The Daily Bugle Monthly Highlights: March

Every month we post the highlights of FCC’s Export/Import Daily Update (“The Daily Bugle”). The Daily Bugle is sent out every business day to approximately 10,000 readers, who keep up to date with changes in defense and high-tech trade laws and regulations. It is a free daily newsletter from Full Circle Compliance, edited by James E. Bartlett III and Elina Tsapouri.

We check the following sources daily: Federal Register, Congressional Record, Commerce/AES, Commerce/BIS, DHS/CBP, DOE/NRC, DOJ/ATF, DoD/DSS, DoD/DTSA, FAR/DFARS, State/DDTC, Treasury/OFAC, White House, and similar websites of European Union, Australia, Canada, U.K., and other countries and international organizations.  Due to space limitations, we do not post Arms Sales notifications, Denied Party listings, or Customs AD/CVD items. To subscribe, click here.

 

Last month’s highlights of The Daily Bugle included in this edition are:

  1. Canada Stops Issuance of New Permits for Export and Brokering of Controlled Goods and Technology to Russia; Tuesday, 1 Mar 2022; Item #6
  2. UK ECJU: “Notice to Exporters 2022/03: Licence Suspensions and OGELs Revised”; Wednesday, 2 Mar 2022; Item #6
  3. Commerce/BIS Amends EAR in re Russia’s Invasion of Ukraine; Thursday, 3 Mar 2022; Item #1
  4. Commerce/BIS Amends EAR to Impose Sanctions Against Belarus; Tuesday, 8 Mar 2022; Item #1
  5. Commerce/BIS Amends EAR to Add Highly Restrictive License Requirements and Policies for Russia and Belarus Transactions; Thursday, 10 Mar 2022; Item #1
  6. Commerce/BIS Publishes Resources on Export Controls Implemented in Response to Russia’s Invasion of Ukraine; Monday, 14 Mar 2022; Item #3
  7. EU Commission Publishes Practical Guidelines on Export Restrictions to Russia and Belarus; Tuesday, 22 Mar 2022; Item #6
  8. State/DDTC Amends ITAR to Consolidate and Restructure Purposes and Definitions; Wednesday, 23 Mar 2022; Item #1
  9. Commerce/BIS: “Reporting for Calendar Year 2021 on Offsets Agreements Related to Sales of Defense Articles or Defense Services to Foreign Countries or Foreign Firms”; Friday, 28 Mar 2022; Item #1
  10. State Authorizes $800 Million in Military Assistance to Ukraine; Thursday, 31 Mar 2022; Item #4

 

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Canada Stops Issuance of New Permits for Export and Brokering of Controlled Goods and Technology to Russia

(Source: Government of Canada, 24 Feb 2022)

 

Canada remains deeply committed to supporting Ukraine’s sovereignty and territorial integrity. Canada remains concerned by the Government of Russia’s ongoing aggression, destabilizing activities and escalation.

Accordingly, effective immediately, Canada will stop the issuance of new permits for the export and brokering of controlled goods and technology to Russia.

Exporters with valid permits for the export or brokering of items to Russia prior to the date of this notice will have their permits immediately cancelled.

Only permits and applications related to specific end-uses such as medical supply and humanitarian needs may be considered for exception, on a case-by-case basis.

Global Affairs Canada will continue to monitor the evolving situation and may reassess the above decision in light of changes on the ground.

 

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UK ECJU: “Notice to Exporters 2022/03: Licence Suspensions and OGELs Revised”

(Source: UK ECJU)

 

Extant and new dual-use licences to Russia have been suspended. Nine open general export control licences (OGELs) updated to remove Russia as a permitted destination. 

Following the above statements, ECJU has removed Russia as a permitted destination from the following open general export licences:

 

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Commerce/BIS Amends EAR in re Russia’s Invasion of Ukraine

(Source: 87 FR 12226, 3 Mar 2022) PDF (26 pages); Permalink 

 

* AGENCY: Bureau of Industry and Security, Department of Commerce.

* ACTION: Final rule.

