26-0813: Thursday's "Export/Import Daily Bugle"

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

(Source: Today's Federal Register)

2. Future Federal Register

(Source: Future Federal Register)

3. CBP Cargo Systems Messages

(Source: DHS/CBP/CSMS)

4. CBP Events in August 2026

(Source: OTR Webinars)

For assistance with webinar registration, access links, or to inquire about future notifications, you can contact the CBP Office of Trade Relations at [email protected].

5. Commerce/BIS (Nothing new.)

(Source: Commerce/BIS)

6. State/DDTC Concludes $36 Million Settlement Resolving Export Violations by BAE Systems, Inc.

(Source: State/DDTC, 13 Aug 2026) [Excerpts]

     The U.S. Department of State has concluded an administrative settlement with BAE to resolve 104 violations of the Arms Export Control Act (AECA), 22 U.S.C. § 2751 et seq., and the International Traffic in Arms Regulations (ITAR), 22 C.F.R. parts 120-130. . . .
     The administrative settlement between the Department of State and BAE, concluded pursuant to ITAR § 128.11, addresses multiple categories of ITAR violations, including BAE's unauthorized exports of technical data to multiple countries, including in one instance to China; violations of terms, conditions, and provisos of several Directorate of Defense Trade Controls authorizations involving various countries; and unauthorized exports of defense articles, including technical data, designated as Significant Military Equipment.
     BAE voluntarily disclosed all but one of the alleged violations, a substantial portion of which predate 2023. BAE fully cooperated with the Department's review of this matter and has implemented numerous improvements to its ITAR compliance program since the conduct at issue.
     Under the terms of the 36-month consent agreement, BAE will pay a civil penalty of $36 million. The Department has agreed to suspend $18 million of this amount on the condition that the funds will be used for the Department-approved Consent Agreement's remedial compliance measures to strengthen BAE's compliance program.
     In addition, for an initial period of at least 24 months, BAE will engage an external Special Compliance Officer to oversee the consent agreement, which will also require at least one external audit of its ITAR compliance program and implementation of additional compliance measures. . . .
     The Consent Agreement and related documents are available for public inspection in the Public Reading Room of the Department of State and on the Penalties and Oversights Agreements section of the DDTC's website.

7. Treasury/OFAC: Rice Lake Weighing Systems, to Pay $60.8K to Settle Charges of OFAC Violations

(Source: Treasury/OFAC, 12 Aug 2026) [Excerpts]

     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.

8. US Trade Representative Resolves the Yazaki, Mexico RRM Tariff Matter

(Source: USTR Press Office, 13 Aug 2026) [Excerpts]

     The United States today announced the successful resolution of the USMCA Rapid Response Labor Mechanism (RRM) matter at the Grupo Yazaki, S.A. de C.V. (Yazaki) facility located in Leon, Guanajuato, Mexico. The United States has resumed liquidation of tariffs on goods from the Yazaki facility, which manufactures automotive components, wire harnesses, and electronic components.
     Actions taken by Yazaki to address the matter include: . . .
     Actions taken by the Government of Mexico (Mexico) to address the matter include: . . .
     Based on these measures, the United States Trade Representative, Ambassador Greer, has directed the Secretary of the Treasury to resume liquidation of unliquidated entries of goods from the facility. . . .

9. White House Executive Actions: President Sets New Duty Rates on U.S. Imports of Unmanned Aircraft Systems and Unmanned Aircraft Systems Components

(Source: The White House, 13 Aug 2026) [Excerpts]

Proclamation: "ADJUSTING IMPORTS OF UNMANNED AIRCRAFT SYSTEMS AND UNMANNED AIRCRAFT SYSTEMS COMPONENTS INTO THE UNITED STATES"

     . . . Sec. 3. The Secretary found that import penetration from foreign producers of UAS is substantial and that the United States is too reliant on foreign sources of UAS and UAS components. . . .
     (1) Effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern time on September 3, 2026, . . . subchapter III of chapter 99 of the HTSUS is modified as provided in Annex IV to this proclamation and the applicable ad valorem rate of duty for the imports of UAS and UAS components listed in Annex I and Annex II to this proclamation shall be:
     (a) 100 percent for the UAS and UAS docking stations and critical components listed in Annex I to this proclamation, unless a lower rate of duty applies pursuant to clause (4) or (6) of this proclamation; and
     (b) 25 percent for the UAS listed in Annex II to this proclamation, unless a lower rate of duty applies pursuant to clause (4) or (6) of this proclamation.
     (2) Effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern time on February 9, 2027, for the UAS components listed in Annex III to this proclamation, the applicable ad valorem duty rate imposed pursuant to section 232 shall be 25 percent, unless a lower duty rate applies pursuant to clause (4) or (6) of this proclamation. . . . [Full proclamation]

