;

20-0406 Monday ” Daily Bugle “

20-0406 Monday “Daily Bugle”

 this copy of the Daily Bugle to others or share 
this subscription link
Monday, 6 April 2020

  1. Commerce/BIS Requests Comments on Five-Year Records Retention Requirement for Export Transactions and Boycott Actions  
  2. Justice/ATF Requests Comments on Application for Alternate Means of Identification of Firearms 
  1. Items Scheduled for Future Federal Register Edition  
  2. Commerce/BIS: (No new postings.)
  3. DHS/FDA: “Information for Filing Personal Protective Equipment and Medical Devices During COVID-19”
  4. DHS/CBP Publishes ITAR Exemption Update
  5. State/DDTC Revises Two Previously Published FAQs Regarding U.S. Persons Abroad
  6. Treasury/OFAC: “Issuance of Venezuela-Related General License 13E”
  7. UK OFSI Updates Guidance “Who is Subject to Financial Sanctions in the UK”
  8. Japan METI Publishes Deregulatory Measures in Import and Export Procedures as a Response to COVID-19
  1. Export Compliance Daily: “Canada Is Ready for Entry Into Force of USMCA; Mexico Says Not Yet”
  2. STR: “China Tightens Export Requirements for Medical Products”
  3. WORLDecr: “OFAC adds to Blacklist for Work with Iran Military and Aiding Iraqi Militias”
  1. Arent Fox: “Reference Guide: Worldwide Export Controls on Face Masks and Other Medical Personal Protective Equipment”
  2. Baker McKenzie Blog: “New Export Controls Regulations in South Africa in Light of Covid-19”
  3. Husch Blackwell: “COVID-19 Impacts on Demurrage and Detention”
  4. Husch Blackwell: “Opportunity to Request Administrative Review”
  5. Trump and Trade: “USTR Releases 2020 National Trade Estimate Report on Foreign Trade Barriers”
  1. Monday List of Ex/Im Job Openings: 132 Jobs Available – 10 New Job Openings This Week
  1. ECS Presents 8-Part Export Controls Webinar Series 8 Apr to 27 May
  2. FCC Academy: U.S Export Controls: ITAR, EAR, and FMS
  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
  4. Submit Your Job Opening and View All Job Openings
  5. Submit Your Event and View All Approaching Events

Are You Keeping Up to Date with the Latest Regulations?

Bartlett’s Annotated ITAR and Bartlett’s Annotated FTR are Word documents to down-

load to your laptop to keep you updated on the latest amendments, and contain over 800 footnotes of section history, key cases, practice tips & tricks, and extensive Tables of Contents.
The ITAR amendments to the ITAR that took effect on 9 March and 25 March are included in the current edition of the BITAR.  Subscribers receive updated editions every time the regulations are amended (usually within 24 hours) so you will always have the current versions of the regulations. Subscribe to the BITAR now to guarantee you have an up-to-date ITAR!   

Combo
BITAR + BAFTR
Price: $300
Offer: $275

 
Buy Here

BITAR

Price: $200

BAFTR

  Price: $100

EXIMITEMS FROM TODAY’S FEDERAL REGISTER

EXIM_a11
.
Commerce/BIS Requests Comments on Five-Year Records Retention Requirement for Export Transactions and Boycott Actions

(Source:
Federal Register, 6 Apr 2020) [Excerpts]

 
85 FR 19134: Proposed Information Collection; Comment Request; Five-Year Records Retention Requirement for Export Transactions and Boycott Actions
 
* AGENCY: Bureau of Industry and Security, Department of Commerce.
* ACTION: Notice.
* SUMMARY: The Department of Commerce, as part of its continuing effort to reduce paperwork and respondent burden, invites the general public and other Federal agencies to take this opportunity to comment on proposed and/or continuing information collections, as required by the Paperwork Reduction Act of 1995.
* DATES: To ensure consideration, written comments must be submitted on or before June 5, 2020.
* ABSTRACT: This collection is necessary under Sections 760 and 762.6(a) of the Export Administration Regulations (EAR). The five-year retention requirement corresponds with the statute of limitations for violations and is necessary to preserve potential evidence for investigations. All parties involved in the export, reexport, transshipment or diversion of items subject to the EAR and the U.S. party involved in the export transaction involving a reportable boycott request are required to maintain records of these activities for a period of five years. The frequency depends upon how often each entity is involved in an export
transaction or one involving a reportable boycott request.
Method of Collection: Submitted on paper or electronically.
Data:
– OMB Control Number: 0694-0096.
– Form Number(s): N/A.
– Type of Review: Regular submission.
– Affected Public: Business or other for-profit organizations.
– Estimated Number of Respondents: 100,000.
– Estimated Time per Response: 1 second to 1 minute.
– Estimated Total Annual Burden Hours: 258.
– Estimated Total Annual Cost to Public: $0.
– Respondent’s Obligation: Voluntary.
– Legal Authority: Export Control Reform Act 4812(b) and
4814(b)(1)(B).

