26-0812: Wednesday'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 August 2026

(Source: OTR Webinars)

5. Commerce/BIS (Nothing new.)

(Source: Commerce/BIS)

6. State/DDTC: Data Collection Modernization (DCM) Coming September 14 to Modernize DDTC's Licensing Experience

(Source: State/DDTC)

     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 before the release.
     Questions: Contact the DECCS Help Desk at 202-663-2838 or [email protected].

7. Treasury/OFAC: "Settlement Agreement between the U.S. Department of the Treasury's Office of Foreign Assets Control and Rice Lake Weighing Systems, Inc."

(Source: Treasury/OFAC, 12 Aug 2026)

     The U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) today announced a $60,764 settlement with Rice Lake Weighing Systems, Inc. ("Rice Lake"), a Wisconsin-based manufacturer of weighing equipment.
     Rice Lake agreed to settle its and its Italian subsidiary's potential civil liability for eight apparent violations of OFAC sanctions on Iran that occurred when its Italian subsidiary, Dini Argeo S.r.l. ("Dini"), exported goods to Iran through a distributor in the United Arab Emirates (UAE) with the knowledge that these goods were ultimately destined for Iran.
     Specifically, between July 2019 and November 2021, Dini exported weighing equipment to a distributor located in the UAE with the knowledge that those goods would be reexported to an end-user in Iran. OFAC determined that these apparent violations were voluntarily self-disclosed and non-egregious.
     For more information, please see the Enforcement Release. New information on OFAC Civil Penalties and Enforcement Information is now available.

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

(Source: The White House)

9. Breaking Defense: "Europe Wants ITAR-Free Weapons. US Firms are Trying to Adjust"

(Source: Breaking Defense, 12 Aug 2026) [Excerpts]

     WASHINGTON and FARNBOROUGH — US firms seeking to tap into ballooning European defense budgets are finding a new roadblock emerging: a desire by European capitals to avoid US control of weapon sales.
     There have long been concerns about how American International Traffic in Arms Regulations (ITAR) restrict foreign governments' ability to sell or transfer domestically built weapons that contain components originating in the US. And that concern is becoming harder to ignore as skepticism surrounding US and European relations has led to a serious push on the continent to move away from buying weapons with US-controlled parts, according to a half-dozen people who talked to Breaking Defense.
     "I see that as a growing trend that needs to happen within the EU, as sort of, like, an edict that's come out," Honeywell Aerospace CEO Jim Currier told Breaking Defense during last month's Farnborough Airshow.
     European governments have "been very, very clear in terms of how they want to fund, where they want to fund, their desire to have a more sovereign exposure," Currier added. "That's going to be an ongoing trend going forward."
Currier isn't alone in his view, with industry officials, analysts and lawyers also monitoring the changing market.
     Tom Kanewske, the chief strategy officer for US-based Zone 5, said that in recent months, he has seen a sizable shift, with potential European partners becoming "increasingly opposed" to ITAR restrictions.
"Unfortunately, a belief has developed that ITAR will negatively affect their sovereign tech contribution and that they can avoid these challenges by steering away from US weapons systems," Kanewske added. . . .
     In its simplest terms, ITAR is a set of US government rules to regulate the export and import of defense and military items on the United States Munitions List (USML), including services and technical data.
Scott Wise, a partner at Crowell & Moring and a member of the law firm's international trade group, said the bulk of foreign governments' concerns on ITAR is the "see-through rule." That rule, he told Breaking Defense, means ITAR regulators track the US-made components inside a foreign-built weapon system and control where those parts go and what they're used for.
     "If, for example, you are building a fighter jet in France, if you source ITAR components from the US, it's not that the fighter jet that becomes ITAR subject, [but] the item that you integrate into that fighter jet remains [an] ITAR subject," he explained. "So theoretically, if you take that fighter jet somewhere that would require a license, you don't need a license for the jet itself. You need a license for the [US] component that may be its engine, it's a turbine, [or] it's a wing." . . .

