export-controls 25 April 2024

BIS amends EAR to expand export controls against Russia and Iran

The US Bureau of Industry and Security has introduced a final rule amending the Export Administration Regulations (‘EAR’) which are intended to strengthen export controls against the military capabilities of Russia and Iran.

The new rule ‘expands the list of items included in supplement no. 7 to part 746 to include additional items that are critical to Iran and Russia’s weapons programs,’ BIS said in a notice in the Federal Register, 22 April. It notes that, while BIS’s controls cover a ‘vast array of items necessary to the defense industries of Iran and Russia’, certain items ‘are more significant to their weaponry than others.’

According to BIS, ‘The items in supplement no. 7 to part 746 will now include the entirety of the “Common High Priority List” (CHPL). In adding 39 additional items to supplement no. 7 to part 746, the supplement will now include all 50 Common High Priority items…

 ‘All items subject to the EAR that are classified under these HTS-6 entries already require a license for export, reexport, or transfer (in-country) to Russia and Belarus under § 746.5 of the EAR. In addition, CCL and U.S.-origin EAR99 items classified under these HTS-6 entries are prohibited for export or reexport to Iran under § 746.7(e) of the EAR.’

It says that, by adding these items to supplement no. 7 to part 746, ‘BIS jurisdiction over foreign produced items in these categories will be expanded, which will in turn expand license requirements for Russia and Belarus under § 746.8(a)(2). The addition of these codes to supplement no. 7 to part 746 will also expand EAR restrictions over foreign transactions with Iran under § 746.7(a). The restrictions on these items are intended to further undermine the ability of Iran and Russia to support the production of missiles, drones, and other military items for use against Israel and Ukraine.’

https://www.federalregister.gov/documents/2024/04/22/2024-08622/export-control-measures-underthe-export-administration-regulations-ear-to-address-iranian