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20-0309 Monday “Daily Bugle”

20-0309 Monday “Daily Bugle”

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Monday, 9 March 2020

[No items of interest today]
  1. Items Scheduled for Future Federal Register Edition (No New postings) 
  2. Commerce/BIS: Court Ordered Injunction Pertaining to Revisions to the USML Categories I, II, and III
  3. Commerce/Census: “AES Changes Impacted by Export Control Reform Implementation Rule”
  4. State/DDTC: Court Ordered Injunction Pertaining to Revisions to the USML Categories I, II, and III
  5. Treasury/OFAC Issues Iran-Related FAQ Concerning COVID-19
  6. EU Commission Corrects Dual-Use Regulation
  1. NYT: “Dozens of Swiss Companies Keen on Export Channel to Iran”s
  2. Sipri: “U.S. and France Dramatically Increase Major Arms Exports; Saudi Arabia Largest Arms Importers
  3. Telegraph: “Truckers Face Paperwork Mountain After Britain Opts Against Fast-Track Security Checks Agreement with EU”s
  4. WorldECR: “Italy Shifts Responsibility for Export Controls and Dual-Use Technologies to Foreign Ministry”s
  1. J.E. Bartlett: The ITAR Cats I-II-III Guns & Ammo Amendments Scheduled to Take Effect Today 9 March – Get Your Amended BITAR Now!
  2. Reeves & Dola: “Federal Court Issues Partial Injunction in Case Against New Export Rules”
  1. Monday List of Ex/Im Job Openings: 74 Jobs Available – 4 New Job Openings This Week
  2. Chris Skinner Moves to Williams Mullen
  1. FD Associates Presents “The ITAR, The EAR and the transition of USML I, II and III to the EAR” Seminar, 24 March in Tysons Corner, VA
  2. FCC Academy: U.S. Export Controls: ITAR, EAR, and FMS on 7-9 April in Amsterdam
  1. Bartlett’s Unfamiliar Quotations 
  2. Are Your Copies of Regulations Up to Date? Find the Latest Amendments Here.
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EXIMITEMS FROM TODAY’S FEDERAL REGISTER

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OGSOTHER GOVERNMENT SOURCES

OGS_a1
1.
Items Scheduled for Future Federal Register Editions
(Source: Federal Register)   
 
* Justice/ATF; NOTICES; Agency Information Collection Activities; Proposals, Submissions, and Approvals: Application for Registration of Firearms Acquired by Certain Governmental Entities [Pub. Date: 10 Mar 2020]
 
* Justice/ATF; NOTICES; Agency Information Collection Activities; Proposals, Submissions, and Approvals: Notice of Firearms Manufactured or Imported [Pub. Date: 10 Mar 2020]
 
* Justice/ATF; NOTICES; Agency Information Collection Activities; Proposals, Submissions, and Approvals: Records of Acquisition and Disposition, Collectors of Firearms [Pub. Date: 10 Mar 2020]
 
* Treasury/OFAC; RULES; Removal of Terrorism Sanctions Regulations [Pub. Date: 10 Mar 2020]

 
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OGS_a2
2
. Commerce/BIS: Court Orders Injunction Pertaining to Revisions to the U.S. Munitions List Categories I, II, and III

(Source: Commerce/BIS, 6 Mar 2020)
 
On March 6, 2020, the Honorable Richard A. Jones, District Judge of the U.S. District Court for the Western District of Washington issued an order enjoining the U.S. Department of State from implementing or enforcing the regulation entitled International Traffic In Arms Regulations: U.S. Munitions List Categories I, II, and III, 85 Fed. Reg. 3819 (Jan. 23, 2020) “insofar as it alters the status quo restrictions on technical data and software directly related to the production of firearms or firearm parts using a 3D-printer or similar equipment.” (Case No. 2:20-cv-00111- RAJ) As a result, any request for licenses of items that would otherwise fall under §§ 732.2(b) and 734.7(c) of the U.S. Department of Commerce regulation entitled Control of Firearms, Guns, Ammunition and Related Articles the President Determines No Longer Warrant Control Under the United States Munitions List (USML), 85 Fed. Reg. 4136 (Jan. 23, 2020) should instead be directed to the U.S. Department of State.