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

EXIM_a22
. Justice/ATF Requests Comments on Application for Alternate Means of Identification of Firearms

(Source: Federal Register, 6 Apr 2020) [Excerpts]


 
85 FR 19160: Agency Information Collection Activities; Proposed eCollection eComments Requested; Application for Alternate Means of Identification of Firearm(s) (Marking Variance)-ATF Form 3311.4
 
* AGENCY: Bureau of Alcohol, Tobacco, Firearms and Explosives, Department of Justice.
* ACTION: 30-Day notice.
* SUMMARY: The Department of Justice (DOJ), Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), will submit the following information collection request to the Office of Management and Budget (OMB) for review and approval in accordance with the Paperwork Reduction Act of 1995.
* DATES: Comments are encouraged and will be accepted for an additional 30 days until May 6, 2020.
* ABSTRACT: The Application for Alternate Means of Identification of Firearm(s) (Marking Variance)–ATF Form 3311.4 provides a uniform mean for industry members with a valid Federal importer or manufacturer license, to request firearms marking variance.
An estimate of the total number of respondents and the amount
of time estimated for an average respondent to respond: An estimated 2,064 respondents will utilize the form annually, and it will take each respondent approximately 30 minutes to complete their responses.
An estimate of the total public burden (in hours) associated
with the collection: The estimated annual public burden associated with this collection is 1,032 hours, which is equal to 2,064 (# of respondents) * 1 (# of responses per respondent) * .5 (30 minutes).

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

OGSOTHER GOVERNMENT SOURCES

OGS_a13.
Items Scheduled for Future Federal Register Editions 
(Source: Federal Register)
(No items of interest today.)

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

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

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

OGS_a3
5
.
DHS/FDA: “Information for Filing Personal Protective Equipment and Medical Devices During COVID-19”

(Source: DHS/FDA)
 
The U.S. Food and Drug Administration is providing an update to CSMS #42168200 for instructions to the import community regarding the submission of entry information for personal protective equipment and certain other devices. Following the instructions below will help facilitate the import process for all; especially for products related to the Coronavirus Disease-2019 (COVID-19) public health emergency. It is in the best interest of the U.S. to facilitate and expedite the importation of products into the U.S. market that address immediate, urgent public health needs.
Non-FDA-regulated general purpose personal protective equipment (masks, respirators, gloves, etc.)
Personal protective equipment for general purpose or industrial use (that is, products that are not intended for use to prevent disease or illness) is not regulated by FDA.
For these types of products, entry information should not be transmitted to FDA. At the time of entry for these products, Importers should transmit entry information to US Customs and Border Protection (CBP) using an appropriate HTS code with no FD Flag; or using an appropriate HTS code with an FD1 flag and do a ‘disclaim’ for FDA.
Products authorized for emergency use pursuant to an Emergency Use Authorization (EUA)
When importing such products, entry information should be submitted to FDA; however reduced FDA information is required for review.
At the time of entry, Importers should transmit an Intended Use Code of 940.000: Compassionate Use/Emergency Use Device, and an appropriate FDA product code. Under this Intended Use Code, the Affirmations of Compliance for medical devices (such as the Registration, Listing, and Premarket numbers) are optional in ACE.
Below is a list of products and the appropriate product codes that are currently authorized by an EUA:
Diagnostic tests: 83QKP, 83QKO, 83QJR
Masks/Respirators: 80NZJ
Ventilators: See ventilator EUA for product codes
 
A full list of Emergency Use Authorizations currently in place for the COVID-19 emergency is also available on FDA’s website. Please check this site regularly for current information on products authorized by an EUA.
 
Products regulated by FDA as a device, not authorized by an EUA, but where an enforcement discretion policy has been published in guidance.
When importing such devices, entry information should be submitted to FDA.
At the time of entry, Importers should transmit Intended Use Code 081.006: Enforcement discretion per final guidance, and an appropriate FDA product code. Under this Intended Use Code, the Affirmations of Compliance for medical devices (such as the Registration, Listing, and Premarket numbers) are optional in ACE.
Below is a listing of guidance documents that have been issued for specific products related to COVID-19, which reference applicable product codes and policy for those products:
A full list of all guidance documents related to COVID-19 is also available on FDA’s website. Please check this site regularly for current information on these and other product areas. This message will be updated to specifically include additional guidance as it becomes available.
All questions regarding these instructions, product code assistance for these products, or to resolve entry issues can be submitted to FDA at:
Step-by-Step instructions on how to register and list can be found on our website.
For additional assistance with completing initial registration, firms should contact the CDRH Registration and Listing Helpdesk at reglist@cdrh.fda.gov.
For assistance with paying the annual registration user fee, firms can reach out to the User Fee Helpdesk at userfees@fda.gov.
For further information regarding entry submission requirements in the Automated Commercial Environment (ACE) system, see the FDA Supplemental Guide for ACE.

