26-0702: Thursday's "Export/Import Daily Bugle"

1. Today’s Federal Register (No items of interest.)

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

3. CBP Cargo Systems Messages

(Source: DHS/CBP/CSMS)

4. Commerce/BIS (Nothing new.)

(Source: Commerce/BIS)

5. Justice Dept: “Convicted Defendants Managed and Operated ‘Laptop Farms’ Intended to Deceive Victim Employers into Believing They Had Hired U.S.-Based IT Workers”

(Source: U.S. Attorney’s Office of Public Affairs, 15 Apr 2026 reprint) [Excerpts]

The Justice Department recently announced the sentencings of two U.S. nationals, Kejia Wang, 42, and Zhenxing Wang, 39, for their roles in facilitating North Korean remote information technology (IT) workers posing as U.S. residents to obtain work at more than 100 U.S. companies.

Kejia Wang, of Edison, New Jersey, was sentenced to 108 months in prison. In September 2025, he pleaded guilty in the District of Massachusetts to conspiracy to commit wire fraud, conspiracy to commit money laundering, and conspiracy to commit identity theft. Zhenxing Wang, of New Brunswick, New Jersey, was sentenced to 92 months in prison. In January 2026, he pleaded guilty in the District of Massachusetts to conspiracy to commit wire fraud and conspiracy to commit money laundering.

“For years, the defendants enriched themselves by assisting North Korean actors in a fraudulent scheme to gain employment with U.S. companies,” said Assistant Attorney General for National Security John A. Eisenberg. “The ruse placed North Korean IT workers on the payrolls of unwitting U.S. companies and in U.S. computer systems, thereby harming our national security.

“This case exposes a sophisticated scheme that exploited stolen American identities and U.S. companies to generate millions of dollars for a hostile foreign regime. By operating so-called ‘laptop farms,’ these defendants enabled overseas actors to infiltrate U.S. businesses, access sensitive data and undermine our economic and national security,” said U.S. Attorney Leah B. Foley for the District of Massachusetts.

According to court documents, from approximately 2021 until October 2024, the defendants and their co-conspirators compromised the identities of more than 80 U.S. persons to obtain remote jobs at more than 100 U.S. companies, including many Fortune 500 companies, and caused U.S. victim companies to incur legal fees, computer network remediation costs, and other damages of at least $3 million.

IT workers employed under this scheme also gained access to sensitive employer data and source code, including International Traffic in Arms Regulations (ITAR) data from a California-based defense contractor that develops artificial intelligence-powered equipment and technologies. Specifically, between on or about January 19, 2024, and on or about April 2, 2024, an overseas co-conspirator remotely accessed without authorization the company’s laptop and computer files containing technical data and other information. The stolen data included information marked as being controlled under the ITAR.

6. State/DDTC DECCS Email Delays

(Source: State/DDTC, 2 Jul 2026)

DDTC is currently experiencing an issue affecting all automated emails generated from DECCS. Beginning Friday, June 26, 2026, automated communications have not been delivered, such as:

The DDTC IT team is actively working to identify the root cause and implement a resolution. We will provide updates as new information becomes available or once a fix has been deployed.

7. Treasury/OFAC: “Reminder to File the 2026 Annual Report of Blocked Property”

(Source: Treasury/OFAC, 1 Jul 2026)

31 C.F.R. § 501.603 of the Reporting, Procedures and Penalties Regulations (RPPR) requires U.S. persons holding blocked property as of June 30 of the current year to file an Annual Report of Blocked Property (ARBP) with the Office of Foreign Assets Control (OFAC) by September 30. Persons that did not hold blocked property as of June 30 do not need to file an ARBP.

Please note that the term blocked property only applies to property that is blocked pursuant to OFAC regulations. Property that was unblocked by an OFAC general or specific license, or that was previously blocked pursuant to a sanctions program that was terminated on or before June 30, 2026, is not considered blocked property, and should not be included in the ARBP.

Similarly, a restricted account of a person ordinarily resident in Iran is not blocked property and should not be reported to OFAC in the ARBP, unless a person whose property and interests in property are blocked pursuant to an applicable sanctions authority has an interest in the account.

