;

19-1021 Monday “Daily Bugle”

19-1021 Monday “Daily Bugle”

Monday, 21 October 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 

inquiries and rates
.

  1. Commerce/BIS Amends EAR and Tightens Additional Exports and Reexports to Cuba
  1. Items Scheduled for Publication in Future Federal Register Editions
  2. Commerce/BIS: (No new postings.) 
  3. DHS/ICE: “Chinese National Sentenced to 40 Months in Prison for Conspiring to Illegally Export Military and Space-Grade Technology from the US to China” 
  4. State/DDTC: (No new postings.)
  5. Treasury/OFAC Issues Amended Venezuela-related General License 8D
  6. EU Updates Control List of Dual-Use Items
  1. Bloomberg: “Five Months After Huawei Export Ban, U.S. Companies Are Confused”
  2. The Epoch Times: “US Navy Lieutenant Charged with Violating Federal Firearms, Export Control Laws”
  1. K. Georgi, S.G. Costelloe & M. Tuchband: “BIS Imposes Additional Cuba Trade Restrictions and Restricts Use of Temporary Sojourn License Exception for Multiple Countries”
  2. N. Nagarajan, C. Morgan & T.A. Kim: “USTR Announces Start Date for Section 301 List 4 Exclusion Process”
  3. P. Marshall, C. Livingstone & F. Hutchison: “Brexit and the Future of Export Controls – Part 2”
  1. Monday List of Ex/Im Jobs: 163 Openings Posted This Week; 8 New Openings
  1. ECTI Presents Conflicts Between EU and US Export Rules Webinar: October 31, 2019
  2. FCC Presents “The ABC of FMS”, 28 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 Oct 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)

EXIMITEMS FROM TODAY’S FEDERAL REGISTER

EXIM_a11. Commerce/BIS Amends EAR and Tightens Sanctions Regarding Additional Exports and Reexports to Cuba

(Source: Federal Register, 21 Oct 2019.) [Excerpts.]
 
FR 56117-56121: Restricting Additional Exports and Reexports to Cuba
 
* AGENCY: Bureau of Industry and Security, Commerce.
* ACTION: Final rule.
* SUMMARY: In this final rule, the Bureau of Industry and Security (BIS) amends the Export Administration Regulations (EAR) to further restrict exports and reexports of items to Cuba. Specifically, this rule amends the Cuba licensing policy in the EAR to establish a general policy of denial for leases of aircraft to Cuban state-owned airlines. 
    This rule also amends License Exception Aircraft, Vessels and Spacecraft (AVS) to clarify that aircraft and vessels are not eligible for the license exception if they are leased to or chartered by a national of Cuba or a State Sponsor of Terrorism. 
    Additionally, this rule amends the EAR to establish a general 10-percent de minimis level for Cuba. Finally, this rule revises License Exception Support for the Cuban People (SCP) to make the Cuban government and communist party ineligible for certain donations, removes an authorization for promotional items that generally benefits the Cuban government, and clarifies the scope of telecommunications items that the Cuban government may receive without a license. 
    BIS is making these amendments to further restrict the Cuban government’s access to items subject to the EAR, thereby supporting the Administration’s national security and foreign policy decision to hold the Cuban regime accountable for its repression of the Cuban people and its support for the Maduro regime in Venezuela; the Cuban regime denies its people fundamental freedoms while keeping Maduro in power using Cuban military intelligence and state security services. These amendments are consistent with the National Security Presidential Memorandum on Strengthening the Policy of the United States Toward Cuba, signed by the President on June 16, 2017.
* DATES: This rule is effective October 21, 2019.
* FOR FURTHER INFORMATION CONTACT:…
* SUPPLEMENTARY INFORMATION: …
 
Specific Amendments in This Rule
 
Cuba Licensing Policy
 
Consistent with the embargo of Cuba, BIS authorization in the form of a license or license exception is required for the export or reexport to Cuba of all items subject to the EAR. Section 746.2(b) of the EAR explains that license applications for the export or reexport to Cuba of items requiring a license are subject to a general policy of denial unless otherwise specified in that paragraph. This rule amends paragraph (b)(2)(v) to remove the general policy of approval for applications to export or reexport aircraft leased to Cuban state-owned airlines. Consequently, license applications to lease aircraft to Cuban state-owned airlines are now subject to the general policy of denial in Sec. 746.2(b) of the EAR. BIS will also revoke licenses within seven days, through individual notifications to licensees pursuant to Sec. 750.8 of the EAR, for aircraft leased to Cuban state-owned airlines under the former policy. BIS is making these changes because the Cuban government generates revenue from tourists that it transports on leased aircraft.
 
License Exception Aircraft, Vessels and Spacecraft (AVS)
 
Section 746.2(a)(1) of the EAR identifies the license exceptions, or portions thereof, that are available for exports and reexports to Cuba, including paragraphs (a) and (d) of License Exception AVS in Sec. 740.15 for, respectively, certain aircraft and vessels on temporary sojourn.
 
Paragraph (a) of License Exception AVS authorizes the export or reexport to Cuba of certain aircraft on temporary sojourn, provided all of the associated terms and conditions are met. Paragraph (a)(3) identifies the criteria that must be met if a flight is to qualify as a temporary sojourn. This rule adds paragraph (a)(3)(x) to clarify that aircraft leased to or chartered by a Cuban national are not eligible for License Exception AVS. New paragraph (a)(3)(x) also clarifies that aircraft are not eligible for License Exception AVS if leased to or chartered by a national of a destination in Country Group E:1 (Terrorist supporting countries). Additionally, this rule adds Cuba to restrictions in paragraphs (a)(1)(i) and (ii) of License Exception AVS regarding the sale or transfer of operational control of foreign registered aircraft and to restrictions in paragraphs (a)(3)(iv) through (ix) of License Exception AVS regarding the operational control of foreign and U.S. registered aircraft. Instead of identifying Cuba by name, this rule adds references to Country Group E:2 (Unilateral embargo), which currently only includes Cuba. For consistency, this rule changes a reference to Cuba in paragraph (a)(2)(ii) of License Exception AVS to Country Group E:2. This rule also clarifies the existing list of aircraft eligible for paragraph (a)(2)(i) of License Exception AVS.
 
