The Daily Bugle Weekly Highlights: Week 6 (5-9 Feb 2018)

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 8,000 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, Alexander P. Bosch, Vincent J.A. Goossen, and John W. Bartlett.

We check the following sources daily: Federal Register, Congressional Record, Commerce/AES, Commerce/BIS, DHS/CBP, DOJ/ATF, DoD/DSS, DoD/DTSA, DOE/NRC, 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.

 

  1. State/DDTC Posts Notice DTrade Profile Update; The Daily Bugle; Monday, 5 February 2018, ITEM #5;
  2. Germany BAFA Publishes Export Control Newsletter, Feb 2018; The Daily Bugle; Monday, 5 February 2018, ITEM #7;
  3. DHS/CBP Announces COAC Meeting on 28 Feb in Miami; The Daily Bugle; Tuesday, 6 February 2018, ITEM #1;
  4. Commerce/Census: “New Schedule B Numbers Have Arrived”; The Daily Bugle; Tuesday, 6 February 2018, ITEM #3;
  5. USTR Amends HTSUS, Makes Technical Modifications to Subchapter III of Chapter 99; The Daily Bugle; Thursday, 8 February 2018, ITEM #1; and,
  6. DHS/CBP Posts Reminder Concerning ACE Deployment G, Release 4 on 24 Feb; The Daily Bugle; Friday, 9 February 2018; Item #6.

Highlight 1

State/DDTC Posts Notice DTrade Profile Update

(Source: State/DDTC, 2 Feb 2018.)

DTrade users can now view their registered email address on DTrade. Please log in and verify your email address. If you would like to change or update your DTrade email address please follow these instructions: Update Your DTrade Email Address Instruction Form.

Highlight 2

Germany BAFA Publishes Export Control Newsletter, Feb 2018

(Source: German BAFA, 5 Feb 2018.)

The German Federal Office for Economic Affairs and Export Control (BAFA) has published the February 2018 Issue of its Export Control Newsletter.

European Union Law/Embargo Measures

Democratic People’s Republic of Korea

With the Council Implementing Regulation (EU) 2018/12 of 8 January 2018 [OJ (EU) No. L 4/1 of 9 January 2018][/OJ] implementing the Regulation (EU) 2017/1509 concerning restrictive measures against the Democratic People’s Republic of Korea, sixteen persons and one entity were included in the list of persons and entities subject to restrictive measures.

Moreover, the Council Implementing Regulation (EU) 2018/53 of 12 January 2018 [OJ (EU) No. L 10/1 of 13 January 2018][/OJ] added four vessels to Annex XIV to Regulation (EU) 2017/1509. Annex XIV designates vessels which are denied access to EU ports and shall be confiscated.

Guinea-Bissau

In accordance with the Council Implementing Regulation (EU) 2018/31 of 10 January 2018 [OJ (EU) No. L 6/1 of 11 January 2018][/OJ] implementing Article 11(1) of Regulation (EU) No. 377/2012 concerning restrictive measures directed against certain persons, entities and bodies threatening the peace, security or stability of the Republic of Guinea-Bissau, one person is removed from the list of individuals subject to restrictive measures.

Somalia

The Council Implementing Regulation (EU) 2017/2415 of 21 December 2017 [OJ (EU) No. L 343/33 of 22 December 2018][/OJ] implementing Article 13 of Regulation (EU) No. 356/2010 imposing certain specific restrictive measures directed against certain natural or legal persons, entities or bodies, in view of the situation in Somalia amended the exemption from the asset freeze and from the prohibition of making available other economic resources as contained in Article 4 (1) of Regulation (EU) No. 356/2010. This amendment refers to the “United Nations Humanitarian Response Plan for Somalia” instead of the previous reference to the “UN Consolidated Appeal for Somalia”.

Al-Qaida und ISIL

In accordance with the Commission Implementing Regulation (EU) 2018/50 of 11 January 2018 [OJ (EU) No. L 7/35 of 12 January 2018][/OJ] amending for the 280th time Regulation (EC) No. 881/2002 imposing certain specific restrictive measures directed against certain persons and entities associated with the ISIL (Da´esh) and Al-Qaida organisations, one entry was removed from and one entry was amended in the list set out in Annex I to Regulation (EC) No. 881/2002.

