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20-0810 Monday “Daily Bugle”

20-0810 Monday “Daily Bugle”

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Monday, 10 August 2020

  1. DHS/FEMA: FEMA Modifies Temporary Requirement for Approval by FEMA for Exports of PPE
  1. Items Scheduled for Future Federal Register Edition
  2. Commerce/BIS: (No new postings)
  3. DHS/CBP: “Section 301 Tranche 2 – $16B Action Extension of First Round of Product Exclusions from China”
  4. State/DDTC: (No new postings)
  1. Deutsche Welle: “Turkey Criticizes Germany on Enforcing Libya Arms Embargo”
  2. EU Sanctions: “US Warns of Sanctions if China Approves Reported $400bn Deal with Iran”
  3. Reuters: “Iran Says GCC Call for Tehran Arms Embargo Extension is ‘Unrealistic’ “
  1. Miller & Co: “Canada Section 232 Aluminum Duties”
  2. Nicholas Turner: “Sanctions Top-5 for the Week Ending 7 Aug”
  3. ST&R Trade Report: “Customs, FTZ, Marking, Export Information Collections Under Review”
  4. Tuttle Law: “New Developments at the FTC You Need to Know About for ‘Made in USA’ Rule”
  1. Monday List of Ex/Im Job Openings: 53 Jobs Available – 10 New Job Openings This Week
  1. FCC Academy Presents 4 Webinars: U.S. Export Controls: ITAR & EAR | FMS | Designing and Implementing an ICP
  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

1. DHS/FEMA: FEMA Modifies Temporary Requirement for Approval by FEMA for Exports of PPE
(Source: Federal Register, 10 Aug 2020) [Excerpts]
 
85 FR 48113-48119: “Prioritization and Allocation of Certain Scarce and Critical Health and Medical Resources for Domestic Use”
* AGENCY: Federal Emergency Management Agency, DHS.
* ACTION: Temporary final rule; extension of effective date with modifications.
* SUMMARY: In April, the Federal Emergency Management Agency (FEMA) issued a temporary final rule to allocate certain health and medical resources for domestic use, so that these resources may not be exported from the United States without explicit approval by FEMA. The rule covered five types of personal protective equipment (PPE), outlined below. While this rule remains in effect, and subject to certain exemptions stated below, no shipments of such designated materials may leave the United States without explicit approval by FEMA. Through this extension, FEMA modifies the types of PPE covered and extends the duration of the temporary final rule.
* DATES: This rule is effective from August 10, 2020 until December 31, 2020.
* ADDRESSES:  You may review the docket by searching for Docket ID FEMA-2020-0018, via the Federal eRulemaking Portal: http://www.regulations.gov.
* FOR FURTHER INFORMATION CONTACT: Daniel McMasters, Office of Policy and Program Analysis, 202-709-0661, FEMA-DPA@fema.dhs.gov.
* SUPPLEMENTARY INFORMATION:
I. Background
On April 10, 2020, FEMA published a temporary final rule in the Federal Register allocating certain health and medical resources for domestic use, so that these resources may not be exported from the United States without explicit approval by FEMA. … The rule aids the response of the United States to the spread of Coronavirus Disease 2019 (COVID-19) by ensuring that certain health and medical resources are appropriately allocated for domestic use. On April 21, 2020, FEMA published a notification of exemptions to the rule. … With the continued goal of ensuring that such materials are appropriately allocated for domestic use, FEMA is extending the temporary final rule and modifying the list of covered materials to reflect current domestic supply needs. The temporary final rule will remain in effect until December 31, 2020, unless sooner modified or terminated by the Administrator.
. . .
Accordingly, for the reasons set forth in the preamble, and effective from August 10, 2020 until December 31, 2020, chapter I of title 44 of the Code of Federal Regulations is amended by revising part 328 to read as follows:
 