Paragraph (d) of License Exception AVS authorizes the export or reexport to Cuba of cargo vessels for hire on temporary sojourn, provided all of the associated terms and conditions are met. Paragraph (d)(3) identifies the criteria that must be met if a voyage is to qualify as a temporary sojourn. This rule adds paragraph (d)(3)(v) to clarify that vessels leased to or chartered by a Cuban national are not eligible for License Exception AVS. New paragraph (d)(3)(v) also clarifies that vessels are not eligible for License Exception AVS if leased to or chartered by a national of a destination in Country Group E:1. Additionally, this rule adds Cuba to the restriction in paragraphs (d)(1)(i) and (ii) of License Exception AVS regarding the sale or transfer of operational control of foreign flagged vessels and to restrictions in paragraphs (d)(2)(v) through (vii), (d)(3)(iv), and (d)(4)(v) through (vii) of License Exception AVS regarding the operational control of and related activities involving foreign and U.S. flagged vessels. As is done in paragraph (a), the changes to paragraph (d) reference Country Group E:2 instead of referencing Cuba by name.
 
License applications for the export or reexport of aircraft or vessels leased to or chartered by, or on the behalf of, the Cuban government, including state-owned airlines or other enterprises, will generally be denied pursuant to the licensing policy in Sec. 746.2(b) of the EAR. License applications for aircraft or vessels leased to or chartered by other nationals of Cuba will be reviewed pursuant to the applicable licensing policy described in Sec. 746.2(b) of the EAR. BIS is making these changes to License Exception AVS because the Cuban government has generated revenue or otherwise benefited from the lease or charter of aircraft and vessels.
 
De Minimis Rule
 
Pursuant to part 734 of the EAR, foreign-made items located abroad are subject to the EAR under specified circumstances, including when they incorporate, or are bundled or commingled with, specified levels of controlled U.S.-origin commodities, software, or technology. Paragraph (a) of Sec. 734.4 identifies items for which there is no de minimis level, and thus are subject to the EAR if they contain any controlled U.S.-origin content, and paragraph (b) identifies special requirements for certain encryption items. When paragraphs (a) and (b) of Sec. 734.4 are not applicable, either the 10-percent de minimis rule described in paragraph (c) or the 25-percent de minimis rule described in paragraph (d) applies, depending upon the destination of the items.
 
This rule amends Sec. 734.4(d) of the EAR to make Cuba subject to the general 10-percent de minimis rule in Sec. 734.4(c). Now, a BIS license or an applicable license exception specified in Sec. 746.2(a)(1) of the EAR is required for the reexport to Cuba of foreign-made items that contain greater than 10 percent of U.S.-origin content or, when Sec. 734.4(a) applies, contain any U.S.-origin content. License applications for such items are subject to a general policy of denial, unless eligible for another licensing policy described in Sec. 746.2(b) of the EAR. Instead of referencing Cuba by name in Sec. 734.4, this rule makes Cuba subject to the general 10-percent de minimis rule by referencing Country Group E:2. BIS is making this change to de minimis because the Cuban government could generate revenue or otherwise benefit from the receipt of items containing greater than 10 percent of U.S.-origin content.
 
License Exception Support for the Cuban People
 
License Exception Support for the Cuban People (SCP) in Sec. 740.21 of the EAR was created to authorize certain exports and reexports to Cuba that are intended to support the Cuban people by improving their living conditions and supporting independent economic activity; strengthening civil society in Cuba; and improving the free flow of information to, from, and among the Cuban people. Items exported or reexported pursuant to certain provisions of License Exception SCP may be consigned to or, in some instances, used by the Cuban government provided the items would be used to benefit the Cuban people.
 
Paragraph (c)(1) of License Exception SCP authorizes the export or reexport to Cuba of certain donated items for use in scientific, archeological, cultural, ecological, educational, historic preservation, or sporting activities provided specified conditions are met. This rule amends paragraph (c)(1) to exclude donations to organizations administered or controlled by the Cuban government or communist party. Consequently, an exporter or reexporter wanting to donate items to organizations administered or controlled by the Cuban government or communist party must submit a license application to BIS, which will be reviewed pursuant to the licensing policy in Sec. 746.2(b) of the EAR. This change will give the U.S. Government the opportunity to determine whether donations to those entities would benefit the Cuban people. Paragraph (c)(1) of License Exception SCP is still available for eligible donations to the Cuban people and civil society organizations provided the items would be used to support activities independent of the Cuban government and communist party.
 
Paragraph (d)(1) of License Exception SCP authorizes the export or reexport to Cuba of certain items for telecommunications infrastructure creation and upgrades. This rule amends paragraph (d)(1) to clarify that it is limited to eligible items for the creation and upgrades of telecommunications infrastructure to improve the free flow of information to, from, and among the Cuban people. For infrastructure items that would be used to connect specific end users (i.e., non-backbone items), those items may be used to connect individual Cubans or the Cuban private sector only. A license is required for the export or reexport to Cuba of items for telecommunications infrastructure that would be used to connect other specific end users (e.g., Cuban government ministries and state-owned hotels), which will be reviewed pursuant to the licensing policy in Sec. 746.2(b) of the EAR. Separately, License Exception Consumer Communications Devices (CCD) in Sec. 740.19 of the EAR authorizes the export or reexport to Cuba of certain consumer communications devices for use by eligible individuals and independent non-governmental organizations.
 
This rule also revises paragraph (e)(2) of License Exception SCP to eliminate an authorization for items to be given away for free for promotional purposes. This provision regarding such promotional items has been primarily beneficial to the Cuban government since it has a virtual monopoly on importing items into the country. However, items for use by the Cuban private sector for private sector economic activities remain eligible for paragraph (b)(1) of License Exception SCP, provided the associated terms and conditions are met. License applications for the export or reexport of promotional items to the Cuban government will be reviewed pursuant to the general policy of denial in Sec. 746.2(b) of the EAR.
 
BIS is making these changes to License Exception SCP to ensure that the Cuban people, not the Cuban government or communist party, benefit from items exported or reexported pursuant to the license exception. …

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

OGSOTHER GOVERNMENT SOURCES

OGS_a12. Items Scheduled for Publication in Future Federal Register Editions

(Source: Federal Register)
 
(No items of interest noted today.)

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

OGS_a23
.
Commerce/BIS: (No new postings.) 

(Source:
Commerce/BIS)

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

OGS_a34
.
DHS/ICE: “Chinese National Sentenced to 40 Months in Prison for Conspiring to Illegally Export Military and Space-Grade Technology from the US to China”

(Source: DHS/ICE, 18 Oct 2019.) [Excerpts.]
 
