26-0622: Monday's "Export/Import Daily Bugle"

FEDERAL REGISTER

OTHER U.S. GOVERNMENT SOURCES

NEWS

OPINION

EX/IM MOVERS & SHAKERS

EDITOR'S NOTES

1. ATF Publishes Notice of List of Explosive Materials

(Source: 91 FR 37142, 22 Jun 2026)

2. Future Federal Register

(Source: Future Federal Register)

Federal Acquisition Regulation: Revolutionary Federal Acquisition Regulation Overhaul; Scheduled Pub. Date: 06/23/2026. Permalink and Permalink; Revolutionary Overhaul, Parts 3 and 49: Permalink; Revolutionary Overhaul, Parts 6, 7, 10, 18, 26, 37, and 41: Permalink

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 (Nothing new.)

(Source: Defense Security Cooperation Agency)

7. GSA: FAR Class Deviation for FAR Part 10 in Support of Executive Order 14275, "Restoring Common Sense to Federal Procurement"

(Source: GSA.GOV Policy-Regulations, 22 Jun 2026) [Excerpts] [Editor's Notes: See related Federal Register items to be published tomorrow listed in above in Item #2.]

MEMORANDUM FOR GSA CONTRACTING ACTIVITIES
SUBJECT: FAR Class Deviation for FAR Part 10 in Support of Executive Order 14275, Restoring Common Sense to Federal Procurement

1) Purpose
This memorandum approves a class deviation to Federal Acquisition Regulation (FAR) part 10 for purposes of implementing the Federal Acquisition Regulatory Council's (the Council's) model deviation text to FAR Part 10.

2) Background
Executive Order (E.O.) 14275, Restoring Common Sense to Federal Procurement, signed April 15, 2025, mandates a comprehensive review and simplification of the FAR.
The FAR is being updated to:

This project is referred to as the Revolutionary FAR Overhaul (RFO) initiative. This initiative will make the FAR more concise, understandable, and focused on core procurement requirements.

3) Summary of Changes
FAR Part 10, concerning Market Research, has been updated to offer acquisition teams more flexibility in their research methods:

Statutory requirements retained in the RFO FAR part 10 model deviation include, but are not limited to, the following:

8. Justice Dept (Nothing new.)

(Source: U.S. Attorney’s Office)

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

(Source: OMB Office of Information and Regulatory Affairs)

10. State/DDTC (Nothing new.)

(Source: State/DDTC)

11. Treasury/OFAC Issues Iran-related General License

(Source: Treasury/OFAC, 22 Jun 2026) [Excerpts]

The Department of the Treasury's Office of Foreign Assets Control (OFAC) has issue Iran General License X, "Authorizing the Production, Delivery and Sale of Crude Oil, Petrochemical Products, and Petroleum Products of Iranian-Origin through August 21, 2026." For more information on this specific action, visit THIS PAGE.

12. UK Export Control Joint Unit (No relevant items.)

(Source: UK ECJU)

13. US Trade Representative Initiates Section 301 Investigation of Germany's Underpayment for Innovative Pharmaceutical Products

(Source: USTR Press Office) [Excerpts]

U.S. Trade Representative Jamieson Greer initiated an investigation under Section 301 of the Trade Act of 1974 against Germany. This investigation will seek to determine whether persistent underpayment for innovative pharmaceutical products by Germany is unreasonable or discriminatory and burdens or restricts U.S. commerce. . . .

"Fighting the war against disease is a shared burden across wealthy nations," said U.S. Department of Health and Human Services Secretary Robert F. Kennedy, Jr. "The United States is calling on Germany to pay its fair share for the innovative treatments its people use. . . .

14. White House Executive Actions (No relevant items.)

(Source: The White House)

15. Bloomberg: "US tells ASML It's Concerned One of Its Chipmaking Tools May be in China"

(Source: MSN News, 18 Jun 2026) [Excerpts of subscription service.]