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

OGS_a4
6
.
 DHS/CBP: “Publishes ITAR Exemption Udate”

(Source:
DHS/CBP)

 
In response to the attached Federal Register Notice (FRN)/ Vol 85, No. 15/ Thursday, January 23, 2020/ Rules and Regulations, the following exemptions have been removed from the International Traffic in Arms Regulations (ITAR) and removed from the Automated Export System Trade Interface Requirements (AESTIR) Appendix O:
 
22 CFR 123.17 (a) (1) Components and parts for Category I (a) firearms not exceeding $100 wholesale.
 
22 CFR 123.17 (a) (2) Components and parts for Category I firearms not exceeding $500 wholesale to Canada.
 
22 CFR 123.17 (a) (3) Components and parts for Category I firearms not exceeding $500 wholesale to Canadian Government.
 
22 CFR 123.17 (b) Non-automatic Category I (a) firearms manufactured in or before 1898 or replica.
 
22 CFR 123.17 (c) Temporary export of no more than three non-automatic Category I (a) firearms and no more than 1,000 cartridges.
 
22 CFR 123.17 (d) Firearms for foreign persons brought in under 27 CFR 178.115 (d).
 
22 CFR 123.17 (e) Not more than 1,000 cartridges of ammunition for non-automatic firearms for personal use.
 
22 CFR 123.18 (a) (1) Non-automatic firearms for servicemen’s clubs for members of U.S. Armed Forces.
 
22 CFR 123.18 (a) (2) Non-automatic firearms for personal use by member of U.S. Armed Forces or civilian employee of Department of Defense.
 
22 CFR 123.18 (a) (3) Non-automatic firearms for personal use by U.S. Government employees.
 
22 CFR 123.18 (b) Not more than 1,000 cartridges of ammunition for personal use by U.S. Government employees.
 

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

OGS_a57.
State/DDTC Revises Two Previously Published FAQs Regarding U.S. Persons Abroad  

(Source: State/DDTC, 6 Apr 2020)
 
(1) If I request authorization for defense services that describe my current employment, do I need to cease the activities that constitute defense services until I receive authorization from DDTC?
(2) Will DDTC provide a “safe harbor” period for U.S. persons who request authorization for defense services they are currently performing without a license?

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

(Source: Treasury/OFAC, 3 Apr 2020) [Excerpts]
 

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

OGS_a79.
UK OFSI Updates Guidance “Who is Subject to Financial Sanctions in the UK”   

(Source: UK OFSI, 6 Apr 2020) [Excerpts]
 
The list is updated with ‘Latest HM Treasury notice, 06/04/2020, ISIL (Da’esh) and Al-Qaida Organisations (Reg 2020/483)’.
Financial sanctions against the ISIL (Da’esh) and Al-Qaida Organisations has been amended so that Ibrahim Mohamed Khalil (Group ID: 8785) no longer applies to the persons listed in the Annex to this Notice.

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

(Source:
METI,
5 Apr 2020)
 
In response to expected delays and other disruptions in imports and exports as a result of the coronavirus disease 2019 (COVID-19) the Ministry of Economy, Trade and Industry (METI) has summarized trade control related procedural notifications, including some new special treatments. Please be mindful of underlined parts for changes from our previous release on February 14, 2020, including extensions in some special treatments.
 
In addition, METI kindly requests licensing applicants to take advantage of mail or electronic applications as much as possible. Please contact the Trade Control Department or regional offices for further details.
 
Note: Underlined parts represent changes from the previous press release published on February 14, 2020 titled “Relaxation of Import and Export Procedures and other Treatment as Responses to the Novel Coronavirus Epidemic.”
 
1. Imports
 
(1) In cases where expiration of import license is imminent (Foreign Exchange and Foreign Trade Act)
 
Importers are expected to apply for extension of their import license BEFORE IT ACTUALLY EXPIRES in case such license is set to expire due to delays or other disruptions as a result of the coronavirus disease 2019 (COVID-19).
 
