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20-0514 Thursday “Daily Bugle”

20-0514 Thursday “Daily Bugle”

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Thursday, 14 May 2020

  1. Justice/ATF Requests Comments on Application for Tax-Exempt Transfer of Firearm and Registration to Special Occupational Taxpayer-ATF Form 3 (5320.3)  
  2. Justice/ATF Requests Comments on Application for National Firearms Examiner Academy-ATF Form 6330.1
  3. Justice/ATF Requests Comments on Revision of an Application for Restoration of Explosives Privileges-ATF Form 5400.29 
  1. Items Scheduled for Future Federal Register Edition
  2. Commerce/BIS: (No new postings)
  3. DHS/CBP Publishes Guidance on Section 301 Tranche 3 – $200B: 13th Round of Product Exclusions from China”
  4. State/DDTC: (No new postings)
  5. Treasury/OFAC Publishes Guidance to Address Illicit Shipping and Sanctions Evasion Practices
  1. Mirage: “Countries Certified as Not Cooperating Fully with U.S. Counterterrorism Efforts”
  2. Reuters: “U.S. Envoy Threatens to Trigger Return of U.N. Sanctions on Iran”
  1. Baker McKenzie: “DDTC Reduces Certain Registration Fees due to COVID-19 Pandemic”
  2. Husch Blackwell: ” USTR Announces New Section 301 Product Exclusions for List 4A”
  3. Thompson Hine: “New Trade Remedy Petitions Against Certain Imports from South Korea, Taiwan, Thailand and Vietnam”
  4. Tuttle Law: “Second Tariff Exclusion List for U.S. Imports Issued by China”
  1. FCC Academy Presents June Webinars: “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 
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EXIM ITEMS FROM TODAY’S FEDERAL REGISTER

(Source:
Federal Register, 14 May 2020) [Excerpts]
 
* 85 FR 28983: 60-day notice.
* AGENCY: Bureau of Alcohol, Tobacco, Firearms and Explosives, Department of Justice.
* ACTION: 60-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. The proposed information collection (IC) is also being published to obtain comments from the public and affected agencies.
* DATES: Comments are encouraged and will be accepted for 60 days until July 13, 2020.
* FOR FURTHER INFORMATION CONTACT: If you have additional comments, regarding the estimated public burden or associated response time, suggestions, or need a copy of the proposed information collection instrument with instructions, or additional information, please contact: James Chancey, National Firearms Act Division, either by mail at 244 Needy Road, Martinsburg, WV 25405, by email at nfaombcomments@atf.gov, or by telephone at 304-616-4500.

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

(Source:
Federal Register, 14 May 2020) [Excerpts]
 
* 85 FR 28984: 60-day notice.
* AGENCY: Bureau of Alcohol, Tobacco, Firearms and Explosives, Department of Justice.
* ACTION: 60-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. The proposed information collection (IC) is also being published to obtain comments from the public and affected agencies.
* DATES: Comments are encouraged and will be accepted for 60 days until July 13, 2020.
* FOR FURTHER INFORMATION CONTACT: If you have additional comments, regarding the estimated public burden or associated response time, suggestions, or need a copy of the proposed information collection instrument with instructions, or additional information, please contact: Sheila Hopkins, Office of Science and Technology, Laboratory Services, either by mail at National Laboratory Center, 6000 Ammendale Rd., Ammendale, MD 20705, by email at Sheila.hopkins@atf.gov, or by telephone at 202-648-6061.

 
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(Source:
Federal Register, 14 May 2020) [Excerpts]
 
* 85 FR 28982: 60-day notice.
* AGENCY: Bureau of Alcohol, Tobacco, Firearms and Explosives, Department of Justice.
* ACTION: 60-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. The proposed information collection (IC) OMB 1140-0076 (Application for Restoration of Explosives Privileges-ATF Form 5400.29), is being revised to include multiple material and formatting changes. The proposed IC is also being published to obtain comments from the public and affected agencies.
* DATES: Comments are encouraged and will be accepted for 60 days until July 13, 2020.
* FOR FURTHER INFORMATION CONTACT: If you have additional comments, regarding the estimated public burden or associated response time, suggestions, or need a copy of the proposed information collection instrument with instructions, or additional information, please contact: Laura O’Lena, NCETR/Explosives Enforcement and Training Division, Explosives Enforcement Branch, either by mail at 3750 Corporal Road, Huntsville, Alabama 35898, by email at EROD@atf.gov, or by telephone at 256-261-7640.