Dutch chip-equipment giant ASML Holding NV is contending with its biggest challenge yet under the Trump administration: In a series of recent meetings, Commerce Secretary Howard Lutnick outlined concerns to ASML's senior leaders that one of its top-of-the-line machines may have made its way into China, in violation of US-led export restrictions.

In the meetings, Lutnick expressed concern to ASML executives over the company's extreme ultraviolet lithography, or EUV, machines, according to people familiar with the talks. EUV systems are used by firms such as Taiwan Semiconductor Manufacturing Co. to manufacture processors for the likes of Nvidia Corp. and Apple Inc., and ASML has never been allowed to ship them to China because of curbs imposed during the first Trump administration.

ASML has pushed back on Lutnick's suggestion, explaining that none of these tools — which are the size of a school bus, are manufactured in limited quantities, and require constant upkeep from ASML employees — are in China, said the people, who spoke on condition of anonymity to describe private conversations. . . . [Full article]

16. Diaz: "Forced Labor Enforcement Just Crossed a Border: What CBP's Serbia Copper WRO Means for Your Supply Chain"

(Source: Customs & International Trade Law Blog, 19 Jun 2026) [Excerpts]

Key Takeaways:

17. ECD: "Senators Propose Changes to Enhance Export Licensing at BIS"

(Source: Export Compliance Daily, 22 Jun 2026) [Excerpts of subscription site.]

Senate Banking Committee members Kevin Cramer, R-N.D., and Andy Kim, D-N.J., announced June 18 that they're introducing a bill aimed at improving the "clarity" of the export licensing process at the Bureau of Industry and Security. . . .

The BIS "License Administration Enhancement Act" would require the bureau to have technical advisory committees focused on computing technology, including chips, AI and quantum computing; biotechnology; automation, including robotics, advanced manufacturing and autonomous systems; aerospace and space technology; advanced materials; weapons of mass destruction; emerging and foundational technology; and regulations and procedures.

The bill also would direct that "is-informed" letters, which notify companies of supplemental license requirements for specific transactions, go through the standard interagency process. Letters would be terminated within 60 days unless BIS publicly published the underlying restrictions.

Another provision would require a publication on how licensing officers apply the "presumption of denial" standard. BIS would specifically need to issue a notice in the Federal Register detailing the "standards and factors that licensing officers should consider."

The legislation also would direct the Commerce Department to review implementation of a January 2025 interim final rule on chip export controls that created lists of approved chip designers and outsourced semiconductor assembly and test companies that were expected to benefit from some licensing carve-outs for certain chip exports. . . .

18. Foreign Policy Journal: "Howard Lutnick Warns ASML Holding (AMS: ASML) That A Top Chip Machine May Have Reached China"

(Source: Foreign Policy Journal, 19 Jun 2026) [Excerpts]

Commerce Secretary Howard Lutnick has raised concerns directly with senior leaders at ASML Holding NV (AMS: ASML) that one of the company's most advanced machines may have entered China in violation of US-led export restrictions, Bloomberg reported.

In a series of recent meetings, Lutnick told ASML executives that he was concerned about the company's extreme ultraviolet lithography, or EUV, machines, according to people familiar with the private conversations. EUV systems are used by firms such as Taiwan Semiconductor Manufacturing Co. to manufacture processors for customers including Nvidia Corp. and Apple Inc.

ASML has never been permitted to ship EUV machines to China, following curbs first imposed during the first Trump administration. ASML pushed back firmly against Lutnick's suggestion, explaining that none of its EUV tools are currently located in China, according to people who spoke on condition of anonymity.

The company noted that EUV machines are the size of a school bus, manufactured in limited quantities, and require constant upkeep from ASML personnel, making undetected relocation effectively impossible. A company spokesperson confirmed that ASML engages with all governments and stated plainly that it has never shipped an EUV machine to China.

