Commerce Releases Final Rule on Implementation
of Additional Sanctions Against Russia and Belarus
Under the Export Administration Regulations (EAR)

June 25, 2024

On June 18, 2024, the Department of Commerce released it final rule implementing additional sanctions against Russia and Belarus under the Export Administration Regulations (EAR) (See Fed. Reg. Notice: 89 FR 51644). 

Effective Date: This rule is effective on June 12, 2024, except for amendatory instruction 14, which is effective September 16, 2024.

Summary of Rule: In this final rule, Commerce makes changes to the Russia and Belarus sanctions under the EAR. This final rule imposes additional export control measures against Russia and Belarus by:

  • Expanding the scope of items identified under two EAR supplements that are subject to the EAR's Russian and Belarusian industry sector sanctions;
  • Imposing a “software” license requirement for EAR99-designated “software” when destined to or within Russia or Belarus;
  • Narrowing the scope of commodities and software that may be authorized for export, reexport, or transfer (in-country) to or within Russia or Belarus under License Exception Consumer Communications Devices (CCD); and
  • Consolidating the EAR's Russian and Belarus sanctions into a single section while maintaining the existing related regulatory supplements identifying items that are subject to certain of those sanctions.

This final rule also amends the EAR by adding five entities and eight addresses to the Entity List and making changes to the Entity List structure. These entries are listed on the Entity List under the destinations of the People's Republic of China (China) and Russia and have been determined by the U.S. government to be acting contrary to the national security or foreign policy interests of the United States.

Expansion of List of HTSUS Items Controlled for Export To Russia and Belarus

This rule expands the list of items set forth in supplement no. 4 to part 744. Specifically, this rule adds 522 additional Harmonized Tariff Schedule (HTS)-6 Code entries to supplement no. 4. Consequently, these items will now require a license for export to, reexport to, or transfer (in-country) within Russia or Belarus under § 746.8(a)(5). Restrictions on these industrial items are intended to further undermine the Russian and Belarusian industrial bases and their ability to continue to support Russia's military aggression in Ukraine. The complete list of 522 new HTS-6 Codes this rule adds to supplement no. 4 are identified in amendatory instruction 18.

Through the addition of these HTS codes, BIS intends to further limit Russia's access to items of potential military significance and expand the economic impact of controls that will deny Russia additional resources it needs to continue waging war.

This final rule adds a new paragraph (h) to control certain riot control agents that are isomers of CS (o-Chlorobenzylidenemalononitrile or o-Chlorobenzalmalononitrile) (CAS 2698-41-1); CN (Phenylacyl chloride or w-Chloroacetophenone) (CAS 532-27-4); or Oleoresin Capsicum (CAS 8023-77-6).

Consolidation of Rules

Prior to this final rule, license requirements for exports, reexports, and transfers (in-country) to or within Russia and Belarus added in or after February 2022 were primarily found in three sections in part 746 of the EAR: §§ 746.5 (for a variety of industrial goods), 746.8 (mostly for items on the Commerce Control List and items caught by the Russia and Belarusian-related foreign direct product rules), and 746.10 (for ‘luxury goods’).

In this final rule, all of these license requirements are being consolidated into a revised and expanded § 746.8 specifically as follows:

  • License requirements from former § 746.8 are now found in paragraphs (a)(1) through (3) of § 746.8;
  • License requirements from former § 746.5 are now found in paragraphs (a)(4) through (6) of § 746.8; and
  • License requirements from former § 746.10 are now found in paragraph (a)(7) of § 746.8.

To implement this consolidation, this final rule removes and reserves §§ 746.5 (Russian and Belarusian industry sector sanctions) and 746.10 (‘Luxury goods’ sanctions against Russia and Belarus and Russian and Belarusian oligarchs and malign actors). The contents and related restrictions in those two EAR sections will now be located in the consolidated § 746.8, which with this final rule will become the primary part 746 section implementing export controls on Russia and Belarus.

Lastly, this final rule makes two additional revisions to the EAR: one to confirm the criteria used when revising, suspending, or revoking EAR license exceptions and one to clarify the control status of fasteners for purposes of the EAR's Russian and Belarusian industry sector sanctions.

If have questions about these or other customs matters, contact George Tuttle, III at geo@tuttlelaw.com or at 415-986-8780.

The information in this article is general in nature and is not intended to constitute legal advice or to create an attorney-client relationship with respect to any event or occurrence and may not be considered as such.

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