* SUMMARY: In response to the Russian Federation’s (Russia’s) further invasion of Ukraine, with this final rule, the Department of Commerce is adding new Russia license requirements and licensing policies to the Export Administration Regulations (EAR) to protect U.S. national security and foreign policy interests. These new Russia measures: Impose new Commerce Control List (CCL)-based license requirements for Russia; add two new foreign “direct product” rules (FDP rules) specific to Russia and Russian `military end users;’ specify a license review policy of denial applicable to all of the license requirements being added in this rule, with certain limited exceptions; significantly restrict the use of EAR license exceptions; expand the existing Russia `military end use’ and `military end user’ control scope to all items “subject to the EAR” other than food and medicine designated EAR99, or ECCN 5A992.c and 5D992.c unless for Russian “government end users” and Russian state-owned enterprises (SoEs); transfer forty-five Russian entities from the Military End-User (MEU) List to the Entity List with an expanded license requirement of all items subject to the EAR (including foreign-produced items subject to the Russia-MEU FDP rules); and add two new Russia entities and revise two Russia entities to the Entity List. Lastly, this rule imposes comprehensive export, reexport and transfer (in-country) restrictions for the so-called Donetsk People’s Republic (DNR) and Luhansk People’s Republics (LNR) regions of Ukraine (“Covered Regions of Ukraine”) and makes conforming revisions to export, reexport transfer (in-country) restrictions for Crimea Region of Ukraine provisions.

* DATES: This rule is effective February 24, 2022.

* FOR FURTHER INFORMATION CONTACT: 

 – For questions on the Entity List and MEU List, contact the Chair, End-User Review Committee, Office of the Assistant Secretary, Export Administration, Bureau of Industry and Security, Department of Commerce, Phone: (202) 482-5991;  ERC@bis.doc.gov. 

 – For other questions on this final rule, contact Eileen Albanese, Director, Office of National Security and Technology Transfer Controls, Bureau of Industry and Security, Department of Commerce, (202) 482-0092, rpd2@bis.doc.gov. For emails, include “Russia” in the subject line. 

 

SUPPLEMENTARY INFORMATION:

  1. Background

In response to the Russian Federation’s (Russia’s) further invasion of Ukraine, the Bureau of Industry and Security (BIS) imposes extensive sanctions on Russia by amending the Export Administration Regulations (15 CFR parts 730-774) (EAR). Russia’s invasion of Ukraine flagrantly violates international law, is contrary to U.S. national security and foreign policy interests, and undermines global order, peace, and security, and therefore necessitates these stringent and expansive sanctions. The Commerce Department’s sanctions are one aspect of the broad U.S. Government response to Russia’s unprovoked aggression and are being imposed in coordination with allies and partners.

In response to Russia’s 2014 invasion of Ukraine and occupation of the Crimean region, the U.S. Government, in coordination with its partners and allies, imposed restrictions on Russia, including asset-blocking measures, licensing requirements applicable to exports, reexports, and transfers (in-country) of items subject to the EAR destined for certain Russian entities, and special controls on items subject to the EAR intended for use in specified Russian industry sectors. Leading up to Russia’s further invasion of Ukraine, the U.S. Government announced that should Russia encroach further on Ukraine’s territory, it would impose additional, comprehensive sanctions with significant consequences.

The export control measures implemented in this final rule protect U.S. national security and foreign policy interests by restricting Russia’s access to items that it needs to project power and fulfill its strategic ambitions. These items include sophisticated technologies designed and produced in the United States, as well as certain foreign-produced items that contain or are based on U.S.-origin technology subject to the EAR or other technology that is subject to the EAR that are essential inputs to Russia’s key technology and other sectors. BIS is primarily targeting the Russian defense, aerospace, and maritime sectors with these new export controls. These export controls include controls on the export from abroad of certain foreign-produced items that are subject to the EAR. Given the global dominance of U.S.-origin software, technology, and equipment (including tooling), these new controls, implemented in parallel with similarly stringent measures by partner and allied countries, will cover a broad scope of items that Russia seeks to advance its strategic ambitions and consequently impair the country’s key industrial sectors.

  1. Overview of New Controls

BIS is implementing a new license requirement for Russia on items subject to the EAR and classified under any Export Control Classification Number (ECCN) in Categories 3 through 9 of the Commerce Control List, Supp. No. 1 to part 774 of the EAR (CCL). 

