Implementation of Sanctions Against Russia Under the Export Administration Regulations (EAR)

CourtIndustry And Security Bureau
Citation87 FR 12226
Published date03 March 2022
Record Number2022-04300
12226
Federal Register / Vol. 87, No. 42 / Thursday, March 3, 2022 / Rules and Regulations
DEPARTMENT OF COMMERCE
Bureau of Industry and Security
15 CFR Parts 734, 738, 740, 742, 744,
746, and 772
[Docket No. 220215–0048]
RIN 0694–AI71
Implementation of Sanctions Against
Russia Under the Export
Administration Regulations (EAR)
AGENCY
: Bureau of Industry and
Security, Department of Commerce.
ACTION
: Final rule.
SUMMARY
: In response to the Russian
Federation’s (Russia’s) further invasion
of Ukraine, with this final rule, the
Department of Commerce is adding new
Russia license requirements and
licensing policies to the Export
Administration Regulations (EAR) to
protect U.S. national security and
foreign policy interests. These new
Russia measures: Impose new
Commerce Control List (CCL)-based
license requirements for Russia; add two
new foreign ‘‘direct product’’ rules (FDP
rules) specific to Russia and Russian
‘military end users;’ specify a license
review policy of denial applicable to all
of the license requirements being added
in this rule, with certain limited
exceptions; significantly restrict the use
of EAR license exceptions; expand the
existing Russia ‘military end use’ and
‘military end user’ control scope to all
items ‘‘subject to the EAR’’ other than
food and medicine designated EAR99,
or ECCN 5A992.c and 5D992.c unless
for Russian ‘‘government end users’’ and
Russian state-owned enterprises (SoEs);
transfer forty-five Russian entities from
the Military End-User (MEU) List to the
Entity List with an expanded license
requirement of all items subject to the
EAR (including foreign-produced items
subject to the Russia-MEU FDP rules);
and add two new Russia entities and
revise two Russia entities to the Entity
List. Lastly, this rule imposes
comprehensive export, reexport and
transfer (in-country) restrictions for the
so-called Donetsk People’s Republic
(DNR) and Luhansk People’s Republics
(LNR) regions of Ukraine (‘‘Covered
Regions of Ukraine’’) and makes
conforming revisions to export, reexport
transfer (in-country) restrictions for
Crimea Region of Ukraine provisions.
DATES
: This rule is effective February
24, 2022.
FOR FURTHER INFORMATION CONTACT
: For
questions on the Entity List and MEU
List, contact the Chair, End-User Review
Committee, Office of the Assistant
Secretary, Export Administration,
Bureau of Industry and Security,
Department of Commerce, Phone: (202)
482–5991, Fax: (202) 482–3911, Email:
ERC@bis.doc.gov.
For other questions on this final rule,
contact Eileen Albanese, Director, Office
of National Security and Technology
Transfer Controls, Bureau of Industry
and Security, Department of Commerce,
Phone: (202) 482–0092, Fax: (202) 482–
3355, Email: rpd2@bis.doc.gov. For
emails, include ‘‘Russia’’ in the subject
line.
SUPPLEMENTARY INFORMATION
:
I. Background
In response to the Russian
Federation’s (Russia’s) further invasion
of Ukraine, the Bureau of Industry and
Security (BIS) imposes extensive
sanctions on Russia by amending the
Export Administration Regulations (15
CFR parts 730–774) (EAR). Russia’s
invasion of Ukraine flagrantly violates
international law, is contrary to U.S.
national security and foreign policy
interests, and undermines global order,
peace, and security, and therefore
necessitates these stringent and
expansive sanctions. The Commerce
Department’s sanctions are one aspect of
the broad U.S. Government response to
Russia’s unprovoked aggression and are
being imposed in coordination with
allies and partners.
In response to Russia’s 2014 invasion
of Ukraine and occupation of the
Crimean region, the U.S. Government,
in coordination with its partners and
allies, imposed restrictions on Russia,
including asset-blocking measures,
licensing requirements applicable to
exports, reexports, and transfers (in-
country) of items subject to the EAR
destined for certain Russian entities,
and special controls on items subject to
the EAR intended for use in specified
Russian industry sectors. Leading up to
Russia’s further invasion of Ukraine, the
U.S. Government announced that
should Russia encroach further on
Ukraine’s territory, it would impose
additional, comprehensive sanctions
with significant consequences.
The export control measures
implemented in this final rule protect
U.S. national security and foreign policy
interests by restricting Russia’s access to
items that it needs to project power and
fulfill its strategic ambitions. These
items include sophisticated
technologies designed and produced in
the United States, as well as certain
foreign-produced items that contain or
are based on U.S.-origin technology
subject to the EAR or other technology
that is subject to the EAR that are
essential inputs to Russia’s key
technology and other sectors. BIS is
primarily targeting the Russian defense,
aerospace, and maritime sectors with
these new export controls. These export
controls include controls on the export
from abroad of certain foreign-produced
items that are subject to the EAR. Given
the global dominance of U.S.-origin
software, technology, and equipment
(including tooling), these new controls,
implemented in parallel with similarly
stringent measures by partner and allied
countries, will cover a broad scope of
items that Russia seeks to advance its
strategic ambitions and consequently
impair the country’s key industrial
sectors.
II. Overview of New Controls
BIS is implementing a new license
requirement for Russia on items subject
to the EAR and classified under any
Export Control Classification Number
(ECCN) in Categories 3 through 9 of the
Commerce Control List, Supp. No. 1 to
part 774 of the EAR (CCL). The new
license requirement is added under new
§ 746.8(a)(1) (Russia sanctions) in part
746 of the EAR (Embargoes and Other
Special Controls). License exceptions
described in § 746.8(c)(1)–(7) may be
used to overcome the license
requirement. When a license application
is required, applications for such items
will be subject to a policy of denial.
However, to minimize unintended
consequences, a case-by-case review
policy applies to applications to export,
reexport, or transfer (in-country) items
that ensure safety of flight, maritime
safety, meet humanitarian needs, enable
government space cooperation, and
allow transactions for items destined to
specified Western subsidiaries and joint
ventures, support civil
telecommunications infrastructure in
certain countries, and government-to-
government activities. The case-by-case
review policy will be used to determine
whether a transaction that meets the
criteria above would benefit the Russian
government or defense sector.
Additionally, BIS is establishing two
new foreign ‘‘direct product’’ rules (FDP
rules) in § 734.9 of the EAR. The first
relates to the entire country of Russia,
as described in new § 734.9(f) (the
‘‘Russia FDP rule’’). Foreign-produced
items subject to the EAR under the
Russia FDP rule will be subject to the
license requirement described in new
§ 746.8(a)(2) but will be eligible for
certain license exceptions described in
§ 746.8(c)(1)–(7). When a license
application is required, such
applications will be subject to a general
policy of denial but will be subject to
case-by-case review for certain
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circumstances described further in
§ 746.8(b).
The second new FDP rule targets
Russian ‘military end users,’ as
described in new § 734.9(g) (the
‘‘Russia-MEU FDP rule’’). Foreign-
produced items subject to the EAR
under the Russia-MEU FDP rule will be
subject to the license requirement
described in new § 746.8(a)(3). No
license exceptions are available to
overcome this license requirement,
except as specified in the Entity List
entry for a Footnote 3 entity on the
Entity List in supplement no. 4 to part
744 of the EAR, and such items will be
subject to a policy of denial for all
license applications, as described in
§ 746.8(b).
BIS has determined that certain
countries are committed to
implementing substantially similar
export controls as part of their domestic
sanctions against Russia. These
countries are identified in Supplement
No. 3 to part 746 (Russia Exclusions
List). They are excluded from the
requirements of the Russia and Russia-
MEU FDP rules and the de minimis
provisions under Supplement No. 2 to
part 734 with respect to ECCNs that
either specify only Anti-terrorism (AT)
in the reason for controls paragraph of
the ECCN or are classified under ECCN
9A991. This exclusion may be full or
partial, as noted in the Scope column of
the Russia Exclusions List and may only
apply when the criteria specified in
§ 746.8(a)(4) or (5) are met. In addition,
the Russia Exclusions List includes
certain countries that have committed to
implementing substantially similar
controls under their domestic laws but
have not yet implemented them.
BIS also is expanding the scope of the
existing ‘military end use’ and ‘military
end user’ control under § 744.21 of the
EAR for Russia to apply to all items
‘‘subject to the EAR’’ except food and
medicine designated EAR99, or ECCN
5A992.c and 5D992.c unless for Russian
‘‘government end users’’ and Russian
state-owned enterprises (SoEs). At the
same time, this rule removes forty-five
Russian entities from the Military End-
User (MEU) List in Supplement No. 7 to
part 744 and adds them to the Entity
List with an expanded license
requirement for the export, reexport,
and transfer (in-country) of all items
‘‘subject to the EAR,’’ including those
items subject to the Russia-MEU FDP
rule for ‘military end users’ in Russia.
Finally, BIS adds two new Russian
entities to the Entity List under this
final rule and revises two existing
entries for Russian entities on the Entity
List.
III. Amendments to the Export
Administration Regulations (EAR)
A. Implementation of New Sanctions
Against Russia
Addition of Expansive License
Requirements, Restrictive License
Review Policies, and Restrictions on
License Exception Eligibility for Russia
This final rule adds § 746.8 to impose
new sanctions against Russia in part 746
of the EAR (Embargoes and Other
Special Controls). Under paragraph (a)
(License Requirements) of this new
section, this final rule imposes three
distinct types of license requirements.
The first requirement, set forth in
paragraph (a)(1) is specific to the export,
reexport and transfer (in-country) of
items in categories 3, 4, 5, 6, 7, 8 or 9
of the CCL. The second and third
requirements, set forth in paragraphs
(a)(2) and (3) are specific to reexport,
export from abroad, and transfer (in-
country) of foreign-produced ‘‘direct
products’’ subject to the EAR under the
Russia or Russia-MEU FDP rules.
1. Section 746.8(a)(1) License
Requirement
New § 746.8(a)(1) (Items classified in
an ECCN in CCL Categories 3 through 9)
is supplemental to the license
requirements found elsewhere in the
EAR. Under this paragraph, a license is
required for the export, reexport, or
transfer (in-country) to or within Russia
of any item subject to the EAR and
specified in an ECCN in Categories 3, 4,
5, 6, 7, 8, or 9 of the CCL, excluding
deemed exports and deemed reexports.
In implementing these controls, BIS
imposes broad transfer (in-country)
requirements on an entire country,
reflecting the significance of the U.S.
national security and foreign policy
concerns, resulting from the Russian
further invasion of Ukraine. These
license requirements are intended to
further restrict items to the Russian
military and defense sector.
Additionally, paragraph (a)(1) extends
EAR license requirements to many items
that did not previously require a license
to Russia on the basis of their CCL
classification alone, such as the parts
and components used in civil aircraft
controlled under ECCN 9A991.d.
Although these items generally are
controlled at a lower level under the
EAR, they are still necessary for the
functioning of aircraft, vessels and
electronic items. As such, restrictions
on these items can significantly limit
Russia’s ability to obtain items it is not
able to produce. In addition, with these
new license requirements, additional
items will be treated as controlled U.S.-
origin content for purposes of de
minimis calculations under supplement
no. 2 to part 734 of the EAR, except as
described in § 746.8(a)(5). BIS estimates
that these new controls will result in an
additional 350 license applications
being submitted to BIS annually.
