Staffing problems at the Dept. of Homeland Security and the National Cyber Security Div. (NCSD) hamper cybersecurity efforts, said the annual report by staff Democrats on the House Homeland Security Committee. The report gives DHS a “C” for cybersecurity, science and technology, and a “D-” for critical infrastructure protection. Privacy protection got a “B,” with praise for former Chief Privacy Officer (CPO) Nuala Kelly’s outreach, but flak for the job’s lack of autonomy. Much of the 75-page report is based on Govt. Accountability Office (GAO) evaluations and private-sector criticisms previously reported in the press.

Despite improvement in EU-U.S. trade, roadblocks remain to trans-Atlantic business related to telecom and intellectual property (IP) rights, the European Commission (EC) said Wed. in its latest annual report on U.S. barriers to trade and investment. The U.S. has made “significant commitments” on European service provider market access, but the EU “remains concerned” about steep hurdles European and foreign-owned firms still face, the Commission said. The report emerged as the sides agreed to lift longstanding public procurement sanctions, some involving European telecom.

Despite improvement in EU-U.S. trade, roadblocks remain to trans-Atlantic business related to telecom and intellectual property (IP) rights, the European Commission (EC) said Wed. in its latest annual report on U.S. barriers to trade and investment. The U.S. has made “significant commitments” on European service provider market access, but the EU “remains concerned” about steep hurdles European and foreign-owned firms still face, the Commission said. The report emerged as the sides agreed to lift longstanding public procurement sanctions, some involving European telecom.

The Senate Commerce Committee plans to take up the House indecency bill (HR-310) that increases fines for broadcasters sometime in the spring, staff dir. Lisa Sutherland told an NAB legislative conference Tues. The measure could include a provision that Sen. Burns (R-Mont.) proposed as an amendment in the 2004 Defense Dept. Appropriations bill that would take into account the size of broadcasters when levying fines. The House bill, passed last year in the aftermath of the Janet Jackson Super Bowl flap (CD Feb 17 p1), would raise maximum fines on broadcasters to $500,000 from $32,500.

Calling Google’s objections “simply beside the point,” DoJ pressed its case to the U.S. Dist. Court, San Jose, that Google should be forced to hand over a sample of queries entered into search engines and URLs returned in searches, for govt. use to defend an overturned anti-pornography law. The govt. took several potshots at the search giant, saying its arguments were contradictory or lacked evidence. Meanwhile, the Center for Democracy & Technology (CDT) filed a brief on behalf of Google, and Stanford U.’s Center for Internet & Society asked the court to allow 3rd-party briefs on search engines’ classification under the Electronic Communications Privacy Act (ECPA). The next hearing in the case is set March 13.

German Economics Minister Michael Glos voiced surprise this week over EC criticism of Germany’s proposal not to regulate DT’s next-generation network, MarketWatch reported. On Feb. 17, Information Society & Media Comr. Viviane Reding wrote Glos she’s paying special attention to the proposed revision of Germany’s telecom act -- particularly new section 9a, which provides for nonregulation of new markets. The Commission is concerned about a “regulatory moratorium” because it raises serious questions about the relationship of competition, new markets and investment that should be addressed by the EU, not nations, Reding said. The legislative proposal suggests new markets be regulated only if development of sustained competition would be obstructed long run otherwise. That runs counter to the EU’s package of e-communications directives, Reding wrote: The law shouldn’t allow a monopoly to be revived, even for a limited time. She said also said Art. 9a: (1) Fails to make clear that consultation must take place before the German telecom regulator decides a new market exists. (2) Doesn’t clarify that “new market” and the duration of any regulatory moratorium must be defined by the regulator in close cooperation with the Commission. (3) Uses “sustained competition-oriented market,” an expression unknown in the EU regulatory framework that should be replaced with “effective competition.” Finally, Reding wrote, the Commission has already launched 2 EU Treaty violation procedures against Germany for infringing EU law by restricting the telecom regulator’s discretion. It’s the regulator -- not the legislature -- that must determine if and how regulation should be imposed, she said, and Art. 9a must be drafted to ensure that principle applies to new markets. Germany lags significantly behind other EU countries in broadband partly because it lacks essential regulatory measures such as bitstream access, she added. Glos said Tues. his office is surprised because the revised telecom bill was based on preliminary working-level talks between his department and the Commission, MarketWatch said. But the official said he would look into Reding’s concerns. The Head of the Federal Network Agency, Matthias Kurth, said “more transparency and sincerity” is needed in the debate to counter the impression that his agency favors “one single company and risk[s] the balance between competition and innovation.” The public consultation is aimed at defining “new market” and embracing the discussion started by the EC. The consultation should help clarify the issue for fixed net and broadband providers in Germany and across the EU, said Kurth. The Federal Network Agency will accept statements until April 19 from interested parties on 9 questions, on the agency’s website, about the definition and treatment of “new markets.” -- www.bundesnetzagentur.de/media/archive/5120.pdf

