The Bureau of Industry and Security (BIS) has implemented a final rule updating Russia and Belarus sanctions under the Export Administration Regulations (EAR), expanding export controls, adding new software licensing requirements, narrowing exceptions, consolidating regulations, updating the Entity List, and clarifying compliance criteria, effective June 12, 2024, with some amendments effective 90 days post-publication.
The Bureau of Industry and Security (BIS) has recently implemented a final rule that brings significant updates to the sanctions concerning Russia and Belarus under the Export Administration Regulations (EAR). These changes are crucial in shaping the trade landscape and ensuring compliance with international regulations.
Download the Final Rule here
Expansion of export controls
One of the key modifications introduced by this rule is the expansion of export controls. The scope of items covered by two EAR supplements that are subject to sanctions targeting the Russian and Belarusian industry sectors has been widened. This adjustment reflects a more stringent approach towards regulating the export of specific goods to these regions.
Certain EAR99-designated software intended for or located in Russia or Belarus
Moreover, the rule now mandates a software licensing requirement for certain EAR99-designated software intended for or located in Russia or Belarus. This requirement aims to enhance oversight and control over the distribution and use of such software within these sanctioned territories.
Exceptions
Additionally, exceptions have been narrowed down under the new regulations. The range of commodities and software that qualify for export, reexport, or transfer to Russia or Belarus under License Exception Consumer Communications Devices (CCD) has been restricted. This change emphasizes the need for stricter adherence to the imposed sanctions.
Consolidation of Russia and Belarus into a single section
To streamline the understanding and enforcement of the sanctions, the rule consolidates the regulations related to Russia and Belarus into a single section. This consolidation is designed to promote clarity and facilitate compliance while retaining the existing regulatory supplements for reference.
Entity List changes
Furthermore, the Entity List has been updated with the addition of five entities and eight addresses, including entries from China and Russia. These entities are identified as posing threats to U.S. national security or foreign policy interests. The restructuring of the Entity List aims to enhance the identification and monitoring of such entities.
Licence changes
In addition to these significant changes, the rule confirms the criteria for revising, suspending, or revoking EAR license exceptions. It also clarifies the control status of fasteners under the sanctions targeting the Russian and Belarusian industry sectors, providing further guidance for compliance.
Effective as of June 12, 2024, with specific amendments taking effect 90 days after publication in the Federal Register, this rule marks a critical milestone in the ongoing efforts to regulate trade activities with Russia and Belarus. For more detailed information, download the final rules and contact us for details and a chat.
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Download the Final Rule here.