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The Daily Bugle Weekly Highlights: Week 18 (27 April-1 May 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. 1. Commerce/BIS: “Expansion of Export, Reexport, and Transfer (in-Country) Controls for Military End Use or Military End Users in the People’s Republic of China, Russia, or Venezuela”; The Daily Bugle; Tuesday, 28 April 2020; Item #1.
        2. Commerce/BIS: “Modification of License Exception Additional Permissive Reexports”; The Daily Bugle; Tuesday, 28 April 2020; Item #2.
        3. Treasury/OFAC: “Violation issued to American Express Travel Related Services Company”; The Daily Bugle; Thursday, 30 April 2020; Item #4.
        4. EU Commission Informs WTO on New Set of Coronavirus Measures; The Daily Bugle; Thursday, 30 April 2020; Item #5.
        5. State/DDTC Issues Six-Month Suspensions of Durations of Several ITAR Requirements; The Daily Bugle; Friday, 1 May 2020; Item #3

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        Commerce/BIS: “Expansion of Export, Reexport, and Transfer (in-Country) Controls for Military End Use or Military End Users in the People’s Republic of China, Russia, or Venezuela”

        (Source: Federal Register, 28 Apr 2020) [Excerpts]

        85 FR 23459: Expansion of Export, Reexport, and Transfer (in-Country) Controls for Military End Use or Military End Users in the People’s Republic of China, Russia, or Venezuela; Final Rule

        * AGENCY: Bureau of Industry and Security, Commerce.
        * ACTION: Final rule.
        * SUMMARY: The Bureau of Industry and Security (BIS) is amending the Export Administration Regulations (EAR) to expand license requirements on exports, reexports, and transfers (in-country) of items intended for military end use or military end users in the People’s Republic of China (China), Russia, or Venezuela. Specifically, this rule expands the licensing requirements for China to include “military end users,” in addition to “military end use.” It broadens the list of items for which the licensing requirements and review policy apply and expands the definition of “military end use.” Next, it creates a
        new reason for control and the associated review policy for regional stability for certain items exported to China, Russia, or Venezuela, moving existing text related to this policy. Finally, it adds Electronic Export Information filing requirements in the Automated Export System for exports to China, Russia, and Venezuela. This rule supports the objectives discussed in the National Security Strategy of the United States.

        * DATES: This rule is effective June 29, 2020.
        * FOR FURTHER INFORMATION CONTACT: Eileen Albanese, Director, Office of National Security and Technology Transfer Controls, Bureau of Industry and Security, Department of Commerce. Phone: (202) 482-0092; Fax: (202) 482-3355; Email: rpd2@bis.doc.gov. For emails, include “Military End
        Use or User” in the subject line.

        **********
        Commerce/BIS: “Modification of License Exception Additional Permissive Reexports”

        (Source: Federal Register, 28 Apr 2020) [Excerpts]

        85 FR 23496: Modification of License Exception Additional Permissive Reexports; Proposed Rule.

        * AGENCY: Bureau of Industry and Security, Commerce.
        * ACTION: Proposed rule.
        * SUMMARY: In this rule, the Bureau of Industry and Security (BIS) proposes to amend the Export Administration Regulations (EAR) by modifying License Exception Additional Permissive Reexports (APR). Specifically, BIS is proposing to remove provisions which authorize reexports of certain national security-controlled items on the Commerce Control List (CCL) to gain better visibility into transactions of national security or foreign policy interest to the United States.

        * DATES: Comments must be received by BIS no later than June 29, 2020.
        * ADDRESSES: Comments on this rule may be submitted to the Federal rulemaking portal (www.regulations.gov). The regulations.gov ID for this rule is: BIS-2020-0010. All relevant comments (including any personally identifying information) will be made available for public inspection and copying.
        * FOR FURTHER INFORMATION CONTACT: Eileen Albanese, Director, Office of National Security and Technology Transfer Controls, Bureau of Industry and Security, Department of Commerce, Phone: (202) 482-0092 or Email: eileen.albanese@bis.doc.gov.
        .

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        Treasury/OFAC: “Violation issued to American Express Travel Related Services Company”

        (Source: Treasury/OFAC, 30 Apr 2020)

        The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has issued a Finding of Violation to American Express Travel Related Services Company (“Amex”) for violations of the Weapons of Mass Destruction Proliferators Sanctions Regulations, 31 C.F.R. Part 544. OFAC found that Amex issued a prepaid card to, and processed 41 transactions totaling $35,246.82 on behalf of, Gerhard Wisser, a Specially Designated National (SDN). These violations were the result of human error and screening system defects. Amex remediated and disclosed the violations to OFAC. There is no monetary penalty associated with a Finding of Violation.

        For more information, please visit the following web notice
        **********

        EU Commission Informs WTO on New Set of Coronavirus Measures

        (Source: European Commission, 27 Apr 2020)

        In a continued commitment to transparency, the EU informed the WTO about coronavirus-related EU and Member States initiatives on 24 April. These include measures to address the economic consequences of the pandemic. This follows the notification on a first round of measures on 7 April this year.

        The WTO has become a focal point for transparency on countries’ trade measures related to the coronavirus. It is tracking WTO Members’ reported measures on a dedicated webpage. In addition, the next edition of the WTO Director General’s Trade Monitoring Report, to be issued before the summer break, will include information on coronavirus related measures.

