26-0602: Tuesday's "Export/Import Daily Bugle"

TUESDAY, 2 JUNE 2026

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ITEMS FROM THE FEDERAL REGISTER

OTHER GOVERNMENT SOURCES

NEWS

OPINION

TRAINING EVENTS & CONFERENCES

EX/IM MOVERS & SHAKERS

EDITOR'S NOTES

1. CBP Seeks Comments on CBP Forms for Cargo Manifest/Declaration, Stow Plan, Container Status Messages and Importer Security Filing

(Source: 91 Fed Reg 32982, 2 Jun 2026)

2. Future Federal Registers (No items of interest.)

(Source: Future Federal Register)

3. CBP Cargo Systems Messages

(Source: DHS/CBP/CSMS)

4. Commerce/BIS (Nothing new.)

(Source: Commerce/BIS)

5. DoD/DCSA Announcements (Nothing new.)

(Source: Defense Counterintelligence and Security Agency)

6. DoD/DSCA Updates SAMM with Memos on Building Partner Capacity and Taiwan Security Cooperation Initiative

(Source: Defense Security Cooperation Agency)

DSCA posts Policy Memo 26-70 Building Partner Capacity Clarification Updates. This policy memorandum updates the Security Assistance Management Manual (SAMM) with clerical, administrative, and clarification changes for Building Partner Capacity content. This memo:

DSCA posts Policy Memo 26-82 Establish Program Code "ZH" for Joint Acquisitions for Defense Enhancements - Taiwan Security Cooperation Initiative. The semi-permanent program code "ZH" is assigned to track funds received under the authority of Section 1208 of the National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2025 (P.L. 118-159), which authorizes the Secretary of War to accept foreign partner contributions to fund Taiwan Security Cooperation Initiative (TSCI) and other security cooperation activities. Joint Acquisitions for Defense Enhancements - TSCI ("JADE-T") is established as the program name for tracking foreign partner contributions in support of TSCI.

This memo adds code ZH to:

7. OMB/OIRA BIS and DDTC Reviews (Nothing new.)

(Source: OMB Office of Information and Regulatory Affairs)

8. State/DDTC (Nothing new.)

(Source: State/DDTC)

9. Treasury/OFAC: Settlement Agreement between the U.S. Department of the Treasury's Office of Foreign Assets Control, and FTI Consulting, Inc.

(Source: Treasury/OFAC) [Excerpts]

The U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) has announced a settlement with FTI Consulting, Inc. ("FTI"). FTI agreed to remit $1,050,000 to settle its potential civil liability for its apparent violations of OFAC sanctions targeting Russia's financial sector. Between April 2019 and May 2021, FTI indirectly dealt in prohibited debt of VTB Bank OAO, a Russian state-owned bank on OFAC's Sectoral Sanctions Identification List, on six occasions.

The settlement amount reflects OFAC's determinations that FTI's conduct was non-egregious but not voluntarily self-disclosed. See settlement HERE.

10. UK ECJU: (No relevant items)

(Source: UK ECJU) [Excerpts]

11. US Trade Representative (No relevant items.)

(Source: USTR Press Office)

12. White House Executive Proclamation of 1 June 2026: "FURTHER ADJUSTING THE TARIFF REGIMES FOR IMPORTS OF ALUMINUM, STEEL, AND COPPER INTO THE UNITED STATES"

(Source: The White House) [Excerpts]

. . . I determine that it is necessary and appropriate to modify, as further described below, the tariff regimes for metal products imposed in Proclamation 9704, as amended, Proclamation 9705, as amended, and Proclamation 10962, as amended. See full proclamation HERE.

13. African Business: "US Could Rescind Sanctions on Eritrea in Major Reset"

(Source: African Business) [Excerpts]

The United States is considering lifting sanctions on Eritrea, as Washington DC seeks to forge a closer relationship with the isolated East African country in the hope of securing stronger commercial and geopolitical influence in the region. . . .

During the 2020-22 war in Tigray, when Eritrea fought alongside Ethiopia against the Tigray People's Liberation Front (TPLF), the United Nations alleged the Eritrean military had engaged in summary executions and the abduction of Eritrean refugees in the region.

