BIS Broadens Russia Sanctions

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Posted Wednesday, January 24, 2024 9:44 am

The Commerce Department’s Bureau of Industry and Security (BIS) has expanded the scope of the EAR’s Russian and Belarusian Industry Sector Sanctions by adding 95 6-digit Harmonized Tariff Schedule (HTS) codes to the list of items requiring a license for export, reexport, or transfer (in-country) to Russia or Belarus.

The expanded list of items includes certain chemicals, lubricants, and metals, and it covers the entirety of Chapter 88 of the HTS (aircraft, spacecraft, and parts thereof), thereby further restricting Russia’s access to inputs for its defense industrial base and better aligning U.S. controls with those implemented by U.S. partners and allies.

The rule also expands controls on certain EAR99 antennas, antenna reflectors, and parts thereof to further restrict these items from going to Iran and Russia, including when produced abroad with U.S. technology or software.

Today’s action also removes the lowest-level military and spacecraft-related items (i.e., .y items) from being eligible for de minimis treatment when incorporated into foreign-made items for export from abroad or reexport to Russia or Belarus.

Finally, the new rule makes several clarifying changes, including by adding an exclusion from BIS license requirements in situations involving transactions that are related to deployments by the Armed Forces of Ukraine to or within the temporarily occupied Crimea region of Ukraine and covered regions of Ukraine.

“Today’s action reflects the U.S. government’s continuing commitment to respond to Russia’s invasion of Ukraine and Belarus’s complicity in the invasion, in concert with our allies and partners in the Global Export Control Coalition,” said Under Secretary of Commerce for Industry and Security Alan F. Estevez. “Russia’s continued aggression against Ukraine undermines global order, peace, and security.”

Amendments to the EAR

The rule strengthens sanctions under the EAR against Russia, Belarus, the occupied Crimea region of Ukraine, and Iran, with key amendments detailed below:

Expansion of Russian and Belarusian Industry Sector Sanctions:
- New items added to supplement no. 4 to part 746.
- Focus on undermining the industrial bases of Russia and Belarus.
- 94 additional HTS-6 Code entries included, affecting industrial materials, manufacturing items, and aircraft-related items.
- Harmonized System chapters 84, 85, 90, and now 88 (aircraft, spacecraft) are controlled.
Expansion of License Requirements for Iran, Russia, and Belarus:
- Additional HTS-6 Code entry (852910) added to supplement no. 7 to part 746.
- Items under this entry now require a license for export or reexport to Iran, Russia, and Belarus.
Prohibition of De Minimis for Certain Items for Belarus and Russia:
- Revision of § 734.4 to exclude de minimis for .y “600 series” and 9x515 items when destined for Belarus and Russia.
- This aims to restrict low-level military and spacecraft items.

B. Corrections and Clarifications to Existing Controls

Exclusion for Ukrainian Armed Forces:
- Exclusion from license requirements for deployments by the Armed Forces of Ukraine in certain regions.
Clarifications on Controlled U.S.-Origin Content:
- New § 746.10(a)(3) excludes certain U.S.-origin content from de minimis calculations.
Precedence in Licensing Requirements:
- Clarifications on which EAR section takes precedence for licensing requirements when items are controlled under multiple provisions.
Exclusion of Fasteners:
- Fasteners are excluded from the scope of supplement nos. 2, 4, 5, and 7, but subject to § 744.21 license requirements.
Harmonization of License Exceptions:
- Common set of license exceptions adopted for §§ 746.5, 746.8, and 746.10.
Exclusion of Medicines:
- Medicines excluded from the scope of supplement no. 6 to part 746.
Conforming Change for Safety of Flight Applications:
- Case-by-case license review policy for safety of flight applications under §§ 746.5 and 746.10.
Clarification on Firearms Import Restriction:
- Temporary import of firearms from Ukraine for repair and servicing clarified.

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