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The Daily Bugle Weekly Highlights: Week 7 (15 – 19 Feb 2021)

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 9,500 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 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. EU Commission: “Strong EU Trade Enforcement Rules Enter Into Force”; Tuesday, 16 Feb 2021; Item #8
  2. Commerce/BIS: “Burma – Implementation of Sanctions”; Tuesday, 18 Feb 2021; Item #1
  3. State/PM, DDTC: “Notifications to the Congress of Proposed Commercial Export Licenses”; Tuesday, 18 Feb 2021; Item #3
  4. Netherlands TCA: “Corona: Mandatory Export Licence for COVID-19 Vaccines (Update)”; Thursday, 18 Feb 2021; Item #9
  5. Commerce/Census: “How to Report Used Vehicles in AES”; Friday, 19 Feb 2021; Item #2

 

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EU Commission: “Strong EU Trade Enforcement Rules Enter Into Force”

(Source: European Commission, 13 Feb 2021) [Excerpts]

 

The new rules upgrade the EU’s enforcement by introducing the following changes:

  • empowering the EU to act to protect its trade interests in the World Trade Organization (WTO) and under bilateral agreements when a trade dispute is blocked despite the EU’s good faith effort to follow dispute settlement procedures (the regulation previously only allowed action after the completion of dispute settlement procedures); and
  • expanding the scope of the regulation and of possible trade policy countermeasures to services and certain trade-related aspects of intellectual property rights (IPR) (the regulation previously only permitted countermeasures in goods).

Background

The proposal to amend the existing Enforcement Regulation came as a reaction to the blockage of the operations of the WTO Appellate Body. The current regulation – a basis under EU law for adopting trade countermeasures – requires that a dispute goes all the way through the WTO procedures, including the appeal stage, before the Union can react. The lack of a functioning WTO Appellate Body allows WTO Members to avoid their obligations and escape a binding ruling by simply appealing a panel report.

The revised Regulation enables the EU to react even if the WTO has not delivered a final ruling because the other WTO member blocks the dispute procedure by appealing to the non-functioning Appellate Body and by not agreeing to an alternative arbitration under WTO Dispute Settlement Agreement.

This new mechanism also applies to the dispute settlement in relation to regional or bilateral trade agreements to which the EU is party if a similar blockage arises. The EU must be able to respond resolutely in case trade partners hinder effective dispute settlement resolution, for instance, by blocking the composition of panels. …

 

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Commerce/BIS: “Burma – Implementation of Sanctions”

(Source: Federal Register, 18 Feb 2021) [Excerpts]

 

86 FR 10011: Rule

* AGENCY: Bureau of Industry and Security, Commerce.

* ACTION: Notification.

* SUMMARY: In response to the coup perpetrated by the Burmese military wresting control of the democratically-elected government of Burma, the United States Government is reviewing all available actions to hold the perpetrators of the coup responsible. The Department of Commerce’s Bureau of Industry and Security (BIS) is taking immediate action to limit exports and reexports of sensitive goods to Burma’s military and security services. Effective immediately, BIS is adopting a more restrictive license application review policy of presumption of denial of items requiring a license for export and reexport to Burma’s Ministry of Defense, Ministry of Home Affairs, armed forces, and security services. BIS is also suspending the use of certain license exceptions that would otherwise generally be available to Burma as a result of its current Country Group placement in the Export Administration Regulations (EAR).

* DATES: Effective February 17, 2021.

 

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State/PM, DDTC: “Notifications to the Congress of Proposed Commercial Export Licenses”

(Source: Federal Register, 17 Feb 2021) [Excerpts]

 

86 FR 9985: Notice

* AGENCY: Department of State.

* ACTION: Notice.

* SUMMARY: The Directorate of Defense Trade Controls and the Department of State give notice that the attached Notifications of Proposed Commercial Export Licenses were submitted to the Congress on the dates indicated. Four notifications inadvertently omitted a date from their letters, but all were confirmed to have been submitted to the Congress on August 1, 2020. Where that occurred, the date has been added within brackets to the letters reproduced here.

* DATES: As shown on each of the 34 letters.