Persons filing the 2026 ARBP must use spreadsheet form TD-F 90-22.50 and submit the completed form through the OFAC Reporting System (ORS). Failure to file the ARBP by September 30 constitutes a violation of the RPPR.

For additional information, please review OFAC’s Guidance on Filing the 2026 Annual Report of Blocked Property. For more information on this specific action, visit our Recent Actions page.

8. UK Export Control: “Export Plants from Great Britain and Northern Ireland”

(Source: GOV.UK, 2 Jul 2026)

Check if you need a licence or phytosanitary certificate to export or move plants and plant products. Change made: Amended the section ‘Apply for a re-forwarding certificate for re-export to re-export goods’, to replace ‘re-forwarding phytosanitary certificate’ with ‘phytosanitary certificate for re-export’.

9. White House Executive Actions (No items of interest.)

10. Diaz: “The U.S. Declined to Renew USMCA – What Importers Must Do Now”

(Source: Customs & International Trade Law Blog, 2 Jul 2026) [Excerpts]

On July 1, 2026, the U.S. declined to renew the agreement for a fresh 16-year term, moving it into annual reviews. The pact stays in force, potentially through 2036, unless a country formally exits with six months’ notice. Nothing changes at the port tomorrow. USMCA-qualifying goods still enter duty-free. Your certifications, rules-of-origin claims, and preference elections remain valid today.

The real risk is enforcement, not policy. A decade of open renegotiation puts rules of origin, especially auto content and regional-value-content thresholds, into permanent play. Origin claims made under old assumptions become audit and penalty exposure.

Act now on documentation, not headlines. Importers should stress-test USMCA certifications, tighten origin recordkeeping, and model exposure to Section 232 auto/steel/aluminum tariffs that already sit on top of the agreement. . . . [Full advisory]

11. Expeditors News: “EU Removes €150 De Minimis Threshold”

(Source: Expeditors News) [Excerpts]

In an update from the Directorate-General for Taxation and Customs Union for the European Union (EU) on June 8, 2026, it was announced that the EU will abolish the €150 customs duty exemption for low value consignments and introduce a temporary €3 duty per item on imports up to this threshold.

This measure will remain in place until July 1, 2028, after which standard duty rules are expected to apply. The change is part of reforms intended to modernize “customs procedures, ensuring fairness, safety, and sustainability in e-commerce.” Guidance on this change can be found HERE.

12. Export Practitioner: “DDTC Updates Agreements Prep Language”

(Source: The Export Practitioner, 30 Jun 2026) [Excerpts of paywall publication.]

The Directorate of Defense Trade Controls has issued Revision 5.2 of its Guidelines for Preparing Agreements, revising the core instructions for Technical Assistance Agreements, Manufacturing License Agreements and Warehouse and Distribution Agreements. . . . [More]

13. FedEx News: “President Trump Signs New Proclamation with Section 232 Changes to Increase the Domestic Manufacture of Strategic Metals”

(Source: FedEx Regulatory News, 30 Jun 2026) [Excerpts]

President Trump issued Proclamation 11032 titled “Further Adjusting the Tariff Regimes for Imports of Aluminum, Steel, and Copper into the United States” on June 1, 2026, to amend the Section 232 tariff framework introduced in Proclamation 11021 on April 6, 2026, by adding tariffs to new metal articles and derivatives products while reducing duty rates for other derivatives. US Customs and Border Protection (CBP) published Cargo System Message Service (CSMS)# 68855869 on June 5, 2026, to provide specific implementation instructions.

