26-0810: Monday's "Export/Import Daily Bugle"

1. State Dept. Implements the Administrative False Claims Act

(Source: 91 FR 51386, 10 Aug 2026) [Excerpts]

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

(Source: Future Federal Register)

3. CBP Cargo Systems Messages

(Source: DHS/CBP/CSMS)

     To maintain an active license, individually licensed brokers must earn 20 CE credits from qualifying educational activities that occur beginning January 1, 2025, through January 31, 2027. January 31, 2027, is the end of the current triennial period.

4. CBP Events in August 2026

(Source: OTR Webinars)

5. Commerce/BIS (Nothing new.)

(Source: Commerce/BIS)

6. DoD/DSCA Posts LOA Modifications for Foreign Military Financing

(Source: Defense Security Cooperation Agency)

     DSCA has posted Policy Memo 26-80 Letter of Offer and Acceptance Modifications for Foreign Military Financing.
     This memorandum updates policy to allow adding the Foreign Military Sales (FMS) Credit (Repayable) and/or Foreign Military Financing (FMF) Guarantee Terms of Sale (ToS) to a Letter of Offer and Acceptance (LOA) via modification vice amendment.
     To add FMS Credit (Repayable) and/or an FMF Guarantee to an LOA, the partner must submit a written request to DSCA to initiate the modification. Changes to existing ToS on an LOA are not authorized. This policy is intended to facilitate partner access to financing more efficiently and on expedited timelines.
     This memo:

7. Justice Dept: "Chinese National Pleads Guilty to Trying to Obtain U.S. Military Equipment"

(Source: US Dept of Justice News, 10 Aug 2026) [Excerpts]

     Earlier today, Dingwei Chen, a 29-year-old citizen of the People's Republic of China, pleaded guilty in federal court in Salt Lake City to violating the Arms Export Control Act. U.S. District Judge David Sam accepted Chen's guilty plea and scheduled sentencing for Oct 19. Chen faces a maximum penalty of 20 years in prison. Chen attempted to purchase military-grade satellite modems and radios manufactured for the U.S. military by American companies.
     The specific communications hardware Chen attempted to buy may not be legally exported from the United States without a license from the Department of State's Directorate of Defense Trade Controls, which generally does not issue licenses to export military goods and services to China. . . .
     According to court records, Chen worked with others in China to try and acquire these sensitive communications systems from foreign arms dealers on the black market. They discussed various methods to export them to China. Initially, Chen and his co-conspirators sought to transship the goods through Switzerland; then they spoke about picking them up in Saipan; finally, they decided to smuggle through Mexico. . . . [Full article]

8. Senate Introduces "Blocking Large-Scale Adversarial Distillation Efforts (BLADE) Act"

(Source: Haggerty Senate Website, 5 Aug 2026) [Excerpts]

     On 5 Aug 2026, Senator Bill Hagerty (R-TN), along with Senate Banking Chairman Tim Scott (R-SC), Sen. Andy Kim (D-NJ), and Sen. Catherine Cortez Masto (D-NV), introduced the Blocking Large-Scale Adversarial Distillation Efforts (BLADE) Act of 2026, a bipartisan bill to deter malign foreign actors from stealing the proprietary capabilities of America's frontier AI companies.
     (The bill is aimed at protecting U.S. artificial intelligence companies from foreign actors that attempt to copy or extract capabilities from advanced American AI models through so-called model extraction or distillation attacks. According to the sponsors, such activities can threaten U.S. economic competitiveness and national security.)
     To deter unauthorized and illicit foreign model extraction attacks, the BLADE Act would direct the Executive Branch to identify and publicly expose foreign entities behind these malign activities, coordinate with industry to improve detection, and authorize the imposition of Commerce Department export controls and Treasury Department financial sanctions against these foreign entities. . . .
     [Full article]

9. State/DDTC: DECCS System Maintenance 7-8 Aug 2026, and Data Collection Modernization (DCM) Coming 14 Sep 2026

(Source: State/DDTC)

     The Defense Export Control and Compliance System (DECCS) will undergo system maintenance on Friday, August 7th, 2026, from 23:00 to Saturday August 8th, 17:00 (EST).
     Industry users may experience service degradation, interruptions, or limited application functionality within DECCS. If you experience any issues, please log back in after the maintenance window.
     Data Collection Modernization (DCM) Coming September 14, 2026 -- Modernizing DDTC's Licensing Experience. DDTC is pleased to announce the initial production release of the Data Collection Modernization (DCM) initiative, deploying to the DECCS Production environment on September 14, 2026.
     The Data Collection Modernization initiative is a multi-phase effort to modernize how DDTC collects, manages, and uses data across its digital services. This initial release focuses on enhancements to the licensing experience that improve data quality, streamline application submission, and deliver a more modern, user-friendly experience for industry users.
     This release affects:

     Organizations that submit applications through batch processes should ensure their systems are prepared for the September 14, 2026, production deployment. Updated user guides will be published prior to the release.
     If you have questions regarding this release, please contact the DECCS Help Desk at 202-663-2838 | [email protected].