10. Diaz: "$5.15 Million Settlement Highlights Growing Customs Enforcement Under the False Claims Act"

(Source: Customs & International Trade Law Blog, 11 Aug 2026) [Excerpts]

* Author: Jennifer Diaz, Esq., Diaz Trade Law LLP

     The U.S. Department of Justice recently announced that a Taiwan-led manufacturer [Everlight Electronics] agreed to pay $5.15 million to resolve allegations under the False Claims Act and related administrative claims involving customs duties owed on imported goods. While the company did not admit liability, the settlement serves as another reminder that customs compliance remains a significant enforcement priority for the federal government.
     The Case -- What Happened: According to the DOJ, the alleged conduct went well beyond a simple classification error. The government alleged that the company used multiple methods over several years to reduce the customs duties it owed on imports. Specifically:

     To resolve the allegations under the False Claims Act and related administrative claims, the company agreed to pay $5.15 million. The settlement resolves allegations only, and there has been no determination of liability.
     The settlement also includes the resolution of claims brought under the qui tam, or whistleblower provisions of the False Claims Act by Tao Wang, a former employee of Everlight. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. Wang's share of the proceeds of the settlement will be $876,146. . . . [Full article]

11. Expeditors News: "CBP Reminds Trade of Electronic Payment Requirements for PSCs"

(Source: Expeditors News, 11 Aug 2026) [Excerpts]

     In a Cargo Systems Messaging Service (CSMS) bulletin published on August 3, 2026, U.S. Customs and Border Protection (CBP) reminded the trade community that, effective August 5, 2026, filers must electronically submit payment for any increases in duties, taxes in fees resulting from a Post Summary Corrections (PSCs).
     PSC filers must submit payment via the Automated Clearinghouse (ACH). If you are not a participant in the ACH debit or ACH credit programs, CBP recommends visiting its website to learn how to join.
     The CSMS also outlines the process of the ACH credit and ACH debit programs, full payment requirements, applicable interest charges, and PSC timeframe exceptions.
     CSMS # 69428352 is HERE. CBP's resources on their ACH programs are HERE.

12. Legis 1: "Trump Administration Rescinds Syria's Terrorism Designation"

(Source: Legis 1 News, 12 Aug 2026) [Excerpts]

     The Trump administration's move to lift sanctions on Syria represents a fundamental reversal of decades-old counterterrorism policy, with significant implications for Congress and U.S. foreign policy. The State Department frames the rescission as a historic step to empower Syria's new government following Assad's fall.
     Yet the policy shift occurs amid ongoing terrorist activity: extremist groups continue to attack religious and ethnic minorities, transitional government forces, and U.S. personnel in Syria, though they do not control significant territory.
     Three distinct statutes govern how Syria's designation can be rescinded: Section 620A of the Foreign Assistance Act of 1961, Section 40 of the Arms Export Control Act, and Section 1754(c) of the Export Controls Act of 2018. There are questions about whether the Arms Export Control Act's mechanism for blocking a rescission applies to Syria, since Syria's designation falls under the Export Controls Act of 2018. . . . [Full article]
     The State Sponsor of Terrorism (SST) designation was carried forward under Section 1768 of the Export Controls Act of 2018, establishing continuity across multiple regulatory regimes. For decades, Syria under the Al Asad family's government, provided support to U.S.-designated foreign terrorist organizations. The designation served as a potential deterrent to investment in Syria.

13. Nation: "China to Tighten Entry and Exit Controls from September 15"

(Source: The Nation, 12 Aug 2026) [Excerpts]

New China's rules allow travel bans for false applications, strengthen electronic-data checks and impose registration requirements on intermediaries.

     China will introduce stricter controls on people entering and leaving the country from September 15, 2026, under new State Council regulations covering travel applications, entry and exit restrictions and immigration-related intermediary services.
     The 19-article State Council Regulations on Exit and Entry Administration were approved at a State Council executive meeting on June 29 and signed by Premier Li Qiang under State Council Decree No 841 on July 22. The regulations were published on July 31. . . .
     Immigration and visa authorities may question applicants and require them to present or provide documents, materials and electronic data while their identity and stated purpose are being checked. . . . [Full article]

14. Shapiro: "Asia–U.S. Ocean Capacity Tightens Amid Severe Port Disruptions"

(Source: Shap Flash, 11 Aug 2026) [Excerpts]