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

OGS OTHER GOVERNMENT SOURCES

* DHS/CBP: NOTICES; Revocation of Customs Brokers’ Licenses [Pub. Date: 15 May 2020] (
PDF)
* Commerce/BIS: NOTICES; Agency Information Collection Activities; Proposals, Submissions, and Approvals: Technology Letter of Explanation [Pub. Date: 15 May 2020] (
PDF)
* USTR: NOTICES; Product Exclusion Extensions: China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation [Pub. Date: 15 May 2020] (
PDF)

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

(Source: Commerce/BIS)

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

(Source:
DHS/CBP, 13 May 2020)
 
BACKGROUND

On May 8, 2020, the U.S. Trade Representative (USTR) published Federal Register (FR) Notice 85 FR 27489 announcing the decision to grant the 13th round of certain requested exclusions from the Section 301 duty related to goods from China ($200B Action – Tranche 3).
These product exclusions relate to the imposed additional duties announced in 83 FR 47974 on Chinese goods with an annual trade value of approximately $200 billion. The product exclusions announced in this notice retroactively apply as of the September 24, 2018 effective date of the $200 billion action (Tranche 3), and will extend through August 7, 2020.
The exclusions are available for any product that meets the description as set out in the Annex to 85 FR 27489, regardless of whether the importer filed an exclusion request. Further, the scope of each exclusion is governed by the scope of the Harmonized Tariff Schedule of the United States (HTSUS) 10-digit headings and product descriptions in the Annex; not by the product descriptions set out in any particular request for exclusion. For ease of reference, a link to the entire Federal Register Notice is embedded in this message.
The functionality for the acceptance of the 13th round of products of China excluded from Section 301 duties will be available in the Automated Commercial Environment (ACE) as of 7 am eastern standard time, May 14, 2020.
GUIDANCE

Instructions for importers, brokers and filers on submitting entries to CBP containing products granted exclusions by the USTR fr
om the Section 301 measures as set out in 85 FR 27489 are set out below.
  • In addition to reporting the regular Chapters 07, 11, 12, 21, 28, 29, 32, 34, 38, 39, 40, 42, 44, 48, 52, 68, 69, 70, 73, 82, 83, 84, 85, 87, 90 and 94 classifications of the HTSUS for the imported merchandise, importers shall report the HTSUS classification 9903.88.46 (Articles, the product of China, as provided for in U.S. note 20(yy) to this subchapter, each covered by an exclusion granted by the USTR for imported merchandise subject to the exclusion).
  • Importers shall not submit the corresponding Chapter 99 HTS number for the Section 301 duties when HTS 9903.88.46 is submitted.
ADDITIONAL INFORMATION

Imports which have been granted a product exclusion from the Section 301 measures, and which are not subject to the Section 301 duties, are not covered by the Foreign Trade Zone (FTZ) provisions of the Section 301 Federal Register notices, but instead are subject to the FTZ provisions in 19 CFR part 146.
Duty exclusions granted by the USTR are retroactive for imports on or after the initial effective date of September 24, 2018. To request a refund of Section 301 duties paid on previous imports of products granted duty exclusions by the USTR, importers may file a Post Summary Correction (PSC) if within the PSC filing timeframe. If the entry is beyond the PSC filing timeframe, importers may protest the liquidation if within the protest filing timeframe. The latest guidance on the process for submitting retroactive claims for product exclusions to CBP is found in CSMS 42566154.
Reminder: When importers, brokers, and/or filers are submitting an entry summary in which a heading or subheading in Chapter 99 is claimed on imported merchandise, refer them to CSMS 39587858 (Entry Summary Order of Reporting for Multiple HTS when 98 or 99 HTS are required).
For ease of reference, a summary of Section 301 duties and product exclusion notifications are attached.
Questions from the importing community concerning ACE entry rejections involving product exclusions should be referred to their CBP Client Representative. Questions related to Section 301 entry-filing requirements, please refer to CSMS message #42203908 (Information on Trade Remedy Questions and Resources)  