On Oct. 16, United States District Judge Diane J. Humetewa sentenced Tao Li, a 39-year-old Chinese national, to 40 months in prison, followed by three years of supervised release. Li had previously pleaded guilty to conspiring to export military- and space-grade technology to the People’s Republic of China without a license in violation of the International Emergency Economic Powers Act discovered in an investigation led by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) assisted by the Defense Criminal Investigative Service (DCIS).
 
Between December 2016 and January 2018, Li worked with other individuals in China to purchase radiation-hardened power amplifiers and supervisory circuits and illegally export them from the United States to China. The electronic components sought by Li are capable of withstanding significant levels of radiation and extreme heat, and as a result, are primarily used for military and space applications. Due to the technological capabilities of the electronic components sought by Li and the significant contribution that the components could make to a foreign country’s military and space programs, both parts required an export license from the U.S. Department of Commerce, Bureau of Industry and Security, prior to being sent out of the United States. Notwithstanding the licensing requirement, the Department of Commerce has a policy of denial to export these types of electronic components to the People’s Republic of China.
 
Between December 2016 and January 2018, Li, who resided in China, used multiple aliases to contact individuals in the United States, including representatives of United States-based private companies, to try to obtain the electronic components. Additionally, Li and his coconspirators agreed to pay a “risk fee” to illegally export the electronic components to China. In furtherance of his request, Li wired money from a bank account in China to a bank account in Arizona. Li was arrested in September 2018 at Los Angeles International Airport, as Li attempted to travel from China to Arizona to meet with one of the undercover agents.  . . .

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

OGS_a45. State
/DDTC: (No new postings.)
 

(Source: State/DDTC)

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

OGS_a56.
Treasury/OFAC Issues Amended Venezuela-related General License 8D
 
The Department of the Treasury’s Office of Foreign Assets Control (OFAC) is issuing amended General License 8D, “Authorizing Transactions Involving Petróleos de Venezuela, S.A. (PdVSA) Necessary for Maintenance of Operations for Certain Entities in Venezuela.” 
* * * * * * * * * * * * * * * * * * * *

OGS_a67.
EU Updates Control List of Dual-Use Items
(Source: European Commission, 17 Oct 2019.)
 
On 17 October 2019, the European Commission adopted the annual Delegated Regulation that updates the EU dual-use export control list in Annex I to Regulation (EC) No 428/2009 and brings it in line with the decisions taken within the framework of the international non-proliferation regimes and export control arrangements in 2018.
 
The majority of the changes result from amendments agreed at the Wassenaar Arrangement, including:
   – 
New decontrol note for ‘open-cell foam’ electromagnetic wave absorbing materials
(1C001)
   – Amendment to control entry for gear machine tool including a cascaded structure for
the control criteria (2B003)
   – New local definition of ‘measuring range’ for linear displacement measuring
instrument (2B006b1)
   – Amendment to control entry for Digital-to-Analogue Converter to avoid overlapping of
the controls (3A001a5b)
   – New entry for ‘other’ discrete microwave transistors (3A001b3f)
   – New entry for signal generators with specified ‘Radio Frequency modulation
bandwidths’ (3A002d5)
   – Amendment to control entry for multi-layer mask control (3B001h)
   – New entry for software designed to restore operation of microcomputers/
microprocessors after Electromagnetic Pulse (EMP) or Electrostatic Discharge (ESD)
disruption (3D005)
   – New decontrol note for “Information security” items specially designed for a 
‘connected civil industry application’ (5A002)
   – Amendment to control entry for cryptographic activation token, including a Technical 
Note for the local definition of ‘cryptographic activation token’ (5A002)
   – Amendment to control entry for hydrophones operating over 1000m (6A001a2a6)
   – New Note 6 for lasers defining ‘Single transverse mode’ and ‘Multiple transverse 
mode’ (6A005)
   – New entry for masks and reticles designed for optical sensors (6B002)
   – Amendment to control entry for underwater submersible vehicles (8A001c)
   – New entry for air-launch platforms for space launch vehicles (9A004g)
   – Deletion of entry for technology for diffusion bonding for gas turbine engine 
components (9E003a7)
 
Some changes result from amendments agreed at the Missile Technology Control Regime, including:
   – 
Amendment to the acronym for “CEP” (“Circular Error Probable”) (7A103.c)
   – Amendment to control entry for include detonation engines (9A111).
 
Other changes were substantially editorial changes made to bring Annex I controls in line with Regime controls and changes for the correction of minor errors.
 
The Commission Delegated Regulation will enter into force upon its publication approximately 2 months after its adoption, provided that the Council and the European Parliament raise no
objections within this period.
 

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

NWSNEWS

NWS_a18.
Bloomberg: “Five Months After Huawei Export Ban, U.S. Companies Are Confused”
(Source: Bloomberg, 21 Oct 2019.) [Excerpts.]
 
Five months after the Trump administration blacklisted China’s Huawei Technologies Co., its business seems alive and well while American firms still don’t know whether they can work with the Chinese company or not.
 
The Department of Commerce in May added Huawei to what’s known as the entity list in an effort to block U.S. companies from selling components to China’s largest technology company, which it accuses of being a threat to America’s national security. Huawei has denied those claims.
 
Despite those actions, Huawei reported last week that its revenue grew 24% in the first ninth months of 2019, boosted by a 26% jump in smartphone shipments. There are also signs that U.S. efforts to block the company from the development of 5G technology have yet to make a big dent: Huawei said it has signed more than 60 5G commercial contracts to date worldwide. …

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

NWS_a2
9.
The Epoch Times: “US Navy Lieutenant Charged with Violating Federal Firearms, Export Control Laws”
(Source: The Epoch Times, 21 Oct 2019.) [Excerpts.]
 
A lieutenant at the naval air station in Jacksonville, Florida, has been arrested and faces multiple federal charges, including running a “firearm tourism” business for Chinese tourists and being part of a scheme to illegally export military-grade inflatable boats to a Chinese government agency. …
 
Yang, a naturalized U.S. citizen originally from China who has top security clearance, allegedly worked with a Chinese national named Ge Songtao-who had a visa to stay in the United States until 2026-to bring Chinese tourists to fire weapons at shooting ranges in the United States, according to court documents.
 
Zheng Yan, a 27-year-old resident of China, and Yang Yang are accused of trying to buy and smuggle inflatable boats-each equipped with a military-grade engine-made by an unidentified California-based marine manufacturer, along with flash drives and other equipment for China’s Ministry of Agriculture’s fisheries bureau to use, according to court documents. The Navy lieutenant and Ge are also named as co-conspirators; all four face charges of violating federal export regulations.
 