Despite ASML's denials, multiple senior administration officials told Bloomberg they have evidence suggesting the company is not acting in good faith, including alleged exports to China of gear specifically related to EUV tools. . . . [Full article]

19. ST&R Trade Report: "New Section 301 Probe Could Yield Tariffs on Imports from Germany"

(Source: Sandler, Travis & Rosenberg Trade Report, 22 Jun 2026) [Excerpts]. Contact: [email protected], 1-305-894-1035 [See related Item #13 above.]

The Office of the U.S. Trade Representative announced June 18 the initiation of a Section 301 investigation that could lead to the imposition of additional tariffs on imports from Germany.

The new investigation will examine whether Germany's "persistent underpayment for innovative pharmaceutical products" is unreasonable or discriminatory and burdens or restricts U.S. commerce. USTR noted that although the means and tools for payment disparities for innovative pharmaceuticals vary, they may include the imposition of supplemental discounts in exchange for confidentiality of negotiated prices and mandatory variable rate rebates. . . .

USTR will hold a hearing in connection with this investigation on Sept. 22. Requests to appear at this hearing, summaries of any testimony, and all other written comments are due by Aug. 10. Click here for a list of issues on which comments are sought.

While previous Section 301 investigations have resulted or may yet result in additional tariffs on imports from targeted countries, U.S. officials appeared to hold out the possibility that this may not happen in this case. Health and Human Services Secretary Robert F. Kennedy Jr. noted that the U.S. negotiated with the United Kingdom earlier this year a pharmaceutical arrangement "that will help drive investment and innovation in both countries," and he called on Germany to "follow suit with constructive negotiations." . . . [Full article]

20. Washington Tariff & Trade Letter: "SCOTUS OKs Unlimited Tariff Escalation for Now"

(Source: Washington Tariff & Trade Letter, 22 Jun edition) [Excerpts]

The U.S. Supreme Court passed on a closely watched challenge to the legality of the Trump administration's expansion of Section 301 tariffs on Chinese imports, leaving intact a Federal Circuit ruling that upheld the U.S. Trade Representative's authority to broaden the trade action and tacitly approving virtually unlimited scope to expand tariffs once in place.

The court denied certiorari in HMTX Industries, LLC, et al. v. United States, et al. as part of its June 15 orders list. The decision was issued without commentary, as is standard procedure for the high court.

The case served as the lead challenge among thousands of lawsuits filed by importers seeking to overturn duties imposed on Chinese goods during President Donald Trump's first term. HMTX Industries and other importers argued that USTR exceeded its authority when it expanded the original tariff action, authorized under Section 301 of the Trade Act of 1974, from roughly $50 billion in Chinese imports to cover more than $300 billion through the so-called List 3 and List 4A tariffs.

In September 2025, the U.S. Court of Appeals for the Federal Circuit upheld the tariffs, concluding that Section 307 of the Trade Act independently authorized USTR's modifications and that the agency had adequately addressed procedural deficiencies identified by the Court of International Trade below.

The petition asked the Supreme Court to determine whether USTR's authority to modify existing Section 301 tariffs effectively gave the agency unlimited power to expand the duties without complying with the procedural requirements applicable to a new Section 301 investigation.
The denial ends the highest-profile judicial challenge to the first Trump administration's China tariffs, but may not signal disinterest from the justices. . . . [Full article]

21. Baker/McKenzie: "EU: Update on the EU-US Tariff Agreement"

(Source: Global Sanctions and Export Controls Blog, 19 Jun 2026) [Excerpts]

On June 16, 2026, the European Parliament (EP) approved two legislative texts implementing the EU's tariff commitments under the EU-US trade agreement. Formal approval by the Council of the EU remains pending.

The adopted measures provide for the elimination of tariffs on all US industrial goods and grant preferential market access for a wide array of US seafood and agricultural goods. The extension of tariff-free lobster imports, now including processed lobster, was also endorsed by the EP.