2. Section 746.8(a)(2) License
Requirement for the Russia FDP Rule
New paragraph (a)(2) (Foreign-
produced ‘‘direct product’’ items subject
to the EAR under Russia FDP rule)
requirements are imposed in
conjunction with the simultaneous
creation of a new foreign ‘‘direct
product’’ rule specific to Russia (Russia
FDP rule) in § 734.9(f) of the EAR. The
Russia FDP rule establishes a license
requirement for foreign-produced items
that meet certain product scope and
destination scope requirements in
§ 734.9(f) of the EAR. Specifically, the
Russia FDP rule makes the ‘‘direct
product’’ of a wide range of CCL
software and technology, or items
produced by a complete plant or ‘major
component’ of a plant that itself is the
‘‘direct product’’ of such U.S.-origin
technology or software, when it is
known that the foreign-produced item is
destined to Russia or will be
incorporated into or used in the
‘‘production’’ or ‘‘development’’ of any
‘‘part,’’ ‘‘component,’’ or ‘‘equipment’’
produced in or destined to Russia.
Notably, the product scope of the Russia
FDP rule does not include items
designated EAR99 that are produced by
‘‘technology’’ or ‘‘software’’ as described
in § 734.9(f)(1)(i) or by a complete plant
or ‘major component’ of a plant as
described in § 734.9(f)(1)(ii). The Russia
FDP rule is described in greater detail
below.
Under paragraph (a)(2), a license is
required for the reexport, export from
abroad, or transfer (in-country) of any
foreign-produced items subject to the
EAR under the Russia FDP Rule
described in § 734.9(f) of the EAR to any
destination. The phrase ‘any
destination’ is used to address situations
involving multi-step manufacturing
processes that occur in more than one
country and in which the parties
involved have ‘‘knowledge’’ that the
foreign-produced item being produced
will ultimately be reexported or
exported from abroad to Russia. The
license requirements under paragraph
(a)(2) will apply to the reexports or
exports from abroad from manufacturing
country 1 to manufacturing country 2
(each contributing to the production
chain), when there is ‘‘knowledge’’ that
the reexport or export from abroad of
the item is ultimately destined to Russia
or incorporated into or used in the
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production or development of any part
component or equipment (not
designated EAR99) produced in or
ultimately destined to Russia.
BIS estimates new license
requirements under § 746.8(a)(2) will
result in an additional 2,000 license
applications being submitted to BIS
annually.
3. Section 746.8(a)(3) License
Requirement for the Russia-MEU FDP
Rule
New paragraph (a)(3) (Foreign-
produced ‘‘direct product’’ items subject
to the EAR under Russia-Military End
User FDP Rule) requirements are
imposed in conjunction with the
simultaneous creation by this rule of a
new foreign ‘‘direct product’’ rule
specific to Russia (Russia-Military End
User FDP Rule) in § 734.9(g) of the EAR.
The Russia-Military End User FDP rule
establishes a license requirement for
foreign-produced items that meet
certain product scope and destination
scope requirements in § 734.9(g) of the
EAR. Specifically, this Russia-Military
End User FDP rule makes the ‘‘direct
product’’ of a wide range of CCL
software and technology (any software
or technology in an ECCN in any
category of the CCL subject to the EAR,
or items produced by a plant or major
component of a plant that itself is the
‘‘direct product’’ of such U.S.-origin
technology or software) when it is
known that the foreign-produced item
will be incorporated into, or will be
used in the ‘‘production’’ or
‘‘development’’ of any ‘‘part,’’
‘‘component,’’ or ‘‘equipment’’
produced, purchased, or ordered by any
entity with a footnote 3 designation in
the license requirement column of the
Entity List. Notably, the product scope
of the Russia-Military End User FDP
rule includes items designated EAR99
that are a ‘‘direct product’’ of
‘‘technology’’ or ‘‘software’’ described in
§ 734.9(g)(1)(i) or produced by a
complete plant or ‘major component’ of
a plant as described in § 734.9(g)(1)(ii).
The Russia-MEU FDP rule is described
in greater detail below.
Section 746.8(a)(3) specifies that
except as described in paragraph (a)(4)
of this section, a license is required to
reexport, export from abroad, or transfer
(in-country), to any destination, any
foreign-produced item subject to the
EAR under § 734.9(g) of the EAR other
than food or medicine designated as
EAR99, or ECCN 5A992.c and 5D992.c
unless for Russian ‘‘government end
users’’ and Russian state-owned
enterprises (SoEs). Because the Russia-
Military End User FDP rule includes
‘‘software’’ and ‘‘technology’’ in ECCNs
in Categories 0, 1 and 2 (in addition to
the other 7 categories of the CCL), the
likelihood that EAR99 food and
medicine foreign direct products could
be subject to the EAR increases. To the
extent that the direct product of ECCN
0, 1, and 2 may encompass EAR99 food
or medicine, this rule exempts those
items from the license requirement. For
the same reasons noted above in
connection with paragraph (a)(2), this
final rule also uses the phrase ‘any
destination.’
4. Countries Excluded From Certain
Russia License Requirements Under
Section 746.8
This final rule also adds a new
paragraph § 746.8(a)(4) (Exclusion from
license requirements under paragraphs
(a)(2) and (3)) to identify countries that
BIS has determined are committed to
implementing substantially similar
export controls as part of their domestic
sanctions against Russia. These
countries warrant full or partial
exclusions, as appropriate, from the
requirements set forth under paragraphs
(a)(2) and (3) as identified in
supplement No. 3 to part 746 (Russia
Exclusions List). Similarly, this final
rule adds new paragraph (a)(5)
(Exclusion from scope of U.S.-origin
controlled content under paragraph
(a)(1)) to carve out certain content from
the scope of U.S.-origin controlled
content for de minimis purposes under
supplement No. 2 to part 734 of the EAR
when making a de minimis calculation
for Russia. New paragraph (a)(5)
specifies that the license requirements
in paragraph (a)(1) of this section are not
used to determine controlled U.S.-origin
content in a foreign-made item,
provided that: The U.S.-origin content is
described in ECCNs that either specify
only Anti-terrorism (AT) in the reason
for controls paragraph of the ECCN or is
classified under ECCN 9A991 and is
included in the Scope column of the
Russia Exclusions List; and the foreign-
made item will be reexported or
exported to Russia from a country in the
Russia Exclusions List.
As a conforming change, this final
rule also revises supplement No. 2 to
part 734—Guidelines for De Minimis
Rules, by revising the third sentence of
paragraph (a)(1), which specifies using
the license requirements in part 746 for
identifying U.S.-origin controlled
content for de minimis content. This
final rule adds a parenthetical phrase
after part 746 to add the phrase
‘‘excluding U.S.-origin content that
meets the criteria in § 746.8(a)(5).’’
Excluded countries for purposes of
§ 746.8 are identified in new
supplement No. 3 to part 746—
Countries Excluded from Certain Russia
License Requirements, also known as
the Russia Exclusions List. The new
supplement includes three columns,
identifying: (1) The countries for
purposes of the exclusion under
§ 746.8(a)(4) and (5); (2) the scope of the
exclusion; and (3) the Federal Register
document announcing the addition of
such countries to the supplement. This
final rule adds the twenty-seven
countries of the European Union,
Australia, Canada, Japan, New Zealand,
and the United Kingdom, as the first
countries in supplement No. 3 to part
746. The introductory text of the Russia
Exclusions List specifies that exclusions
may be full or partial. If a partial
exclusion applies, the applicable ECCNs
will be described in the Scope column
of list.
5. Licensing Policy for Applications
Required Under Section 746.8
Under new § 746.8(b) (Licensing
policy), applications for the export,
reexport or transfer (in-country) of items
that require a license under new
paragraph (a)(1) and (2) will be
reviewed, with certain limited
exceptions, under a policy of denial.
License applications for certain
categories of exports, reexports, and
transfers (in-country) will be reviewed
on a case-by-case basis to determine
whether the transaction would benefit
the Russian government or defense
sector. These categories are as follows:
Applications related to safety of flight,
maritime safety, to meet humanitarian
needs, in support of government space
cooperation, applications for companies
headquartered in Country Groups A:5
and A:6 to support civil
telecommunications infrastructure, or
involving government-to-government
activities. In addition, applications for
items destined to certain companies
operating in Russia will be reviewed on
a case-by-case basis if the companies
are: (1) Wholly-owned U.S. subsidiaries;
(2) foreign subsidiaries of U.S.
companies that are joint ventures with
other U.S. companies, (3) joint ventures
of U.S. companies with companies
headquartered in Country Group A:5
and A:6 in supplement no. 1 to part 740
countries, (4) wholly-owned
subsidiaries of companies
headquartered in Country Group A:5
and A:6 in supplement no. 1 to part 740
countries, or (5) joint ventures of
companies headquartered in Country
Group A:5 and A:6 with other
companies headquartered in Country
Groups A:5 and A:6. The case-by-case
review policy does not apply to
Russian-headquartered companies. This
final rule also specifies in paragraph (b)
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that license applications required under
paragraph (a)(3) will be reviewed under
a policy of denial in all cases.
6. License Exceptions for Section 746.8
License Requirements
Lastly, under new paragraph (c)
(License Exceptions), this final rule
specifies that certain license exceptions
apply to § 746.8(a)(1) and (2).
Specifically, the license exceptions that
apply are: Certain sections of License
Exception TMP for items for use by the
news media, § 740.9(a)(9); License
Exception GOV, § 740.11(b); License
Exception TSU for software updates for
civil end users provided those civil end
users are subsidiaries or joint ventures
of companies headquartered in the
United States or a country or countries
from Country Groups A:5 or A:6,
§ 740.13(c); License Exception BAG,
excluding firearms and ammunition
(paragraph (e)), § 740.14; License
Exception AVS, § 740.15 (a) and (b);
License Exception ENC, excluding
Russian ‘‘government end users’’ and
Russian state owned enterprises (SOEs),
§ 740.17; and License Exception CCD,
§ 740.19. This final rule also specifies in
paragraph (c) that no license exceptions
may overcome the license requirements
in paragraph (a)(3) except as specified in
the Entity List entry for a Footnote 3
entity on the Entity List in supplement
no. 4 to part 744 of the EAR, which is
consistent with the fact that entities on
the Entity List are generally not eligible
for license exceptions.
B. New Russia and Russia-MEU FDP
Rules
In § 734.9 (Foreign-Direct Product
(FDP) Rules), this final rule adds two
new Foreign-Direct Product (FDP) rules
as part of the new Russia sanctions. The
first rule targets Russia as a destination,
and the second targets Russian ‘military
end users.’
1. Addition of Russia FDP Rule
Through the Russia FDP rule set out
in new paragraph (f) of § 734.9 of the
EAR, this rule establishes that a foreign-
produced item located outside the
United States is subject to the EAR if it
meets both the product scope in
paragraph (f)(1) of this section and the
destination scope in paragraph (f)(2).
License requirements, license review
policy, and license exceptions
applicable to the foreign-produced items
that are subject to the EAR pursuant to
this paragraph (f) are identified in
§ 746.8, described above. Product scope
for the Russia FDP rule is defined in
paragraph (f)(1)(i) (‘‘Direct product’’ of
‘‘technology’’ or ‘‘software’’) and
paragraph (f)(1)(ii) (‘‘Direct product’’ of
a complete plant or major component of
a plant).