10. Treasury/OFAC Updates SDN List; Counter Terrorism and Iran-related Designations; Counter Narcotics Designations Removals; Issuance of Amended Iran-related FAQ

(Source: Treasury/OFAC, 7 Aug 2026)

     The Department of the Treasury's Office of Foreign Assets Control (OFAC) is issuing an amended Iran-related Frequently Asked Question, FAQ 1257.
     The SDN list has recently been updated. Visit this page to access the latest version of the SDN list. Check this page periodically as it may also be updated if a new list-related format or product is offered. Visit this link for more information on today's update.

11. White House Executive Actions: (No items of interest.)

(Source: The White House)

12. CBS: "Senate Passes Long-Stalled Russia Sanctions Bill"

(Source: CBS News, 7 Aug 2026) [Excerpts]

Washington — After more than a year of negotiations, the Senate on Friday finally passed a bill to impose punishing new sanctions on Russia for its war on Ukraine, approving the measure with overwhelming bipartisan support.
     Senators had pushed for months for a vote on legislation that would penalize top Russian figures and the biggest buyers of Russian oil to dial up the pressure on Moscow to end the fighting. The Senate voted 86 to 11 to approve the bill, sending it to the House. . . .
     The bill, titled The Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, allows the president to impose tariffs of up to 100% on the top five purchasers of Russian oil or natural gas. There are exceptions for countries that import less than 15% of their natural gas from Russia and are taking "significant" steps to reduce the imports. It also includes sanctions on Russian President Vladimir Putin, officials within his government, oligarchs and Russian banks and financial institutions. . . .
     The bill also extends sanctions on Iran's energy and weapons sectors. The Iran sanctions were added at the urging of President Trump. It gives the president authority to waive the sanctions if he certifies to Congress that it's in the national interests of the U.S. . . .
     [Full article]

13. Crypto Briefing: "US Agency Reviews Chinese AI firms' Access to Nvidia Chips Through Overseas Channels"

(Source: Crypto Briefing, 7 Aug 2026) [Excerpts]

     A US government agency is conducting a sweeping review of how Chinese AI companies have been getting their hands on Nvidia's most advanced chips, even as Washington has spent years trying to cut off that exact pipeline.
     The review, reported by Bloomberg on August 7, 2026, zeroes in on a strategy that's been hiding in plain sight: rather than importing chips directly into China, where export controls block the shipments, Chinese firms have been renting computing power from data centers in other countries.
     The loophole that moved hundreds of thousands of chips. US export restrictions prevent Nvidia from shipping its most powerful processors directly to China. But those same rules, until recently, didn't stop Nvidia chips from ending up in data centers in Southeast Asia, the Middle East, or elsewhere, where Chinese companies could then lease access to them remotely.
     Industry estimates suggest that hundreds of thousands of advanced chips may have been delivered to Chinese entities through this regulatory gap before Washington moved to close it. . . .
     [Full article]

14. Expeditors News: "CBP to Offer Webinar on Wood Packaging Materials Compliance"

(Source: Expeditors News, 7 Aug 2026)

     In an update to their website on July 23, 2026, U.S. Customs and Border Protection (CBP) announced an upcoming webinar title "Wood Packaging Materials (WPM): Navigating Compliance." This webinar will review the steps that importers should follow when they receive an Emergency Action Notification (EAN). Representatives from CBP and Animal and Plant Health Inspection Service (APHIS) will walk participants through the steps of the resolution process.
     This webinar will be held on Tuesday, August 25, at 1:00 p.m. Eastern Time. You can register for this free webinar HERE.

15. People: "U.S. Suspends Avocado Inspection in Mexico Due to Unspecified Threat, Putting Imports at Risk"

(Source: People Magazine, 7 Aug 2026) [Excerpts]

     The U.S. has suspended avocado inspections in a major avocado supplier state in Mexico due to an unspecified threat. The United States suspended government activities in the Mexican state of Michoacan on Aug. 5 "due to a threat against American interests," a State Department spokesperson told PEOPLE over email.
     This suspension includes a temporary halt in avocado inspections, which are required to export avocados to the U.S., according to The Associated Press. The outlet reported that the U.S. Embassy did not share the specific nature of the threat that led to the pause in inspections in its security alert.
     The inspections, which involve U.S. Department of Agriculture (USDA) inspectors evaluating avocados to ensure they don't contain pests, are required in order to ship avocados to the U.S. The suspension could lead to a disruption in the importation of avocados. . . . [Full article]

16. ST&R Trade Report: "Legislative Update: Tariffs, Trade Preferences, Exports, IPR, Drugs, Rail Freight"

(Source: Sandler, Travis & Rosenberg Trade Report, 10 Aug 2026) [Excerpts]. Contact: [email protected], 1-305-894-1035