     Importers moving cargo from Asia to the United States are facing a challenging ocean freight market as severe weather, port congestion, and cascading vessel schedule disruptions tighten available capacity.
     A series of typhoons across Asia has disrupted port operations and vessel schedules, with delays spreading through both direct and feeder networks. Shanghai, Ningbo and other major Asian gateways have experienced weather-related interruptions, while congestion in Vietnam has placed additional pressure on already strained carrier networks.
     Ho Chi Minh City/Cai Mep is experiencing particularly difficult operating conditions, with high terminal utilization contributing to port omissions, rolled cargo and unreliable sailing schedules.
     These disruptions have a compounding effect: when vessels are delayed or forced to omit ports, ships and containers are no longer positioned where carriers planned for their next voyages. The result is reduced effective capacity, tighter space and upward pressure on rates, even when underlying vessel capacity has not changed. . . .
     What this means for importers: Space from Asia to the U.S. is currently at a premium, and carriers may have difficulty honoring normal allocations and schedules. Shippers should expect continued volatility in rates, equipment and sailing availability; and should provide as much booking lead time and flexibility as possible.
     [Full article]

15. Space News: "U.S. Expands Missile Production as Army Seeks More Depth in Its Arsenal"

(Source: Space News, 11 Aug 2026) [Excerpts of subscription publication]

     HUNTSVILLE, Ala. — The Pentagon is pressing defense contractors to increase production of missile interceptors as recent conflicts expose a longstanding weakness in U.S. air and missile defense: inventories of the most capable weapons can be depleted faster than industry can replace them.
Army leaders say increasing production is only part of the answer.
     "The future of missile defense is a mix of high end and lower cost interceptors," said Lt. Gen. John Rafferty, commander of the U.S. Army Space and Missile Defense Command.
     Speaking with reporters at the Space & Missile Defense Symposium Aug. 11, Rafferty said he couldn't discuss how the Pentagon was addressing shortages of advanced hit-to-kill weapons used against ballistic missiles. Pentagon leaders, he said, "are the ones that are really signaling the need and the urgency for quantities." . . .
     His comments come as the Pentagon moves to expand production across the missile-defense industrial base after heavy use of U.S. interceptors in recent conflicts.
     Last week, the department announced multibillion-dollar agreements involving Lockheed Martin and Northrop Grumman to increase output of PAC-3 Missile Segment Enhancement and Terminal High Altitude Area Defense interceptors and components.
     Those actions follow a $1 billion Pentagon investment in L3Harris Technologies intended in part to expand solid rocket motor capacity.
The production push addresses the immediate problem of replenishing inventories. . . . . [Full article]

16. ST&R Trade Report: "Import Rules May be Further Tightened by FCC"

(Source: Sandler, Travis & Rosenberg Trade Report, 12 Aug 2026) [Excerpts]. Contact: [email protected], 1-305-894-1035

     The Federal Communications Commission is accepting comments through Sept. 8 on a broad set of potential measures to strengthen the security and integrity of its equipment authorization program.
     The FCC's Covered List comprises equipment and services that have been determined to pose an unacceptable risk to U.S. national security or the security and safety of U.S. persons. Equipment on this list is banned from receiving new FCC equipment authorizations, which are required prior to importation, marketing, or sale in the U.S.
     The FCC is seeking input on whether to make the following related regulatory changes: . . . [Full article]

17. Arent Fox: "Will Tariffs Ever Go Out of Style? Tariffs and Trade Agreement Negotiations Show No Signs of Slowing Down"

(Source: ArentFox Client Alerts, 10 Aug 2026) [Excerpts]

* Primary Author: Angela M. Santos, ArentFox Schiff LLP

     In July, a flurry of trade actions reshaped the trade landscape: the 150-day Section 122 global tariffs expired, new Section 301 forced labor tariffs immediately took their place, various Agreements on Reciprocal Trade were negotiated, and the United States-Mexico-Canada Agreement (USMCA) entered a consequential annual-review period.
     This is on top of existing tariffs and several other possible tariff actions that loom on the horizon, including the structural excess capacity and production Section 301 investigation, Vietnam Section 301 investigation, Section 338 tariffs on Canada, and others.
     For fashion and retail companies — brands, retailers, importers, licensees, and their compliance teams — these tariff developments are yet another reminder that the everchanging trade landscape requires ongoing monitoring: companies should continually assess both the scope of these measures and their company's exposure and be ready to pivot as necessary. Below, we provide a practical overview of the key developments and practical next steps.
     Section 122 Tariffs Expire; Section 301 Forced Labor Tariffs Take Effect Immediately. On July 24, the global tariffs imposed under Section 122 of the Trade Act of 1974 implemented to replace the International Emergency Economic Powers Act (IEEPA) invalidated by the US Supreme Court, expired after reaching their 150-day statutory limit. The Section 122 tariffs are the subject of several pending lawsuits disputing their legality.
     The Administration had long signaled its intent to use Section 301 of the Trade Act of 1974 to preserve prior tariff levels under IEEPA. Treasury Secretary Scott Bessent stated publicly that "if Section 301 investigations succeed, tariff rates are going to go back to exactly where they were." This intent was also echoed by US Trade Representative (USTR) Ambassador Jamieson Greer.
     The USTR moved quickly, and Section 301 tariffs targeting forced labor practices took effect on July 24. See our prior alert on the proposed implementation. . . . The new tariffs are structured as follows: . . . [Full article]