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OGS_a3
3
. Commerce/Census: “AES Changes Impacted by Export Control Reform Implementation Rule”

(Source: Commerce/Census, 6 Mar 2020)
 
On Thursday, January 23, 2020, the Department of Commerce, Bureau of Industry and Security published a final rule that will become effective March 9, 2020. As a result of this rule, the following changes will be made to the Automated Export System (AES) in order for exporters and authorized agents to successfully report electronic export information in the AES.
 
The Addition of thirteen “0x5zz” and four “600-series” Export Control Classification Numbers (ECCN)
 
ECCNs 0A501, 0A502, 0A503, 0A504, 0A505, 0B501, 0B505, 0D501, 0D505, 0E501, 0E502, 0E504, 0E505, 0A602, 0B602, 0D602, and 0E602 will be added to the AES ECCN reference table. See the following instructions to determine which new ECCNs are eligible for certain license types. By using any of the License Exceptions or “No License Required” (NLR), you are certifying that the terms, provisions, and conditions described in the EAR have been met.
 
(1) C30 (BIS license)1, C40 (TMP)1 -“0x5zz” ECCNs and 0A602, 0B602, 0D602, and 0E602 are eligible to the extent permitted under part 740 of the EAR.1 For additional filing requirements, refer to § 758.1(g)(4) of the EAR which includes two separate requirements under paragraphs (g)(4)(i) and (ii) of this section that are used to better identify exports of certain end item firearms under the EAR.
 
(2) C33 (NLR) – The following ECCNs are eligible if exported only to Canada: 0A602, 0B602, 0D602, and 0E602. Some of these “600 series” items were previously authorized under an International Traffic in Arms Regulations (ITAR) Canadian exemption (SCA).
 
(3) C35 (LVS) – The following ECCNs are eligible: 0A501, 0A502, 0A504, 0A505, 0B501, 0B505, 0A602, and 0B602 to the extent permitted under part 740 of the EAR and the respective ECCN entry.
 
(4) C41 (RPL), C42 (GOV), and C59 (STA) -“0x5zz” ECCNs and 0A602, 0B602, 0D602, and 0E602 are eligible to the extent permitted under part 740 of the EAR.
 
(5) C44 (TSU) – The following ECCNs are eligible: 0D501, 0D505, 0E501, 0E502, 0E504, 0E505, 0D602, and 0E602 to the extent permitted under part 740 of the EAR.
 
(6) C45 (BAG) – “0x5zz” ECCNs and 0A602, 0B602, 0D602, and 0E602 are eligible to the extent permitted under part 740 of the EAR. As noted above, exports of certain 0x5zz ECCNs are excluded from filling EEI in AES when authorized under BAG provided the export clearance requirements for firearms and related items are met under 758.11 of the EAR.
 
(7) C60 (DY6) – Reporting an ECCN is not required, but when reported, only the following ECCN is eligible:  When C60 is used, the filer must report DY6 in the License Number field.
If the “0x5zz” and “600 series” ECCNs are reported under any other license type, AES will generate a fatal error (FATAL ERR 666-ECCN MUST BE FROM APPROVED LIST) back to the filer. Please note that under § 758.1 of the EAR, an AES filing is required for exports of items classified under “0x5zz” and “600 series” ECCNs, regardless of the value of the item or destination, except for exports authorized under License Exception BAG, as set forth in § 740.14 of the EAR, of items controlled under ECCNs 0A501.a or .b, shotguns with a barrel length less than 18 inches controlled under ECCN 0A502, or ammunition controlled under ECCN 0A505 except for .c.
 
Please review, once they are posted online, the FAQ’s to be provided by the Bureau of Industry and Security for more information on filing the new ECCNs in AES. The FAQ’s for this rule will soon be available at www.bis.doc.gov.
 
Items subject to the EAR, including “600 series” ECCNs that are licensed by the State Department under the International Traffic in Arms Regulations (ITAR)
 
Under a delegation of authority, the State Department may license an item subject to the EAR on an ITAR license pursuant to new section 120.5(b) of the ITAR. If this occurs, the AES filer must report the ECCN (including “600 series” ECCNs) or the EAR99 designation in the ECCN field in AES, even if the license type is S05 (DSP-5). All other fields associated with license type S05 are required, such as registration number, significant military equipment indicator, DDTC eligible party certification indicator, USML category code, DDTC unit of measure and DDTC quantity.
 
