26-0629: Monday's "Export/Import Daily Bugle"

1. Today's Federal Register (No relevant items.)

2. Future Federal Register (No relevant items.)

3. CBP Cargo Systems Messages

(Source: DHS/CBP/CSMS)

4. Commerce/BIS (Nothing new.)

(Source: Commerce/BIS)

5. DoD/DCSA: "DCSA, Industry Partners Strengthen Ties at NCMS Seminar"

(Source: Defense Counterintelligence and Security Agency, 29 Jun 2026) [Excerpts]

ATLANTA, Ga. – The Defense Counterintelligence and Security Agency (DCSA) demonstrated its commitment to customer partnership and service improvement at the 2026 NCMS Annual Training Seminar, June 8-11.

Representatives from DCSA's Office of Customer Success, National Background Investigation Services (NBIS), Personnel Vetting and Industrial Security, met with security professionals to gather feedback, resolve issues in real-time and strengthened connections with industry partners.

Throughout the seminar, the recurring theme was partnership. DCSA representatives hosted discussions with Facility Security Officers and industry leaders on critical topics including NBIS, Defense Information System for Security and policies like reciprocity. . . . [More]

6. DoD/DSCA Posts Policy Memo 26-39, "Delivery Reporting Documentation for Case Closure"

(Source: Defense Security Cooperation Agency, 29 Jun 2026)

DSCA has posted Policy Memo 26-39 Delivery Reporting Documentation for Case Closure. This policy rescinds DSCA 05-29 as well as clarifies roles, responsibilities and timelines for reporting deliveries of defense articles and services under the foreign military sales (FMS) program.

This memo:

7. State/DDTC Posts Guidelines for Preparing Agreements Revision 5.2 (26 May 2026)

(Source: State/DDTC, 26 Jun 2026)

The "Guidelines for Preparing Agreements," Revision 5.2, is now posted. You can access the document here. The guidance went into effect on Tuesday, May 26, 2026.

The Revision 5.2 is an administrative revision which conforms the Agreement Guidelines with the new § 126.7 Exemption for defense trade and cooperation among Australia, the United Kingdom, and the United States, implemented by 89 FR 67270, Aug. 20, 2024 (the "Australia/UK exemption rule"), effective on September 1, 2024.

It also contains conforming revisions inadvertently omitted in Revision 5.1, deletes the portions of Sections 8 and 15 that have moved to stand-alone web guidance, and updates Section 10.3 to conform with current DDTC practice. A summary of noteworthy revisions can be found on page 1 of the updated Guidelines.

Cover page of new guidelines:

"GUIDELINES FOR PREPARING AGREEMENTS (Revision 5.2) Technical Assistance Agreements Manufacturing License Agreements And Warehouse and Distribution Agreements These Guidelines were prepared by the U.S. Department of State's Bureau of Political-Military Affairs, Directorate of Defense Trade Controls (DDTC), Office of Defense Trade Controls Licensing (DTCL).

They are intended to serve as an aid in applying the International Traffic in Arms Regulations (ITAR*), to provide clarity on DTCL policy as it pertains to agreements, and to establish a standard basis for submissions of agreements and related correspondence. Should changes to the regulations take place, such regulatory changes take precedence.

We welcome the use of this document in training programs but request there be no charge for the material. In instances where material is extracted, reference should be made to this publication as the source.

If you have specific questions on any matter related to this guidance, contact the Office of Defense Trade Controls Licensing for further assistance. Comments or suggestions regarding this publication should be directed to this office, ATTN: Guidelines for Agreements."

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

9. Breaking Defense: "Honeywell Aerospace Begins Trading as Standalone Company"

(Source: Breaking Defense News, 29 Jun 2026) [Excerpts]

Honeywell Aerospace has officially spun off as an independent, publicly-traded company focused on defense and commercial aviation, it announced today.

Honeywell previously announced in February 2025 its strategy to split its businesses into three parts: an automation business known as Honeywell Technologies, an advanced materials unit spun off in 2025 and now known as Solstice, and the aerospace segment.

At the time, company officials said the break up would allow each business unit to pursue tailored strategies for growing revenue. The aerospace spin off was completed when Honeywell Technologies distributed all shares of Honeywell Aerospace stock, allowing Honeywell Aerospace to begin trading on the Nasdaq Stock Market this morning, the company said in a news release. . . .

10. ECD: "New OFAC License Covers Earthquake Relief in Venezuela"

(Source: Export Compliance Daily, 29 Jun 2026) [Excerpts of subscription site.]