PART 328-COVID-19 ALLOCATION ORDERS AND PRIORITY ORDER REVIEW UNDER THE DEFENSE PRODUCTION ACT
328.101Basis and purpose.328.102Requirements.328.103Designation of covered materials.328.104Investigations and injunctions; penalties.  . . .
§ 328.101Basis and purpose.
   (a) Basis. These rules are issued pursuant to section 101 of the Defense Production Act of 1950, as amended, 50 U.S.C. 4511, and complementary authorities, including such authorities as are contained in subchapter III of chapter 55 of title 50, United States Code (50 U.S.C. 4554, 4555, 4556, and 4559), which have been delegated to FEMA.
   (b) Purpose. The purpose of these rules is to aid the response of the United States to the spread of COVID-19 by ensuring that scarce or threatened health and medical resources are appropriately allocated for domestic use.
§ 328.102Requirements.
   (a) Allocation Order and Requirement for the Administrator’s Approval. All shipments of covered materials, as designated in § 328.103, shall be allocated for domestic use, and may not be exported from the United States without explicit approval by FEMA.
   (b) Procedures. U.S. Customs and Border Protection (CBP), in coordination with such other officials as may be appropriate, will notify FEMA of an intended export of covered materials. CBP must temporarily detain any shipment of such covered materials, pending the Administrator’s determination whether to return for domestic use or issue a rated order for part or all of the shipment, pursuant to the Administrator’s delegated authorities. The Administrator will make such a determination within a reasonable timeframe after notification of an intended export.
   (c) Administrator’s Determination. In making the determination described in paragraph (b) of this section, the Administrator may consult other agencies and will consider the totality of the circumstances, including the following factors:
     (1) The need to ensure that scarce or threatened items are appropriately allocated for domestic use;
     (2) Minimization of disruption to the supply chain, both domestically and abroad;
     (3) The circumstances surrounding the distribution of the materials and potential hoarding or price-gouging concerns;
     (4) The quantity and quality of the materials;
     (5) Humanitarian considerations; and
     (6) International relations and diplomatic considerations.
  (d) Exemption.
     (1) The Administrator has determined in the interest of promoting the national defense to generally allow the export of covered materials from shipments made by or on behalf of U.S. manufacturers with continuous export agreements with customers in other countries since at least January 1, 2020, so long as at least 80 percent of such manufacturer’s domestic production of such covered materials, on a per item basis, was distributed in the United States in the preceding 12 months. If FEMA determines that a shipment of covered materials falls within this exemption, such materials may be exported without further review by FEMA, provided that the Administrator may waive this exemption and fully review shipments of covered materials under paragraph (b) of this section, if the Administrator determines that doing so is necessary or appropriate to promote the national defense. FEMA will communicate to CBP regarding the application of this exemption to shipments identified by CBP.
     (2) The Administrator may establish, in his discretion, additional exemptions that he determines necessary or appropriate to promote the national defense and will announce any such exemptions by notice in the Federal Register.
   (e) Exportations prohibited. The exportation of covered materials other than in accordance with this section is prohibited.
§ 328.103Designation of covered materials.
   (a) The Administrator has designated the following materials as “covered materials” under this part:
     (1) Surgical N95 Filtering Facepiece Respirators, including devices that are disposable half-face-piece non-powered air-purifying particulate respirators intended for use to cover the nose and mouth of the wearer to help reduce wearer exposure to pathogenic biological airborne particulates;
     (2) PPE surgical masks, including masks that cover the user’s nose and mouth and provide a physical barrier to fluids and particulate materials;
     (3) PPE nitrile gloves, including those defined at 21 CFR 880.6250 (exam gloves) and 878.4460 (surgical gloves) and such nitrile gloves intended for the same purposes; and
     (4) Level 3 and 4 Surgical Gowns and Surgical Isolation Gowns that meet all of the requirements in ANSI/AAMI PB70 and ASTM F2407-06 and are classified by Surgical Gown Barrier Performance based on AAMI PB70.
   (b) Upon determination that additional items are scarce and necessary for national defense, and that consideration under this allocation order is the only way to meet national defense requirements without significant disruption to the domestic markets, the Administrator may designate additional materials as “covered materials” in the list provided above. The Administrator will publish notice of these additional “covered materials” in the Federal Register.
§ 328.104Investigations and injunctions; penalties.
   (a) To administer or enforce this subpart, the Administrator may exercise the authorities available under section 705 of the Defense Production Act of 1950, as amended, 50 U.S.C. 4555, including the conduct of investigations, requests for information or testimony, and inspections of records or premises. Before such authorities are utilized, the Administrator will determine the scope and purpose of the investigation, inspection, or inquiry, and be assured that no adequate and authoritative data are available from any Federal or other responsible agency.
   (b) Whenever, in the judgment of the Administrator, any person has engaged or is about to engage in any acts or practices that constitute or will constitute a violation of any provision of this subpart, or order issued thereunder, the Administrator may exercise the authorities available under section 706 of the Defense Production Act of 1950, as amended, 50 U.S.C. 4556, including applying for a preliminary, permanent, or temporary injunction, restraining order, or other order to enforce compliance with this subpart.
   (c) Any person who willfully engages in violations of this part is subject to penalties available under section 103 of the Defense Production Act of 1950, as amended, 50 U.S.C. 4513, or other available authority.
. . .