Click here for the complete list of all of the AES License Type codes and reporting instructions for these types.
 

[FN/1] See § 758.10 (Entry clearance requirements for temporary imports) of the EAR that specifies the temporary import entry clearance requirements for firearms “subject to the EAR” that are on the United States Munitions Import List (USMIL, 27 CFR 447.21), except for firearms “subject to the EAR” that are temporarily brought into the United States by nonimmigrant aliens under the provisions of Department of Justice regulations at 27 CFR part 478 (See § 740.14(e) of the EAR for information on the export of these firearms “subject to the EAR”). These firearms are controlled in ECCN 0A501.a or .b or shotguns with a barrel length less than 18 inches controlled in ECCN 0A502. Temporary imports of firearms described in § 758.10 must meet the entry clearance requirements specified in paragraph (b) of this section. Items that are temporarily exported under the EAR must have met the export clearance requirements specified in § 758.1 of the EAR. 

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OGS_a4
4. State/DDTC: Court Ordered Injunction Pertaining to Revisions to the U.S. Munitions List Categories I, II, and III

(Source: State/DDTC 7 Mar 2020)
 
On March 6, 2020 a federal district court issued an “Order Granting in Part Plaintiff States’ Motion for Preliminary Injunction.” This court order states that the Department of State is enjoined “from implementing or enforcing the regulation entitled International Traffic In Arms Regulations: U.S. Munitions List Categories I, II, and III, 85 Fed. Reg. 3819 (Jan. 23, 2020) insofar as it alters the status quo restrictions on technical data and software directly related to the production of firearm or firearm parts using a 3D-printer or similar equipment.” The Department of State is complying with the terms of this order and will provide further guidance on the DDTC website, as appropriate.
 
The court order partially enjoins the final rule issued by the Department of State on January 23, 2020 State Rule revising export controls on certain firearms, ammunitions, and related items. The order has the effect of maintaining on the U.S. Munitions List (USML) “technical data and software directly related to the production of firearm and firearm parts using a 3D-printer or similar equipment.” Persons engaging in activities controlled under the International Traffic in Arms Regulations (ITAR) related to such technical data and software must continue to comply with all ITAR requirements. The transfer of jurisdiction over all other items that the Department of State’s final rule removes from the USML and the Department of Commerce’s companion final rule adds to the Commerce Control List (CCL) will take effect on March 9, 2020.  
 
The “State Transition Guidance for Revisions to Categories I, II, and III” Transition Guidance issued on January 23, 2020 remains applicable to all items that are transferring to the Department of Commerce’s jurisdiction pursuant to these final rules. For questions pertaining to items now subject to the Department of Commerce’s controls, please contact the Department of Commerce, Bureau of Industry and Security BIS website.
 
Background
:
 
On January 23, 2020, the Department of State published a final rule in the Federal Register at 85 Fed. Reg. 3819 that amends the International Traffic in Arms Regulations (ITAR) to revise Categories I, II, and III of the USML and remove certain items that no longer warrant control. On the same date, the Department of Commerce published a companion final rule in the Federal Register at 85 Fed. Reg. 4136 that makes conforming changes to the Export Administration Regulations (EAR) to control the items removed from the USML. Both final rules set an effective date of March 9, 2020.
 

On January 23, 2020, several U.S. States filed a lawsuit in the United States District Court for the Western District of Washington (Civil Action No. 2:20-cv-00111) seeking a court order to prohibit the Departments of State and Commerce from implementing or enforcing the final rules. Plaintiff States subsequently filed a motion for a preliminary injunction. As described above, on March 6, 2020, the District Court issued an order partially enjoining the Department of State’s final rule.

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OGS_a55. Treasury/OFAC Issues the Iran-Related FAQ Concerning COVID-19

(Source: OFAC, 6 Mar 2020) 
 

Today, the Department of the Treasury’s Office of Foreign Assets Control (OFAC) is issuing a new Frequently Asked Question related to the manner in which humanitarian goods or assistance can be provided to the Iranian people in response to the COVID-19 outbreak in Iran, consistent with the Iran-related sanctions administered by OFAC.
 
