20-0602 Tuesday “Daily Bugle”

20-0602 Tuesday “Daily Bugle”

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Tuesday, 02 June 2020

No Ιtems of Ιnterest Νoted Τoday
  1. Items Scheduled for Future Federal Register Edition
  2. Commerce/BIS: “RPTAC Quarterly Meeting Held Today”
  3. Commerce/BIS/OEE Renews Temporary Denial Order Against Mahan Airways and Related Parties
  4. State/DDTC: (No new postings)
  5. Treasury/OFAC Targets Maritime Entities for Supporting Illegitimate Maduro Regime in the Venezuela Oil Trade
  6. EU Council: “High Representative on Behalf of the EU on Hong Kong”
  1. EU Sanctions: “UNSC renews South Sudan Arms Embargo & Sanctions for 1 Year”
  2. WORLDecr: “Hong Kong ‘no longer autonomous from China’ – Pompeo”
  1. Baker McKenzie: “EU – COVID-19: Commission Lifts Export Authorisation Requirements on PPE”
  2. Mayer Brown: “The UK Global Tariff – What Will Really Change for Non-EU Exporters?”
  3. Nicholas Turner: “Sanctions Top-5 for the Week Ending 29 May”
  4. Thompson Hine: “Changing Hong Kong’s Special Trade Status? State Department Refuses to Certify Hong Kong’s Autonomy”
  1. Alan Levesque Joins Ankura
  1. ECTI Presents: Foods, Supplements, Cosmetics, Devices…Oh My: How the FDA Regulates More Than You May Think! Webinar; 24 Jun
  2. 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 
  4. Submit Your Job Opening and View All Job Openings 
  5. Submit Your Event and View All Approaching Events 

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(No items of interest today)

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* Commerce/BIS: RULES; Expansion of Export, Reexport, and Transfer (in-Country) Controls for Military End Use or Military End Users: The People’s Republic of China, Russia, or Venezuela (Pub. Date: 3 Jun 2020) (PDF)
* Commerce/BIS: NOTICES; Request for Comments: Section 232 National Security Investigation of Imports of Vanadium (Pub. Date: 3 Jun 2020) (PDF)
* USTR: NOTICES; Agency Information Collection Activities; Proposals, Submissions, and Approvals: Extension of Particular Exclusions Granted Under the $200 Billion Action Pursuant to Section 301: China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation (Pub. Date: 3 Jun 2020) (PDF)
* USTR: NOTICES; Agency Information Collection Activities; Proposals, Submissions, and Approvals: Extension of Particular Exclusions Granted Under the September 2019 Product Exclusion Notice from the $34 Billion Action Pursuant to Section 301: China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation (Pub. Date: 3 Jun 2020) (PDF)

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OGS_a22. Commerce/BIS: “RPTAC Quarterly Meeting Held Today”

(Source: Editor)

The Commerce Department, Bureau of Industry & Security,
Regulations & Procedures Technical Advisory Committee (RPTAC), held its quarterly meeting, for the first time today online.  Two sessions were held; a morning public session and an afternoon private session (for members only). Among the topics discussed in the morning public session were:
  • Retirement of Keith Melchers, HP, Inc., as RPTAC chair.  Today was the last meeting chaired by Keith Melchers.  Keith was thanked for his outstanding service to RPTAC and BIS over many years.  The afternoon private session will recommend appointment of a new chairman.
  • The BIS Annual Update Conference previously scheduled to meet June 29 to July 1, 2020, in Washington, DC, has been postponed to 2021, with the specific dates and location to be announced later.
  • RPTAC discussed the recently released BIS rules (previously published on BIS website and in the Daily Bugle).
  • Commerce/Census will publish a proposed rule for public comments on a revised rule concerning Electronic Export Information (EEI) reports for exports to Puerto Rico.
  • Commerce/Census and BIS expect to publish proposed rules for public comments on major changes to the rules for Routed Exports this calendar year, but no expected publication date is currently available.
  • The next RPTAC meeting is scheduled for Tuesday, 15 September 2020.

