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19-1004 Friday “Daily Bugle”

19-1004 Friday “Daily Bugle”

Friday, 4 October 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. Justice/ATF Requests Comments on the Application and Permit for Importation of Firearms, Ammunition, and Defense Articles
  2. Justice/ATF Requests Comments on the Identification of Explosive Materials
  1. Items Scheduled for Publication in Future Federal Register Editions 
  2. Commerce/BIS: (No new postings.)
  3. DoD/DSCA Publishes Policy Memo 19-39
  4. State/DDTC: (No new postings.)
  5. Singapore Customs Announces TradeNet Extended Downtime on 20 October from 4AM to 12PM
  1. RCI: “Footage of Canadian LAVs in Yemen Raises New Questions About Saudi Arms Deal”
  2. ST&R: “Prison Sentence for Using Front Company to Illegally Export Technology to Iran”
  1. B. Egan, S. Baker & S.A. Sinder: “CFIUS Proposes Dramatic Expansion of US Foreign Investment Review, Seeks Public Input” 
  2. D.M. Harrison, J. Harrison & J. Hungerford: “Bid for UK Defence Company to Be Reviewed for National Security Concerns”
  3. P. Burnson: “Global Trade Compliance Main Focus of Upcoming Maritime Logistics Forum”
  1. ECTI Presents U.S. Export Control (ITAR/EAR/OFAC) Seminar Series in Washington, DC, Nov 11-14
  2. FCC Presents “The ABC of FMS”, 28 Nov in Bruchem, the Netherlands
  3. List of Approaching Events: 98 Events Posted This Week, Including 2 New Events
  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 2019), 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.
Justice/ATF Requests Comments on the Application and Permit for Importation of Firearms, Ammunition, and Defense Articles

(Source:
Federal Register, 4 oct 2019.) [Excerpts.]
 
84 FR 53178: 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)
 
* AGENCY: Bureau of Alcohol, Tobacco, Firearms and Explosives, Department of Justice.
* ACTION: 30-Day notice.
* SUMMARY: The Department of Justice (DOJ), Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), will submit 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.
* DATES: The proposed information collection was previously published in the Federal Register, on August 1, 2019, allowing for a 60-day comment period. Comments are encouraged and will be accepted for an additional 30 days until November 4, 2019.
* FOR FURTHER INFORMATION CONTACT: … Desiree M. Dickinson, ATF Firearms and Explosives Imports Branch either by mail at 244 Needy Road, Martinsburg, WV 25405, or by email at desiree.dickinson@atf.gov, or by telephone at 304-616-4584. …
* SUPPLEMENTARY INFORMATION: …
– Abstract: The Application and Permit for Importation of Firearms, Ammunition, and Defense Articles–ATF Form 6–Part I (5330.3A) allows ATF to determine if the article(s) described on the application qualifies for importation. It also serves as authorization for the importer. …  

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

(Source:
Federal Register, 4 Oct 2019.) [Excerpts.]
 
84 FR 53178-53179: Agency Information Collection Activities; Proposed eCollection eComments Requested; Identification of Explosive Materials
 
* AGENCY: Bureau of Alcohol, Tobacco, Firearms and Explosives, Department of Justice.
* ACTION: 30-Day notice.
* SUMMARY: The Department of Justice (DOJ), Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), will submit 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.
* DATES: The proposed information collection was previously published in the Federal Register, on August 1, 2019 allowing for a 60-day comment period. Comments are encouraged and will be accepted for an additional 30 days until November 4, 2019.
* FOR FURTHER INFORMATION CONTACT: …
– Abstract: Marking of explosives enables law enforcement entities to more effectively trace explosives from the manufacturer through the distribution chain, to the end purchaser. This process is used as a tool in criminal enforcement activities. …

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

OGSOTHER GOVERNMENT SOURCES

OGS_a13
. Items Scheduled
for Publication in Future Federal Register Editions

(Source: Federal Register, 4 October 2019.)
 

* Commerce/BIS; Notices; Denial of Export Privileges: Arash Sepehri, Barbara Jo Luque, Benjamin James Cance, Eldar Rezvanov, Kenneth S. Chait, Rasheed Al Jijakli [Pub. Date: 7 October 2019.]
 
