26-0721: Tuesday's "Export/Import Daily Bugle"

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

(Source: Today's Federal Register)

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

(Source: Future Federal Register)

3. CBP Cargo Systems Messages

(Source: DHS/CBP/CSMS)

4. CBP Events in July and August 2026

(Source: OTR Webinars)

5. Commerce/BIS (Nothing new.)

(Source: Commerce/BIS)

6. DoD/DSCA Updates SAMM Policy on Building Partner Capacity Closure Adjustment

(Source: Defense Security Cooperation Agency, 20 Jul 2026)

DSCA posts Policy Memo 26-03 Title 10 and Title 22 Building Partner Capacity Closure Adjustment. This memorandum establishes policy on how to conduct verified closure adjustment activities (also referred to as "force closure") for Title 10 and Title 22 Building Partner Capacity (BPC) Letters of Offer and Acceptance (LOAs) funded with appropriations that have cancelled or are cancelling and are no longer available for obligation or liquidation of incurred liabilities.

This memorandum supersedes DSCA 25-48 by incorporating the guidance into the SAMM. This memo adds:

7. State/DDTC (Nothing new.)

(Source: State/DDTC)

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

(Source: The White House)

9. Breaking Defense: "CMMC May be Paused, but Cybersecurity Audits Likely to Return"

(Source: Breaking Defense, 21 Jul 2026) [Excerpts]

Despite the pause of third-party audits in a Defense Department program for contractors, the Pentagon will likely have to return to some kind of review regime to ensure there are no unlocked virtual doors for adversary hackers to walk through, according to industry officials and experts.
     Leaders in the Department of Defense and Small Business Administration announced Monday that they are taking a pause on Phase II of the Cybersecurity Maturity Model Certification (CMMC) program, which requires companies working with the DoD to undergo third-party assessments to ensure they're compliant with cybersecurity standards.
     CMMC does not set the standards; those come from NIST SP 800-171 Rev 2, which outlines 110 cybersecurity requirements to protect controlled unclassified information (CUI). CMMC, rather, is focused on ensuring any contractor bidding for a certain capability complies with said standards. . . . [Full article]

10. CBC: "Trump Threatens Canada with New 50% Tariffs in Latest Ramp-Up of Trade War"

(Source: Canadian Broadcasting Company, 21 Jul 2026) [Excerpts]

U.S. President Donald Trump signed proclamations Monday that will impose 50 per cent tariffs on a swath of Canadian exports in the latest ramp-up in the president's trade war against Canada.

The Latest:

[Full article]

11. Expeditors News: "UK-India Free Trade Agreement Goes Live"

(Source: Expeditors News, 20 Jul 2026) [Excerpts]

According to a press release from the United Kingdom's (UK's) Department for Business and Trade, the UK-India Free Trade Agreement (FTA) entered into force on July 15, 2026.
     This FTA reduces tariffs on a variety of goods, including whisky, automotives, cosmetics, and other products. The UK government projects that the agreement could "boost UK GDP by £4.8bn, real wages by £2.2bn and bilateral trade by £25.5bn every year in the long run."
     More information on the UK-India FTA is HERE. The UK government's press release on the FTA is HERE.

12. ST&R Trade Report: "Penalties, Prison Time Highlight Increase in Customs Enforcement"

(Source: Sandler, Travis & Rosenberg Trade Report, 21 Jul 2026) [Excerpts]. Contact: [email protected], 1-305-894-1035

Several penalties announced recently by the Department of Justice highlight the broad scope of the federal government's ongoing increase in trade and customs enforcement:

[Full article]

13. Wall Street Journal: "Trump Fashions a Trade Policy for the AI Age"

(Source: WSJ.com, 21 Jul 2026) [Excerpts of subscription service.]

It has nothing to do with tariffs. The U.S. is working to dismantle barriers to international data flows. Since President Trump returned to the White House, Washington's trade debate has revolved around tariffs.
     But something much more consequential has been unfolding. The administration is building what could become the foundation of a global trading system for the age of artificial intelligence.
     Through nine agreements on reciprocal trade and a growing number of preliminary framework agreements with key partners, the administration is modernizing international trade rules for an economy driven by data, software, cloud computing and AI. If this effort succeeds, it may become the administration's most lasting and beneficial trade achievement. . . . [Full article]

14. Baker/McKenzie: "US Administration Issues New Executive Order on Quantum Innovation"

(Source: Global Sanctions and Export Controls Blog, 21 Jul 2026) [Excerpts]

* Principal Author: Sumon Dantiki; Baker Mckenzie

On June 22, 2026, President Trump signed Executive Order 14411, on Ushering in the Next Frontier of Quantum Innovation (the "EO"). The EO establishes a national policy to maintain a strategic technical advantage in quantum information science and technology (QIST) and leads the development of a robust and trusted quantum ecosystem across QIST research, manufacturing, commercialization, and application.
     The EO is directed at accelerating domestic commercialization and research. Additionally, several EO provisions address export control, foreign investment, and research security measures aimed at maintaining US dominance in QIST fields.
     The EO directs a multi-agency effort to protect quantum technologies and to align US controls with those of allied governments, signaling potential regulatory changes for the QIST sector and its supply chain over the coming months.
     The EO orders the Secretary of State to align treaty frameworks (such as Pax Silica) with the EO's stated priorities within 120 days of the EO. Additionally, the Secretary of Commerce is to provide recommendations to address foreign trade barriers, discriminatory treatment, and other policies impairing the competitiveness of American QIST companies. . . . [Full article]

