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The Daily Bugle Weekly Highlights: Week 9 (1 – 5 Mar 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. State/DDTC:International Traffic in Arms Regulations: Addition of Russia; Wednesday, 3 Mar 2021; Item #6
  2. Treasury/OFAC IssuesCyber-related General License and related FAQs; Cyber-related Designations Updates; Yemen-related Designations; Ukraine-/Russia-related Designations; Non-Proliferation Designations and Designations Updates; Wednesday, 3 Mar 2021; Item #7
  3. Commerce/BIS: “Additions and Corrections of Certain Entities on the Entity List”; Thursday, 4 Mar 2021; Item #1
  4. USTR: “Joint US-UK Statement on Suspension of Large Civilian Aircraft Tariffs”; Thursday, 4 Mar 2021; Item #6
  5. UK ECJU: “Export Controls and Licensing Update”; Thursday, 4 Mar 2021; Item #1

 

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State/DDTC: International Traffic in Arms Regulations: Addition of Russia

(Source: State/DDTC)

 

On March 1, 2021, the Secretary of State determined pursuant to Section 306(a) of the Chemical and Biological Weapons Control and Warfare Elimination Act of 1991 (“CBW Act”) that the Government of Russia used chemical weapons in violation of international law or lethal chemical weapons against its own nationals.  As part of the Department’s  effort to address such use of chemical weapons, the Department will amend ITAR § 126.1 to include Russia in the list of countries subject to a policy of denial for exports of defense articles and defense services, with certain exceptions.   

An exception is being made to allow for case-by-case review of exports to Russia that support government space cooperation.  In addition, an exception, valid for six months from the date of the Secretary of State’s determination, is being made to allow for case-by-case review of exports to Russia when in support of commercial space launches.  Further, the Department is amending ITAR § 126.1(a) to allow exporters to use the exemptions provided in ITAR §§ 126.4(a)(2) and (b)(2) for exports to Russia when in furtherance of government space cooperation.

 

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Treasury/OFAC Issues Cyber-related General License and related FAQs; Cyber-related Designations Updates; Yemen-related Designations; Ukraine-/Russia-related Designations; Non-Proliferation Designations and Designations Updates

(Source:Dept. of Treasury, 2 Mar 2021)

 

Tuesday, the Department of the Treasury’s Office of Foreign Assets Control (OFAC) is issuing Cyber-related General License 1B “Authorizing Certain Transactions with the Federal Security Service” and amending three related Frequently Asked Questions (501502503).

In addition, OFAC has updated its Specially Designated Nationals and Blocked Persons List. For more information on today’s action, please visit this page.

 

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Commerce/BIS: “Additions and Corrections of Certain Entities on the Entity List”

(Source: Federal Register, 4 Mar 2021)

 

86 FR 12529: Rule

* AGENCY: Bureau of Industry and Security, Commerce.

* ACTION: Final rule.

* SUMMARY: This final rule amends the Export Administration Regulations (EAR) by adding fourteen entities to the Entity List. These fourteen entities have been determined by the U.S. Government to be acting contrary to the national security or foreign policy interests of the United States. These fourteen entities will be listed on the Entity List under the destinations of Germany, Russia, and Switzerland. This rule also corrects six existing entries to the Entity List, one under the destination of Germany and the other five under the destination of China.

* DATES: This rule is effective March 4, 2021.

 

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USTR: “Joint US-UK Statement on Suspension of Large Civilian Aircraft Tariffs”

(Source: USTR, 4 Mar 2021)

 

The United States and the United Kingdom today released a joint statement announcing a four-month suspension of tariffs related to the ongoing large civilian aircraft dispute.

“The United Kingdom and the United States are undertaking a four-month tariff suspension to ease the burden on industry and take a bold, joint step towards resolving the longest running disputes at the World Trade Organization.

“The United Kingdom ceased applying retaliatory tariffs in the Boeing dispute from January 1, 2021 to de-escalate the issue and create space for a negotiated settlement to the Airbus and Boeing disputes.

“The United States will now suspend retaliatory tariffs in the Airbus dispute from March 4, 2021, for four months. This will allow time to focus on negotiating a balanced settlement to the disputes, and begin seriously addressing the challenges posed by new entrants to the civil aviation market from non-market economies, such as China.

“This will benefit a wide range of industries on both sides of the Atlantic, and allow for focused settlement negotiations to ensure that our aerospace industries can finally see a resolution and focus on COVID recovery and other shared goals.”

 

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UK ECJU: “Export Controls and Licensing Update”

(Source: UK ECJU, 3 Mar 2021)

 

Page summary:
Guide to licensing procedure and other restrictions for export of controlled dual-use items, software and technology, goods for torture and radioactive sources.

Change made:
Updated to clarify that “You need a new licence, issued by an EU Member State for exporting dual-use items from the EU to Great Britain” and that The EU has added the UK as a permitted destination to their General Export Authorisation (GEA) EU001.

Read the guidance here.

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