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19-1127 Wednesday “Daily Bugle'”

19-1127 Wednesday “Daily Bugle”

Wednesday, 27 November
2019
(The Daily Bugle will not be published tomorrow, a U.S. Federal holiday.) 

  1. Commerce Proposes Regulations to Implement Exec. Order on “Securing the Information and Communications Technology and Services Supply Chain”
  1. Items Scheduled for Publication in Future Federal Register Editions 
  2. Commerce/BIS: (No new postings.) 
  3. DoD/DCSA: “DCSA Knowledge Center to Close Friday”
  4. State/DDTC: Thanksgiving Holiday Schedule
  5. Treasury/OFAC Issues New and Amended Iran-related Frequently Asked Questions
  1. “US Sends Investigators to UAE and Saudi to Probe CNN Weapons Violations Findings”
  2. “Angela Merkel Calls for More Weapons Exports to Africa”
  3. “USTR Announces New Exclusions on List 3 of the Section 301 Tariffs”
  4. “$75 Million Penalty for Bribery of Foreign Officials”
  1. Actecon: “Export Controls in Turkey”
  1. DDTC: “DTCC Seeks New Director of Compliance”
  1. ECTI Presents United States Export Controls (ITAR/EAR/OFAC) Seminar Series in San Diego, CA: January 20-23, 2020
  2. Full Circle Compliance Presents: Export Compliance Training Seminars 
  1. Bartlett’s Unfamiliar Quotations 
  2. Are Your Copies of Regulations Up to Date? Latest Amendments: DHS/Customs (5 Apr 2019), DOC/EAR (13 Nov 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 

Are You Keeping Up to Date with the Latest Regulations?

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EXIMITEMS FROM TODAY’S FEDERAL REGISTER

EXIM_a11
. Commerce Proposes Regulations to Implement Exec. Order on “Securing the Information and Communications Technology and Services Supply Chain”
(Source:
Federal Register, 27 Nov 2019.) [Excerpts.]
 
84 FR 65316-65322: Securing the Information and Communications Technology and Services Supply Chain
 
* AGENCY: U.S. Department of Commerce.
* ACTION: Proposed rule; request for comments.
* SUMMARY: Pursuant to an Executive order of May 15, 2019, entitled “Securing the Information and Communications Technology and Services Supply Chain,” the Department of Commerce (the Department) proposes to implement regulations that would govern the process and procedures that the Secretary of Commerce (Secretary) will use to identify, assess, and address certain information and communications technology and services transactions that pose an undue risk to critical infrastructure or the digital economy in the United States, or an unacceptable risk to U.S. national security or the safety of United States persons.
* DATES: Written comments must be received on or before December 27, 2019. …
* FOR FURTHER INFORMATION CONTACT: Henry Young, U.S. DOC, 1401 Constitution Avenue NW, Washington, DC 20230; 202-482-0224.
* SUPPLEMENTARY INFORMATION: …
* Dated: November 19, 2019. Wilbur L. Ross, Secretary of Commerce.

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OGSOTHER GOVERNMENT SOURCES

OGS_a12
. Items Scheduled
for Publication in Future Federal Register Editions

(Source: Federal Register)
 

[No items of interest today.]

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

(Source: Commerce/BIS)

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OGS_a34
.
DoD/DCSA: “DCSA Knowledge Center to Close Friday”

(Source: DoD/DCSA, Nov. 27, 2019.) 
 


The Defense Counterintelligence and Security Agency (formerly Defense Security Service) Knowledge Center, Personnel Security (PCL) inquiries to include e-QIP authentication resets closed at 3 pm Wednesday, 27 Nov 2019, and will be closed all day Friday, November 29, 2019. Normal business hours, 8 am to 5 pm Eastern, will resume Monday, 2 Dec 2019.

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OGS_a45.  
State/DDTC: Thanksgiving Holiday Schedule
DDTC offices will be closed tomorrow, Thanksgiving Day, 28 Nov 2019. In addition, on Friday, 20 Nov 2019, due to minimal staffing, DDTC has cancelled the 3:00 PM courier drop-off/pick-up. The DDTC Response Team and DDTC Help Desk will be open, but depending on volume, most responses may be delayed until next week.

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OGS_a56. Treasury/OFAC Issues New and Amended Iran-related Frequently Asked Questions

(Source: Treasury/OFAC)
 
The Department of the Treasury’s Office of Foreign Assets Control (OFAC) is updating existing 
FAQ 303
(
Which insurance, reinsurance, or underwriting activities are potentially subject to sanctions under IFCA’s section 1246(a)(1)?)
and 
FAQ 804
(Do sanctions on COSCO Shipping Tanker (Dalian) Co. and COSCO Shipping Tanker (Dalian) Seaman & Ship Management Co. apply to their corporate parent and affiliates?(, and is publishing 
three new Iran-related FAQs.

