26-0817: Monday'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: Plexon, Inc. to Pay $1.7 Million to Settle EAR Violation Charges

(Source: Commerce/BIS, 17 Aug 2026)

6. Commerce/USCS to Hold Vietnam Defense Webinar 20 Aug 2026

(Source: Commerce Dept., US Commercial Service) [Excerpts]

7. DSCA Memo Amends FMS Sales Closure Policies

(Source: Defense Security Cooperation Agency, 17 Aug 2026)

DSCA has posted Policy Memo 26-85 Title 22 Foreign Military Sales Closure Adjustment. This memorandum establishes policy on how to conduct verified closure adjustment activities for Title 22 (T22) Foreign Military Sales (FMS) Letters of Offer and Acceptance (LOAs) in advance of case closure. This memo:

8. State/DDTC DECCS to Undergo Maintenance 19 Aug 2026

(Source: State/DDTC)

     The Defense Export Control and Compliance System (DECCS) will undergo system maintenance on Wednesday, August 19, 2026, from 5:00 pm to 7:00 pm (ET). Industry will not be able to access DECCS for the duration of this window. If you experience any issues after this timeframe, please contact the Help Desk.

9. U.S. Appeals Court Affirms No Constitutional Right to Export Guns

(Source: U.S. Court of Appeals for 3rd Circuit, 10 Aug 2026) [Excerpts]

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

(Source: The White House)

11. Breaking Defense: "Kubasik Ousted as L3Harris CEO Following Conduct Violation, Company Says"

(Source: Breaking Defense News, 17 Aug 2026)

     L3Harris has removed Chris Kubasik from his role as chairman and chief executive after a company investigation found he had violated its code of conduct, L3Harris announced today.
     Effective immediately, defense industry veteran Sam Mehta — who currently leads L3Harris's space business — will step in as the company's CEO, while Lewis Hay, its lead independent director, will become chairman of the board. . . .
     L3Harris did not provide specifics on what led to Kubasik's ouster, but said in a press release that the company "became aware" of conduct by Kubasik "that was not consistent" with its code of conduct. "This conduct was unrelated to the Company's financial reporting, controls, customer relationships or operational performance," the company said in a statement. "Following its investigation of these matters with the assistance of independent counsel, the Board determined that it would be in the best interests of the Company to enter into a separation agreement with Kubasik."
     Kubasik joined L3 Technologies as its chief operating officer in 2015 after resigning from Lockheed Martin in 2012 when Kubasik — then Lockheed's CEO-elect — was found to have had an improper relationship with a subordinate. . . .

12. Diaz: "New 232 Tariffs on UAS, DOJ Seeks to Vacate IEEPA Refund Injunctions"

(Source: Customs & International Trade Law Blog, 15 Aug 2026) [Excerpts]

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

Customs and Border Protection (CBP)

Administration

Courts

U.S. Department of Treasury

Office of Foreign Assets Control (OFAC)

U.S. Food and Drug Administration (FDA)

Congress

Industry News

International

13. Expeditors News: "White House Announces Section 232 Tariffs on Unmanned Aircraft Systems"

(Source: Expeditors News, 14 Aug 2026) [Excerpts]

     In a Presidential Proclamation published on August 13, 2026, The White House announced that it was introducing Section 232 tariffs on unmanned aircraft systems (UAS), as well as their parts and components.
     These Section 232 will be tiered, with UAS and UAS components that are "sensitive for national security purposes" subject to a 100% duty rate, while most UAS products will be subject to a 25% duty rate.
     UAS Products of Japan, the Republic of Korea, Taiwan, Switzerland, Liechtenstein, or a member nation of the European Union, the duty rate will "shall be no higher than 15 percent ad valorem, including any duty rate under Column 1" of the Harmonized Tariff Schedule. Products of the United Kingdom, the duty rate will be no higher than 10% ad valorum.
     These Section 232 duties will apply to UAS goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern time on September 3, 2026. . . .
     The "Adjusting Imports of Unmanned Aircraft Systems and Unmanned Aircraft Systems Components into the United States" Presidential Proclamation can be found HERE.

