In a final rule published on May 23, 2023, the Department of Commerce’s Bureau of Industry and Security (BIS) announced the implementation of new export controls for exports, re-exports, and in-country transfers to Russia and Belarus under the Export Administration Regulations (EAR). BIS also issued a press release on the expanded controls on May 19, 2023.
According to the rule, the Department of Commerce seeks to strengthen the existing controls through certain actions, including but not limited to:
- Expanding the scope of existing controls on exports, re-exports, and in-country transfers to Russia and Belarus; and
- Expanding the application of the existing Foreign Direct Product Rule for Russia and Belarus to also include the Crimea Region of Ukraine.
As part of the expanded controls on Russia and Belarus, the rule adds 1,224 additional items to Supplement number 4 to part 746 of the EAR. Items listed in this supplement, which appear at the 6-digit Harmonized Tariff Schedule (HTS) level, require a BIS license for export, re-export, or transfer (in-country) to Russia or Belarus.
The rule includes a Savings Clause stating that items affected by these changes “that were en route aboard a carrier to a port of export, reexport, or transfer (in-country), on May 19, 2023, pursuant to actual orders for export, reexport, or transfer (in-country) to or within a foreign destination, may proceed to that destination under the previous eligibility for a License Exception or export, reexport, or transfer (in-country) without a license (NLR), provided the export, reexport, or transfer (in-country) is completed no later than on June 20, 2023.”
The rule became effective on May 19, 2023.
The final rule can be found here:
A BIS press release can be found here:
https://www.bis.doc.gov/index.php/documents/about-bis/newsroom/press-releases/3273-2023-05-19-bis-press-release-russia-rules-and-joint-bis-fincen-alert/file
