On and effective April 8, 2022, the Department of Commerce’s Bureau of Industry and Security (BIS) issued a Final Rule that expands upon prior export control restrictions placed on Russian and Belarus in response to Russia’s invasion of Ukraine. This rule expands restrictive license requirements to include Commerce Control List (CCL) categories 0-2, which include materials and equipment relevant to nuclear, chemical, and materials processing. It applies additional export restrictions established under previous Russia and Belarus rules to now include the three remaining categories of controlled technology on the Commerce Control List (CCL) which had previously not been applied to Russia and Ukraine. For past BIS actions see Updates of March 4, 2022 and February 25, 2022.

While BIS noted that the vast majority of items in CCL categories 0-2 already required a license for Russia and Belarus (or are subject to the licensing authorities of other agencies), this Final Rule imposes new license requirements for items including certain composite materials, medical products containing certain toxins or genetically modified organisms, hydraulic fluids, pumps, valves, and lower-level machine tools. The rule also applies the foreign “direct product” rule for Russia/Belarus to apply to all items in categories 0-9 of the CCL. In reviewing any license application, BIS has stated they it will typically apply a “policy of denial.”

This Final Rule also limits certain provisions of the license exception for aircraft (AVS) for aircraft registered in, owned or controlled by, or under charter or lease by Belarus or a national of Belarus.

BIS has stated that for these expanded CCL controls, shipments of items removed from eligibility for a License Exception or export or reexport without a license (NLR) as a result of these new export restrictions that were en route aboard a carrier to a port of export or reexport, on May 9, 2022, pursuant to actual orders for export or reexport to Burma, may proceed under their previous eligibility.

Photo of Scott E. Diamond** Scott E. Diamond**

Scott is a senior policy advisor with more than 25 years’ experience with the legislative and regulatory processes involved in international trade policy, remedies and enforcement. This includes working with clients on matters involving export controls, economic sanctions, human rights and forced labor…

Scott is a senior policy advisor with more than 25 years’ experience with the legislative and regulatory processes involved in international trade policy, remedies and enforcement. This includes working with clients on matters involving export controls, economic sanctions, human rights and forced labor compliance, corporate anti-boycott and antibribery compliance, national security investigations, and foreign direct investment in the United States.

**Not licensed to practice law.

Photo of Samir D. Varma Samir D. Varma

Samir advises multinational corporations on export controls, economic sanctions and customs, and counsels individuals and corporations on the Foreign Corrupt Practices Act (FCPA) and other anti-corruption laws. He represents clients in enforcement actions before U.S. regulatory agencies and conducts corporate internal investigations.

Photo of Francesca M.S. Guerrero Francesca M.S. Guerrero

Francesca counsels clients on compliance with export controls, sanctions, import regulations, human rights and forced labor, and the FCPA and antibribery laws. She works closely with companies to develop tailored compliance programs that fit their specific needs, and routinely advises clients on some…

Francesca counsels clients on compliance with export controls, sanctions, import regulations, human rights and forced labor, and the FCPA and antibribery laws. She works closely with companies to develop tailored compliance programs that fit their specific needs, and routinely advises clients on some of their most challenging international transactions, involving dealings in high-risk jurisdictions or with high-risk counterparties. Francesca also counsels companies through all phases of internal investigations of potential trade and antibribery violations and represents companies across industries before related government agencies.