Correction of Annex I to EC Dual-use regulation

As of 16 December 2017, the EU Commission revised Annexes I, IIa to IIg and IV to Regulation (EC) No. 428/2009 (EC dual-use regulation) with the Delegated Regulation (EU) No. 2017/2268 of 26 September 2017. Due to editorial errors, a corrigendum of Annex I was necessary. It was published in the Official Journal of the European Union No. L 12, page 62 on 17 January 2018.

National Law

The Eleventh Ordinance amending the Foreign Trade and Payments Ordinance of 13 December 2017 [FG AT, 20.12.2017, V1][/FG] provided for additions to the regulations governing the arms embargo in sections §§ 74 and 75 AWV as well as an exemption to the arms embargo in sect. 76 AWV.

The background is the necessary national adaptation due to the arms embargo imposed on Venezuela [Decision (CFSP) No. 2017/2074][/Decision], the strengthening of existing sanctions against the Democratic People’s Republic of Korea [Regulations (EU) No. 2017/1548, 2017/1836 and 2017/1858][/Regulations], as well as the derogation from the EU arms embargo with regard to the delivery to Russia of special fuels required for the ExoMars space programme of the European Space Organisation ESA [Decision (CFSP) 2017/2214][/Decision]. In addition, an adjustment of customs rules of procedure was necessary for reasons of legal clarity. Furthermore, the investment control process was simplified for the notification and initiation of review procedures.

Inside BAFA 

12th Day of Export Control

On 22 and 23 March 2018 the 12th Export Control Day (ECD) on the topic “Challenges in Foreign Trade Control” will be held in Berlin. The Export Control Day, an exclusive interface between practice and policy, usually marks the start of the year for the export control community.

This year again, high-level representatives of business, politics, the legal profession and science will discuss about current and future developments of foreign trade law in the German capital. It also includes the debate about the US export administration regulations which may affect German companies, in part, due to their extra-territorial validity. This issue will be covered by the Bureau of Industry and Security within the framework of a keynote speech titled “US Export Control”.

A particular focus will be on the increasingly complex requirements on the internal compliance program “ICP”. To implement the applicable regulations is a special challenge to German enterprises. Therefore the issue “Compliance” will be explained in detail in the course of this year’s panel discussion attended by representatives of practice and politics, i. a. Dr. Rolf Raum, presiding judge of the 1st criminal panel of the Federal Court of Justice (BGH), who recommended in a judgement last year to take into account efficient compliance management systems as a mitigating factor.

The ECD offers traditionally a good opportunity to enter into a dialogue with the participants and to raise relevant questions. The link for registration to ECD and the preliminary programme are published at BAFA’s web sites BAFA Internet site.

Highlight 3

DHS/CBP Announces COAC Meeting on 28 Feb in Miami

(Source: Federal Register, 6 Feb 2018.) [Excerpts.]

83 FR 5268-5269: Commercial Customs Operations Advisory Committee (COAC)

* AGENCY: U.S. Customs and Border Protection (CBP), Department of Homeland Security (DHS).

* ACTION: Committee management; notice of Federal advisory committee meeting.

* SUMMARY: The Commercial Customs Operations Advisory Committee (COAC) will hold its quarterly meeting on Wednesday, February 28, 2018, in Miami, Florida. The meeting will be open to the public.

* DATES: The COAC will meet on Wednesday, February 28, 2018, from 1:00 p.m. to 5:00 p.m. EST. Please note that the meeting may close early if the committee has completed its business.

* ADDRESSES: The meeting will be held at the DoubleTree Hotel, 711 NW 72nd Avenue, Miami, FL 33126. For information on facilities or services for individuals with disabilities or to request special assistance at the meeting, contact Ms. Florence Constant-Gibson, Office of Trade Relations, U.S. Customs & Border Protection, at (202) 344-1440 as soon as possible.

Pre-Registration: Meeting participants may attend either in person or via webinar after pre-registering using one of the methods indicated below:

For members of the public who plan to attend the meeting in person, please register by 5:00 p.m. EST February 27, 2018, either online here; by email to tradeevents@dhs.gov; or by fax to (202) 325-4290. You must register prior to the meeting in order to attend the meeting in person.