15. Braumiller: "Trump Administration Announces 50% Tariffs on Certain Canadian Products Effective August 19"

(Source: Braumiller, 21 Jul 2026) [Excerpts]

* Author: Bob Brewer, Braumiller Consulting Group LLC

On July 20, 2026, President Donald Trump announced that his administration will impose additional 50% ad valorem duties on a range of Canadian products, effective 12:01 a.m. ET on August 19, 2026. The announcement came via three separate proclamations that claimed Canadian discrimination against U.S. commerce in dairy products, alcoholic beverages, and motor vehicles, respectively.
     Annex II of the motor vehicles proclamation provides a full list of subject merchandise, which spans most sections of the Harmonized Tariff Schedule. The additional 50% ad valorem duties will not apply to goods that are already subject to Section 232 tariffs, nor will they apply to goods subject to the World Trade Organization Agreement on Trade in Civil Aircraft (except for unmanned aircraft).
     President Trump cited Section 338 of the Tariff Act of 1930 (19 U.S.C. 1338) as legal justification for the proposed tariffs. Part of the original Smoot-Hawley Tariff Act, Section 338 authorizes the president to impose additional duties of up to 50 percent against a foreign country that places a "burden or disadvantage" on U.S. commerce through direct or indirect discrimination. . . .
     The proposed tariffs come in response to Canadian tariff-rate quotas on U.S. dairy products, regional governments' prohibitions against the purchase and distribution of U.S. alcoholic beverages, and tariffs on U.S. motor vehicles that do not receive preferential, duty-free treatment under the United States-Mexico-Canada Agreement (USMCA). . . . [Full article]

16. Morgan Lewis: "BIS Upgrades UAE Export Control Status, with AI Chip Access Limited to Approved Entities"

(Source: M/L LawFlash, 21 Jul 2026) [Excerpts]

* Principal Author: Michael Huneke, Morgan, Lewis & Bockius LLP

The US Department of Commerce's Bureau of Industry and Security (BIS) issued a final rule, effective July 10, 2026, that significantly updates the United Arab Emirates' treatment under the Export Administration Regulations. The rule removes the UAE from Country Groups D:3 and D:4, adds the UAE to Country Group A:5, and creates a new entity-specific approval framework for advanced computing items and License Exception Strategic Trade Authorization.
     The Bureau of Industry and Security (BIS) framed the changes as reflecting the UAE's status as a US Major Defense Partner, its support for US national security interests, and its commitments to protect sensitive US technology from diversion or misuse.
     BIS also linked the rule to the May 2025 US-UAE AI Acceleration Partnership framework, under which the countries agreed to deepen technology cooperation, including the launch of a 1 gigawatt (GW) AI data center as part of a planned 5 GW AI technology cluster in Abu Dhabi. . . .
     [Full article]

17. Morrison Foerster: "U.S.-UAE Cooperation Deepens, as BIS Eases Export Control Restrictions on UAE"

(Source: Morrison Foerster LLP Client Alert, 20 July 2026)

* Principal Author: Chris Chamberlain, Morrison Foerster LLP

On July 10, 2026, the U.S. Department of Commerce's Bureau of Industry and Security (BIS) published a Final Rule significantly easing export controls for the United Arab Emirates (UAE) (the "Final Rule"). The Final Rule is effective immediately. Key changes are as follows:

As a result of this development, companies should consider evaluating if their UAE partners and customers qualify for more favorable treatment under the Final Rule. Note that approval is frequently entity-specific, not country-wide, and the license exceptions require that certain conditions must be met for use. [Continued]

18. Steptoe: "Human Rights Due Diligence vs. Documentary Compliance"

(Source: Steptoe Client Alerts, 21 Jul 2026) [Excerpts]

* Principal Author: Jonathan C. Drimmer, Steptoe LLP

Within weeks of one another, the world's two most influential forced labor enforcement authorities released guidance documents addressing forced labor import compliance.
     On June 9, 2026, US Customs and Border Protection (CBP) published its Forced Labor Enforcement Operational Guidance for Importers, covering Section 307 of the Tariff Act, the Uyghur Forced Labor Prevention Act (UFLPA), and CAATSA. Soon thereafter, the European Commission (EC) released guidance on the application of the EU Forced Labor Regulation (EUFLR).
     Both documents share a common objective: helping companies understand, identify, and address forced labor risks in increasingly complex global supply chains. However, the documents reveal different visions of compliance and enforcement.
     CBP focuses mostly on traceability, documentary substantiation, and the practical realities of customs enforcement; the EC emphasizes human rights due diligence systems and corporate governance aligned with the UN Guiding Principles on Business and Human Rights (UNGPs) and other European sustainability regulation. . . .
     The CBP Forced Labor Guidance: . . . [Full article]