18. Baker/McKenzie: "BIS Restricts Exports of Black Mass and Tungsten Waste and Scrap without a License"

(Source: Global Sanctions and Export Controls Blog, 11 Aug 2026) [Excerpts]

* Principal Author: Kerry B. Contini; Baker Mckenzie

     On August 6, 2026, the US Department of Commerce's Bureau of Industry and Security ("BIS") published a temporary final rule (the "Rule") that restricts exports of black mass and tungsten waste and scrap without a license. Beginning August 27, 2026, US persons that sell black mass and tungsten waste and scrap must allocate 100 percent of their monthly sales to US persons, unless they first obtain an adjustment or exception from BIS.
     This Rule implements a July 30, 2026 Presidential Determination issued pursuant to Section 101 of the Defense Production Act of 1950, which found that certain recoverable critical minerals and materials are scarce and essential to the national defense of the United States, and which directed BIS to take immediate action to secure their supply.
     Below we summarize the key takeaways of the Rule:

[Full article]

19. Diaz: "New Section 201 Safeguard Tariffs on Quartz Surface Products"

(Source: Customs & International Trade Law Blog, 11 Aug 2026) [Excerpts]

* Author: Jennifer Diaz, Esq., Diaz Trade Law LLP

     On July 31, 2026, President Trump issued a proclamation imposing a Section 201 safeguard measure on imports of quartz surface products (QSP). The measure takes the form of a four-year tariff-rate quota (TRQ) and applies to goods entered, or withdrawn from warehouse for consumption, on or after 12:01 a.m. Eastern Time on Saturday, August 15, 2026.
     If you import QSP, including countertops, backsplashes, vanity tops, bar tops, work tops, tabletops, flooring, wall facing, shower surrounds, fireplace surrounds, mantels, and tiles, this measure will likely affect your imports.
     How the Tariff-Rate Quota Works: . . .
     Quota Volumes and Duty Rates by Year: . . .
     The New Safeguard Duties Are Added to Existing Tariffs: . . .
     Which Products Are Covered? . . .
     [Full article]

20. Volkov: "Ethisphere and Ethena Research on Compliance Role in Mitigating AI Risk"

(Source: Volkov Law, 12 Aug 2026) [Excerpts]

* Principal Author: Michael Volkov, Volkov Law Group LLC

     Ethisphere and Ethena just released a research report that every compliance officer should read carefully, not because it breaks new ground on AI risk, but because it turns the mirror around and asks an uncomfortable question: if ethics and compliance is the function writing the rules for how everyone else uses AI, why is it the function using AI the least itself?
     The report, based on a survey of 134 ethics and compliance leaders conducted in June 2026, gives this phenomenon a name: the Cobbler's Children problem. The shoemaker outfits the whole town while his own kids go barefoot.
     The Headline Number: A 45.5-Point Gap: . . .
     It Isn't a Money Problem: . . .
     Four Patterns Where the Gap Is Concentrated. The report identifies four distinct structural patterns worth understanding: . . .
     Governance Is Ahead of Enablement: . . . [Full article]

21. List of Export/Import Job Openings

(Source: Editor)

23. Bartlett's Unfamiliar Quotations

(Source: Brainy Quotes)

24. Today in History (Source: History Channel)

1851: Isaac Singer was granted a U.S. patent for improvements to the sewing machine, helping make practical home and industrial sewing machines widely available.

1908: Henry Ford's company built the first production Model T, the automobile that would help transform transportation and manufacturing.

25. 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.

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.