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COMNEWS

NWS_a17.
CNN: “US Sends Investigators to UAE and Saudi to Probe CNN Weapons Violations Findings”
(Source: CNN, 26 Nov 2019) [Excerpts.]
 
The US State Department and Pentagon are sending teams to the UAE and Saudi Arabia to investigate CNN’s findings that American-made weaponry has been transferred to rebel fighters and separatist militia in Yemen. …
CNN’s ongoing investigation has found that American-made armored vehicles (known as Mine-Resistant Ambush Protected vehicles, or MRAPs) which were sold to the UAE and Saudi Arabia have been transferred — in violation of their agreements with Washington — to groups including al Qaeda-linked fighters, Iranian-backed rebels and separatist militias.
 
American weapons ended up in the wrong hands in Yemen. Now they’re being turned on the US-backed government. These factions have since turned them against the internationally recognized Yemeni government forces which the US supports. …

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NWS_a28.
Deutsche Welle: “Angela Merkel Calls for More German Weapons Exports to Africa”

(Source: Deutsche Welle) [Excerpts.]
 
The chancellor has called on politicians to rethink restrictive arms export policies, arguing they are not in Germany’s best interest. She made the case for more engagement in Africa’s Sahel region.
    
German Chancellor Angela Merkel stressed the urgency of preventing Libya from becoming a proxy war like Syria and underlined the threat of destabilization in Africa’s Sahel region by terrorists, in comments to Germany’s parliament, the Bundestag, on Wednesday. …
 
During her address, Merkel urged parliamentarians to reconsider their restrictive arms export stance, arguing that Germany cannot continue to train and encourage African forces fighting terrorists but not arm them. …

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NWS_a39.
Expeditors News: “USTR Announces New Exclusions on List 3 of the Section 301 Tariffs”
 

(Source: Expeditors News)
 
Yesterday, November 26, 2019, the Office of the U.S. Trade Representative (USTR) issued a notice announcing additional exclusions on products of Chinese origin subject to the third list of Section 301 tariffs.


 
The exclusions cover 32 product descriptions, addressing 39 separate exclusion requests.


 
Product descriptions listed include, but are not limited to:
  – Various welding tubes and pipes;
  – Certain bicycles;
  – Certain sodium metal.
 
The exclusions are retroactive to September 24, 2018 and will be valid through August 7, 2020.  They can be claimed under 9903.88.35.
 
The product exclusion announcement can be found HERE.

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NWS_a410.
ST&R Trade Report: “$75 Million Penalty for Bribery of Foreign Officials”
(Source: Sandler, Travis & Rosenberg Trade Report, 27 Nov 2019) [Excerpts.]
 
A Korean company [Samsung Heavy Industries Company Ltd] has agreed to pay more than $75 million to settle charges that it violated the Foreign Corrupt Practices Act in connection with its participation in a corrupt scheme to pay millions of dollars in bribes to officials in Brazil, according to a Department of Justice press release.
 
According to admissions from the company in question, beginning in 2007 and continuing until 2013 the company conspired with others to violate the FCPA by corruptly providing approximately $20 million in commission payments to a Brazilian intermediary, knowing that portions of the money would be paid as bribes to officials at a Brazilian state-owned oil and state-controlled energy company. These commission payments were made in order to secure improper business advantages and to cause the Brazilian company to enter into a contract to charter a drill ship that the Korean company was selling to a Houston-based offshore oil drilling company, which facilitated the execution of the sale of the drill ship. The Korean company also took actions in furtherance of the bribery conspiracy from its U.S. branch office.
 
The Korean company has entered into a deferred prosecution agreement with the Justice Department under which it agreed to pay a total criminal penalty of $75.48 million, an amount that will be apportioned equally to U.S. and Brazilian authorities. As part of this deal, the Korean company has also agreed to (1) continue to cooperate with the Justice Department in any ongoing investigations and prosecutions relating to the conduct (including of individuals), (2) enhance its compliance program, and (3) report to the Justice Department on the implementation of its enhanced compliance program.

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COMCOMMENTARY

COM_a111.
Actecon: “Export Controls in Turkey”

(Source: Acteon Law Firm, Turkey) [Excerpts.]
 
What general controls are imposed on exports?
 
Products listed in Appendix 1 of the Regulation on Trade Barriers and Standardisation of Foreign Trade are subject to mandatory standards and quality controls. Exporters must apply to the relevant Group Presidency of Inspectorates for the Standardisation of Foreign Trade to export the listed products. A Control Certificate is issued by the Group Presidency of Inspectorates for the Standardisation of Foreign Trade if the products meet the required standards.
 