Notes:
(1) For applicants having difficulty in obtaining documents demonstrating necessity of license extensions, METI will alternatively accept an importer’s written self-statement explaining [i] detailed background of such necessity for extension and [ii] difficulty in obtaining such documents until June 30, 2020.
(2) For further procedural details, please refer to “Validity Period of Import Approval and Procedures for Extending the Period and Other Purposes” (Precaution for Imports 10, No.49, on May 15, 1998).
 
It should be noted that expired import licenses are no longer extendable and subject to re-application. Also, please note that METI cannot extend the validity periods of foreign-issued certificates such as the CITES Export Permits and the Kimberley Process Certificates.
 
(2) In cases where expiration of a tariff quota certificate (leather and/or leather shoes) is imminent (Interim Measures Act on Tariffs)
 
Importers are expected to apply for a 30-day extension of their tariff quota certificate (FY2019) BEFORE IT EXPIRES (i.e. March 31, 2020) in case such license is set to expire due to delays or other disruptions as a result of the coronavirus disease 2019 (COVID-19).
 
Notes:
 
(1) Importers cannot apply for extension after April 1, 2020.
(2) For applicants having difficulty in obtaining documents demonstrating difficulties in completing customs clearance (e.g. an exporter’s communication document notifying a delay in shipment of goods, which clearly states the estimated date of arrival in Japan), METI will alternatively accept an importer’s written self-statement explaining [i] detailed background of such necessity for extension and [ii] difficulty in obtaining such documents.
(3) For further procedural details, please refer to Appendix 1 and the document “Request for Tariff Quota and Approaches to Handling Tariff Quota Certificate and Other Information for FY2019” (Precaution for Tariff Quota No.2; 20190204 Bou; No.6, on March 8, 2019).
 
2. Exports
 
(1) In cases where expiration of export license is imminent (Foreign Exchange and Foreign Trade Act)
 
Exporters are expected to apply for extension of their export license BEFORE IT ACTUALLY EXPIRES in case such license is set to expire due to delays or other disruptions as a result of the coronavirus disease 2019 (COVID-19).
 
Note:
(1) For further procedural details, see the document “Operation of the Export Trade Control Order” (Precaution for Exports 62, No.11, on November 6, 1987).
It should be noted that expired import licenses are no longer extendable and subject to re-application. In addition, please note that validity periods of the CITES Export Permit, the Kimberley Process Certificates, and the Certificates of Origin are not extendable.
 
(2) In cases where the conditions set in the export license are not fulfillable before the deadline (Foreign Exchange and Foreign Trade Act)
 
Deadlines of conditions set in the export license, for all destinations, (e.g. reports for installation of machine tools) are automatically extended until June 30, 2020. While application for such extensions are not required, exporters are requested to fulfill the conditions as soon as possible if such conditions become fulfillable even before the new deadline.
 
Notes:
 
The specific dates for the special treatments may be subject to further extension if necessary.
 
3. Revision of related notices
On March 5, 2020, METI established the provisions for partial revision of the Measures on Trade Control as Responses to Coronavirus Disease 2019 (COVID-19) (Precaution for Exports 2020, No.3; Precaution for Imports 2020, No.1; and Precaution for Tariff Quota No.3, which are all dated February 14, 2020). For details, visit the following websites.
 

Back to top

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

COMNEWS

NWS_a111. Export Compliance Daily: “Canada Is Ready for Entry Into Force of USMCA; Mexico Says Not Yet”

(Source: Export Compliance Daily, 6 Apr 2020) [Excerpts]
 
The Canadian government has sent its letter to the U.S. and Mexico certifying it is ready for the USMCA date of entry into force, Deputy Prime Minister Chrystia Freeland announced April 3, but a top Mexican official said his country did not certify it was ready by March 31, which means a June 1 date of entry into force is out of reach.
 
“The Canadian government will continue to work with the United States and Mexican governments to determine an ‘entry into force’ date that is mutually beneficial. We want to ensure the new NAFTA will support a strong economic recovery once we have put the COVID-19 pandemic behind us — which we will,” Freeland said.
 
On April 1, the head of Mexico’s Senate tweeted that to ensure the correct implementation of T-MEC — which is what Mexico calls the new NAFTA — the federal legislature will ensure that “there are clear rules of origin for the automotive sector,” and that dispute settlement panelists are approved. …

NWS_a212. STR: “China Tightens Export Requirements for Medical Products”

(Source:
Sandler, Travis & Rosenberg, 6 Apr 2020) [Excerpts]

 
China is now enforcing stringent new export requirements on medical products being used to respond to the COVID-19 pandemic. Specifically, exports of the following products require certification from authorized testing laboratories, copies of the manufacturer’s business license, and the manufacturer’s certificate from China’s National Medical Products Administration.
 