Guidance Related to Humanitarian Assistance with Regard to the Coronavirus Disease 2019 (COVID-19) outbreak in Iran
.
 
828. I want to help with the humanitarian response to the Coronavirus Disease 2019 (COVID-19) outbreak in Iran. What can I do to help while remaining compliant with U.S. sanctions?
 
There are a number of ways to provide humanitarian goods or assistance to the Iranian people in response to the COVID-19 outbreak in Iran, consistent with U.S. sanctions.
 
The making of humanitarian donations to recipients in Iran from the United States or by U.S. persons, including the donation of medicine intended to relieve human suffering, are generally exempt from U.S. sanctions on Iran under section 560.210(b) of the Iranian Transactions and Sanctions Regulations, 31 CFR Part 560 (ITSR), provided that such donations are not being made to the Government of Iran or other persons blocked pursuant to section 560.211 of the ITSR, or to any individual or entity listed on OFAC’s list of Specially Designated Nationals and Blocked Persons (SDN List).
 
In addition, the United States maintains broad exceptions and authorizations that allow for the commercial sale and export of humanitarian goods, including medicine and medical devices, to Iran or the Government of Iran from the United States or by U.S. persons or U.S.-owned or -controlled foreign entities, subject to certain conditions. U.S. sanctions laws provide similar allowances for sales of humanitarian goods, including medicine and medical devices, to Iran by non-U.S. persons. These exemptions, exceptions, and authorizations generally do not apply to transactions involving persons on OFAC’s SDN List that have been designated in connection with Iran’s support for international terrorism or proliferation of weapons of mass destruction, including the Islamic Revolutionary Guard Corps (IRGC). For humanitarian transactions involving the Central Bank of Iran, which was designated as a Specially Designated Global Terrorist pursuant to Executive Order 13224 as amended, please see General License 8 issued pursuant to the Global Terrorism Sanctions Regulations (GTSR) and the ITSR, as well as OFAC Frequently Asked Questions (FAQs) 821, 822, and 823.
 
Furthermore, nongovernmental organizations (NGOs) are authorized under General License E to export or re-export services to or related to Iran in support of certain not-for-profit activities designed to directly benefit the Iranian people, including the provision of donated health-related services and distribution of donated articles such as medicine intended to be used to relieve human suffering, in Iran.
 
Persons interested in providing humanitarian assistance to Iran related to the COVID-19 outbreak should review sections 560.210(b), 560.530, 560.532, and 560.533 and General License E of the ITSR and General License 8 issued pursuant to the GTSR and the ITSR, the guidance provided in FAQs 549, 637,
821, 822, 823 and 826
and the guidance provided in “Guidance on the Sale of Food, Agricultural Commodities, Medicine, and Medical Devices by Non-U.S. Persons to Iran” and “Clarifying Guidance on Humanitarian Assistance and Related Exports to the Iranian People.” Other types of humanitarian activities or exports by U.S. persons may be authorized pursuant to a specific license from OFAC.


 

Please note any transfers of funds in support of activities authorized by General License E must be made by the NGOs themselves, and not directly by U.S. individuals, in accordance with the conditions of General License E.  

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OGS_a66
. EU Commission Amends Dual-Use Regulation
 

(Source: Official Journal of the European Union, 9 Mar 2020) [Excerpts]
 

The European Commission published a Corrigendum to Commission Delegated Regulation (EU) 2019/2199 of 17 October 2019 amending Council Regulation (EC) No 428/2009 setting up a Community regime for the control of exports, transfer, brokering and transit of dual-use items
 
On page 163, points 6A002.b to 6A002.f are replaced with the following:
 
“(b). “Monospectral imaging sensors” and “multispectral imaging sensors”, designed for remote sensing applications and having any of the following: 


 
 
 
 

(1) An Instantaneous-Field-Of-View (IFOV) of less than 200 μrad (microradians); or
(2) Specified for operation in the wavelength range exceeding 400 nm but not exceeding 30 000 nm and having all the following; 


 
 
 

