[The Ex/Im Daily Update is published each business day ...

Wednesday, 17 July 2013

[The Ex/Im Daily Update is published each business day, providing notice of various changes to ATF, CR, EAR,
FACR, FTR, HTSUS, and ITAR regulations, plus news and events. See subscription information below.]

EX/IM ITEMS FROM TODAY'S FEDERAL REGISTER:
1. Commerce/BIS Information Systems Technical Advisory Committee to Meet 31 Jul to 1 Aug in Washington DC
2. Commerce/BIS Materials Technical Advisory Committee to Meet 8 Aug in Washington DC
3. Commerce/BIS Materials Processing Equipment Technical Advisory Committee to Meet 20 Aug in Washington

OTHER GOVERNMENT SOURCES:
4. Ex/Im Items Scheduled for Publication in Future Federal Register Editions
5. Commerce/BIS Denies Export Privileges of Harold Hanson for 15 Years
6. Commerce/BIS Denies Export Privileges of Yaming Nina Qi Hanson for 15 Years
7. DHS/ICE: ICE deports convicted arms trafficker to Republic of Georgia
8. Justice: Massachusetts Man Charged with Selling Counterfeit Semiconductors Intended for Use on Nuclear
Submarines
9. State/DDTC Posts Public Comments on Proposed Revision to USML Category XV

EX/IM MOVERS & SHAKERS:
10. Tim Rolland Moves to Tyco International

EDITOR'S NOTES:
11. Are Your Copies of Ex/Im Regs Up to Date? Latest Changes: ATF (22 Apr 2013), Customs (10 Jul 2013), EAR
(10 Jul 2013), FACR/OFAC (27 Jun 2013), FTR (14 Mar 2013), HTSUS (1 Jan 2013), and ITAR (8 Jul 2013)

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EXPANDED ITEMS:

1. Commerce/BIS Information Systems Technical Advisory Committee to Meet 31 Jul to 1 Aug in Washington DC
(Source: http://www.gpo.gov/fdsys/pkg/FR-2013-07-17/html/2013-17165.htm) [Excerpts.]

78 FR 42753: Information Systems Technical Advisory Committee; Notice of Partially Closed Meeting
* Agency: DEPARTMENT OF COMMERCE/Bureau of Industry and Security

The Information Systems Technical Advisory Committee (ISTAC) will meet on July 31 and August 1, 2013, 9:00
a.m., in the Herbert C. Hoover Building, Room 3884, 14th Street between Constitution and Pennsylvania Avenues
NW., Washington, DC. The Committee advises the Office of the Assistant Secretary for Export Administration on
technical questions that affect the level of export controls applicable to information systems equipment and technology.
Wednesday, July 31: Open Session

1) Welcome and Introductions
2) Elections of Chairs
3) Working Group Reports
4) Industry presentation: Acoustic Modems
5) New business
Thursday, August 1: Closed Session
The open session will be accessible via teleconference to 20 participants on a first come, first serve basis. To join the
conference, submit inquiries to Ms. Yvette Springer at [email protected], no later than July 24, 2013.
A limited number of seats will be available for the public session. Reservations are not accepted. To the extent time
permits, members of the public may present oral statements to the Committee. The public may submit written
statements at any time before or after the meeting. However, to facilitate distribution of public presentation materials to
Committee members, the Committee suggests that public presentation materials or comments be forwarded before the
meeting to Ms. Springer. . . . .

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For more information, call Yvette Springer at (202) 482-2813.
Dated: July 11, 2013.
Yvette Springer, Committee Liaison Officer.

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2. Commerce/BIS Materials Technical Advisory Committee to Meet 8 Aug in Wash DC
(Source: http://www.gpo.gov/fdsys/pkg/FR-2013-07-17/html/2013-17168.htm) [Excerpts.]