The Office of Foreign Assets Control issued a new general license on June 25 to authorize certain transactions for relief efforts in Venezuela, which was struck by major earthquakes last week authorizes "all transactions related to earthquake relief efforts in Venezuela that would otherwise be prohibited" by the Venezuela Sanctions Regulations. . . . [More]

11. ECD: "Senators Propose Higher Penalties for Export Control Violations"

(Source: Export Compliance Daily, 29 Jun 2026) [Excerpts of subscription site.]

Sens. John Kennedy, R-La., and Andy Kim, D-N.J., introduced a bill June 24 that would raise the financial penalties that may be imposed under the Export Control Reform Act of 2018.

The ECRA Penalty Increase Act would increase the statutory maximum civil penalty from $300,000 to $1.2 million per violation. The transaction-based penalty would increase from twice the value of the unlawful transaction to four times the value. . . .

The House Foreign Affairs Committee approved similar legislation by a 44-0 vote in April (see 2604230013).

The Bureau of Industry and Security's enforcement chief in February asked Congress to raise the ECRA penalty ceiling and extend the statute of limitations for export violations from five to 10 years. [More]

12. Expeditors News: "CPSC Updates eFiling FAQ"

(Source: Expeditors News, 26 Jun 2026) [Excerpts]

In an update to the trade on June 17, 2026, the Consumer Product Safety Commission (CPSC) announced that it had updated its eFiling frequently asked questions (FAQ) website.

The updated FAQ now includes new information on eFiling on shipments from one consumer to another, application to products manufactured before rules or bans went into effect, and how eFiling applies to resold and overstock products.

CPSC's eFiling FAQ can be found HERE.

13. Freight Waves: "Freight Forwarding Manager Sentenced for Violating U.S. Export Controls"

(Source: Freight Waves, 27 Jun 2026) [Excerpts]

A former regional manager for a U.S. freight forwarding company was sentenced Wednesday to 18 months in federal prison after pleading guilty to conspiracy to violate the Export Control Reform Act, according to the U.S. Attorney's Office for the Eastern District of New York.

Natalya Ivanovna Mazulina, also known as Natasha Mazulina, was also ordered to forfeit $77,000 in criminal proceeds. Mazulina, 43, of Federal Way, Washington, served as the western regional manager of Delex Air Cargo LLC, a freight forwarding company based in Jamaica, New York. The company operated out of John F. Kennedy International Airport in New York and Seattle-Tacoma International Airport in Washington.

Mazulina was arrested in December 2024 after a federal grand jury returned a 12-count indictment. According to the U.S. Attorney's Office, she pleaded guilty in October 2025 to conspiracy to violate the Export Control Reform Act before being sentenced on Wednesday. . . . [More]

14. MSN: "Trump Advances $700m Jet Engine Sale to Türkiye Despite Opposition"

(Source: MSN, 27 Jun 2026) [Excerpts]

The Trump administration has formally notified Congress of its plan to sell over $700 million worth of General Electric F110 engines to Türkiye for use in the indigenous KAAN fighter jet. The deal addresses a critical gap in the programme, as Türkiye does not yet have an operational indigenous engine. The State Department said its decision factored in political, military, economic, human rights, and arms control considerations.

Several Democrats in Congress, including Representatives Chris Pappas, Dina Titus, and Gregory Meeks, have voiced objections to the proposed sale, citing concerns over Türkiye's continued possession of the Russian S-400 air defence system and its implications for US law and NATO security.

Lawmakers have 15 days to attempt to block the sale via a joint resolution, which would require passage in both chambers and could be vetoed by the president. Despite these objections, President Trump has publicly praised President Erdogan as a strong NATO member and indicated his intent to proceed with the deal. . . .

15. Nova: "Trump Administration Partially Lifts Export Ban on Anthropic AI Models"

(Source: Nova News, 27 Jun 2026) [Excerpts]

Donald Trump has partially lifted the export ban on Anthropic's artificial intelligence models, allowing a select group of more than 100 companies and government agencies access to the advanced Mythos 5 model.

Secretary of Commerce Howard Lutnick announced this on June 26 in a letter addressed to the head of computing at Anthropic, Tom Brown. Obtained by Politico, the decision eases the conflict between the US government and Anthropic, following the restrictions introduced on June 12th on the export of the company's most advanced AI models. However, the ban on the Fable 5 model remains in effect, which is also subject to the restrictive measures announced in recent weeks. . . . [More]

16. South China Morning Post: "China Offers Rewards for Reporting Rare Earth Export Control Violations"

(Source: South China Morning Post, 24 June 2026) [Excerpts]

Beijing is sharpening the tools it uses to police rare earth and other strategic mineral exports, announcing fresh measures that will reward companies and individuals for reporting suspected violations.

The announcement came on Wednesday, the same day Tokyo confirmed that two of its nationals had been detained in China over alleged attempts to smuggle rare earth-related goods out of the country. . . .

