Export Compliance Daily is providing readers with the top stories from last week in case you missed them. You can find any article by searching the title or by clicking on the hyperlinked reference number.
The Bureau of Industry and Security added 10 more planes to its list of restricted aircraft, including seven planes owned by Belavia, the first Belarusian airline added to the list, the agency said April 14. The agency also added two additional planes owned by Utair and one aircraft owned by Aeroflot. BIS said it will impose penalties and/or jail time or revoke export privileges for any company or person who violates the Export Administration Regulations by providing “any form of service” to the listed aircraft without a required BIS license.
The Bureau of Industry and Security last week expanded its export license requirements for Russia and Belarus to cover all items on the Commerce Control List, further widening restrictions that previously only applied to categories 3-9 of the CCL (see 2202240069). The revised requirements, which took effect April 8, will now apply to all items in CCL categories 0-2, including nuclear materials, facilities and equipment (Category 0); materials, chemicals, microorganisms and toxins (Category 1); and materials processing equipment (Category 2).
The Bureau of Industry and Security expanded its export license requirements for Russia and Belarus to cover all items on the Commerce Control List, the agency said in an April 8 notice, further widening restrictions that previously only applied to categories 3-9 of the CCL. The agency correspondingly revised its recently created Russia/Belarus foreign direct product rule, which will now apply to all items on the CCL, BIS said. The agency also revised its License Exception Aircraft, vessels and spacecraft (AVS) to limit its availability for certain Belarus-related aircraft. The changes are effective April 8.
The Bureau of Industry and Security sent a proposed rule for interagency review that could place new export controls on certain “marine toxins.” The rule, sent for review March 21, proposes changes to the Commerce Control List to reflect revisions recently made at the Australia Group, a multilateral export control group for chemical and biological weapons. If approved by the interagency, the proposed rule will request public comments on the control changes.
The Census Bureau issued March 15 guidance on recent changes to the Automated Export System that accommodate new export controls on cybersecurity items (see 2110200036). AES now includes license code 64 for newly created License Exception Authorized Cybersecurity Exports, which authorizes exports of certain cybersecurity items. The guidance includes information on how to use the new license code and which Export Control Classification Numbers, modes of transportation and Export Information Codes are eligible. The license exception, which the Bureau of Industry and Security announced in October along with new export controls for certain cybersecurity items, took effect March 7 (see 2201110025).
The Bureau of Industry and Security is preparing to issue new export control decisions involving emerging technologies agreed to at the 2021 Wassenaar Arrangement plenary. The interim final rule, sent for interagency review March 8, will harmonize the Commerce Control List with a portion of Wassenaar’s 2021 decisions for certain “recently developed or developing technologies,” BIS said. BIS will implement the remaining Wassenaar 2021 control decisions in a separate rule.
The U.S.’s new Russia export controls could lead to a short-term spike in license applications, but volumes will likely taper off later this year as businesses divest from Russia, said Nazak Nikakhtar, a former senior U.S. export control official.
As global trade restrictions against Russia continue to increase, some companies are grappling with whether to fully exit the Russian market or rely on sanctions screening and temporary carve-outs to keep their operations afloat, lawyers and experts said in interviews this month. But the risks for a majority of businesses are quickly becoming too high, especially as sanctions are expected to grow more punishing.
The U.S. announced a host of new sanctions and export controls, including two new additions to the Entity List, to further penalize Russia and Belarus for the invasion of Ukraine. The measures place new restrictions on technology and software exports to Belarus, export controls on shipments of oil and gas extraction equipment to Russia, blocking sanctions on 22 Russian defense entities and a prohibition on Russian cargo planes flying to and from the U.S.