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20-0604 Thursday ” Daily Bugle “

20-0604 Thursday “Daily Bugle”

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Thursday, 04 June 2020

  1. Commerce/BIS Renews Order Temporarily Denying Export Privileges
  1. Items Scheduled for Future Federal Register Edition
  2. Commerce/BIS: (No new postings)
  3. DHS/CBP: “USMCA HTS Changes Available for CERT Testing”
  4. State/DDTC Announces Semi-annual Virtual Seminar; 1 Jul
  5. Treasury/OFAC: “Publication of Syria-related Sanctions Regulations”
  1. Reuters: “Trump Not Considering Sanctions on China’s Xi Over Hong Kong”
  1. Akin Gump: “U.S. Sanctions Compliance Guidance Released for the Global Maritime, Energy, and Metals Sectors”
  2. Arent Fox: “Reference Guide — Worldwide Export Controls on Face Masks and Other PPE”
  3. Baker McKenzie: “Russia Likely to Adopt New Sanctions”
  4. Husch Blackwell: “May 2020 Trade Law Update”
  5. Sidley Austin: “New Files for USMCA Uniform Regulations”
  1. ECTI Presents: UK/EU Export Controls and Sanctions 101 Webinar; 30 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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EXIM ITEMS FROM TODAY’S FEDERAL REGISTER

 
* 85 FR 34405: Notice
* Respondent
s
(1)
MAHAN AIRWAYS
of
Tehran, Iran
(2)
PEJMAN MAHMOOD of Dubai, United Arab Emirates
(3) MAHMOUD AMINI of Dubai, United Arab Emirates;
(4) KERMAN AVIATION of Paris, France;
(5) SIRJANCO TRADING LLC of Dubai, United Arab Emirates;
(6) MAHAN AIR GENERAL TRADING LLC of Dubai, United Arab Emirates;
(7) MEHDI BAHRAMI, Mahan Airways of Istanbul, Turkey;
(8) AL NASER AIRLINES of Baghdad, Iraq, and Dubai, United Arab Emirates, and Amman, Jordan;
(8) ALI ABDULLAH ALHAY of Baghdad, Iraq, and Qatif, Saudi Arabia;
(9) BAHAR SAFWA GENERAL TRADING of Dubai, United Arab Emirates;
(10) SKY BLUE BIRD GROUP of Ras Al Khaimah Trade Zone, United Arab Emirates;
(11) ISSAM SHAMMOUT of Damascus, Syria, and Beirut, Lebanon, and London, United Kingdom, and Istanbul, Turkey.
* Charges:
The above entities and individuals
have acted in violation of the Regulations and the TDO; that such violations have been significant, deliberate and covert; and that given the foregoing and the nature of the matters under investigation, there is a likelihood of imminent violations
.
* Penalty: The above may not, directly or indirectly, participate in any way in any transaction involving any commodity, software or technology (hereinafter collectively referred to as “item”) exported or to be exported from the United States that is subject to the Export Administration Regulations (“EAR”), or in any other activity subject to the EAR.
* Debarred: 
Denied export privileges for 180 days after the date of conviction.
* Date of Order: 
May 29, 2020.

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

OGS OTHER GOVERNMENT SOURCES

(Sou
rce:
Federal Register
)
 
* Treasury/OFAC: Rules; Syria-related Sanctions Regulations [Pub. Date: 5 Jun 2020] (
PDF)
 

* USTR: Notices; Initiation of Section 301 Investigations of Digital Services Taxes [Pub. Date: 5 Jun 2020] (
PDF
)
 

* DHS/CBP: Proposed Rules; Elimination of Customs Broker District Permit Fee [Pub. Date: 5 Jun 2020] (PDF)
 
* DHS/CBP: Proposed Rules; Modernization of the Customs Brokers Regulations [Pub. Date: 5 Jun 2020] (PDF)

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

OGS_a23. Commerce/BIS: (No new postings)

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

(Source:
DHS/CBP
, 4 Jun 2020)
 
  The following HTS records, identified as duty free for USMCA, have been modified in the Ace Certification environment for Trade testing. SPI “S” has been added to the following records:
0104200000, 0202200400, 0302230000, 0406201500, 0510002000, 0604906000, 0705210000, 0804104000, 0910120000, 1006100000, 1104120000, 1509902000, 2005200020, 3918901000, 4202126000, 5801271000, 6104132000, 7318240000, 8451400000, 9507204000

