The Daily Bugle Weekly Highlights: Week 25 (15-19 June 2020)

Every Monday we post the highlights out of last week’s FCC Export/Import Daily Update (“The Daily Bugle”). Send out every business day to approximately 8,500 readers of changes to defense and high-tech trade laws and regulations, The Daily Bugle is a free daily newsletter from Full Circle Compliance, edited by James E. Bartlett III, Salvatore Di Misa, and Elina Tsapouri.

We check the following sources daily: Federal Register, Congressional Record, Commerce/AES, Commerce/BIS, DHS/CBP, DOE/NRC, DOJ/ATF, DoD/DSS, DoD/DTSA, FAR/DFARS, State/DDTC, Treasury/OFAC, White House, and similar websites of Australia, Canada, U.K., and other countries and international organizations.  Due to space limitations, we do not post Arms Sales notifications, Denied Party listings, or Customs AD/CVD items. To subscribe, click here.

Last week’s highlights of The Daily Bugle included in this edition are:


  1. Commerce/BIS: “5-Year Record Retention Requirement for Export and Boycott Transactions”; Monday, 15 June 2020; Item #1.
  2. State/DDTC:“End-Use Monitoring of Defense Articles and Defense Services Commercial Exports FY 2019”; The Daily Bugle; Monday, 15 June 2020; Item #4.
  3. Commerce/BIS: “New BIS License Type C63 – (YFA) for ECCN 0A501.y Firearms Related Commodities”; The Daily Bugle; Tuesday, 16 June 2020; Item #2.
  4. EU Council Decision of 16 June 2020 Amends Decision on the Promotion of Effective Arms Export Controls; The Daily Bugle; Wednesday, 17 June 2020; Item #6.
  5. Commerce/BIS: “Release of Technology to Certain Entities on the Entity List in the Context of Standards Organizations”; The Daily Bugle; Thursday, 18 June 2020; Item #1



Commerce/BIS: “5-Year Record Retention Requirement for Export and Boycott Transactions”

(Source: Federal Register) [Excerpt]


85 FR 36185: Agency Information Collection Activities

  The Department of Commerce will submit the following information collection request to the Office of Management and Budget (OMB) for review and clearance in accordance with the Paperwork Reduction Act of 1995, on or after the date of publication of this notice. We invite the general public and other Federal agencies to comment on proposed, and continuing information collections, which helps us assess the impact of our information collection requirements and minimize the public’s reporting burden. Public comments were previously requested via the Federal Register on 4/6/2020 during a 60-day comment period. This notice allows for an additional 30 days for public comments.

* Agency: Bureau of Industry and Security.

* Title: 5-Year Record Retention Requirement for Export and Boycott Transactions.

* OMB Control Number: 0694-0096.

* Form Number(s): None.

* Type of Request: Extension of a current information collection.

* Number of Respondents: 100,000.

* Average Hours Per Response: 1 Second to 1 Minute.

* Burden Hours: 258.

* Needs and Uses: This collection is necessary under Sections 760 and 762.6(a) of the Export Administration Regulations (EAR). The five-year retention requirement corresponds with the statute of limitations for violations and is necessary to preserve potential evidence for investigations. All parties involved in the export, reexport, transshipment or diversion of items subject to the EAR and the U.S. party involved in the export transaction involving a reportable boycott request are required to maintain records of these activities for a period of five years. The frequency depends upon how often each entity is involved in an export transaction or one involving a reportable boycott request.

Affected Public: Business or other for-profit organizations.

Frequency: On Occasion.

Respondent’s Obligation: Voluntary.

Legal Authority: Export Control Reform Act 4812(b) and 4814(b)(1)(B).

  This information collection request may be viewed at Follow the instructions to view the Department of Commerce collections currently under review by OMB.

  Written comments and recommendations for the proposed information collection should be submitted within 30 days of the publication of this notice on the following website Find this particular information collection by selecting “Currently under 30-day Review-Open for Public Comments” or by using the search function and entering either the title of the collection or the OMB Control Number 0694-0096.


State/DDTC: End-Use Monitoring of Defense Articles and Defense Services Commercial Exports FY 2019 

(Source: State/DDTC) [Excerpts] 


Executive Summary

  The Department of State’s Blue Lantern end-use monitoring program addressed the evolving nature of arms trade and subsequent challenges associated with diversion in FY 2019. The Bureau of Political-Military Affairs’ Directorate of Defense Trade Controls (PM/DDTC) accomplished this by developing and initiating the first-ever series of joint end-use monitoring checks between the Departments of State and Defense and the completion of the first tranche of Blue Lantern visits tailored to assess the risk of diversion of U.S. defense articles due to the acquisition of foreign companies by entities that pose a potential enhanced risk of diversion.

  During FY 2019, PM/DDTC’s Blue Lantern program achieved other notable successes. PM/DDTC enhanced its work with posts in order to improve their ability to keep pace with the rate of checks requested and conduct the checks in a more timely and effective manner. The results were significant, with the Directorate initiating 187 checks and posts closing almost as many (181), and PM/DDTC recommending non-approval of more than 130 license applications, up from 57 during FY 2018. This non-approval rate was supported by better execution of and reports on Blue Lantern checks, the expansion of end-use monitoring efforts described above, and enhanced and regular application of intelligence products.

