The Department of Commerce’s Bureau of Industry and Security (BIS) issued on May 9, 2022, a Final Rule that greatly expands the list of items requiring a license to export to Russia. The export restrictions impact a broad range of inputs and products including wood products, industrial engines, boilers, motors, fans, and ventilation equipment, bulldozers, and many other items with industrial and commercial applications. These export control measures build upon the export controls and restrictions effective on March 3, 2022 (i.e., the Russian Industry Sector Sanctions rule codified at 15 C.F.R. 746.5). See Update of March 7, 2022. The March 3 rule created Supplement No. 4 to Part 746, which is a list of items primarily related to the oil sector and subject to a license requirement for export, reexport, and transfers (in-country) to or within Russia.

This final rule amends the Russian Industry Sector Sanctions to further expand the Supplement No. 4, by adding an additional 205 Harmonized Tariff Schedule codes at the 6-digit level and 478 corresponding 10-digit Census Schedule B numbers. BIS notes that this is intended to better align U.S. export controls with European Union controls. BIS further stated that it will continue to review any license applications for the export of any Supplement No. 4 items under a “policy of denial.”

Shipments of items en route aboard a carrier to a port of export, reexport, or transfer (in-country) on May 9, 2022, pursuant to actual orders for export, reexport, or transfer (in-country) to or within a foreign destination for which, prior to May 9 no license was required or a License Exception had been available, may proceed to that destination under the 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 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.

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.