* Justice/ATF; NOTICES; Agency Information Collection Activities; Proposals, Submissions, and Approvals: Interstate Firearms Shipment Theft/Loss Report [Pub. Date: 7 October 2019.]


back to top
 

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OGS_a24
. Commerce/BIS: (No new postings.)

(Source:
Commerce/BIS)

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

OGS_a35
DoD/DSCA Publishes Policy Memo 19-39
(Source: DoD/DSCA, 3 Oct 2019.)
 
 
The purpose of this memorandum is to clarify that Foreign Military Sales (FMS) payments received from foreign partners pursuant to leases authorized under Section 61 of the Arms Export Control Act (AECA), 22 U.S.C. section 2796, are not considered an asset use charge.
 
This memo modifies Chapter 11 – Special Programs and Services, by revising section C11.9.3.5. Funding Sources.

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

OGS_a46
State/DDTC: (No new postings.)
(Source:
State/DDTC)

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

OGS_a57.
Singapore Customs Announces TradeNet Extended Downtime on 20 October from 4AM to 12PM
 

 
Singapore Customs has released the following document(s) on its website:
 
* Notice
: Notice No: 17/2019

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

COMNEWS

NWS_a18.
RCI: “Footage of Canadian LAVs in Yemen Raises New Questions About Saudi Arms Deal”
(Source: Radio Canada International, 3 Oct 2019.) [Excerpts.]
 
Images of what appear to be Canadian-made light armoured vehicles (LAV) captured or destroyed by Houthi rebels during recent fighting in the borderlands between Yemen and Saudi Arabia are triggering fresh calls for Ottawa to cancel its multibillion arms deal with Riyadh.
 
Critics of the $15-billion deal to supply Saudi Arabia with the latest model of LAVs say, if proven authentic, these images not only show once again that Canadian arms are being used by the Saudi forces in the bloody conflict in Yemen, but also illustrate the danger of them being diverted to other groups and militias, contravening Ottawa’s obligations under the UN Arms Trade Treaty.
 
Video footage and still images released by the Houthis on Sunday appear to show at least five damaged or destroyed LAVs of various models produced by General Dynamics Land Systems – Canada (GDLS-C) in London, Ontario, along with other armoured vehicles and large quantities of light weapons and ammunition.
 
The materials released by the Iran-backed Houthi movement also show five damaged Spartan armoured personnel carriers produced by the Canadian-owned Streit Group, which is now based in the United Arab Emirates. …

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

NWS_a29.
ST&R: “Prison Sentence for Using Front Company to Illegally Export Technology to Iran”

 

The Department of Justice reports that an Iranian citizen has been sentenced to 27 months in prison for her participation in a conspiracy to facilitate the illegal export of controlled technology from the U.S. to Iran.

 

According to a DOJ press release, the woman assisted in establishing and operating a Malaysian company that served as a front company for an Iran-based company specializing in broadcast communications, microwave communications, and the production of digital video broadcasting equipment. She falsely represented herself as an employee of this company to unlawfully acquire sensitive export-controlled technology from the U.S. on behalf of the Iranian company, whose principal customer was a broadcasting company owned by the government of Iran. To accomplish these acquisitions the woman and her co-conspirators concealed the ultimate destination and end-users of the exported technology through false statements, unlawful financial transactions, and other means.

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COMCOMMENTARY

(Source: Steptoe & Johnson, 2 Oct 2019.) [Excerpts.]
 
* Authors: Brian Egan, Esq., began@steptoe.com; Stewart Baker, Esq., sbaker@steptoe.com; and Scott A. Sinder, Esq., ssinder@steptoe.com; all of Steptoe & Johnson LLP.
 
The US Department of the Treasury (“Treasury”) published two proposed rules on September 24, 2019 that would significantly expand the jurisdiction of the Committee on Foreign Investment in the United States (“CFIUS”) to review inbound U.S. foreign investment for national security risks. The proposed rules, which have been in the works for months, would implement the Foreign Investment Risk Review Modernization Act of 2018 (“FIRRMA“) by expanding CFIUS’s jurisdiction over transactions involving foreign government-controlled investors, U.S. critical infrastructure and critical technology companies, companies that hold significant amounts of sensitive personal data, and certain U.S. real estate. The rules would also make relatively modest changes to CFIUS’s procedures. Interested parties must submit written comments to Treasury on or before October 17, 2019.
 