Yang Yang reached out to the California-based company, while fully aware that the company made vessels for the U.S. Navy-and thus, that the firm might be prohibited from exporting such sensitive products to China.
 
At least 10 vessels were sent to Shanghai Breeze Technology, according to News4Jax, citing U.S. government shipping records. Some of those illegal exports were also facilitated by BQ Tree, the company founded by the lieutenant and his wife, according to court documents. …


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

COMMCOMMENTARY

COM_a110.
K. Georgi, S.G. Costelloe & M. Tuchband: “BIS Imposes Additional Cuba Trade Restrictions and Restricts Use of Temporary Sojourn License Exception for Multiple Countries”
(Source: Arent Fox Alerts, 21 Oct 2019.)
 
* Authors: Kay C. Georgi, Esq., Kay.Georgi@arentfox.com, 202.857.6293; Sylvia G. Costelloe, Esq., Sylvia.Costelloe@arentfox.com, 213.988.6697; Matthew Tuchband, Esq., 202.857.6212, and Matthew Tuchband, Esq., Matthew.Tuchband@arentfox.com; all of Arent Fox LLP.
 
BIS has restricted Cuba’s access to commercial aircraft and other goods, lowered de minimis for foreign items containing US content from 25% to 10%, and restricted the temporary sojourn by aircraft in Iran, Syria, Sudan, and North Korea, as well as Cuba.
 
On October 19, the US Department of Commerce, Bureau of Industry and Security (BIS) announced another major policy change towards Cuba by further restricting the Cuban government’s access to items subject to BIS’s Export Administration Regulations (EAR) (the “Rule”).
 
This Rule will have a significant impact on exporters and reexporters currently using certain license exceptions to export to Cuba, who export non-US origin products with US-origin content to Cuba, and who lease commercial aircraft to Cuban state-owned airlines. While billed as a change to exports and reexports to Cuba, the amended rule has potential implications for non-US airlines who fly to other countries (e.g. Iran, Syria, Sudan and North Korea).
The purpose of the Rule is to support “the Administration’s national security and foreign policy decision to hold the Cuban regime accountable for its repression of the Cuban people and its support for the Maduro regime in Venezuela; the Cuban regime denies its people fundamental freedoms while keeping Maduro in power using Cuban military intelligence and state security services.” According to Secretary of Commerce Wilbur Ross, “[t]his action by the Commerce Department sends another clear message to the Cuban regime – that they must immediately cease their destructive behavior at home and abroad[.]” He further noted that “[t]he Trump Administration will continue to act against the Cuban regime for its misdeeds, while continuing to support the Cuban people and their aspirations for freedom and prosperity.”
 
In a nutshell, the Rule will amend the EAR as follows:
– Aircraft and vessels are not eligible for License Exception Aircraft, Vessels, and Spacecraft (AVS) if they are leased to or chartered by a national of Cuba or a State Sponsor of Terrorism.
– A general 10 percent de minimis level is established for Cuba. The de minimis level for Cuba had been increased to 25 percent on July 22, 2015, when Cuba was removed from the list of state sponsors of terrorism and added to country group E:2.
– The rule revises License Exception Support for the Cuban People (SCP) to make the Cuban government and communist party ineligible for certain donations.
– The rule removes an authorization for promotional items that generally benefit the Cuban government.
– The rule clarifies the scope of telecommunications items that the Cuban government may receive without a license.
 
   (1) Cuba Licensing Policy – Denial for Leases to Cubana. The Rule removes BIS’s general policy of approval for applications to export or reexport aircraft leased to Cuban state-owned airlines. This means that there is now a general policy of denial for license applications to lease aircraft to Cuban state-owned airlines. In addition, within seven days, BIS will be revoking licenses through individual notifications to licensees for aircraft that had been leased to Cuban state-owned airlines under BIS’s former policy.
According to BIS’s press release, the Cuban regime had been transporting tourists on aircraft subject to BIS jurisdiction in order to generate revenue. BIS therefore chose to revoke existing licenses for aircraft leases to Cuban state-owned airlines, and stated that it would deny future applications for aircraft leases.
 
   (2) License Exception Aircraft, Vessels, and Spacecraft (AVS) Restricted Not Just for Cuba but Iran, Syria, Sudan and North Korea. License Exception AVS authorizes the export or reexport of certain aircraft and vessels on temporary sojourn. The Rule clarifies that aircraft leased to or chartered by a Cuban national are not eligible for License Exception AVS, and clarifies that aircraft are not eligible for License Exception AVS if leased to or chartered by a national of a destination in Country Group E:1 (Terrorist supporting countries), which currently includes Iran, Syria, Sudan and North Korea.
This is a significant change to license exception AVS, which had previously allowed the temporary sojourn by aircraft subject to the EAR provided there was no “sale or transfer of operational control” where “operational control” was defined by a listing of nine criteria.[F/N 1] The new rule adds a tenth criteria which must be met – that the aircraft “is not leased to or chartered by a national of a destination in Country Group E:1 or E:2.” This means that, for example, although European airlines can continue to fly aircraft subject to the EAR to Cuba (or Iran, Syria, Sudan or North Korea), they cannot do so in cooperation with national airlines located in any of those countries. Airlines flying on temporary sojourn to those destinations would be well advised to check the terms of any agreements they may have with nationals (individuals and /or companies) of those countries to see if they could be considered a lease or charter of the aircraft to those nationals.
 
   (3) De Minimis Rule Reduced from 25 Percent to 10 Percent. Under the EAR, non-US origin products are subject to export and re-export controls if they contain more than a certain percentage (by value) of US-origin controlled content. For all destinations except Iran, Syria, Sudan and North Korea (which were are 10%), EAR re-export jurisdiction is triggered under the de minimis rules only when an item contains more than 25 percent US-origin controlled content (except in some special cases where de minimis drops to zero).
 
The Rule amends the EAR to make Cuba subject to the general 10-percent de minimis rule, meaning that a BIS license or license exception is required for the reexport to Cuba of foreign-made items containing greater than 10 percent of US-origin controlled content. What content is considered “controlled” is another story. For Cuba, Syria and North Korea, EAR99 items (items that are not listed on the Commerce Control List, which do not require a license for export to most destinations) are US controlled content, meaning that for those countries, de minimis levels are effectively much lower than for Iran or Sudan. It should also be noted that foreign-made items destined for Cuba that incorporate US-origin 9×515 or ”600 series” content (including .y content) and certain encryption and other special items continue to be subject to the EAR regardless of the level of US-origin content.
The Rule notes that there is a general policy of denial for license applications for such items, unless they are eligible for another licensing policy described in § 746.2(b) of the EAR.
 
