Document ID: BIS-2022-0015-0001
Agency: bis
Document Type: Rule
Title: Export Administration Regulations: Expansion of Sanctions against Russia and Belarus
Posted Date: 2022-04-14T04:00Z

[Federal Register Volume 87, Number 72 (Thursday, April 14, 2022)]
[Rules and Regulations]
[Pages 22130-22132]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-07937]

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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Parts 734, 738, and 746

[Docket No. 220408-0089]
RIN 0694-AI83

Expansion of Sanctions Against Russia and Belarus Under the 
Export Administration Regulations (EAR)

AGENCY: Bureau of Industry and Security, Department of Commerce.

ACTION: Final rule.

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SUMMARY: In response to the Russian Federation's (Russia) ongoing 
aggression in Ukraine following its further invasion of the country, as 
substantially enabled by Belarus, this rule expands license 
requirements for Russia and Belarus under the Export Administration 
Regulations (EAR) to all items on the Commerce Control List (CCL). It 
also removes license exception eligibility for aircraft registered in, 
owned or controlled by, or under charter or lease by Belarus or a 
national of Belarus.

DATES: This rule is effective on April 8, 2022.

FOR FURTHER INFORMATION CONTACT: For questions on this final rule, 
contact Eileen Albanese, Director, Office of National Security and 
Technology Transfer Controls, Bureau of Industry and Security, 
Department of Commerce, Phone: (202) 482-0092, Fax: (202) 482-482-3355, 
Email: [email protected]. For emails, include ``Russia and Belarus'' in 
the subject line.

SUPPLEMENTARY INFORMATION:

Background

    In response to Russia's February 2022 further invasion of Ukraine 
and Belarus's substantial enabling of this invasion by allowing it to 
proceed from Belarusian territory, the Bureau of Industry and Security 
(BIS) imposed extensive sanctions on Russia and Belarus by amending the 
Export Administration Regulations (15 CFR parts 730-774) (EAR). These 
sanctions reflected the U.S. Government's position that Russia's 
invasion of Ukraine, as substantially enabled by Belarus, flagrantly 
violated international law, was contrary to U.S. national security and 
foreign policy interests, and undermined global order, peace, and 
security, and therefore necessitated stringent and expansive sanctions. 
Since February 2022, BIS, in coordination with its allies and partners, 
has issued several rules that subject both countries to restrictions 
under the EAR. BIS has primarily targeted the Russian and Belarusian 
defense, aerospace, and maritime sectors with expanded export controls, 
including controls on the export from abroad of certain foreign-
produced items that are subject to the EAR.
    Stringent licensing restrictions under the EAR were initially 
imposed on Russia as part of the final rule, Implementation of 
Sanctions Against Russia Under the Export Administration Regulations 
(EAR), effective on February 24, 2022, and published March 3, 2022 (87 
FR 12226). Among other restrictions, BIS implemented a new license 
requirement for Russia on items subject to the EAR and classified under 
any Export Control Classification Number (ECCN) in Categories 3 through 
9 of the Commerce Control List, supp. no. 1 to part 774 of the EAR 
(CCL) as part of new Sec.  746.8(a)(1) (Russia sanctions) in part 746 
of the EAR (Embargoes and Other Special Controls). BIS extended this 
new license requirement to Belarus (see Sec.  746.8 (Russia and Belarus 
sanctions)) as part of the final rule, Implementation of Sanctions 
Against Belarus Under the Export Administration Regulations (EAR), 
effective on March 2, 2022, and published March 8, 2022 (87 FR 13048) 
(Belarus rule).
    This rule expands the license requirement that was previously 
imposed on Russia and Belarus to include items classified under any 
ECCN in Categories 0 through 2 of the CCL. Accordingly, the license 
requirement under Sec.  746.8(a)(1) (Russia and Belarus sanctions) now 
applies to all items on the CCL. Additionally, consistent with this 
expanded license requirement, this rule revises the foreign ``direct 
product'' rule (FDP rule) in Sec.  734.9(f) of the EAR that relates to 
both Russia and Belarus (the ``Russia/Belarus FDP rule'') to apply to 
all items on the CCL. Therefore, foreign-produced items derived from 
ECCNs in Categories 0 through 9 of the CCL will now be subject to the 
EAR under the Russia/Belarus FDP rule as well as to the license 
requirement described in Sec.  746.8(a)(2).
    Additionally, as part of the U.S. Government's response to 
Belarus's actions in support of Russia's aggressive conduct in Ukraine, 
this rule limits the availability of two paragraphs of License 
Exception Aircraft, vessels and spacecraft (AVS) (Sec.  740.15(a) and 
(b)) for certain Belarus-related aircraft. Specifically, paragraph (c) 
(License Exceptions) specifies certain license exceptions that apply to 
Sec.  746.8(a)(1) and (2) for transactions involving Russia or Belarus, 
and this rule revises paragraph (c)(5) to preclude the availability of 
paragraphs (a) and (b) of License Exception AVS for any aircraft 
registered in, owned or controlled by, or under charter or lease by 
Belarus or a national of Belarus. Thus, as revised by this rule, 
paragraphs (a) and (b) of License Exception AVS are not available for 
aircraft registered in, owned, or controlled by, or under charter or 
lease by, Belarus or Russia, or by a Belarusian or Russian national. As 
a conforming change, this rule revises footnote 6 to the Commerce 
Country Chart (supplement no. 1 to part 738) to reflect