The new license requirement is added under new § 746.8(a)(1) (Russia sanctions) in part 746 of the EAR (Embargoes and Other Special Controls). License exceptions described in § 746.8(c)(1)-(7) may be used to overcome the license requirement. When a license application is required, applications for such items will be subject to a policy of denial. However, to minimize unintended consequences, a case-by-case review policy applies to applications to export, reexport, or transfer (in-country) items that ensure safety of flight, maritime safety, meet humanitarian needs, enable government space cooperation, and allow transactions for items destined to specified Western subsidiaries and joint ventures, support civil telecommunications infrastructure in certain countries, and government-to-government activities. 

The case-by-case review policy will be used to determine whether a transaction that meets the criteria above would benefit the Russian government or defense sector. Additionally, BIS is establishing two new foreign “direct product” rules (FDP rules) in § 734.9 of the EAR. The first relates to the entire country of Russia, as described in new § 734.9(f) (the “Russia FDP rule”). Foreign-produced items subject to the EAR under the Russia FDP rule will be subject to the license requirement described in new § 746.8(a)(2) but will be eligible for certain license exceptions described in § 746.8(c)(1)-(7). When a license application is required, such applications will be subject to a general policy of denial but will be subject to case-by-case review for certain circumstances described further in § 746.8(b). 

The second new FDP rule targets Russian `military end users,’ as described in new § 734.9(g) (the “Russia-MEU FDP rule”). Foreign-produced items subject to the EAR under the Russia-MEU FDP rule will be subject to the license requirement described in new § 746.8(a)(3). No license exceptions are available to overcome this license requirement, except as specified in the Entity List entry for a Footnote 3 entity on the Entity List in supplement no. 4 to part 744 of the EAR, and such items will be subject to a policy of denial for all license applications, as described in § 746.8(b).

BIS has determined that certain countries are committed to implementing substantially similar export controls as part of their domestic sanctions against Russia. These countries are identified in Supplement No. 3 to part 746 (Russia Exclusions List). They are excluded from the requirements of the Russia and Russia-MEU FDP rules and the de minimis provisions under Supplement No. 2 to part 734 with respect to ECCNs that either specify only Anti-terrorism (AT) in the reason for controls paragraph of the ECCN or are classified under ECCN 9A991. This exclusion may be full or partial, as noted in the Scope column of the Russia Exclusions List and may only apply when the criteria specified in § 746.8(a)(4) or (5) are met. In addition, the Russia Exclusions List includes certain countries that have committed to implementing substantially similar controls under their domestic laws but have not yet implemented them. 

BIS also is expanding the scope of the existing `military end use’ and `military end user’ control under § 744.21 of the EAR for Russia to apply to all items “subject to the EAR” except food and medicine designated EAR99, or ECCN 5A992.c and 5D992.c unless for Russian “government end users” and Russian state-owned enterprises (SoEs). At the same time, this rule removes forty-five Russian entities from the Military End-User (MEU) List in Supplement No. 7 to part 744 and adds them to the Entity List with an expanded license requirement for the export, reexport, and transfer (in-country) of all items “subject to the EAR,” including those items subject to the Russia-MEU FDP rule for `military end users’ in Russia. Finally, BIS adds two new Russian entities to the Entity List under this final rule and revises two existing entries for Russian entities on the Entity List.

 

III. Amendments to the Export Administration Regulations (EAR)

. . . .

 

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Commerce/BIS Amends EAR to Impose Sanctions Against Belarus

(Source: Today’s Federal Register, 87 FR 13048, 8 Mar 2022) [Excerpts]

 

* AGENCY: Commerce Dept; Industry and Security Bureau

* ACTION: Final Rule

* SUMMARY: Imposition of Sanctions Against Belarus Under the Export Administration Regulations, 15 CFR Parts 734, 736, 738, 740, 742, 744, and 746

* SUMMARY: In response to Belarus’s substantial enabling of the Russian Federation’s (Russia)’s further invasion of Ukraine, this rule is adding new license requirements and review policies for Belarus to the Export Administration Regulations (EAR) to render Belarus subject to the same sanctions that were imposed on Russia under the EAR effective February 24, 2022. 