For more information, please see our advisory.

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COM_a211.
D.M. Harrison, J. Harrison & J. Hungerford: “Bid for UK Defence Company to Be Reviewed for National Security Concerns”

(Source: Mayer Brown, 4 Oct 2019.) [Excerpts.]
 
* Authors: David M. Harrison, Esq., dharrison@mayerbrown.com; James Harrison, Esq., jharrison@mayerbrown.com; and Jason Hungerford, Esq., jhungerford@mayerbrown.com; all of Mayer Brown.
 
The UK government has intervened in the proposed £4 billion takeover offer for aerospace and defence firm Cobham plc by US private equity firm Advent International, which was notified to the European Commission (the “Commission”) on 1 October 2019. According to Business Secretary Andrea Leadsom, the intervention was made on grounds of national security. Consequently, the Competition and Markets Authority (the “CMA”) has been tasked with investigating and carrying out a review of the national security implications of the transaction. Whilst the nature of the deal is in itself interesting, the intervention provides insight into the government’s appetite for scrutinising transactions for national security concerns, which is particularly topical in the light of proposed legislation in this area.
 
Background
[FN/1]
 
Cobham is a FTSE 250 company specialising in air-to-air refuelling. It has extensive contracts with the British military, including for refuelling, electronic warfare systems and training for military personnel in the use of software platforms in combat aircraft. Cobham has experienced shortages of capital in recent years: in 2016 and 2017 it issued a series of profit warnings which required it to raise funds from shareholders.
 
Advent, a firm with a track record of buyouts in Western and Central Europe, made a £4 billion offer to buy Cobham in July 2019. Shareholders approved the deal last month. The deal is controversial for some because Advent plans to break up the company and sell off individual assets, resulting in potential negative impacts on British industrial and security interests.
 
Current and proposed legislation
 
Under current rules, the government’s authority to intervene in mergers is based in competition law. Ordinarily, the Commission would have had sole jurisdiction over the Cobham transaction within the European Economic Area. However, the government has issued a “European Intervention Notice” to enable it to investigate the “public security” aspects of the merger.
 
In such a case, any other aspects remain subject to review by the Commission, subject to a (narrowly construed) exception in Article 346 of the Treaty on the Functioning of the European Union. That provision enables an EU Member State to take measures for the protection of the essential interests of its security which are connected with the production of or trade in arms, munitions and war material, in order to prevent notification of such aspects of mergers to the Commission or the provision of sensitive information to it.
 
Under the Enterprise Act 2002, the government is allowed to intervene where there is a “relevant merger situation” (this covers mergers between companies where the target company meets a certain turnover threshold or a “share of supply” test) and the merger raises issues of either “national security, financial stability or media plurality”. National security for this purpose is deemed to include “public security”.
 
In June 2018, the UK government lowered the target turnover thresholds for review of mergers from £70 million to £1 million concerning businesses involved in the development or production of military and dual-use items subject to export control; the design and maintenance of aspects of computing hardware; or the development and production of quantum technology.   It also broadened the “share of supply” test, so that a transfer of a market share of 25 per cent. or more is sufficient with no increment being required.
 
As explained in our previous update article, [FN/2] the law in this area is set to undergo further major changes following the publication of a White Paper by the government in July 2018. [FN/3] The proposed system would create a separate review process for certain categories of investments, acquisitions or other transactions, led by agencies that are responsible for national security, foreign policy and export controls. Similar to the US CFIUS regime, the proposed UK system would provide for a voluntary notification mechanism, by which parties to the transaction could proactively submit a deal to be reviewed by the government, with the possibility of prior informal discussions. The government would then either confirm that the deal may proceed, clear the deal with conditions intended to mitigate the perceived security risks, or block the transaction. The review process could also be activated by the government intervening in a transaction (“calling-in”), either before or after completion. The government would have the authority to unwind completed transactions during a certain period post-completion (the current proposal is six months).
 
Although the CMA would no longer have jurisdiction over the national security aspects of transactions following introduction of the proposed regime, it would continue to review such transactions from the competition perspective subject to the ability of the Senior Minister to overrule the CMA.
 