Tariffs. The Trade Deficit Elimination Act (S. 5315, introduced Aug. 6 by Sen. Scott, R-Fla.) would (1) require the Office of the U.S. Trade Representative to identify and publish each year a list of trading partners that run a trade deficit with the U.S., (2) authorize USTR to adjust tariffs on imports from these countries as needed to "close the gap," (3) permit exemptions for products critical to national security, essential supply chains, and goods that cannot reasonably be produced in the U.S., and (4) authorize USTR to negotiate trade agreements with these countries to shrink individual trade deficits through commitments to reform trade practices, buy more U.S. goods, or limit exports. . . .
     Trade preferences. The Senate passed Aug. 7 legislation (H.R. 6500) that would extend the African Growth and Opportunity Act and the Haiti HELP and HOPE acts through Dec. 31, 2028.
     Exports. S. 5380 (introduced Aug. 7 by Sens. Husted, R-Ohio, and Warner, D-Va.) would provide for a ten-year statute of limitations for export control violations under the Export Control Reform Act of 2018.
     IPR. The Senate amended and approved Aug. 7 S. 2677, which would expand the sharing of information with respect to suspected violations of intellectual property rights in trade.
     Drugs. The Use Sovereignty to Reduce Rx Act (S. 5265, introduced Aug. 5 by Sen. Sheehy, R-Mont.) would direct USTR to (1) establish the position of chief pharmaceutical trade negotiator, who would identify foreign price controls on drugs innovated in the U.S., (2) compile and release an annual report on the policies and practices of high-income countries relating to the trade of pharmaceutical products, and (3) submit to the House Ways and Means and Senate Finance committees a plan to respond to the policies and practices of high-income countries, which may include initiating an investigation under title III of the Trade Act of 1974.
     Rail freight. S. 5294 (introduced Aug. 6 by Sen. Ernst, R-Iowa) would require all railroad freight cars operating on the U.S. general railroad system of transportation to meet certain manufacturing and content requirements. [Full article]

17. ST&R Trade Report: "The Week Ahead: 301 Tariffs, Import Restrictions, Defense Exports"

(Source: Sandler, Travis & Rosenberg Trade Report, 10 Aug 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.

18. Troutman: "Grid Lockout: FCC Bars Foreign-Produced Power Inverters From the US Market"

(Source: Troutman Pepper Locke, 10 Aug 2026) [Excerpts]

* Author: Ryan Last, Troutman Pepper Locke LLP

Key Points

[Full article]

19. Tuttle Law: "President Announces Adjustments to Imports of Polysilicon and Derivative Products"

(Source: Author, 7 Aug 2026) [Excerpts]

* Author: George Tuttle, Law Offices of George R. Tuttle, PC

     In a proclamation published August 6, 2026, President Trump addressed the findings of the Secretary of State in an investigation under Section 232 of the Trade Expansion Act of 1962 that the imports of polysilicon and derivative products pose a threat to the national security and economy of the United States.
     Specifically, polysilicon and derivative products are essential to the manufacture of semiconductors and solar products, which are crucial to the defense programs and AI systems. The proclamation establishes measures to be taken under Sections 232 and 301.
     Impact of Polysilicon Tariffs. The proclamation establishes a minimum import prices (MIP) program for polysilicon and polysilicon derivatives to create a protected domestic market that allows United States producers to compete free from global distortions, as well as a 15 percent ad valorem rate of duty on downstream polysilicon derivatives.
     The applicable MIP for imported polysilicon and polysilicon derivatives shall be:

     Effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern time on December 4, 2026, imports of polysilicon and polysilicon derivatives specified in Annexes I and II to the proclamation shall be subject to the MIP program, as detailed in this clause. . . . [Full article]

20. Volkov: "AI, Due Diligence, and the Limits of Machine Judgment"

(Source: Volkov Law, 9 Aug 2026) [Excerpts]

* Principal Author: Michael Volkov, Volkov Law Group LLC

     In this episode of Corruption, Crime and Compliance, Michael Volkov sits down with Christian Focacci, founder of Threat Digital, for their annual check-in on AI's evolving role in due diligence and compliance.
     Focacci traces how AI adoption has matured from early hype and generic chatbot rollouts to more disciplined, use-case-specific tooling, while cautioning that the underlying models still hallucinate and should never be treated as an authoritative source rather than a reviewer of externally cited, verifiable information.
     The conversation covers the widespread problem of "shadow AI" use inside organizations without governance, the risks of letting AI creep into discretionary decision-making without human accountability, and emerging third-party risk questions as companies must now vet how vendors themselves are using AI.
     Volkov and Focacci also discuss the rapid rise of open-weight Chinese models, the regulatory patchwork forming at the state level (particularly around HR uses of AI), and the risk of regulatory capture favoring large AI incumbents over smaller innovators. The episode closes on a balanced note: AI is genuinely valuable for processing large data sets, triaging sanctions alerts, and boosting productivity, but only when paired with rigorous human oversight, clear documentation, and citations traceable back to verifiable source material. [Listen HERE]

21. Export Compliance Solutions Presents: "Virtual ITAR/EAR Boot Camp" 13-14 October

(Source: Marie Nicolo)

22. List of Export/Import Job Openings

(Source: Editor)

24. Bartlett's Unfamiliar Quotations

(Source: Brainy Quotes)

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

(Source: Editor)

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26. 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.