– COVID-19 test kits
 
– ventilators
 
– medical protective clothing
 
– medical protective masks
 
– medical surgical masks
 
– one-time use medical masks
 
– infrared thermometers
 
Previously exporters of such goods were only required to work with the foreign importer to make sure the product was compliant with the relevant requirements of the importing country, and there was no special requirement for export certification.
 
Effective April 1, however, licensed manufacturers that export medical products on their own must have licenses ready and have their products tested to be eligible for export. …

NWS_a313. WORLDecr: “OFAC Adds to Blacklist for Work with Iran Military and Aiding Iraqi Militias” 

(Source:
WORLDecr
, 3 Apr 2020) [Excerpts]
 
The United States has blacklisted 20 people and companies in Iran and Iraq for alleged links with the Iranian paramilitary Qods force and for providing ‘lethal aid’ to anti-American militia groups in Iraq, the US Treasury Department’s Office of Foreign Assets Control (‘OFAC’) has announced.
OFAC said it had ‘designated 20 Iran- and Iraq-based front companies, senior officials, and business associates that provide support to or act for or on behalf of the Islamic Revolutionary Guards Corps-Qods Force (IRGC-QF) in addition to transferring lethal aid to Iranian-backed terrorist militias in Iraq such as Kata’ib Hizballah (KH) and Asa’ib Ahl al-Haq (AAH).’
 
The 26 March statement added that the entities and individuals had perpetrated or supported smuggling through the Iraqi port of Umm Qasr, money laundering through Iraqi front companies, selling Iranian oil to the Syrian regime, and smuggling weapons to Iraq and Yemen. …

COMCOMMENTARY

COM_a114. Arent Fox: “Reference Guide: Worldwide Export Controls on Face Masks and Other Medical Personal Protective Equipment”

(Source:
Arent Fox, 3 Apr 2020) [Excerpts]
 
* Principal Author: Kay C. Georgi, Esq., 1-202-857-6293, Arent Fox LLP
 
As the COVID-19 pandemic has expanded exponentially, so too has the demand by hospitals and other healthcare providers for masks and other medical personal protective equipment (PPE) to protect doctors, nurses, and other healthcare workers. A number of governments have imposed export controls on the export of a variety of medical (and industrial) PPE. In other words, if you want to import face masks into the US from a European country, you need a license to export them from the EU first.
 
This alert has been updated with new information as of April 3, 2020.
Today, April 3rd, we updated the chart we circulated on March 27th and 24th, with a listing of governments that have and have not imposed export controls on the export of a variety of medical (and industrial) PPE.
 
 
New Countries
We have added new countries: Argentina, Armenia, Bangladesh, Belarus, Colombia, Costa Rica, Ecuador, Jordan, Kyrgyzstan, Libya (GNA), Morocco, Norway, Pakistan, Saudi Arabia, South Africa, Serbia, Switzerland, Ukraine, and the United States.
 
New Restrictions
We have also updated the chart with new export control restrictions in Australia and China.
 
What the Chart Shows
For select countries, the chart shows what medical PPE items are subject to export controls, whether you can obtain a license or whether exports are simply prohibited, where to find the applicable law and other relevant links, and the name and contact information for a lawyer in the country who can help.
 
 
The chart also shows a few key countries that do NOT have export controls on their medical PPE and therefore can be used as sources for medical PPE provided the laws do not change: Bangladesh, Chile, Hong Kong, Japan, and New Zealand.

COM_a215
. Baker McKenzie Blog: “New Export Controls Regulations in South Africa in Light of Covid-19”

(Source: BakerMcKenzie, 3 Apr 2020)
 

* Principal Author:
Virusha Subban, Esq. 27-11-911-4342,
BakerMcKenzie 

 

In light of the operation of a 21-day national lockdown and the President’s declaration of a state of national disaster, the Department of Trade and Industry introduced new export control measures on Friday, 27 March 2020. These measures came into operation with effect from 27 March 2020 and shall remain in operation until further notice.
 
Export applications to the International Trade Administration Commission (ITAC)
 
Section 6 of the International Trade Administration Act, 71 of 2002, empowers the Minister of Trade and Industry to prescribe goods that may only be exported under the authority of and in accordance with the conditions stated in a permit by ITAC. In terms of the COVID-19 Export Control Regulation (COVID-19 Regulation), goods listed in Schedule 4 shall not be exported from the Republic of South Africa except by virtue of an export permit issued by ITAC.
 
