26-0818: 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 August 2026

(Source: OTR Webinars)

5. Commerce/BIS (Nothing new.)

(Source: Commerce/BIS)

6. State/DDTC to Undergo Maintenance Wednesday 19 Aug

(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.

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

(Source: The White House)

8. Breaking Defense: "Raytheon Gets Massive $23B Contract to Boost Tomahawk Production"

(Source: Breaking Defense News, 18 Aug 2026) [Excerpts]

     The Navy has awarded RTX subsidiary Raytheon a $22.9 billion contract to ramp up production of the Tomahawk cruise missile to 1,000 rounds a year. The contract follows a February framework agreement with the Pentagon that laid the groundwork for the finalized deal. . . .
     Over the past year, Pentagon leaders have leveraged multiyear contracts for critical munitions as an incentive to get defense primes to make larger investments in their production facilities and supply chain. . . .
     RTX has "invested heavily" to boost production of the Tomahawk and other critical munitions, and has delivered three times more Tomahawks in the first half of 2026 compared to the same period last year, it said in a news release.
     Beyond the Tomahawk, Raytheon has also inked framework agreements to increase production of the AMRAAM air-to-air missile, Standard Missile-6 and Standard Missile-3 IIA, while accelerating production of the Standard Missile-3 IB. . . . [Full article]

9. ECD: "Entity-Listed Company Agrees to File Revised Complaint After BIS Letter"

(Source: Export Compliance Daily, 17 Aug 2026) [Excerpts of paywall publication]

     A Hong Kong-based company agreed to revise and refocus its complaint challenging its placement on the Entity List after speaking with the Bureau of Industry and Security, whose response to the original complaint was due Aug. 14, according to court records filed last week.
     [Editor's Notes: The case is Frontier Services Group Ltd. v. U.S. Dep't of Com., No. 1:26-cv-00732 (D.D.C. filed Mar. 2, 2026). FSG sued BIS in March 2026, arguing that BIS never actually found the company had violated export controls and that the agency failed to give a substantive response to its requests for removal from the Entity List. The parties disclosed that BIS sent FSG a letter on July 8, 2026, regarding FSG's petition for removal from the Entity List. Following discussions, FSG agreed to revise its lawsuit to focus on that newer agency action.]

10. Expeditors News: "CBSA Announces Dumping and Subsidizing Duties on Unarmored Building Cables"

(Source: Expeditors News, 17 Aug 2026) [Excerpts]

     In an update published on July 29, 2026, the Canada Border Services Agency (CBSA) announced its preliminary determination regarding the dumping and subsidizing of unarmoured building cables (UBC) originating in or exported from the People's Republic of China.
     This investigation was conducted pursuant to subsection 38(1) of the Special Import Measures Act (SIMA). As part of the preliminary findings, the CBSA determined that certain UBC imports from China were dumped and subsidized in the Canadian market. As a result, provisional anti-dumping and countervailing duties became effective on July 29, 2026, for the affected products.
     CBSA's notice and a list of applicable tariff classifications and provisional duty rates can be found HERE.

11. Inside Defense: "Defense Industry Pushes Back on Pentagon's 'Right to Repair' IP Campaign"

(Source: Inside Defense, 18 Aug 2026) [Excerpts]

     As the Defense Department pushes for greater access to contractors' intellectual property in the name of improving weapons maintenance and readiness, industry experts and executives are warning the effort could go far beyond what is needed to repair and sustain military systems.
     The tension between government and industry over IP rights is fueled in part what some industry advocates say are misconceptions about how big a role "right to repair" plays when it comes to readiness of weapons platforms, voicing concern that some companies have been deterred from doing business with DOD out of fear the government may go too far in asking for proprietary information. . . .
     Both versions of the bill would mandate DOD be given government-purpose rights for any technical data or software in a contract or subcontract unless the contractor "establishes, through clear and convincing evidence, entitlement to more restrictive rights," placing the burden of proof on contractors.
     Business groups like the Aerospace Industries Association have opposed the provision on government-purpose rights, saying such a "one-size-fits-all" approach would not be appropriate for every weapon system. Similarly, defense contractors such as Anduril and AeroVironment say they aren't against giving the government access to technical data but want to make sure their proprietary information is protected.
     There is broad consensus among industry that taking this type of one-size-fits all approach to IP would be harmful to the defense industrial base, because it would mean the Pentagon could share that information with anyone, including competing contractors, Margaret Boatner, AIA's vice president for national security policy, told Inside Defense in an interview. . . . [Full article]

12. Space News: "L3Harris Names Space Sector Leader Sam Mehta CEO after Kubasik Steps Down"

(Source: Space News, 18 Aug 2026) [Excerpts of subscription publication]

     L3Harris Technologies named Sam Mehta its new chief executive, elevating the head of its space business in an abrupt leadership change.
     Christopher Kubasik stepped down as chairman, chief executive and a member of the board effective immediately, the company said Aug. 17. L3Harris said its board acted after an investigation found conduct by Kubasik that was inconsistent with the company's code of conduct. . . . [Full article]

13. ST&R Trade Report: "CTPAT Validation Will Benefit Brokers in New Enforcement Environment, CBP Says"

(Source: Sandler, Travis & Rosenberg Trade Report, 18 Aug 2026) [Excerpts]. Contact: [email protected], 1-305-894-1035