[[Page 22131]]

the revised license requirements in Sec.  746.8(a)(1).

Savings Clause

    For the expanded controls on Russia and Belarus under Sec.  
746.8(a)(2), shipments of items removed from eligibility for a License 
Exception or reexport or transfer (in-country) without a license (NLR) 
as a result of this regulatory action that were en route aboard a 
carrier to a port of export, reexport, or transfer (in-country), on May 
9, 2022, pursuant to actual orders for 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 
reexport or transfer (in-country) without a license (NLR).
    For all other changes being made in this final rule, shipments of 
items removed from eligibility for a License Exception or export, 
reexport, or transfer (in-country) without a license (NLR) as a result 
of this regulatory action that were en route aboard a carrier to a port 
of export, reexport, or transfer (in-country), on April 8, 2022, 
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).

Export Control Reform Act of 2018

    On August 13, 2018, the President signed into law the John S. 
McCain National Defense Authorization Act for Fiscal Year 2019, which 
included the Export Control Reform Act of 2018 (ECRA) (codified, as 
amended, at 50 U.S.C. 4801-4852). ECRA provides the legal basis for 
BIS's principal authorities and serves as the authority under which BIS 
issues this rule. To the extent it applies to certain activities that 
are the subject of this rule, the Trade Sanctions Reform and Export 
Enhancement Act of 2000 (TSRA) (codified, as amended, at 22 U.S.C. 
7201-7211) also serves as authority for this rule.

Rulemaking Requirements

    1. This final rule is not a ``significant regulatory action'' 
because it ``pertain[s]'' to a ``military or foreign affairs function 
of the United States'' under sec. 3(d)(2) of Executive Order 12866.
    2. Notwithstanding any other provision of law, no person is 
required to respond to, nor shall any person be subject to a penalty 
for failure to comply with, a collection of information subject to the 
requirements of the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et 
seq.) (PRA), unless that collection of information displays a currently 
valid Office of Management and Budget (OMB) Control Number. This rule 
involves three collections of information. BIS believes there will be 
minimal burden changes to two of these collections--Five-Year Records 
Retention Requirement for Export Transactions and Boycott Actions (OMB 
control number 0694-0096) and Automated Export System (AES) Program 
(OMB control number 0607-0152).
    However, ``Multi-Purpose Application (OMB control number 0694-0088) 
will exceed existing estimates currently associated with this 
collection as the respondent burden will increase the estimated number 
of submissions by 150 for license applications submitted annually to 
BIS. BIS estimates the burden hours associated with this collection 
would increase by 77 (i.e., 150 applications x 30.6 minutes per 
response) for a total estimated cost increase of $2,310 (i.e., 77 hours 
x $30 per hour). The $30 per hour cost estimate for OMB control number 
0694-0088 is consistent with the salary data for export compliance 
specialists currently available through glassdoor.com (glassdoor.com 
estimates that an export compliance specialist makes $55,280 annually, 
which computes to roughly $26.58 per hour). Consistent with 5 CFR 
1320.13, BIS requested, and OMB has approved, emergency clearance for 
an increase in the burden estimate due to the additional license 
requirements imposed by this rule.
    3. This rule does not contain policies with federalism implications 
as that term is defined in Executive Order 13132.
    4. Pursuant to section 1762 of the Export Control Reform Act of 
2018 (50 U.S.C. 4821) (ECRA), this action is exempt from the 
Administrative Procedure Act (APA) (5 U.S.C. 553) requirements for 
notice of proposed rulemaking, opportunity for public participation, 
and delay in effective date. While section 1762 of ECRA provides 
sufficient authority for such an exemption, this action is also 
independently exempt from these APA requirements because it involves a 
military or foreign affairs function of the United States (5 U.S.C. 
553(a)(1)).
    5. Because a notice of proposed rulemaking and an opportunity for 
public comment are not required to be given for this rule by 5 U.S.C. 
553, or by any other law, the analytical requirements of the Regulatory 
Flexibility Act, 5 U.S.C. 601, et seq., are not applicable. 
Accordingly, no regulatory flexibility analysis is required and none 
has been prepared.