These new sanctions impose new Commerce Control List (CCL)-based license requirements for Belarus; revise the two foreign “direct product” rules (FDP rules) that are specific to Russia and Russian ‘military end users’ to make them also applicable to Belarus and Belarusian ‘military end users;’ specify a license review policy of denial applicable to all of the license requirements on Belarus that are being added in this rule, with certain limited exceptions; significantly restrict the use of EAR license exceptions; expand the existing ‘military end use’ and ‘military end user’ control scope to include Belarus for all items “subject to the EAR” other than food and medicine designated EAR99; and add two new Belarusian entities to the Entity List as ‘military end users.’ 

This rule also imposes a license requirement for nuclear nonproliferation items for exports and reexports to Belarus and removes Belarus from Country Group A:4 under the EAR. In addition, for Belarus and Russia, this rule amends the availability of License Exceptions AVS and ENC and includes clarifying guidance on the availability of CCD

* DATES: This rule is effective on 4 March 2022.

 

SUPPLEMENTARY INFORMATION: 

  1. Background 

In response to Russia’s February 2022 invasion of Ukraine and Belarus’s substantial enabling of this invasion by supporting the staging of Russian military forces on Belarusian territory and supporting the invasion to proceed from such territory, the Bureau of Industry and Security (BIS) imposes extensive sanctions on Belarus by amending the Export Administration Regulations (15 CFR parts 730 – 774) (EAR). This rule subjects Belarus to the same licensing restrictions under the EAR that were imposed on Russia as part of the final rule, Implementation of Sanctions Against Russia Under the Export Administration Regulations (EAR), effective on February 24, 20221 (“Russia Sanctions rule”). This rule also revises the designation for Belarus in the Country Groups in supplement no. 1 to part 740 to impose a license requirement for Nuclear Nonproliferation (NP) column 1 in the Commerce Country Chart in supplement no. 1 to part 738 of the EAR, as described further below.

Russia’s invasion of Ukraine, substantially enabled by Belarus, flagrantly violates international law, is contrary to U.S. national security and foreign policy interests, and undermines global order, peace, and security, and therefore necessitates these stringent and expansive sanctions. The Commerce Department’s sanctions on both Russia and Belarus are one aspect of the broad U.S. Government response to Russia’s unprovoked aggression, along with Belarus’s substantial enabling of such aggression, and are being imposed in coordination with allies and partners.

After imposing sanctions on Russia on February 24, 2022, in response to Russia’s further invasion of Ukraine, the U.S. Government announced that should Russia encroach further into Ukraine’s territory, it would impose additional, comprehensive sanctions with even graver consequences. The U.S. Government made it clear to the government of Belarus that there would be significant consequences should it enable or otherwise facilitate Russian military actions against Ukraine. Notably, State Department spokesman Ned Price told reporters on January 25, 2022 that “we’ve also made clear to Belarus that if it allows its territory to be used for an attack on Ukraine, it would face a swift and decisive response from the United States and our allies and partners.” 

The export control measures implemented in this final rule protect U.S. national security and foreign policy interests by restricting Belarus’s access to items that it needs to support its military capabilities and preventing such items from being diverted through Belarus to Russia. These items include sophisticated technologies designed and produced in the United States, as well as certain foreign-produced items that contain or are based on U.S.-origin technology and software subject to the EAR or other technology and software that is subject to the EAR that are essential inputs to Belarus’s and Russia’s key technology and other sectors.

BIS is primarily targeting the Belarusian defense, aerospace, and maritime sectors with these new export controls. These export controls include controls on the export from abroad of certain foreign-produced items that are subject to the EAR. Given the global prevalence of U.S.- origin software, technology, and equipment (including tooling) used in advanced equipment and systems, these new controls, implemented in parallel with similarly stringent measures by partner and allied countries, will cover a broad scope of items that Belarus seeks to advance its military capabilities or to provide to the Russian government to enable the latter’s projection of power and fulfillment of its strategic ambitions.

  1. Overview of New Controls 

BIS is implementing a new license requirement for Belarus on items subject to the EAR and classified under any Export Control Classification Number (ECCN) in Categories 3 through 9 of the Commerce Control List, supplement. no. 1 to part 774 of the EAR (CCL). 

The new license requirement is added under new § 746.8(a)(1) (Russia and Belarus sanctions) in part 746 of the EAR (Embargoes and Other Special Controls). License exceptions described in § 746.8(c)(1)-(7) may be used to overcome the license requirement. 