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* Case Number: E2626
* Date of Order: 29 May 2020

4. State/DDTC: (No new postings)

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, 2 Jun 2020)
  Today, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated four companies for operating in the oil sector of the Venezuelan economy. Additionally, OFAC identified four vessels as blocked property. The United States reiterates that the exploitation of Venezuela’s oil assets for the benefit of the illegitimate regime of President Nicolas Maduro is unacceptable, and those that facilitate such activity risk losing access to the U.S. financial system.
  Today’s action, pursuant to E.O. 13850, as amended, further targets the following entities in Venezuela’s oil sector that continue to provide financial resources to the illegitimate regime of President Maduro:
  • AFRANAV MARITIME LTD is based in the Marshall Islands and is the registered owner of the vessel ATHENS VOYAGER.
  • ATHENS VOYAGER is a Panamanian flagged crude oil tanker (IMO: 9337391) that has continued to lift oil cargoes from Venezuelan ports as recently as mid-February 2020.
  • SEACOMBER LTD is based in Greece and is the registered owner of the vessel CHIOS I.
  • CHIOS I is a Maltese flagged crude oil tanker (IMO: 9792187) that has continued to lift oil cargoes from Venezuelan ports as recently as mid to late February 2020.
  • ADAMANT MARITIME LTD is based in the Marshall Islands and is the registered owner of the vessel SEAHERO.
  • SEAHERO is a Bahamian flagged crude oil tanker (IMO: 9315642) that has continued to lift oil cargoes from Venezuelan ports as recently as late February 2020.
  • SANIBEL SHIPTRADE LTD is based in the Marshall Islands and is the registered owner of the vessel VOYAGER I.
  • VOYAGER I is a Marshall Islands flagged crude oil tanker (IMO 9233789) that has continued to lift oil cargoes from Venezuelan ports as recently as late April 2020.

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6. EU Council: “High Representative on Behalf of the EU on Hong Kong”

   The EU expresses its grave concern at the steps taken by China on 28 May, which are not in conformity with its international commitments (Sino-British Joint Declaration of 1984) and the Hong Kong Basic Law. This risks to seriously undermine the “One Country Two Systems” principle and the high degree of autonomy of the Special Administrative Region of Hong Kong.
   EU relations with China are based on mutual respect and trust. This decision further calls into question China’s will to uphold its international commitments. We will raise the issue in our continuing dialogue with China. 

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NWS_a17. EU Sanctions: “UNSC renews South Sudan Arms Embargo & Sanctions for 1 Year”

(Source: EU Sanctions, 1 Jun 2020) [Excerpts]
  The United Nations Security Council has renewed the arms embargo on South Sudan and targeted sanctions against individuals said to be blocking peace in South Sudan until 31 May 2021. The mandate of the Panel of Experts overseeing the sanctions regime has also been continued until 1 July 2021.
  The press release says the UNSC have concerns over the “continued fighting in South Sudan”, but are prepared to consider adjusting the regime following a mid-term review in December 2020 of the implementation of the 2018 Revitalised Agreement (which provided for the cessation of hostilities, protection of human rights, and reform of security and justice sectors).

8. WORLDecr: “Hong Kong ‘No longer autonomous from China’ – Pompeo”

(Source: WORLDecr, 28 May 2020) [Excerpts]
   Mike Pompeo, US Secretary of State, has said that, following the Chinese government’s announcement of its intention to “unilaterally and arbitrarily impose national security legislation on Hong Kong”, he has certified to Congress that Hong Kong does not continue to warrant treatment under United States laws in the same manner as U.S. laws were applied to Hong Kong before July 1997.
   “No reasonable person can assert today that Hong Kong maintains a high degree of autonomy from China, given facts on the ground,” he said.
US national security advisor Robert O’Brien recently warned that, in the event of the Secretary of State so certifying, “there will be sanctions that will be imposed on Hong Kong and China.”
   O’Brien added that the Chinese law would trigger provisions in the Hong Kong Human Rights and Democracy Act, which was passed by Congress and approved by President Donald Trump last year.
   The US official predicted that, if that were the case, Hong Kong would be unlikely to continue to remain a hub for global finance, predicting that international finance companies would leave. …
   China has threatened countermeasures against the US if it goes ahead with sanctions over the proposed law. “If the US insists on hurting China’s interests, China will have to take every necessary measure to counter and oppose this,” said foreign ministry spokesman Zhao Lijian.