As we noted in our August 14, 2015 alert, Cuba became eligible for the general 25% de minimis level in 2015 when it was removed from Country Group E:1 and was added to country group E:2, thus putting the de minimis level on par with most other destinations.
 
This Rule, reducing the de minimis level to 10%, will primarily impact non-US manufacturers who incorporate US-origin materials, parts, or components in their non-US products, or US-origin software in their non-US software, or US origin technology in their non-US technology.
 
Bottom line: if you were relying on a 25% de minimis to reexport non-US origin products to Cuba, you need to revisit your calculations.
   (4) License Exception Support for the Cuban People. The Rule also amends License Exception SCP, which authorizes “certain exports and reexports to Cuba that are intended to support the Cuban people by improving their living conditions and supporting independent economic activity; strengthening civil society in Cuba; and improving the free flow of information to, from, and among the Cuban people.”
 
Under License Exception SCP, the “export or reexport to Cuba of certain donated items for use in scientific, archeological, cultural, ecological, educational, historic preservation, or sporting activities provided specified conditions are met” is authorized. However, under the Rule, exporters or reexporters will now need to apply for a license to donate items to organizations administered or controlled by the Cuban government or communist party. According to the Rule, “this change will give the US Government the opportunity to determine whether donations to those entities would benefit the Cuban people.”
 
License Exception SCP also “authorizes the export or reexport to Cuba of certain items for telecommunications infrastructure creation and upgrades.” The Rule clarifies that License Exception SCP “is limited to eligible items for the creation and upgrades of telecommunications infrastructure to improve the free flow of information to, from, and among the Cuban people.” The Rule notes that infrastructure items that would be used to connect specific end users (i.e., non-backbone items) “may be used to connect individual Cubans or the Cuban private sector only.” However, “[a]license is required for the export or reexport to Cuba of items for telecommunications infrastructure that would be used to connect other specific end users (e.g., Cuban government ministries and state-owned hotels)[.]”
 
Finally, the Rule eliminates an authorization under License Exception SCP for items given away for free for promotional purposes. License applications for such exports will be reviewed pursuant to a general policy of denial. However, items for use by the Cuban private sector for private sector economic activities may be eligible for paragraph (b)(1) of License Exception SCP if certain conditions are met.
 
Given the widespread participation of the Cuban government in the Cuban economy, these restrictions likely eliminate substantially the availability of license exception SCP in cases of donations and telecommunications infrastructure upgrades.
 
   (5) How does this fit into the Trump Administration’s overall stance against Cuba? This Rule is just one more step in the Trump Administration’s efforts to restrict exports and tighten US foreign policy towards Cuba. The Rule comes in the wake of the US Department of Treasury’s Office of Foreign Assets Control’s (OFAC) amendments to the Cuban Assets Control Regulations, effective October 9, 2019, which re-imposed limitations on “U-turn” transactions and remittances. These U-turn transactions, a version of which had been allowed since 2015, had recently enabled US banking institutions to process most funds transfers originating and terminating outside of the United States even though those funds transfers were to or from Cuba or otherwise involved property in which Cuba or a Cuban national had an interest. Under the amendments, US banking institutions are no longer allowed to process such transactions.
 
   (6) What does this mean for companies? If you have been exporting or reexporting from third countries to Cuba under one of the above license exceptions, or you have been re-exporting foreign-made items incorporating US-origin controlled content under de minimis, you should:
 
– Review your de minimis calculations to determine whether or not your calculations fall above the now applicable 10% de minimis limit. If you are using License Exception AVS temporary sojourn to fly to Cuba, Iran, Syria, Sudan or North Korea, review whether you are currently leasing or chartering aircraft to nationals of Cuba, Iran, Syria, Sudan or North Korea.
– If you have a BIS license to lease or charter aircraft subject to the EAR to Cuban state-owned airlines, prepare to have your licenses revoked, assess agreements for force majeure provisions or other provisions excusing performance for legal compliance issues, and come up with contingency plans for your passengers who have already booked flights.
– Review whether you are currently donating items subject to the EAR to the Cuban government and communist party under License Exception SCP.
– Review whether you are exporting or reexporting to Cuba items subject to the EAR for telecommunications infrastructure creation and upgrades.
– Review whether you are currently giving items subject to the EAR to Cuba for free for promotional purposes.
______________________
[F/N1] The nine criteria were:
   (1) Hiring of cockpit crew. Right to hire and fire the cockpit crew.
   (2) Dispatch of aircraft. Right to dispatch the aircraft.
   (3) Selection of routes. Right to determine the aircraft’s routes (except for contractual commitments entered into by the exporter for specifically designated routes).
   (4) Place of maintenance. Right to perform or obtain the principal maintenance on the aircraft, which principal maintenance is conducted outside a destination in Country Group E:1 (see supplement no. 1 to this part), under the control of a party who is not a national of any of these countries. (The minimum necessary in-transit maintenance may be performed in any country).
   (5) Location of spares. Spares are not located in a destination in Country Group E:1 (see supplement no. 1 to this part).
   (6) Place of registration. The place of registration is not changed to a destination in Country Group E:1 (see supplement no. 1 to this part).
   (7) No transfer of technology. No technology is transferred to a national of a destination in Country Group E:1 (see supplement no. 1 to this part), except the minimum necessary in transit maintenance to perform flight line servicing required to depart safely.
   (8) Color and logos. The aircraft does not bear the livery, colors, or logos of a national of a destination in Country Group E:1 (see supplement no. 1 to this part).
   (9) Flight number. The aircraft does not fly under a flight number issued to a national of a destination in Country Group E:1 (see supplement no. 1 to this part) as such a number appears in the Official Airline Guide.

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

COM_a211.
N. Nagarajan, C. Morgan & T.A. Kim: “USTR Announces Start Date for Section 301 List 4 Exclusion Process”
(Source: Husch Blackwell, 21 Oct 2019.) [Excerpts.]
 
* Authors: Nithya Nagarajan, Esq., nithya.nagarajan@huschblackwell.com; Cortney O’Toole Morgan, Esq., cortney.morgan@huschblackwell.com; and Turner A. Kim, Esq., turner.kim@huschblackwell.com; all of Husch Blackwell LLP.
 
The Office of the U.S. Trade Representative (“USTR”) announced that starting on October 31, 2019, the exclusion process for Chinese imports subject to List 4 Section 301 tariffs of 15% will open and will conclude on January 31, 2020.
 