When a license application is required, applications for such items will be subject to a policy of denial. However, to minimize unintended consequences, a case-by-case review policy applies to applications to export, reexport, or transfer (in-country) items that ensure safety of flight, ensure maritime safety, applications for civil nuclear safety, meet humanitarian needs, enable government space cooperation, and allow transactions for items destined to specified Western subsidiaries and joint ventures, support civil telecommunications infrastructure in certain countries, and government to-government activities. 

The case-by-case review policy will be used to determine whether a transaction that meets the criteria above would benefit the Belarusian government or defense sector or present a risk of diversion to Russia. Additionally, BIS is revising two foreign “direct product” rules (FDP rules) in § 734.9 of the EAR that were added to the EAR in the Russia Sanctions rule to add Belarus to the scope of these two FDP rules. 

The first FDP rules now relates to both Russia and Belarus, as described in revised § 734.9(f) (the “Russia/Belarus FDP rule”). Foreign-produced items subject to the EAR under the Russia/Belarus FDP rule will be subject to the license requirement described in new § 746.8(a)(2) but will be eligible for certain license exceptions described in § 746.8(c)(1)-(7). When a license application is required, it will be subject to a general policy of denial but will be subject to case-by-case review for certain circumstances described further in § 746.8(b).

The second FDP rule now targets both Russian and Belarusian ‘military end users,’ as described in revised § 734.9(g) (the “Russia/Belarus-MEU FDP rule”), with the revisions made in this rule. Foreign-produced items subject to the EAR under the Russia/Belarus-MEU FDP rule will be subject to the license requirement described in new § 746.8(a)(3). No license exceptions are available to overcome this license requirement, except as specified in the Entity List entry for a footnote 3 entity on the Entity List in supplement no. 4 to part 744 of the EAR, and such items will be subject to a policy of denial for all license applications, as described in § 746.8(b).

BIS has determined that certain countries are committed to implementing substantially similar export controls as part of their domestic sanctions against Russia and Belarus. These countries are identified in supplement No. 3 to part 746 (Russia and Belarus Exclusions List). They are excluded from the requirements of the Russia/Belarus FDP rule and the Russia/Belarus MEU FDP rule and the de minimis provisions under supplement No. 2 to part 734 with respect to ECCNs that either specify only Anti-terrorism (AT) in the reason for controls paragraph of the ECCN or are classified under ECCN 9A991. This exclusion may be full or partial, as noted in the Scope column of the Russia and Belarus Exclusions List and may only apply when the criteria specified in § 746.8(a)(4) or (5) are met. 

As part of this rule, BIS is also adding Belarus as a country subject to ‘military end use’ and ‘military end user’ controls under § 744.21 of the EAR, thereby rendering Belarus subject to the expanded scope of the Russia Sanctions rule (i.e., a license is required for all items “subject to the EAR” except food and medicine designated EAR99. This rule also adds two Belarusian entities to the Entity List with a license requirement for the export, reexport, and transfer (in-country) of all items “subject to the EAR,” including those items subject to the Russia/Belarus/MEU FDP rule that applies to ‘military end users’ in Belarus.

This rule removes the exclusion that was previously available for eight Russian ‘military end-users” for ECCNs 5A992.c and 5D992.c when not for Russian “government end users” and Russian state-owned enterprises (SoEs) from the license requirements under §§ 746.8(a)(3) and 744.21(b). This rule also makes updates to § 746.8(c)(6), to use alternate criteria to reduce the risk of diversion.

 

III. Amendments to the Export Administration Regulations (EAR) . . . .

 

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Commerce/BIS Amends EAR to Add Highly Restrictive License Requirements and Policies for Russia and Belarus Transactions 

(Source: 87 FR 13627, 10 Mar 2022)

 

* AGENCY: Bureau of Industry and Security, Department of Commerce.

* ACTION: Final rule.

* SUMMARY: In response to the Russian Federation’s (Russia’s) further invasion of Ukraine, and to protect U.S. national security and foreign policy interests, the Department of Commerce has added new and highly restrictive license requirements and policies for certain transactions involving Russia and Belarus under the Export Administration Regulations (EAR). To recognize partner countries that have committed to implementing substantially similar new export controls on Russia and Belarus in their domestic laws, the Department of Commerce has published a list of countries excluded from portions of these new U.S. export controls. These exclusions apply specifically to certain requirements under the EAR related to foreign-produced items. In this rule, the Department of Commerce adds the Republic of Korea (South Korea) to the list of excluded countries.