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

(Source:
State/DDTC
, 4 Jun 2020
)
 
  DDTC is happy to announce a new date and format for the semi-annual in-house seminar, which was postponed from April due to COVID-19 restrictions. We will now host the seminar as a virtual event on Wednesday, July 1, 2020. Please register your interest in attending this free training event by emailing
DDTCInHouseSeminars@state.gov
before Wednesday, June 24. Access links and connection instructions will be sent approximately three days prior to the event. 

   For more information on the In-House Seminar please visit the DDTC Outreach Programs page.

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

(Source:
Treasury/OFAC
, 4 Jun 2020)
 

  
The Office of Foreign Assets Control (OFAC) is
issuing regulations
to implement Executive Order 13894 of October 14, 2019 (“Blocking Property and Suspending Entry of Certain Persons Contributing to the Situation in Syria”).  These regulations are currently available for public inspection with the Federal Register and will take effect upon publication in the Federal Register on June 5, 2020.  OFAC intends to supplement these regulations with a more comprehensive set of regulations, which may include additional interpretive and definitional guidance, general licenses, and statements of licensing policy.   

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

COM NEWS

NWS_a17. Reuters: “Trump Not Considering Sanctions on China’s Xi Over Hong Kong”

(Source: Reuters, 4 Jun 2020) [Excerpts]
 
U.S. President Donald Trump said on Wednesday he was not considering placing sanctions on Chinese President Xi Jinping personally over Beijing’s push to impose national security legislation in Hong Kong.
 
Trump on Friday ordered his administration to begin the process of eliminating special U.S. treatment for Hong Kong to punish China and said Washington would also impose sanctions on individuals seen as responsible for “smothering – absolutely smothering – Hong Kong’s freedom.” “I haven’t thought of that,” Trump said on Wednesday when asked in an interview on Newsmax TV whether he was thinking about imposing sanctions on Xi. Asked about his relationship with Xi, Trump said: “Haven’t spoken to him in a while. It was very good.”  
 

He praised a trade agreement the two countries signed in January, but criticized Beijing for the novel coronavirus pandemic, which began in China. “China should have never let it happen,” Trump said.
 
China said on Monday U.S. attempts to harm Chinese interests would be met with firm countermeasures.

COM COMMENTARY

COM_a18. Akin Gump: “U.S. Sanctions Compliance Guidance Released for the Global Maritime, Energy, and Metals Sectors”
(Source: Akin Gump, 3 Jun 2020) [Excerpts] 
 
Key Points
  • On May 14, 2020, OFAC, the Department of State and the U.S. Coast Guard jointly released guidance for persons involved in the maritime industry regarding common deceptive shipping practices used to subvert U.S. and United Nations sanctions programs targeting Iran, North Korea and Syria.
  • The guidance highlights certain deceptive practices employed in maritime activity that could signal sanctions evasion.
  • The guidance also contains specific measures that the maritime industry and energy and metals sectors can take to tailor their sanctions compliance programs to avoid sanctions violations or otherwise supporting illicit shipping activities.
The Guidance
: On May 14, 2020, the Department of the Treasury’s Office of Foreign Assets Control (OFAC), the Department of State and the U.S. Coast Guard jointly released guidance (the “Guidance”) regarding common deceptive shipping practices in order to aid persons involved in the maritime industry, and energy and metals sectors, in tailoring their due diligence and sanctions compliance policies and procedures. The Guidance is particularly targeted towards ship owners, managers, operators, brokers, ship chandlers, flag registries, port operators, shipping companies, freight forwarders, classification service providers, commodity traders, insurance companies and financial institutions. The shipping industry continues to present particularly challenging issues associated with U.S. sanctions compliance, including the involvement of numerous parties in particular voyages all with different, yet overlapping risks.
   The Guidance continues a further and concerted effort by OFAC to focus in particular on the shipping industry and builds on prior advisories that it has issued directed at the shipping industry, including one issued on September 4, 2019, entitled “Sanctions Risks Related to Shipping Petroleum and Petroleum Products from Iran” that also identified specific deceptive shipping practices and risk mitigation measures for the industry. As the U.S. Government’s latest enforcement actions on June 2, 2020 demonstrate, OFAC sanctions enforcement attention is squarely focused on the international shipping industry. 
   The Guidance also provides important insights for companies operating in the maritime sector regarding the criteria that OFAC applies when evaluating an effective sanctions compliance program for such companies.
   Below we summarize key points from the Guidance that are relevant for the shipping sector, including a summary of deceptive practices highlighted in the Guidance, a summary of general practices for effective identification of potential sanctions evasion and summaries of guidance for certain actors in the maritime industry and country-specific guidance. … [Read remainder of article HERE.] 

