The Daily Bugle Weekly Highlights: Week 1 (31 Dec 2018 – 4 Jan 2019)

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 6,500 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, Alexander P. Bosch, Vincent J.A. Goossen, and Alex Witt.

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. DHS/CBP Posts Notice on Section 301 Product Exclusions; The Daily Bugle; Monday, 31 Dec 2018, Item #3;
  2. Singapore Customs Announces TradeNet Extended Downtime on 13 Jan; The Daily Bugle; Monday, 31 Dec 2018, Item #5;
  3. Hong Kong/TID Posts Notice on Air Transshipment Cargo Exemption Scheme for Specified Strategic Commodities; The Daily Bugle; Wednesday, 2 Jan 2019, Item #4.
  4. DoD/DSS Posts Notice on Filling in the ‘Prime Contract Number’ Field in JPAS When Submitting Personnel Security Clearance Investigations; The Daily Bugle; Thursday, 3 Jan 2019, Item #3.
  5. DHS/CBP Posts Reminder on Ace Account Password Reset and Account Restoration Instructions; The Daily Bugle; Friday, 4 Jan 2019, Item #3.

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DHS/CBP Posts Notice on Section 301 Product Exclusions

(Source: CSMS #18-000757, 31 Dec 2018.)

Notice of Product Exclusions: China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation (Section 301)

BACKGROUND:

On December 28, 2018, the U.S. Trade Representative published Federal Register Notice 83 FR 67463 announcing the decision to grant certain exclusion requests from the 25% duty assessed on goods of China with an annual trade value of approximately $34 billion (Tranche 1), as part of the action in the Section 301 investigation of China’s acts, policies, and practices related to technology transfer, intellectual property, and innovation. The product exclusions announced in this notice will apply as of the July 6, 2018 effective date of the $34 billion action (see Federal Register 83 FR 28710), and will extend for one year after the publication of this notice.

At the conclusion of the government funding hiatus, CBP will issue instructions on entry guidance and implementation. Any updates to the Automated Customs Environment (ACE) will be implemented 10 business days after the shutdown has concluded. Until these updates are completed, entry and entry summaries must be submitted without the Chapter 99 product exclusion number referenced in 83 FR 67463. Entry and entry summaries will be rejected by ACE if the Chapter 99 product exclusion number referenced in 83 FR 67463 is transmitted.

Once CBP issues guidance and implements ACE enhancements, a Post Summary Correction (PSC) or a Protest may be submitted for a refund.

All questions related to Section 301 entry filing requirements should be emailed to traderemedy@cbp.dhs.gov. After the funding hiatus, questions from the importing community concerning ACE rejections should be referred to their ABI Client Representative.

– Related CSMS No. 18-000753, 18-000752, 18-000624

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Singapore Customs Announces TradeNet Extended Downtime on 13 Jan

(Source: Singapore Customs, 31 Dec 2018)

In addition to the usual housekeeping time for TradeNet on Sundays from 0400 hours to 0800 hours, we wish to inform you that Singapore Customs will be performing system maintenance work which will affect TradeNet from 0400 hours to 1200 hours on 13 January 2019.

During this period, all applications can still be submitted through TradeNet. These applications will not be processed, and processing of these applications will resume in TradeNet after 1200 hours on 13 January 2019.

Please bring the contents of this Notice to the attention of your staff. Kindly plan in advance and submit applications before the downtime, to minimise disruptions to your business operations. We apologise for any inconvenience caused.

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Hong Kong/TID Posts Notice on Air Transshipment Cargo Exemption Scheme for Specified Strategic Commodities

(Source: Hong Kong Trade and Industry Department, 2 Jan 2019.)

Introduction

The Trade and Industry Department implements the Air Transshipment Cargo Exemption Scheme for Specified Strategic Commodities (SCTREX) (referred below as “the Scheme”) to facilitate the air transshipment of specified strategic commodities through Hong Kong.  Registrants under the Scheme are, subject to certain conditions, exempted from licensing requirements under the Import and Export Ordinance (Cap. 60) and the Import and Export (Strategic Commodities) Regulations (Cap. 60G) (referred below as “the Regulations”) in respect of air transshipment cargo of specified strategic commodities.