* DATES:This rule is effective March 4, 2022.

* FOR FURTHER INFORMATION CONTACT: Eileen Albanese, Director, Office of National Security and Technology Transfer Controls, Bureau of Industry and Security, Department of Commerce, Phone: (202) 482-0092, Fax: (202) 482-482-3355, Email: rpd2@bis.doc.gov. For emails, include “Russia” in the subject line. 

* SUPPLEMENTARY INFORMATION:

Background

Effective February 24, 2022, in response to Russia’s further invasion of Ukraine, the Department of Commerce’s Bureau of Industry and Security (BIS) added new Russia license requirements and policies to the Export Administration Regulations (EAR) to protect U.S. national security and foreign policy interests. See 87 FR 12226 (March 3, 2022) (Russia Sanctions rule). These new Russia license requirements included new Commerce Control List (CCL)-based license requirements involving exports, reexports, and transfer (in-country) transactions and two new foreign “direct product” rules (FDP rules) specific to Russia and to Russian `military end users.’ 

A subsequent rule, effective March 2, 2022, extended these license requirements to export, reexport, and transfer (in-country) transactions involving Belarus, as a result of Belarus’s substantial enabling of Russia’s invasion of Ukraine (Belarus Sanctions rule, Imposition of Sanctions Against Belarus Under the Export Administration Regulations (EAR), FR 2022-04819, March 8, 2022.) 

Both of these rules included a savings clause specific to items controlled by the two FDP rules, stating that such items en route aboard a carrier to a port of export, reexport, or transfer (in-country), on or before March 26, 2022, pursuant to actual orders for reexport, or transfer (in-country) to or within a foreign destination, may proceed to such foreign destination under an applicable authorization that was available prior to the new license requirements, or with no license required, if no license requirements had previously applied to such transactions. 

The new Belarus and Russia restrictions set forth in § 746.8 of the EAR refer to a list of countries that have committed to implementing substantially similar export controls on Belarus and Russia under their domestic laws. Per § 746.8(a)(5), countries that have made such a commitment receive full or partial exclusions, as appropriate, from the FDP rules’ license requirements set forth under § 746.8(a)(2) and (3) of the EAR. Similarly, the license requirements in § 746.8(a)(1) are not used to determine controlled U.S.-content under the EAR’s de minimis rules, as set forth in supplement no. 2 to part 734 of the EAR, provided the criteria in § 746.8(a)(5)(i) and (ii) are met. Countries excluded from these requirements are listed in supplement no. 3 to part 746 (Russia and Belarus Exclusions List). As a result of South Korea’s commitment to implement substantially similar export controls on Russia and Belarus under its domestic laws, the Department of Commerce adds South Korea to supplement no. 3 to part 746 in this rule with the designation of “full.” . . .

 

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Commerce/BIS Publishes Resources on Export Controls Implemented in Response to Russia’s Invasion of Ukraine

(Source: Commerce/BIS)

 

In response to the Russian Federation’s (Russia’s) invasion of Ukraine, the Bureau of Industry and Security (BIS) has taken swift and severe action to impose stringent export controls on Russia. These restrictions have also been applied to Belarus in response to its substantial enabling of Russia’s invasion.

The actions taken by BIS build on existing restrictions in place on Russia since its occupation of Crimea in 2014 and for other purposes. Certain of these restrictions remain in effect; others have been expanded in scope as a result of the recent actions. In particular, BIS has imposed controls on a range of items subject to the Export Administration Regulations (EAR) that did not previously require export licenses when destined for Russia. BIS has also imposed similarly stringent controls on items subject to the EAR that are destined for Belarus. Notably, both countries have been made subject to broad in-country transfer controls.

The information provided on this page is updated as events warrant. Readers should review the final rules and other legal documents in their entirety for all relevant requirements.

 

PRESS RELEASES

Note: Where appropriate/relevant press releases include links to Federal Register Notices and other helpful material.

