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20-0225 Tuesday “Daily Bugle”

20-0225 Tuesday “Daily Bugle”

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Tuesday, 25 February 2020

  1. Commerce/BIS Requests Comments on Foreign Availability Procedures
  2. Commerce/BIS Requests Comments on Procedure for Parties on the Entity List and Unverified List to Request Removal or Modification of Their Listing
  3. Commerce/BIS Requests Comments on Report of Requests for Restrictive Trade Practice or Boycott
  4. USTR Grants Product Exclusions Concerning China
  1. Items Scheduled for Publication in Future Federal Register Edition (No New postings)
  2. Commerce/BIS: (No new postings.) 
  3. State/DDTC: (No new postings.) 
  4. Japan METI Announces Eighth Japan-Korea Export Control Policy Dialogue on 10 March 
  1. American Shipper: “US Tightens Export Controls for Russia, Yemen” 
  2. DefenseWorld: “Planned Export Restrictions On Military-Grade Semiconductors Worry China” 
  1. Steptoe: “Sanctions Top-5 for the Week Ending 21 February 2020” 
  1. ECS Presents “Managing ITAR/EAR Complexities Seminar” on 25-26 Mar in Park City, UT 
  2. FCC Academy Presents: Designing & Implementing an ICP 3-4 March in Amsterdam 
  1. Bartlett’s Unfamiliar Quotations 
  2. Are Your Copies of Regulations Up to Date? Find the Latest Amendments Here.
  3. Weekly Highlights of the Daily Bugle Top Stories 
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EXIMITEMS FROM TODAY’S FEDERAL REGISTER

EXIM_a1
1.
Commerce/BIS Requests Comments on Foreign Availability Procedures
(Source: Federal Register, 25 Feb 2020) [Excerpts]
 
85 FR 10652: Submission for OMB Review; Comment Request
 
The Department of Commerce will submit to the Office of Management and Budget (OMB) for clearance the following proposal for collection of information under the provisions of the Paperwork Reduction Act (44 U.S.C. Chapter 35).
 
* Agency: Bureau of Industry and Security.
* Title: Foreign Availability Procedures.
– Form Number(s): N/A.

– Respondent’s Obligation: Voluntary.

– This information collection request may be viewed at reginfo.gov http://www.reginfo.gov/public/. Follow the instructions to view Department of Commerce collections currently under review by OMB.
– Written comments and recommendations for the proposed information collection should be sent within 30 days of publication of this notice to OIRA_Submission@omb.eop.gov.

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EXIM_a2
2.
Commerce/BIS Requests Comments on Procedure for Parties on the Entity List and Unverified List to Request Removal or Modification of Their Listing
(Source: Federal Register, 25 Feb 2020) [Excerpts]
 
85 FR 10653: Submission for OMB Review; Comment Request
 
The Department of Commerce will submit to the Office of Management and Budget (OMB) for clearance the following proposal for collection of information under the provisions of the Paperwork Reduction Act (44 U.S.C. Chapter 35).
 
* Agency: Bureau of Industry and Security.
* Title: Procedure for Parties on the Entity List and Unverified List to Request Removal or Modification of Their Listing
 

The Entity List appears at 15 CFR part 744, Supp. No. 4, and the Unverified List appears at 15 CFR part 744, Supp. No. 6. The Entity List and Unverified List are used to inform the public of certain parties whose presence in a transaction that is subject to the Export Administration Regulations (15 CFR parts 730-799) requires a license from the Bureau of Industry and Security (BIS). Requests for removal from the Entity List would be reviewed by the Departments of Commerce, State, and Defense, and Energy and Treasury as appropriate. The interagency decision, as communicated to the requesting entity by BIS, would be the final agency action on such a request. Requests for removal from the Unverified List would be reviewed by the Department of Commerce. The decision, as communicated to the requesting entity by BIS, would be the final agency action on such a request. This is a voluntary collection.

 
– Written comments and recommendations for the proposed information collection should be sent within 30 days of publication of this notice to OIRA_Submission@omb.eop.gov.