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OGS OTHER GOVERNMENT SOURCES

(Source: Federal Register)
 
* Treasury/OFAC: NOTICES; Blocking or Unblocking of Persons and Properties [Pub. Date: 11 Aug 2020] (PDF) and (PDF)
 
* USTR: NOTICES; Extension of Particular Exclusions Granted Under the $300 Billion Action Pursuant to Section 301: China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation [Pub. Date: 11 Aug 2020] (PDF)
 
* USTR: NOTICES; Product Exclusions and Amendments: China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation [Pub. Date: 11 Aug 2020] (PDF)
 
* USTR: NOTICES; Product Exclusion Extensions: China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation [Pub. Date: 11 Aug 2020] (PDF)

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OGS_a23. Commerce/BIS: (No new postings)

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(Source: DHS/CBP, 7 Aug 2020)
 
BACKGROUND
   On July 23, 2020, the U.S. Trade Representative (USTR) published Federal Register (FR) Notice 85 FR 44563 on certain exclusions from the Section 301 duty related to goods from China ($300B Action – Tranche 4).
These product exclusions relate to the imposed additional duties announced in 84 FR 43304 and 84 FR 45821 on goods covered under list 1/Annex A ($300B Action – Tranche 4).
   The product exclusions will retroactively apply as of the September 1, 2019 effective date of the $300 billion action (Tranche 4A), and will extend through September 1, 2020.
   The exclusions are available for any product that meets the description as set out in the Annex to 85 FR 44563, 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 provided in the Annex to 85 FR 44563, not by the product descriptions set out in any particular request for exclusion.
The functionality for the acceptance of the imported merchandise covered under the eighth round of products from China excluded from the Section 301 Tranche 4A-$300B Action will be available in the Automated Commercial Environment (ACE) as of 7 a.m. eastern daylight time, August 6, 2020.
 
GUIDANCE
   Instructions for importers, brokers, and filers on submitting entries to Customs and Border Protection (CBP) containing products granted exclusions from the Section 301 measures as set out in 85 FR 44563 are provided below.
Eighth Round of Product Exclusions
  • Paragraph A, subparagraphs (1)-(2) of the Annex stipulates that articles from China, as provided for in U.S. note 20(fff) to this subchapter, will be covered by the exclusion granted by the USTR for imported merchandise that is subject to the exclusion and for which the exclusion is claimed.
  • In addition to reporting the regular Chapters 5, 39, 55, 61, 62, 63, 65, 82, 83, 84, 85, 87, 92, 93, 95, 96, and 97 classifications of the HTSUS for the imported merchandise as listed in 85 FR 44563, importers shall report HTSUS classification 9903.88.53.
  • Importers shall not submit the corresponding Chapter 99 HTS number for the Section 301 duties when HTS 9903.88.53 is submitted.
Technical Corrections
  • Per paragraph B of the Annex, in addition to reporting the regular Chapters 63 of the HTSUS for the technical amendments listed in U.S. note 20(ddd) covered under the 9903.88.51 product exclusion round, importers shall not submit the corresponding Chapter 99 HTS number for the Section 301 duties when the applicable exclusion 99 number 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. 
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.
   In situations where an importer has requested a product exclusion and the request is pending with the USTR, importers or their licensed representative may submit a request to extend the liquidation of impacted unliquidated entry summaries to CBP.
  Reminder: importers, brokers, and/or filers should refer to CSMS 39587858 (Entry Summary Order of Reporting for Multiple HTS when 98 or 99 HTS are required) for guidance when filing an entry summary in which a heading or subheading in Chapter 99 is claimed on imported merchandise.
   For ease of reference, a summary of Section 301 duties and product exclusion notifications is 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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COM NEWS