Background. US President Donald Trump and EU Commission (Commission) President Ursula von der Leyen reached an agreement in July 2025 on trade and tariff issues. Key terms of the agreement included the EU's intent to eliminate tariffs on all US industrial goods, providing preferential market access for a wide range of US seafood and agricultural goods. The broader deal also aimed to create a framework for reducing other trade barriers over time. In August 2025, the Commission published two legislative proposals geared toward implementing the tariff-related provisions from the agreement, which were voted this week. . . . [Full article.]

22. ECD: "Think Tank: Tension Between Multilateral, Unilateral Export Controls Reaching 'Breaking Point'"

(Source: Export Compliance Daily, 22 Jun 2026) [Excerpts of subscription site]

A rise in unilateral and "coercive" export controls is jeopardizing the effectiveness of multilateral regimes and the legitimacy of export controls more broadly, the Stockholm International Peace Research Institute said in a new analysis.

Although there has long been tension between multilateral controls and a desire by some countries to pursue "unilaterally defined interests," SIPRI said that tension "has approached a breaking point in recent years."

It recommends that members of the multilateral Australia Group, the Missile Technology Control Regime and the Wassenaar Arrangement consider working closer with China on multilateral restrictions, considering Beijing's recent aggressive use of unilateral export controls as a trade tool.

Although including China in those forums would likely be "highly challenging in the current international context," the SIPRI analysis said, "small steps in that direction might encourage China to step back from national controls that go beyond those multilaterally agreed and considered to be the international standards."

In the long term, the think tank said this could push China to align its controls with those agreed to within the regimes. "While all options come with challenges, maintaining the current trajectory risks crippling" the use of export controls.

SIPRI said export controls are increasingly being used as tools of coercion and retaliation. It pointed to the U.S. efforts under the Biden administration to restrict sales of advanced chip technology to China, and even efforts by the Trump administration to use its chip controls as bargaining leverage in trade talks.

Meanwhile, Beijing has used export controls to retaliate against several countries, including against Japan earlier this year because of its prime minister's remarks about Taiwan, and against U.S. and American companies for arms sales to Taiwan. Beijing most notably threatened to impose sweeping export controls on rare earths around the world before the Bureau of Industry and Security suspended its Affiliates Rule last year. . . .

23. Reed Smith: "FAR Overhaul Underway: What Contractors Need to Know"

(Source: Reed Smith Alerts; reprinted from 25 Aug 2026)

[Editor's Notes: See related Federal Register items to be published tomorrow listed in above in Item #2.]

On August 15, 2025, the Office of Federal Procurement Policy (OFPP) announced major updates to the Federal Acquisition Regulation (FAR), known as the "Revolutionary FAR Overhaul" (RFO), designed to streamline procurement processes and promote efficiency within federal agencies.

The RFO now allows agencies to remove non-statutory or non-executive order requirements from future contracts, which may reduce administrative burdens and inefficiencies in the long term.

New and seasoned federal contractors should become familiar with the revised FAR structure and prepare for streamlined procurements and increasing competition in the federal marketplace.

Executive Order 14275. On April 15, 2025, President Donald Trump issued Executive Order 14275, "Restoring Common Sense to Federal Procurement" (EO 14275), initiating the most comprehensive overhaul of the FAR since its inception over 40 years ago. EO 14275's stated policy objective was to "create the most agile, effective, and efficient procurement system possible" by revising the FAR to contain "only provisions required by statute or essential to sound procurement."

EO 14275 required each federal agency to designate a senior procurement official to work with the OFPP and imposed an aggressive timeline for completing the FAR overhaul. Specifically, within 180 days of EO 14275 (October 12, 2025), OFPP and the FAR Council must "take appropriate actions to amend the FAR to ensure that it contains only provisions that are required by statute" and identify all provisions not required by statute that will remain in the FAR.

The FAR overhaul. Following EO 14275, the OFPP and the FAR Council, together with the General Services Administration, established the Revolutionary FAR Overhaul webpage on Acquisition.gov. EO 14275 provided for a two-phase implementation of the FAR overhaul. First, the FAR Council is issuing model FAR deviation text by FAR Part on a rolling basis. . . .