Government Authorities 
 
Which authorities handle the controls?   
 
In general, the inspectorates of standardisation for foreign trade are empowered to conduct conformity assessments of the exported products against required standards, technical regulations and quality. Those are also competent to deliver the relevant documentation in this regard. Furthermore, the administrative authorities in charge of controlling and those in charge of approving the exportation of the goods subject to control are mentioned in each of the relevant regulations. The main authorities administering export control are the Ministry of National Defence for military materials and equipment, the Turkish Atomic Energy Authority for nuclear and nuclear dual-use materials, and the Ministry of Trade for other dual-use materials.


 
Special Controls
 
Are separate controls imposed on specific products? Is a licence required to export such products? Give details.
 
Specific certificates and analysis may be required in particular in cases of plant and livestock exports. The details are as follows:
phytosanitary certificate – export of unprocessed agricultural products requires a phytosanitary certificate in order to attest that the consignment meets phytosanitary export requirements. The certificate is prepared in line with the 1951 Rome Treaty; and health certificate – all agricultural products require a health certificate based on the requirements of the purchasing country. The evaluations of the inspection report and analysis results are based either on the requirements of the purchasing country or on the Turkish Food Codex.
 
There are also additional procedures, such as the EU’s requirement for an analytical report as well as a health certificate to show that aflatoxin levels are acceptable in the case of exportation of nuts and dried fruits, or the requirement of a radiation analysis to prove that radiation levels are below the limits for exportation of mushrooms. …
 
Additionally, Turkey is a party or member to the Wassenaar Arrangement, the Chemical Weapons Convention, the Missile Technology Control Regime, The Australia Group, the Zangger Committee and the Nuclear Suppliers Group.
 
Supply Chain Security
 
Has your jurisdiction implemented the WCO’s SAFE Framework of Standards? Does it have an AEO programme or similar?
 
Turkey is a party to the WCO’s SAFE Framework of Standards Agreement. According to article 5/A of the Customs Law no 4458, the AEO status can be granted by the Customs Undersecretariat to economically active residents who have the requisite qualifications, such as financial capability.
 
Applicable Countries
 
Where is information on countries subject to export controls listed?
The following communiqués establish lists of products subject export control:
the Communiqué setting out the List regarding War Tools and Equipment, Weapons, Ammunitions and Spare Parts thereof, Military Explosive Materials, and Technologies thereof established on the basis of the Law No. 5201;
Communiqué No. 96/31 on the Goods whose Export is Prohibited or Subject to a Pre-Authorization;
Communiqué No. 2006/7 on the Goods whose Export is Subject to Registration; and Communiqué No. 2007/1 on the ‘Warning List regarding Nuclear Transfer’ and the ‘List of Nuclear Dual-Use Goods’, which indicate the items of the goods falling under the regulation on the granting of the document that will serve as a basis for the approval of the use of nuclear and nuclear dual-use goods.
 
Named Persons and Institutions
 
Does your jurisdiction have a scheme restricting or banning exports to named persons and institutions abroad? Give details.
No, there is no scheme restricting or banning exports in Turkey. Nevertheless, Turkey implements the lists of sanctioned individuals and entities established by the United Nations and by the EU.
 
Penalties
 
What are the possible penalties for violation of export controls?
The violation of an export control rule can lead to the imposition of an administrative fine that is double the customs value of the goods whose exportation is prohibited by a general administrative act (article 235(2) of Law No. 4458 on Customs). The exportation of goods whose exportation is subject to the granting of a licence, to the satisfaction of a condition or to an approval may lead to an administrative fine worth the customs value.
 
From a criminal viewpoint, Anti-Smuggling Law No. 5607 provides that, unless the behaviour concerned constitutes an offence requiring a heavier punishment, persons who export goods whose exportation has been prohibited can be subject to imprisonment for from one to three years and to a judicial fine which is equivalent to 5,000 days. According to article 52(2) of the Turkish Penal Law, the amount of a fine equivalent to one day varies between 20 lira and 100 lira and must be determined on the basis of the economic situation and other personal characteristics of the person concerned.

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TEEX/IM TRAINING MOVERS & SHAKERS

MS_112. 
DDTC: “DTCC Seeks New Director of Compliance”
(Source: DDTC) [Excerpts.]
 
Summary (See full description HERE). 
  -This position is in the Bureau of Political-Military Affairs (PM), Directorate of Defense Trade Controls (DDTC), Office of Defense Trade Controls Compliance (DTCC).  Provides subject matter expertise and regulatory policy recommendations and direction to DDTC offices, as well as supervision, guidance and leadership for DTCC staff. 
 