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

(Source:
Treasury/OFAC
, 14 May 2020)
 
The U.S. Departments of State and Treasury, and the U.S. Coast Guard,
 
issued a global advisory
 
to alert the maritime industry, and those active in the energy and metals sectors, to deceptive shipping practices used to evade sanctions, with a focus on Iran, North Korea, and Syria. The advisory includes a detailed set of best practices for private industry to consider adopting to mitigate exposure to sanctions risk. 
 

The advisory updates and expands upon previous advisories issued by the U.S. government. It is intended to provide actors that utilize the maritime industry for trade with information on and tools to counter current and emerging trends in sanctions evasion related to shipping and associated services.  The advisory highlights common deceptive shipping practices used with respect to countries like Iran, North Korea and Syria.

 
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COM NEWS

NWS_a19. Mirage: “Countries Certified as Not Cooperating Fully with U.S. Counterterrorism Efforts”

(Source: Mirage News, 14 May 2020) [Excerpts]
 
The Department of State notified Congress yesterday that Iran, North Korea, Syria, Venezuela, and Cuba were certified under Section 40A(a) of the Arms Export Control Act as “not cooperating fully” with U.S. counterterrorism efforts in 2019. This is the first year that Cuba has been certified as not fully cooperating since 2015. This certification prohibits the sale or license for export of defense articles and services and notifies the U.S. public and international community that these countries are not fully cooperating with U.S. counterterrorism efforts.
 
Iran:
 
In 2019, Iran continued to be the world’s largest state sponsor of terrorism, supporting Hizballah, Palestinian terrorist groups, and other terrorist groups operating throughout the Middle East. In 2019, Iran maintained its support for various Iraqi Shia terrorist groups, including Kata’ib Hizballah (KH), Harakat al-Nujaba (HAN), and Asa’ib Ahl al-Haq (AAH). Iran’s Islamic Revolutionary Guard Corps (IRGC), a designated Foreign Terrorist Organization, has been directly involved in terrorist plotting and has killed U.S. citizens. The IRGC – most prominently through its Qods Force – has the greatest role among Iranian regime actors in directing and carrying out a global terrorist campaign.
 
North Korea:
 
In 2019, four Japanese individuals who participated in the 1970 hijacking of a Japan Airline flight continued to live in the DPRK. The Japanese government also continued to seek a full account of the fate of 12 Japanese nationals believed to have been abducted by DPRK state entities in the 1970s and 1980s.
 
Syria:
 
Syria has continued its political and military support for terrorist groups, including the provision of weapons and political support to Hizballah. The Assad regime’s relationship with Hizballah and Iran grew stronger in 2019 as the regime became more reliant on external actors to fight opponents and secure areas. The IRGC and IRGC-backed militias remain present and active in the country with the permission of President Bashar al-Assad.
 
Venezuela:
 
In 2019, Maduro and members of his former regime in Venezuela continued to provide permissive environments for terrorists in the region to maintain a presence. While Maduro was not the recognized President of Venezuela during this period, his control within Venezuela effectively precluded cooperation with the United States on counterterrorism efforts. Individuals linked to Revolutionary Armed Forces of Colombia (FARC) dissidents (who remain committed to terrorism notwithstanding the peace accord) and the National Liberation Army (ELN) were present in the country. The U.S. Department of Justice has criminally charged Maduro and certain other former regime members with running a narco-terrorism partnership with the FARC for the past 20 years.
 