(Source:
Arent Fox, 3 Jun 2020)

 
* Principal Author: 
Kay C. Georgi
, Esq., 1-202-857-6293, 
Arent Fox LLP
 
Today, June 3, we updated the Reference Guide most recently circulated on May 11th with a listing of governments that have (and have not) imposed export controls on a variety of medical (and industrial) PPE.
 
 
New Countries

We have added new information from Greece, Peru, and Romania.
 
New and Modified Restrictions

   Since we last updated this Alert, no new countries have joined the list of states restricting the export of PPE. However, we have edited the chart to reflect changed or modified restrictions in Armenia, Belarus, the Eurasian Economic Union, the European Union, Georgia, Hong Kong, Indonesia, Kazakhstan, Kyrgyzstan, Moldova, Morocco, Russia, Serbia, Taiwan, and Ukraine.
   Continuing a trend we have reported on previously, impositions of new controls on PPE exports have largely halted. As countries begin to meet targets for national stockpiles and international mask demand skyrockets, some countries have loosened restrictions, especially on the export of non-surgical or disposable masks. Notably, Taiwan lifted its restrictions on the export of masks on June 1. We are also closely monitoring developments in Pakistan, where senior officials have taken to social media to announce a possible end to the PPE export ban within the next week.
   Exporters should also note that the European Union has lifted its restrictions on exports of PPE, and that the Eurasian Economic Union has significantly eased its restrictions on exports of PPE. It remains to be seen whether or not member states within these blocs which imposed more stringent measures will follow suit.


 
* Principal Author: 
Vladimir Efremov
, 7-495-787-0715, 
Baker McKenzie
 
   On May 28, 2020, the Federation Council of Russia received the Draft Bill proposing additional Russian countersanctions (“
Draft
“) that was approved by Russian State Duma in the second and the third readings on May 27, 2020.  This Draft passed the first reading in Russian State Duma on July 24, 2019.
  The Draft has been amended since then and now proposes the following principal provisions:
   (1)
Unless otherwise set forth under the treaties of the Russian Federation or the agreement between the parties, the disputes involving the sanctioned persons and any disputes between Russian persons, Russian and foreign persons or between the foreign persons that are based on sanctions against Russian persons, shall be submitted for settlement to Russian courts;
   (2) Sanctioned persons are entitled to file lawsuits to competent courts in Russia provided that there are no pending court or arbitration proceedings outside Russia related to the same dispute between the same persons about the same subject or on the same groundings; and
   (3) Sanctioned persons are entitled to approach competent courts in Russia with a request to prohibit initiation or continuation of the court proceedings outside of Russia.  Non-compliance with this prohibition may result in a fine imposed by Russian court on the counterparty of such sanctioned person in the amount not exceeding the amount of the claim and legal costs incurred by the appealing party. 
   (4) If a sanctioned person considers the arbitration agreement impossible due to the sanctions preventing from the access to public justice, such sanctioned person is entitled to approach to a competent court in Russia ignoring the arbitration agreement.
   Given that the Draft passed the second and the third readings and was delivered to the Federation Council that approved the Draft on June 1, 2020, it is highly likely that it will soon be adopted into law.  