(Source: Deutsche Welle, 6 Aug 2020) [Excerpts]

 
   Turkey’s top diplomat has said Germany’s participation in the EU’s “Irini” arms embargo mission means Berlin is no longer “impartial.” Turkey says the embargo benefits rebel leader Khalifa Haftar.
   Turkish Foreign Minister Mevlut Cavusoglu on Thursday criticized Germany’s participation in a European Union mission supervising an international weapon’s embargo on Libya.
  Cavusoglu was in the Libyan capital, Tripoli, for talks with, Fayez al-Sarraj, the head of UN-backed Government of National Accord (GNA). Turkey is one of the GNA’s strongest supporters.
   In comments to Turkish media following the meeting, Cavusoglu accused Berlin of compromising its neutrality in the Libyan conflict after Germany sent a frigate Tuesday carrying 250 soldiers to participate in the EU’s “Irini” mission.
   Irini was launched in May to stop weapons from reaching Libya, which is embroiled in a power struggle between the GNA and forces loyal to eastern Libyan military strongman Khalifa Haftar. … 
   Cavusoglu has argued that Irini operation favors Haftar’s forces. In June, he criticized the mission as being “not objective” and failing to target military equipment originating from Haftar’s supporters.
   There is divided international support for the GNA and Haftar’s forces. France is considered to be a supporter of Haftar, along with Egypt, Syria, Russia, and the United Arab Emirates.
   Turkey provides military support to the GNA, including drones that helped GNA forces push Haftar from Libya’s northwest.
   The division of international support for both sides in the conflict has made the UN arms embargo difficult to enforce. In July, the leaders of France, Italy and Germany threatened sanctions and said “all foreign actors” need to stop interfering in Libya and to respect the embargo.

(Source: EU Sanctions, 7 Aug 2020) [Excerpts]

 

   US Secretary of State Mike Pompeo has warned that sanctions will be imposed on the Chinese government, state-owned companies, and businesses if China goes ahead with a reported $400 billion economic and security deal with the Iranian government. Under the 25-year deal, it is understood that China would invest in the telecommunications, banking, maritime, and railway sectors of the Iranian economy in exchange for discounted Iranian oil. See State Dept interview. 

(Source: Reuters, 10 Aug 2020) [Excerpts]
 
   Iran has rejected as “unrealistic” a call by the Gulf Cooperation Council (GCC) for the United Nations to extend an international arms embargo on Tehran that ends in October, state TV reported on Monday.
   The GCC, made up of Bahrain, Kuwait, Oman, Qatar, the United Arab Emirates and Saudi Arabia, said on Sunday that Iran’s continued interference in neighboring countries made an extension necessary.
   The arms embargo is currently set to end on Oct. 18 as part of Tehran’s 2015 nuclear deal with world powers, which the United States quit in 2018. 
“The GCC is currently at the apex of its incompetence and its unrealistic policies have rendered it ineffective,” Iran’s Foreign Ministry spokesman Abbas Mousavi told a televised news conference.
   “The council, swayed by the wrong and destructive policies and behaviour of certain member states, has turned into a mouthpiece for anti-Iran elements inside and outside the region.”
   U. S. Secretary of State Mike Pompeo said on Wednesday that the United Nations Security Council will vote this week on a U.S. bid to extend the arms embargo on Iran, despite warnings by some diplomats that the measure lacks support.
   If the United States is unsuccessful in extending the embargo, it has threatened to trigger a return of all U.N. sanctions on Iran under a process agreed in the 2015 deal.
   In May, Iranian President Hassan Rouhani threatened a “crushing response” if the embargo on Iranian trade of conventional arms was extended.
   Iran has breached parts of the nuclear deal in response to the 2018 U.S. withdrawal and Washington’s reimposition of sanctions.