Cuba:
 
Members of the ELN who travelled to Havana to conduct peace talks with the Colombian government in 2017 remained in Cuba in 2019. Citing peace negotiation protocols, Cuba refused Colombia’s request to extradite ten ELN leaders living in Havana after the group claimed responsibility for the January 2019 bombing of a Bogota police academy that killed 22 people and injured more than 60 others. As the United States maintains an enduring security partnership with Colombia and shares with Colombia the important counterterrorism objective of combating organizations like the ELN, Cuba’s refusal to productively engage with the Colombian government demonstrates that it is not cooperating with U.S. work to support Colombia’s efforts to secure a just and lasting peace, security, and opportunity for its people. Cuba harbors several U.S. fugitives from justice wanted on charges of political violence, many of whom have resided in Cuba for decades. For example, the Cuban regime has refused to return Joanne Chesimard, who was convicted of executing New Jersey State Trooper Werner Foerster in 1973. …

NWS_a210. Reuters: “U.S. Envoy Threatens to Trigger Return of U.N. Sanctions on Iran”

(Source: Reuters, 14 May 2020) [Excerpts]
 
   The United States publicly threatened on Wednesday to trigger a return of all United Nations sanctions on Iran if the U.N. Security Council does not extend an arms embargo on Tehran that is due to expire in October under the Iran nuclear deal.
   U.S. special envoy for Iran, Brian Hook, confirmed the strategy two weeks after a U.S. official, speaking on condition anonymity, said the United States had told Britain, France and Germany of its plan. …
   A resolution needs nine yes votes and no vetoes by Russia, China, the United States, France or Britain to be adopted by the 15-member Security Council. Russia has already signaled it is opposed to extending the arms embargo.
Diplomats say the United States would likely face a tough, messy battle if it tries to spark a return of sanctions, though it was not immediately clear how or if a Security Council member could stop such a move.
   Iran has breached several central limits of the deal, including on its stock of enriched uranium, in response to the U.S. withdrawal and Washington’s reimposition of sanctions that have slashed Iran’s oil exports. Britain, France and Germany are trying to save the deal, but have made little progress.

COM COMMENTARY

 
* Principal Author: Alison J. Stafford Powell, Esq., 1-650-856-5531, Baker McKenzie LLP
 
   As of May 1, the State Department has made a temporary change in the Tier I, Tier II, and new registrant payment guidelines on the Directorate of Defense Trade Controls (“DDTC“) website to reflect certain reduced registration fees to mitigate the economic impact of the COVID-19 pandemic. 
   The DDTC is reducing fees for Tier I and Tier II registrants to $500 (reduced from $2,250 and $2,750, respectively) for registrations whose original expiration date is between May 31, 2020 and April 30, 2021. DDTC is also reducing registration fees to $500 (reduced from $2,250) for new applicants who submit their registration application between May 1, 2020 and April 30, 2021.  The fee structure for Tier III registrants remains unchanged.  
   These reductions will apply through April 30, 2021, unless modified by a subsequent notification in the Federal Register. The reduction in these fees comes shortly after the DDTC issued measures, including some related to compliance and licensing, in response to the COVID-19 pandemic. Our blog post on those recent changes can be found here.  The DDTC estimates that these registration fee reductions will save regulated industry over $20 million over the coming year.

 
* Principal Author: 
Beau Jackson
, Esq., 1-816-983-8202, 
Husch Blackwell LLP
 
On May 13, 2020, the United States Trade Representative (“USTR”) issued new product exclusions pertaining to the 7.5% Section 301 List 4A Tariffs.  The new list of exclusions includes three 10-digit HTS subheadings and five specially prepared product descriptions that together cover 27 separate exclusion requests.  The full list of excluded products is available here. According to the USTR, the product exclusions apply retroactively to entries going back to September 1, 2019 and remain in effect until September 1, 2020.  The products affected include disposable hospital wristbands, plastic pill crushers, and Bluetooth tracking devices. In addition to the notice of exclusions for List 4A, USTR also published notices announcing technical amendments to previously granted List 1 and List 2 exclusions.

