BIS Rule Expands Russian Sanctions with Immediate Effect

The Commerce Department’s Bureau of Industry and Security (BIS) has published new regulations, effective today (May 9), which expand sanctions against Russian industry sectors in response to Russia’s invasion of Ukraine.

The items now subject to the license requirement found in 15 CFR 746.5(a)(1)(ii) were added to Supplement 4 of Part 746.

BIS added 205 6-digit HTS codes and 478 corresponding 10-digit Schedule B numbers to the supplement, although the supplement’s introduction was amended to clarify that only items identified in the HTS description column are subject to the license requirement in § 746.5(a)(1)(ii). Supplement 4 now contains more than 230 unique HTS descriptions, in contrast to the previous version of the supplement which contained approximately 20 unique HTS descriptions.

Items that are made ineligible for NLR or a license exception by this rule may proceed with the previously acceptable NLR or license exception if they are en route on board a carrier to the port of export, reexport, or in-country transfer by May 9.

Freight forwarders should be aware that they may have current shipments of EAR99 items that did not require a license until today. Shipments of items with HTS descriptions found in the updated Supplement 4 (dated May 9) will require a license if they are not already en route on board a carrier. Contact the USPPI for further instructions. Additionally, this rule, which is scheduled for publication in the Federal Register on May 11, provides clarification and guidance to the introductory paragraphs of Supplements 2 and 5 to Part 746.