COM_a19. Baker McKenzie: “EU – COVID-19: Commission Lifts Export Authorisation Requirements on PPE”

(Source: International Trade Compliance Update, 29 May 2020)
* Author: 
Sunny Mann
, Esq., 44-20-7919-1397, 
Baker McKenzie LLP


   The EC announced on 26 May that the export authorisation scheme for PPE ceased to apply as of Tuesday, 26 May 2020. The EC has decided not to extend the measure, initially introduced on 15 March to ensure adequacy of supply of such products in the EU in times of the COVID-19 pandemic. This measure was initially extended for another month on 26 April, implementing additional reporting requirements and limiting the scope of the scheme to face masks.
   According to the Commission, the scheme has served its purpose as a “temporary measure” and there have been no requests to prolong the scheme. The EC claims that the authorisation regime “struck the right balance between delivering on public health needs and securing open trade flows”. Approximately 1,300 export authorisations had been requested under the 26 April scheme with a 95% success rate. Also, since 26 April, “more than 13 million protective masks, around 1 million protective garments and more than 350,000 protective masks and visors have been exported from the EU”.

Medium, 2 Jun 2020) [Excerpts]
* Author: Nicholas Turner, Esq., 852-5998-7559, Steptoe & Johnson HK 
Here are five things that happened this week in the world of economic sanctions that I think you should know about:
   (1) The big news: Donald Trump
held a news conference on Friday
to announce his administration would “begin the process” of revoking Hong Kong’s separate status from mainland China under US laws. This could include imposing heightened export controls under the Export Administration Regulations (EAR) and other steps. Additionally, the United States is expected to impose sanctions against Chinese and Hong Kong officials responsible for the erosion of Hong Kong’s autonomy. (For more on this issue, see my team’s Client Advisory.)
   (2) The US House of Representatives
voted 413-1 to pass the Uyghur Human Rights Policy Act of 2020. The bill – now awaiting the president’s signature – calls for sanctions against foreign persons, including government officials, determined to be responsible for human rights abuses in the Xinjiang Uighur Autonomous Region (XUAR).
   (3) The US Department of Justice (DOJ)
unsealed an indictment
against 28 North Korean and 5 Chinese nationals for laundering more than USD 2.5 billion through the global financial system on behalf of North Korea’s Foreign Trade Bank (FTB). The individuals are charged with operating an extensive network of front companies in Russia, Kuwait, Thailand, and other countries to procure goods and make payments related to North Korea. (The indictment is available here.)
   (4) The US State Department
announced it would not renew secondary sanctions waivers
for companies providing services to Iran’s nuclear program under the Joint Comprehensive Plan of Action (JCPOA). The companies will have 60 days to wind down their activities,
according to a press statement. At the same time, the State Department
announced sanctions on two individuals in the Atomic Energy Organization of Iran.
   (5) Justine Walker, the Global Head of Sanctions and Risk for the Association of Certified Anti-Money Laundering Specialists (ACAMS), published a long-awaited and really excellent paper entitled “Risk Management Principles Guide for Sending Humanitarian Funds into Syria and Similar High-Risk Jurisdictions,” with the support of the European Commission, Swiss Agency for Development and Cooperation, UK Department for International Development, the Graduate Institute of Geneva, and the World Bank.
   Friday’s White House
news conference was short on specifics about how US laws might change in respect of Hong Kong. Anything at this point is speculation. Of all of the topics mentioned, sanctions is the easiest to implement in the short term. What are the options? For blocking sanctions we have:
Section 7 of the Hong Kong Human Rights and Democracy Act of 2019, the
Global Magnitsky program, and the
International Emergency Economic Powers Act (IEEPA). Visa bans are authorized under
Section 7031(c) of the FY 2019 Department of State, Foreign Operations, and Related Programs Appropriations Act
(or as we like to call it, FORPA2). There is also the
Hong Kong Autonomy Act
pending in the Senate, which, if passed, would authorize blocking sanctions as well as menu-based secondary sanctions against financial institutions. Stay tuned.
  Dr. Walker’s report
contains a lot of helpful information about the humanitarian landscape in Syria and practical advice for handling transactions under various US, UN, and EU regulatory licenses and exemptions. It’s a must-read for anyone with an interest in humanitarian aid for sanctioned territories. “
The creation of transparent and safe humanitarian payment corridors into highly complex risk environments requires collective vision
,” Dr. Walker told me by email. “
These principles have stemmed from an extensive 5 year process involving many banks, humanitarian organisations, international bodies and government officials
.” (The report is available here.)