78 FR 42753: Materials Technical Advisory Committee; Notice of Partially Closed Meeting
* Agency: DEPARTMENT OF COMMERCE/Bureau of Industry and Security
Materials Technical Advisory Committee; Notice of Partially Closed Meeting

The Materials Technical Advisory Committee will meet on August 8, 2013, 10:00 a.m., Herbert C. Hoover Building,
Room 3884, 14th Street between Constitution & Pennsylvania Avenues NW., Washington, DC The Committee advises
the Office of the Assistant Secretary for Export Administration with respect to technical questions that affect the level
of export controls applicable to materials and related technology.
Agenda:
Open Session:

1) Opening Remarks and Introductions.
2) Remarks from BIS senior management and export control reform update including the proposed Routed Export
Transactions and Spacecraft Items.
3) Presentation ``Beyond Compliance: Nonproliferation and the Private Sector.''
4) Report of Composite Working Group and discussion on (1) feasibility of universal test for modulus and tensile
strength for 1C010 and other ECCNs (2) reclassification of fiber-filled pellets (3) LVS values for 1C008-10,1C210,
and 1C990.
5) Report of Biological and Pump/Valves Working Group.
6) Report on regime-based activities.
7) Update Feedback.
8) Public Comments and New Business.
9) Closed session to follow.
Closed Session: Discussion of matters determined to be exempt from the provisions relating to public meetings found
in 5 U.S.C. app. 2 Sec. Sec. l0(a)(1) and 10(a)(3).
The open session will be accessible via teleconference to 20 participants on a first come, first serve basis. To join the
conference, submit inquiries to Ms. Yvette Springer at [email protected], no later than August 1, 2013.
A limited number of seats will be available during the public session of the meeting. Reservations are not accepted.
To the extent time permits, members of the public may present oral statements to the Committee. Written statements
may be submitted at any time before or after the meeting. However, to facilitate distribution of public presentation
materials to Committee members, the materials should be forwarded prior to the meeting to Ms. Springer via email. . .
..
For more information, call Yvette Springer at (202) 482-2813.
Dated: July 11, 2013.
Yvette Springer, Committee Liaison Officer.

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3. Commerce/BIS Materials Processing Equipment Technical Advisory Committee to Meet 20 Aug in Washington
(Source: http://www.gpo.gov/fdsys/pkg/FR-2013-07-17/html/2013-17164.htm) [Excerpts.]

78 FR 42754: Materials Processing Equipment Technical Advisory Committee; Notice of Partially Closed Meeting
* Agency: DEPARTMENT OF COMMERCE/Bureau of Industry and Security

The Materials Processing Equipment Technical Advisory Committee (MPETAC) will meet on August 20, 2013,
9:00 a.m., Room 3884, in the Herbert C. Hoover Building, 14th Street between Pennsylvania and Constitution
Avenues NW., Washington, DC. The Committee advises the Office of the Assistant Secretary for Export
Administration with respect to technical questions that affect the level of export controls applicable to materials
processing equipment and related technology.
Agenda: Open Session

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1) Opening remarks and introductions.
2) Presentation of papers and comments by the Public.
3) Discussions on results from last, and proposals for next Wassenaar meeting.
4) Report on proposed and recently issued changes to the Export Administration Regulations.
5) Other business.
Closed Session: Discussion of matters determined to be exempt from the provisions relating to public meetings found
in 5 U.S.C. app. 2 Sec. Sec. 10(a)(1) and 10(a)(3).
The open session will be accessible via teleconference to 20
participants on a first come, first serve basis. To join the
conference, submit inquiries to Ms. Yvette Springer at
[email protected], no later than August 13, 2013.
A limited number of seats will be available for the public session. Reservations are not accepted. To the extent that
time permits, members of the public may present oral statements to the Committee. The public may submit written
statements at any time before or after the meeting. However, to facilitate the distribution of public presentation
materials to the Committee members, the Committee suggests that presenters forward the public presentation materials
prior to the meeting to Ms. Springer via email. . . . .
For more information, call Yvette Springer at (202) 482-2813.
Dated: July 11, 2013.
Yvette Springer, Committee Liaison Officer.