The goal of the new measures, which come into effect on July 1, would be to strengthen oversight in Beijing's efforts to "combat" violations and irregularities, it added.

The ministry promised a reward for reports confirmed to be true and encouraged export entities to take the initiative if they suspected any violations. "Self-disclosure will be taken into account as a factor in granting a lighter or mitigated penalty for the relevant violations or irregularities," it said. . . . [More]

17. Space News: "Rocket Lab to Acquire Iridium"

(Source: Space News Archives, 29 Jun 2026) [Excerpts of subscription publication]

WASHINGTON — Rocket Lab is acquiring satellite telecommunications company Iridium for $8 billion as part of its effort to become an end-to-end space company. [More]

18. ST&R Trade Report: "The Week Ahead: Section 301 Tariffs, Customs Enforcement, CBP Test"

(Source: Sandler, Travis & Rosenberg Trade Report, 29 Jun 2026) [Excerpts]. Contact: [email protected], 1-305-894-1035

Following are highlights of regulatory effective dates and deadlines and other trade-related events coming up in the next week:

19. Akin: "New General License for Iranian-Origin Oil Exports Is First Step in Broader Sanctions Relief Described in Preliminary U.S.-Iran Deal, But Significant Risks Remain"

(Source: Akin Insights, 24 Jun 2026) [Excerpts]

Highlights:

Overview of General License X and Scope of Authorization: . . . [More]

20. Arent Fox: "As the (Customs and Trade) World Turns"

(Source: ArentFoxSchiff LLP Perspectives/Alerts, 25 Jun 2026) [Excerpts]

Welcome to the June 2026 issue of "As the (Customs and Trade) World Turns," our monthly newsletter where we compile essential updates from the customs and trade world over the past month. . . .

This edition provides essential insights for sectors including international trade, national security, aluminum, steel, and copper industries, fashion and retail, automotive, life sciences, electronics, artificial intelligence, transportation, electric mobility, e-commerce, shipping and logistics, and compliance, as well as for in-house counsel, importers, and compliance professionals.

In this June 2026 edition, we cover:

21. Baker/McKenzie: "OFAC Venezuela Developments: New Conviasa Aircraft General License, Reissued Venezuela Telecom/Mail and PdVSA Bond Authorizations, and Updated FAQ 595"

(Source: Global Sanctions and Export Controls Blog, 26 Jun 2026) [Excerpts]

On June 18, 2026, the US Department of the Treasury's Office of Foreign Assets Control ("OFAC") issued three Venezuela-related general licenses and amended FAQ 595. The most notable development is new General License 59 ("GL 59"), which authorizes certain aircraft safety-related activities for Venezuelan Specially Designated National airline, Conviasa.

OFAC also reissued its telecommunications and mail authorization as General License 24A ("GL 24A"), again delayed the effectiveness of the PdVSA 2020 bond authorization through General License 5X ("GL 5X"), and amended related FAQ 595 accordingly.

GL 59 authorizes limited aircraft-related support involving Conviasa. GL 59 permits transactions otherwise prohibited by Executive Order 13884 involving Consorcio Venezolano de Industrias Aeronáuticas y Servicios Aéreos, S.A. ("Conviasa"), entities 50 percent or more owned by Conviasa, and aircraft in which Conviasa or such entities have an interest, where those transactions are ordinarily incident and necessary to the provision from the United States or by a US person of goods, technology, software, or services for the maintenance, repair, upgrade, refurbishment, improvement, safety, or airworthiness of those aircraft.

The authorization also extends to related supporting transactions, including: . . . [More]

22. Diaz: "CAPE Now Accepts Reconciliation-Flagged Entries — But File in the Wrong Order and You Forfeit the Refund"

(Source: Customs & International Trade Law Blog, 26 Jun 2026) [Excerpts]

If you have entries flagged for reconciliation and a reconciliation deadline inside the next 30 days, the order in which you file has just become a decision that can cost you your IEEPA refund.

Under CBP's June 29, 2026, CAPE deployment, once you file the reconciliation entry (Type 09), the underlying entries are locked out of CAPE in this phase. File the recon first, and you have stripped your own entries of the consolidated IEEPA refund path — permanently, for now. The new functionality is genuinely good news. The trap is in the sequence.

Key points:

Same eligibility limits as Phase 1 carry over: unliquidated entries and entries within 80 days of liquidation only. The Challenge: Reconciliation Was a Hole in Phase 1: . . .

What Changed: CSMS #69035485 (Effective June 29, 2026). CBP's CSMS #69035485 adds the missing functionality. Effective June 29, 2026, CAPE will accept entries flagged for reconciliation — Entry Types 01, 02, and 06 — for which the reconciliation entry (Type 09) has not yet been filed. The eligibility window is unchanged from Phase 1: only unliquidated entries and entries within 80 days of liquidation qualify.