Details on the specifics of the application process are to be published in the Federal Register during the week of October 21, 2019, however, it is expected that the exclusion request process will be similar to the one instituted for List 3 and are to be submitted via USTR’s portal at exclusions.ustr.gov. To be eligible for an exclusion, an importer must demonstrate that (a) there is an insufficient supply from U.S. sources; (b) the additional duties have caused severe economic harm; and (c) the imported good is not identified on the “Made in China 2025” list. Exclusion requests are specific to products imported at the HTSUS 10-digit level and any request must clearly and succinctly identify the physical characteristics such that U.S. Customs can administer the exclusion.
 
USTR originally announced on August 6, 2019, that it would institute additional tariffs of 10% on approximately $250 billion dollars of imports from China identified on List 4A, but on August 26, 2019, it announced that the tariff rate would increase to 15% due to ongoing tensions and forestalled trade negotiations. Tariffs were originally delayed on certain goods and the additional 15% tariff goes into effect on December 15, 2019, for imports on List 4B. Importers should review both List 4A and 4B to identify and ensure that goods that it is importing are properly monitored. …

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

COM_a312.
P. Marshall, C. Livingstone & F. Hutchison: “Brexit and the Future of Export Controls – Part 2”
(Source: 
Brodies LLP, 17 Oct 2019.) [Excerpts.]
 
* Authors: Paul Marshall, Esq., paul.marshall@brodies.com; Charles Livingstone, Esq., charles.livingstone@brodies.com; and Fran Hutchison, Esq., fran.hutchison@brodies.com; all of Brodies LLP.
 
As we seemingly move closer to exit day (currently fixed for 31 October 2019 at 11pm GMT), and if you haven’t already done so, now is a good time to review what’s been done to prepare the UK’s export controls system for Brexit.
 
This update is part of a two-part series on the impact of Brexit on economic sanctions and export control matters. The first update is on economic sanctions after Brexit.
 
What are the key changes?
 
While the UK is still part of the EU, most of the legislation applicable to export rules is based on EU law. The key changes to export rules as a result of Brexit broadly fall into two categories:
 
*   changes to licensing processes and applicable licensing authorities in relation to trade involving the EU; and
 
*   the potential for divergence between the EU and UK’s approach to export and sanctions regulation in a post-Brexit future.
 
This update is therefore most relevant to businesses that operate internationally or export goods or services to or via the EU. It may also be relevant to businesses that import goods or services from the EU.
 
What’s been done so far to prepare the UK’s export controls system for Brexit?
 
Following Brexit, the UK will cease to be a member of the EU and, in the event of a no-deal exit, for export control purposes will be treated as a non-Member State, or ‘third country’, on exit day. This means that exports from the UK to or via the EU, and EU businesses exporting to the UK, would immediately be subject to different export controls.
 
The current UK law on export is a patchwork of legislation, some of which implements EU law (for example, controls on goods that have both a civil and military use; so called ‘dual-use’ items), some of which is purely domestic UK law and some of which implements agreements under other international treaties (for example, the Wassenaar Arrangement on export controls for conventional weapons and sensitive dual-use goods).
 
Westminster has passed legislation (under the European Union (Withdrawal) Act 2018 and the Export Control Act 2002, see here and here) to ensure that the current EU export controls on goods and services will be implemented in the UK after exit day.
 
Many of the products subject to export controls in current UK law are listed as a result of international agreements rather than as a result of the UK’s EU Membership. As such, the lists of controlled items are unlikely to change significantly due to Brexit. Importantly, although the goods classification system itself is unlikely to change dramatically after Brexit, the UK becoming a ‘third country’ to the EU means a significant procedural shift in terms of how exports to and via the EU will be dealt with from an export licensing perspective. …

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


MSEX/IM MOVERS & SHAKERS

MS_a113. Monday List of Ex/Im Job Openings: 163 Openings Posted This Week, 8 New Openings

(Source: Events & Jobs Editor) 
 

Published every Monday or first business day of the week. Please, send job openings in the following format to 
jobs@fullcirclecompliance.eu
.
 
* COMPANY; LOCATION; POSITION TITLE (WEBLINK); CONTACT INFORMATION; REQUISITION ID
 

#
” New or amended listing this week
 

* 3M; Maplewood, MN; Trade Compliance Counsel; Requisition ID; R00990035

* ABB; Bangalore, India; Trade Compiance Manager;

* Aerotek; Chesapeake, VA; Import/Export Clerk; Requisition ID: 6961684
* Aerotek; Bloomfield, CT; Import/Export Coordinator; Requisition ID: 6961684

* Agility; Boston, MA; Air Import Coordinator;
* Agility; Carson, CA; Air Import Coordinator;

* Agility; Queens, NY;
Air Import Coordinator;

* Agility; Queens, NY; Air Import Supervisor 

* Ajilon; Atlanta, GA; Import/Export Coordinator;


* Ajilon; Elizabeth, NJ; Ocean/Air Import & Export Specialist;


* Ajilon; Princeton, NJ; Import/Export Specialist;
* Ajilon; Princeton, NJ; Import and Export Coordinator;
* Ajilon; Rochelle Park, NJ; Import and Export Coordinator;
* Ajilon; Westfield, NJ; Export Coordinator;
* Ajilon; Woodbridge, NJ; Ocean Export Coordinator;

* AM General; Auburn Hills, MI; International Compliance Analyst  

#
* Arrow Electronics; Denver, CO; Transportation Import/Export Specialist; amanda.elam@arrow.com; Requisition ID: 172946

#
* Arrow Electronics; Zapopan, Mexico; Transportation Coordinator II; 
luci.desouza@arrow.com

; Requisition ID: R172262 

#
* Arrow Electronics: Zapopan, Mexico; Transportation Coordinator II; 
luci.desouza@arrow.com
; Requisition ID: R172264

* Arrowhead Products; Los Alamitos, CA; Trade Compliance Specialist 
* ASML; Chandler, AZ; Sr Export Controls Manager;
Requisition ID:
40860

* BAE Systems; Arlington, VA; International Trade Manager I (Compliance); Requisition ID: 52578BR

* Baker Hughes; Houston, TX;
Trade Compliance Classification Analyst
; Requisition ID: 1919330

* BASF; Mannheim, Germany; Manager Global Export Control; Requisition ID: EN57992009_ONLE_1

* Bio-Rad Laboratories Co., Hercules, CA,
Trade Compliance Manage
r

* Bose; Framingham, MA; Senior Customs & Trade Compliance Lead; Requisition ID: R12731