In addition, ITAC may no longer determine applications for export permits without first receiving a recommendation from the Department of Trade Industry and Competition (DTIC), as well as any other department (the Line Department). If ITAC receives no recommendation from the DTIC and/ or the Line Department within a period of ten (10) working days or such an extended period as requested, it will be deemed that there is no objection to the issuing of an export permit.
 
Schedule 4 Goods
 
The following goods are subject to export control: alcohol-based hand sanitizers; face-masks; gas masks; other breathing appliances; hydoxychloroquine; antisera and other blood fractions; vaccines for human medicine; and medicaments.
 
The following goods are excluded from export control: protective masks having neither mechanical parts nor replaceable filters.
 
The export control measures apply irrespective of the quantity of goods intended for exportation. We will continue to monitor any additional restrictions and/ or requirements on medicines and medical supplies, and will provide further updates accordingly.

COM_a316. Husch Blackwell: “COVID-19 Impacts on Demurrage and Detention”


* Principal author: Carlos Rodriguez, Esq., Husch Blackwell LLP 

What might not be so obvious in this COVID-19 environment, which we have grown to associate with shortages, is that counterintuitively there are issues beginning to appear dealing with the opposite situation. The 
Journal of Commerce
 has reported that “[t]he container shipping industry is marshaling a response to signs of a building import backlog as some retailers and manufacturers fail to pick up containers because warehouses are full or closed due to not being deemed essential service providers responding to coronavirus disease 2019 (COVID-19).” This is a development with implications to all stakeholders in the supply chain and will have some impact on retailers/manufacturers, ocean carriers, ocean transportation intermediaries, and warehouses.

Demurrage

Ocean carriers and/or marine terminals will be assessing demurrage on containers which are not picked up within the free time period (usually a few days) from when the containers are available. These daily charges accelerate after a period of time, and it is not unusual for demurrage charges to end up in four to five figures, especially with all the other consequences related to COVID-19 such as a growing scarcity of trucking capability, and (as noted) the overstocked conditions of some retailers and manufacturers in their own warehouses.

Detention

Detention are charges assessed on a daily basis after a free period is exceeded. They are assessed per container after the chassis/containers have been picked up from the marine terminal and the importer does not unlade the goods, but rather have the chassis/containers sit in their yards providing “warehousing.” Detention charges, as do demurrage charges, can accrue quickly into hefty figures. We recently experienced such detention charges in the $400,000 range, not accrued during the COVID-19 period, but submitted here as an example of how these charges can accrue to significant levels.

Demurrage and Detention Impacts

Ocean Carriers.
 
On the ocean carrier side there is currently and will continue to be a concern for equipment availability which is a function not only of having the equipment on hand, but properly positioned at a global origin or destination location. At this stage there has been a strong continuation of blank sailings (voyage cancellations) as well as in some cases ocean carriers having cancelled service strings that will impact various U.S. ports. The equipment logistics puzzle will get complicated, and one can expect for ocean carriers to become aggressive in going after container equipment, so that they can be properly placed in their system. Expect demurrage and detention collection activity from the ocean carrier side, which is nothing new, but there may be a new urgency in the activity. COVID-19 issues and how these are handled may have a role to play in the solution of these issues.

Retailer/Manufacturer Importers. 
As noted in the JOC article cited above, there are some retailers and manufacturers which appear to be abandoning their cargo at marine terminals by failing to pick them up. A couple of things to keep in mind are that ocean carriers and marine terminal operators will be aggressive in going after demurrage and detention charges. The other thing to consider is that these charges can accrue to hefty amounts in a relatively short time. The other factors to keep in mind are the potential actions to be taken by ocean carriers when the containers are considered abandoned which involves the assertion of liens and the sale of the goods to recoup the amounts owed. If the amounts owed exceed the amounts collected from public or private sales, the importer parties would still be liable for the difference between amounts collected and amounts owed.

Ocean Transportation Intermediaries (OTI) and Customs Brokers
Non-vessel operating common carriers (NVOCCs) and Customs Brokers are two types of intermediaries which routinely appear as consignees on ocean carrier master bills of lading. This designation in the Consignee Box immediately designates these entities as “merchants” pursuant to definitions in ocean carrier bills of lading. As “merchants” this category of person is susceptible to demurrage and detention charges even though they are not the true “importers” of the goods which were not picked up from the marine terminals resulting in demurrage, nor were they parties holding up containers which are accruing detention charges at the premises of the true importer, usually the consignee on an NVOCC house bill of lading. Our advice to Customs Brokers: never allow your company to appear as consignee on a master bill of lading if the only functions being performed are custom clearances. The better location for the Customs Broker is the Notify Party box. If the Customs Broker is also acting as an agent for a foreign-domiciled NVOCC as an OTI per Federal Maritime Commission regulations, we suggest that it be designated “AS Agent for Named Registered NVOCC” in the ocean carrier’s master bill of lading. A last word to OTIs acting as NVOCCs when their customers are not picking up the containers: note that in those cases the NVOCC is the designated consignee on the master bill of lading and is arguably liable for demurrage and detention charges. Such NVOCCs should have a plan in hand to assert carrier liens and apply them lawfully to containers being held for all charges owed to it from the importer, including demurrage and possible detention charges.