(Source: 
Husch Blackwell, 1 Jun 2020) [Excerpts]
 
* Principal Author: Nithya Nagarajan, Esq., 1-202-378-2409, Husch Blackwell LLP
 
In May 2020 Trade Law Update, you’ll learn about the following updates in international trade and supply chain law:
  • Bureau of Industry and Security (BIS) announces opportunities to submit comments in the Section 232 investigations on imports of mobile cranes and steel for electrical transformers
  • White House issues Executive Order providing federal agencies with regulatory enforcement discretion to promote economic recovery
  • New Federal Maritime Commission (FMC) Interpretative Demurrage and Detention rules
  • An update on U.S. Department of Commerce decisions
  • U.S. International Trade Commission – Section 701/731 proceedings
  • An update from U.S. Customs & Border Protection
  • Summary of decisions from the Court of International Trade
  • Updates from the Court of Appeals for the Federal Circuit
  • May export controls and sanctions

(Source: Author)
 
* Author: Ted Murphy, Esq,
ted.murphy@sidley.com,
+1 202 736 8016; Sidley Austin LLP
 
Without any fanfare (or announcement), two new files appeared on the USTR’s USMCA webpage last night under the heading “Uniform Regulations”.  The two files appear to contain the Uniform Regulations for Chapters 4-7 of the agreement.  The files are attached for your reference. 
 
 
The first is entitled, “Uniform Regulations Regarding the Interpretation, Application and Administration of Chapter 4 (Rules of Origin) and Related Provisions in Chapter 6 (Textile and Apparel Goods) of the Agreement Between the United States of America, The United Mexican States, and Canada.”  For those familiar with the NAFTA Rules of Origin Regulations in the appendix to part 181 of the U.S. Customs and Border Protection regulations, this is a helpful document that further expands on key terms, provides examples of how the rules of origin apply in practice, etc. 
 
The second is entitled, “Uniform Regulations Regarding the Interpretation, Application and Administration of Chapters 5 (Origin Procedures), 6 (Textile and Apparel Goods), and 7 (Customs Administration and Trade Facilitation) of the Agreement Between the United States of America, The United Mexican States, and Canada.”  This is a much shorter document and it appears to contain much less in the way of new/additional information.
 
These documents (and the first one, in particular) should be helpful as companies continue to come to terms with the upcoming transition from NAFTA to USMCA on July 1, 2020. …

TE EX/IM TRAINING EVENTS & CONFERENCES

TE_a1
13. ECTI Presents: UK/EU Export Controls and Sanctions 101 Webinar; 30 Jun 

(Source:
Ashleigh Foor
)

 
* What: UK/EU Export Controls and Sanctions 101
* When: 30 Jun; 1:00 p.m. (EDT)
* Where: Webinar
* Sponsor: Export Compliance Training Institute (ECTI)
* ECTI Speaker: Richard Tauwhare
* Register: 
here 
or contact
Ashleigh Foor
, 1-540-433-3977

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

EN EDITOR’S NOTES

EN_a115. Bartlett’s Unfamiliar Quotations

(Source: Editor)
  

* Dennis Weaver (William Dennis Weaver; 4 Jun 1924 – 24 Feb 2006; was an American actor and former president of the Screen Actors Guild, best known for his work in television and films from the early 1950s until not long before his death in 2006. Weaver’s two most famous roles were as Marshal Matt Dillon’s trusty partner Chester Goode/Proudfoot on the CBS western Gunsmoke and as Deputy Marshal Sam McCloud on the NBC police drama McCloud. He starred in the 1971 television film Duel, the first film of director Steven Spielberg.)
  – “There will come a time … when civilized people will look back in horror on our generation and the ones that preceded it – the idea that we should eat other living things running around on four legs, that we should raise them just for the purpose of killing them!  The people of the future will say “meat-eaters!” in disgust and regard us in the same way we regard cannibals and cannibalism.”  
[Editor’s Note: We mistakenly repeated the 2 June quotations in yesterday’s Bugle, which was of course brought to my attention by many of our attentive readers.  So for those who were disappointed not to receive a 3 June birthday quotation, here is what I intended to post yesterday.]
* Jefferson Davis (Jefferson Finis Davis; 3 Jun 1808 – 6 Dec 1889; was an American politician who served as the president of the Confederate States from 1861 to 1865.  As a member of the Democratic Party, he represented Mississippi in the United States Senate and the House of Representatives before the American Civil War.)

  – “Neither current events nor history show that the majority rule, or ever did rule.”

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

 

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.

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. 
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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