*
Butler Aerospace & Defense; New Brighton, MN;
HSE and Compliance Coordinator
;

* CACI; Chantilly, VA; Trade Compliance Analyst; Requisition ID: 223627_20151

* CACI; Chantilly, VA;
Trade Compliance Specialist; Requisition ID: 225842_20151

* CACI; Reston, VA;
Trade Compliance Specialist
; Requisition
ID: 225842

* Cargill; Jakarta, Indonesia; Global Trade Operations & Compliance   

#
* Carnegie Mellon University; Pittsburgh, PA, Export Compliance Manager; hbragg@andrew.cmu.edu;

*
CGI Federal Inc., Fairfax, VA
; Trade Compliance Analyst ;
Ann Runfola;
Requisition
ID
:
J0919-0237

* Cobham Advanced Electronic Solutions; Exeter, NH; 
Export Compliance Administrator
; Requisition ID: req2614

* Cobham Advanced Electronic Solutions; San Diego; 
Manager, USG Compliance
; Requisition ID: req2730

* Collins Aerospace; Windsor Locks, CT; International Trade Compliance Intern (Summer 2020);
Requisition ID: 01348159

* Comtech EF Data; Tempe, AZ or Germantown, MD; Vice President Compliance; Requisition ID: 2503

* Curtiss-Wright; Charlotte, NC; Senior Manager, Global Trade Compliance; Requisition ID:
5558

* Curtiss-Wright; Cheswick, PA; Sr. Manager, Global Trade ComplianceKirsty.harris@curtisswright.com; Requisition ID: 5272 
* Danaher – Leica Microsystems; Wetzlar, Germany; Chief Compliance Officer; Requisition ID: LEI004530

* DHL; Duisburg, Germay; Compliance Manager; Requisition ID: req73899
* DHL; Kuala Lumpur, Malaysia; Export Control Expert Asia Pacific; Requisition ID: req81427

* Eaton;
Menomonee Falls, WI;
Senior Analyst- Purchasing Compliance
; Requisition ID: 076684

* Elbit Systems of America; Merrimack, NH; Senior Manager, Trade Compliance; Requisition ID: 2019-7120

* Expeditors; Bedfont, United Kingdom;
Customs Brokerage Clerk 
* Expeditors; Rozenburg, the Netherlands; Import en Export control medewerker  

* Expolanka; El Segundo, CA; Export/Import Compliance Analyst;

* FLIR; Täby, Sweden; Director, Global Export Compliance EMEA; Requisition ID: REQ12627  

* Fluke Electronics; Everett, WA;
Trade Compliance Analyst  

* General Atomics; San Diego, CA;
Government Compliance Specialist
; Requisition ID: 23607BR
* General Atomics; San Diego, CA;
Government Regulatory Compliance Specialist
; Requisition ID: 25215BR

* General Atomics; San Diego, CA;
Import/Export Administrator
; Requisition ID: 24614BR

* Harris Corporation; Arlington, VA; Manager, Trade Compliance; Requisition ID:
CHQ20192008-32912

* Harvey John; Frankfurt am Main, Germany; Global Customs & Trade – Legal Counsel; Requisition ID: JR6805  


* IPG Photonics; Oxford, MA; Trade Compliance Manager; Requisition ID: 285450196

* Irving; Halifax, Canada; Export Compliance Specialist; Requisition ID: 19003115

* Itron; Raleigh, NC; Sr Manager Information Security – Audit and Compliance; Requisition ID: 1901000

* JBT; Chicago, IL;
Manager of Trade Compliance
; Requisition ID: 2019-4740

* Johnson Controls; Milwaukee, WI;
Director, Global Trade Compliance
; Requisition ID: WD30055791295;
* Koch Chem Tech; Tulsa, OK;
Import/Export Compliance Specialist
; Requisition ID: 052017

* L3Harris; Clifton, NJ; Senior Trade Compliance Specialist;
Requisition ID:
SAS20190509-33185

* L3Harris; Greenville, TX; Empowered Official; Contact Roger Ethridge, roger.ethridge@l3harris.com; Requisition ID: 110364

#
* Lawrence Livermore National Laboratory; Livermore, CA; Export Control Officer; Requisition ID: 106174

* Lenovo; Guandong, China; AP Trade Compliance Specialist; Requisition ID: 73183
*
Leonardo DRS; Melbourne, FL;
Senior Supply Chain Analyst – Small Business Compliance
; Requisition ID: 91669

* Levi Strauss & Co.; San Francisco, CA; Trade Compliance Specialist, Process Documentation & Education

* Lexacount; Washington DC; Export Controls Associate; Requisition ID: 6522

* Lockheed Martin Aeronautics; Arlington, VA;
International Licensing Analyst; Requisition ID:
493288BR

* Lockheed Martin Aeronautics; Fort Worth, TX; International Trade Compliance Intern; Requisition ID:
487961BR

* Lockheed Martin Rotary and Mission Systems; Liverpool, NY, Moorestown, NJ, Owego, NY, Stratford, CT;
Intl Licensing Analyst Stf
; Requisition ID: 483502BR

* Lufthansa; Frankfurt am Main, Germany; Director Operations Compliance & Administration

* Lufthansa; Frankfurt am Main, Germany;
Manager Compliance 

* Lutron Electronics Co; Lehigh Valley, PA;
Trade Compliance Coordinator
; Requisition ID: 4025;

* Medtronic;
Columbia Hights, MN; Associate Export Controls Analyst;
Requisition ID:
19000EXL

* Medtronic; Sao Paulo, Brazil; Import/Export Coord III; Requisition ID: 19000C9M

* Mercury Systems; Any City; Principal Trade Compliance Specialist; Requisition ID: 19-604

* Miller Canfield; Troy, MI; Corporate Attorney – International Trade; brennans@millercanfield.com 
* Moog Inc., Space and Defense Group; East Aurora, NY; Operation Trade Specialist;
* Moog Inc., Space and Defense Group; East Aurora, NY; Senior Trade Compliance Specialist;
Moog Inc., Space and Defense Group; Torrence, CA; Trade Compliance Administrator (Export);

* Morson Group; Glasgow, UK; Export Control Officer Investigations 
* NASA
/JPL; Pasadena, CA; Export Compliance Advisor; Requisition ID:
10778

#
* Netflix; Los Gatos, CA; Manager, Trade Compliance;


* Nouryon Corp; Houston, TX; Director, Global Trade Compliance;


Northrop Grumman; Herndon, VA; International Trade Compliance Analyst; Requisition ID:
19026257
* PAE; Falls Church, VA; Director – International Trade Compliance Office; Requisition ID: R0037636 

