists that might be relevant to foreign jurisdictions where they operate.”
 
Businesses that don’t export large volumes can usually get away with manually screening for each transaction or use the screening tools the U.S. government provides, such as the Consolidated Screening List, which is ideal for businesses with low-to-moderate export volumes. For businesses that deal with higher volumes, there are tools and services that can automate the screening process, such as global trade management systems Amber Road, Integration Point and BluJay Solutions, among many others.
Assess the risk
 
There are a number of factors that businesses need to consider when developing screening procedures. “Export volume will help to determine the method of screening, and sales and production cycles will help determine the frequency of screening,” adds Murphy. “But exporters should also assess their information systems to determine where and how screening can be best integrated.”
 
For instance, many exporters sell through distributors, but if they know who the distributors’ end customers are, then they should expand their scope of screening to include those end customers. Some companies may want to have their distributors handle the end-use and user screening, but Murphy warns that, ultimately, the exporters will still be liable for any violations.
 
Yao emphasizes, “The exporter needs to perform due diligence on the parties they are doing business with, and follow the U.S. Export Administration Regulations closely and regularly. If they miss new names and new requirements, the exporter will face great penalties and other regulatory enforcement.”
 
At the very minimum, companies need to screen immediately before shipping out their goods, but in some cases where risks are higher, companies should be screening at several intervals. “Many companies screen upon order receipt and immediately before shipping, as restricted parties may be added to federal lists at any time,” says Murphy. For instances in which transactions require further screening efforts, she recommends that companies include “screening escalation” as part of their operating procedures so that they are prepared to handle the additional workload.
 
Train employees and vendors on regulatory compliance
 
The best way to ensure regulatory compliance is to educate company management and employees on what to look for and train them on company screening procedures. “In order to develop an export compliance program, develop an export compliance committee to pull the whole program together,” recommends Kathleen Kinahan-Newell, international trade compliance manager at the Massachusetts Export Center. “This would involve a representative from a multitude of divisions within the company-legal, sales, order entry, order management, your financing department-so they might catch any antiboycott language, shipping, engineering when they are developing products.”
 
After appointing a team leader, they should review the company processes currently in place and then determine where to best incorporate compliance aspects that cover all the potential risks while minimizing the disruption of business. Afterward, Kinahan-Newell says to distribute the procedural guidelines to employees, preferably someplace that is digital, centralized and easily accessible, such as an intranet.
 
She adds, “Train the personnel on these new procedures, and audit on a regular basis. Internal audit maybe every six months, and external audit every year. It’s a living document-go back and make changes to your compliance programs. As regulations change, make sure you make changes to your document, as well, and provide that information to your personnel.”

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TEEX/IM TRAINING EVENTS & CONFERENCES

TE_a112.
ECS Presents “ITAR/EAR Boot Camp: Achieving Compliance” on 8-9 Oct in Savannah, GA

(Source: ECS)
 
* What: ECS ITAR/EAR Boot Camp:  Achieving Compliance
* When: October 8-9, 2019

* Sponsor:  Export Compliance Solutions & Consulting (ECS)
* ECS Instructors:  Suzanne Palmer, Mal Zerden
* Registe

here
 or by calling 866-238-4018 or email 
spalmer@exportcompliancesolutions.com
.

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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

 

* Arnold Palmer (Arnold Daniel Palmer; 10 Sep 1929 – 25 Sep 2016; was an American professional golfer who is generally regarded as one of the greatest and most charismatic players in the sport’s history. In a career spanning more than six decades, he won 62 PGA Tour titles from 1955 to 1973. As of today, he is fifth on the Tour’s all-time victory list, trailing only Sam Snead, Tiger Woods, Jack Nicklaus, and Ben Hogan.)
– “The most rewarding things you do in life are often the ones that look like they cannot be done.”

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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: 9 Sep 2019:
 84 FR 47121-47123 – Cuban Assets Control 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.

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* 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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