COM COMMENTARY

 
* Principal Author: Marshall V. Miller, Esq., Miller & Company, P.C.
 
   On August 6, 2020, President Trump issued an Executive Order imposing 10% Section 232 duties on Canadian origin non-alloyed unwrought aluminum articles classified in HTSUS subheading 7601.10. These duties will commence for consumption entries or warehouse withdrawals on or after August 16, 2020. Clients may still utilize previously-approved Section 232 product exclusions for Canadian-origin non-alloyed unwrought aluminum articles. If a previously-granted product exclusion has expired, those product exclusions may be renewed. Duty drawback will not be available with respect to these Section 232 duties. 
  For FTZ clients involved in distribution only, Canadian non-alloyed unwrought aluminum admitted into an FTZ in either Privileged Foreign (PF) or Non-Privileged Foreign (NPF) status prior to August 16, 2020 will be subject to the 10% Section 232 duties when the merchandise is entered for consumption on or after August 16, 2020. Note that the Foreign-Trade Zones Act § 81c legal structure of Privileged Foreign status was negated in the Section 232 Presidential Proclamation. This means that Privileged Foreign (PF) status will not provide the company with the usual statutory protection with respect to additional or higher duties assessed on the merchandise subsequent to the date the Privileged Foreign (PF) status was elected. Clients are urged to file Customs entry on any on-hand inventory of Canadian non-alloyed unwrought aluminum prior to August 16 so as to avoid the additional 10% duty.
  For FTZ clients involved in production, Canadian non-alloyed unwrought aluminum admitted into an FTZ in Non-Privileged Foreign (NPF) status admitted into an FTZ prior to August 16 to be used in production/manufacture should not be subject to the additional 10% duty on the admitted aluminum as the entry is on the finished product. If any of the Canadian non-alloyed unwrought aluminum used in production was admitted in Privileged Foreign (PF) status, the value of said aluminum will be subject to the 10% Section 232 duties when the finished article is entered for consumption on or after August 16, 2020. Finally, non-alloyed unwrought aluminum classified in HTSUS subheading 7601.10 will not be subject to these duties “merely by reason of manufacture” in a U.S. FTZ. 
  These Section 232 duties are in response to increased imports of Canadian-origin aluminum, and the E.O. indicates the U.S. will monitor imports for surges of exempt Canadian alloyed, further processed, or wrought aluminum articles to ensure non-alloyed unwrought aluminum shipments are “not simply reoriented.” Prime Minister Trudeau of Canada has vowed to impose retaliatory tariffs on U.S. products in response to the U.S. action.  

(Source: Medium, 10 Aug 2020)
 
