REGULATORY COMPLIANCE NEWSLETTER – Vol. 0328-2008

Today's Items:

1. Focusing on the ITAR—A Seminar Series
2. Implementing Arrangements for the US-Australia Treaty on Defense Trade Cooperation
3. Import Administration--Withdrawal of Regulations Governing the Treatment of Subcontractors (``Tolling'' Operations)
4. CBP--China-U.S. Join Forces on Trade Security Pilot Program
5. DDTC--Update to Firearms and Ammunition Manual
6. BIS--Establishment of Online Export Control Training for Exporters
7. ITAR--Amendment to the International Traffic in Arms Regulations: North Atlantic Treaty Organization (NATO)
8. ITAR--Amendment to the International Traffic in Arms Regulations: Sri Lanka
9. Additional Designation of an Entity Pursuant to Executive Order 13382
10. OFAC--Watch List Updates
11. Denied Parties Screening Update
12. Conferences

NEWS:

Focusing on the ITAR--A Seminar Series—Training in Defense Trade Regulatory Requirements and Practices

The Department of State (DOS) issued the document Implementing Arrangements for the US-Australia Treaty on Defense Trade Cooperation

The Import Administration issued an interim final rule for the purpose of withdrawing its regulation governing the treatment of tollers or subcontractors for purposes of determining export price, constructed export price, fair value, and normal value in antidumping duty proceedings. The interim final rule is effective on March 28, 2008. Although the amendment made by this Interim Final Rule is effective on March 28, 2008, Import Administration seeks public comments. To be assured of consideration, written comments must be received not later than April 28, 2008.

China-U.S. Join Forces on Trade Security Pilot Program--Cooperation between U.S. CBP and the General Administration of China Customs to enhance global supply chain security took a step forward last week with the start of a pilot validation program in China. The pilot involved three Customs-Trade Partnership Against Terrorism importer partners whose supply chains predominately originate in China . The U.S. companies were invited to participate in the pilot based upon several factors including volume, product type and location of their supply chains in China . They voluntarily agreed to participate in the pilot with the concurrence of both administrations. China Customs headed the validation initiative using the C-TPAT minimum security criteria as a guide and with CBP supply chain specialists providing technical assistance. The companies had been receiving minimum program benefits due to C-TPAT’s previous inability to validate the security procedures they have in place. Now C-TPAT will use the information gathered to decide whether they can receive a higher level of benefits. Both agencies will jointly evaluate the pilot and determine next steps. C-TPAT is an important layer in CBP’s cargo enforcement strategy. Through this initiative, CBP is asking businesses to ensure the integrity of their security practices and communicate and verify the security guidelines of their business partners within the supply chain.

The Directorate of Defense Trade Controls (DDTC) has issued an Update to Firearms and Ammunition Manual

The Bureau of Industry and Security (BIS) Establishes Online Export Control Training for Exporters--The Bureau of Industry and Security (BIS) announced the creation of the BIS Online Training Room, an innovative new resource for companies interested in learning about U.S. dual-use export control regulations. The Training Room will act as an organized, online repository of training modules and webinars, amplifying and augmenting current BIS exporter outreach programs. As part of its ongoing efforts to improve outreach, BIS will continue to create and supplement the materials regularly. The initial launch includes the first half of the Essentials of Export Controls seminar that BIS currently offers around the country, as well as five pre-recorded webinars covering a variety of topics. The training modules are presented in a video streaming format. The pre-recorded BIS webinars were conducted over the past year and focus on specific export control issues. The BIS Online Training Room can be found at: http://www.bis.doc.gov/seminarsandtraining/seminar-training.htm

The Department of State (DOS) is amending the ITAR, to clarify United States policy to allow for reexports or retransfers of U.S.-origin components incorporated into a foreign defense article to the North Atlantic Treaty Organization (NATO), and its agencies, as well as to NATO member governments. Effective Date: March 26, 2008.

The Department of State (DOS) issued a final rule that states that, in accordance with the Department of State, Foreign Operations, and Related Programs Appropriations Act, 2008 (Div. J, Pub. L. 110-161), the DOS is amending the ITAR regarding Sri Lanka , to make it United States policy to deny licenses and other approvals to export or otherwise transfer defense articles and defense services to Sri Lanka except, on a case-by-case basis, for technical data or equipment made available for the limited purposes of maritime and air surveillance and communications. Effective Date: March 24, 2008.

The Office of Foreign Assets Control (OFAC) is publishing the name of one newly-designated entity whose property and interests in property are blocked pursuant to Executive Order 13382 of June 28, 2005, "Blocking Property of Weapons of Mass Destruction Proliferators and Their Supporters." The designation by the Director of OFAC of the entity identified in this notice pursuant to Executive Order 13382 is effective on March 12, 2008. The designee is as follows:

Entity: 1. FUTURE BANK B.S.C.

The Office of Foreign Assets Control (OFAC), Department of Treasury announced revisions to their watch list on March 19, 2008. Entities have been added in the notice and information on existing parties on the watch list has been updated with new addresses and branch offices.