The criteria in paragraph (f)(1)(i)
applies to a foreign-produced item that
is not designated EAR99 and that is the
‘‘direct product’’ of U.S.-origin
‘‘technology’’ or ‘‘software’’ specified in
any ECCN in product groups D or E in
Categories 3, 4, 5, 6, 7, 8, or 9 of the
CCL. The criteria in paragraph (f)(1)(ii)
applies to a foreign-produced item that
is not designated EAR99 and is
produced by any plant or ‘major
component’ of a plant that itself is a
‘‘direct product’’ of U.S.-origin
‘‘technology’’ or U.S.-origin ‘‘software’’
and specified in any ECCN in product
groups D or E in Categories 3, 4, 5, 6,
7, 8, or 9 of the CCL. This is an
expansive list of ‘‘technology’’ and
‘‘software,’’ which will result in many
additional foreign-produced items being
considered ‘‘subject to the EAR’’
compared to the other existing FDP
rules that applied to Russia prior to the
publication of this rule. The additional
foreign-produced items that will be
‘‘subject to the EAR’’ will be subject to
the new license requirements imposed
through this rule under the Sanctions
against Russia (new § 746.8), as
described above.
For a foreign-produced item to be
subject to the EAR under the Russia FDP
rule, the criteria in new § 734.9(f)(2)
(Destination scope of the Russia FDP
rule) must also be met. New paragraph
(f)(2) specifies that a foreign-produced
item meets the destination scope of the
Russia FDP rule if there is ‘‘knowledge’’
that the foreign-produced item is
destined to Russia, or will be
incorporated into, or used in the
‘‘production’’ or ‘‘development’’ of any
‘‘part,’’ ‘‘component,’’ or ‘‘equipment’’
not designated EAR99 and produced in
or destined to Russia.
2. Addition of Russia-Military End User
(Russia-MEU) FDP Rule
The Russia-MEU FDP rule set forth in
new paragraph (g) targets Russian
‘military end users’ that, as described
below, previously were on the MEU List
and are being removed from the MEU
List and added to the Entity List in
Supplement No. 4 to part 744 of the
EAR in this final rule. To address the
significant support that these ‘military
end users’ provide to the Russian
military, a new and more expansive FDP
rule is warranted for these identified
‘military end users’ under the EAR
compared to the FDP rules that apply to
certain destinations under the EAR.
This final rule adds a new paragraph (g)
to impose this new FDP rule targeting
these Russian ‘military end users.’ A
foreign-produced item located outside
the United States is subject to the EAR
if it meets both the product scope in
paragraph (g)(1) of § 734.9 and the
destination scope in paragraph (g)(2).
License requirements, license review
policy, and license exceptions
applicable to the foreign-produced items
that are subject to the EAR pursuant to
paragraph (g), which are now identified
in § 746.8, are described above.
This final rule adds paragraph (g)(1)(i)
(‘‘Direct product’’ of ‘‘technology’’ or
‘‘software’’) and paragraph (g)(1)(ii)
(‘‘Direct product’’ of a complete plant or
major component of a plant) to define
the product scope for the Russia-MEU
FDP rule. The criteria in paragraph
(g)(1)(i) extends to the ‘‘direct product’’
of ‘‘technology’’ or ‘‘software’’ subject to
the EAR and specified in any ECCN in
product groups D or E in any category
of the CCL. Paragraph (g)(1)(ii) applies
to a foreign-produced item that is
produced by a plant or ‘major
component’ of a plant that itself is a
‘‘direct product’’ of U.S.-origin
‘‘technology’’ or U.S.-origin ‘‘software’’
subject to the EAR and specified in any
ECCN in product groups D or E in any
category of the CCL, which is an
expansive list of ‘‘technology’’ and
‘‘software.’’ This will result in many
additional foreign-produced items being
considered ‘‘subject to the EAR’’
compared to the other existing FDP
rules that applied to these Russian
‘military end users’ prior to the
publication of this rule. The additional
foreign-produced items that will be
‘‘subject to the EAR’’ will be subject to
the new license requirements being
imposed as part of the sanctions against
Russia set forth in new § 746.8.
For a foreign-produced item to be
subject to the EAR, the criteria in new
paragraph (g)(2) (End-user scope of the
Russia MEU FDP rule) must be met.
New paragraph (g)(2) specifies that a
foreign-produced item meets the
destination scope of the Russia MEU
FDP rule if there is ‘‘knowledge’’ as
specified in new paragraph (g)(2)(i)
(Activities involving Footnote 3
designated entities) that a foreign-
produced item will be incorporated
into, or will be used in the ‘‘production’’
or ‘‘development’’ of any ‘‘part,’’
‘‘component,’’ or ‘‘equipment’’
produced, purchased, or ordered by any
entity with a footnote 3 designation in
the license requirement column of the
Entity List in supplement No. 4 to part
744 of the EAR.
In a corresponding change, this final
rule adds a new footnote 3 to the Entity
List for each of the Russian ‘military end
users’ that are being removed from the
MEU List and added to the Entity list as
described below. The new footnote 3 to
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the Entity List is a key part of the
criteria for the Russia-MEU FDP rule
and will include a cross reference back
to §§ 734.9(g), 746.8, and 744.21. With
the changes described below, forty-five
entities on the Entity List now have a
footnote 3 designation, as well as two
additional entities being added to the
Entity List and two existing entities that
are being revised in this rule that will
also have the footnote 3 designation, for
a total of forty-nine entities with a
footnote 3 designation. As specified in
new paragraph (g)(2) of § 734.9, any
entity with a footnote 3 designation in
the license requirement column of the
Entity List is a party to any transaction
involving the foreign-produced item,
e.g., as a ‘‘purchaser,’’ ‘‘intermediate
consignee,’’ ‘‘ultimate consignee,’’ or
‘‘end-user.’’ A new Note 3 to paragraph
(g) specifies that for purposes of
paragraph (g), a ‘military end user’ is
any entity listed on the Entity List under
Russia with a footnote 3 designation.
C. Conforming Changes
Based on the foregoing changes to the
EAR, this final rule also makes certain
conforming changes to the Russia
industry sector sanctions in
§ 746.5(a)(1); the Commerce Country
Chart in supplement No. 1 to part 738;
the Consumer Communication Devices
license exceptions in § 740.19; and
certain licensing review policies in part
742. In addition, this rule makes a
correction to the Entity List FDP rule in
§ 734.9(e).
1. Russia Industry Sector Sanctions
Changes
Under § 746.5 (Russian industry
sector sanctions), this final rule revises
paragraph (a)(1) (General prohibition) to
make clarifying edits and add a cross
reference to new § 746.8. As this
paragraph specifies that there are other
provisions of the EAR that apply to
exports, reexports, and transfers (in-
country) to Russia, a reference to the
new sanctions against Russia in § 746.8
is needed to remind exporters,
reexporters, and transferors to also look
at § 746.8 when determining whether a
license is required. This final rule also
revises the text to remove the reference
to Section 6 of the Export
Administration Act of 1979 as this
reference is outdated with the passage of
the Export Control Reform Act of 2018
(ECRA), and a statutory reference is not
necessary. This final rule also corrects
the web address referenced in
supplement No. 2 to part 746—Russian
Industry Sector Sanction List to use the
current web address being used by the
U.S. Census Bureau regarding Schedule
B information.
2. Commerce Country Chart Change
In supplement No. 1 to part 738—
Commerce Country Chart, as a
conforming change to the addition of
new § 746.8, this final rule revises
footnote 6 to add a reference to § 746.8,
so exporters, reexporters, and
transferors are aware of the need to also
review license requirements in § 746.8
for items listed in any ECCN in
Categories 3, 4, 5, 6, 7, 8, or 9 of the
CCL.
3. License Exception CCD Changes
This final rule amends License
Exception CCD (§ 740.19), which was
previously limited to Cuba, by adding
Russia as an additional eligible
destination. While § 740.1(a) specifies
that any license exception authorizing
reexports also authorizes in-country
transfers, provided the terms and
conditions for reexports under that
license exception are met, this final rule
revises § 740.19 to add explicit
references to transfers (in-country). BIS
is making this clarification because new
§ 746.8 imposes controls on transfers
(in-country) within Russia.
In § 740.19(a) (Authorizations), this
rule adds Russia and a reference to
transfers (in-country). Under the
introductory text of paragraph (b)
(Eligible commodities and software),
this rule adds Russia and a reference to
transfers (in-country) and removes an
outdated reference to Sudan. Finally,
under paragraph (c)(1) (Organizations),
this final rule revises paragraph (c)(1)(i),
which identifies eligible end users for
License Exception CCD, to add Russia
and a reference to transfers (in-country).
The revision to paragraph (c)(1)(i)
specifies that License Exception CCD is
limited to the export, reexport, or
transfer (in-country) of eligible
commodities and software to and for the
use of independent non-governmental
organizations in Russia. This final rule
further adds the Russian Government to
the exclusions under paragraph (c)(1)(ii)
and adds a new paragraph (c)(1)(iii)
(Ineligible Russian Government
Officials) to exclude the specified
officials from receiving commodities
and software under License Exception
CCD. Only the end users named as
eligible in paragraph (c) may receive the
commodities and software eligible
under License Exception CCD. This rule
also amends paragraph (c)(2) as a
correction and clarification, to state that
License Exception CCD authorizes
exports, reexports and transfers (in-
country) to individuals.
When License Exception CCD was
initially added to the EAR in 2009, the
text of this paragraph only referenced
exports. However, a reading of
paragraph (a) of the license exception
and the preamble to the rule that added
the license exception to the EAR
indicates that License Exception CCD
was intended to authorize both exports
and reexports to individuals. See 74 FR
45985 at 45987 (9/8/2009). The addition
of transfer (in-country) will clarify that
the authorization applies not only to
reexports, but also to transfers (in-
country).
4. Part 742 (Control Policy—CCL Based
Controls) Changes
In part 742, as conforming changes to
the license review policy of denial
added under paragraph (b) to new
§ 746.8, this final rule makes changes to
license review policies in five sections:
742.2 (Proliferation of chemical and
biological weapons), 742.3 (Nuclear
nonproliferation), 742.4 (National
security), 742.5 (Missile technology),
and 742.6 (Regional stability).
Under § 742.2, this final rule revises
the second sentence of paragraph (b)(4)
to change the license review policy from
presumption of denial to policy of
denial. This final rule adds two
additional sentences to clarify that
certain items, such as items to Russia in
support of U.S.-Russia civil space
cooperation activities, are reviewed on a
case-by-case basis as specified under
§ 746.8(b).
In both §§ 742.3 and 742.5, this final
rule revises the second sentence of
paragraph (b)(4) to change the license
review policy from presumption of
denial to policy of denial. For these
sections, this final rule also revises the
third sentence to remove the reference
to commercial space launches from the
case-by-case license review policy, and
adds a cross reference to the license
review policy under § 746.8(b).
Under § 742.4, this final rule revises
the third sentence of paragraph (b)(7)(i)
to remove the reference to Russia
because the license review policy set
forth in the paragraph will no longer
apply to Russia. This final rule also
adds a new paragraph (b)(9), which
states that all applications for Russia
will be reviewed in accordance with the
licensing policy set forth in § 746.8(b).
Under § 742.6, this final rule revises
paragraph (b)(8) to remove the reference
to Russia because the license review
policy set forth in the paragraph will no
longer apply to Russia. This final rule
also adds a new paragraph (b)(9),
specifying that all applications for
Russia will be reviewed in accordance
with the licensing policy set forth in
§ 746.8(b). Finally, to establish that
license applications for export, reexport
or transfer (in-country) to or within
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Russia will also be reviewed in
accordance with the foreign policy
interest of promoting the observance of
human rights throughout the world and
consistent with United States arms
embargo policies in § 126.1 of the ITAR
(22 CFR 126.1), this final rule adds text
to new paragraph (b)(9) to carry over
certain portions of the preexisting
license review policy for Russia under
paragraph (b)(8).