In relation to Brexit, if there is a Withdrawal Agreement with the European Union, the existing competition regime is likely to remain in place until the end of any transitional period, and the new regime, if implemented during that period, would apply alongside it.
 
Conclusions
 
The CMA must report its initial decision on the Cobham takeover by 29 October 2019: if sufficient concerns exist, the government has the power to refer the deal for in-depth investigation and ultimately to prohibit it or to require remedial action as a condition of clearance. Since 2002, the government has made previously nine national security-based interventions: eight of the transactions were cleared, and one remains under review.
 
If the planned legislation proceeds and a CFIUS-style system is established in the United Kingdom, national security reviews are likely to be more common. Acquisitive companies are now accustomed to submitting deals for approval to CFIUS, and a number of other jurisdictions have introduced or are planning to introduce foreign investment regimes. The UK government anticipates receiving 200 voluntary notifications per year, and has indicated that half of these would be likely to undergo a full national security review.
 
Many of the legal and procedural issues that are likely to arise under the proposed new regime will be familiar from the existing “voluntary” UK merger control regime. However, many uncertainties remain in relation to how the proposed new regime will work in practice. Not least, in a report published in July 2019, the House of Commons International Trade Committee stated that:
 
We recommend that the Government provide more clarity on how the balance will be struck between promoting and facilitating inward investment, on the one hand; and safeguarding national security, on the other. It must set out what the role of [the Department for International Trade] will be in the envisaged new investment screening regime-as well as which Cabinet minister will take the ultimate decision on blocking an investment.” [FN/4]
Whether or not the new regime will result in many blocked deals is unclear, but a bespoke national security review process led by key stakeholder agencies will bring a different level of scrutiny to transactions that could affect UK national security.
 
 
 

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COM_a312.
P. Burnson: “Global Trade Compliance Main Focus of Upcoming Maritime Logistics Forum”

(Source: Logistics Management, 3 Oct 2019.)
 
* Author: P. Burson, Executive Editor, pburnson@peerlessmedia.com, Logistics Management.
 
The 12th Annual Maritime Transportation Forwarding Logistics & Global Supply Chain Workshop will be staged by ABS Consulting in Miramar, Florida October 16 & 17. A major focus of the event will be trade compliance. In this exclusive interview, ABS president Albert Saphir shares his insights.
 
Logistics Management:
What is the current status of USMCA? Brexit? U.S.-China trade?
 
Albert Saphir:
All is extremely fluid at this point, impossible to say what will happen. USMCA should eventually be approved to replace NAFTA, but it seems to be a complicated trade agreement so no one can really put a clear timeline on this. BREXIT is chaotic – impossible to predict what will happen.U.S.-China trade continues to be unpredictable, maybe not as chaotic yet as BREXIT, but we are getting there.
 
LM:
How can you help domestic shippers find affordable sources for the materials that they need to build their products, and companies whose products were once duty free now have duties to reconcile into their forecast?
 
Saphir:
For some that has become a major challenge, regardless is they import directly or by from a supplier who in turn imports. Likely those materials were not duty free in the past, but carried some duty, for example 8%. But with the various sanction duties (which are ADDITIONAL to the regular duties) the additional cost can range easily from 10-40% currently. Some suppliers may absorb some or all of the cost due to long term contractual delivery contracts or try and “share” the additional cost with the supplier (especially China). In other cases it will be the end consumer who will pay more. Some manufacturers or distributors are moving into a FTZ environment, but that is not always easy and quick to do and also adds costs, but depending on the final supply chain process most of not all duties can be eliminated in some cases.
 
LM:
How can shippers and logistics service providers build a strategic approach toward the Section tariffs in the new year?
 
Saphir:
There’s not much logistics service providers can do other than react to their clients changing needs and offer relevant services. For example, some suppliers are moving out of China into Vietnam, Malaysia, and Thailand, so the logistics providers need to be in those markets to be able to service their U.S. customers.
 
LM:
That’s seems like sound advice. Anything else?
 
Saphir:
Yes. Importers need to continue to search for best possible options, clearly there is not one-size-fits-all answer but a long list of possible options potentially. The biggest challenge for all is that changes unpredictable and are happening fast on very short notice. That has never happened before, and international supply chains often plan out 1-5 years in advance on factories and manufacturing options so nothing can change “on the spot” easily.
 