19. ST&R Trade Report: "Import and Export Restrictions Proposed on Additional Chemical Substances"

(Source: Sandler, Travis & Rosenberg Trade Report, 21 Jul 2026) [Excerpts]. Contact: [email protected], 1-305-894-1035

The Drug Enforcement Administration is accepting comments through Aug. 7 on two proposed rules that would place the following substances, including their isomers, esters, ethers, salts, and salts of isomers, esters, and ethers, in Schedule 1 of the Controlled Substances Act:

These rules would impose the regulatory controls and administrative, civil, and criminal sanctions applicable to schedule I controlled substances on persons who handle (import, export, manufacture, distribute, reverse distribute, engage in research or conduct instructional activities or chemical analysis with, or possess) or propose to handle these substances.

20. Volkov: "Which Vendors Create the Most Risk?"

(Source: Volkov Law, 21 Jul 2026)

* Principal Author: Michael Volkov, Volkov Law Group LLC

Some third parties create real legal risks. Other third parties create reputational risk. Not all third parties are the same. One of the most important concepts in modern third-party risk management is distinguishing between acting vendors and incidental vendors.
     An acting vendor performs services on your behalf. Think customer service providers, recruiters, customs brokers, distributors, and payment processors. When these vendors use AI or engage in misconduct, liability flows to your company.
     Incidental vendors present a different risk profile. Their primary exposure may be reputational rather than direct legal liability. This distinction is critical and allows companies to focus their resources where they matter most when it comes to mitigating risk. [Listen to podcast.]

21. Export Compliance Solutions Presents: "9th Annual ITAR/EAR Symposium" Seminar, 15-16 Sep 2026 in Annapolis

(Source: Marie Nicolo)

* What: "9th Annual ITAR/EAR Symposium" Seminar

* When: Tuesday & Wednesday, 15-16 September 2026, breakfast & lunch included.

* Where: Annapolis, MD

* Sponsor: Export Compliance Solutions & Consulting

* Presenters: Suzanne Palmer, Lisa Bencivenga, David Rosenburg, John Pisa-Relli, and Dave Greenlees.

* Summary: Interactive 2-day seminar including key compliance nuances and challenges for exporters. Including: "Models for Compliance Programs", "What is Causing all the RWAs", "The Government's View on How to Handle VDs from a former Senior Compliance Specialist", The Goals of OEE Investigations from a former Special Agent", "Don't Forget OFAC", and "How to Use AUKUS Effectively". For both novices and seasoned professionals.

* Register: HERE or email Marie Nicolo for more information.

22. Global Training Center Presents: "Due Diligence Course" on 22 Sep 2026

(Source: Global Training Center)

* What: Due Diligence Course

* When: Tuesday, 22 Sep 2026, 9am - 12:30pm CT

* Where: Online

* Summary: This course covers the risks companies should consider when building their due diligence programs and how to address them, with a particular focus on screening potential and existing business partners against numerous global restricted party lists. Attendees will receive templates for counterparty due diligence procedure and more.

* Presenter: Valentin Povarchuk, JD

* Register: HERE. More information: email [email protected].

23. List of Export/Import Job Openings

(Source: Editor)

25. Bartlett's Unfamiliar Quotations

(Source: Brainy Quotes)

* Matthew Prior (21 Jul 1664 – 18 Sep 1721; was an English poet and diplomat.)

- "And 'tis remarkable that they talk most who have the least to say."

- "It takes two to quarrel, but only one to end it."

* Ernest Hemingway (Ernest Miller Hemingway; 21 Jul 1899 – 2 July 1961; was an American journalist, novelist, short-story writer, and sportsman. Hemingway produced most of his work between the mid-1920s and the mid-1950s, and he won the Nobel Prize in Literature in 1954. He published seven novels, including The Sun Also Rises, A Farewell to Arms, To Have and Have Not, For Whom the Bell Tolls, and The Old Man and the Sea. Hemmingway died by suicide, and 35 years to the day after Hemingway's death, his granddaughter, actress Margaux Hemingway, also died by suicide, making her the fifth person in four generations of her family to commit suicide.)

- "There is nothing noble in being superior to your fellow men. True nobility lies in being superior to your former self."

- "Always do sober what you said you'd do drunk. That will teach you to keep your mouth shut."

- "All modern American literature comes from one book by Mark Twain called Huckleberry Finn."

- "Once we have a war there is only one thing to do. It must be won. For defeat brings worse things than any that can ever happen in war."

26. Today in History (Source: History Channel)

1861: The First Battle of Bull Run. On July 21, 1861, in the first major land battle of the Civil War, a large Union force under General Irvin McDowell was routed at the First Battle of Bull Run by a Confederate army under General Pierre G.T. Beauregard.

2007: Harry Potter and the Deathly Hallows, the final novel in J.K. Rowling's Harry Potter series, was released worldwide.

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

(Source: Editor)

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28. 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.