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20-0505 Tuesday “Daily Bugle”

20-0505 Tuesday “Daily Bugle”

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Tuesday, 5 May 2020

 
[No items of interest noted.]
  1. Items Scheduled for Future Federal Register Edition
  2. Commerce/BIS to Present “Complying with U.S. Export Controls,” a Four-Day Webinar; 19-22 May
  3. State/DDTC: (No new postings.)
  1. UK ECJU: “UK and US Start Trade Negotiations”
  2. ST&R Trade Report: “Nearly All China List 3 Tariff Exclusions Being Considered for Extension”
  1. CTP: “Series of New BIS Rules Aimed at China and Other National Security Concerns”
  1. ECTI Presents: Hitting the Mark – Classification under the Harmonized System & Schedule B Code Webinar: 14 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
  4. Submit Your Job Opening and View All Job Openings
  5. Submit Your Event and View All Approaching Events

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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!    
 

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State/DDTC: Rule; ITAR: Temporary Reduction in Some Registration Fees


[Scheduled Pub. Date: 6 May 2020]


 

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(Source:
Commerce/BIS)

 
In partnership with Women in International Trade Orange County (WITOC), BIS is offering the webinar, “Complying with U.S. Export Controls,” May 19-22, 2020; in four, three-hour sessions from 9am to 12pm PT daily.
 
This conference will be a live event: an opportunity to see and hear BIS specialists present, have your questions answered, and participate in interactive exercises to expand your regulatory and compliance knowledge. Experienced BIS specialists will deliver the training.
 
The information covered will include: scope of the EAR, how to classify your items for export, how to apply for an export license, understanding and using license exceptions, deemed exports,
de minimis and direct product rules, export clearances, export enforcement, and developing an export management and compliance program.
 
Price: $550.  Register
Here or contact Simona Racek at
outreach@witoc.org or (949) 445-0618. For more information on how the program will work or questions on the topics to be covered, please call the BIS Western Regional Office at (949) 660-0144 or (408) 998-8806.

 
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OGS_a33. State/DDTC: No new postings.

(Source:
State/DDTC)

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COMNEWS

NWS_a14. UK ECJU: “UK and US Start Trade Negotiations”

(Source: UK ECJU, 5 May 2020) [Excerpts] 


 
The UK and US governments will today (Tuesday 5 May) start negotiating a UK-US Free Trade Agreement.  The International Trade Secretary Liz Truss and the US Trade Representative Robert Lighthizer are launching negotiations via video conference call. This first round of negotiations will last for approximately 2 weeks and will involve around 100 negotiators on each side. . . .
 
Talks will cover all areas set out in the UK’s negotiation objectives, including goods and services trade, digital trade, investment and supporting SMEs. Further rounds will take place approximately every 6 weeks and will be carried out remotely until it is safe to travel. . . .
 
International Trade Secretary Liz Truss said: 

The US is our largest trading partner and increasing transatlantic trade can help our economies bounce back from the economic challenge posed by Coronavirus. . . .
 
Both negotiating teams have already laid the groundwork for an ambitious agreement through the UK-US Trade and Investment Working Group, which has met six times in the lead up to the talks. They have discussed the full suite of topics typically included in FTAs – allowing talks to quickly get underway. . . .
 
The government is committed to a transparent approach to trade negotiations and we will publish a summary of the first round once it has concluded. 

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

NWS_a15. ST&R Trade Report: “Nearly All China List 3 Tariff Exclusions Being Considered for Extension”

(Source:
Sandler, Travis & Rosenberg Trade Report
, 5 May 2020) [Excerpts]
 
An extension for up to 12 months of almost all the exclusions granted thus far from the Section 301 tariff on List 3 goods from China is under consideration by the Office of the U.S. Trade Representative. Comments may be submitted until June 8.  . . . 
 
List 3 goods were subject to an additional 10 percent tariff beginning Sept. 24, 2018, a figure that was increased to 25 percent as of May 10, 2019. Since August 2019 USTR has issued 11 sets of exclusions from this tariff, all of which are set to expire Aug. 7. A comprehensive list of these exclusions can be found here (please note that this list also includes exclusions granted on April 24, 2020, which are not currently being considered for extension).
 
USTR is now considering an extension of these exclusions and will evaluate each on a case-by-case basis. The focus of this evaluation will be whether the product at issue remains available only from China.
 
