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20-0416 Thursday ” Daily Bugle”

20-0416 Thursday “Daily Bugle”

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Thursday, 16 April 2020

[No items of interest today]
  1. Items Scheduled for Future Federal Register Edition
  2. Commerce/BIS: (No new postings.)
  3. DHS/FDA: “System Scheduled Down Time for 25-26 April”
  4. State/DDTC Publishes Report on Compliance with Arms Control, Nonproliferation, and Disarmament Agreements and Commitments
  5. State/DDTC Announces Outage Notice on Friday, 17 April
  6. Treasury/OFAC: “Publication of an Advisory on the Cyber Threat Posed by North Korea”
  7. EU Council: Council Approves a Multi-Party Interim Appeal Arbitration Arrangement to Solve Trade Disputes
  1. Export Compliance Daily: “CBP Memo on PPE Exports Causing Confusion”
  1. BakerMcKenzie: “UK to Enable Importers to Defer Customs Duty and Import VAT Payment Due to COVID”
  2. Husch Blackwell: “Customs Creates New Imports Web Portal for Inquiries Related to COVID”
  3. KPMG: “Costa Rica: Exports of Certain Products Restricted”
  1. ECS Presents “ITAR/EAR Controls for Non-US Companies” on 24-25 Jun in Toronto
  2. FCC Academy Presents Webinar: “An Introduction to EU/Dutch Dual-use and Military Export Controls”; 12 May
  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

 
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OGSOTHER GOVERNMENT SOURCES

OGS_a11
.
Items Scheduled for Future Federal Register Editions  

(Source:
Federal Register)

 

* DoD/DCSA; NOTICES; Arms Sales; [Pub. Date: 17 Apr 2020]
 
* USITC/USTR; NOTICES; COVID-19 Related Goods: U.S. Imports and Tariffs; [Pub. Date: 17 Apr 2020]

 
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OGS_a22. 
Commerce/BIS: (No new postings.)

 
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OGS_a3
3
.
DHS/FDA: “System Scheduled Down Time 25-26 April

(Source:
DHS/CBP, 15 Apr 2020)
The Food and Drug Administration (FDA) Interoperability Web Service (IWS), the interface between U.S. Customs and Border Protection (CBP) and FDA, will be down for scheduled maintenance during the period shown below:
 
Start:
Saturday, 25 Apr 2020, 11:00PM EDT
End:
Sunday, 26 Apr 2020, 2:00AM EDT
During this time:
 
– FDA will not process any Inbound entries or Outbound messages.
– FDA Prior Notice System Interface (PNSI) will be operational under Contingency Scenario 1. Please Do Not resubmit entries during this window as it will add to the backlog to be processed
 
If Prior Notice has been submitted via ACE and confirmation has been received:
 
No further action is required.
 
If Prior Notice has been submitted via ACE and confirmation has not been received:
 
Please do not resubmit entries as this will cause additional delays.
Filers have the option to:
Wait until the issue is resolved, unless this will cause the prior notice submission to be untimely. Filers who choose this option should understand that they remain responsible under section 801(m) of the Federal Food, Drug, and Cosmetic Act and under the prior notice final rule for filing timely prior notice.
Provide CBP officers with evidence to show prior notice was submitted via ACE (e.g. signed copy of the ABI/ACE transmission).
 
If Prior Notice has not been submitted:
 
Filers have the option to:
Wait until the issue is resolved, unless this will cause the prior notice submission to be untimely. Filers who choose this option should understand that they remain responsible under section 801(m) of the Federal Food, Drug, and Cosmetic Act and under the prior notice final rule for filing timely prior notice.
Submit Prior Notice via the Prior Notice System Interface (PNSI) The prior notice confirmation number must accompany the article(s). Presenting the PNSI confirmation page(s) to CBP officers is recommended.
For additional details, see Prior Notice Contingency Scenario 1.

 
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OGS_a44.

State/DDTC Publishes Report on Compliance with Arms Control, Nonproliferation, and Disarmament Agreements and Commitments 

 

(Source:
State/DDTC, 15 Apr 2020) [Excerpts]
 
Purpose
This document is an unclassified Executive Summary of the Report that is transmitted pursuant to Section 403 of the Arms Control and Disarmament Act, as amended (22 U.S.C. § 2593a), which requires a report by the President on Adherence to and Compliance with Arms Control, Nonproliferation, and Disarmament Agreements and Commitments. This unclassified Executive Summary is intended to address the requirement in that statute that a report be submitted to Congress not later than April 15 annually. The full-length unclassified version of the Report will be provided at the earliest possible opportunity consistent with safe personnel and reduced staffing practices necessitated by the COVID-19 pandemic, along with the SECRET and the TOP SECRET/SCI level annexes.
 