For members of the public who plan to participate via webinar, please register online here by 5:00 p.m. EST, February 27, 2018. …

* FOR FURTHER INFORMATION CONTACT: Ms. Florence Constant-Gibson, Office of Trade Relations, U.S. Customs and Border Protection, 1300 Pennsylvania Avenue NW, Room 3.5A, Washington, DC 20229; telephone (202) 344-1440; facsimile (202) 325-4290; or Mr. Bradley Hayes, Executive Director and Designated Federal Officer at (202) 344-1440.

* SUPPLEMENTARY INFORMATION: …

Agenda

The COAC will hear from the following subcommittees on the topics listed below and then will review, deliberate, provide observations, and formulate recommendations on how to proceed:

(1) The Trusted Trader Subcommittee will present an update from the C-TPAT Minimum Security Criteria Working Group on its recommendations regarding CBP’s plans to roll out new C-TPAT criteria. The subcommittee will also provide an update on the progress on the Trusted Trader Strategy.

(2) The One U.S. Government Subcommittee will continue discussions on the progress of the Fish & Wildlife Service Working Group and will present the white paper on the Harmonized Tariff Schedule project. The subcommittee will also discuss an update from CBP’s Trade Transformation Office on ACE Deployment G Release 4 and also from the Technical and Operational Outages Working Group.

(3) The Exports Subcommittee will discuss the final work of the Export Manifest Working Group, which has been developing comprehensive recommendations on the following topics: Timelines, filing regime, targeting regime, hold issuance and shipment interception process, and an account-based penalties regime. There will also be an update on the automated export manifest pilots, and on progress in implementing a post-departure filing pilot as part of the ocean pilot.

(4) The Trade Modernization Subcommittee will discuss the International Engagement and Trade Facilitation Working Group’s efforts to prioritize the recommendations it made in 2017. The subcommittee will discuss the establishment of the Regulation Modernization Working Group and its efforts to identify and prioritize areas of regulations administered by CBP that can be reformed. In addition, the subcommittee will discuss the establishment of the Trade Facilitation and Trade Enforcement Act (TFTEA) Educational Mandate Working Group that will identify educational opportunities as referenced in Section 104 of TFTEA. Finally, the subcommittee will discuss the progress being made in the e-Commerce Working Group.

(5) The Global Supply Chain Subcommittee will present the status of a pilot that will test the utilization of existing Automated Commercial Environment (ACE) automation in the pipeline mode of transportation. The committee will also discuss the progress of the Global Supply Chain Subcommittee’s Emerging Technologies Working Group. The subcommittee will discuss the activities of the newly formed In-Bond Working Group that will focus on identifying issues within the scope of the “Changes to the In-Bond Process” final rule published in the Federal Register on September 28, 2017 regarding their implementation.

(6) The Trade Enforcement & Revenue Collection (TERC) Subcommittee will provide necessary updates from the Anti-Dumping and Countervailing Duty, Bond, Forced Labor and Intellectual Property Rights Working Groups.

Meeting materials will be available by February 23, 2018 here.

Dated: January 31, 2018.

Bradley F. Hayes, Executive Director, Office of Trade Relations.

Highlight 4

Commerce/Census: “New Schedule B Numbers Have Arrived”

(Source: Global Reach Blog, 5 Feb 2018.)

The Schedule B commodity classification codes for export have been updated for 2018. Codes are updated every January and July at the 10-digit level. In this blog, we will explore three resources available on our website to help you navigate these updates. All resources can be found online.

Schedule B Book

From our web site the new 2018 Schedule B book is available in the red box labeled “Browse” in HTML and PDF formats. Simply click on the link “Look through HTML or PDF versions of Schedule B book content” next to 2018 to browse section and chapter notes and Schedule B numbers by chapter.

All current and historic codes added or removed from the Schedule B going back to the last major revision, in January 2017, can be found in the “Add/Delete List” under “Browse chapters.”

Obsolete Codes List

Outdated Schedule B codes are available in the red box labeled “Obsolete Codes.” The “Obsolete to New” list is a quick way to see which codes are no longer valid, starting January 2018, and which new codes replaced them.

Notice that from 2016 forward, there were obsolete codes in both January and July. Before 2016, the Schedule B numbers were only updated annually.

Schedule B Search Engine

The third resource available is the Schedule B Search Engine.