Those requesting an extension of an exclusion are strongly encouraged to submit a comment form with the following information:
   – full legal name of the organization making the comment, whether the commenter is a third party (e.g., law firm, trade association, or customs broker) submitting on behalf of an organization or industry, and (if so) the name of the third-party organization
   – the number for the exclusion at issue, as provided in the annex of the applicable Federal Register notice
   – whether the product is subject to an antidumping or countervailing duty order
   – whether the commenter supports or opposes extending the exclusion and why
   – whether the excluded product or comparable products are available from sources in the U.S. or third countries, and any changes in the global supply chain for the product since September 2018
   – efforts undertaken since September 2018 to source the product from the U.S. or third countries
   – the value and quantity of the excluded product purchased in 2018 and 2019 and whether these purchases are from a related company (and, if so, its name and relationship to the requester)
   – whether Chinese suppliers have lowered their prices for the excluded product following the imposition of tariffs
   – the value and quantity of the excluded product purchased from domestic and third-country sources in 2018 and 2019
   – the commenter’s gross revenue for 2018 and 2019
   – whether the excluded product is sold as a final product or as an input
   – whether the imposition of tariffs on the excluded product will result in severe economic harm to the commenter or other U.S. interests
   – any additional information in support of the extension request

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COMCOMMENTARY

COM_a16. CTP: “Series of New BIS Rules Aimed at China and Other National Security Concerns”
(Source: CTP, Inc., Blog, 5 May 2020) [Excerpts]

Last week the Bureau of Industry and Security (BIS) rolled out three new rules that will impact U.S. export controls as they relate to China, Russia, and Venezuela. Set to become effective on June 29, 2020, two of the final rules amend the Export Administration Regulations (EAR) to:
  1. Impose license requirements for exports of certain items when destined for “military end use” or to “military end users” in China, Russia, and Venezuela; and
  2. Remove License Exception Civil End Users (CIV) and impose a license requirement for items on the Commerce Control List (CCL) subject to national security reasons for control when exported to countries of national security concern.
  3. The third publication was a proposal to modify License Exception Additional Permissive Reexports (APR) to remove provisions that currently authorize reexports of certain national security-controlled items.
These changes reflect the U.S. government’s increased concerns about civil and military integration, particularly in China. Potential impacted industries range from information technology to aerospace and advanced materials. Those companies exporting items subject to the rule to China, Russia, and Venezuela or that currently use license exceptions CIV and/or APR should review these changes carefully to evaluate how they may impact their business and reevaluate their compliance procedures before June 29th. Details about these rules are highlighted below.
Expansion of Controls for Military End Use or End Users in China, Russia, and Venezuela.  The final rule has expanded the scope of prohibitions for exports for exports for military end uses and military end users in China, Russia, and Venezuela. Part 744.21 of the EAR has been modified to require a license for exports, reexports, and transfers (in-country) of items listed in Supplement No. 2 to Part 744 when exported to “military end users” in China or for a “military end use.” Previously, the section imposed a license restriction only when exported for military end uses in China, not military end users. The list of items in Supplement No. 2 to Part 744 has expanded to include a number of Export Control Classification Numbers (ECCN) including semiconductor equipment, telecommunications, information security, sensors and lasers, and aircraft parts and components.
Specific ECCNs affected include 2A290, 2A291, 2B999, 2D290, 3A991, 3A992, 3A999, 3B991, 3B992, 3C992, 3D991, 5B991, 5A992, 5D992, 6A991, 6A996, 8A992, 9A991, and 9B990. Previously, items controlled under these ECCNs were controlled only for anti-terrorism reasons for control and would not have required a license for export to China, Russia, or Venezuela . . .

TEEX/IM TRAINING EVENTS & CONFERENCES

TE_a17. ECTI Presents: Hitting the Mark – Classification under the Harmonized System & Schedule B Code Webinar: 14 May

(Source:
Ashleigh Foor
)

 
* What: Hitting the Mark – Classification under the Harmonized System & Schedule B Code
* When: 14 May, 2020; 1:00 p.m. (EDT)
* Where: Webinar
* Sponsor: Export Compliance Training Institute (ECTI)
* ECTI Speaker: Melissa Proctor
* Register:
here
or contact
Ashleigh Foor
, 1-540-433-3977.

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ENEDITOR’S NOTES

EN_a18. Bartlett’s Unfamiliar Quotations

(Source: Editor)

 

*
Karl Marx (Karl Heinrich Marx; 5 May 1818 – 14 Mar 1883; was a German philosopher, economist, historian, sociologist, political theorist, journalist, and socialist revolutionary.  His best known book was
The Communist Manifesto, co-authored with Friedrich Engels.)
 – “The theory of Communism may be summed up in one sentence: Abolish all private property!”
 
*
Christopher Morley (5 May 1890 – 28 Mar 1957; was an American journalist, novelist, essayist and poet. He also produced stage productions for a few years and gave college lectures.)
  – “Read, every day, something no one else is reading. Think, every day, something no one else is thinking. Do, every day, something no one else would be silly enough to do. It is bad for the mind to continually be part of unanimity.”

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

EN_a69. Are Your Copies of Regulations Up to Date?

(Source: Editor) 

 

The official versions of the following regulations are published annually in the U.S. Code of Federal Regulations (C.F.R.), but are updated as amended in the Federal Register.  The latest amendments 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.
 

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