SCOPE OF THE REPORT
The full Report assesses U.S. compliance with and adherence to arms control, nonproliferation, and disarmament agreements and related commitments in 2019, including confidence- and security-building measures (CSBMs), as well as the compliance and adherence in 2019 of other nations to arms control, nonproliferation, and disarmament agreements and commitments, including CSBMs and the Missile Technology Control Regime, to which the United States is a participating State. The issues addressed in the Report will primarily reflect activities from January 1, 2019, through December 31, 2019, unless otherwise noted.[a]
 
The Compliance Report includes reporting and analysis at the levels of classification for which reliable supporting information is available. The unclassified and SECRET versions of the Report recount as much information as possible, but certain issues can be discussed only at higher levels of classification. Some compliance concerns are raised and some findings of violations are made, for instance, only in the SECRET or TOP SECRET/SCI-level elements of the Report. …

 
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OGS_a55.

State/DDTC Announces Outage Notice on Friday, 17 April


The Defense Export Control and Compliance (DECCS) Registration application will be unavailable to industry from 6:00 AM (EST) through 8:00 AM (EST) Friday, 17 April 2020, for scheduled system maintenance. Please ensure work in progress is saved prior to the scheduled downtime.

 
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OGS_a66.

Treasury/OFAC: “Publication of an Advisory on the Cyber Threat Posed by North Korea” 

 

(Source:
Treasury/OFAC, 15 Apr 2020)

 
On April 15, the U.S. Departments of State, Homeland Security, and Treasury, and the Federal Bureau of Investigation
issued an advisory to raise the awarness of the cyber threat posed by North Korea. The advisory highlights North Korea’s malicious cyber activities around the world, identifies U.S. government resources that provide technical and threat information, and includes recommended measures to counter the cyber threat.
 
North Korea’s malicious cyber activities threaten the United States and countries around the world and, in particular, pose a significant threat to the integrity and stability of the international financial system. The United States works closely with like-minded countries to focus attention on and condemn disruptive, destructive, or otherwise destabilizing behavior in cyberspace. It is vital for foreign governments, network defenders, and the public to stay vigilant and to work together to mitigate the cyber threat posed by North Korea.

 
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OGS_a77.

EU Council Approves a Multi-Party Interim Appeal Arbitration Arrangement to Solve Trade Disputes 

 

(Source:
Council of the European Union, 15 Apr 2020)

 
The EU is taking steps to protect key features of the multilateral trading system.
 
The Council today gave the go-ahead to the multi-party interim appeal arbitration arrangement (MPIA), a new system that will allow the EU, together with other participating WTO members, to overcome the current paralysis of the WTO’s Appellate Body and solve trade disputes amongst themselves.
 
The new arrangement will be temporary, and based on Article 25 of the WTO Dispute Settlement Understanding (DSU). It mirrors the main features of the WTO appeal system.
 
The MPIA will enable the participating members to benefit from a binding resolution of trade disputes and have the right to an independent and impartial appeal review of panel reports, as it is the case in the WTO system.
 
The MPIA is meant as a temporary arrangement, as the EU remains committed to working with all WTO members to find a permanent and urgent solution to the paralysis of the WTO Appellate Body.
 
Background
The WTO’s Appellate Body has not been able to hear appeals since 11 December 2019. This is because there is an insufficient number of members of the Body following the blocking of new appointments since 2017.
 
On 27 March 2020 the ministers of the following WTO member countries announced that they had decided, subject to the completion of their respective domestic procedures, to put in place the MPIA on the basis of a document negotiated among them: Australia, Brazil, Canada, China, Chile, Chinese Taipei, Colombia, Costa Rica, the European Union, Guatemala, Hong Kong, Mexico, New Zealand, Norway, Singapore, Switzerland, and Uruguay. The MPIA is open for any WTO member to join, and will become operational upon its notification to the WTO’s Dispute Settlement Body which is expected in the coming weeks.
 
The Council approved the multi-party interim appeal arbitration arrangement through written procedure.

Back to top

 
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COMNEWS

NWS_a18.
Export Compliance Daily: “CBP Memo on PPE Exports Causing Confusion”
(Source: Export Compliance Daily, 15 Apr 2020) [Excerpts]   
 
The scope of the export ban on personal protective equipment is the source of some confusion after CBP issued a memo that laid out multiple exclusions and other information not included in the official notices, said Brian McGrath, a lawyer with Crowell & Moring who spoke on an 15 April webinar. “We hope to see a formal process coming in the next week or so,” he said. 

According to McGrath, CBP said the release of the memo was “accidental and stated that it cannot be relied on at this time.” The 9 April CBP memo said that the ban would only apply to shipments of 10,000 units or more and $25,000 or more, and would exclude exports by U.S. charities, government agencies and 3M. It also said exports to Canada and Mexico aren’t banned, and that in-transit shipments couldn’t be stopped. …

COMCOMMENTARY

COM_a19. BakerMcKenzie: “UK to Enable Importers to Defer Customs Duty and Import VAT Payment Due to COVID”

(Source: Sanctions & Export Controls Update, 14 Apr 2020)
 
* Principal Author: Jennifer F. Revis, Esq., 44-20-7919-1381, BakerMcKenzie LLP
 
UK HM Revenue & Customs (“HMRC“) has issued a communication stating that it is willing to consider extending payment deadlines on a case-by-case basis, for importers facing severe financial difficulties as a direct result of COVID-19.
 