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

EXIM_a3
3.
Commerce/BIS Requests Comments on Report of Requests for Restrictive Trade Practice or Boycott
(Source: Federal Register, 25 Feb 2020) [Excerpts]
 
85 FR 10652-10653: Submission for OMB Review; Comment Request
 
The Department of Commerce will submit to the Office of Management and Budget (OMB) for clearance the following proposal for collection of information under the provisions of the Paperwork Reduction Act (44 U.S.C. Chapter 35).
 
* Agency: Bureau of Industry and Security.
* Title: Report of Requests for Restrictive Trade Practice or Boycott.
– Form Number(s): BIS-621P, BIS-6051P, BIS-6051 P-a.

– Needs and Uses: This information is used to monitor requests for participation in foreign boycotts against countries friendly to the U.S. The information is analyzed to note changing trends and to decide upon appropriate action to be taken to carry out the United States’ policy of discouraging United States persons from participating in foreign restrictive trade practices and boycotts directed against countries friendly to the United States.

– Respondent’s Obligation: Mandatory
– This information collection request may be viewed at reginfo.gov, http://www.reginfo.gov/public/.
  Written comments and recommendations for the proposed information collection should be sent within 30 days of publication of this notice to OIRA_Submission@omb.eop.gov.

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

EXIM_a4
4.
USTR Grants Product Exclusions Concerning China
(Source: Federal Register, 25 Feb 2020) [Excerpts]
 
85 FR 10808-10809: Notice of Product Exclusion: China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation
 
* AGENCY: Office of the United States Trade Representative.
* ACTION: Notice of Product Exclusion and Amendment.
* SUMMARY: Effective August 23, 2018, the U.S. Trade Representative imposed additional duties on goods of China with an annual trade value of approximately $16 billion as part of the action in the Section 301 investigation of China’s acts, policies, and practices related to technology transfer, intellectual property, and innovation. The U.S. Trade Representative’s determination included a decision to establish a product exclusion process. The U.S. Trade Representative initiated the exclusion process in September 2018, and stakeholders have submitted requests for the exclusion of specific products. The U.S. Trade Representative is issuing determinations to grant exclusion requests on a rolling basis. This notice announces the U.S. Trade Representative’s determination to grant the additional exclusion specified in the Annex to this notice, and to make a technical amendment to a previously granted exclusion.
* DATES: The product exclusion will apply as of the August 23, 2018 effective date of the $16 billion action, and will extend through October 1, 2020. The technical amendment announced in this notice applies to the time period established for the original exclusion, that is, retroactive to the original date of October 2, 2019, and ending on October 1, 2020 at 11:59 p.m. EDT. U.S. Customs and Border Protection will issue instructions on entry guidance and implementation.
* FOR FURTHER INFORMATION CONTACT: For general questions about this notice, contact Assistant General Counsel Philip Butler or Director of Industrial Goods Justin Hoffmann at (202) 395-5725. For specific questions on customs classification or implementation of the product exclusions identified in the Annex to this notice, contact traderemedy@cbp.dhs.gov.
* SUPPLEMENTARY INFORMATION: …
 
B. Determination To Grant Exclusion
 
Based on the evaluation of the factors set out in the September 18 notice, which are summarized above, pursuant to sections 301(b), 301(c), and 307(a) of the Trade Act of 1974, as amended, and in accordance with the advice of the interagency Section 301 Committee, the U.S. Trade Representative has determined to grant the product exclusion set out in the Annex to this notice. The U.S. Trade Representative’s determination also takes into account advice from advisory committees and any public comments on the pertinent exclusion request.
 
As set out in the Annex, the exclusion is reflected in a specially prepared product description, found in Paragraph A.
 
In accordance with the September 18 notice, an exclusion is available for any product that meets the description in the Annex, regardless of whether the importer filed an exclusion request. Further, the scope of the exclusion is governed by the scope of the 10-digit HTSUS subheading and product description in the Annex to this notice, and not by the product description set out in any particular request for exclusion.
 
