Commerce Department introduces further Russia export restrictions

The US Commerce Department’s Bureau of Industry and Security (‘BIS’) has released a rule which, it says, builds on its 3 March 2022, Russian Industry Sector Sanctions rule ‘by expanding the scope of items subject to stringent license requirements.’

It says that ‘The items now subject to license requirements support a wide range of commercial and industrial operations, from wood products to construction machinery, and are consistent with existing restrictions on similar items put in place by the European Union (EU).’

Specifically, it says, ‘The rule expands the scope of the Russian industry sector sanctions by adding 205 6-digit Harmonized Tariff Schedule (HTS) codes and the corresponding 478 Schedule B numbers to the list of items requiring a license for the export, reexport, or transfer (in-country) to Russia in order to better align with restrictions put in place by the European Union. These items are classified as EAR99, which previously did not require a license for most exports to Russia. The rule also makes some clarifying and conforming changes to existing rules. The rule takes effect on upon release by the Federal Register.’

The action, says BIS, ‘furthers international coordination in response to Russia’s brutal and illegal invasion of Ukraine and will further deprive Russia’s government of additional tools, equipment, and resources it needs to support activities that generate revenues that sustain its military aggression.’

The text of the rule, which includes the list of applicable HTS codes and Schedule B numbers, is available on the Federal Register’s website at: https://www.federalregister.gov/documents/2022/05/11/2022-10099/expansion-of-sanctions-against-russian-industry-sectors-under-the-export-administration-regulations