What has changed? The Section 232 steel, aluminum, and copper tariff changes became effective on April 6, 2026, and were amended on or after 12:01 a.m. EDT on June 8, 2026, for covered goods entered for consumption or withdrawn from warehouse for consumption. The primary changes in both Proclamations 11032 and 11021 are as follows: . . . [Full article]

14. ST&R Trade Report: “In the News: Tariff Agreements, De Minimis, Carbon Border Taxes, China Export Controls”

(Source: Sandler, Travis & Rosenberg Trade Report, 2 Jul 2026) [Excerpts]. Contact: [email protected], 1-305-894-1035

EU-U.S. tariff deal gets final approval ahead of Trump deadline. “The EU added several measures to the deal aimed at protecting European economies. … These measures include the decision to end the tariff preferences on December 31, 2029, unless extended. The agreed safeguards also allow the European Commission to suspend tariff preferences if Washington fails to reduce tariffs on EU steel and aluminium derivatives to 15% by the end of 2026, the European Parliament said.” [DPA]

EU extends Airbus-Boeing trade truce. “A truce struck in 2021 between the European Commission and the Biden administration has kept the dispute in abeyance ever since. It was due to expire on July 11. The duration of the new suspension is still being negotiated between Washington and Brussels, an EU official said.” [Europe Says]

EU’s new E-commerce duty for small packages takes effect. “The €3 rate is a transitional solution, agreed by EU Member States, as an urgent response to the challenges arising from the rapid growth of e-commerce. From July 2028, the EU Customs Data Hub will become operational, applying normal customs duties based on the good’s tariff classification, origin, and value, in accordance with existing/standard EU customs duty rules.” [European Commission]

EU extends carbon border levy to more steel and aluminum imports. “The European Commission proposed last year to extend the levy to 180 downstream products with significant steel or aluminium content. EU countries have now added about 200 more goods to that list, and the revised product coverage is due to enter negotiations with the European Parliament before taking effect from 2028.” [Traders Union]

China imposes trade curbs on dozens of U.S. firms. “On Monday, the Chinese Ministry of Commerce placed 10 American industrial suppliers on its export control list … barring exports of any dual-use items originating in China to the companies. In a separate statement Monday, the Chinese Finance Ministry excluded 46 U.S. companies, mostly defense contractors, from participating in government procurement projects. Any foreign-funded, locally registered entities associated with the excluded firms are exempted.” [CNBC]

15. Morrison Foerster: “DOJ National Security Division Issues First Declination Under Revised Corporate Enforcement and Voluntary Self-Disclosure Policy”

(Source: Morrison Foerster Alert, 1 Jul 2026) [Excerpts]

On June 17, 2026, the Department of Justice (DOJ) National Security Division (NSD) announced that it declined to charge technology company Robert Bosch GmbH (“Bosch” or the “Company”) after the Company voluntarily disclosed potential export-related violations involving two of its non-U.S.-based subsidiaries, Bosch Sensortec GmbH and ETAS GmbH.

The announcement marks NSD’s first declination under the revised Department-wide Corporate Enforcement and Voluntary Self-Disclosure Policy (CEP) issued in March 2026. The declination signals NSD’s continued emphasis on timely self-disclosure and remediation.

Key Takeaways:

[Full article]

16. Pillsbury: “UK Expands General Licensing for Dual-Use Exports”

(Source: Global Trade Blog, 1 Jul 2026) [Excerpts]

On June 25, 2026, the UK published a new Open General Export Licence (the “New OGEL”), permitting the export of a wide range of dual-use items to various low-risk destinations. The New OGEL consolidates existing open licensing routes for certain dual-use exports and adds coverage for several new destinations, reducing the need for individual license applications for eligible exports.

The New OGEL is particularly relevant for UK exporters of dual-use goods, software and technology that currently rely on the OGEL for dual-use exports to EU Member States (the “EU Dual-Use OGEL”), General Export Authorization (GEA) 001 or individual licenses for exports to lower-risk destinations.

Key Takeaways:

. . . [Full article]

17. Spiceworks: “How to Identify Fake IT Workers in Your Remote Hiring Pipeline”

(Source: Spiceworks, 1 Jul 2026) [Excerpts] (See related Item #5)

In April, according to a Department of Justice press release, two U.S. citizens were sentenced to seven and nine years in prison for compromising the identities of 80 U.S. nationals by using their social security numbers to apply for remote software development and IT jobs at more than 100 U.S. companies.