5. Entity List FDP Rule Correction
On February 2, 2022, BIS published a
rule in the Federal Register entitled
‘‘Foreign-Direct Product Rules:
Organization, Clarification, and
Correction’’ (87 FR 6022), which
contained an error. In § 734.9(e), BIS
unintentionally omitted the term ‘‘U.S.-
origin’’ in the phrase ‘‘ ‘‘direct product’’
of ‘‘technology’’ or ‘‘software’’ subject to
the EAR.’’ With this final rule, BIS fixes
that error by reinserting ‘‘U.S.-origin’’ in
‘‘ ‘‘direct product’’ of ‘‘U.S.-origin’’
‘‘technology’’ or ‘‘U.S.-origin’’
‘‘software’’.’’ Lastly, as clarification for
purposes of the new Russia-Military
End User FDP rule that this rule adds to
§ 734.9(g), as described above, BIS did
not intend to include ‘‘U.S.-origin’’ for
purposes of paragraph (g)(1)(i), but did
intend its inclusion in paragraph
(g)(1)(ii), as well as in new paragraphs
(f)(1)(i) and (ii) for the Russia FDP rule.
This final rule, thus, makes clarifying
revisions to § 734.9.
D. Changes to ‘Military End Use’ and
‘End User’ Controls for Russia
This final rule revises the scope of the
‘military end use’ and ‘military end
user’ controls under § 744.21 of the EAR
to reflect the expanded controls for
Russia, which, with the publication of
this final rule, apply to all items
‘‘subject to the EAR’’ instead of to the
narrower subset of items identified in
supplement no. 2 to part 744. As a result
of the expanded controls for Russia for
‘military end users’ and ‘military end
uses,’ BIS is revising the Entity List in
supplement No. 4 to part 744 and the
Military End-User (MEU) List in
supplement no. 7 to the same part to
make conforming changes. Accordingly,
this final rule revises § 744.21
paragraphs as follows to reflect the
expanded ‘military end use’ and
‘military end user’ controls for Russia:
In paragraph (a), this final rule revises
the first sentence to remove Russia from
the part of the sentence that specifies
the prohibition applies to the countries
listed. This final rule further revises that
first sentence to add, after Venezuela,
the phrase ‘‘or any item subject to the
EAR except for food or medicine
designated as EAR99, or ECCN 5A992.c
and 5D992.c unless for Russian
‘‘government end users’’ and Russian
state-owned enterprises (SoEs) to
Russia’’ to specify that the prohibition is
broader for Russia than it is for the other
countries subject to the requirements of
§ 744.21.
BIS is revising paragraph (b)(1)
(‘Military End-User’ (MEU) List) to
provide guidance for entities on the
MEU List and for Russian entities
placed on the Entity List based on
§ 744.21(b). Because the prior
requirements of the MEU List were
limited to items identified in
supplement no. 2 to part 744 and the
Russia-MEU restrictions now apply to
all items subject to the EAR as a
consequence of the publication of this
rule, BIS is removing Russian entities
that were listed on the MEU List prior
to this rule and placing them instead on
the Entity List. This change is consistent
with the regulatory construct for these
two proscribed persons lists under the
EAR (i.e., the MEU List restrictions
apply to items identified in supplement
no. 2 to part 744 and the Entity List
restrictions, in most cases, apply to all
items subject to the EAR). This final rule
removes the references to Russia in the
context of the MEU List and specifies
that such entities may be added to
supplement No. 4 of part 744—the
Entity List—and are subject to license
requirements that apply to all items
‘‘subject to the EAR’’ except for food or
medicine designated as EAR99, or ECCN
5A992.c and 5D992.c unless for Russian
‘‘government end users’’ and Russian
state-owned enterprises (SoEs).
As conforming changes regarding the
End-User Review Committee (ERC)
processes for the MEU List, this final
rule revises paragraph (b)(1)(i) (End-
User Review Committee (ERC)) to add
references to the Entity List when the
MEU List is referenced for the
procedures in supplement No. 5 to part
744—Procedures for End-User Review
Committee Entity List and ‘Military End
User’ (MEU) List Decisions. This change
is made to clarify that the ERC
procedure for adding entities to the
MEU List also apply to additions,
modifications and removals from the
Entity List for entities added based on
§ 744.21 of the EAR.
Under paragraph (b)(1)(ii) (License
requirements for parties to the
transaction), this final rule revises the
paragraph to clarify that the license
requirements for Burma, Cambodia, the
People’s Republic of China, and
Venezuela continue to apply for exports,
reexports, and transfers (in-country) of
any item specified in supplement no. 2
to part 744 when an entity included on
the MEU List or meeting the definition
of ‘military end-user’ as defined in
§ 744.21(g) is a party to the transaction
as described in § 748.5(c) through (f) of
the EAR. This final rule also revises
paragraph (b)(1)(ii) to add a sentence to
clarify that, for purposes of Russia, a
license requirement applies to all items
subject to the EAR for entities listed in
supplement No. 4 to part 744 (the Entity
List) pursuant to § 744.21 when such an
entity is a party to the transaction as
described in § 748.5(c) through (f) of the
EAR. These changes are necessary
because, with the publication of this
final rule, the license requirements for
Russia will now be broader than for the
other four countries.
Under paragraph (b)(2) (Requests for
removal from or modification of
‘Military End User’ List (MEU)), this
final rule revises the heading to add a
reference to the Entity List. This final
rule also adds two more references to
the Entity List in this paragraph to
specify that the process for requesting
removal or modification is the same for
entities listed on the MEU List or the
Entity List on the basis of § 744.21 of the
EAR.
Under paragraph (e) (License review
standards), this final rule revises the
existing license review policy in
paragraph (e)(1) to make it specific to
Burma, Cambodia, the People’s
Republic of China (China), and
Venezuela. This final rule adds a new
sentence to paragraph (e)(1) to specify
that the license review policy for
application to or within Russia for the
license requirements described in
paragraph (a) will be a policy of denial.
Under paragraph (g) (‘Military end
user’), the final rule makes a correction
to add back the parenthetical phrase
‘‘(excluding those described in
§ 744.22(f)(2) of the EAR)’’ after the term
government intelligence or
reconnaissance organizations. This text
was inadvertently removed from the
EAR in a December 9, 2021 (86 FR
70018) final rule.
BIS estimates these changes to
§ 744.21 will result in an additional 75
license applications being submitted to
BIS annually.
E. Military End-User (MEU) List and
Entity List Changes for Russian Entities
Under § 744.11(b) (Criteria for
revising the Entity List), entities for
which there is reasonable cause to
believe, based on specific and
articulable facts, that the entities have
been involved, are involved, or pose a
significant risk of being or becoming
involved in activities that are contrary
to the national security or foreign policy
interests of the United States, and those
acting on behalf of such entities, may be
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added to the Entity List. Paragraphs
(b)(1) through (5) of § 744.11 provide an
illustrative list of activities that could be
considered contrary to the national
security or foreign policy interests of the
United States. The Entity List in
supplement no. 4 to part 744 identifies
the entities so designated. The EAR
impose additional license requirements
on, and limit the availability of most
license exceptions for, exports,
reexports, and transfers (in-country)
when an entity that is listed on the
Entity List is a party to the transaction
as described in § 748.5(c) through (f) of
the EAR. The license review policy for
each listed entity is identified in the
‘‘License Review Policy’’ column on the
Entity List, and the impact on the
availability of license exceptions is
described in the relevant Federal
Register document adding entities to the
Entity List. BIS places entities on the
Entity List pursuant to part 744 (Control
Policy: End-User and End-Use Based)
and part 746 (Embargoes and Other
Special Controls) of the EAR.
The MEU List in supplement no. 7 to
part 744 identifies entities that have
been determined by the End-User
Review Committee (ERC) to be ‘military
end users’ pursuant to § 744.21. That
section imposes additional license
requirements on, and limits the
availability of most license exceptions
for, exports, reexports, and transfers (in-
country) when an entity listed on the
MEU List is a party to the transaction as
described in § 748.5(c) through (f) of the
EAR, as specified in supplement no. 7
to part 744 and in § 744.21. Entities are
listed on the MEU List under the
destinations of Burma, Cambodia,
China, or Venezuela. The license review
policy for each listed entity is identified
in the introductory text of the MEU List
and in § 744.21(e). The MEU List’s
introductory text and § 744.21 also
specify the scope of the license
requirements and limitations on the use
of EAR license exceptions.
The ERC, composed of representatives
of the Departments of Commerce
(Chair), State, Defense, Energy and,
where appropriate, the Treasury, makes
all decisions regarding additions to,
removals from, or other modifications to
the Entity List and the MEU List. The
ERC makes all decisions to add an entry
to the Entity List or MEU List by
majority vote and all decisions to
remove or modify an entry by
unanimous vote. Decisions on Entity or
MEU List entries may also be made by
higher-level officials of agencies
represented on the ERC.
1. Additions to the Entity List
This rule implements the decision of
the Departments represented on the ERC
to add forty-seven entities to the Entity
List, consisting of the forty-five entities
being moved from the MEU List to the
Entity List and an additional two
entities that are newly listed in the EAR.
The agencies represented on the ERC
made the decision to move the forty-five
entities identified below from the MEU
List to the Entity List pursuant to the
standards set forth in §§ 744.11(b) and
744.21(b) (including the revisions made
in this final rule to the scope of the
latter section) of the EAR. Under the
circumstances of the Russia invasion of
the Ukraine, there is a greater national
security and foreign policy threat posed
by entities that have previously been
found to be supporting ‘military end
uses’ in Russia. The ERC used the same
standards set forth in §§ 744.11(b) and
744.21(b) to approve the additional two
entities being added to the Entity List.
These forty-seven entities are ‘military
end users’ under the EAR. The license
requirements that will apply to them as
a consequence of their addition to the
Entity List will further limit their ability
to obtain items subject to the EAR or
obtain the benefit of technology or
software subject to the EAR when
supporting military activities outside of
Russia in a manner contrary to U.S.
national security or foreign policy
interests.
One of the forty-five entities being
moved from the MEU List to the Entity
List, described further below, is the
Ministry of Defence of the Russian
Federation, including the Armed Forces
of Russia and all operating units
wherever located. This entity was listed
as the Ministry of Defence RF on the
MEU List, but will be listed on the
Entity List under its full name, Ministry
of Defence of the Russian Federation, in
this final rule. The entry this rule adds
for the Ministry of Defence of the
Russian Federation includes the
national armed services (army, navy,
marine, air force, or coast guard), as well
as the national guard and national
police, government intelligence or
reconnaissance organizations of the
Russian Federation. In addition, this
entry restricts exports, reexports and
transfers (in-country) to the national
armed services (army, navy, marine, air
force, or coast guard), as well as the
national guard and national police,
government intelligence or
reconnaissance organizations of Russia
wherever located worldwide.
As a result of the changes to § 744.21
described in this final rule, the license
requirements for ‘military end users’ in
Russia, now apply to all items ‘‘subject
to the EAR,’’ except for food or
medicine designated as EAR99, or ECCN
5A992.c and 5D992.c unless for Russian
‘‘government end users’’ and Russian
state-owned enterprises (SoEs).