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4. Ex/Im Items Scheduled for Publication in Future Federal Register Editions
(Source: http://www.archives.gov/federal-register/)

* STATE DEPARTMENT; NOTICES; Innovation in Arms Control Challenge 2013

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5. Commerce/BIS Denies Export Privileges of Harold Hanson for 15 Years
(Source: http://efoia.bis.doc.gov/exportcontrolviolations/E2330.pdf)

* Respondent: Harold Hanson, Fairfax, VA
* Charges: 15 CFR 764.2(g), Misrepresentation and Concealment of Facts in the Course of an Investigation
* Fine or Civil Settlement: None
* Debarred or Suspended from Export Transactions: 15 Years
* Result of Voluntary Self-Disclosure: No
* Date of Order: 16 July 2013

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6. Commerce/BIS Denies Export Privileges of Yaming Nina Qi Hanson for 15 Years
(Source: http://efoia.bis.doc.gov/exportcontrolviolations/E2331.pdf)

* Respondent: Yaming Nine Qi Hanson, China
* Charges: 15 CFR 764.2(g), Misrepresentation and Concealment of Facts in the Course of an Investigation
* Fine or Civil Settlement: None
* Debarred or Suspended from Export Transactions: 15 Years
* Result of Voluntary Self-Disclosure: No
* Date of Order: 16 July 2013

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7. DHS/ICE: ICE deports convicted arms trafficker to Republic of Georgia
(Source: http://www.ice.gov/news/releases/1307/130716dallas.htm) [Excerpts.]

July 16. DALLAS – A Georgian national convicted of conspiring to traffic firearms in 2009 was deported Friday by
officers with U.S. Immigration and Customs Enforcement's (ICE) Enforcement and Removal Operations (ERO). Ioseb

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Kharabadze, 60, was escorted by ERO agents July 12 on a flight to Georgia and turned over to Georgian officials. ERO
Dallas encountered Kharabadze at the Dalby Correctional Facility in Post, Texas, Jan. 7.

According to court documents, Kharabadze was convicted in July 2007 by a jury following a one-month trial for
conspiring to smuggle surface-to-air missiles, rocket-propelled grenades, anti-tank missile systems, 120 mm mortar
launchers and other high powered weapons from Europe into the United States. Kharabadze was sentenced in March
2009 to 60 months for conspiring to traffic firearms and 48 months for brokering activities, to run consecutively.

Since Oct. 1, 2009, ERO has removed more than 646 foreign fugitives from the United States who were being sought
in their native countries for serious crimes, including kidnapping, rape and murder. ERO works with ICE Homeland
Security Investigations' Office of International Affairs, foreign consular offices in the United States and Interpol to
identify foreign fugitives illegally present in the country.

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8. Justice: Massachusetts Man Charged with Selling Counterfeit Semiconductors Intended for Use on Nuclear
Submarines
(Source: http://www.justice.gov/opa/pr/2013/July/13-crm-790.html) [Excerpts.]

Monday, July 15, 2013. Peter Picone, 40, of Methuen, Mass., has been charged with importing counterfeit
semiconductors from China for sale in the United States. The charges were announced today by Acting Assistant
Attorney General Mythili Raman of the Justice Department’s Criminal Division; Acting U.S. Attorney for the District
of Connecticut Deirdre M. Daly; Special Agent in Charge Bruce Foucart of U.S. Immigration and Customs
Enforcement (ICE) - Homeland Security Investigations (HSI) in Boston; Acting Special Agent in Charge of Defense
Criminal Investigative Service (DCIS) Northeast Field Office Craig W. Rupert; and Special Agent in Charge of the
Naval Criminal Investigative Service (NCIS) Northeast Field Office Cheryl A. DiPrizio.

The eight-count indictment charges Picone with conspiring to traffic in counterfeit goods, conspiring to traffic in
counterfeit military goods, trafficking in counterfeit goods, conspiring to commit wire fraud, wire fraud and conspiring
to commit money laundering. The indictment was returned by a federal grand jury in New Haven on June 25, 2013,
and was unsealed today.

The indictment charges that from February 2007 through April 2012, Picone, through two companies he owned and
operated, Tytronix Inc. and Epic International Electronics, purchased counterfeit semiconductors from sources in Hong
Kong and China. According to the indictment, Picone made false representations about the semiconductors and sold
them to customers throughout the United States, including companies believed by Picone to be defense contractors in
Connecticut and Florida. Certain semiconductors sold by Picone were intended for use on nuclear submarines.