Here is the mechanism that matters, and it is the entire reason sequence is everything: . . . [More]

23. ECD: "Ex-Treasury Official: Trump Administration Using Sanctions Less Often Than Predecessor"

(Source: Export Compliance Daily, 29 Jun 2026) [Excerpts of subscription site]

The Trump administration is using sanctions more sparingly than the Biden administration to avoid what it considers "overuse" by its predecessor, a former Treasury Department official said June 25.

Sanctions are "very important tools that we need to use sparingly," said John Hurley, who left his post as Treasury's undersecretary for terrorism and financial intelligence earlier this year. Sanctions should be used "as precision weapons, not as carpet bombs."

Hurley said that while he was still at the department, Treasury Secretary Scott Bessent instructed him and Brad Smith, director of the Office of Foreign Assets Control, to review OFAC's Specially Designated Nationals List to determine whether anyone should be removed due to the Biden administration's "significant overuse" of the list. . . .

Hurley made his comments in response to Sen. Tim Kaine, D-Va., who suggested the judge was sanctioned because he prosecuted former Brazilian President Jair Bolsonaro, who is an ally of President Donald Trump. OFAC removed the de Moraes sanctions in December, reportedly because Brazil's lower house passed an amnesty bill that suggested conditions in the country were improving. [More]

24. Volkov: "AI Governance and Compliance Gaps — The Three Crises You Cannot Afford to Ignore"

(Source: Volkov Law, 29 Jun 2026) [Excerpts]

Michael Volkov examines the AI governance and compliance crisis unfolding across corporate America — arguing with urgency that organizations are failing to respond at the speed and depth the risk environment demands.

Drawing on the FCPA enforcement parallel, Michael first addresses the organizational AI governance gap, where surveys show 83% of companies use AI but only 25% have adequate governance frameworks, even as the EU AI Act, Colorado's AI Act, and a wave of regulatory enforcement actions signal that the compliance reckoning is already arriving.

He then turns to the shadow AI crisis — the largely invisible epidemic of unauthorized employee AI tool use, with statistics showing 68% of employees use unapproved AI tools, 54% of those tools have been used to upload sensitive company data, and average breach costs reaching $4.2 million — and explains why discovery, governance, and enablement must replace blanket prohibitions.

Finally, Michael addresses the third-party AI blind spot, arguing that traditional vendor risk management was not built to address AI-specific legal liability or reputational exposure from vendor AI misconduct, and that companies must urgently update due diligence programs, vendor contracts, and monitoring systems to address the full spectrum of external AI risk before enforcement actions and data breaches force the issue on the worst possible terms. . . . [More]

25. Global Training Center Presents: "Import & Export Trade Compliance Seminars" August 18-21 in Anaheim, CA

(Source: Global Training Center)

26. List of Export/Import Job Openings

(Source: Editor)

27. Bartlett's Unfamiliar Quotations

(Source: Brainy Quotes)

Giacomo Leopardi (Giacomo Taldegardo Francesco di Sales Saverio Pietro Leopardi; 29 Jun 1798 – 14 Jun 1837; was an Italian philosopher, poet, essayist, and philologist. He is considered the greatest Italian poet of the nineteenth century and one of the most important figures in the literature of the world.)

Antoine de Saint-Exupéry (Antoine Marie Jean-Baptiste Roger, comte de Saint-Exupéry; 29 Jun 1900 – 31 Jul 1944; was a French writer, poet, aristocrat, journalist, and pioneering aviator. He became a laureate of several of France's highest literary awards and won the United States National Book Award. He is best remembered for his novella The Little Prince.)

28. Today in History

(Source: History Channel)

1950: U.S. World Cup team wins unlikely victory over England. On June 29, 1950, an American team composed largely of amateurs defeated its more polished English opponents at the World Cup, held in Belo Horizonte, Brazil. Dubbed the "Miracle on Green," the game is considered one of the greatest soccer upsets of all time.

The English team at the time, known as the "Kings of Football," boasted a record of 23 victories, four losses and three draws in the years since World War II ended. Its members were professional footballers culled from England's domestic leagues.

The Americans, by contrast, had lost their last seven international matches. Hastily assembled just days before the match against England, the U.S. team included a dishwasher, two mailmen, a teacher and a mill worker. Described as a "real bunch of ragamuffins" by the press, the US beat a star-studded England side 1-0 at the 1950 World Cup.

2007: Apple releases the first iPhone on June 29, 2007, revolutionizing the mobile phone industry and transforming human communication with its sleek design and pioneering touch interface that allowed users to pinch, zoom, and swipe.

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

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.