– February 24, 2022: Commerce Imposes Sweeping Export Restrictions on Russia in Response to Further Invasion of Ukraine: https://go.usa.gov/xzZAe

– March 2, 2022: Commerce Imposes Sweeping Export Restrictions on Belarus for Enabling Russia’s Further Invasion of Ukraine: https://go.usa.gov/xzZAz

– March 4, 2022: Commerce Takes Further Actions to Target Russian Strategic Industries and Punish Enablers of Aggression: https://go.usa.gov/xzZAS

– March 7, 2022: Commerce Announces Republic of Korea Exclusion Rule: https://go.usa.gov/xzk2C and Joint Statement of the Department of Commerce and Republic of Korea: https://go.usa.gov/xzk2E

– March 11, 2022: Commerce Restricts the Export of Luxury Goods to Russia and Belarus and to Russian and Belarusian Oligarchs and Malign Actors in Latest Response to Aggression Against Ukraine: https://go.usa.gov/xz5MP

 

FACT SHEETS & PRESENTATIONS

– March 8, 2022: Fact Sheet on Russia/Belarus: https://go.usa.gov/xz9ab

 

COMPLIANCE AND DUE DILIGENCE GUIDANCE AND INFORMATION

The new Russia/Belarus export controls are a real-time response to a fast-moving geopolitical threat to U.S. national security and foreign policy interests.

Taken together, these new controls, implemented through the issuance of amendments to the EAR, place significant restrictions on U.S. exports, re-exports, and in-country transfers, and on products manufactured abroad with U.S. technology or tooling to Russia and that are subject to the EAR.  New controls on Belarus target the diversion of items to Russia through Belarus.

BIS will continue to update existing guidance and materials, publish new materials as warranted, and will engage directly with interested stakeholders in a variety of ways.

The following resources are highlighted as a starting point for U.S. exporters and other interested parties seeking additional information on the rules, related compliance efforts, and other matters. These resources are not exhaustive.

 

ASK QUESTIONS AND CONTACT BIS

BIS is committed to working with U.S. exporters and other stakeholders to answer questions and help ensure compliance with the EAR, including with the new rules related to Russia and Belarus.

The Office of Exporter Services has a variety of resources, seminars, and channels for exporters seeking responses to questions, including:

– BIS’s Seminar Schedule: BIS’s Calendar of Seminars for “Complying with U.S. Export Controls” and other topics is available online here: https://www.bis.doc.gov/index.php/compliance-a-training/current-seminar-schedule

– Email: If contacting the Office of Exporter Services via e-mail, please include a telephone number to facilitate BIS’s response to your request. Specific questions can be emailed to:

     o  ECDOEXS@bis.doc.gov

     o   OEXSsubmissions@bis.doc.gov

– Telephone: If you have any questions about export licensing requirements or submitting a license application, you may contact BIS’s Office of Exporter Services at:

  • (202) 482-4811 – Outreach and Educational Services Division (located in Washington, DC – open Monday-Friday, 8:30am-5:00pm ET)
  • (949) 660-0144 – Western Regional Office (located in Irvine, CA – open Monday-Friday, 8:00am-5:00pm PT)
  • (408) 998-8806 – Northern California branch (located in San Jose, CA – open Monday-Friday, 8:00am-5:00pm PT)

Formal Advisory Opinions: Request an Advisory Opinion HERE. 

 

ENFORCEMENT RESOURCES

Effective implementation of the EAR is a shared responsibility, and BIS’s Export Enforcement stands ready to educate and support U.S. exporters and other stakeholders in ensuring compliance and where necessary employing its law enforcement authorities to address illicit activities.

 

REGULATIONS & LEGAL RESOURCES

– BIS Compilation of Federal Register Notices: https://bis.doc.gov/index.php/regulations/federal-register-notices

– National Archives Electronic Code of Federal Regulations:  https://www.ecfr.gov/current/title-15/subtitle-B/chapter-VII/subchapter-C

– Unofficial Compilation of Legal Authorities for the Export Administration Regulations as compiled by the Office of the Chief Counsel for Industry and Security is HERE.  

 

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EU Commission Publishes Practical Guidelines on Export Restrictions to Russia and Belarus

(Source: European Commission)

 

Today, the Commission published a set of Frequently Asked Questions (FAQ) on export-related restrictions concerning dual-use goods and advance technology items. This guidance supports exporters and national competent authorities in implementing the export restrictions put in place by the EU following Russia’s attack on Ukraine.