        The EU will continue to make sure that any coronavirus related trade measures are targeted, proportionate, temporary and transparent – consistent with the commitments made by countries of the G20 group.

        Trade measures shared with the WTO:

        (1) New Commission Regulation on Exports subject to an export authorisation;
        (2) Temporary Framework for State aid measures to support the economy in the current COVID-19 outbreak;
        (3) Notice regarding the consequences of the COVID-19 outbreak on anti-dumping and anti-subsidy investigation;
        (4) Guidance to Member States concerning foreign direct investment and free movement of capital from third countries, and the protection of Europe’s strategic assets;
        (5) EU Member States measures in reaction to COVID-19 related to exports of essential products; services and investment; and economic support.

        **********
        State/DDTC Issues Six-Month Suspensions of Durations of Several ITAR Requirements

        (Source: Items scheduled for future Federal Register)

        22 CFR Parts 120, 122, 123, 124, and 129, International Traffic in Arms Regulations: Notification of Temporary Suspension, Modification, or Exception to Regulations

        *AGENCY: Dep’t of State/DDTC
        *ACTION: Temporary suspensions, modifications, and exceptions. *SUMMARY: The Department of State is issuing this document to inform the public of certain temporary suspensions, modifications, and exceptions for the durations described herein to several provisions of the International Traffic in Arms Regulations (ITAR). These actions are taken in order to ensure continuity of operations within the Directorate of Defense Trade Controls (DDTC) and among entities registered with DDTC pursuant to the ITAR during the current SARS-COV2 public health emergency.
        DATES: This document is issued [INSERT DATE OF PUBLICATION IN THE FEDERAL REGISTER].
        FOR FURTHER INFORMATION CONTACT: Sarah Heidema, Office of Defense Trade Controls Policy, U.S. Department of State, telephone (202) 663-1282, or e-mail DDTCResponseTeam@state.gov., ATTN: Notice of Suspension, Modification, or Exception.

        *SUPPLEMENTARY INFORMATION: In order to ensure continuity of operations within the Directorate of Defense Trade Controls (DDTC) and among entities registered with DDTC pursuant to part 122 of the International Traffic in Arms Regulations (ITAR), DDTC provides notice of the temporary suspension, modification, or exception to several ITAR provisions. These actions are being taken pursuant to ITAR § 126.2, which allows for the temporary This document is scheduled to be published in the Federal Register on 05/01/2020 and available online at federalregister.gov/d/2020-08839, and on govinfo.gov suspension or modification of provisions of the ITAR, and ITAR § 126.3, which allows for exceptions to provisions of the ITAR. These actions are in the interest of the security and foreign policy of the United States. Further, they are warranted as a result of the exceptional and undue hardships and risks to safety caused by the public health emergency related to the SARSCOV2 pandemic.
        The President declared a national emergency on March 13, 2020, as a result of this public health crisis. [Footnote: Proclamation 9994 of March 13, 2020, 85 FR 15337 (Mar. 18, 2020).]

        (1) As of February 29, 2020, a temporary suspension, modification, and exception to the requirement in ITAR parts 122 and 129 to renew registration as a manufacturer, exporter, and/or broker and pay a fee on an annual basis by extending ITAR registrations with an expiration date of February 29, March 31, April 30, May 31, or June 30, 2020 – for two (2) months from the original date of expiration.

        (2) As of March 13, 2020, a temporary suspension, modification, and exception to the limitations on the duration of ITAR licenses and agreements contained in ITAR parts 120 through 130, including but not necessarily limited to ITAR §§ 123.5(a), 123.21(a), and 129.6(e), to extend any license or agreement that expires between March 13, 2020 and May 31, 2020 – for six (6) months from the original date of expiration so long as there is no change to the scope or value of the authorization and no Name/Address changes are required. This six (6) month extension is warranted in light of the unique challenges applicants face in the current environment when attempting to coordinate with U.S. and foreign business partners regarding the scope of applications.

        (3) As of March 13, 2020, a temporary suspension, modification, and exception to the requirement that a regular employee, for purposes of ITAR § 120.39(a)(2), work at the 1 Proclamation 9994 of March 13, 2020, 85 FR 15337 (Mar. 18, 2020). company’s facilities, to allow the individual to work at a remote work location, so long as the individual is not located in Russia or a country listed in ITAR § 126.1. This suspension, modification, and exception shall terminate on July 31, 2020, unless otherwise extended in writing.

        (4) As of March 13, 2020, a temporary suspension, modification, and exception to authorize regular employees of licensed entities who are working remotely in a country not currently authorized by a technical assistance agreement, manufacturing license agreement, or exemption to send, receive, or access any technical data authorized for export, reexport, or retransfer to their employer via a technical assistance agreement, manufacturing license agreement, or exemption so long as the regular employee is not located in Russia or a country listed in ITAR § 126.1. This suspension, modification, and exception shall terminate on July 31, 2020, unless otherwise extended in writing. (Authority: 22 CFR 126.2 and 126.3)

        Zachary A. Parker, Director, Office of Directives Management, U.S. Department of State.

        Billing Code: 4710-25 [FR Doc. 2020-08839 Filed: 4/30/2020 8:45 am; Publication Date: 5/1/2020]

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