Accordingly, the agencies represented
on the ERC decided to add forty-five
entities to the Entity List. As part of this
ERC review effort, the ERC also
determined that the additional two
entities should be added to the Entity
List because they are ‘military end
users.’ The license requirements of the
MEU List are limited to items identified
in supplement no. 2 to part 744.
Therefore, the agencies represented on
the ERC determined that the MEU List
was no longer the appropriate
supplement of the EAR in which to list
these forty-five ‘military end users’ in
Russia and that, for the additional two
entities being added, the public would
benefit from their identification on the
Entity List as ‘military end users.’
The forty-five entities being moved
from the MEU List to the Entity List are:
Admiralty Shipyard JSC; Aleksandrov
Scientific Research Technological
Institute NITI; Argut OOO;
Communication Center of the Ministry
of Defence; Federal Research Center
Boreskov Institute of Catalysis; Federal
State Budgetary Enterprise of the
Administration of the President of
Russia; Federal State Budgetary
Enterprise Special Flight Unit Rossiya of
the Administration of the President of
Russia; Federal State Unitary Enterprise
Dukhov Automatics Research Institute
(VNIIA); Foreign Intelligence Service
(SVR); Forensic Center of Nizhniy
Novgorod Region Main Directorate of
the Ministry of Interior Affairs; Irkut
Corporation; Irkut Research and
Production Corporation Public Joint
Stock Company; Joint Stock Company
Scientific Research Institute of
Computing Machinery; JSC Central
Research Institute of Machine Building
(JSC TsNIIMash); JSC Kazan Helicopter
Plant Repair Service; JSC Rocket and
Space Centre—Progress; Kamensk-
Uralsky Metallurgical Works J.S. Co.;
Kazan Helicopter Plant PJSC;
Komsomolsk-na-Amur Aviation
Production Organization (KNAAPO);
Ministry of Defence of the Russian
Federation; Moscow Institute of Physics
and Technology; NPO High Precision
Systems JSC; NPO Splav JSC;
Oboronprom OJSC; PJSC Beriev Aircraft
Company; PJSC Irkut Corporation; PJSC
Kazan Helicopters; POLYUS Research
Institute of M.F. Stelmakh Joint Stock
Company; Promtech-Dubna, JSC; Public
Joint Stock Company United Aircraft
Corporation; Radiotechnical and
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Information Systems (RTI) Concern;
Rapart Services LLC; Rosoboronexport
OJSC (ROE); Rostec (Russian
Technologies State Corporation);
Rostekh—Azimuth; Russian Aircraft
Corporation MiG; Russian Helicopters
JSC; Sukhoi Aviation JSC; Sukhoi Civil
Aircraft; Tactical Missiles Corporation
JSC; Tupolev JSC; UEC-Saturn; United
Aircraft Corporation; United Engine
Corporation; and United Instrument
Manufacturing Corporation.
The ERC decided to add two new
entities to the Entity List: The
International Center for Quantum Optics
and Quantum Technologies LLC, and SP
Kvant. Both are being added, under the
destination of Russia, to the Entity List
for acquiring and attempting to acquire
U.S.-origin items in support of nuclear
explosive activities, unsafeguarded
nuclear activities, and safeguarded and
unsafeguarded nuclear fuel-cycle
activities for Russia. The ERC
determined that these activities are
contrary to the national security and
foreign policy interests of the United
States under § 744.11(b) of the EAR.
These two entities are considered
‘military end-users’ for purposes of
§ 744.21(b).
Pursuant to §§ 744.11(b) and 744.21(b)
of the EAR, the ERC determined that the
conduct of the above-described forty-
seven entities raises sufficient concerns
that prior review, via the imposition of
a license requirement for exports,
reexports, or transfers (in-country), of all
items subject to the EAR, except for food
or medicine designated as EAR99
involving these forty-seven entities is
appropriate. This rule also excludes
ECCN 5A992.c and 5D992.c from the
license requirement involving eight of
the entities being added that are not
Russian ‘‘government end users’’ and
Russian state-owned enterprises (SoEs).
The ERC also determined that the
possible issuance of license denials or
the possible imposition of license
conditions on shipments to these
entities will enhance BIS’s ability to
prevent violations of the EAR or
otherwise protect U.S. national security
or foreign policy interests.
For the forty-seven entities added to
the Entity List in this final rule, BIS
imposes a license requirement that
applies to all items subject to the EAR.
BIS imposes a license review policy of
denial for these forty-seven entities. In
addition, no license exceptions are
available for exports, reexports, or
transfers (in-country) where the entities
added to the Entity List in this rule are
parties to the transaction as described in
§ 748.5(c) through (f), with one
exception. The United States
Government authorization under
License Exception GOV (§ 740.11(b)(2)
and (e)) is available for two entities
being added to the Entity List: JSC
Central Research Institute of Machine
Building (JSC TsNIIMash) and JSC
Rocket and Space Centre—Progress.
Also as described above under the
description of § 734.9, this final rule
adds new Footnote 3 to the Entity List
for each of the forty-five Russian
‘military end users’ that are being
moved from the MEU List to the Entity
list, as well as to the additional two
entities added to the Entity List. New
Entity List footnote 3 is part of the
criteria for Russia-MEU FDP rule and
will include a cross reference back to
§§ 734.9(g) and 746.8. More entities may
be added to Footnote 3 in the future.
For the reasons described above, this
final rule adds the following forty-seven
entities to the Entity List. The two new
entities added to the Entity List that
were not previously on the MEU List are
designated with an asterisk:
RUSSIA
Admiralty Shipyard JSC;
Aleksandrov Scientific Research
Technological Institute NITI;
Argut OOO;
Communication Center of the
Ministry of Defence;
Federal Research Center Boreskov
Institute of Catalysis;
Federal State Budgetary Enterprise of
the Administration of the President of
Russia;
Federal State Budgetary Enterprise
Special Flight Unit Rossiya of the
Administration of the President of
Russia;
Federal State Unitary Enterprise
Dukhov Automatics Research Institute
(VNIIA);
Foreign Intelligence Service (SVR);
Forensic Center of Nizhniy Novgorod
Region Main Directorate of the
Ministry of Interior Affairs;
*International Center for Quantum
Optics and Quantum Technologies
LLC;
Irkut Corporation;
Irkut Research and Production
Corporation Public Joint Stock
Company;
Joint Stock Company Scientific
Research Institute of Computing
Machinery;
JSC Central Research Institute of
Machine Building (JSC TsNIIMash);
JSC Kazan Helicopter Plant Repair
Service;
JSC Rocket and Space Centre—
Progress;
Kamensk-Uralsky Metallurgical
Works J.S. Co.;
Kazan Helicopter Plant PJSC;
Komsomolsk-na-Amur Aviation
Production Organization (KNAAPO);
Ministry of Defence of the Russian
Federation including the national
armed services (army, navy, marine,
air force, or coast guard), as well as
the national guard and national
police, government intelligence or
reconnaissance organizations of the
Russian Federation;
Moscow Institute of Physics and
Technology;
NPO High Precision Systems JSC;
NPO Splav JSC;
Oboronprom OJSC;
PJSC Beriev Aircraft Company;
PJSC Irkut Corporation;
PJSC Kazan Helicopters;
POLYUS Research Institute of M.F.
Stelmakh Joint Stock Company;
Promtech-Dubna, JSC;
Public Joint Stock Company United
Aircraft Corporation;
Radiotechnical and Information
Systems (RTI) Concern;
Rapart Services LLC;
Rosoboronexport OJSC (ROE);
Rostec (Russian Technologies State
Corporation);
Rostekh—Azimuth;
Russian Aircraft Corporation MiG;
Russian Helicopters JSC;
*SP Kvant;
Sukhoi Aviation JSC;
Sukhoi Civil Aircraft;
Tactical Missiles Corporation JSC;
Tupolev JSC;
UEC-Saturn;
United Aircraft Corporation;
United Engine Corporation; and
United Instrument Manufacturing
Corporation.
The acronym ‘‘a.k.a.,’’ which is an
abbreviation of ‘‘also known as,’’ is used
in entries on the Entity List to identify
aliases, thereby assisting exporters,
reexporters, and transferors in
identifying entities on the Entity List.
2. Revision to the Entity List
This rule implements a modification
to two existing entries for ‘‘Federal
Security Service (FSB)’’ and ‘‘Main
Intelligence Directorate’’ that were both
first added to the Entity List on January
4, 2017 (82 FR 724). Specifically, this
rule modifies the entry for these entities
by adding a Footnote 3 designation as
described above because these existing
entities have also been determined by
the ERC to be ‘military end users.’
3. Removals From the MEU List
This rule removes the forty-five
entities located in Russia that are
described above from the MEU List.
These forty-five entities were added to
the MEU List in three final rules. One
entry, for JSC Kazan Helicopter, was
added to the MEU List on July 12, 2021
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(86 FR 36509). One entry, for Moscow
Institute of Physics and Technology,
was added to the MEU List on
November 26, 2021 (86 FR 67323). The
remaining forty-three entries were
added to the MEU List on December 23,
2020 (85 FR 83799). As described above,
the ERC determined to remove these
forty-five entries from the MEU List and
add them to the Entity List to reflect the
new scope of the license requirements
for military end users in Russia
pursuant to § 744.21, which will now
apply to all items ‘‘subject to the EAR’’
except for food or medicine designated
as EAR99, or ECCN 5A992.c and
5D992.c unless for Russian ‘‘government
end users’’ and Russian state-owned
enterprises (SoEs). The listing of entities
added to the Entity List, above, without
an asterisk is identical to the list of
entities being removed from the MEU
List.
F. Comprehensive Export Restrictions
for the Covered Regions of Ukraine;
Conforming Revisions to Crimea Region
of Ukraine Provisions
1. Background on Need for These
Changes
On February 21, 2022, President
Joseph Biden issued Executive Order
(E.O.) 14065, finding that the Russian
Federation (Russia)’s ‘‘purported
recognition of the so-called Donetsk
People’s Republic (DNR) or Luhansk
People’s Republic (LNR) regions of
Ukraine contradicts Russia’s
commitments under the Minsk
agreements and further threatens the
peace, stability, sovereignty, and
territorial integrity of Ukraine, and
thereby constitutes an unusual and
extraordinary threat to the national
security and foreign policy of the United
States.’’ E.O. 14065 builds upon and
expands the scope of the national
emergency declared by President Barack
Obama in E.O. 13660 of March 6, 2014
with respect to Russia’s actions
involving Ukraine. Subsequent E.O.s,
including E.O. 13661 of March 16, 2014,
E.O. 13662 of March 20, 2014, and E.O.
13685 of December 19, 2014, either
expanded further or otherwise took
additional steps under President
Obama’s declaration of national
emergency to address Russia’s
destabilizing conduct.
Section 10 of E.O. 14065 directs all
executive departments and agencies of
the United States to take all appropriate
measures within their authority to
implement the E.O. Section One of E.O.
14065 prohibits ‘‘the exportation,
reexportation, sale, or supply, directly
or indirectly, from the United States, or
by a United States person, wherever
located, of any goods, services, or
technology to the Covered Regions[.]’’
Consistent with and to implement this
prohibition, BIS is expanding the
restrictions in § 746.6 of the EAR, to
apply to export, reexport, and in-
country transfer transactions involving
the so-called DNR and LNR regions of
Ukraine (collectively, the Covered
Regions). BIS initially promulgated the
§ 746.6 restrictions consistent with and
to implement E.O. 13685 of December
19, 2014 (79 FR 77357), to which E.O.