List of Subjects

15 CFR Part 734

    Administrative practice and procedure, Exports, Inventions and 
patents, Research, Science and technology.

15 CFR Part 738

    Exports.

15 CFR Part 746

    Exports, Reporting and recordkeeping requirements.

    For the reasons stated in the preamble, parts 734, 738, and 746 of 
the Export Administration Regulations (15 CFR parts 730 through 774) 
are amended as follows:

PART 734--SCOPE OF THE EXPORT ADMINISTRATION REGULATIONS

0
1. The authority citation for 15 CFR part 734 continues to read as 
follows:

    Authority: 50 U.S.C. 4801-4852; 50 U.S.C. 4601 et seq.; 50 
U.S.C. 1701 et seq.; E.O. 12938, 59 FR 59099, 3 CFR, 1994 Comp., p. 
950; E.O. 13020, 61 FR 54079, 3 CFR, 1996 Comp., p. 219; E.O. 13026, 
61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O. 13222, 66 FR 44025, 3 
CFR, 2001 Comp., p. 783; E.O. 13637, 78 FR 16129, 3 CFR, 2014 Comp., 
p. 223; Notice of November 10, 2021, 86 FR 62891 (November 12, 
2021).

0
2. Section 734.9 is amended by revising paragraph (f) to read as 
follows:

Sec.  734.9   Foreign-Direct Product (FDP) Rules.

* * * * *
    (f) Russia/Belarus FDP rule. A foreign-produced item is subject to 
the EAR if it meets both the product scope in paragraph (f)(1) of this 
section and the destination scope in paragraph (f)(2) of this section. 
See Sec.  746.8 of the EAR for license requirements, license review 
policy, and license exceptions applicable to foreign-produced items 
that are subject to the EAR pursuant to this paragraph (f).
    (1) Product scope of Russia/Belarus FDP rule. The product scope 
applies if a foreign-produced item meets the conditions of either 
paragraph (f)(1)(i) or (ii) of this section.
    (i) ``Direct product'' of ``technology'' or ``software.'' A 
foreign-produced item meets the product scope of this paragraph 
(f)(1)(i) if the foreign-produced item is not designated EAR99 and is a 
``direct product'' of U.S.-origin ``technology'' or ``software'' 
subject to the EAR that is specified in any ECCN in product groups D or 
E of the CCL; or

[[Page 22132]]

    (ii) ``Direct product'' of a complete plant or `major component' of 
a plant. A foreign-produced item meets the product scope of this 
paragraph (f)(1)(ii) if the foreign-produced item is not designated 
EAR99 and is produced by any plant or `major component' of a plant that 
is located outside the United States, when the plant or `major 
component' of a plant, whether made in the United States or a foreign 
country, itself is a ``direct product'' of U.S.-origin ``technology'' 
or ``software'' subject to the EAR that is specified in any ECCN in 
product groups D or E of the CCL.
    (2) Destination scope of the Russia/Belarus FDP rule. A foreign-
produced item meets the destination scope of this paragraph (f)(2) if 
there is ``knowledge'' that the foreign-produced item is destined to 
Russia or Belarus or will be incorporated into or used in the 
``production'' or ``development'' of any ``part,'' ``component,'' or 
``equipment'' not designated EAR99 and produced in or destined to 
Russia or Belarus.
* * * * *

PART 738--COMMERCE CONTROL LIST OVERVIEW AND THE COUNTRY CHART

0
3. The authority citation for 15 CFR part 738 continues to read as 
follows:

    Authority:  50 U.S.C. 4801-4852; 50 U.S.C. 4601 et seq.; 50 
U.S.C. 1701 et seq.; 10 U.S.C. 8720; 10 U.S.C. 8730(e); 22 U.S.C. 
287c; 22 U.S.C. 2151 note; 22 U.S.C. 3201 et seq.; 22 U.S.C. 6004; 
42 U.S.C. 2139a; 15 U.S.C. 1824; 50 U.S.C. 4305; 22 U.S.C. 7201 et 
seq.; 22 U.S.C. 7210; E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 
228; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783.

