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Trade Alert: Commerce Expands Export Controls on Shipments of EAR99 Items to or within Russia

On May 9, 2022, the U.S. Department of Commerce’s Bureau of Industry and Security (“BIS”) announced a new final rule, to be published on May 11, 2022, expanding export controls against Russia under the Export Administration Regulations (“EAR”). The final rule imposes a license requirement under 15 C.F.R § 746.5(a)(1)(ii) for exports, reexports, or transfers (in-country) to or within Russia for additional items subject to the EAR identified under specific Harmonized Tariff Schedule (“HTS”) descriptions. The final rule adds 205 HTS codes at the 6-digit level (and descriptions) and 478 corresponding 10-digit Schedule B numbers (and descriptions) to the chart in Supplement No. 4 to Part 746.BIS has primarily restricted the export to Russia of items with an export control classification number (“ECCN”) as defined in the EAR, and generally only permitted shipments of EAR99 items without a license. Now, BIS is expanding its control of the export of items according to their HTS descriptions.Exporters can use either the referenced HTS Code or Schedule B number from Supplement No. 4 when filing Electronic Export Information (“EEI”) in the Automated Export System (“AES”). Shipments of items eligible for export, reexport, or transfer (in-country) without a license (NLR) or pursuant to a License Exception prior to this rule that were en route aboard a carrier on May 11, 2022, may proceed under the previous eligibility without a license (NLR) or pursuant to a License Exception.If you have any questions regarding BIS export controls on Russia, please do not hesitate to contact the attorneys at Torres Trade Law, PLLC.