10. Devdiscourse: "BAE Systems Inc. Settles for $36 Million Over Export Violations"

(Source: Devdiscourse News Desk, 13 Aug 2026) [Excerpts]

     In a major development, the U.S. Department of State declared a $36 million settlement with BAE Systems, Inc. This resolution addresses the company's violations of export regulations.
     The settlement is a monumental step toward enforcing compliance with export laws, highlighting the importance of adhering to regulatory standards in international trade.
The outcome reinforces the necessity for companies to operate within legal frameworks, ensuring that export activities align with established guidelines.
     The settlement addresses the company's violations of export regulations. This resolution emphasizes the importance of compliance with export laws in international trade. The outcome serves as a reminder for companies to adhere to legal frameworks in their export activities.
     [Full article]

11. Expeditors News: "Australia Announces Changes to BMSB Clearance Pathways"

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

     The Australian Department of Agriculture, Fisheries and Forestry (DAFF) has released Import Industry Advice Notice 130/2026 on July 31, 2026, which notified importers of changes to Brown Marmorated Stink Bug (BMSB) alternative clearance pathways for the 2026-27 BMSB risk season.
     The updated arrangements apply to the upcoming 2026-27 BMSB season and may impact how eligible goods are managed and cleared when they arrive in Australia.
     The following alternative clearance pathways will no longer apply for the 2026-27 BMSB season: . . .
     For details, refer to DAFF Import Industry Advice Notice 130-2026: "Changes to BMSB alternative clearance pathways for the 2026-27 BMSB season - DAFF" HERE.
     [Full article]

12. Space News: "Space Command Expands Alabama Footprint as Headquarters Relocation Advances"

(Source: Space News, 13 Aug 2026) [Excerpts of subscription publication]

     HUNTSVILLE, Ala. — Five years after a bruising political fight over where U.S. Space Command headquarters should be located, the debate is giving way to bulldozers, construction contracts and the practical challenges of moving one of the U.S. military's most complex commands.
     At Redstone Arsenal, where a 64-acre site has been cleared for U.S. Space Command's future headquarters, Gen. Stephen Whiting now works from a temporary office roughly once every six weeks as he divides his time between Alabama and Colorado Springs, where the command continues to operate.
     The arrangement will continue for years. If the current schedule holds, roughly half of the headquarters staff will be based in Huntsville by 2028, with the permanent facility completed in 2031 and the full workforce of about 1,800 personnel moving into the building the following year. . . . [Full article]

13. ST&R Trade Report: "ACE Schedule Updated"

(Source: Sandler, Travis & Rosenberg Trade Report, 13 Aug 2026) [Excerpts]. Contact: [email protected], 1-305-894-1035

     U.S. Customs and Border Protection has updated its schedule for deploying additional functionality to the Automated Commercial Environment. ACE functionality, including data reports, can help importers and others boost compliance and duty savings efforts.
     ACE Portal: . . .
     Collections: . . .
     Exports: . . .
     Mail shipments: . . .
     Manifests: . . .
     Sanctions: . . .
Removed. The following enhancements reported previously do not appear on the most recent ACE functionality schedule:
     Cargo Descriptions: . . .
     De Minimis Shipments: . . .
     Detentions: . . .
     In-bonds: . . .
     [Full article]

14. Washington Examiner: "White House Identifies Countries Evading Billions in Tariffs Through Transshipping"

(Source: Washington Examiner, 13 Aug 2026) [Excerpts]

     The White House is working to crack down on countries using loopholes to evade paying President Donald Trump's tariffs, including China, India, and Mexico. Peter Navarro, the senior White House counselor for trade and manufacturing, briefed reporters on the initiative Thursday morning.
     As part of the crackdown, the Council of Economic Advisers partnered with the Commerce Department and Goldman Sachs on a report identifying which trading partners are evading tariffs by transshipping, a tactic that involves moving cargo to an intermediate destination before reaching the United States.
     By transshipping, countries can escape paying higher tariffs by claiming the intermediate destination as the point of origin for determining how much is paid. . . .
     [Full article]

15. WTTL: "2026 Regulatory Agenda: Big Rule Changes in U.S. Trade and Economic-Security Compliance"

(Source: Washington Tariff & Trade Letter, 13 Aug 2026) [Excerpts of subscription publication]