In 2005, the Court of International Trade (CIT) ruled in U.S. v. Pan Pacific Textile Group et al. (Pan Pacific), that the principal is responsible for unpaid duties under 19 CFR 1592(d) stemming from fraudulent customs violations by his agent, who was the "importer of record" for certain tracksuits imported from China.

German Economics Minister Michael Glos voiced surprise this week over EC criticism of Germany’s proposal not to regulate DT’s next-generation network, MarketWatch reported. On Feb. 17, Information Society & Media Comr. Viviane Reding wrote Glos she’s paying special attention to the proposed revision of Germany’s telecom act -- particularly new section 9a, which provides for nonregulation of new markets. The Commission is concerned about a “regulatory moratorium” because it raises serious questions about the relationship of competition, new markets and investment that should be addressed by the EU, not nations, Reding said. The legislative proposal suggests new markets be regulated only if development of sustained competition would be obstructed long run otherwise. That runs counter to the EU’s package of e-communications directives, Reding wrote: The law shouldn’t allow a monopoly to be revived, even for a limited time. She said also said Art. 9a: (1) Fails to make clear that consultation must take place before the German telecom regulator decides a new market exists. (2) Doesn’t clarify that “new market” and the duration of any regulatory moratorium must be defined by the regulator in close cooperation with the Commission. (3) Uses “sustained competition-oriented market,” an expression unknown in the EU regulatory framework that should be replaced with “effective competition.” Finally, Reding wrote, the Commission has already launched 2 EU Treaty violation procedures against Germany for infringing EU law by restricting the telecom regulator’s discretion. It’s the regulator -- not the legislature -- that must determine if and how regulation should be imposed, she said, and Art. 9a must be drafted to ensure that principle applies to new markets. Germany lags significantly behind other EU countries in broadband partly because it lacks essential regulatory measures such as bitstream access, she added. Glos said Tues. his office is surprised because the revised telecom bill was based on preliminary working-level talks between his department and the Commission, MarketWatch said. But the official said he would look into Reding’s concerns. The Head of the Federal Network Agency, Matthias Kurth, said “more transparency and sincerity” is needed in the debate to counter the impression that his agency favors “one single company and risk[s] the balance between competition and innovation.” The public consultation is aimed at defining “new market” and embracing the discussion started by the EC. The consultation should help clarify the issue for fixed net and broadband providers in Germany and across the EU, said Kurth. The Federal Network Agency will accept statements until April 19 from interested parties on 9 questions, on the agency’s website, about the definition and treatment of “new markets.” -- www.bundesnetzagentur.de/media/archive/5120.pdf.

U.S. Customs and Border Protection (CBP) has recently posted to the Pilot Bond Centralization Program section of its Web site a February 13, 2006 version of its guidance document entitled "Latest News and Developments." According to CBP, this document provides information on the Pilot Bond Centralization Program and current issues, policies, and procedures for processing bond applications. (See ITT's Online Archives or 12/08/05 news, 05120805, for BP's summary of CBP's November 29, 2005 version of its "Latest News and Developments" guidance document.)

In the February 8, 2006 issue of the U.S. Customs and Border ProtectionBulletin (CBP Bulletin) (Vol. 40, No. 7), CBP issued notices: (a) detailing the dates and draft agenda for the 37^th Session of the Harmonized System Committee (HSC), and (b) proposing to revoke a classification ruling on anodes and cathodes used in electrolysis. CBP states that it is also proposing to revoke any treatment it has previously accorded to substantially identical transactions.