Scope of Exemption

The Scheme applies to airlines, ground handling agents and freight forwarders successfully registered and granted with a Certificate of Exemption by the Director-General of Trade and Industry.

The Scheme covers specified strategic commodities listed in Schedule 1 to the Regulations, except products listed in Schedule 2, which are air transshipment cargo handled by registrants under the Scheme and remain within the confines of the cargo transshipment area of the Hong Kong International Airport pending onward flights.  The licensing requirements for the import and export of strategic commodities specified in Schedule 1 that are not on the air-to-air transshipment mode and those in Schedules 2, 3 and 4 of the Regulations are not affected by the Scheme.  Transshipment of strategic commodities not granted exemption under the Scheme must be covered by valid import and export license.

Valid Registrants

As at 1 January 2019, the following 19 companies are registered under the Scheme:

  COMPANY NAME SCTREX No.
1. CARGOLUX AIRLINES INTERNATIONAL S. A. 000001
2. HONG KONG AIR CARGO TERMINALS LIMITED 000003
3. CHINA AIRLINES LIMITED 000006
4. UPS PARCEL DELIVERY SERVICE LIMITED 000007
5. ASIA AIRFREIGHT TERMINAL COMPANY LIMITED 000009
6. JARDINE AIRPORT SERVICES LIMITED 000010
7. LINEHAUL EXPRESS (HK) LTD 000012
8. FEDERAL EXPRESS CORPORATION 000015
9. KOREAN AIR LINES CO., LTD 000016
10. TNT EXPRESS WORLDWIDE (HK) LTD 000017
11. JAPAN AIRLINES CO., LTD 000020
12. GATEWAY GLOBAL LOGISTICS (HK) LIMITED 000021
13. DHL AVIATION (HONG KONG) LIMITED 000022
14. FEDERAL EXPRESS (HONG KONG) LIMITED 000023
15. EXPEDITORS HONG KONG LIMITED 000025
16. KINTETSU WORLD EXPRESS (HK) LIMITED 000026
17. CATHAY PACIFIC SERVICES LIMITED 000027
18. HONG KONG AIR CARGO INDUSTRY SERVICES LIMITED 000028
19. VANTEC HITACHI TRANSPORT SYSTEM (HONG KONG) LIMITED 000029

Enquiry

If you have any enquiry concerning the Scheme, please contact the following officers or send email to us at stc@tid.gov.hk.

Name of Officer Telephone No.
Ms S N CHOI 2398 5577
Mr Daniel LEUNG 2398 5592

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DoD/DSS Posts Notice on Filling in the ‘Prime Contract Number’ Field in JPAS When Submitting Personnel Security Clearance Investigations

(Source: DoD/DSS, 3 Jan 2019.)

Beginning February 1, 2019, DSS may reject investigation submissions that don’t include the prime contract number, as shown on the associated industry guidance.  The prime contract number is a required field in the Joint Personnel Adjudication System for personnel security clearance investigations. Please contact the VROC Knowledge Center for questions (888) 282-7682, select option #2.

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DHS/CBP Posts Reminder on Ace Account Password Reset and Account Restoration Instructions

(Source: CSMS #19-000003, 3 Jan 2019.)

ACE users who are receiving error messages when logging in to the portal can reset their account passwords or restore account access using the instructions below.

Password recovery: You can retrieve a forgotten password through the ACE Secure Data Portal with an ACE user ID. Enter your UserID and select “Forgot Your Password?” If you’re unable to reset your own password, reach out to your company’s Account Owner or a designated proxy.

Account access is disabled/dormant: Contact your company’s Account Owner or a Proxy Account Owner to have your account unlocked. If you’re unable to reach them you may contact the ACE Help Desk by following the instructions on our ACE Support page.

More information can be found here.

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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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