Businesses holding a duty deferment account may request an extension of the payment deadline for deferred customs duty and import VAT, without needing to call on a guarantee, increasing their guarantee limit, or risking their deferment account being suspended. No interest will be charged on an agreed extension. Duty deferment accounts may be suspended if the business defaults on a payment due during the extended period, and interest will be due on any payments that miss the agreed date.
 
Registered importers not holding a duty deferment account may request an extension to the payment deadline on a case-by-case basis, at the time when payment is due (which in most cases will be the time when goods are imported into the UK). The importer will need to explain how the pandemic has impacted its business finances. HMRC has discretion to refuse a request, and may impose conditions (including specific time limits, and/or for the importer to obtain a guarantee for the duration of the extension).
 
The approaches set out above are at HMRC’s discretion and will not be granted automatically. However, for businesses experiencing cashflow issues as a result of COVID-19, they may prove to be useful tools for ensuring that goods can continue to be imported into the UK in the immediate term.

COM_a210.
Husch Blackwell: “Customs Creates New Imports Web Portal for Inquiries Related to COVID” 

(Source: International Trade Insights, 14 Apr 2020)
 
* Principal Author: Robert D. Stang, Esq., 1-202-378-2334, Husch Blackwell LLP
 

U.S. Customs and Border Protection (“CBP”) announced in CSMS #42364745, issued April 14, 2020, that due to the high volume of inquiries the agency is migrating from its COVID-19 Relief Imports email address to the
COVID-19 Relief Imports Web Portal, which is designed to address inquiries related to the importation of medical supplies to combat the COVID-19 virus. 

The web portal contains a search bar, links to articles and news items, and four larger tabs: Admissibility Questions; Cargo Holding/Facilitation Assistance; PPE Importing Guidance; and PPE Classification / Duty Questions, each with a number of resources and FAQs. The portal also contains a Submit Contact Request at the bottom of each tab, enabling submission of a direct inquiry to the COVID-19 Cargo Resolution Team (“CCRT”). The portal can be found at 
https://imports.cbp.gov/.

COM_a311. KPMG: “Costa Rica: Exports of Certain Products Restricted  
(Source:
KPMG, 14 Apr 2020) [Excerpts]
 
Costa Rica has imposed restrictions on exports of certain products in response to the coronavirus (COVID-19) pandemic.
Export restrictions are imposed regarding the following products:
* Mono glasses
* N95 masks
* Disposable surgical masks
* Nitrile gloves
* Disposable robes
 
The General Customs Administration has the authority to block exports of these products. However, exports of these products from companies located in “free trade zones” are excluded from the application of this measure.
The export restriction applies as of 10 April 2020 and is to remain effective until the emergency decree is lifted. …

TEEX/IM TRAINING EVENTS & CONFERENCES

TE_a1
12.
ECS Presents “ITAR/EAR Controls for Non-US Companies” on 24-25 Jun in Toronto

(Source:
ECS)

 
*What:  ITAR/EAR Controls for Non-U.S. Companies
*When: June 24-25, 2020
*Where:  Toronto, Canada
*Sponsor: Export Compliance Solutions & Consulting
*Presenter: Suzanne Palmer, Mal Zerden
*Register 

here
 or by calling 866-238-4018 or email 
liz@exportcompliancesolutions.com
* Remote attendance available

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

TE_a2
13.
FCC Academy Presents Webinar: “An Introduction to EU/Dutch Dual-use and Military Export Controls
“; May 12

(Source: FCC Academy)
 
*What: Introduction to EU / Dutch Dual-Use and Military Export Controls
*When: May 12, 2020
*Where:  Online
*Sponsor: FCC Academy 
*Presenter: Marco F.N. Crombach MSc (Director)
*Register:

here
, or email
 events@fullcirclecompliance.eu

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ENEDITOR’S NOTES

EN_a114. Bartlett’s Unfamiliar Quotations

(Source: Editor)

   

* James Branch Cabell (14 Apr 1879 – 5 May 1958; was an American author of fantasy fiction and belles-lettres. (Belles lettres is a category of literature that are beautiful and pleasing in an artistic way, rather than being serious, factual, or informative.) Cabell was well-regarded by his contemporaries, including H. L. Mencken, Edmund Wilson, and Sinclair Lewis. His works were considered escapist and fit well in the culture of the 1920s, when they were most popular. For Cabell, veracity was “the one unpardonable sin, not merely against art, but against human welfare.”)
– “People marry for a variety of reasons and with varying results. But to marry for love only is to invite inevitable tragedy.”
– “There is not any memory with less satisfaction than the memory of some temptation we resisted.”  

 

* Arnold J. Toynbee
(14 Apr 1889 – 22 Oct 1975; was a British historian, a philosopher of history, an author of numerous books, and a research professor of international history at the London School of Economics and King’s College in the University of London. He is best known for his 12-volume A Study of History.)
– “As human beings, we are endowed with freedom of choice, and we cannot shuffle off our responsibility upon the shoulders of God or nature. We must shoulder it ourselves. It is our responsibility.
“America is a large friendly dog in a small room. Every time it wags its tail it knocks over a chair.” 

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

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

10 Apr 2020:
85 FR 20158:

North Korea 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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