Industrial Policy & Trade Monitor· 2667 actions· ✨ 89 recent

The Bureau of Industry and Security published a final rule on 6 June 2022 (effective 2 June 2022) consolidating corrections, clarifications, and substantive amendments to the series of EAR Russia/Belarus rules issued between February and May 2022. The most significant substantive change eliminates the EAR99 food and medicine carve-out for 146 footnote-3-designated military end-user entities already on the Entity List, subjecting all items subject to the EAR — including previously exempt food and medicine — to licensing requirements with a policy of denial for the FSB, SVR, and GRU. Additional provisions clarify luxury goods value thresholds, oil refinery sector controls, and civil telecommunications license review policy, and correct cross-references in the Foreign Direct Product Rules for Russia and Belarus.

BIS published a technical correction to the Entity List (15 CFR Part 744, Supplement No. 4) fixing three errors in the February 14, 2022 final rule (87 FR 8180; FR Doc. 2022-03029) that added and revised Huawei entities. Two entries — Huawei Cloud Brazil (São Paulo) and Huawei Technologies Co., Ltd. (China, with 22+ affiliated addresses) — incorrectly cited §736.2(b)(3)(vi) as the Foreign Direct Product rule trigger instead of the correct §734.9(e) (the Huawei-specific FDP rule); a third error was a typographical fix to the footnote reference ("except for" → "EXCEPT\2\ for"). No new restrictions were created; the substantive export control status of all listed Huawei entities is unchanged, but exporters relying on the CFR text now have the correct regulatory citation for license requirement determinations.

Canada amended the Special Economic Measures (Russia) Regulations via SOR/2022-067, registered and in force 24 March 2022, establishing a new "Restricted Goods and Technologies List" and prohibiting any person in Canada, and any Canadian outside Canada, from exporting, selling, supplying or shipping any listed good or technology to Russia or to any person in Russia. The list is maintained and published separately by Global Affairs Canada and covers items with dual civilian/military applications across electronics, computers, telecommunications, sensors and lasers, navigation and avionics, marine, aerospace and transportation equipment.

On 28 February 2022, South Korea's government condemned Russia's invasion of Ukraine and announced it would strengthen export control review to block strategic items -- microelectronics, telecommunications equipment, sensors, navigation equipment, avionics, marine equipment, and aircraft components -- from reaching Russia. The statement also committed Korea to joining the exclusion of designated Russian banks from the SWIFT international payments system, with implementation details to follow through interagency consultation, alongside plans to release strategic petroleum reserves and divert LNG cargoes to Europe.

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.

Effective 3 February 2022, the Bureau of Industry and Security published a final rule (87 FR 6231, FR Doc 2022-02302) consolidating all existing Foreign Direct Product (FDP) rules from scattered locations in EAR Parts 736 and 744 into a single new section, 15 CFR §734.9, under Part 734 (Scope of the EAR). The rule made no substantive changes to existing controls — it reorganised four pre-existing FDP rules (National Security, 9x515, 600 Series, and Entity List) into a clean §734.9(b)–(e) architecture, clarified the definition of "major component" at §734.9(a), and corrected a drafting ambiguity that had obscured the U.S.-origin technology trigger for three of the four rules. The newly created §734.9 structure became the vehicle used by BIS to add the Russia/Belarus FDP rule (§734.9(f)) just 21 days later, on 24 February 2022.