U.S. Expands Export Control Restrictions on Russia
Client Alert
On March 2, 2021, the U.S. Department of State announced new Russia-related sanctions and Entity List additions pursuant to the Countering America’s Adversaries Through Sanctions Act (CAATSA) and Chemical and Biological Weapons Act (CBW Act) following a determination that the Russian Government used a chemical weapon against its own nationals. As relevant to forwarders, some of these sanctions included changes to export control policy regarding exports, re-exports, and in-country transfers involving Russia.
Effective March 18, 2021, the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) has:
- Suspended the following license exceptions for items controlled for national security reasons (NS items) destined to Russia:
- Servicing and Replacement Parts and Equipment (RPL)
- Technology and Software Unrestricted (TSU), and
- Additional Permissive Reexports (APR).
- Adopted a presumption of denial review standard for license applications for exports and re-exports to Russia of NS items, with the following exceptions:
- Items necessary for the safety of civil fixed-wing passenger aviation
- Deemed exports and re-exports to Russian nationals
- Items destined for wholly-owned U.S. subsidiaries and other foreign subsidiaries of U.S. companies that are located in Russia
- Items in support of government space cooperation, and
- Until September 1, 2021, items in support of commercial space launch activities.
In addition, effective March 18, 2021, the Department of State’s Directorate of Defense Trade Controls (DDTC) has added Russia to the 22 CFR § 126.1 list of countries subject to a presumption of denial and ineligible for license exemptions, with some exceptions for shipments:
- Supporting government space cooperation projects, and
- Until September 1, 2021, supporting commercial space launch projects.
In light of these changes, it may be prudent for forwarders to review Russia-related exports and re-exports of NS items to ensure that they are not relying on license exceptions RPL, TSU, or APR. Similarly, it may be prudent to review Russia-related shipments of US Munitions List (USML) items to confirm they are not relying on inapplicable International Traffic in Arms Regulations (ITAR) license exemptions.
We hope this is helpful, but please let us know if you have any questions.