* 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 US Office of Foreign Assets Control (OFAC) named 11 government officials in Hong Kong and China as Specially Designated Nationals (SDNs) pursuant to Executive Order 13936. The targets include Hong Kong’s Chief Executive (think mayor), Police Commissioner, Justice Secretary, and other notables. (More on this below.)
  2. The next day, the Hong Kong Monetary Authority (HKMA) and the Securities and Futures Commission (SFC) released statements (here and here) acknowledging the existence of the US sanctions and urging Hong Kong firms to treat customers fairly. In its statement, the HKMA reiterated its longstanding position that “no obligation is created . . . under Hong Kong law” (emphasis mine) by foreign sanctions adopted outside the United Nations framework.
  3. Had enough yet? On the eve of Hong Kong sanctions, the White House released two Executive Orders (here and here) that could limit US transactions with Tencent (in relation to WeChat) and ByteDance. As I told the Financial Times, the orders could eventually restrict US persons from downloading the apps or prohibit transfers of technologies to the companies. We’ll known more within 45 days, when the Commerce Department issues regulations.
  4. The UN Security Council committee concerning the Central African Republic (CAR) adding Bi Sidi Souleman, leader of the militia Retour, Réclamation, Réhabilitation (3R) to the UN Sanctions List pursuant to UN Security Council Resolution 2127(2013). According to the UN news release, 3R has engaged in a raft of nefarious activities and disrupted the country’s Political Agreement for Peace and Reconciliation.
  5. OFAC named a Zimbabwean businessman, Kudakwashe Regimond Tagwirei, as an SDN under the “material assistance” provision of Executive Order 13469 for providing gifts and other support to sanctioned government officials in exchange for contracts and favors. OFAC also named a company, Sakunda Holdings, as an SDN for being owned or controlled by Tagwirei.
Comments
   As a result of the SDN designations, property and interests in property of the 11 sanctioned government officials (and entities owned 50 percent or more by them) are blocked (frozen) in the United States or within the possession or control of a US person. US persons (including US banks and companies) are prohibited from transacting or dealing, directly or indirectly, with them. As I told Reuters, non-US persons and companies could face OFAC risk by engaging in transactions involving the SDNs that also involve US persons or the US financial system (e.g. wire transfers through US correspondent accounts).
Financial institutions, in particular, will be watching to see how the reporting process under Section 5 of the Hong Kong Autonomy Act plays out. Will the 11 officials be reported to Congress under Section 5(a) and when? Could other foreign persons be added to the list? What sanctions will apply to foreign financial institutions under Section 7? What on earth is a “significant transaction”? It’s a cliffhanger.
Speaking of, what does “material assistance” under Section 1(a)(iv) of Executive Order 13936 mean in the context of Hong Kong? That will be up to the US State and Treasury Departments to decide. For an example of what could be included, see last week’s Zimbabwe designation under Section 1(a)(vii) of Executive Order 13469, which also relates to SDN officials.

 
* Contact: messages@strtrade.com, 1-305-894-1035
 
The federal agencies listed below are seeking comments on the proposed extension or revision of information collections concerning the following.
 
Department of Agriculture
– marking, labeling, and packaging of meat, poultry, and egg products (comments due by Oct. 5)
 
Department of Justice
– forms 161, 161R, and 161R-EEA, application for permit to export controlled substances, including for subsequent reexport (comments due by Sept. 9)
– form 357, application for permit to import controlled substances for domestic and/or scientific purposes (comments due by Sept. 9)
– form 236, controlled substances import/export declaration (comments due by Sept. 9)
– forms 486 and 486A, import/export declaration for List 1 and List II chemicals (comments due by Sept. 9)
 
Food and Drug Administration
– establishing and maintaining a list of U.S. manufacturers/processors of feed additives, premixes, compound feed, distillers’ dried grains, and distillers’ dried grains with solubles for use with animals with interest in exporting to China (comments due by Sept. 8)
– channels of trade policy for commodities with residues of pesticide chemicals for which tolerances have been revoked, suspended, or modified by the Environmental Protection Agency pursuant to dietary risk considerations (comments due by Sept. 8)
 
U.S. Customs and Border Protection
– form 3495, application for exportation of articles under special bond (comments due by Oct. 6)
– form 247, cost submission (comments due by Oct. 6)
– form 7501, entry summary (comments due by Oct. 6)
– foreign-trade zone annual reconciliation certification and recordkeeping requirement (comments due by Oct. 6)

 
* Principal Author: George R. Tuttle, Esq., 1-415-254-5986, Law Offices of George R. Tuttle
 
 The FTC just announced a Notice of Proposed Rulemaking for a “Made in USA” Labeling Rule. You’ll want to read the notice in detail, but the proposed rule would apply to labels on products that make unqualified “Made in USA” claims. (In FTC parlance, an “unqualified” claim is a broad representation made without limitations.) The proposed rule would incorporate established guidance already set forth in FTC decisions and orders and in the agency’s 1997 Enforcement Policy Statement on U.S.-Origin Claims.
Consistent with that guidance, the proposed rule would prohibit marketers from making unqualified “Made in USA” claims on labels unless:
  • Final assembly or processing of the product occurs in the United States;
  • All significant processing that goes into the product occurs in the United States; and
  • All or virtually all ingredients or components of the product are made and sourced in the United States.
   The proposed rule wouldn’t change or affect any other existing federal or state law or regulation relating to country-of-origin labels, but it suggests one notable modification – the proposed rule would allow the FTC to seek civil penalties for violations.
   Once the proposed rule is published in the Federal Register, you may file a public comment either online or on paper by following the instructions for submitting comments included in the notice of proposed rulemaking.
Development #2 is that the FTC just issued a staff report on last fall’s “Made in USA” workshop convened to consider consumer perception of “Made in USA” claims and to discuss the agency’s “Made in USA” enforcement program. Dive into the report for the details, but according to the one panelist who provided survey evidence on how consumers understand “Made in USA claims”, a 2013 study suggests that almost 3 in 5 Americans agree that “Made in America” means that all parts of a product, including any natural resources it contains, originated in the United States. According to that same study, one third of consumers believe that 100% of a product must originate in a country for it to be called “made” in that country. The report cites those statistics in support of long-standing guidance in the FTC’s Enforcement Policy Statement on U.S.-Origin Claims that at least a significant minority of consumers are likely to be deceived by an unqualified “Made in USA” claim for a product incorporating more than a trivial amount of foreign content.