The FAQ are a living product. They will be updated to cover the additional trade-related content of subsequent sanction measures.

Background

The Sanctions Regulation adopted on 25 February further expanded the scope of export restrictions on dual use items to Russia to include items for civilian users and uses. In addition, the exports of advanced technology items in sectors such as electronics, computers, telecommunications and information security, sensors and lasers, and marine are also banned. The new provisions foresee very limited exemptions and derogations in certain defined situations further explained in this document.

Similarly, the Sanctions Regulation allows for some possibility of continuing exporting under pre-existing, or “grandfathered” contracts, subject to a case-by-case assessment. On 2 March, the Council adopted similar sanctions targeting Belarus. These include restrictions on exports of dual-use goods and technology, and certain advanced goods and technology which might contribute to Belarus’ military, technological, defence and security development, together with restrictions on the provision of related services, reflecting those imposed on Russia.

For more information

Q&A

Access2Markets

EU Sanctions on Russia and Belarus

 

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State/DDTC Amends ITAR to Consolidate and Restructure Purposes and Definitions

(Source: Today’s Federal Register, 87 FR 16396, 23 Mar 2022) [Excerpts]

 

* AGENCY: Department of State.

* ACTION: Interim final rule.

* SUMMARY: The Department of State is amending the International Traffic in Arms Regulations (ITAR) to better organize the purposes and definitions of the regulations. This rule consolidates and co-locates authorities, general guidance, and definitions.

* DATES: This interim final rule is effective September 6, 2022.

Comment due date: The Department of State will accept comments on this interim final rule until May 9, 2022.

NOTE: Persons requesting further information via email should address to: DDTCCustomerService@state.gov. ATTN: Regulatory Change, Consolidation of Definitions and Restructuring of Part 120. The published email address for persons wishing to submit comments to the rule is: DDTCPublicComments@state.gov with the subject line, International Traffic in Arms Regulations: Definitions

 

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Commerce/BIS: “Reporting for Calendar Year 2021 on Offsets Agreements Related to Sales of Defense Articles or Defense Services to Foreign Countries or Foreign Firms”

(Source: Today’s Federal Register, 87 FR 17269, 28 Mar 2022) [Excerpts]

 

* AGENCY: Bureau of Industry and Security, Department of Commerce.

* ACTION: Notice; annual reporting requirements.

* SUMMARY: This notice is to remind the public that U.S. firms are required to report annually to the Department of Commerce (Commerce) information on contracts for the sale of defense articles or defense services to foreign countries or foreign firms that are subject to offsets agreements exceeding $5,000,000 in value. U.S. firms are also required to report annually to Commerce information on offsets transactions completed in performance of existing offsets commitments for which offsets credit of $250,000 or more has been claimed from the foreign representative. This year, such reports must include relevant information from calendar year 2021 and must be submitted to Commerce no later than June 15, 2022.

* ADDRESSES: Submit reports in both hard copy and electronically. Address the hard copy to “Offsets Program Manager, U.S. Department of Commerce, Office of Strategic Industries and Economic Security, Bureau of Industry and Security (BIS), Room 3876, Washington, DC 20230.” Submit electronic copies to OffsetReport@bis.doc.gov.

 

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State Authorizes $800 Million in Military Assistance to Ukraine

(Source: 87 FR 18852, 31 Mar 2022) [Excerpts]

 

* AGENCY: State Department

* ACTION: Notice from Secretary of State: Pursuant to the authority vested in me by section 506(a)(1) of the Foreign Assistance Act of 1961 (the “Act”) (22 U.S.C. 2318(a)(1)), and Presidential Delegation of Authority dated March 16, 2022, I hereby determine that an unforeseen emergency exists which requires immediate military assistance to Ukraine. I further determine that the emergency requirement cannot be met under the authority of the Arms Export Control Act or any other provision of law. I, therefore, pursuant to authority delegated to me by the President, direct the drawdown of up to $800 million in defense articles and services of the Department of Defense, and military education and training, under the authority of section 506(a)(1) of the Act to provide assistance to Ukraine. The Department of State will coordinate implementation of this drawdown. . . . .

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