In September 2021 the Biden administration imposed sanctions against high-ranking individuals in Eritrea's ruling party, the People's Front for Democracy and Justice, as well as other government and military officials. The US government cited "widespread violence, atrocities and serious human rights abuse" in Tigray as the reason for the sanctions.

In early May, however, an internal US State Department document seen by Reuters suggested that it would be rescinding the sanctions, though it has not yet been confirmed precisely when this will happen.

Critical minerals interest. . . .

14. Diaz: "Understanding U.S. Customs Statute of Limitations Waivers: What Importers Need to Know"

(Source: Customs & International Trade Law Blog) [Excerpts]

When U.S. Customs and Border Protection (CBP) seeks to collect unpaid duties, taxes, or penalties, it generally must act within a defined window of time. But that window can be extended — and often is. Understanding how CBP statute of limitations (SOL) waivers work is essential for any importer navigating a customs audit or penalty proceeding.

The Basic Rule: A Five-Year Limitation Period. Under 19 U.S.C. § 1621, CBP has five years from the date of a violation to bring an action to recover unpaid duties or assess a penalty. This limitation period is designed to provide finality and protect importers from indefinite exposure. Once the period lapses, CBP's ability to collect is generally barred.

What Is a Statute of Limitations Waiver? . . .

Why CBP Requests Waivers: . . .

CBP Guidance on Requesting Waivers: . . .

Key Considerations Before Signing: Signing a waiver is a significant legal decision. Before agreeing, importers should carefully consider: . . .

Key Takeaway: CBP statute of limitations waivers are a common tool in customs enforcement — but they are not without risk. A well-negotiated waiver can create space for a favorable resolution; a poorly reviewed one can extend your exposure unnecessarily. If CBP has contacted you about an audit or penalty proceeding and a waiver request is on the table, seek qualified legal guidance before responding.

Learn More:

15. ECD: "New BIS Guidance Covers Advanced Chip Exports to Companies Outside China"

(Source: Export Compliance Daily) [Excerpts of subscription site.]

The Bureau of Industry and Security issued new guidance this week to clarify that it's still enforcing a China-related chip license requirement that some in industry may have believed was suspended along with the Biden-era AI diffusion rule.

The guidance, issued May 31, said exporters need a license to send certain advanced chips to companies with parents that are headquartered in Macau and Country Group D:5 nations, including China, even if the company is located outside those countries.

BIS said it published the clarification because it was receiving questions about whether the agency was still enforcing that license requirement -- which was first introduced in 2023 -- in light of BIS announcing last year that it didn't plan to enforce the January 2025 Biden-era AI diffusion rule. . . .

BIS added that its non-enforcement policy for the AI diffusion rule "with respect to the destination-based license requirements for these advanced computing items" applies only to items that aren't destined to companies with parents that are headquartered in Country Group D:5 or Macau. . . .

A Nvidia spokesperson said: "The BIS guidance doesn't impact our business and simply reaffirms that NVIDIA's current sales and vetting process is correct -- licenses are required to ship controlled products to [Chinese] headquartered companies."

16. Expeditors News: "USTR Announces Section 301 Investigation of Vietnam"

(Source: Expeditors News) [Excerpts]

In a press release published on May 29, 2026, the Office of the U.S. Trade Representative (USTR) announced that it was initiating a Section 301 investigation of Vietnam to determine "whether Vietnam's persistent failure to resolve long-standing concerns about intellectual property (IP) protection and enforcement is unreasonable or discriminatory and burdens or restricts U.S. commerce."

This investigation will review Vietnam's "acts, policies, and practices related to IP protection and enforcement and assess their impact on U.S. commerce." Once the investigation is finished, the USTR will consult with the President on any potential responsive action.

USTR's press release and a link to the Federal Register Notice can be found HERE. Comments can be submitted HERE:

17. Shapiro: "The Metal Duties Get a Temporary Trim: Trump Reduces Section 232 Tariffs for Certain Equipment"

(Source: Shap Flash) [Excerpts]

The Trump administration has made another adjustment to its Section 232 tariff program, announcing temporary reductions on certain metal-containing products beginning June 8, 2026. The changes will remain in place through December 31, 2027, and are intended to encourage investment in U.S. manufacturing and industrial capacity.