LM:
Can you explain how classification of items subject to the tariffs can be carefully analyzed if legacy systems are outdated?
 
Saphir
: Importers need to very carefully reanalyze their HTSUS classifications (which they should have done in the past anyhow) to ensure that they are correctly classified. Some may find that there is a more appropriate classification out there that may not be as much impacted by the sanction duties than the one they have been using. But with most of Chinese products now having sanction duties, this exercise is not as productive as it may have been when the first round of China sanction duties came out. In addition, the importer opens themselves up to extra scrutiny by CBP if they change the classifications on items they have been importing. In other words, CBP may reject the new classification or will start asking questions about the differently classified items in the past which may come back to haunt the importer with the statute of limitations being five years.
 
LM:
How do you help shippers review contracts and costs of their supply chains, since domestic shippers may have the cost of tariffs passed via suppliers without being made aware?
 
Saphir:
Domestic manufacturers purchasing materials and parts may simply see an increase in their costing from their suppliers which may pass on some or all of the additional cost. Awareness should not be an issue, since at the end only the total cost will matter and how the two parties negotiate.
 
LM:
What advice do you have for international shippers when reviewing Deliver Duty Paid (DDP) contracts to plan for possible tariff impacts in 2020. Any “fundamentals” to keep in mind?
 
Saphir:
I am not a fan of DDP shipments, a lot of potential problem areas and mistakes than can be made. If the DDP contracts are legitimate all the way, negotiations between seller and buyer are no different than for any other mode of purchase.
 
LM:
Finally, how can shippers ensure that the correct Customs bond in place?
 
Saphir:
The majority of importers in the U.S. have continuous bonds with CBP. The amount of the continuous bonds are based on the expected annual duty liability towards CBP. Obviously, the various sanction duties now in place can considerably increase the annual duty amount owned to CBP, thus those continues bonds must be increased before CBP finds them insufficient. The importer needs to stay in close contact with their surety to monitor this.

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TEEX/IM TRAINING EVENTS & CONFERENCES

TE_113. ECTI Presents U.S. Export Control (ITAR/EAR/OFAC) Seminar Series in Washington, DC: November 11-14, 2019

 
* 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.

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

TE_214
. 
FCC Presents “The ABCs 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_List15. List of Approaching Events: 98 Events Posted This Week, Including 2 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

 

*
 
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 14: Brussels, Belgium; “Economic Sanctions Compliance and Enforcement“; FREE Conference – Belgian International Chamber of Commerce

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

* Oct 15; Strongsville, OH; “Trade Compliance & Policy Seminar 2019“; C.H. Robinson

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

* Oct 16-17; Miramar, FL; “12th Maritime Logistics Training Course“; albert@abs-consulting.net or 954-218-5285; ABS Consulting & Florida Shipowners Group

* 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 22: Kansas City; “FTZ 101“; Miller & Company P.C.
* Oct 23: Kansas City; “FTZ 201“; Miller & Company P.C.

* 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: San Francisco, CA; “Incoterms 2020 Rules Seminar“; International Chamber of Commerce

* Oct 31: Toronto, Canada; “Trade Compliance & Policy” C.H. Robinson  
* Nov 1:  Plainville, MA; “Essentials of Harmonized Tariff Classification and Free Trade Agreement Compliance“; Massachusetts Export Cente   

Nov 5; Baltimore, MD; “
Automated Commercial Environment (ACE) Export Compliance Seminar
“; U.S. Census Bureau

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

* Nov 8:  North Reading, MA; “Best Practices for EAR99 Exporters“; Massachusetts Export Center

* 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: Manchester, UK; “Intermediate Seminar: Strategic Export Controls“; UK DIT

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

* Nov 14: Manchester, UK; “Foundation Workshop: Strategic Export Controls“; UK DIT
* Nov 14: Manchester, UK; “Licenses Workshop: Strategic Export Controls“; UK DIT

* Nov 15:  Westborough, MA; “Deemed Export Compliance & Technology Control Plan Development“; Massachusetts Export Center

* Nov 18: London, UK; “2nd Annual Navigating Russia Sanctions Complexities“; C5

* Nov 19:  Webinar; “Using ACE Reports to Manage and Audit AES Filings“; Massachusetts Export Center