14065 is similar in scope, pursuant to
which President Obama issued an
export prohibition related to the Crimea
region of the Ukraine, to address the
Russian occupation of that region in
2014. Consistent with and to implement
this prohibition, BIS imposed new
license requirements with respect to
certain export, reexport, and in-country
transfer transactions involving the
Crimea region of Ukraine. (80 FR 4778,
Jan. 29, 2015)
In this rule BIS amends the EAR by
imposing a license requirement for the
export and reexport to the Covered
Regions of Ukraine, and the transfer
within the Covered Regions of Ukraine,
of all items subject to the EAR, other
than food and medicine designated as
EAR99 and certain software for internet-
based personal communications. For
purposes of this rule, and consistent
with E.O. 13685 and E.O. 14065, the
term ‘Covered Regions of Ukraine’
includes the land territory in the DNR
and LNR regions, as well as any
maritime areas over which sovereignty,
sovereign rights, or jurisdiction is
claimed based on occupation of
(Crimea), or purported sovereignty (DNR
and LNR) over, those land territories. In
addition to these substantive changes to
§ 746.6 of the EAR, BIS is making
organizational and related technical
edits to account for these restrictions on
the Covered Regions of Ukraine and to
simplify § 746.6 and facilitate
compliance with the provision’s
requirements.
This rule establishes a policy of
denial for the review of applications
involving all such exports or reexports
to the Covered Regions of Ukraine and
transfers within the Covered Regions of
Ukraine, except with respect to items
not exempt from the license
requirement but authorized under the
Department of the Treasury’s Office of
Foreign Assets Control (OFAC) Ukraine
related General Licenses (discussed in
greater detail in the next paragraph),
which BIS will review on a case-by-case
basis. Certain license exceptions are
available for exports or reexports to the
Covered Regions of Ukraine or transfers
within the Covered Regions of Ukraine,
specifically, the same license exceptions
currently available under § 746.6 of the
EAR to the Crimea region of Ukraine.
As stated above, license applications
for exports, reexports or transfers
authorized under OFAC General
Licenses will be reviewed on a case-by-
case basis. In conjunction with the
issuance of E.O. 14065, OFAC issued six
General Licenses (Ukraine General
License numbers 17–22) to ensure that
humanitarian and other related
activities can continue in these regions.
These General Licenses allow a short-
term wind down of activities, as well as
for the export to the regions of food,
medicine, and medical devices, and
ensure personal remittances can
continue to flow. They also allow
telecommunications and internet
services to remain operational, and mail
services to continue, as well as allow
international organizations to be able to
provide aid to the people in the Covered
Regions of Ukraine.
This final rule includes a savings
clause as described below. If an export,
reexport or transfer (in-country) does
not qualify for the savings clause
described below but falls within the
scope of OFAC’s Ukraine related
General Licenses, an applicant may note
this fact in its BIS license application
either under block 24 or in a separate
attachment. BIS will consider this fact
as part of the license review process.
As a reminder, the Donetsk People’s
Republic and Luhansk People’s
Republic are listed on the Entity List. A
license applies for the export, reexport,
and transfer (in-country) of all items
subject to the EAR that are destined for
these two entities. See 79 FR 42452 (July
22, 2014) (‘‘Donetsk People’s Republic
and Luhansk People’s Republic are both
separatist organizations that operate in
eastern Ukraine.’’).
2. Revisions to the EAR for the Covered
Regions of Ukraine; Conforming
Revisions to Crimea Region of Ukraine
Provisions
To implement the changes described
above, this final rule revises § 746.6
(Crimea region of Ukraine and the
Covered Regions of Ukraine) in part 746
(Embargoes and Other Special Controls)
of the EAR. The existing restrictions
regarding Crimea are now located in
paragraph (a)(1), and new paragraph
(a)(2) imposes a license requirement for
exports and reexports to the Covered
Regions of Ukraine, and the transfer
within the Covered Regions of Ukraine,
of all items subject to the EAR, other
than food and medicine designated as
EAR99 and certain software that is
necessary to enable the exchange of
personal communications over the
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internet. Such software must either be
designated EAR99 or classified as mass
market software under Export Control
Classification Number (ECCN) 5D992.c
of the EAR and must be widely available
to the public at no cost to the user. The
license review policy for Crimea is now
located in paragraph (b)(1), and new
paragraph (b)(2) specifies that the
license review policy for the Covered
Regions of Ukraine is a policy of denial,
except for items authorized under
OFAC’s Ukraine related General
Licenses which will be reviewed on a
case-by-case basis.
The amendments to § 746.6 of this
rule do not change the license
requirements or available license
exceptions for the Crimea region of
Ukraine. However, this rule amends the
licensing policy, as set forth in new
paragraph (b), from a presumption of
denial to a policy of denial, to
harmonize the license review policy for
the Crimea region of Ukraine with the
more restrictive policy of denial that
applies to the Covered Regions of
Ukraine given the significant national
security and foreign policy concerns
related to those areas.
Paragraph (c) specifies the license
exceptions that are available to
overcome the license requirements set
forth in this section with respect to
either the Crimea region of Ukraine or
the Covered Regions of Ukraine. No
license exceptions other than those
license exceptions (or paragraphs of
license exceptions) listed in paragraph
(c) are available to overcome the license
requirements of § 746.6 of the EAR. New
paragraph (d) defines the terms ‘Covered
Regions of Ukraine’ and ‘software
necessary to enable the exchange of
personal communications over the
internet’ for purposes of this provision.
The license requirements imposed
under part 746 of the EAR are
independent of the Commerce Control
List (CCL)-based license requirements.
However, this rule revises the cross
reference to § 746.6 by revising footnote
8 to the Commerce Country Chart in
supplement No. 1 to part 738. This
footnote 8 makes persons aware of the
additional part 746 license requirements
under § 746.6 that apply for the ‘Crimea
region of Ukraine and the Covered
Regions of Ukraine.’ When applying for
a license to the Crimea region of
Ukraine or the Covered Regions of
Ukraine, applicants should select
‘Crimea, DNR, and LNR regions’ in the
drop-down menu option under the
country of Ukraine in the Simplified
Network Application Processing System
(SNAP–R).
This final rule, as a conforming
change to the addition of § 746.6 and the
restrictions under paragraph (c), adds
‘the Covered Regions of Ukraine’ to the
general restriction on the use of license
exceptions in § 740.2 of the EAR for
sanctioned countries by revising the
parenthetical phrase ‘‘(Cuba, Iran, North
Korea, Syria, and Crimea region).’’ This
final rule adds ‘the Covered Regions of
Ukraine’ to this parenthetical phrase
because the license requirements under
§ 746.6 apply to all items subject to the
EAR, and the only license exceptions
available to overcome the license
requirement are those specified in
§ 746.6.
In addition to the EAR controls that
this final rule is adding to § 746.6,
exporters, reexporter and transferors
will also be required to ensure that any
transaction with Crimea and ‘the
Covered Regions of Ukraine’ occurs in
accordance with all applicable OFAC
requirements. BIS and OFAC both
exercise licensing jurisdiction for the
Crimea region of Ukraine and for ‘‘the
Covered Regions of Ukraine,’’ so for
most exports, reexports and transfers
(in-country), an authorization will be
required from both BIS and OFAC.
Lastly, this final rule revises the
definition of ‘‘Food’’ in § 772.1 to
include a reference to ‘the Covered
Regions of Ukraine’ along with North
Korea, Syria, and Crimea that are
referenced in the definition. BIS
estimates that these new controls for the
§ 746.6 will result in an additional 20
license applications being submitted to
BIS annually.
G. Russia: Amendments to Supplement
No. 1 to Part 740 of the EAR Consistent
With the ITAR § 126.1
In supplement no. 1 to part 740, this
final rule updates the Country Group
designation for Russia to reflect its
identification by the Department of
State as a country subject to a United
States arms embargo. BIS harmonizes
the arms embargo-related provisions in
the EAR with the Directorate of Defense
Trade Control’s (DDTC’s) regulation of
arms embargoes in § 126.1 of the
International Traffic in Arms
Regulations (ITAR) (22 CFR 126.1,
Prohibited Exports, Imports, and Sales
to or from Certain Countries). ITAR
§ 126.1 includes countries subject to
United Nations Security Council
(UNSC) and U.S. arms embargoes. BIS
primarily implements such controls
through Country Group D:5 ‘‘U.S. Arms
Embargoed Countries,’’ in supplement
no. 1 to part 740 of the EAR. With this
rule, BIS revises Country Group D to
add Russia to Country Group D:5
consistent with the Department of
State’s amendments adding this country
to ITAR § 126.1 on March 18, 2021 (86
FR 14802).
Countries listed in Country Group D:5
are subject to additional restrictions in
the EAR, including with respect to de
minimis U.S. content, license exception
availability, and licensing policy for
certain items. For example, license
applications for the export or reexport of
items classified under 9x515 or ‘‘600
series’’ Export Control Classification
Numbers (ECCNs) to countries in
Country Group D:5 are reviewed
consistent with the policies in § 126.1 of
the ITAR, as provided in paragraph
(b)(1)(ii) of § 742.4 of the EAR.
Savings Clause
For the sanctions against Russia
added under § 746.8(a)(2) and (3),
shipments of items removed from
eligibility for a License Exception or
reexport or transfer (in-country) without
a license (NLR) as a result of this
regulatory action that were en route
aboard a carrier to a port of export,
reexport, or transfer (in-country), on
March 26, 2022, pursuant to actual
orders for reexport, or transfer (in-
country) to or within a foreign
destination, may proceed to that
destination under the previous
eligibility for a License Exception or
reexport or transfer (in-country) without
a license (NLR).
For all other changes being made in
this final rule, shipments of items
removed from eligibility for a License
Exception or export, reexport, or
transfer (in-country) without a license
(NLR) as a result of this regulatory
action that were en route aboard a
carrier to a port of export, reexport, or
transfer (in-country), on February 24,
2022, pursuant to actual orders for
export, reexport, or transfer (in-country)
to or within a foreign destination, may
proceed to that destination under the
previous eligibility for a License
Exception or export, reexport, or
transfer (in-country) without a license
(NLR).
Export Control Reform Act of 2018
On August 13, 2018, the President
signed into law the John S. McCain
National Defense Authorization Act for
Fiscal Year 2019, which included the
Export Control Reform Act of 2018
(ECRA) (codified, as amended, at 50
U.S.C. Sections 4801–4852). ECRA
provides the legal basis for BIS’s
principal authorities and serves as the
authority under which BIS issues this
rule. To the extent it applies to certain
activities that are the subject of this rule,
the Trade Sanctions Reform and Export
Enhancement Act of 2000 (TSRA)
(codified, as amended, at 22 U.S.C.
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Sections 7201–7211) also serves as
authority for this rule. This action also
implements measures pursuant to the
International Emergency Economic
Powers Act, 50 U.S.C. 1701 et seq., and
the emergency expanded upon by
Executive Order 14065 of February 21,
2022.
Rulemaking Requirements
1. This final rule is not a ‘‘significant
regulatory action’’ because it
‘‘pertain[s]’’ to a ‘‘military or foreign
affairs function of the United States’’
under sec. 3(d)(2) of Executive Order
12866.