14. Security Affairs: "IEH Corp Breached by a Phishing Attack Potentially Exposing Export-Controlled Military Data"

(Source: Security Affairs, 9 Aug 2026) [Excerpts]

     IEH Corporation is a U.S. defense and aerospace manufacturer based in Brooklyn, New York. The company specializes in high-reliability electrical connectors, particularly hyperboloid connectors used in demanding military and aerospace environments. Its connectors are used in systems including rotary-wing aircraft, THAAD and Patriot missile systems, fighter aircraft, airborne radar systems, satellites and spacecraft, military radios, and torpedoes.
     IEH Corporation disclosed a cyberattack in an 8-K filing with the SEC. The company discovered the breach on 4 August 2026. An employee clicked a link disguised as a Microsoft document-sharing link from what appeared to be a prospective business contact, entered their Microsoft 365 credentials into a fake login page, and handed an attacker full access to their inbox. . . .
     The attacker accessed company's mailbox, exposing emails, attachments, customer data, engineering documents and potentially export-controlled information. No data exfiltration was confirmed. The U.S. Defense Manufacturer secured the account and removed malicious mailbox rules. . . .
     The attack didn't require any technical sophistication. Someone posing as a business contact sent a convincing link, and one click was enough. The fact that malicious mailbox rules had been created, and had to be disabled, suggests the attacker was in the account long enough to set up persistence, likely to maintain access or intercept future emails silently.

15. Straits Times: "Firms Transshipping Through Singapore Must Declare Country of Origin of Goods"

(Source: Straits Times, 16 Aug 2026) [Excerpts]

     Companies transshipping goods through Singapore are expected to fully comply with the Republic's laws and regulations, including accurately declaring the country and region of origin, said the Ministry of Trade and Industry (MTI) on Aug 15.
     The MTI was responding to queries from The Straits Times about a report issued on Aug 13 by US President Donald Trump's administration that flagged Singapore and dozens of other economies as at risk of being used by Chinese exporters to avoid US tariffs.
     The report issued by the White House, titled "The Great Transshipment Scam", framed the routing of Chinese goods through an intermediate lower-tariff country as an elaborate scheme to conceal their true origin. . . .
     The circular stated that all customs declarations, including Singapore's import, export and transshipment permit applications, are required to be accurate and truthful under the Customs Act and Regulation of Imports and Exports Act. . . . [Full article]

16. ST&R Trade Report: "Section 232 Tariffs to be Imposed on Drone Imports"

(Source: Sandler, Travis & Rosenberg Trade Report, 16 Aug 2026) [Excerpts]. Contact: [email protected], 1-305-894-1035

     President Trump issued Aug. 13 a proclamation imposing the following Section 232 tariffs on imports of unmanned aircraft systems (drones) and their parts and components.

     These tariffs will take effect for goods entered or withdrawn from warehouse for consumption on or after 12:01 a.m. EDT on (1) Sept. 3 for products listed in Annexes I and II or (2) Feb. 9, 2027, for drone components listed in Annex III and products and components that the Department of Defense has approved for an exemption from the Federal Communications Commission's Covered List by Sept. 2.
     The proclamation authorizes the inclusion of additional drone components within the scope of these tariffs "on a rolling basis" when it is determined that imports thereof threaten to undermine these tariffs. . . . [Full article]

17. ST&R Trade Report: "Section 338 Tariffs on Imports from Canada Slated to Take Effect Aug. 19"

(Source: Sandler, Travis & Rosenberg Trade Report, 16 Aug 2026) [Excerpts]. Contact: [email protected], 1-305-894-1035

     The U.S. is just days away from imposing a 50 percent Section 338 tariff on roughly five percent of U.S. imports from Canada—and USMCA eligibility is no shield.
     Canada is trying to defuse the threat. Its trade team, including chief negotiator Janice Charette and Trade Minister Domenic LeBlanc, was in Washington last week and remains engaged this week.
     The U.S. wants Canada to accept steel and aluminum export quotas, drop retaliatory tariffs on U.S. goods, restore U.S. alcohol to Canadian store shelves, lift provincial procurement limits, and accept Washington's position on Canadian dairy quotas.
     In exchange, the parties are discussing lower—but not eliminated—Section 232 steel and aluminum tariffs. Canada also wants relief on autos and forestry. If an interim deal lands, later talks would likely turn to defense purchases and auto rules of origin. . . . [Full article]

18. WTTL: "Congress Moves to Add Biotech to Outbound-Investment Regime"

(Source: Washington Tariff & Trade Letter, 12 Aug 2026) [Excerpts of subscription publication]