  In addition to these efforts, PM/DDTC modified the way it tabulates its end-use monitoring activities to ensure the numbers it reports better reflect the work being done. The new method, which takes into account only those license applications with a direct bearing on a Blue Lantern check, is a departure from the previous approach, which considered all applications that could be indirectly impacted by Blue Lantern findings. This change in methodology effectively minimizes the possible inclusion of irrelevant cases that could provide false assurances of favorable results. PM/DDTC’s FY 2019 successes are further notable given the 35-day lapse in appropriations spanning December 22, 2018, to January 25, 2019. This circumstance interfered with the onboarding and training of new personnel to replace departed colleagues.   Further, it hindered travel, embassy operations, and the planning needed to initiate and conduct Blue Lantern checks in FY 2019. Coupled with the new check tabulation method, this was a major factor in an overall reduction in the number of Blue Lantern checks conducted in FY 2019.


Discussion …



Commerce/BIS: “New BIS License Type C63 – (YFA) for ECCN 0A501.y Firearms Related Commodities”

(Source: Commerce/BIS), 15 Jun 2020)  


  On Thursday, January 23, 2020, the Department of Commerce, Bureau of Industry and Security published a final rule ( that became effective March 9, 2020.  As a result of this rule, the following change will be made to AES in order for exporters and authorized agents to successfully report electronic export information in the AES.

 A New License Type has been added to the Automated Export System.
  Prior to this AES change, the license type C60 (DY6) was used for Export Control Classification Number (ECCN) 0A501 when reporting a commodity classified under 0A501.y in AES.  C60 (DY6) is also used for .y “600 series” or 9×515 ECCNs and will continue to be reported for “600 series” and 9×515 .y items.
  A change has been made to AES to create a new license type C63 (YFA) that will be specific to the .y commodities that do not have the same destination controls as the “600 series” .y and 9×515 .y commodities to ensure exporters and authorized agents can successfully report electronic export information in the AES for these commodities.
  United States Principal Parties in Interest (USPPIs) and their authorized filing agents (AES filers) must adhere to the following new reporting when using C63 (YFA) to prevent the return of fatal errors from AES.

  • C63 (YFA) – Reporting an ECCN is not required except for China, Russia, and Venezuela (as of June 29, 2020), but when reported, only the following ECCN is eligible: y.  When C63 is used, the filer must report YFA in the License Number field. 

  Report Export Information Codes: All except UG, FS, FI.
  Report any mode of transportation.
  For general questions regarding AES, please contact the Economic Management Division (EMD) at the Bureau of the Census at 1-800-549-0595, option 1.
  A complete list of all of the AES License Type codes and reporting instructions for these types can be found at



EU Council Decision of 16 June 2020 Amends Decision on the Promotion of Effective Arms Export Controls

(Source: Official Journal of the European Union, 17 Jun 2020) [Excerpts] 


  On 22 January 2018, the Council adopted Decision (CFSP) 2018/101, which provides for a 30-month implementation period from the date of conclusion of the financing agreement referred to in that Decision, for the activities referred to in Article 1 thereof.

  On 30 April 2020, the Bundesamt für Wirtschaft und Ausfuhrkontrolle, in its capacity as the Implementing Agency, requested the authorisation of the Union to extend the implementation of Decision (CFSP) 2018/101 until 30 November 2020 due to challenges arising from the continuing COVID-19 pandemic.

  The continuation of the activities referred to in Article 1 of Decision (CFSP) 2018/101 can be performed without any financial resource implication until 30 November 2020.

Decision (CFSP) 2018/101 should therefore be amended accordingly,


Article 1

Decision (CFSP) 2018/101 is hereby amended as follows:

(1) Article 5 is replaced by the following:

‘Article 5

This Decision shall enter into force on the date of its adoption and shall expire on 30 November 2020.’.

(2) In the Annex, section 10 is replaced by the following:

’10.   Duration

The project will end on 30 November 2020.’.

Article 2

This Decision shall enter into force on the date of its adoption.

Done at Brussels, 16 June 2020.



Commerce/BIS: “Release of Technology to Certain Entities on the Entity List in the Context of Standards Organizations”

(Source: Federal Register, 18 Jun 2020) [Excerpts]


85 FR 36719: Rule

* AGENCY: Bureau of Industry and Security, Commerce.

* ACTION: Interim final rule; request for comments.

* SUMMARY: Huawei Technologies Co., Ltd. (Huawei) and 114 of its foreign affiliates were added to the Entity List by the Bureau of Industry and Security (BIS) in 2019, but continue to participate in many important international standards organizations in which U.S. companies also participate. As international standards serve as the building blocks for product development and help ensure functionality, interoperability, and safety of the products, it is important to U.S. technological leadership that U.S. companies be able to work in these bodies in order to ensure that U.S. standards proposals are fully considered. Since Huawei’s addition to the Entity List, organizations have consequently sought clarity about U.S. industry participation in standards development. BIS is amending the Export Administration Regulations (EAR) to authorize the release of certain technology to Huawei and its affiliates on the Entity List without a license if such release is made for the purpose of contributing to the revision or development of a “standard” in a “standards organization.”  

  For the purpose of this interim final rule, a “standard” is as defined in Office of Management and Budget (OMB) Circular A-119: Federal Participation in the Development and Use of Voluntary Consensus Standards and in Conformity Assessment Activities, and a “standards organization,” is the equivalent of a “voluntary consensus standards body” as defined in Office of Management and Budget (OMB) Circular A-119: Federal Participation in the Development and Use of Voluntary Consensus Standards and in Conformity Assessment Activities. This interim final rule does not change the assessment of whether “technology” is subject to the EAR. BIS is requesting comments on the impact of these revisions.

* DATES: This rule is effective June 18, 2020. Submit comments on or before August 17, 2020.

* ADDRESSES: You may submit comments, identified by docket number BIS 2020-0017 or RIN 0694-AI06, through the Federal eRulemaking Portal: Follow the instructions for submitting comments.

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