C. Technical Amendment to an Exclusion
 
Subparagraph B of the Annex makes a technical amendment to U.S. note 20(y)(2) to subchapter III of chapter 99 of the HTSUS, as set out in the annex of the notice published at 84 FR 52553 (October 2, 2019). In particular, the amendment in Subparagraph B converts an exclusion of a specially prepared product description to an exclusion of a 10-digit HTSUS subheading.
 
The U.S. Trade Representative will continue to issue determinations on a periodic basis as needed. …

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OGSOTHER GOVERNMENT SOURCES

OGS_a1
5.
Items Scheduled for Publication in Future Federal Register Editions
(Source: Federal Register)
[No items of interest today]

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OGS_a2
6.
Commerce/BIS: (No new postings.)
(Source: Commerce/BIS)

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

OGS_a3
7.
State/DDTC: (No new postings.)
(Source: State/DDTC)

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

(Source:
METI, 24 Feb 2020)
On February 21st, the Ministry of Economy, Trade and Industry (METI) and Korean Ministry of Trade, Industry and Energy (MOTIE) held a Director-General level preparatory meeting in Seoul, the Republic of Korea. As a result of the meeting, both sides agreed to hold the Eighth Japan-Korea Export Control Policy Dialogue in Seoul on March 10th.
 
During the forthcoming policy dialogue, both sides will discuss issues including further updates to the status of export control systems and their implementations in order to contribute to exploring resolution of issues of concern.

 

* Date

   March 10th, 2020 

* Venue
   Seoul
* Participants
   Iida Yoichi, Director-General, Trade Control Department, METI

   Lee Ho-hyeon, Director General for International Trade Policy     

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

NWSNEWS

NWS_a19. American Shipper: “US Tightens Export Controls for Russia, Yemen”

(Source:
American Shipper
,
24 Feb 2020) [Excerpts]
 

The Commerce Department wants to further restrict U.S.-origin items that could assist in nuclear and missile weapons development and diversion efforts in the two countries.
 
The Commerce Department’s Bureau of Industry and Security (BIS) is undertaking a comprehensive review of all Country Groups in the Export Administration Regulations (EAR) to ensure they reflect current U.S. national security and foreign policy interests. …
 
The Trump administration has voiced concern about Russian security services agents allegedly using dangerous nuclear, biological and chemical weapons-grade materials to carry out attacks against overseas adversaries to the regime. …
 
In the same rule, BIS has shifted Yemen from the Country Group B list to the D:1 list. This means Yemen will no longer have access to U.S. export license exceptions for low-value shipments, shipments to other Country Group B countries, and technology and software under restriction.

(Source:
DefenseWorld, 25 Feb 2020) [Excerpts]
 
As a group of 42 nations including the US and Japan plan to restrict weapon-capable semiconductor exports to ensure cyber-security, China is worried that its weapons development program may be hit. …
 
Quoting an industry ‘insider,’ the report said that imported semiconductors generally perform better compared with domestic ones. “Take the night vision goggles as an example, foreign goggles made with foreign parts could be used for 15,000 hours, while domestically made ones could only last for around 10,000 hours or even less,” said the insider.
 
The new restrictions are allegedly targeted in order to curb proliferation of military technology into China, North Korea and Iran; to counter cyberattacks and other international threats.

COMCOMMENTARY

COM_a111. Steptoe: “Sanctions Top-5 for the Week Ending 21 February 2020”

(Source:
Linkedin, 25 Feb 2020)
* Author: Nicholas Turner, Esq.
 
, 852-2158-8445,
Steptoe & Johnson LLP
 
(1) The US Office of Foreign Assets Control (OFAC) named Rosneft Trading SA-Rosneft’s Geneva-based subsidiary-as a Specially Designated National (SDN) pursuant to Executive Order 13850 for operating in the oil sector of Venezuela. General License 36 gives US persons until 20 May 2020 to wind down their transactions with the company. Meanwhile, the Venezuelan government reportedly asked the International Criminal Court (ICC) to investigate unspecified US officials for crimes against humanity.
 
