In today’s publication of the Federal Register (January 25, 2024) BIS published a new final rule (effective January 23, 2024) which tightens and expands the scope of sanctions on Russia and Belarus and makes some changes to licensing requirements for exports and re-exports to Crimea and the occupied territories of Ukraine. The rule also revises recent BIS action aimed at curbing Iran’s supply of Unmanned Aerial Vehicles (UAV’s) to Russia. As noted in the Federal Register, the main elements of this new ruling include:

  • Expansion of Russian and Belarusian Industry Sector Sanctions that apply to items listed in supplement no. 4 to part 746 to add additional items to align with controls imposed by U.S. partners and allies and to make other changes to render the EAR’s controls stronger, more effective, and easier to understand. These additional items subject to licensing requirements include (but not limited to) HTS line items in chapters 27 and 28 (chemicals and metals) as well as chapter 88 (aerospace) in its entirety.
  • Expansion of items that require a license under § 746.7 when destined to Iran and under § 746.8 when destined to Russia or Belarus under supplement no. 7 to part 746 to add an additional item to align with controls imposed by U.S. partners and allies and to make other changes to render the EAR’s controls stronger, more effective, and easier to understand; and
  • Eliminating the lowest-level military and spacecraft-related items (i.e. [(dot) 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. (previously the zero de minimis for foreign produced items using EAR controlled (dot y) items only applied to Group E:1, E:2 countries + China.)

For a complete detailed analysis of this new ruling and its applicability to your company please contact our office.

Image by Michael Siebert from Pixabay

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