  Hong Kong currently enjoys special trade status with the United States in comparison to China, as a result of China’s agreement in 1997 to allow Hong Kong continued autonomy in many economic and administrative ways.  As recent press articles have indicated, the People’s Republic of China (PRC) has increasingly cracked down on the Hong Kong protests which began in June 2019 over – among other things – judicial independence, limits on democracy, and increasingly harsh police actions.  Consequently, the United States has pressed China to deescalate the situation and abide by its commitments to maintain Hong Kong as a special autonomous administrative region.  The situation has instead only intensified, resulting in significant actions last week by China, the United States and other world leaders.
  In November 2019, President Trump signed the Hong Kong Human Rights and Democracy Act of 2019, which requires the Secretary of State to make an annual certification about whether Hong Kong continues to merit special treatment under U.S. law.  On May 27,  Secretary of State Mike Pompeo announced that he would certify to Congress that Hong Kong no longer warrants such treatment.  The Secretary stated that, “No reasonable person can assert today that Hong Kong maintains a high degree of autonomy from China, given facts on the ground.”
  On May 28, 2020, the governments of the United States, Australia, Canada, and the United Kingdom released a formal statement noting “deep concern regarding Beijing’s decision to impose a national security law in Hong Kong,” which jeopardizes Hong Kong’s stability and prosperity.
On May 29, 2020, in remarks to the press, President Trump cited the PRC’s pattern of conduct and announced several measures, including:
  • Beginning the process of eliminating policy exemptions that give Hong Kong different and special treatment;
  • Issuing a proclamation to better secure vital university research and to suspend the entry of certain foreign nationals from China;
  • Taking necessary steps to sanction PRC and Hong Kong officials directly or indirectly involved in eroding Hong Kong’s autonomy; and,
  • Revising the State Department’s travel advisory for Hong Kong to reflect the increased danger of surveillance by the Chinese state security apparatus.
  In response, the Chinese Embassy in the United States issued a statement noting that it would “take necessary countermeasures in response” to any foreign meddling in Hong Kong affairs.
These developments may have a significant impact on companies that engage in business with Hong Kong.  Although these measures have not yet been taken, companies should be aware that the United States may implement the following measures:
  • Removing Hong Kong’s special customs status, and making imports of Hong Kong origin subject to the same duties as China, which may also lead to the imposition of Section 301 tariffs on products originating in Hong Kong that have been exempt so far;
  • Export controls currently in place for China may be extended to Hong Kong;
  • Further sanctions against persons determined to be facilitating the PRC actions in Hong Kong; and/or
  • Further visa and immigration restrictions on individuals from the PRC or Hong Kong.


Alan Levesque, formerly Chief Ethics & Compliance Officer at Raytheon, has joined Ankura in their Washington, DC office. Contact Alan at 1-202-797-1111 or

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Ashleigh Foor
* What: 
Foods, Supplements, Cosmetics, Devices…Oh My: How the FDA Regulates More Than You May Think!
* When: 24 Jun; 1:00 p.m. (EDT)
* Where: Webinar
* Sponsor: Export Compliance Training Institute (ECTI)
* ECTI Speaker: Shelly Garg, Attorney

* Register:
or contact
Ashleigh Foor
, 1-540-433-3977 

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EN_a116. Bartlett’s Unfamiliar Quotations

(Source: Editor)

* Martha Washington (2 Jun 1731 – 22 May 1802; was the wife of George Washington, the first President of the United States.  Although the title was not coined until after her death, Martha Washington served as the inaugural First Lady of the United States.)
  – “I am determined to be cheerful and happy in whatever situation I may find myself. For I have learned that the greater part of our misery or unhappiness is determined not by our circumstance but by our disposition.” 
* Marquis de Sade (Donatien Alphonse François, Marquis de Sade; 2 Jun 1740 – 2 Dec 1814; was a French nobleman, revolutionary politician, philosopher, writer, and rapist, famous for his libertine sexuality. His works include novels, short stories, plays, dialogues, and political tracts. Sade is best known for his erotic works depicting sexual fantasies with an emphasis on violence. He became infamous for his numerous sexual crimes and abuse against young women, men,
and children.  The words sadism and sadist are derived from his name.

  – “‘Sex’ is as important as eating or drinking and we ought to allow the one appetite to be satisfied with as little restraint or false modesty as the other.”

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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.
Latest Update 
: 19 CFR, Ch. 1, Pts. 0-199.
5 Apr 2019:84 FR 13499: Civil Monetary Penalty Adjustments for Inflation.


19 May 2020: 85 FR 29849: Amendments to General Prohibition Three (Foreign-Produced Direct Product Rule) and the Entity List.   
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. 

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.)  

23 Feb 2015: 80 FR 9359, comprehensive updating of regulations, updates the activities and technologies subject to specific authorization and DOE reporting requirements. 

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.

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. 


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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