(Source: 
Trump and Trade, 13 May 2020)
 
* Principal Author: Scott E. Diamond, Esq., 1-202-263-4197, Thompson Hine
 
   On May 13, 2020, the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union, AFL-CIO, CLC (USW), a union on behalf of the domestic industry employees, filed petitions with the U.S. Department of Commerce (Commerce) and the U.S. International Trade Commission (ITC) seeking antidumping (AD) duties on imports of passenger vehicle and light truck (PVLT) tires from South Korea, Taiwan, Thailand and Vietnam, and countervailing duties (CVD) on imports of PVLT tires from Vietnam.  According to the petitions, PVLT tires from South Korea, Taiwan, Thailand and Vietnam are being sold at less than fair value in the United States and PVLT tires from Vietnam benefit from countervailable subsidies, causing material injury and threatening further material injury to the U.S. industry if trade remedy duties are not imposed.
PVLT tires are new pneumatic tires, of rubber, with a passenger vehicle or light truck size designation that may be tube-type, tubeless, radial, or non-radial and may be intended for sale to original equipment manufacturers or the replacement market.  Please contact us for a copy of the proposed scope of these investigations.
   USW filed AD and CVD petitions on PVLT tires from China in 2014, resulting in Commerce’s imposition of AD and CVD orders in 2015 that remain in place today.  PVLT tires from China are also subject to an additional 25 percent China Section 301 duty the Trump administration imposed.  In its CVD petition, the USW alleges that the Vietnamese PVLT tire producers are benefiting from approximately 19 subsidy programs.  In its AD petitions, USW alleges that the following antidumping duties should be imposed:
      (1) 21 to 147 percent on subject imports from Taiwan, depending on the
      calculation methodologies;
      (2) 106.4 to 217.5 percent on subject imports from Thailand;
      (3) 42.95 to 195.20 percent on subject imports from South Korea; and
      (4) 14.73 to 33.06 percent on subject imports from Vietnam.
   Commerce will determine by June 3, 2020, whether to formally initiate the antidumping investigation and, if Commerce does, the ITC will decide 25 days after that whether there is a reasonable indication of existing material injury or threat of material injury to the domestic PVLT tires industry and whether the investigation should continue or terminate.

 
* Author: George R. Tuttle III, Esq., 1-415-254-5986, Tuttle Law
 
   On May 12, 2020 the Chinese State Council Customs Tariff Commission issued a second tariff exclusion list for U.S. imports. The second tariff exclusions will be effective from May 19, 2020 to May 18, 2021. Applications for refunds should be made within 6 months of the announcement. Click here to view the original announcement in Chinese.
 
An English version of the tariffs subject to this exclusion can be  downloaded here. This list in the original Chinese can be accessed here.
   For U.S. items not included in the first or second list of exclusions, importers may apply for a market-based procurement exclusion in accordance with the “Announcement of the State Council’s Tariff Commission on Carrying out the Market-Based Procurement and Exclusion of Products Subject to Customs Addition to the United States” (Tax Commission Announcement (2020) No. 2.

TE EX/IM TRAINING EVENTS & CONFERENCES

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EN EDITOR’S NOTES

EN_a116. Bartlett’s Unfamiliar Quotations

(Source: Editor)


Robert Owen (14 May 1771 – 17 Nov 1858; a Welsh textile manufacturer, philanthropist and social reformer, was one founder of utopian socialism and the cooperative movement. Owen traveled to America and invested most of his fortune in a failed socialist community at New Harmony, Indiana.)
 – “Never argue; repeat your assertion.” 

*
B. C. Forbes (Bertie Charles Forbes; 14 May 1880 – 6 May 1954; was a Scottish-born American financial journalist and author who founded Forbes magazine.)
  
– “History has demonstrated that the most notable winners usually encountered heartbreaking obstacles before they triumphed. They won because they refused to become discouraged by their defeats.” 
  – “Better to be occasionally cheated than perpetually suspicious.”

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

 

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.

28 Apr 2020:
85 FR 23470
: Elimination of License Exception Civil End Users (CIV).
 

 

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. 
6 May 2020: 85 FR 26847, Notice (not an amendment) temporarily reducing the registration fee schedule in ITAR 122.3 until April 30, 2021. 

 

 
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), Revision 8.

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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