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19-1003 Thursday “Daily Bugle'”

19-1003 Thursday “Daily Bugle”

Thursday, 3 October 2019

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The Daily Bugle is a free daily newsletter from Full Circle Compliance, containing changes to export/import regulations (ATF, DOE/NRC, Customs, NISPOM, EAR, FACR/OFAC, FAR/DFARS, FTR/AES, HTSUS, and ITAR), plus news and events. Subscribe here. Contact us for advertising 

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[No items of interest today.]
  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: (No new postings.)
  1. American Shipper: “G.E. Pays 2.7 Million Fine for Cuba Sanctions Violations”
  1. M. Miller: “European Union Section 301 Duties”
  1. ECS Presents “ITAR/EAR Boot Camp: Achieving Compliance” on 8-9 Oct in Savannah, GA 
  2. FCC Presents “U.S. Export Controls: ITAR from a non-U.S. Perspective”, 26 Nov in Bruchem, the Netherlands 
  1. Bartlett’s Unfamiliar Quotations 
  2. Are Your Copies of Regulations Up to Date? Latest Amendments: DHS/Customs (5 Apr 2019), DOC/EAR (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

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OGSOTHER GOVERNMENT SOURCES

OGS_a11. Items Scheduled for Publication in Future Federal Register Editions

(Source: Federal Register, 3 Oct 2019.)
 

* DOJ/ATF: Agency Information Collection Activities; Proposed eCollection eComments Requested; Application and Permit for Importation of Firearms, Ammunition, and Defense Articles – ATF Form 6 – Part I (5330.3A)

Scheduled Date of Publication: 10/4/2019

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OGS_a22. Commerce/BIS: (No new postings.)

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OGS_a43. State/DDTC: (No new postings.)

(Source: State, 3 Oct 2019.)

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OGS_a54. Treasury/OFAC: (No new postings.)

(Source: Treasury/OFAC, 3 Oct 2019.)

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NWSNEWS

(Source: American Shipper, 3 Oct 2019.) [Excerpts.]
The U.S. Treasury Department’s Office of Foreign Assets Control said three GE subsidiaries failed to use “reasonable care” by accepting payments from a Cuban entity associated with a Canadian customer.
The U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) assessed the General Electric Co. (NYSE:GE<>) a $2.7 million civil penalty on Oct. 1 for violating the Cuban Assets Control Regulations. Between December 2010 and February 2014, three GE subsidiaries – Getso Technical Services, Bentley Nevada, and GE Betz – violated the Cuban sanctions regulations on 289 occasions by accepting payments from The Cobalt Refinery Co. for goods and services provided to a Canadian customer of GE. 
Cobalt, which has connections to the mining industry, was placed on OFAC’s Specially Designated Nationals and Blocked Persons (SDN) List in June 1995 for its ties to the Cuban government. In February 2014, GE Working Capital Solutions discovered that its three subsidiaries received “numerous payments” from Cobalt for invoices issued to GE’s Canadian customer and self-disclosed the violations to OFAC. The invoices totaled more than $8 million over the four-year period.
“The GE Companies failed to take proper and reasonable care with respect to their U.S. economic sanctions obligations-particularly given GE’s commercial sophistication,” OFAC said.


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COMMCOMMENTARY

COM_a1
6
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 M. Miller: “European Union Section 301 Duties”

(Source: Miller & Co. P.C.) [Excerpt.]


On October 2, 2019, the U.S. Trade Representative (USTR) released the 
final product list
 of European Union (EU) goods subject Section 301 duties.  These duties are the result of the World Trade Organization (WTO) dispute proceedings concerning large civil aircraft from the EU.  The duties will go into effect on October 18, 2019.
 
The EU Section 301 duties range from 10% to 25% and are specific to 15 separate product lists.  These 15 separate lists impose duties by HTSUS and specific EU countries.  In a big change from the initial proposed list, only airplanes, but not airplane parts, from France, Germany, Spain, and the United Kingdom (UK) are subject to the duties (10%).  A variety of other products, including single-malt scotch from the UK, certain machinery and tools from Germany, and food products from across the EU are all subject to the higher 25% duty.
 
This initial release does not contain any guidance on the Customs entry process or any special rules for FTZs, Chapter 98 goods, etc.  Details will hopefully be forthcoming soon…
 

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TEEX/IM TRAINING EVENTS & CONFERENCES

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

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TE_a28. FCC Presents “U.S. Export Controls: ITAR from a non-U.S. Perspective,” 26 Nov in Bruchem, the Netherlands

 
Details
* What: U.S. Export Controls: The International Traffic in Arms Regulations (ITAR) from a non-U.S. Perspective
* When: Tuesday, 26 Nov 2019
– Welcome and Registration: 9.00 am – 9.30 am
– Training hours: 9.30 am – 4.30 pm
* Where: Full Circle Compliance, Landgoed Groenhoven, Dorpsstraat 6, Bruchem, the Netherlands
* Information & Registration: 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 Export Administration Regulations (EAR) from a non-U.S. Perspective” (27 Nov 2019), and/or “The ABC of Foreign Military Sales” (29 Nov 2019). Please, see the event page for our combo deals.

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ENEDITOR’S NOTES

* George Bancroft (3 Oct 1800 – 17 Jan 1891; was an American historian and statesman who was prominent in promoting secondary education. During his tenure as U.S. Secretary of the Navy, he established the United States Naval Academy at Annapolis in 1845. Among his best-known writings is the magisterial series, History of the United States, from the Discovery of the American Continent.)
– “By common consent gray hairs are a crown of glory; the only object of respect that can never excite envy.”

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EN_a310
. 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

  

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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_a411
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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