     The federal government's newly released 2026 Unified Agenda points to material changes for importers, exporters, financial institutions, defense contractors, technology companies and customs intermediaries.
     Planned rulemakings include the suspension of duty-free de minimis treatment, a replacement framework for artificial-intelligence export controls, new restrictions on critical technologies and military end users, implementation of a statutory outbound-investment regime, revisions to the International Traffic in Arms Regulations, and continued digitization of customs reporting.
     The filing is an agenda—not a rulemaking instrument—and its target months are planning estimates rather than binding deadlines. Many entries may be delayed, revised or withdrawn.
     The Federal Register's 644-page version also contains only selected regulatory-flexibility entries and agency regulatory plans; the online Unified Agenda contains additional actions. The underlying filing has been reviewed for this report.
     De minimis overhaul the leading customs issue: . . . [Full article]

16. Export Practitioner: "Licensing Delays Costing Sales and Market Share in China"

(Source: The Export Practitioner, 11 Aug 2026) [Excerpts of paywall publication.]

     American companies are facing lengthy and increasingly unpredictable waits for permission to export controlled products to China, costing some businesses hundreds of millions or even billions of dollars, according to a new industry survey.
The US-China Business Council survey found that 95% of respondents identified long review times as a major challenge. Seventy-one percent said they had experienced delays obtaining licenses for products bound for Chinese customers.
     Two-thirds reported applications pending for at least three months, while 31% said some licenses had remained unresolved for one to two years. Before the second Trump administration, 56% said comparable applications were typically reviewed within one to three months.
     The findings suggest that the delays may be weakening U.S. suppliers without necessarily preventing China from obtaining comparable goods. Eighty-two percent of companies with pending applications said Chinese customers could source substitute products from Chinese or other international suppliers.
     Nearly three-quarters said licensing delays had caused sales to shift to Chinese competitors. Fifty-five percent reported losing business to international rivals, and 64% said they had surrendered market share in China.
     More than one-third of respondents estimated that delayed decisions had cost their companies at least tens of millions of dollars. Several reported losses reaching hundreds of millions or billions of dollars, according to the council.
     The USCBC, which represents American companies doing business with China, said the lost revenue could reduce the money available for research, development and international expansion—potentially undermining the technological and economic advantages the controls are intended to protect.
     Deterioration in confidence: . . . [Full article]

17. Miller & Chevalier: "BIS Export Controls 2025 Year-in-Review and 2026 Mid-Year Update"

(Source: International and Litigation Alert, 12 Aug 2026) [Excerpts]

* Primary Author: Timothy P. O'Toole, Miller & Chevalier LLP

     From an export controls perspective, the U.S. Department of Commerce, Bureau of Industry and Security (BIS) appeared relatively inactive for most of the first year and a half of the second Trump administration—at least when compared to the preceding four years. BIS tightened and refined some controls while retreating from other proposed restrictions.
     Amid significant personnel turnover and impacts caused by an extended government shutdown, among other factors, the agency's typical degree of public engagement on export controls and the average speed at which it processed license applications both decreased. However, BIS has signaled an increase in regulatory activity to kick-start the second half of 2026, with signs that a variety of changes may occur before its fiscal year ends in September.
     Notable developments from the start of 2025 through the end of June 2026 included the publication and later informal rescission of the "AI Diffusion Rule," publication then pause on implementation of the so-called "Affiliates Rule," relaxation of certain export controls on Syria, and a redoubled focus on enforcement.
     This period also saw the increased use of export controls as a foreign policy tool rather than as a tool primarily employed to address national security concerns. These and select other BIS activities from 2025 and the first half of 2026 are highlighted below: . . . [Full article]

18. ST&R Trade Report: "Anti-Boycott Violations Can Yield Substantial Penalties"

(Source: Sandler, Travis & Rosenberg Trade Report, 13 Aug 2026) [Excerpts]. Contact: [email protected], 1-305-894-1035