“By allegedly purchasing and reselling counterfeit semiconductors for military applications, Peter Picone put personal
gain above the safety and well-being of dedicated U.S. servicemen and women,” said Acting Assistant Attorney
General Raman. “As charged in the indictment, Picone went to great lengths to conceal the true origin of counterfeit
semiconductors in order to sell the devices as seemingly legitimate and reliable components for use in nuclear
submarines and other complex machinery. The charges unsealed today demonstrate our steadfast commitment to
working with our law enforcement partners to prosecute counterfeiters and others who risk the security of the men and
women of the U.S. military.” . . . .

Picone was arraigned before U.S. Magistrate Judge Donna F. Martinez of the District of Connecticut in Hartford,
Conn., and was released on bond. Trial is scheduled for Sept. 9, 2013, before U.S. District Judge Alvin W. Thompson
in Hartford. If convicted of conspiracy to traffic in counterfeit goods, Picone faces a maximum penalty of five years in
prison. If convicted of conspiracy to traffic in counterfeit military goods, Picone faces a maximum term of 20 years in
prison. If convicted of trafficking in counterfeit goods, Picone faces a maximum term of 10 years in prison. If
convicted of conspiracy to commit wire fraud, or wire fraud, Picone faces a maximum penalty of 20 years in prison. If
convicted of conspiracy to commit money laundering, Picone faces a maximum term of 20 years in prison. The
indictment also seeks forfeiture of proceeds from illicit trafficking in counterfeit goods and wire fraud as well as the
seizure of the goods and any property involved in the money laundering conspiracy. . . . .

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9. State/DDTC Posts Public Comments on Proposed Revision to USML Category XV
(Source: http://pmddtc.state.gov/)

Public comments received on the proposed revision to Category XV are now available at:
http://pmddtc.state.gov/regulations_laws/documents/proposed_rules/Category_XV_Comments.2.pdf

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10. Ex/Im Movers & Shakers: Tim Rolland Moves to Tyco International
(Source: Tim Rolland, [email protected] )

Timothy M. Rolland, formerly with Northrop Grumman Corporation, has left Morgan Lewis LLP to join Tyco
International as Senior Corporate Counsel. Tim may be reached at 202-350-6915 or [email protected].

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11. Are Your Copies of Ex/Im Regs Up to Date? Latest Changes & Sources:
(Source: As indicated below.) The official versions of the following regulations are published annually in the U.S.
Code of Federal Regulations (C.F.R.), but are updated as amended in the Federal Register. Changes to applicable
regulations are listed below.

* ATF ARMS IMPORT REGULATIONS (ATF), Department of Justice, Bureau of Alcohol, Tobacco, Firearms, and
Explosives; 27 CFR Part 447-Importation of Arms, Ammunition, and Implements of War

- Last Amendment: 22 Apr 2013: 78 FR 23675-23677: 27 CFR Part 447; Importation of Defense Articles and
Defense Services--U.S. Munitions Import List (2011R-20P)

- Source: http://ecfr.gpoaccess.gov/cgi/t/text/text-idx?
c=ecfr&sid=0624fc9399af9afc346df6f1f00c88df&rgn=div5&view=text&node=27:3.0.1.2.2&idno=27

* CUSTOMS REGULATIONS (CR): 19 CFR, Ch. 1, Pts. 0-192
- Last Amendment: 10 Jul 2013: 78 FR 41299: 19 CFR Part 111: Customs Brokers; CFR Correction
- Source: http://ecfr.gpoaccess.gov/cgi/t/text/text-idx?

sid=7a725853611431bc58ba37d919f9324b&c=ecfr&tpl=/ecfrbrowse/Title19/19tab_02.tpl

* EXPORT ADMINISTRATION REGULATIONS (EAR): 15 CFR Subtit. B, Ch. VII, Pts. 730-774
- Last Amendments: 10 Jul 2013; 78 FR 41291-41293: 15 CFR Part 748; Additions to the List of Validated End-