(a) Providing output imaging data in digital format; and
(b)Having any of the following characteristics:
(1) “Space-qualified”; or
(2) Designed for airborne operation, using other than silicon detectors, and having an IFOV of less than 2,5 mrad (milliradians);
 
 
Note: 6A002.b.1. does not control “monospectral imaging sensors” with a peak response in the wavelength range exceeding 300 nm but not exceeding 900 nm and only incorporating any of the following non-“space-qualified” detectors or non-“space-qualified” “focal plane arrays” 
(a) Charge Coupled Devices (CCD) not designed or modified to achieve ‘charge multiplication’; or
(b) Complementary Metal Oxide Semiconductor (CMOS) devices not designed or modified to achieve ‘charge
multiplication’.
(c) ‘Direct view’ imaging equipment incorporating any of the following:
(1) Image intensifier tubes specified in 6A002.a.2.a. or 6A002.a.2.b.;
(2)”Focal plane arrays” specified in 6A002.a.3.; or
(3) Solid state detectors specified in 6A002.a.1.;
 
Technical Note:
‘Direct view’ refers to imaging equipment that presents a visual image to a human observer without converting the image into an

electronic signal for television display, and that cannot record or store the image photographically, electronically or by any other means. 

 
Note: 6A002.c. does not control equipment as follows, when incorporating other than GaAs or GaInAs photocathodes:
(a) Industrial or civilian intrusion alarm, traffic or industrial movement control or counting systems;
(b) Medical equipment;
(c) Industrial equipment used for inspection, sorting or analysis of the properties of materials;
(d) Flame detectors for industrial furnaces;
(e) Equipment specially designed for laboratory use.  

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NWSNEWS

NWS_a17. NYT: “Dozens of Swiss Companies Keen on Export Channel to Iran” 

(Source:
The New York Times, 7 Mar 2020) [Excerpts]

A Swiss channel to export food and medicine to Iran’s struggling population without running foul of U.S. sanctions is off to a good start, with dozens of companies keen to take part, a senior government official said on Saturday. …
 
The arrangement has been in the works since U.S. President Donald Trump reimposed sanctions in 2018 after walking away from a deal over Iran’s nuclear program, well before the coronavirus outbreak which has hit the Islamic Republic badly. …
 
Food, medicine and other humanitarian supplies are exempt from U.S. sanctions but the measures targeting anything from oil sales to shipping to finance have deterred many foreign banks from doing business with Iran – including humanitarian deals. …

NWS_a28. Sipri: “USA and France Dramatically Increase Major Arms Exports; Saudi Arabia Largest Arms Importer
 

International transfers of major arms during the five-year period 2015-19 increased by 5.5 per cent compared with 2010-14. According to new data from the Stockholm International Peace Research Institute (SIPRI), the largest exporters of arms during the past five years were the United States, Russia, France, Germany and China. The new data shows that the flow of arms to the Middle East has increased, with Saudi Arabia clearly being the world’s largest importer.
 
Significant increase in arms exports from the United States and France
Between 2010-14 and 2015-19, exports of major arms from the USA grew by 23 per cent, raising its share of total global arms exports to 36 per cent. In 2015-19 total US arms exports were 76 per cent higher than those of the second-largest arms exporter in the world, Russia. Major arms transferred from the USA went to a total of 96 countries.
 
‘Half of US arms exports in the past five years went to the Middle East, and half of those went to Saudi Arabia,’ says Pieter D. Wezeman, Senior Researcher at SIPRI. ‘At the same time, demand for the USA’s advanced military aircraft increased, particularly in Europe, Australia, Japan and Taiwan.’
 
French arms exports reached their highest level for any five-year period since 1990 and accounted for 7.9 per cent of total global arms exports in 2015-19, a 72 per cent increase on 2010-14. ‘The French arms industry has benefited from the demand for arms in Egypt, Qatar and India,’ says Diego Lopes Da Silva, SIPRI Researcher.
 
Notable decrease in Russian arms exports
Major arms exports by Russia decreased by 18 per cent between 2010-14 and 2015-19. ‘Russia has lost traction in India-the main long-term recipient of Russian major arms-which has led to a sharp reduction in arms exports,’ says Alexandra Kuimova, SIPRI Researcher. ‘This decrease was not offset by the increase in Russian arms exports to Egypt and Iraq in 2015-19.’
 