     U.S. companies and their foreign affiliates can be hit with substantial criminal and civil penalties if they violate prohibitions against participating in foreign boycotts that the U.S. does not sanction.
     The Arab League boycott of Israel is the principal foreign economic boycott that U.S. companies must be concerned with today, but the anti-boycott laws apply to all boycotts imposed by foreign countries that are unsanctioned by the U.S. In that context, the Treasury Department recently published its quarterly list of countries that require or may require participation in, or cooperation with, an international boycott. This list currently comprises Iraq, Kuwait, Lebanon, Libya, Qatar, Saudi Arabia, Syria, and Yemen, and has been unchanged for some time.
     The U.S. maintains two anti-boycott laws that are enforced by the Commerce Department through the Export Administration Regulations and the Treasury Department through the Internal Revenue Code. Under the anti-boycott provisions of the EAR, companies are prohibited from doing the following: . . .
     The EAR also require U.S. persons to report each quarter requests they have received to take certain actions to comply with, further, or support an unsanctioned foreign boycott. . . .
     The anti-boycott provisions of the Internal Revenue Code require U.S. taxpayers to report annually to the Internal Revenue Service: . . . [Full article]

19. Troutman: "To Sue or Not to Sue: That Is the Question for IEEPA Tariff Refunds"

(Source: Troutman Pepper Locke, 13 Aug 2026) [Excerpts]

* Author: Ryan Last, Troutman Pepper Locke LLP

Key Points

     Despite the U.S. Supreme Court's invalidation of tariffs imposed under the International Emergency Economic Powers Act (IEEPA) in Learning Resources, Inc. v. Trump, 607 U.S. 229 (2026), winning at the Supreme Court has not meant winning a refund — at least not for everyone.
     Over $86 billion in unlawfully collected duties has already been disbursed through U.S. Customs and Border Protection's (CBP) Consolidated Administration and Processing of Entries (CAPE) refund system, but a significant portion of outstanding refunds remains out of reach for importers with "finally liquidated" entries who have not filed individual lawsuits at the U.S. Court of International Trade (CIT). . . . [Full article]

20. Volkov: "Can You Trust AI During an Internal Investigation?"

(Source: Volkov Law, 13 Aug 2026) [Excerpts]

* Principal Author: Michael Volkov, Volkov Law Group LLC

     When you're conducting an internal investigation and using AI as a tool, you risk the use of a shifty informant. Let's talk about a risk that I'm seeing firsthand in internal investigations: AI hallucination. I use AI in my own practice, and I got scared very quickly because it cited cases that don't exist. It cited them confidently, persuasively, like it was reading straight off a court docket. It wasn't.
     Now imagine that inside an internal investigation. You're using an AI tool to summarize witness interviews, to search a document universe, to draft findings for audit committees. If that tool fabricates a fact, misattributes a quote, or invents a document that was never produced and nobody catches it, that error doesn't stay contained.
     It becomes your investigative record. It becomes the basis for a disciplinary decision, a self-disclosure to a regulator, maybe even a certification to the government that your findings are accurate.
     Here's the rule I put in place today: every AI-assisted output in an investigation gets independently verified against the underlying source material. Not spot-checked. Verified. Because the day you rely on an AI summary you never checked is the day that your investigation's credibility, and maybe your own, is on the line.
     [Listen to podcast of this topic HERE.]

21. Washington Tariff & Trade: "2026 Regulatory Agenda: Big Rule Changes in U.S. Trade and Economic-Security Compliance"

(Source: Washington Tariff & Trade Newsletter, 13 Aug 2026) [Excerpts of paywall publication.]

     The federal government's newly released 2026 Unified Agenda points to material changes for importers, exporters, financial institutions, defense contractors, technology companies and customs intermediaries.
     Planned rulemakings include the suspension of duty-free de minimis treatment, a replacement framework for artificial-intelligence export controls, new restrictions on critical technologies and military end users, implementation of a statutory outbound-investment regime, revisions to the International Traffic in Arms Regulations, and continued digitization of customs reporting.
     The filing is an agenda—not a rulemaking instrument—and its target months are planning estimates rather than binding deadlines. Many entries may be delayed, revised or withdrawn.
     The Federal Register's 644-page version also contains only selected regulatory-flexibility entries and agency regulatory plans; the online Unified Agenda contains additional actions. The underlying filing has been reviewed for this report.
     De minimis overhaul the leading customs issue: . . . [Full article]

22. Skill Dynamics Presents: "The Fundamentals of U.S. Export Regulations" 13-15 October 2026 in Dallas

(Source: Skill Dynamics (previously Content Enablers))

23. List of Export/Import Job Openings

(Source: Editor)

25. Bartlett's Unfamiliar Quotations

(Source: Brainy Quotes)

26. Today in History (Source: History Channel)

1521: Aztec capital falls to Cortés. After a three-month siege, Spanish forces under Hernán Cortés capture Tenochtitlán, the capital of the Aztec empire. Cortés' men leveled the city and captured Cuauhtémoc, the Aztec emperor.

27. 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.

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.