In addition to FAR revisions, the FAR overhaul is moving non-statutory buying strategies out of the FAR and into OFPP-endorsed "buying guides." The revised FAR and buying guides will be known as the Strategic Acquisition Guidance. The first buying guide will focus on software-as-a-service acquisitions, signaling the Trump administration's emphasis on modernizing technology procurement. . . .

24. Reeves & Dola: "ATF Proposes Rule Changes for Machine Gun Transfers"

(Source: Reeves & Dola LLP, 19 Jun 2026) [Excerpts]

On May 6 and 8, 2026, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) published the first tranche of new proposed and final rules to modernize its regulations governing firearms and ammunition. We will examine these changes in detail in a series of alerts over the next several weeks. You may also wish to consult our April 30 Alert offering a preview of the ATF regulatory reform package. Also, don't miss the F.A.I.R. Trade Group's upcoming Firearms and Ammunition Compliance Conference on July 22 and 23, 2026! Co-hosted by the Firearms Regulatory Accountability Coalition (FRAC), this conference is the first opportunity to hear directly from ATF officials on these regulatory changes. Reeves & Dola is a proud sponsor of this event, and we hope to see you there!

In today's post, we will focus on ATF's proposed rulemaking pertaining to machine gun transfers between qualified federal firearms licensees (FFLs). This Notice of Proposed Rulemaking (NPRM), published on May 6, 2026, at 91 Fed. Reg. 24485, seeks to amend 27 C.F.R. § 479.105. These are only proposed changes; comments are due on or before July 6, 2026.

This NPRM focuses on two types of machine gun transfers allowed under Section 922(o) of the Gun Control Act (GCA), presuming qualification is established to ATF's satisfaction per section 479.105. These transfers are: (1) transfers between qualified licensees for demonstration to potential government customers ("qualified" = FFL + a Special (Occupational) Tax (SOT) payer) and (2) transfers to liquidate inventory when a licensee is going out of business.

Background - GCA Machine Gun Prohibition and the Government Exception. . . . [Full article]

25. Volkov: "The AI Governance Gap — The Urgency Is Now" (Part 1 of 3)

(Source: Volkov Law, 22 Jun 2026) [Excerpts]

There is a crisis unfolding in corporate boardrooms and compliance departments across America, and most organizations are not responding with anywhere near the urgency the situation demands.

The crisis is AI governance — or more precisely, the near-total absence of it. The numbers are striking. According to a Compliance Week 2026 survey, 83% of organizations are using AI tools, but only 25% have implemented a governance framework strong enough to manage them. A separate analysis found that 43% of companies have no AI usage policy whatsoever. Gartner reports that nearly 43% of large firms lack AI risk frameworks despite widespread adoption. And the EU AI Act — which reaches full enforcement for high-risk AI systems in August 2026 — will expose non-compliant organizations to penalties of up to €35 million or 7% of global annual revenue.
The gap between AI adoption and AI governance has never been wider. And it is getting worse every day that companies delay.

The FCPA Parallel — A Warning from History: . . . [Full article]

26. List of Export/Import Job Openings

(Source: Editor)

RECENT:

FULL LIST:

27. Bartlett's Unfamiliar Quotations

(Source: Brainy Quotes)

Wilhelm von Humboldt (22 Jun 1767 – 8 Apr 1835; was a Prussian philosopher, linguist, government functionary, and diplomat.)

Anne Morrow Lindbergh (Anne Spencer Morrow Lindbergh; 22 Jun 1906 – 7 Feb 2001; was an American writer and aviator. She was the wife of decorated pioneer aviator Charles Lindbergh, with whom she made many exploratory flights.)

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

(Source: Editor)

Don't miss an issue of the Daily Bugle if you change your email. Click here to manage your profile.

29. Are Your Copies of Export/Import Regulations Current?

(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.