#
* Paraxel; Kiev, Ukraine; Trade Compliance Specialist;

* Pattonair; Fort Worth, TX; Trade & Regulatory Compliance Manager;

* PolyOne, Avon Lake, OH; Trade Compliance Analyst  

* Raytheon; Andover, MA; Sr An Global Trade Licensing; Requisition ID:
147196BR
* Raytheon; Ft. Wayne, IN; Sr. Analyst Global Trade Licensing; Requisition ID:
147565BR
* Raytheon; Fulton, MD; Global Trade Licensing Manager; Requisition ID:
144665BR
* Raytheon; Tucson, AZ; Global Trade Licensing Analyst; Requisition ID:
149549BR
* Raytheon; Dulles, VA; Principal Global Trade Licensing; Requisition ID: 147152BR
* Raytheon; Indianapolis, IN; Principal Global Trade Licensing; Requisition ID: 147152BR

* SABIC; Houston TX; 
Senior Analyst, Trade Compliance
;
Danielle.Cannata@sabic.com
; Requisition ID: 8411BR

* SAP; Newtown Square, PA; Export Control – Senior Specialist; Requisition ID: 226489

* SAP; Walldorf, GER; Regional Export Control Coordinator (RECC) for EMEA; Requisition ID: 226695


* Saudi Aramco; Dhahran, Saudi Arabia;
Paralegal
; Requisition ID: 17184BR

* Sierra Nevada Corporation; Arlington, VA; International Trade Compliance Analyst II; Requisition ID: R0007996

* Sophos; Multiple Locations; Senior Manager, Trade Compliance;

#
* SRC Inc.; Syracuse, NY; International Trade Compliance Analyst; Requisition ID: 3526

* Thales; Crawley, UK;
Trade Compliance Officer
; Requisition ID: R0071081

* Thales; Brest, France; Export Control Manager (H/F); Requisition ID: R0069297

* Thales; Gennevilliers, France;
Senior Trade Compliance Manager H/F
; Requisition ID: R0064439
* Thales; Valence, France;
Trade Compliance Manager (H/F)
; Requisition ID: R0069297

* Tiffany & Co; Parsippany, NJ; Director, Trade & Logistics – Americas 

* Torres Law, PLLC; Dallas, TX; 
Import/Export Consultant-Legal

info@torrestradelaw.com 

* Varian Medical Systems; Austin, TX; Global Trade Analyst; Requisition ID: 16361BR

* Viasat; Carlsbad, CA;
Global Trade Analyst
; Requisition ID: 2824

* Vodafone; Bucharest, Romania;
Legal Sanctions and Trade Analyst
; Requisition ID: 258811

* Walt Disney; Kissimmee, FL;
Customs Compliance Specialist
; Requisition ID:
698918BR

* Wealth Ocean; Newport Beach, CA;
Marketing & International Trade Specialist    
* World Wide Technology; Edwardsville, IL; International Trace Compliance Specialist; Requisition ID: 19-0772

  
 
back to top 

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

TEEX/IM TRAINING EVENTS & CONFERENCES

TE_a1

14.
ECTI Presents Conflicts Between EU and US Export Rules Webinar: October 31, 2019  
(Source:
Danielle Hatch)

 
* What: Conflicts Between EU and US Export Rules
* When: October 31, 2019; 9:00 a.m. (EDT)
* Where: Webinar
* Sponsor: Export Compliance Training Institute (ECTI)
* ECTI Speaker: Stephan M
üller
* Register
here or Danielle Hatch, 540-433-3977.

 


back to top 

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

TE_a215. FCC Presents “The ABC of FMS”, 28 Nov in Bruchem, the Netherlands

 
This training course is specifically designed for compliance professionals and those in a similar role working for government agencies or companies (temporarily) obtaining U.S. export-controlled articles and technology procured through government-to-government Foreign Military Sales (FMS), and authorized by the Arms Export Control Act (AECA) (22 U.S.C. 2751, et. seq.).
 
The course will cover multiple topics relevant for organizations outside the U.S. working with U.S. export-controlled articles and technology procured through FMS, including: the U.S. regulatory framework, with a special focus on the AECA, key concepts and definitions, and practical compliance tips to ensure the proper handling of FMS-acquired articles and technology. Participants will receive a certification upon completion of the training.
 
Details
* What: The ABC of Foreign Military Sales (FMS)
* When: Thursday, 28 Nov 2019
– Welcome and Registration: 9.00 am – 9.30 am
– Training hours: 9.30 am – 4.00 pm
* Where: Full Circle Compliance, Landgoed Groenhoven, Dorpsstraat 6, Bruchem, the Netherlands
* Information & Registration: here or contact FCC at events@fullcirclecompliance.eu or + 31 (0)23 – 844 – 9046
* This course can be followed in combination with “U.S. Export Controls: The International Traffic in Arms Regulations (ITAR) from a non-U.S. Perspective” (26 Nov 2019), and/or “U.S. Export Controls: The Export Administration Regulations (EAR) from a non-U.S. Perspective” (27 Nov 2019). Please, see the event page for our combo deals.

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

ENEDITOR’S NOTES

Mon, 21 Oct
* Stanislaus I (Stanisław I Leszczyński ;20 Oct 1677 – 23 Feb 1766; was King of Poland, Grand Duke of Lithuania, Duke of Lorraine and a count of the Holy Roman Empire.)
  – “To believe with certainty we must begin with doubting.”
 
* Alfred Nobel (Alfred Bernhard Nobel; 21 Oct 1833 – 10 Dec 1896; was a Swedish businessman, chemist, engineer, inventor, and philanthropist. Nobel held 356 different patents, dynamite and gelignite being the most famous.  After reading a premature obituary which condemned him for profiting from the sales of arms, he bequeathed his fortune to institute the Nobel Prizes.”
  – “One can state, without exaggeration, that the observation of and the search for similarities and differences are the basis of all human knowledge.”
 
Monday is pun day.

* Why couldn’t the leopard cub play hide and seek?  Because he was always spotted.
* A geologist discovered a rock which measured 5,280 feet in length. Must be some kind of milestone.
* I relish the fact that you’ve mustard up the strength to ketchup to me
 
back to top
 

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

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.
 


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 October 2019: FR 56117-56121: Restricting Additional Exports and Reexports to Cuba 

 

*
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.

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

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.


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

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

* TO UNSUBSCRIBE: Use the Safe Unsubscribe link below.

Scroll to Top