Industrial Policy & Trade Monitor· 2665 actions· ✨ 90 recent

The Bureau of Industry and Security (BIS) established a new Iran Foreign Direct Product (FDP) rule and created Supplement No. 7 to Part 746 of the EAR, effective 24 February 2023, to address Iran's supply of UAVs to Russia for use against Ukraine. The rule adds twelve HTS-6 codes covering UAV-relevant components — aircraft engines, processors, capacitors, memories, and radio navigation equipment — many of which are EAR99 items outside existing ECCNs, requiring a new licence for exports and reexports to Iran. Simultaneously, the rule expands the existing Russia/Belarus FDP rule to cover these same items, closing a gap where foreign-produced items derived from US technology could transit to Russia via Iran without triggering EAR licence requirements.

Effective 24 February 2022 — the date of Russia's full-scale invasion of Ukraine — the US Bureau of Industry and Security (BIS) published an interim final rule (87 FR 12226, FR Doc 2022-04300) adding sweeping new export license requirements under a new § 746.8 of the Export Administration Regulations (EAR). The rule requires a licence for any item in CCL Categories 3–9 (electronics, computers, telecommunications, sensors, lasers, navigation/avionics, marine, aerospace, propulsion) exported, reexported, or transferred to Russia, with a review policy of denial. Two new Russia-specific Foreign Direct Product (FDP) rules extend US jurisdiction to foreign-manufactured goods: the Russia FDP Rule (§ 734.9(f)) covers all foreign-made items using US technology/equipment destined for Russia, and the Russia-MEU FDP Rule (§ 734.9(g)) covers items destined to 47 designated military-end-user (MEU) entities with no licence exceptions available. All three restrictions carry a presumption of denial, making this the most sweeping peacetime expansion of the EAR since its modern codification.

The Bureau of Industry and Security issued a final rule on September 11, 2020 amending the Export Administration Regulations (EAR) and Commerce Control List (CCL) to implement the remaining decisions adopted at the Wassenaar Arrangement December 2018 Plenary meeting, covering 28 ECCNs revised across Categories 1–3 and 5–9 and one new ECCN (6B002) added. The rule harmonises US dual-use export controls with the 41 other WA participating states, tightening or clarifying controls on semiconductors, sensors/lasers, navigation/avionics, marine equipment, aerospace propulsion, and information-security items. An earlier May 2019 rule had already implemented five emerging-technology decisions from the same 2018 Plenary; this rule covers the residual set of decisions not addressed at that time.