TE EX/IM MOVERS & SHAKERS

MS_a113. Monday List of Ex/Im Job Openings: 53 Jobs Available –  10 New Job Openings This Week 

* Bio-Rad; Hercules, CA; Senior Trade Compliance Specialist
 
* Boeing; Huntsville, AL; Entry-Level Procurement Agent
 
* Bruker; Madison, WI; Export Compliance Manager
 
*  CMC Electronics; Sugar Grove, IL; Trade Compliance ManagerContact: applyhr@trealitysvs.com
 
* KlearNow; Santa Clara, CA; Knowledge Manager; Contact Details: indu@klearnow.com
 
* KlearNow; Santa Clara, CA; Compliance Analyst; Contact Details: indu@klearnow.com
 
* Relativity; Los Angeles, CA; PeopleOps Associate
 
* Taylor; Windom, MN; Export Clerk
 
* Thermo Fisher; Franklin, MA; Compliance Specialist III; Job ID: 123138BR
 

Click here to see the full list.

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TE EX/IM TRAINING EVENTS & CONFERENCES

ITAR & EAR from a non-US perspective
Tuesday, 8 September 2020
More Info
The ABC of Foreign Military Sales (FMS)
Tuesday, 29 September 2020
Designing and Implementing an ICP
Tuesday, 6 October 2020 More Info
Wednesday, 7 October
More Info
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EN EDITOR’S NOTES

EN_a115. Bartlett’s Unfamiliar Quotations

(Source: Editor)
 

* Camillo di Cavour (Camillo Paolo Filippo Giulio Benso, Count of Cavour, Isolabella and Leri (10 Aug 1810 – 6 Jun 1861), was an Italian statesman and a leading figure in the movement toward Italian unification. After the declaration of a united Kingdom of Italy, Cavour took office as the first Prime Minister of Italy; he died after only three months in office, and thus did not live to see Venetia or Rome added to the new Italian nation.)

  – “The man who trusts men will make fewer mistakes than he who distrusts them.”
  – “I have discovered the art of deceiving diplomats. I tell them the truth and they never believe me.”   
 

* Herbert Hoover (Herbert Clark Hoover; 10 Aug 1874 – 20 Oct 1964; was an American engineer, businessman, and politician who served as the 31st president of the United States from 1929 to 1933.)
  – “Blessed are the young for they shall inherit the national debt.”
 
Monday is pun day.
  • I got a job at a bakery because I kneaded the dough.
  • Cremation is your last chance for a smoking hot body.
  • Velcro?  What a rip-off!

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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.
 
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. 
31 Jul 2020: 85 FR 45998: Revision of the Export Administration Regulations and Suspension of License Exceptions for Hong Kong. 
DOC FOREIGN TRADE REGULATIONS (FTR): 15 CFR Part 30.   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. 

29 Jul 2020: 85 FR 45513 Extension to Certain Temporary Suspensions, Modifications, and Exceptions due to Corona Virus.  The latest edition of the BITAR is 29 July 2020.  

 
DOT FOREIGN ASSETS CONTROL REGULATIONS (OFAC FACR): 31 CFR, Parts 500-599, Embargoes, Sanctions, Executive Orders

17 Jul 2020: 85 FR 43436: Nicaragua 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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