On March 18, 2021, the Department of Commerce’s Bureau of Industry and Security (BIS) published in the Federal Register a Notification of Implementation pursuant to sanctions imposed by the Secretary of State under Section 306(a) of the Chemical and Biological Weapons Control and Warfare Elimination Act of 1991 (CBW Act).
Pursuant to the CBW Act sanctions, parties seeking to export or re-export items (commodities, software, or technology) that are subject to the Export Administration Regulations (EAR) and which are controlled for national security reasons, to the Russian Federation will require a BIS license. License applications for such national security-controlled items destined for Russia will be reviewed with a presumption of denial. BIS also is suspending the availability of the following license exceptions for such exports and re-exports of national security-controlled items to Russia: License Exception RPL (Service and Replacement of Parts and Equipment), License Exception TSU (Technology and Software Unrestricted), and License Exception APR (Additional Permissive Reexports). Additionally, BIS announced that, pursuant to the Secretary of State’s determination under the CBW Act, it is waiving the application of certain sanctions with respect to the licensing of certain national security-controlled exports and re-exports to Russia. Specifically, the following License Exceptions continue to be available: License Exception TMP (Temporary Imports, Exports, and Reexports); License Exception GOV (Governments, International Organizations, and International Inspections under the Chemical Weapons Convention); License Exception BAG (Baggage); License Exception AVS (Aircraft and Vessels); and License Exception ENC (Encryption Commodities and Software). Further, BIS will waive the presumption of denial for license applications, and will instead review license applications on a case-by-case basis for exports or re-exports of national security-controlled items for the following reasons: safety of flight for civil fixed-wing passenger aviation; deemed exports or re-exports; wholly-owned US and other foreign subsidiaries; commercial spaceflight (this waiver will expire on 1 September 2021); and government spaceflight.
Concurrent with this BIS Notice, the Department of State’s Directorate of Defense Trade Controls (DDTC) published in the Federal Register a Final Rule amending the International Traffic in Arms Regulations (ITAR). Under the Final Rule, § 126.1 of the ITAR is amended to include Russia in the list of countries subject to a policy of denial for exports of defense articles and defense services.
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