Responsibilities
  – Supports the Director of DTCC to oversee and guide a DTCC subdivision performing a variety of activities and special projects related to compliance with the Arms Export Control Act (AECA) and the International Traffic in Arms Regulations (ITAR).
  – Advising office, directorate, and Bureau leadership and law enforcement agencies about foreign policy issues and national security implications of administrative AECA/ITAR compliance investigations and criminal enforcement activities.
  – Manages administrative compliance cases, enforcement procedures, and investigations, as well as recommending corrective actions and remedies to improve compliance.
  – Engages in law enforcement to exchange information on potential AECA/ITAR violations. Oversees office support to criminal investigations and prosecutions conducted by law enforcement agencies throughout the country.
Interprets and apply legislative and regulatory material to make decisions and recommendations of general and specific applicability concerning AECA/ITAR compliance.   
  – Open & closing dates:  27 Nov 2019 to 11 Dec 2019
  – Pay scale & grade: GS 15; $137,849 to $166,500 per year
  – Appointment type: Permanent
  – Work schedule: Full-Time

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TEEX/IM TRAINING EVENTS & CONFERENCES

TE_113.
ECTI Presents United States Export Controls (ITAR/EAR/OFAC
)
 Seminar Series in San Diego, CA: January 20-23, 2020
(Source:
Jill Kincaid
)
 
* What: United States Export Controls (ITAR/EAR/OFAC) Seminar Series in San Diego, CA
* When: ITAR Seminar: January 20-21, 2020; EAR/OFAC Seminar: January 22-23, 2020
* Where: San Diego, CA: Doubletree Hotel San Diego Downtown 
* Sponsor: Export Compliance Training Institute (ECTI)
* ECTI Speaker Panel: Scott Gearity, John Black, Greg Creeser, Marc Binder, and Maarten Sengers
* Register
here
 
or 
Jessica Lemon
, 540-433-3977.

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TE_a214. Full Circle Compliance Presents: Export Compliance Training Seminars
(Source: Full Circle Compliance)

U.S. and EU Sanctions & Embargoes

Tuesday, 4 February 2020 in Amsterdam

Designing an ICP for Export Controls & Sanctions

Tuesday, 3 March 2020 in Amsterdam

Implementing an ICP for Export Controls & Sanctions

Wednesday, 4 March 2020 in Amsterdam

ENEDITOR’S NOTES

EN_a115. Bartlett’s Unfamiliar Quotations

(Source: Editor)
 

* Charles A. Beard
(Charles Austin Beard; 27 Nov 1874 – 1 Sep 1948; was an American historian. His influence came from hundreds of monographs, textbooks, and interpretive studies in both history and political science. His works included a radical re-evaluation of the founding fathers of the United States, who he believed were motivated more by economics than by philosophical principles. Beard’s most influential book, An Economic Interpretation of the Constitution of the United States (1913), has been the subject of great controversy ever since its publication.)
  – “You need only reflect that one of the best ways to get yourself a reputation as a dangerous citizen these days is to go about repeating the very phrases which our founding fathers used in the struggle for independence.”
  – “When it is dark enough, you can see the stars.”
 
* William Blake
(28 Nov 1757 – 12 Aug 1827; was an English poet, painter, and printmaker. Largely unrecognised during his lifetime, Blake is now considered a seminal figure in the history of the poetry and visual arts of the Romantic Age.)
  – “The man who never alters his opinions is like standing water, and breeds reptiles of the mind.”

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EN_a216. 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.
 
Agency 
Regulations 
Latest Update 
DHS CUSTOMS REGULATIONS: 19 CFR, Ch. 1, Pts. 0-199.  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.  13 Nov 2019: 84 FR 61674-61676Addition of Entities to the Entity List, Revision of an Entry on the Entity List, and Removal of Entities from the Entity List.
DOC FOREIGN TRADE REGULATIONS (FTR): 15 CFR Part 30.   Last Amendment: 24 Apr 2018: 83 FR 17749-17751: Foreign Trade Regulations (FTR): Clarification on the Collection and Confidentiality of Kimberley Process Certificates 
DOD NATIONAL INDUSTRIAL SECURITY PROGRAM OPERATING MANUAL (NISPOM): DoD 5220.22-M. Implemented by Dep’t of Defense.  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.   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.  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.  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.  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.

DOT FOREIGN ASSETS CONTROL REGULATIONS (OFAC FACR): 31 CFR, Parts 500-599, Embargoes, Sanctions, Executive Orders.
 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. 

 

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

  

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EN_a3

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