Conclusion

The current reasons for these additional probabilities for demurrage and detention are new in connection with COVID-19, but the issue of who is liable for these charges, and under what conditions they might not be liable, are well worn issues in this arena which are in the process of being redefined by the Federal Maritime Commission (FMC). Another item of interest is that in anticipation of demurrage and detention and that other cargo delivery events might be different in the COVID-19 era, 
the FMC has ordered
 on March 31, 2020 that Commissioner Rebecca Dye identify operational solutions to cargo delivery system challenges related to COVID-19. Commissioner Dye will convene new Supply Chain Innovation Teams to address these challenges. We expect that, before these Supply Chain Innovation Teams will come into play, there will be live legal issues on demurrage and detention with a COVID-19 context.

COM_a417
. Husch Blackwell: “Opportunity to Request Administrative Review”

(Source: 
Husch Blackwell Blog, 1 Apr 2020)
 

* Principal author: 
Beau Jackson
, Esq., 1-816-983-8202, Husch Blackwell LLP

On April 1, 2020, Commerce announced in the Federal Register the opportunity to request an annual administrative review for products that are currently subject to antidumping and countervailing duties. As part of this annual review process, Commerce intends to select respondents based on U.S. Customs and Border Patrol (CBP) data for U.S. imports during the period of review. Any party wishing to participate in the antidumping and countervailing duty review process or who may be affected by duties on the products identified in the Federal Register notice should file a request for review no later than April 30, 2020. In order to be eligible to participate in the review, a party must either be an exporter or importer of the specific products and during the specific time periods identified in the Federal Register notice.

COM_a518. Trump and Trade: “USTR Releases 2020 National Trade Estimate Report on Foreign Trade Barriers”

(Source: Trump and Trade, 3 Apr 2020)
 
* Author: Scott Diamond, Esq., 1-202-263-4197, Thompson Hine
 
The Office of the U.S. Trade Representative (USTR) has released its annual National Trade Estimate Report on Foreign Trade Barriers that addresses the status of foreign trade and investment barriers to U.S. exports around the world. This report is the U.S. government’s major annual report on the barriers to trade, investment and services that U.S. exporters and other businesses encounter around the world. It discusses the largest export markets for the United States, covering 59 countries, including each of the United States’ 20 free trade agreement (FTA) partners and the 50 largest markets for exports of U.S. goods. Together, these countries account for over 95% of the United States’ $5.5 trillion in two-way trade in goods and services.
 
The report notes that “trade barriers elude fixed definitions, but may be broadly defined as government laws, regulations, policies, or practices that either protect domestic goods and services from foreign competition, artificially stimulate exports of particular domestic goods and services, or fail to provide adequate and effective protection of intellectual property rights.” The report classifies foreign trade barriers in 11 categories:

  1. Import policies (e.g., tariffs and other import charges, quantitative restrictions, import licensing, customs barriers and shortcomings in trade facilitation, and other market access barriers); 
  2. Technical barriers to trade (e.g., unnecessarily trade restrictive standards, conformity assessment procedures, or technical regulations, including unnecessary or discriminatory technical regulations or standards for telecommunications products); 
  3. Sanitary and phytosanitary measures (e.g., trade restrictions implemented through unwarranted measures not based on scientific evidence); 
  4. Subsidies, including export subsidies (e.g., export financing on preferential terms and agricultural export subsidies that displace U.S. exports in third country markets) and local content subsidies (e.g., subsidies contingent on the purchase or use of domestic rather than imported goods); 
  5. Government procurement (e.g., “buy national” policies and closed bidding); 
  6. Intellectual property protection (e.g., inadequate patent, copyright, and trademark regimes and inadequate enforcement of intellectual property rights); 
  7. Services barriers (e.g., prohibitions or restrictions on foreign participation in the market, discriminatory licensing requirements or regulatory standards, local-presence requirements, and unreasonable restrictions on what services may be offered); 
  8. Barriers to digital trade (e.g., barriers to cross-border data flows, including data localization requirements, discriminatory practices affecting trade in digital products, restrictions on the provision of internet-enabled services, and other restrictive technology requirements); 
  9. Investment barriers (e.g., limitations on foreign equity participation and access to foreign government-funded research and development programs, local content requirements, technology transfer requirements and export performance requirements, and restrictions on repatriation of earnings, capital, fees and royalties); 
  10. Competition (e.g., government-tolerated anticompetitive conduct of state-owned or private firms that restricts the sale or purchase of U.S. goods or services in the foreign country’s markets or abuse of competition laws to inhibit trade); and, 
  11. Other barriers (barriers that encompass more than one category, e.g., bribery and corruption, or that affect a single sector).
 