(2) The Financial Action Task Force (FATF) Plenary placed Iran on the list of “high-risk jurisdictions subject to a call for action” (formerly known as the “public statement” or “black list” or “list of non-cooperative countries or territories”) due to strategic deficiencies in its anti-money laundering and counter-terrorist financing (AML/CTF) regime. Iran joins North Korea as the only countries currently on the list. (More on what this means in the comments below.)
 
(3) OFAC designated two members of Iran’s Guardian Council and three members of the body’s Elections Supervision Committee as SDNs under Executive Order 13876 for their roles in disqualifying thousands of candidates leading up to this weekend’s parliamentary elections in Iran.
 
(4) The European Union added eight individuals and two companies in Syria to the EU Sanctions List for taking part in projects benefiting the Syrian government. The targets include the Al-Qatarji Company, which OFAC sanctioned in September 2018, and Amer Foz, who OFAC sanctioned in June 2019.
 
Comments
 
Iran’s access to the international financial system is already limited as a result of US secondary sanctions. So what’s the big deal with FATF’s call for action? As described in FATF’s statement, the decision to urge countries to impose counter measures is based on Iran’s own failure to implement agreed-upon legal and regulatory changes to bring the country in line with the FATF Recommendations, including ratifying and implementing the UN Convention against Transnational Organized Crime (the Palermo Convention) and the International Convention for the Suppression of the Financing of Terrorism.
 
FATF is regarded as reasonably neutral as far as intergovernmental bodies go, making it hard to pin Iran’s failure to uphold its commitments after almost four years of public monitoring on the United States. There are nine counter measures described in the interpretive note to FATF Recommendation 19 which could be implemented in response to the call for action. These include imposing heightened due diligence requirements on Iran-related transactions, restricting the opening of branches or correspondent accounts of Iranian banks outside of Iran, requiring banks to report on their Iranian transactions, and others.
 
Meanwhile, the US government is likely to use FATF’s call for action as a basis for haranguing countries that fail to impose strict counter measures. Indeed, the US State Department and Treasury Department have already issued statements in favor of FATF’s decision (here and here).

TEEX/IM TRAINING EVENTS & CONFERENCES

TE_a112. 
ECS Presents “Managing ITAR/EAR Complexities Seminar” on 25-26 Mar in Park City, UT

 
*What:  Managing ITAR/EAR Complexities Seminar
*When:  March 25-26, 2020
*Sponsor:  Export Compliance Solutions & Consulting (ECS)
*ECS Instructors:  Suzanne Palmer, Lisa Bencivenga
*Register 

here
 or by calling 866-238-4018 or
email

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

TE_a213. FCC Academy Training Courses

Designing an ICP for  
Export Controls & Sanctions

Tuesday, 3 March 2020 in Amsterdam, The Netherlands

Implementing an ICP for Export Controls & Sanctions
Wednesday, 4 March 2020 in Amsterdam, The Netherlands

ENEDITOR’S NOTES

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

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 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.

24 Feb 2020:
85 FR 10274-10278
: Amendments to Country Groups for Russia and Yemen Under the Export Administration Regulations
 

 

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. 
DOE EXPORT AND IMPORT OF NUCLEAR EQUIPMENT AND MATERIAL; 10 CFR Part 110.

25 Nov 2019: 84 FR 64740-64754: Rules of Practice in Explosives License and Permit Proceedings; Revisions Reflecting Changes Consistent With the Homeland Security Act of 2002
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.  23 Jan 2020: 85 FR 3819:

Department of State final rule amending § 121.1, USML Categories I, II, and III, and numerous related sections (effective Mar. 9, 2020).
DOT FOREIGN ASSETS CONTROL REGULATIONS (OFAC FACR): 31 CFR, Parts 500-599, Embargoes, Sanctions, Executive Orders.
 

7 Feb 2020:
85 FR 7223-7230
:
Mali Sanctions 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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