2. Notwithstanding any other
provision of law, no person is required
to respond to, nor shall any person be
subject to a penalty for failure to comply
with, a collection of information subject
to the requirements of the Paperwork
Reduction Act of 1995 (44 U.S.C. 3501
et seq.) (PRA), unless that collection of
information displays a currently valid
Office of Management and Budget
(OMB) Control Number.
This rule involves the following
OMB-approved collections of
information subject to the PRA: 0694–
0088, ‘‘Multi-Purpose Application,’’
which carries a burden hour estimate of
29.6 minutes for a manual or electronic
submission; 0694–0096 ‘‘Five Year
Records Retention Period,’’ which
carries a burden hour estimate of less
than 1 minute; and 0607–0152
‘‘Automated Export System (AES)
Program,’’ which carries a burden hour
estimate of 3 minutes per electronic
submission. This rule changes the
respondent burden under these control
numbers by increasing the estimated
number of submissions by 2,445.
Specifically, BIS estimates that these
new controls on Russia under the EAR
will result in an increase of 2,445
license applications submitted annually
to BIS. BIS estimates the burden hours
associated with these collections would
increase by 1,247 (i.e., 2,445
applications × 30.6 minutes per
response) for a total estimated cost
increase of $37,410 (i.e., 1,247 hours ×
$30 per hour). The $30 per hour cost
estimate for OMB control number 0694–
0088 is consistent with the salary data
for export compliance specialists
currently available through
glassdoor.com (glassdoor.com estimates
that an export compliance specialist
makes $55,280 annually, which
computes to roughly $26.58 per hour).
This increase is expected to exceed the
existing estimates currently associated
with OMB control numbers 0694–0088,
but not for 0694–0096 and 0607–0152
which have minimal burden increases
as a result of this rule. Consistent with
5 CFR 1320.13, BIS requested
emergency clearance for an increase in
the burden estimate under collection
0694–0088 because of the additional
license requirements imposed by this
rule. OMB has approved the emergency
collection for the increase in the total
number of licenses.
3. This rule does not contain policies
with federalism implications as that
term is defined in Executive Order
13132.
4. Pursuant to section 1762 of the
Export Control Reform Act of 2018 (50
U.S.C. 4821) (ECRA), this action is
exempt from the Administrative
Procedure Act (APA) (5 U.S.C. 553)
requirements for notice of proposed
rulemaking, opportunity for public
participation, and delay in effective
date. While section 1762 of ECRA
provides sufficient authority for such an
exemption, this action is also
independently exempt from these APA
requirements because it involves a
military or foreign affairs function of the
United States (5. U.S.C. 553(a)(1)).
5. Because a notice of proposed
rulemaking and an opportunity for
public comment are not required to be
given for this rule by 5 U.S.C. 553, or
by any other law, the analytical
requirements of the Regulatory
Flexibility Act, 5 U.S.C. 601, et seq., are
not applicable. Accordingly, no
regulatory flexibility analysis is required
and none has been prepared.
List of Subjects
15 CFR Part 734
Administrative practice and
procedure, Exports, Inventions and
patents, Research, Science and
technology.
15 CFR Parts 738 and 772
Exports.
15 CFR Part 740
Administrative practice and
procedure, Exports, Reporting and
recordkeeping requirements.
15 CFR Part 742
Exports, Terrorism.
15 CFR Part 744
Exports, Reporting and recordkeeping
requirements, Terrorism.
15 CFR Part 746
Exports, Reporting and recordkeeping
requirements.
For the reasons stated in the
preamble, parts 734, 738, 740, 742, 744,
746, and 772 of the Export
Administration Regulations (15 CFR
parts 730 through 774) are amended as
follows:
PART 734—SCOPE OF THE EXPORT
ADMINISTRATION REGULATIONS
1. The authority citation for 15 CFR
part 734 continues to read as follows:
Authority: 50 U.S.C. 4801–4852; 50 U.S.C.
4601 et seq.; 50 U.S.C. 1701 et seq.; E.O.
12938, 59 FR 59099, 3 CFR, 1994 Comp., p.
950; E.O. 13020, 61 FR 54079, 3 CFR, 1996
Comp., p. 219; E.O. 13026, 61 FR 58767, 3
CFR, 1996 Comp., p. 228; E.O. 13222, 66 FR
44025, 3 CFR, 2001 Comp., p. 783; E.O.
13637, 78 FR 16129, 3 CFR, 2014 Comp., p.
223; Notice of November 10, 2021, 86 FR
62891 (November 12, 2021).
2. Section 734.9 is amended as
follows:
a. In paragraph (e)(1)(ii), remove the
text ‘‘ ‘‘direct product’’ of ‘‘technology’’
or ‘‘software’’ subject to the EAR’’ and
add, in its place, the text ‘‘ ‘‘direct
product’’ of U.S.-origin ‘‘technology’’ or
‘‘software’’.
b. Add paragraphs (f) and (g).
The additions read as follows:
§ 734.9 Foreign-Direct Product (FDP)
Rules.
* * * * *
(f) Russia FDP rule. A foreign-
produced item is subject to the EAR if
it meets both the product scope in
paragraph (f)(1) of this section and the
destination scope in paragraph (f)(2) of
this section. See § 746.8 of the EAR for
license requirements, license review
policy, and license exceptions
applicable to foreign-produced items
that are subject to the EAR pursuant to
this paragraph (f).
(1) Product scope of Russia FDP rule.
The product scope applies if a foreign-
produced item meets the conditions of
either paragraph (f)(1)(i) or (ii) of this
section.
(i) ‘‘Direct product’’ of ‘‘technology’’
or ‘‘software.’’ A foreign-produced item
meets the product scope of this
paragraph (f)(1)(i) if the foreign-
produced item is not designated EAR99
and is a ‘‘direct product’’ of U.S.-origin
‘‘technology’’ or ‘‘software’’ subject to
the EAR that is specified in any ECCN
in product groups D or E in Categories
3, 4, 5, 6, 7, 8, or 9 of the CCL; or
(ii) ‘‘Direct product’’ of a complete
plant or ‘major component’ of a plant.
A foreign-produced item, meets the
product scope of this paragraph (f)(1)(ii)
if the foreign-produced item is not
designated EAR99 and is produced by
any plant or ‘major component’ of a
plant that is located outside the United
States, when the plant or ‘major
component’ of a plant, whether made in
the United States or a foreign country,
itself is a ‘‘direct product’’ of U.S.-origin
‘‘technology’’ or ‘‘software’’ subject to
the EAR that is specified in any ECCN
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in product groups D or E in Categories
3, 4, 5, 6, 7, 8, or 9 of the CCL.
(2) Destination scope of the Russia
FDP rule. A foreign-produced item
meets the destination scope of this
paragraph (f)(2) if there is ‘‘knowledge’’
that the foreign-produced item is
destined to Russia or will be
incorporated into or used in the
‘‘production’’ or ‘‘development’’ of any
‘‘part,’’ ‘‘component,’’ or ‘‘equipment’’
not designated EAR99 and produced in
or destined to Russia.
(g) Russia-Military End User FDP rule.
A foreign-produced item is subject to
the EAR if it meets both the product
scope in paragraph (g)(1) of this section
and the end-user scope in paragraph
(g)(2) of this section. See § 746.8 of the
EAR for license requirements, license
review policy, and license exceptions
applicable to foreign-produced items
that are subject to the EAR pursuant to
this paragraph (g).
(1) Product Scope of Russia-Military
End User FDP rule. The product scope
applies if a foreign-produced item meets
the conditions of either paragraph
(g)(1)(i) or (ii) of this section.
(i) ‘‘Direct product’’ of ‘‘technology’’
or ‘‘software.’’ A foreign-produced item
meets the product scope of this
paragraph (g)(1)(i) if the foreign-
produced item is a ‘‘direct product’’ of
‘‘technology’’ or ‘‘software’’ subject to
the EAR and specified in any ECCN in
product groups D or E in any categories
of the CCL; or
(ii) ‘‘Direct product’’ of a complete
plant or ‘major component’ of a plant.
A foreign-produced item meets the
product scope of this paragraph (g)(1)(ii)
if the foreign-produced item is produced
by any plant or ‘major component’ of a
plant that is located outside the United
States, when the plant or ‘major
component’ of a plant, whether made in
the United States or a foreign country,
itself is a ‘‘direct product’’ of U.S.-origin
‘‘technology’’ or ‘‘software’’ subject to
the EAR that is specified in any ECCN
in product groups D or E in any
categories of the CCL.
(2) End-user scope of the Russia
‘Military End User’ FDP rule. A foreign-
produced item meets the end-user scope
of this paragraph (g)(2) if there is
‘‘knowledge’’ that:
(i) Activities involving footnote 3
designated entities. The foreign-
produced item will be incorporated
into, or used in the ‘‘production’’ or
‘‘development’’ of any ‘‘part,’’
‘‘component,’’ or ‘‘equipment’’
produced, purchased, or ordered by any
entity with a footnote 3 designation in
the license requirement column of the
Entity List in Supplement No. 4 to part
744 of the EAR; or
(ii) Footnote 3 designated entities as
transaction parties. Any entity with a
footnote 3 designation in the license
requirement column of the Entity List in
Supplement No. 4 to part 744 of the
EAR is a party to any transaction
involving the foreign-produced item,
e.g., as a ‘‘purchaser,’’ ‘‘intermediate
consignee,’’ ‘‘ultimate consignee,’’ or
‘‘end-user.’’
Note 3 to paragraph (g). A ‘military end
user’ for purposes of paragraph (g) is any
entity listed on the Entity List in Supplement
No. 4 to part 744 of the EAR under Russia
with a footnote 3 designation.
3. Supplement No. 2 to part 734 is
amended by revising the third and
fourth sentences of paragraph (a)(1) to
read as follows:
Supplement No. 2 to Part 734—
Guidelines for De Minimis Rules
(a) * * *
(1) * * * For purposes of identifying U.S.-
origin controlled content, you should consult
the Commerce Country Chart in Supplement
No. 1 to part 738 of the EAR and controls
described in part 746 of the EAR (excluding
U.S.-origin content that meets the criteria in
§ 746.8(a)(5)). Part 744 of the EAR should not
be used to identify controlled U.S. content
for purposes of determining the applicability
of the de minimis rules. * * *
* * * * *
PART 738—COMMERCE CONTROL
LIST OVERVIEW AND THE COUNTRY
CHART
4. The authority citation for 15 CFR
part 738 continues to read as follows:
Authority: 50 U.S.C. 4801–4852; 50 U.S.C.
4601 et seq.; 50 U.S.C. 1701 et seq.; 10 U.S.C.
8720; 10 U.S.C. 8730(e); 22 U.S.C. 287c; 22
U.S.C. 2151 note; 22 U.S.C. 3201 et seq.; 22
U.S.C. 6004; 42 U.S.C. 2139a; 15 U.S.C. 1824;
50 U.S.C. 4305; 22 U.S.C. 7201 et seq.; 22
U.S.C. 7210; E.O. 13026, 61 FR 58767, 3 CFR,
1996 Comp., p. 228; E.O. 13222, 66 FR 44025,
3 CFR, 2001 Comp., p. 783.
5. Supplement no. 1 to part 738 is
amended by revising footnotes 6 and 8
to read as follows:
Supplement No. 1 to Part 738—
Commerce Country Chart
* * * * *
6
See § 746.5 of the EAR for additional
license requirements under the Russian
Industry Sector Sanctions for ECCNs 0A998,
1C992, 3A229, 3A231, 3A232, 6A991, 8A992,
and 8D999 and items identified in
Supplement No. 2 to part 746 of the EAR. See
§ 746.8 of the EAR for Sanctions against
Russia, including additional license
requirements for items listed in any ECCN in
Categories 3, 4, 5, 6, 7, 8, or 9 of the CCL.