The duo reportedly operated an IT laptop mule farm in the U.S. to trick companies into believing that they had hired someone residing in the country with a legitimate address to ship the corporate laptop. The operation was part of a state-sponsored cyberscam that places North Korea-based operatives on the payroll of unsuspecting U.S. companies to spy on them and generate illicit revenue.

According to the DOJ, this gave them access to source codes and sensitive information, including International Traffic in Arms Regulations (ITAR) data from a California-based defense contractor that develops AI-enabled equipment and technologies. . . . [Full article]

18. ST&R Trade Report: “AGOA Tariff Preference Eligibility Under Review”

(Source: Sandler, Travis & Rosenberg Trade Report, 2 Jul 2026) [Excerpts]. Contact: [email protected], 1-305-894-1035

Importers and others can now seek changes in the eligibility of sub-Saharan African countries to receive benefits under the African Growth and Opportunity Act as part of the Office of the U.S. Trade Representative’s annual review. USTR will hold a public hearing July 23; pre-hearing written comments, requests to testify, and written testimony are due by July 13; and post-hearing written comments and statement, briefs, and supplementary materials are due by July 30.

Public comments will be considered in developing recommendations on AGOA country eligibility for 2027, assuming the program is reauthorized past its scheduled Dec. 31, 2026, expiration date. In addition, comments related to the AGOA child and forced labor criteria may be considered by the Department of Labor as it prepares its required report on that issue.

For 2026 the following have been designated as beneficiary SSA countries: . . . The following are not currently designated as beneficiary SSA countries: . . . The president may designate a country as eligible for AGOA duty-free treatment for certain additional products not included in the Generalized System of Preferences, as well as preferential treatment for certain textile and apparel articles, if that country meets the applicable eligibility criteria. . . .

If the president determines that an AGOA beneficiary is not making continual progress in meeting the eligibility requirements, the designation of that country as a beneficiary must be terminated. However, the president may also withdraw, suspend, or limit the application of duty-free treatment with respect to specific articles from a country if doing so would be more effective in promoting compliance with AGOA eligibility requirements.

19. Volkov: “Who Owns Third-Party AI Risk?”

(Source: Volkov Law, 2 Jul 2026) [Excerpts]

When it comes to third-party vendors, what you don’t know is hurting you. Third parties rely on AI for customer service, recruiting, compliance screening, marketing, and decision-making. But when a third party uses AI, your organization is on the hook for legal, regulatory, contractual, and reputational risks.

Organizations need to understand which third parties use AI, what tools they use, what data is being shared, what controls exist, and who is responsible when something inevitably goes wrong. Third-party AI governance is a critical component of vendor management. . . . [Listen to audio of this item.]

20. Export Compliance Solutions Presents: “9th Annual ITAR/EAR Symposium” Seminar, 15–16 Sep 2026 in Annapolis

(Source: Marie Nicolo)

21. List of Export/Import Job Openings

(Source: Editor)

22. Bartlett’s Unfamiliar Quotations

(Source: Brainy Quotes)

Hermann Hesse (Hermann Karl Hesse; 2 Jul 1877 – 9 Aug 1962; was a German-born Swiss poet, novelist, and painter. His best known works include Demian, Steppenwolf, Siddhartha, and The Glass Bead Game, each of which explores an individual’s search for authenticity, self-knowledge and spirituality. In 1946, he received the Nobel Prize in Literature.)

Thurgood Marshall (2 Jul 1908 – 24 Jan 1993; was an American lawyer and civil rights activist who served as Associate Justice of the Supreme Court of the United States from October 1967 until October 1991. Marshall was the first African-American Supreme Court Justice in the history of the United States. Before his judicial service, he successfully argued several cases before the Supreme Court, including Brown v. Board of Education.)

Wisława Szymborska (Maria Wisława Anna Szymborska; 2 Jul 1923 – 1 Feb 2012; was a Polish poet, essayist, translator, and recipient of the 1996 Nobel Prize in Literature.)

23. Today in History

(Source: History Channel)

1881: Assassination of President James A. Garfield. On July 2, 1881, newly inaugurated President James A. Garfield was mortally wounded by a deranged gunman.

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

(Source: Editor)

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25. 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.