USTR Fact Sheets:
 
Removing Barriers to U.S. Exports Worldwide” (major developments in the 2020 NTE)

TEEX/IM
MOVERS & SHAKERS

 
(Source: Events & Jobs Editor)

* Atlas Copco; Charlotte, NC; CT Trade Compliance Lead – NASA region
 
* CF Industries; Deerfield, IL; Manager, Transportation Compliance
 
* DynCorp International; Fort Worth, TX; Contracts Manager (Contingent Upon Award; Requistion ID:
BLU2001786
 
* L3Harris Technologies; Rochester, NY; Spec, Trade Compliance; Requistion ID: CS20203001-40022
 
* Marotta Controls; Township of Montville, NJ; Contracts & Compliance Manager
 
* Maxim Integrated; San Jose, CA; Supply Chain Management Analyst; Requistion ID: R7495BR
 
* PSEG; Clifton, NJ; Sr. Analyst – Centralized Work Planning & Scheduling; Requisition ID: 60301
 
* Surefire LLC; Fountain Valley, CA; Manager, International Trade Compliance; Contact Details: sgreenberg@surefire.com
 
* The Aerospace Corporation; El Segundo, CA; Export Control Staff IV; Requistion ID: 53146
 
* Vitabiotics Ltd; London, UK; Export Manager, APAC

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

TEEX/IM TRAINING EVENTS & CONFERENCES

*What: U.S. Export Controls – Separate subjects on separate days:


 
Wed. April 8: Introduction to Export Controls & the Elements of the ITAR
Wed. April 15: Introduction to the EAR & Export Authorizations
Thurs. April 23: Fundamentals of Jurisdiction & Classification
Wed. April 29: How to Complete ITAR Export Authorizations
Wed. May 6: Required Elements of a Compliance Program
Wed. May 13: Overview of the Most Commonly Used ITAR Exemptions
Wed. May 20: Overview of the Most Commonly Used EAR Exceptions
Wed. May 27: Top 10 Violations & Tips to Prevent
* When: 1-2:30 pm Eastern, on the above dates
* Where: Webinar on your computer
* Sponsor: Export Compliance Solutions & Consulting
* Presenter: Suzanne Palmer, Mal Zerden
* Register here:
 

– Link to 8-pack of seminars
, with professional certification option

* More information: 1-866-238-4018 or email liz@exportcompliancesolutions.com.


back to top

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

TE_a221. FCC Academy: U.S. Export Controls: ITAR, EAR, and FMS

U.S. Export Controls: ITAR

Tuesday, 7 April 2020, Online
More Info

U.S. Export Controls: EAR

Wednesday, 8 April 2020, Online
More Info

The ABC of Foreign Military Sales (FMS)

Tuesday, 9 April 2020, Online
More Info

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 2019:84 FR 13499: 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
: 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: 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: Bump-Stock-Type Devices.

DOS INTERNATIONAL TRAFFIC IN ARMS REGULATIONS (ITAR): 22 C.F.R. Ch. I, Subch. M, Pts. 120-130.  26 Dec 2019: 84 FR 70887; 23 Jan 2020: 85 FR 3819: Encryption rule and USML Categories I, II, III, and related sections regarding guns & ammo. 
DOT FOREIGN ASSETS CONTROL REGULATIONS (OFAC FACR): 31 CFR, Parts 500-599, Embargoes, Sanctions, Executive Orders

13 Mar 2020:
85 FR 14572:
General Licenses Issued Pursuant to Venezuela-Related Executive Order 13835.

 
 
 
 
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.
 

* * * * * * * * * * * * * * * * * * * *
The Daily Bugle Archive

Are you searching for updates from the past editions of the Daily Bugle? 

We publish a list of over 100 trade compliance job openings every day.

Submit your job for free.
PermanentJobListView All Job Openings

Are you looking for a new job in trade compliance?
Click here to see the current job openings.

We publish a list of over 100 trade compliance events every day. Submit your event for free.

PermanentJobListView All Events

Are you looking for an upcoming event?   
Click here to see upcoming events.

Scroll to Top