     Bipartisan House and Senate bills would add biotechnology to the U.S. outbound-investment screening regime, extending Treasury Department scrutiny beyond semiconductors, artificial intelligence and quantum technologies into pharmaceutical development, biologics manufacturing, clinical research and related licensing transactions.
     The Biotech Investment National Security Act of 2026, or BINSA Act, would amend the COINS Act to include biotechnology in the definitions of "prohibited technology" and "notifiable technology."
     The measure reflects growing concern that U.S. capital, pharmaceutical licensing deals and joint ventures are helping Chinese firms acquire drug-development capabilities, clinical-trial infrastructure and biologics manufacturing know-how. . . .
     The bill text frames biotechnology as a strategic sector comparable to technologies already covered by outbound-investment controls. It cites China's "deliberate, state-directed strategy to dominate global biotechnology," including pharmaceutical development, biologics manufacturing and clinical research.
     It also states that U.S. capital flowing to Chinese biotechnology companies through licensing agreements, joint ventures and equity investments is accelerating China's acquisition of pharmaceutical intellectual property and clinical development capabilities.
     The proposed definition would cover research, development, manufacturing or commercialization of pharmaceutical products, biological products and therapeutic compounds, including drug-discovery platforms, clinical research and development capabilities, biologics manufacturing, and related intellectual property and know-how. . . . [Full article]

19. Baker/McKenzie: "US Government Expands Cuba Sanctions Program with New Designations and General Licenses"

(Source: Global Sanctions and Export Controls Blog, 17 Aug 2026) [Excerpts]

* Principal Author: Alison J. Stafford Powell; Baker Mckenzie

     On July 23, 2026, the US Department of State designated multiple entities and individuals in Cuba, and the US Department of the Treasury's Office of Foreign Assets Control ("OFAC") issued three new Cuba-related general licenses.
     The actions are intended to further restrict revenue streams supporting the Cuban government, including activities tied to the energy sector, sanctions evasion networks, financial services, and Cuba's overseas medical missions program.
     The designations and general licenses were issued under Executive Order 14404 of May 1, 2026, which authorizes sanctions targeting persons linked to repression in Cuba and other activities deemed to threaten US national security and foreign policy.
     The New SDN Designations: . . . [Full article]

20. Breaking Defense: "How the Commerce Department Plans to Win More Foreign Defense Sales"

(Source: Breaking Defense, 14 Aug 2026) [Excerpts]

     In an exclusive preview of America's new arms sale policies, a key Commerce official says the department is ready to "help US companies" in foreign markets. . . .
     Working with interagency partners and under the leadership of Commerce Secretary Howard Lutnick and Under Secretary of Commerce for International Trade William Kimmitt, the Advocacy Center has developed four concrete priorities:

[Full article]

21. Troutman: "Cleared for Tariffs: What the New Section 232 Drone Tariffs Mean for the UAS Industry"

(Source: Troutman Pepper Locke, 17 Aug 2026) [Excerpts]

* Author: Ryan Last, Troutman Pepper Locke LLP

Key Points

[Full article]

22. Volkov: "The SEC's New Accounting Fraud Unit: What It Signals About Where Enforcement Is Headed"

(Source: Volkov Law, 16 Aug 2026) [Excerpts]

* Principal Author: Michael Volkov, Volkov Law Group LLC

     The Securities and Exchange Commission has announced a new specialized unit inside its Enforcement Division dedicated specifically to accounting and financial reporting fraud, and the announcement is worth reading closely, not just for what the unit will do, but for what its creation says about how the agency is currently defining its own enforcement priorities.
     A New Unit with a Specific Mandate. The unit will be led by Timothy Zimmerman, who spent twelve years at Gibson Dunn before joining the SEC this past May, and it will be staffed with attorneys and accountants carrying specialized expertise in financial reporting, accounting standards, and auditing practice within securities regulation. SEC Enforcement Director David Woodcock described the unit as an expansion of the division's existing efforts against misconduct in the accounting and auditing profession, framing it as central to the agency's forward enforcement strategy.
     The decision to staff this group with accountants alongside attorneys is a meaningful structural signal. Financial reporting fraud cases are notoriously difficult to build, because the misconduct is frequently buried inside technical accounting judgments, revenue recognition timing, reserve estimates, impairment analysis, that require real subject matter expertise to distinguish from legitimate, if aggressive, accounting practice.
     A unit built specifically around that expertise suggests the SEC intends to pursue these cases with a level of technical sophistication that a generalist enforcement team would struggle to match. . . . [Full article]

23. Partnering for Compliance™ Presents: "Firearms: Exporting & Importing" 16 Sep 2026

(Source: A.E. NicPhaidin)

24. List of Export/Import Job Openings

(Source: Editor)

26. Bartlett's Unfamiliar Quotations

(Source: Brainy Quotes)

27. Today in History (Source: History Channel)

1807: Robert Fulton's steamboat Clermont began its first commercial voyage on the Hudson River, helping launch the era of practical steam-powered transportation.

1969: The final day of the Woodstock Music & Art Fair featured legendary performances and became a defining moment of 1960s counterculture.

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

(Source: Editor)

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29. 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.