Arms flows to countries in conflict
Arms imports by countries in the Middle East increased by 61 per cent between 2010-14 and 2015-19, and accounted for 35 per cent of total global arms imports over the past five years. Saudi Arabia was the world’s largest arms importer in 2015-19. Its imports of major arms increased by 130 per cent compared with the previous five-year period and it accounted for 12 per cent of global arms imports in 2015-19. Despite the wide-ranging concerns in the USA and the United Kingdom about Saudi Arabia’s military intervention in Yemen, both the USA and the UK continued to export arms to Saudi Arabia in 2015-19. A total of 73 per cent of Saudi Arabia’s arms imports came from the USA and 13 per cent from the UK.
 
India was the second-largest arms importer in the world over the past five years, with its neighbour Pakistan ranking 11th. ‘As in previous years, in 2019 India and Pakistan-which are nuclear-armed states-attacked each other using an array of imported major arms,’ says Siemon T. Wezeman, Senior Researcher at SIPRI. ‘Many of the world’s largest arms exporters have supplied these two states for decades, often exporting arms to both sides.’
 
The United Arab Emirates (UAE) has been militarily involved in Libya as well as Yemen over the past five years and was the eighth-largest arms importer in the world in 2015-19. Two-thirds of its arms imports came from the USA during this period. In 2019, when foreign military involvement in Libya was condemned by the United Nations Security Council, the UAE had major arms import deals ongoing with Australia, Brazil, Canada, China, France, Russia, South Africa, Spain, Sweden, Turkey, the UK and the USA.
 
In 2015-19 there were again armed clashes between Armenia and Azerbaijan. Both countries are building up their military capability through imports, including missiles capable of attacking targets inside each other’s territory. Russia accounted for almost all of Armenia’s arms imports over the past five years. A total of 60 per cent of Azerbaijan’s arms imports came from Israel and 31 per cent from Russia.
 
In 2015-19 Turkish arms imports were 48 per cent lower than in the previous five-year period, even though its military was fighting Kurdish rebels and was involved in the conflicts in Libya and Syria. This decrease in imports can be explained by delays in deliveries of some major arms, the cancellation of a large deal with the USA for combat aircraft, and developments in the capability of the Turkish arms industry.
 
Other notable developments
(1) Germany’s arms exports were 17 per cent higher in 2015-19 than in 2010-14.
(2) China was the fifth-largest arms exporter in 2015-19 and significantly increased the number of recipients of its major arms: from 40 in 2010-14 to 53 in 2015-19.
(3)South Korea’s arms exports rose by 143 per cent between 2010-14 and 2015-19 and it entered the list of the top 10 largest exporters for the first time.
(4) Israeli arms exports increased by 77 per cent between 2010-14 and 2015-19 to their highest-ever level.
(5) West and Central European states had outstanding orders at the end of 2019 for imports of 380 new combat aircraft from the USA.
(6) Egypt’s arms imports tripled between 2010-14 and 2015-19, making it the world’s third-largest arms importer.
(7)Brazil’s arms imports in 2015-19 were the highest in South America, accounting for 31 per cent of the subregion’s arms imports, despite a 37 per cent decrease compared with 2010-14.

(8) South Africa, the largest arms importer in sub-Saharan Africa in 2005-2009, imported almost no major arms in 2015-19. 

NWS_a39. Telegraph: “Truckers Face Paperwork Mountain After Britain Opts Against Fast-Track Security Checks Agreement with EU”

(Source:
The Telegraph
, 8 Mar 2020) [Excerpts]
 
British negotiators rejected participation in the ‘safety and security zone’ despite accepting it would significantly increase border delays.
 
The haulage, shipping and freight industries are up in arms against the Government after ministers ignored industry requests to seek vital security waivers from the EU needed to smooth cross-channel freight after Brexit, The Telegraph can reveal.
 
The Government’s no-compromise approach emerged after the first round of trade talks in Brussels last week, where British negotiators rejected participation in the EU’s “safety and security zone” despite accepting it would significantly increase border delays.
 