Users in the People's Republic of China: Samsung China Semiconductor Co. Ltd. and Advanced Micro-Fabrication
Equipment, Inc., China

- Source: http://ecfr.gpoaccess.gov/cgi/t/text/text-idx?
sid=ae096b291da9d16eab0b4af95b5d5866&c=ecfr&tpl=/ecfrbrowse/Title15/15cfrv2_02.tpl#700

* FOREIGN ASSETS CONTROL REGULATIONS (OFAC FACR), 31 CFR, Parts 500-599, Embargoes, Sanctions,
Executive Orders

- Last Amendment: 27 Jun 2013; 78 FR 38574-38577: 31 CFR Parts 594, 595, and 597; Counter-Terrorism
Sanctions Regulations; Final Rule

- Source: http://ecfr.gpoaccess.gov/cgi/t/text/text-idx?
sid7512a3e262e688321f54bbe4ee1aff1d&c=ecfr&tpl=/ecfrbrowse/Title31/31cfrv3_02.tpl#500

* FOREIGN TRADE REGULATIONS (FTR): 15 CFR Part 30
- Last Amendment: 14 Mar 2013; 78 FR 16365-16391: 15 CFR Part 30; Foreign Trade Regulations; Final Rule
- Source: http://ecfr.gpoaccess.gov/cgi/t/text/text-idx?

c=ecfr&sid=e04a50b601e3e05b3a1e870e3843b757&tpl=/ecfrbrowse/Title15/15cfr30_main_02.tpl

* HARMONIZED TARIFF SCHEDULE OF THE UNITED STATES (HTS, HTSA or HTSUSA), 2013: 19 USC 1202
Annex. ("HTS" and "HTSA" are often seen as abbreviations for the Harmonized Tariff Schedule of the United States

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Annotated, shortened versions of "HTSUSA".)
- Last Amendment: 1 Jan 2013, with Harmonized System Update #1302 of 19 Feb 2013.
- Source: http://www.usitc.gov/tata/hts/bychapter/index.htm

* INTERNATIONAL TRAFFIC IN ARMS REGULATIONS (ITAR) 22 C.F.R. Ch. I, Subch. M, Pts. 120-130
- Latest Amendments:

8 Jul 2013; 78 FR 40921-40933: 22 CFR 120, 121, 123, and 125, Implementation of Export Control Reform re USML
Categories VI (Surface Vessels of War and Special Naval Equipment), VII (Ground Vehicles), XIII (Materials and
Miscellaneous Articles), and XX (Submersible Vessels and Related Articles)
8 Jul 2013; 78 FR 40630-40632: 22 CFR Part 123, International Traffic in Arms Regulations: Canadian Firearms
Components Exemption
- Source: http://ecfr.gpoaccess.gov/cgi/t/text/text-idx?
sid=6c0d30f40ed2aac29b20e86ead3a8861&c=ecfr&tpl=/ecfrbrowse/Title22/22cfrv1_02.tpl, and scroll down to
"SUBCHAPTER M". DDTC publishes a version at
http://www.pmddtc.state.gov/regulations_laws/itar_consolidated.html. Printed copies of the ITAR in several sizes are
available for purchase from SIA at http://www.siaed.org/en/catalogs/search.asp. "The Annotated ITAR" (Revised 8
July 2013), a reprint of ITAR containing the latest amendments, plus practice commentaries, summaries, Arms Export
Control Act, and a robust Index, is available in Word and PDF, free upon request from author Jim Bartlett at
[email protected].

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EDITORIAL POLICY:
* The Ex/Im Daily Update is emailed every business day to subscribers at government agencies and private sector
companies to inform readers of changes to various defense and high-tech trade laws and regulations. We check the
following websites daily: Federal Register, Congressional Record, Commerce/AES, Commerce/BIS, DHS/CBP,
DOJ/ATF, DoD/DSS, DoD/DTSA, State/DDTC, Treasury/OFAC, White House, and similar websites of Australia,
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<http://publish.ndia.org/Resources/ExportImportComplianceResources/DailyBugle/Pages/default.aspx>.
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