Please refer to Subchapter III of chapter 99 of the HTSUS ANNEX IV and the lists of products provided in ANNEX I-A, ANNEX I-B, ANNEX II, and ANNEX III of Proclamation 11021 as modified.

For importers, the biggest impact may be on agricultural equipment, residential HVAC systems, and certain industrial machinery (ANNEX I-C). . . .

The proclamation also introduces an incentive for manufacturers that rely heavily on U.S.-produced metals. Products containing at least 85% U.S.-melted and poured steel, or U.S.-smelted and cast aluminum, by weight may qualify for a reduced 10% tariff rate. . . .

18. ST&R Trade Report: "Legislative Update: Origin, Trade Promotion"

(Source: Sandler, Travis & Rosenberg Trade Report) [Excerpts]. Contact: [email protected], 1-305-894-1035

Origin. The Country of Origin Labeling Online Act (H.R. 9057, introduced May 29 by Rep. Gimenez, R-Fla.) would require online sellers to clearly disclose a product's country of origin and the seller's principal place of business.

"Currently, many products sold in stores must disclose their country of origin, but those requirements are not consistently applied to online sales," a press release from Gimenez's office explained.

Trade Promotion. The Building Overseas Opportunities and Strategic Trade for American Businesses Act (H.R. 9062, introduced May 29 by Rep. Kim, R-Calif.) would strengthen the State Department's commercial diplomacy efforts by: . . .

19. Washington Tariff & Trade: "OFAC Settles With FTI Consulting Over Indirect Dealings in VTB Debt"

(Source: Washington Tariff & Trade Newsletter) [Excerpts of paywall publication.]

The Treasury Department's Office of Foreign Assets Control said Monday that FTI Consulting Inc. agreed to pay $1.05 million to settle potential civil liability for six apparent violations of U.S. sanctions targeting Russia's financial sector.

OFAC said FTI, a Washington-based global advisory firm, indirectly dealt in prohibited debt of VTB Bank OAO between April 2019 and May 2021 while supporting VTB in Singapore litigation through a law-firm engagement. VTB, a Russian state-owned bank, was then subject to Directive 1 under Executive Order 13662, which barred U.S. persons from dealings in new debt of more than 14 days' maturity.

According to OFAC, FTI structured the engagement so that it invoiced the law firm rather than VTB directly. But the law firm's obligation to pay FTI depended on VTB first paying the law firm, and OFAC said the unpaid invoices therefore functioned as new debt extended for VTB's benefit. . . .

OFAC treated the case as non-egregious but not voluntarily self-disclosed. The agency said the $1.05 million settlement was aggravated above the $525,000 base penalty to promote compliance among similarly situated firms. Aggravating factors included FTI's awareness of sanctions risks, senior-manager involvement, repeated warning signs, and the harm caused by extending long-term credit to VTB.

The agency credited FTI for cooperating, tolling the statute of limitations, providing contemporaneous documentation, waiving privilege, and enhancing its sanctions compliance program.

OFAC said the case underscores that U.S. persons may not do indirectly what they are prohibited from doing directly, and that debt restrictions can be triggered when a sanctioned party fails to make expected payments within the permitted tenor.

20. ECD: "AUKUS Partners Commit to Shrinking List of Excluded Technologies"

(Source: Export Compliance Daily) [Excerpts of subscription site]

Defense leaders from Australia, the U.K. and the U.S. agreed at a meeting May 30 in Singapore to take "expeditious and practical steps" to narrow the list of technologies excluded from the AUKUS security partnership's defense trade license exemption, according to a joint statement released by the Pentagon. . . .

The statement follows testimony by Fleet White, President Donald Trump's nominee to be assistant secretary of state for political-military affairs, who told a Senate panel in April that he would work with lawmakers to shorten the excluded technologies list.

The joint statement also revealed the first "signature project" under the AUKUS Pillar II technology development collaboration effort, which will involve developing payloads and enabling systems for uncrewed undersea vehicles.