     U.S. Customs and Border Protection is encouraging customs brokers to become validated in the Customs Trade Partnership Against Terrorism in light of an executive order that directs a broad tightening of U.S. customs enforcement efforts.
     Under this EO, foreign importers of record will be required to be validated in CTPAT themselves, or use a CTPAT-validated customs broker, to file formal entries. CBP states that the EO will thus fundamentally change the responsibilities of CVCBs by mandating a higher standard of due diligence when they represent foreign IORs.
     To comply with these heightened expectations, CBP states, in the near future CVCBs will need to perform comprehensive vetting of their foreign clients before they conduct any customs business.
     CBP foresees that during vetting CVCBs will verify critical information such as the IOR's legal identity, ownership structure, business affiliations, U.S. assets, and history of compliance and import activity. . . . [Full article]

14. WTTL: "De Minimis Overhaul Leading Customs Issue"

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

     The leading customs proposal is DHS's planned rule on low-value shipments, RIN 1685-AA38, scheduled for September 2026.
     The proposal would implement the indefinite suspension of the Section 321 de minimis exemption for goods valued at $800 or less. It would also:

     DHS classifies the proposal as economically significant and acknowledges effects on small businesses and international trade. If issued substantially as described, the rule would require e-commerce sellers, express carriers, customs brokers and postal operators to redesign entry, data, duty-calculation and bond processes. Unified Agenda entry for Low-Value Shipments. . . .

15. 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]

16. Reeves & Dola: "Has the NFA Gone Away?"

(Source: Reeves & Dola News) [Excerpts]

* Principal Author: Johanna Reeves, Reeves & Dola LLP

     On August 5, 2026, a Texas federal district court ruled certain provisions in the National Firearms Act (NFA) to be unconstitutional as applied to the named plaintiffs and, where applicable, the plaintiffs' agencies, political subdivisions, members, and customers.
     The case is Silencer Shop Foundation v. ATF, and the court's decision has caused all sorts of internet chatter. The purpose of this alert is to sort through the rumors and focus on the facts of the case and the resulting impact of the court's final judgment, which went into effect on August 13, 2026.
     The NFA has not gone away, but thanks to the One Big Beautiful Bill Act and this landmark decision, we are starting to see cracks in the statute's foundation.
     Scope of the Ruling. CAUTION! The Silencer Foundation case did not result in a nationwide ban on NFA controls.
     Who benefits? The named plaintiffs and, where applicable, their agencies, political subdivisions, members, and customers (current and future). This ruling does not apply to the general public nor to any associational plaintiff's supporters. In addition, the Special (Occupational) Tax (SOT) on licensed importers, manufacturers, and dealers of NFA firearms under 26 U.S.C. § 5801(a) remains in place.
     There are two groups of plaintiffs. This is because the district court consolidated what originally started out as two separate cases: Jensen v. ATF (No. 6:26-CV-227) and Silencer Shop Foundation v. ATF (No. 6:25-CV-056). The coalition of individuals, businesses, associations, and states that make up the two groups of plaintiffs are listed below: . . .

17. Steptoe: "Weekly Sanctions Update"

(Source: Steptoe sanctions blog, 17 Aug 2026) [Excerpts]

* Principal Author: Evan T. Abrams, Steptoe LLP

[Full article]

18. ST&R Trade Report: "Export Controls for Drones Eased Again"

(Source: Sandler, Travis & Rosenberg Trade Report, 18 Aug 2026) [Excerpts]. Contact: [email protected], 1-305-894-1035

     The Bureau of Industry and Security has issued a final rule that, effective Aug. 13, eases export controls on certain unmanned aerial vehicles (drones) and related parts, components, accessories, attachments, technology, and software under the Export Administration Regulations.
     BIS states that this rule better aligns the EAR with the current UAV technology landscape by shifting focus away from widely-available commercial capabilities and tailoring controls to UAVs with capabilities that adversaries could use to pose a national security threat to the U.S. Specific changes include the following.

19. Troutman: "The $800 Free Pass Is Gone: CIT Confirms President Can Eliminate De Minimis Tariff Exemption"

(Source: Troutman Pepper Locke, 18 Aug 2026) [Excerpts]

* Principal Author: Ryan Last, Troutman Pepper Locke LLP

Key Points:

[Full article]

20. Volkov: "Could AI Use Waive Privilege in Your Internal Investigation?"

(Source: Volkov Law, 18 Aug 2026) [Excerpts]

* Principal Author: Michael Volkov, Volkov Law Group LLC

     When using AI in your internal investigation, make sure you protect the attorney-client privilege. A lot of investigators are feeding interview notes, documents, even witness statements into AI tools to help organize an investigation.
     That's convenient, for sure, but ask yourself: where does that data go? Is that platform covered by your privilege log? Did outside counsel direct that use, or did an investigator just start using a public AI tool because it was faster? You wouldn't just hand out your interview notes to third parties who are not under privilege. That's what AI can do, unbeknownst to you.
     If the answer is unclear, you may have just created a discoverable record that sits outside the protection of attorney-client privilege or work product doctrine. Opposing counsel or a regulator can ask what tools you used, what prompts you entered, and what the AI generated. If that trail wasn't properly walled off under privileged attorney-client use, you may have to produce it.
     And there's a second failure mode: shadow AI. Investigators using unapproved tools on their own, without telling anyone, to save time. You won't find out until it surfaces in a document request.
     My advice: before your next investigation starts, define exactly which AI tools are approved, who directs their use, and how that use is documented and protected. Get ahead of it, because opposing counsel is already asking the question. [Listen to podcast on this issue HERE.]

21. Global Training Center Presents: "Due Diligence Course" 22 September

(Source: Global Training Center)

22. List of Export/Import Job Openings

(Source: Editor)

24. Bartlett's Unfamiliar Quotations

(Source: Brainy Quotes)

25. Today in History (Source: History Channel)

1920: 19th Amendment ratified. Tennessee became the 36th state to ratify the 19th Amendment, giving women the constitutional right to vote throughout the United States. The amendment passed by a single decisive vote.

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

(Source: Editor)

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27. 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.