Industrial Policy & Trade Monitor· 2663 actions· ✨ 89 recent

Final rule (RIN 0694-AJ93, FR Doc 2024-25445, 89 FR 87279) under which BIS expands the Russian and Belarusian Industry Sector Sanctions of the Export Administration Regulations to cover an enumerated list of chemical precursors used in the synthesis of chloropicrin and riot-control agents (CS, CN, CR), and adds associated technical clarifications. The action is the export- control complement to the US Department of State's annual report to Congress on Compliance with the Chemical Weapons Convention, which determined that Russia had used riot-control agents as a method of warfare against Ukrainian forces in violation of the CWC. Effective on publication, 1 November 2024.

MOTIE brought the 35th amendment of the Public Notice on Trade of Strategic Items into force on 9 September 2024, adding 243 items (notice Annex 2-2 numbers 1160-1402) to the situational-licence list for Russia and Belarus, taking that list to 1,402 items. The added items are described as having a high likelihood of military diversion (metal-cutting machinery, machine-tool parts, optical-equipment parts, sensors). Exports of the added items are prohibited in principle from 9 September, with licence applications admitted only for contracts concluded by 8 September and case-by-case categories such as exports to Korean companies' local subsidiaries. The same release tightens administrative penalties for deliberate export-control violations.

BIS final rule (FR Doc 2024-19132, 89 FR 68539, published 27 August 2024) expanding the Russia/Belarus-Military End User (MEU) Foreign-Direct Product (FDP) rule under the Export Administration Regulations so that it also applies to transactions involving Entity List entries posing a significant diversion risk to Russia's and Belarus's defense industry or intelligence services — the rule is renamed accordingly. The rule also imposes new export, reexport, and in-country transfer controls on software for the operation of computer numerical control (CNC) machine tools destined for Russia or Belarus, and makes corrections eliminating obsolete cross- references introduced by the BIS 25 January 2024 and 18 June 2024 Russia/Belarus final rules. Effective 27 August 2024, except amendatory instruction 11 effective 16 September 2024.

BIS final rule (FR Doc 2024-13148, 89 FR 51644, RIN 0694-AJ87) expanding the Export Administration Regulations' Russia and Belarus sanctions architecture. Effective 12 June 2024 (most provisions) and 16 September 2024 (the EAR99 enterprise-software paragraph at §746.8(a)(8)), the rule introduces a new licence requirement for thirteen named categories of EAR99 enterprise software (ERP, CRM, BI, SCM, EDW, CMMS, project management, PLM, BIM, CAD, CAM, ETO) destined for Russia or Belarus; permits address-only Entity List designations to capture high-diversion addresses; adds eight Hong Kong addresses to the Entity List; and refines the Russia/Belarus Industry Sector Sanctions and Foreign Direct Product (FDP) rule. Released the day before the G7 Italy summit alongside coordinated OFAC, State, and Treasury actions that together designated 300+ persons and entities.

The Bureau of Industry and Security (BIS) issued a final rule amending the Russia and Belarus sanctions under the Export Administration Regulations (EAR) to add License Exception Medical Devices (MED) at 15 CFR 740.23. The new exception authorises, without an individual licence, exports, reexports, and in-country transfers of EAR99 medical devices and EAR99 parts/components/accessories for exclusive use with such devices to Russia, Belarus, the temporarily occupied Crimea region of Ukraine, and the other covered regions of Ukraine. The exception carries verification conditions and excludes Entity List / military end-user recipients, "production" facilities, and any case where the exporter has knowledge the items will be diverted to weapons production.

The Bureau of Industry and Security (BIS) issued a final rule (FR Doc 2024-08622; Docket 240417-0112; 89 FR 30119) amending the Export Administration Regulations (EAR) to expand the product scope of two Foreign Direct Product (FDP) rules — the Iran FDP rule and the Russia/Belarus/Temporarily occupied Crimea region of Ukraine FDP rule in 15 CFR 734.9(f) — to cover the entirety of the Common High Priority List (CHPL), an HTS-6 list developed jointly with the EU, Japan and the UK that identifies items used in Russian weapons production. The CHPL scope adds basic commercial-grade microelectronics (integrated circuits, RF transceiver modules), test/manufacturing equipment for electronic components, and CNC machine tools to the perimeter, requiring a BIS licence when these foreign-produced items are exported, reexported or transferred to Iran, Russia, Belarus or occupied Crimea. The rule was issued in response to Iran's 13 April 2024 attack on Israel and Iran's ongoing military support for the Russian war in Ukraine; it became effective 18 April 2024 (Federal Register publication 22 April 2024) with a transit grace period for in-flight shipments until 20 May 2024.

MOTIE brought the 33rd amendment of the Public Notice on Trade of Strategic Items into force on 24 February 2024 (announced 20 February 2024), adding 682 items to the Russia/Belarus situational-licence (상황허가) list, taking that list to 1,159 items. The added items span construction machinery, secondary batteries, machine tools and aircraft components judged to have high military-diversion potential. Situational- licence items are prohibited from export in principle from the effective date, with narrow exceptions such as pre-existing contracts and case-by- case review categories.

BIS final rule (FR Doc 2024-01408, 89 FR 4804, effective 23 January 2024) strengthens the EAR sanctions architecture against Russia and Belarus by adding 94 HTS-6 entries to the Russian and Belarusian Industry Sector Sanctions (§746.5/§746.8) — covering hand tools, parachutes, aircraft training simulators, and airplane/helicopter components — and expands the de minimis threshold for foreign-made goods incorporating US-origin 600-series and 9×515 items destined for Russia or Belarus. A parallel provision targets Iran's supply of unmanned aerial vehicles (UAVs) to Russia by adding HTS code 852910 (antennas and antenna reflectors) to the §746.7 Iran export-control list. The rule also refines Crimea licensing to permit exports supporting Ukrainian Armed Forces deployments in occupied territories.