DENIED PARTIES SCREENING UPDATE:

The following entities were added to the Denied Persons List. The full list of changes can be accessed at the OCR web site.

• Al-Shabaab , AKA/DBA: a.k.a. Al-Shabab; Shabaab; The Youth; Mujahidin Al-Shabaab Movement; Mujahideen Youth Movement; Mujahidin Youth Movement; MYM; Harakat Shabab al-Mujahidin; Hizbul Shabaab; Hisbul Shabaab; Al-Shabaab al-Islamiya; Youth Wing; Al-Shabaab al-Islaam; Al-Shabaab al-Jihaad; The Unity of Islamic Youth
  Privileges affected: Designated as a Foreign Terrorist Organization (FTO) pursuant to Section 219 of the Immigration and Nationality Act. Also in accordance with Section 1(b) of Executive Order 13224 of September 23, 2001, as amended by Executive Order 13268 of July 2, 2002, and Executive Order 13284 of January 23, 2003, it is hereby designated as a Specially Designated Global Terrorist (SDGT). (Federal Register Dated 03/18/2008 page 14550).
  Effective date: 02/26/08, Expiration date: UNTIL RESCINDED
  F.R. Date: 03/18/2008, Citation: 73 FR 14550
• Balli Group PLC , 5 Stanhope Gate, London, W1K 1AH, UNITED KINGDOM, AKA/DBA: a.k.a. Balli Group PLC; Balli Aviation; Balli Holdings; Vahid Alaghband; Hassan Alaghband; Blue Sky One Ltd.; Blue Sky Two Ltd.; Blue Sky Three Ltd.; Blue Sky Four Ltd.; Blue Sky Five Ltd.; Blue Sky Six Ltd.; Blue Airways; Mahan Airways
  Privileges affected: For a period of 180 days beginning March 21, 2008, the above party may not, directly or indirectly, participate in any way in any transaction involving any commodity, software or technology (hereinafter collectively referred to as item) exporter or to be exported from the United States that is subject to the Regulations, or in any other activity subject to the Regulations.
  Effective date: 03/21/08, Expiration date: 9/20/2008
  F.R. Date: 03/21/2008, Citation: 73 FR 15130
• Blue Airways , 8/3 D Angaght Street, 376009 Yerevan, ARMENIA , AKA/DBA: a.k.a. Balli Group PLC; Balli Aviation; Balli Holdings; Vahid Alaghband; Hassan Alaghband; Blue Sky One Ltd.; Blue Sky Two Ltd.; Blue Sky Three Ltd.; Blue Sky Four Ltd.; Blue Sky Five Ltd.; Blue Sky Six Ltd.; Blue Airways; Mahan Airways
  Privileges affected: For a period of 180 days beginning March 21, 2008, the above party may not, directly or indirectly, participate in any way in any transaction involving any commodity, software or technology (hereinafter collectively referred to as item) exporter or to be exported from the United States that is subject to the Regulations, or in any other activity subject to the Regulations.
  Effective date: 03/21/08, Expiration date: 9/20/2008
  F.R. Date: 03/21/2008, Citation: 73 FR 15130

CONFERENCES:

BIS

Title: US Reexport Controls Seminar
Date: March 25 - 26, 2008
Location: Tokyo, Japan

Title: Complying with US Export Controls
Date: March 26 - 27, 2008
Location: San Antonio, TX

Title: US Reexport Controls Seminar
Date: March 28, 2008
Location: Osaka, Japan

Title: US Reexport Controls Seminar
Date: March 31 - April 1, 2008
Location: Hong Kong

Title: Complying with US Export Controls
Date: April 2 - 3, 2008
Location: Denver, CO

Title: US Reexport Controls Seminar
Date: April 3 - 4, 2008
Location: Singapore

International Trade Compliance Strategies, LLC -- http://www.itcstrategies.com/

Unz & Co. Seminars – http://www.unzco.com/

Title: Import Operations & Procedures, Tariff Classification Under the Harmonized System, U.S. Customs Audit & Compliance Assessment, International Terms of Sale, Payment & Letter of Credit
Date: March 31 - April 4
Location: Chicago, IL

Title: Export Operations & Procedures, Export Controls and Licensing, NAFTA and Other Free Trade Agreements, Export Management
Date: April 7-11
Location: Charlotte, NC

Title: Export Operations and Procedures, Export Controls and Licensing, Introduction to the International Traffic in Arms Regulations (ITAR), ITAR Licensing Workshop
Date: April 14 – 18
Location: New Orleans, LA

Title: Import Operations & Procedures, Tariff Classification Under the Harmonized System, U.S. Customs Audit & Compliance Assessment, International Terms of Sale, Payment & Letter of Credit
Date: April 21-25
Location: Saddle Brook, NJ

Title: Classification Under the Schedule B
Date: April 22
Location: Stamford, CT

DL Exports International

For a list of seminars please visit http://www.dlexports.com/

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Disclaimer:

This newsletter is not intended to provide legal guidance. Adherence to this decision does not relieve the exporter of the statutory responsibilities of complying with the applicable statutes, regulations, policies and procedures of the U.S. Government

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