The move has caused consternation among trade groups – including hauliers, port operators and shipping companies-who were informed of the decision the last week by the HMRC’s Border Delivery Group. …

NWS_a410. WorldECR: “Italy Shifts Responsibility for Export Controls and Dual-Use Technologies to Foreign Ministry”

(Source:
WorldEcr, 6 Mar 2020)
Italy is shifting responsibility for export control policies and issuing licences for dual-use technologies from its Ministry of Economic Development to the Munitions Licensing Unit (‘UAMA’) of the Ministry of Foreign Affairs.
 
Since the beginning of this year, UAMA has ‘issued the authorizations required for the export, transfer, brokering, technical assistance and transit of dual-use items, together with the issuance of authorizations for materials subject to the anti-torture regulation and items listed as a result of EU measures,’ the Ministry of Economic Development said.
 
It said that, despite the shift, it will still accept requests for authorization for exports of dual-use materials and technologies until 30 June 2020. ‘Following this date, it has not yet been clearly indicated whether the two authorization routes will coexist in parallel, or whether it will all be conveyed to the Ministry of Foreign Affairs,’ the Ministry said, explaining that the change was being made in response to a legislative decree.

 

COMCOMMENTARY

COM_a111. 
J.E. Bartlett: 
The ITAR Cats I-II-III Guns & Ammo Amendments Scheduled to Take Effect Today – Get Your Amended BITAR Now!

(Source: Author)
 
* Author: James E. Bartlett III, Esq., Full Circle Trade Law, PLLC, , 1-202-802-0646
 
Today, March 9th, the 85 Fed. Reg. 3819 (23 Jan 2020) amendments of the International Traffic in Arms Regulations (ITAR), 22 CFR Parts 120-130, went into effect as the last major Export Control Reform transfer of controlled articles from the U.S. Munitions List in the State Department’s ITAR to the Commerce Control List in the Commerce Department’s Export Administration Regulations (EAR).  (The federal court injunction described in Item #4 partially enjoins the final rule, but other portions of the amendment take effect today.) We are pleased to have released a new edition of Bartlett’s Annotated International Traffic in Arms Regulations (The BITAR) today, which includes the amendments published in 85 FR 3819 (23 Jan 2020), the final rule effective Today, March 9, 2020, which amended § 121.1, USML Categories I, II, and III, and numerous related sections affected by the transfer of many articles from USML Categories I, II, and III to the CCL in the EAR.  Also indicated in this edition are the amendments published in 84 FR 70887 (26 Dec 2019), the interim final rule amending the definition of “export” and related terms in sections 120.17, -.18, -.19, -.50, -.51, -.52, -.53, -.54, and -.55, which will not be effective until March 25, 2020, so those amendments are indicated in this edition only as footnotes to the amended sections.  We will publish another revised edition on Wednesday, March 25th, which will include the full text of those amendments. 
 

The serious ITAR practitioner should have a subscription to the BITAR to be certain of having in hand the entire ITAR updated with all amendments.  In addition to the ITAR text, the BITAR provides a Word document that you can store on your laptop for quick review or print for binding in your 3-ring notebook with nearly 400 pages of text, annotations, appendixes, and a huge index.  Over 800 footnotes provide amendment dates, section histories, “[sic]” citations to errors in the official text, practice tips, and excerpts of the Supplemental Information advisories published in the Federal Register.  The Appendixes include a list of all ITAR amendments since 2007, DDTC Guidance, a list of all Consent Agreements since 1978, a list of Acronyms and Forms, and a HUGE 33-page Index.  Subscribers receive a revised edition of the BITAR every time the ITAR is amended for a full year for the subscription price of $200.  Discounts are available for over 5 subscriptions to the same company, and discounted site licenses are available for companies with over 20 subscribers.  Government employees with “.gov” or “.mil” addresses and employees of universities with “.edu” addresses are eligible for a 50% discount.  BITAR subscribers are also entitled to a discount on subscriptions to Bartlett’s Annotated Foreign Trade Regulations (The BAFTR), the annotated version of the U.S. Foreign Trade Regulations, 12 CFR Part 30.  Subscribe HERE today. 