* 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: Birmingham, UK; “
Export Control Symposium
“; UK DIT

*
 
Nov 26: Bruchem, The Netherlands; “
The International Traffic in Arms   
* 
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 3: London, UK; “Intermediate Seminar: Strategic Export Controls“; UK DIT


* Dec 4: London, UK; “Foundation Workshop: Strategic Export Controls“; UK DIT
* Dec 4: London, UK; “Licenses Workshop: Strategic Export Controls“; UK DIT

*
 
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
# Dec 12-13: Frankfurt, Germany; ”
The Top 20 Digital Twin Implementation Ideas from Europe’s Top Companies;” Digital Twins

* Dec 13:  Boston, MA; “Export Expo“; Massachusetts Export Center

 
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
* Mar 2-5: Washington; “ITAR Controls (Mar 2-3) / EAR & OFAC Export Controls (Mar 4-5)“; ECTI; 540-433-3977
* Mar 30-Apr 2: Orlando, FL; “ITAR Controls (Mar 30-31) / EAR & OFAC Export Controls (Apr 1-2)“; ECTI; 540-433-3977

* 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

* Jun 17: London, UK; “Trade & Customs Compliance Group“; TechUK

* Jul 21-22: Washington DC; “FCPA High Risks Markets“; American Conference Institute

 
Webinars 


 


* Oct 8: Webinar: “Advanced Letters of Credit“; NCBFAA  

* Oct 8:  Webinar; “KYC For Today’s Global Business Environment“; Massachusetts Export Center

* Oct 23: Webinar: “Understanding the ITAR and EAR Order of Review“; ECTI; 540-433-3977

* Oct 24:  Webinar; “Am I Really Subject to the EAR?; Massachusetts Export Center

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

* Oct 31: “Conflicts Between EU and US Export Rules Webinar“; ECTI; 540-433-3977

* Nov 12: Webinar: “Duty Drawback and Refunds“; NCBFAA

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

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

 

2020
 
* Jan 14: Webinar: “Commodity Jurisdiction“; NCBFAA

Feb 18: Webinar: “Drop Shipments & Routed Transactions“; NCBFAA

* Apr 14: Webinar: “ACE Export Reports for Compliance“; NCBFAA

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

ENEDITOR’S NOTES

EN_a116
. Bartlett’s Unfamiliar Quotations

(Source: Editor)
 

*
Rutherford B. Hayes (Rutherford Birchard Hayes (October 4, 1822 – January 17, 1893) was the 19th president of the United States from 1877 to 1881, having served also as an American representative and governor of Ohio. Hayes was a lawyer and staunch abolitionist who defended refugee slaves in court proceedings in the antebellum years.
– “Unjust attacks on public men do them more good than unmerited praise.”
 
* Alvin Toffler (4 Oct 1928 – 27 June 2016; was an American writer, futurist, and businessman known for his works discussing modern technologies, including the digital revolution and the communication revolution, with emphasis on their effects on cultures worldwide. In 1970 his first major book about the future, Future Shock, became a worldwide best-seller and has sold over 6 million copies. He and his wife Heidi Toffler wrote at best-selling book, The Third Wave in 1980. In it, he foresaw such technological advances as cloning, personal computers, the Internet, cable television and mobile communication.)
– “It is better to err on the side of daring than the side of caution.”
 
Friday funnies
This week’s business lesson:
A man was getting into the shower just as his wife finished her shower, when the doorbell rang.  The wife quickly wrapped herself in a towel and ran downstairs. When she opened the door, there stood Bob, the next-door neighbor.  Before she said a word, Bob said, “I’ll give you $500 cash to drop that towel.”  After thinking for a moment, the woman dropped her towel and stood naked in front of Bob. After a few seconds, Bob, smiling, handed her $500 and left. The woman wrapped back up in the towel and went upstairs. When she got to the bathroom, her husband asked, “Who was that?”  “It was Bob, the next door neighbor,” she replied. “Great,” said the husband, “Did he say anything about the $500 he owes me ?”
Moral of the story:
If you share critical information pertaining to credit and risk with your shareholders in time, you may be in a position to prevent avoidable exposure.

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

EN_a317. 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 45652-45654, 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.

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

EN_a417
. 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 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 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.

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