 

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Netherlands TCA: “Corona: Mandatory Export Licence for COVID-19 Vaccines (Update)”

(Source: Netherlands Tax and Customs Administration), 17 Feb 2021)

 

From 30 January 2021, there will be a licensing requirement for the export of COVID-19 vaccines to countries outside the European Union (EU). The compulsory licence concerns the vaccine as a whole, but also the individual active substances thereof.

Why a licensing requirement? 

“In order to remedy a critical situation and to ensure transparency, it is in the Union interest to take immediate action for a limited duration to ensure that exports of COVID-19 vaccine covered by Advanced Purchased Agreements (APA) with the Union are subject to a prior authorisation so that they are adequate supplies in the Union to meet the vital demand, but without impacting on the Union’s international commitments in this respect.” 

This text is included in one of the articles of the Implementing Regulation. The regulation ensures that enough vaccines are available within the EU to protect the residents of the EU against COVID-19 as soon as possible. The regulation went into effect on Saturday, 30 January 2021. Without a valid export licence, the export of COVID-19 vaccines or the active substances thereof is prohibited with immediate effect.

What does the mandatory licence apply to?

The licensing requirement applies to vaccines against all SARS-related coronaviruses (SARS-CoV species, including COVID-19) falling under CN code 3002 20 10. Regardless of the packaging. The licence also covers its active substances, including the parent cell banks and working cell banks used to make the vaccines.

The regulation regulates exports outside the EU.

Exceptions

The regulation contains several exceptions to the licensing requirement. This includes a large number of countries, certain international organisations and emergency humanitarian aid purposes. 

Update: Applying to IGJ for an authorisation in the Netherlands

Please submit your application for the authorisation to the competent authority of the EU Member State where the vaccines are produced. For the Netherlands, that is the Inspectorate for Health and Youth Care (Inspectie Gezondheidszorg en Jeugd, IGJ). More information about the export of COVID-19 vaccines is available on the IGJ website

 

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Commerce/Census: “How to Report Used Vehicles in AES”

(Source: Global Reach Blog, 18 Feb 2021)  

 

* Author: Eric Gauthier, Trade Data Collection Branch

With the holiday season behind us, many are now enjoying their gifts. If you were lucky enough to be given a big-ticket item like a car, you may not care if it’s new or used. But the difference is key when it comes to reporting vehicles in the Automated Export System (AES).

With the holiday season behind us, many are now enjoying their gifts. If you were lucky enough to be given a big-ticket item like a car, you may not care if it’s new or used. But the difference is key when it comes to reporting vehicles in the Automated Export System (AES).

What is a used vehicle for AES purposes?  

Customs and Border Protection CFR 192.2 defines it as “any self-propelled vehicle the equitable or legal title to which has been transferred by a manufacturer, distributor or dealer to an ultimate purchaser.”

If you’re exporting a car, it is considered used unless you are buying it directly from the manufacturer. That means it should be listed as “used” even if you never stepped foot in it or bought it “new” from a dealer.  

What else do you need to complete the Electronic Export Information (EEI) for your car?

First, you need to verify if your commodity classification code requires or allows you to complete additional used vehicle fields. Refer to the AES Trade Interface Requirements’ Appendix U: HTS/Schedule B Classifications Requiring Used Vehicle Reporting.  . . . . [Graphic deleted.]

If your commodity classification code is not listed in Appendix U, ACE AESDirect will not display the additional fields when you enter your Schedule B or Harmonized Tariff Schedule (HTS) code. If you type in a code that requires or allows you to enter the information, the system will display the necessary fields in the commodities section that you need to complete:

  • VIN/PIN: Identify the type of identification number – vehicle identification number (VIN) or product identification number (PIN) – reported.
  • VIN/PIN number: Provide the vehicle’s VIN number. If not available, submit its PIN number.
  • Vehicle title number: Report the vehicle’s title number.
  • Vehicle title state: List the state where the title was issued.

We strongly recommend that you also enter the vehicle’s year, make and model in the commodity description field. When you complete all required fields in ACE AESDirect, you can submit your EEI. After it’s successfully filed and processed, you will receive an Internal Transaction Number (ITN) to put on the shipping documents. Every AES shipment must have a unique ITN.

Have questions or want more information? Contact the Trade Data Collection Branch at 1-800-549-0595 (Option 1) or at askaes@census.gov.

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