COM_a212. Reeves & Dola: “Federal Court Issues Partial Injunction in Case Against New Export Rules” 

(Source:
Reeves & Dola Alert,
6 Mar 2020) [Excerpts]

* Principal Author: Johanna Reeves, Esq., 1-202-715-9941, Reeves & Dola
 
Today (Friday, 6 March) the U.S. District Court at the Western District of Washington (Seattle) issued a partial injunction to prevent portions of the new export rules governing firearms and ammunition from taking effect on Monday (9 March). [The case is State of Washington, et al., v. U.S. Department of State, et al., Case No. 2:20-cv-00111-RAJ.] The preliminary injunction prohibits the U.S. Departments of State and Commerce from implementing or enforcing any portions of the new export rules that have any effect on technical data or software directly related to the production of firearms or firearm parts using a 3D-printer or similar equipment. Consequently, such technology or software will remain on the United States Munitions List (USML) and subject to the International Traffic in Arms Regulations (ITAR). The court handed down its ruling late in the afternoon Pacific Time, so the Departments have not yet issued notices on this injunction. The preliminary injunction will remain in place pending trial or further action of the Court.
 
All other portions of the Final Rules will become effective March 9, 2020. This means that most commercially available firearms and ammunition, and technology directly related thereto, will move from the export controls of the ITAR and over to the Department of Commerce’s Export Administration Regulations (EAR) on Monday, March 9, 2020. While existing ITAR authorizations remain valid for a time, all new transactions must be conducted under the new export control regulations come Monday.
 
As companies begin to implement the transition, and work through the reclassification of their goods and services, there are bound to be instances where past compliance issues are identified. It is important to remember that the transition of items from the ITAR to the EAR does not absolve past violations, and any disclosures should be filed with the agency having jurisdiction at the time the violation occurred.
 
There is sure to be a learning curve for industry as it begins to operate under the new export control regime; there was for every other USML category that has gone through the export control reform initiative. To aid in the process, both the Department of State and Department of Commerce have posted to their respective websites guidance for industry, including license transition guidance and helpful decision tree tools. The best place to start is to read the new rules themselves.
 
“Expect the best, plan for the worst, and prepare to be surprised.” ~ Denis Waitley.

COM
MSEX/IM MOVERS & SHAKERS

COM_a413. Monday List of Ex/Im Job Openings: 74 Jobs Available – 4 New Job Openings This Week

(Source: Jobs Editor)  
 
New or amended listing this week:
 

* Curtiss-Wright
; Ottawa, Canada; Sr. Manager, Trade Compliance; Contact Details: Kirsty Harris, kirsty.harris@curtisswright.com
 
* Leonardo DRS Inc.
; Dallas, TX; Senior Manager Trade Compliance; Requisition ID: 98893
 
* Newport News Shipbuilding
, Viriginia, CA; International Trade Compliance Analyst 3; Contact Details: Parnetha.D.Callahan@hii-nns.com; Requisition ID: 33213BR
 
* Surefire LLC
; Fountain Valley, CA; Trade Compliance Specialist; Contact Details: sgreenberg@surefire.com

TEEX/IM TRAINING EVENTS & CONFERENCES

TE_a115. 
FD Associates Presents “The ITAR, The EAR and the transition of USML I, II and III to the EAR” Seminar, 
24 March
 in Tysons Corner, VA
 
* What:  Seminar, “The ITAR, The EAR and the transition of USML I, II and III to the EAR 
Agenda
* When:  Tuesday 24 Mar, 2020
* Where:  
The Tower Club
, 8000 Towers Crescent Dr Suite 1700, Vienna, VA 22182
* Sponsor:  
FD Associates
* Presenters: Jenny Hahn, President, FD Associates. Presenter will also be available for private counseling session after the workshop
* Register 
HERE, call 1-703-847-5801, or email info@fdassociates.net.

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

TE_a216. FCC Academy: U.S. Export Controls: ITAR, EAR, and FMS

U.S. Export Controls: ITAR

Tuesday, 7 April 2020, Amsterdam
More Info

U.S. Export Controls: EAR

Wednesday, 8 April 2020, Amsterdam
More Info

The ABC of Foreign Military Sales (FMS)

Tuesday, 9 April 2020, Amsterdam

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.

15 Nov 2017, 82 FR 52823: miscellaneous corrections include correcting references, an address and a misspelling

 

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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