21. Torres: "CMMC Assessments and the Hidden Risk of ITAR Violations"

(Source: Torres Insights) [Excerpts]

For many contractors within the Defense Industrial Base, Cybersecurity Maturity Model Certification (CMMC) assessments are becoming far more than cybersecurity hygiene exercises.

As companies strive to become CMMC compliant, they are increasingly uncovering facts suggesting potential violations of export control laws, including the International Traffic in Arms Regulations (ITAR), administered by the Directorate of Defense Trade Controls under the U.S. Department of State, and the Export Administration Regulations (EAR), administered by the Bureau of Industry and Security under the U.S. Department of Commerce.

CMMC assessments require organizations to identify where Controlled Unclassified Information (CUI) resides, who can access it, how it moves through the organization, and whether third parties or cloud providers may have visibility into sensitive information.

For companies handling ITAR technical data, these discoveries can create significant legal exposure extending well beyond cybersecurity compliance concerns. A company may successfully implement many NIST SP 800-171 controls, as required by the Defense Federal Acquisition Regulation Supplement (DFARS), and still face substantial liability under the ITAR, or EAR, if controlled technical data or technology has been exported or accessed without authorization.

22. Volkov: "Are Your Distributors Getting You Into Sanctions Trouble?"

(Source: Volkov Law) [Excerpts]

Are you ready to navigate the risky waters of third-party pirates? Most sanctions violations do not happen because companies intentionally want to evade and violate sanctions. They happen because companies trust the wrong third party.

The epsilon and elf enforcement matters, which I frequently speak about, demonstrate that companies get in trouble when they have weak distributor oversight, poor intermediary screening, inadequate beneficial ownership review, and failure to monitor diversion risks.

Regulators expect companies to understand counterparties, trace payment flows, identify transshipment risks, and monitor red flags continuously.

Third parties create the highest sanctions exposure because they operate beyond direct company control and visibility. If your company cannot explain exactly who your third parties are doing business with, regulators are going to find you liable.

Listen to podcast on this topic HERE.

23. FD Associates Presents: "ITAR FMS Exemption" Webinar, 9 June

(Source: Jenny Hahn, [email protected])

24. Global Training Center Presents: "Building an ITAR Compliance Program" 3 August

(Source: Global Training Center)

25. List of Export/Import Job Openings

(Source: Editor)

RECENT:

26. Bartlett's Unfamiliar Quotations

(Source: Brainy Quotes)

Martha Washington (Martha Washington; 2 Jun 1731 - 22 May 1802; was the wife of George Washington, the first President of the United States. Although the title was not coined until after her death, Martha Washington served as the inaugural First Lady of the United States.)

"I am determined to be cheerful and happy in whatever situation I may find myself, for I have learned that the greater part of our misery or unhappiness is determined not by our circumstance but by our disposition."

Marquis de Sade (Donatien Alphonse François, Marquis de Sade; 2 Jun 1740 – 2 Dec 1814; was a French nobleman, revolutionary politician, philosopher, writer, and rapist, famous for his libertine sexuality. Sade is best known for his erotic works depicting sexual fantasies with an emphasis on violence. The words sadism and sadist are derived from his name.)

"The more defects a man may have, the older he is, the less lovable, the more resounding his success."

"Lust is to the other passions what the nervous fluid is to life; it supports them all, lends strength to them all ambition, cruelty, avarice, revenge, are all founded on lust."

Thomas Hardy (2 Jun 1840 – 11 Jan 1928; was an English poet and novelist. He gained fame as the author of novels such as Far from the Madding Crowd, The Mayor of Casterbridge, Tess of the d'Urbervilles, and Jude the Obscure.)

"There is a condition worse than blindness, and that is, seeing something that isn't there."

"Do not do an immoral thing for moral reasons." (Corollary to "The ends justify the means" from Nicolo Mchiavelli)

"The value of old age depends upon the person who reaches it. To some men of early performance, it is useless. To others, who are late to develop, it just enables them to finish the job."

27. Today in History

(Source: History Channel)

28. Do You Need to Update Your Daily Bugle Profile?

(Source: Editor)

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29. Are your copies of regulations current? See latest amendments here:

(Source: Editor)

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. The latest amendments are listed below.