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The Daily Bugle Weekly Highlights: Week 26 (22-26 June 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. UK Gov Announces New Guidance on the UK’s Sanction Regime; Wednesday, 24 June 2020; Item #9.
  2. DHS/CBP: “Updated Duty Deferral Create/Update”; The Daily Bugle; Thursday, 25 June 2020; Item #7.
  3. EU Council: “Declaration on the Alignmentοf Certain Third Countries Concerning Restrictive Measures Against Syria”; The Daily Bugle; Thursday, 25 June 2020; Item #10.
  4. USTR: “Comments Requested on Extension of 301 Exclusions”; The Daily Bugle; Friday, 26 June 2020; Item #2.
  5. Commerce/Census: “EAR 758.1 Revised to /require EEI Filing for Exports to China, Russia, or Venezuela Regardless of Value”; The Daily Bugle; Friday, 26 June 2020; Item #6

 

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UK Gov Announces New Guidance on the UK’s Sanction Regime

(Source: UK ECJU, 23 Jun 2020)

 

On 23th of June, the UK Government realesed a guidance on the Uk’s sanction regime which comes into force from 11pm on 31 December 2020.

– UK sanctions on Lebanon

– UK sanctions on the Central African Republic

– UK sanctions on Nicaragua

– UK sanctions on Bosnia and Herzegovina

 

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DHS/CBP: “Updated Duty Deferral Create/Update”

(Source: DHS/CBP), 24 Jun 2020)

 

The Duty Deferral Create/Update CATAIR has been updated for the following items.

Adjusted to support duty deferral for both NAFTA and USMCA.

Updated Table 2 – Trade Agreement / Special Program Claim Codes to reflect the NAFTA and USMCA SPI codes (S, S+, CA, MX)

Updated Table 3 – Accounting Class Codes to reflect accounting class code 105 description of Softwood Lumber.

 

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EU Council: “Declaration on the Alignment οf Certain Third Countries Concerning Restrictive Measures Against Syria”

(Source: Council of the European Union, 25 Jun 2020)

 

On 28 May 2020, the Council adopted Decision (CFSP) 2020/719 amending Council Decision 2013/255/CFSP.

The Council Decision renewed the existing restrictive measures for a further twelve months, until 1 June 2021, and amended the list of persons and entities subject to restrictive measures as set out in the Annex I to Decision 2013/255/CFSP.

The Candidate Countries Republic of North Macedonia, Serbia, Montenegro and Albania and the EFTA countries Iceland, Liechtenstein and Norway, members of the European Economic Area, as well as Ukraine, the Republic of Moldova and Georgia align themselves with this Council Decision.

They will ensure that their national policies conform to this Council Decision.

The European Union takes note of this commitment and welcomes it.

 

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USTR: “Comments Requested on Extension of 301 Exclusions”

(Source: Federal Register, 26 Jun 2020) [Excerpts]

 

85 FR 38482: Notice

* AGENCY: Office of the United States Trade Representative.

* ACTION: Notice and request for comments.

* SUMMARY: On August 20, 2019, at the direction of the President, the U.S. Trade Representative determined to modify the action being taken in the Section 301 investigation of China’s acts, policies, and practices related to technology transfer, intellectual property, and innovation by imposing additional duties of 10 percent ad valorem on goods of China with an annual trade value of approximately $300 billion. The additional duties on products in List 1, which is set out in Annex A of that action, became effective on September 1, 2019. On August 30, 2019, at the direction of the President, the U.S. Trade Representative determined to increase the rate of the additional duty applicable to the tariff subheadings covered by the action announced in the August 20 notice from 10 to 15 percent. On January 22, 2020, the U.S. Trade Representative determined to reduce the rate from 15 to 7.5 percent. The U.S. Trade Representative initiated a product exclusion process in October 2019, and as of June 12, 2020, had issued five product exclusion notices under this action. The product exclusions granted under these notices are scheduled to expire on September 1, 2020. The U.S. Trade Representative has decided to consider a possible extension for up to 12 months of particular exclusions granted under these initial five product exclusion notices. The Office of the U.S. Trade Representative (USTR) invites public comment on whether to extend particular exclusions.

* DATES: July 1, 2020: The public docket on the web portal at https://comments.USTR.gov will open for parties to submit comments on the possible extension of particular exclusions.

July 30, 2020 at 11:59 p.m. ET: To be assured of consideration, submit written comments on the public docket by this deadline.

* ADDRESSES: You must submit all comments through the online portal: https://comments.USTR.gov.

* FOR FURTHER INFORMATION CONTACT: Associate General Counsel Philip Butler or Assistant General Counsel Benjamin Allen at (202) 395-5725.

 

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Commerce/Census: “EAR § 758.1 Revised to /require EEI Filing for Exports to China, Russia, or Venezuela Regardless of Value”

(Source: U.S. Census Bureau, 26 Jun 2020)  

 

On Tuesday, April 28, 2020, the Department of Commerce, Bureau of Industry and Security published a final rule (https://www.govinfo.gov/content/pkg/FR-2020-04-28/pdf/2020-07241.pdf) that will become effective on Monday, June 29, 2020.  As a result of this rule, the following changes to the filing requirements in the Automated Export System (AES) will be made in order for exporters and authorized agents to successfully report electronic export information. Effective on Monday, June 29, 2020

  • The Electronic Export Information (EEI) filing requirement for items subject to Supplement No. 2 to Part 744 destined for China, Russia, and Venezuela will become effective on June 29, 2020.  Review Supplement No. 2 to Part 744:https://www.govinfo.gov/content/pkg/FR-2020-04-28/pdf/2020-07241.pdf#page=6
     
  • EEI filing for exports to China, Russia, or Venezuela of items controlled by Export Control Classification Numbers (ECCNs) not listed in Supplement No. 2 to Part 744 will not be required until Sunday, September 27, 2020.  

Background on the EEI filing Requirement to China, Russia, Venezuela

This rule expands Electronic Export Information (EEI) filing requirements in the Automated Export System (AES) for exports to China, Russia, or Venezuela. Existing provisions exempt exporters from both filing EEI for many shipments valued under $2,500 (unless an export license is required) and from entering the ECCN in the EEI when the reason for control is only anti-terrorism (AT).

To promote transparency with respect to shipments to these destinations, this rule revises § 758.1 of the EAR to require filing for items on the Commerce Control List (CCL) destined to China, Russia, or Venezuela regardless of the value of the shipment, unless the shipment is eligible for License Exception GOV.

In addition, even if no license is required to ship a CCL item to those destinations, the EEI filing must include the correct ECCN regardless of reason for control. Certain exemptions from filing found in both the EAR and Foreign Trade Regulations (see § 758.1(c) of the EAR), such as for personally-owned baggage, are retained in this rule.

For the entirety of the rule, visit https://www.govinfo.gov/content/pkg/FR-2020-04-28/pdf/2020-07241.pdf

For general questions regarding AES, contact the Economic Management Division (EMD) at the Bureau of the Census at 1-800-549-0595, option 1.

A complete list of all of the AES License Type codes and reporting instructions for these types can be found at https://www.cbp.gov/trade/aes/aestir/appendices

For questions regarding these upcoming AES changes, contact the Bureau of Industry and Security at:  

   – Outreach and Educational Services Division (located in Washington, DC) (202) 482-4811

   – Office of Technology Evaluation (located in Washington, DC): (202) 482-4933

   – Western Regional Office (located in Irvine, CA) (949) 660-0144

   – Northern California branch (located in San Jose, CA) (408) 998-8806

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