Type a Schedule B number into the search engine, and if it appears, then the number is still valid. However, if the number is outdated, the search engine will show “No Results” for the code.

For more information on the new Schedule B numbers, visit International Trade online; call the International Trade Help Line at 800-549-0595, Option 2 for Commodity Classification Assistance; or email eid.scheduleb@census.gov.

Highlight 5

USTR Amends HTSUS, Makes Technical Modifications to Subchapter III of Chapter 99

(Source: Federal Register, 8 Feb 2018.) [Excerpts.]

83 FR 5674: Technical Corrections to the Harmonized Tariff Schedule of the United States

* AGENCY: Office of the United States Trade Representative.

* ACTION: Notice.

* SUMMARY: The United States Trade Representative (USTR) is making technical modifications to subchapter III of chapter 99 of the Harmonized Tariff Schedule of the United States (HTSUS) to correct errors and omissions in the Annex to a Presidential Proclamation issued on January 23, 2018, concerning imports of large residential washers and covered parts.

* DATES: The modifications and corrections are effective with respect to articles entered or withdrawn from warehouse for consumption, on or after the dates set forth in each item in the annex to this notice. …

* SUPPLEMENTARY INFORMATION: … Effective with respect to articles entered or withdrawn from warehouse for consumption, on or after 12:01 a.m., eastern standard time, on February 7, 2018, U.S. Note 17(f) to subchapter III of chapter 99 of the Harmonized Tariff Schedule of the United States is modified:

(1) By deleting the phrase “, the foregoing which incorporate, at a minimum, (A) a side wrapper, (B) a base and (C) a drive hub” in subdivision (1);

(2) by deleting the word “and” at the end of subdivision (2);

(3) by renumbering subdivision (3) as subdivision (4); and

(4) by inserting the following new subdivision (3) in numerical order: “(3) all assembled baskets provided for in subheading 8450.90.60 and designed for use in the washing machines defined in subdivision (c) of this note, which incorporate, at a minimum: (A) a side wrapper, (B) a base and (C) a drive hub; and”.

Jamieson Greer, Chief of Staff, Office of the United States Trade Representative.

Highlight 6

DHS/CBP Posts Reminder Concerning ACE Deployment G, Release 4 on 24 Feb

(Source: CSMS #18-000127, 9 Feb 2018.)

On 24 February 2018, CBP will deliver ACE Deployment G, Release 4. This deployment will include:

– Drawback (Core and TFTEA)

– Liquidation

– Reconciliation

– Cuban ABI Entries

– Updates to eBond Functionality

Details and additional resources may be found in the ACE Deployment G, Release 4 Information Notices posted to CBP.gov at the links listed at the bottom of this message.

Deployment Support Call:

Following the deployment, CBP’s Trade Transformation Office (TTO) will host a daily support call from February 26, 2018 to March 2, 2018 between 2:00 PM ET and 3:00 PM ET to answer questions related to the February 24th deployment.

– Line (877) 336-1828 / PC: 6124214

In addition, CBP will host a separate daily support call focused on Drawback issues only from February 26, 2018 to March 2, 2018 between 3:00 PM ET and 4:00 PM ET.

– Line (877) 336-1829 / PC 4840827

ACE Deployment G, Release 4 Information Notices:

Drawback Information Notice

Liquidation Information Notice

Reconciliation Information Notice

Cuban Entries and eBond Updates

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About the Author

Alexander Bosch

Alexander P. Bosch, Program Manager. Alexander Bosch has, due to his multidisciplinary academic background, a good overview of how the world of trade compliance is constructed. He is responsible for the drafting of engagement proposals, writing policies and procedures and designing an Internal Compliance Program, performing compliance assessments, audits, investigations related to (potential) export control violations, and is assistant editor of FCC’s daily newsletter, The Export/Import Daily Update (“The Daily Bugle”). In addition, Alexander plays a key role in the development and teaching of FCC’s training programs, and the Executive Masters in International Trade Compliance (EMITC) program, which FCC has set up in cooperation with the University of Liverpool London Campus. Alexander previously was responsible for a project for the Dutch government in which he assessed the effects of the U.S. Export Control Reform (ECR) upon the Dutch government and industry. He has earned his Master’s degree in International Relations from the University of Groningen and has written his master-thesis on the subject of European defense cooperation.

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