0
4. Supplement no. 1 to part 738 is amended by revising the entries for 
``Belarus'' and ``Russia'' and footnote 6 to read as follows:

                                                                      Supplement No. 1 to Part 738--Commerce Country Chart
                                                                                      [Reason for control]
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                                           Chemical and  biological        Nuclear           National       Missile       Regional        Firearms         Crime control         Anti-terrorism
                                                   weapons            nonproliferation       security         tech        stability      convention --------------------------------------------
                Countries                -----------------------------------------------------------------------------------------------------------
                                            CB 1     CB 2     CB 3     NP 1      NP 2      NS 1     NS 2      MT 1      RS 1     RS 2       FC 1       CC 1     CC 2     CC 3     AT 1     AT 2
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                                          * * * * * * *
Belarus \6\.............................       X        X        X         X         X        X        X          X        X        X   ...........       X        X   .......  .......  .......
 
                                                                                          * * * * * * *
Russia \6\..............................       X        X        X         X         X        X        X          X        X        X   ...........       X        X   .......  .......  .......
 
                                                                                          * * * * * * *
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 * * * * * * *
\6\ See Sec.   746.5 of the EAR for additional license requirements under the Russian Industry Sector Sanctions for ECCNs 0A998, 1C992, 3A229, 3A231, 3A232, 6A991, 8A992, and 8D999 and items
  identified in supplement no. 2 to part 746 of the EAR. See Sec.   746.8 of the EAR for Sanctions against Russia and Belarus, including additional license requirements for items listed in any
  ECCN on the CCL.

* * * * *

PART 746--EMBARGOES AND OTHER SPECIAL CONTROLS

0
5. The authority citation for 15 CFR part 746 continues to read as 
follows:

    Authority: 50 U.S.C. 4801-4852; 50 U.S.C. 4601 et seq.; 50 
U.S.C. 1701 et seq.; 22 U.S.C. 287c; Sec 1503, Pub. L. 108-11, 117 
Stat. 559; 22 U.S.C. 2151 note; 22 U.S.C. 6004; 22 U.S.C. 7201 et 
seq.; 22 U.S.C. 7210; E.O. 12854, 58 FR 36587, 3 CFR, 1993 Comp., p. 
614; E.O. 12918, 59 FR 28205, 3 CFR, 1994 Comp., p. 899; E.O. 13222, 
66 FR 44025, 3 CFR, 2001 Comp., p. 783; E.O. 13338, 69 FR 26751, 3 
CFR, 2004 Comp., p 168; Presidential Determination 2003-23, 68 FR 
26459, 3 CFR, 2004 Comp., p. 320; Presidential Determination 2007-7, 
72 FR 1899, 3 CFR, 2006 Comp., p. 325; Notice of May 6, 2021, 86 FR 
26793 (May 10, 2021).

0
6. Section 746.8 is amended by revising paragraphs (a)(1) and (c)(5) to 
read as follows:

Sec.  746.8   Sanctions against Russia and Belarus.

    (a) * * *
    (1) Items classified in any ECCN on the CCL. In addition to license 
requirements specified on the Commerce Control List (CCL) in supplement 
no. 1 to part 774 of the EAR and in other provisions of the EAR, 
including part 744 and Sec.  746.5, a license is required, excluding 
deemed exports and deemed reexports, to export, reexport, or transfer 
(in-country) to or within Russia or Belarus any item subject to the EAR 
and specified in any Export Control Classification Number (ECCN) on the 
CCL.
* * * * *
    (c) * * *
    (5) License Exception AVS, excluding any aircraft registered in, 
owned or controlled by, or under charter or lease by Russia or Belarus 
or a national of Russia or Belarus (Sec.  740.15(a) and (b) of the 
EAR).
* * * * *

Matthew S. Borman,
Deputy Assistant Secretary for Export Administration.
[FR Doc. 2022-07937 Filed 4-8-22; 4:15 pm]
BILLING CODE 3510-33-P