* * * * *
8
See § 746.6 of the EAR for additional
license requirements for exports and
reexports to the Crimea region of Ukraine and
the so-called Donetsk People’s Republic
(DNR) and Luhansk People’s Republic (LNR)
regions of Ukraine and transfers (in-country)
within the Crimea, DNR, and LNR regions of
Ukraine for all items subject to the EAR,
other than food and medicine designated as
EAR99 and certain EAR99 or ECCN 5D992.c
software for internet-based communications.
PART 740—LICENSE EXCEPTIONS
6. The authority citation for 15 CFR
part 740 continues to read as follows:
Authority: 50 U.S.C. 4801–4852; 50 U.S.C.
4601 et seq.; 50 U.S.C. 1701 et seq.; 22 U.S.C.
7201 et seq.; E.O. 13026, 61 FR 58767, 3 CFR,
1996 Comp., p. 228; E.O. 13222, 66 FR 44025,
3 CFR, 2001 Comp., p. 783.
7. Section 740.2 is amended by
revising paragraph (a)(6) to read as
follows:
§ 740.2 Restrictions on all License
Exceptions.
(a) * * *
(6) The export or reexport is to a
sanctioned destination (Cuba, Iran,
North Korea, Syria, Crimea region of
Ukraine, and the so-called Donetsk
People’s Republic (DNR) and Luhansk
People’s Republic (LNR) regions of
Ukraine) or a license is required based
on a limited sanction (Russia) unless a
license exception or portion thereof is
specifically listed in the license
exceptions paragraph pertaining to a
particular sanctioned country in part
746 of the EAR.
* * * * *
8. Section 740.19 is amended by
revising paragraphs (a), (b) introductory
text, and (c) to read as follows:
§ 740.19 Consumer Communications
Devices (CCD).
(a) Authorizations. This section
authorizes the export, reexport, or
transfer (in-country) of commodities and
software to Cuba and Russia subject to
the requirements stated in this section.
This section does not authorize U.S.
owned or controlled entities in third
countries to engage in reexports of
foreign produced commodities to Cuba
for which no license would be issued by
the Department of the Treasury
pursuant to 31 CFR 515.559.
(b) Eligible commodities and software.
Commodities and software in
paragraphs (b)(1) through (17) of this
section are eligible for export, reexport,
or transfer (in-country) under this
section to and within Cuba and Russia.
* * * * *
(c) Eligible and ineligible end users
(1) Organizations. (i) The license
exception in this section may be used to
export, reexport, or transfer (in-country)
eligible commodities and software to
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and for the use of independent non-
governmental organizations in Cuba or
Russia.
(ii) The Cuban Government, the
Cuban Communist Party, the Russian
Government, and organizations
administered or controlled by the Cuban
Government, the Cuban Communist
Party, or the Russian Government are
not eligible end users.
(iii) [Reserved]
(2) Individuals. The license exception
in this section may be used to export,
reexport or transfer (in-country) eligible
commodities and software to and for the
use of individuals other than the
following:
(i) Ineligible Cuban Government
officials. Ministers and Vice-Ministers;
members of the Council of State;
members of the Council of Ministers;
members and employees of the National
Assembly of People’s Power; members
of any provincial assembly; local sector
chiefs of the Committees for the Defense
of the Revolution; Director Generals and
sub-Director Generals and higher of all
Cuban ministries and state agencies;
employees of the Ministry of the Interior
(MININT); employees of the Ministry of
Defense (MINFAR); secretaries and first
secretaries of the Confederation of Labor
of Cuba (CTC) and its component
unions; chief editors, editors and deputy
editors of Cuban state-run media
organizations and programs, including
newspapers, television, and radio; or
members and employees of the Supreme
Court (Tribuno Supremo Nacional).
(ii) Ineligible Cuban Communist Party
officials. Members of the Politburo.
(iii) Ineligible Russian Government
officials. The President, Prime Minister,
and Deputy Prime Ministers; Federal
Ministers; Chairman, Deputy Chairman,
and Secretary of the Security Council;
members and employees of the Federal
Assembly (the State Duma and the
Federation Council); members and
employees of the Supreme Court and
the Constitutional Court; Chief and all
employees of the General Staff of the
armed forces; employees of the Ministry
of Defence; Director and employees of
the Federal Security Service, Director
and employees of the Foreign
Intelligence Service; employees of the
Ministry of the Interior; employees of
state committees, chief editors, editors
and deputy editors of Russian state-run
media organizations and programs,
including newspapers, television, and
radio; offices, services, agencies and
other entities organized under or
reporting to the federal government.
9. Supplement no. 1 to part 740 is
amended by revising the entry for
‘‘Russia’’ and footnote 1 in the Country
Group D table to read as follows:
Supplement No. 1 to Part 740—Country
Groups
* * * * *
C
OUNTRY
G
ROUP
D
Country [D:1]
National
security
[D:2]
Nuclear
[D:3]
Chemical &
biological
[D:4] Missile
technology
[D:5]
U.S. arms
embargoed
countries
1
*******
Russia ................................................................................... X X X X X
*******
1
Note to Country Group D:5: Countries subject to U.S. arms embargoes are identified by the State Department through notices published in
the Federal Register. The list of arms embargoed destinations in this table is drawn from 22 CFR 126.1 and State Department Federal Reg-
ister notices related to arms embargoes (compiled at www.pmddtc.state.gov/embargoed_countries/index.html) and will be amended when the
State Department publishes subsequent notices. If there are any discrepancies between the list of countries in this table and the countries identi-
fied by the State Department as subject to a U.S. arms embargo (in the Federal Register), the State Department’s list of countries subject to
U.S. arms embargoes shall be controlling.
* * * * *
PART 742—CONTROL POLICY—CCL
BASED CONTROLS
10. The authority citation for 15 CFR
part 742 is revised to read as follows:
Authority: 50 U.S.C. 4801–4852; 50 U.S.C.
4601 et seq.; 50 U.S.C. 1701 et seq.; 22 U.S.C.
3201 et seq.; 42 U.S.C. 2139a; 22 U.S.C. 7201
et seq.; 22 U.S.C. 7210; Sec. 1503, Pub. L.
108–11, 117 Stat. 559; E.O. 12058, 43 FR
20947, 3 CFR, 1978 Comp., p. 179; E.O.
12851, 58 FR 33181, 3 CFR, 1993 Comp., p.
608; E.O. 12938, 59 FR 59099, 3 CFR, 1994
Comp., p. 950; E.O. 13026, 61 FR 58767, 3
CFR, 1996 Comp., p. 228; E.O. 13222, 66 FR
44025, 3 CFR, 2001 Comp., p. 783;
Presidential Determination 2003–23, 68 FR
26459, 3 CFR, 2004 Comp., p. 320; Notice of
November 10, 2021, 86 FR 62891 (November
12, 2021).
11. Section 742.2 is amended by
revising paragraph (b)(4) to read as
follows:
§ 742.2 Proliferation of chemical and
biological weapons.
* * * * *
(b) * * *
(4) License applications for items
described in paragraph (a) of this
section, when destined for the People’s
Republic of China will be reviewed in
accordance with the licensing policies
in both paragraph (b) of this section and
§ 742.4(b)(7). When such items are
destined to Russia, license applications
will be reviewed under a policy of
denial. However, exports and reexports
of items to Russia in support of U.S.-
Russia civil space cooperation activities
will be reviewed on a case-by-case basis,
as well as certain other certain specified
activities specified in § 746.8 of the
EAR. See § 746.8(b).
* * * * *
12. Section 742.3 is amended by
revising paragraph (b)(4) to read as
follows:
§ 742.3 Nuclear nonproliferation.
* * * * *
(b) * * *
(4) License applications for items
described in paragraph (a) of this
section, when destined for the People’s
Republic of China will be reviewed in
accordance with the licensing policies
in both paragraph (b) of this section and
§ 742.4(b)(7). When such items are
destined to Russia, license applications
will be reviewed under a policy of
denial. However, exports and reexports
of items to Russia in support of U.S.-
Russia civil space cooperation activities
will be reviewed on a case-by-case basis.
See § 746.8(b) of the EAR.
* * * * *
13. Section 742.4 is amended by
revising paragraph (b)(7)(i) and adding
paragraph (b)(9) to read as follows:
§ 742.4 National security.
* * * * *
(b) * * *
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(7)(i) For Burma, Cambodia, the
People’s Republic of China (China), and
Venezuela, all applications will be
reviewed to determine the risk of
diversion to a military end user or
military end use. There is a general
policy of approval for license
applications to export, reexport, or
transfer items determined to be for civil
end users for civil end uses. There is a
presumption of denial for license
applications to export reexport, or
transfer items that would make a
material contribution to the
‘‘development,’’ ‘‘production,’’
maintenance, repair, or operation of
weapons systems, subsystems, and
assemblies, such as, but not limited to,
those described in supplement no. 7 to
this part, of Burma, Cambodia, China, or
Venezuela.
* * * * *
(9) For the Russian Federation, all
applications will be reviewed in
accordance with the licensing policy set
forth in § 746.8(b) of the EAR.
* * * * *
14. Section 742.5 is amended by
revising paragraph (b)(5) to read as
follows:
§ 742.5 Missile technology.
* * * * *
(b) * * *
(5) License applications for items
described in paragraph (a) of this
section, when destined for the People’s
Republic of China, will be reviewed in
accordance with the licensing policies
in both paragraph (b) of this section and
§ 742.4(b)(7). When such items are
destined to Russia, license applications
will be reviewed under a policy of
denial. However, exports and reexports
of items to Russia in support of U.S.-
Russia civil space cooperation activities
will be reviewed on a case-by-case basis.
See § 746.8(b).
* * * * *
15. Section 742.6 is amended by
revising paragraph (b)(8) and adding
paragraph (b)(9) to read as follows:
§ 742.6 Regional stability.
* * * * *
(b) * * *
(8) China or Venezuela. Applications
to export or reexport items described in
paragraph (a)(7) of this section to China
or Venezuela will be reviewed on a
case-by-case basis to determine whether
the transaction is contrary to the
national security or foreign policy
interests of the United States, including
the foreign policy interest of promoting
the observance of human rights
throughout the world. Such applications
will also be reviewed consistent with
United States arms embargo policies in
§ 126.1 of the ITAR (22 CFR 126.1).
When destined to China, items
classified under any 9x515.y ECCN will
be subject to a policy of denial
consistent with paragraph (b)(1) of this
section.
(9) Russia. Applications to export or
reexport items described in paragraph
(a)(7) of this section will be reviewed
pursuant to the licensing policy set forth
in § 746.8(b) of the EAR, as well as the
foreign policy interest of promoting the
observance of human rights throughout
the world and consistent with United
States arms embargo policies in § 126.1
of the ITAR (22 CFR 126.1).
* * * * *
PART 744—END USE AND END USER
CONTROLS
16. The authority citation for 15 CFR
part 744 continues to read as follows:
Authority: 50 U.S.C. 4801–4852; 50 U.S.C.
4601 et seq.; 50 U.S.C. 1701 et seq.; 22 U.S.C.
3201 et seq.; 42 U.S.C. 2139a; 22 U.S.C. 7201
et seq.; 22 U.S.C. 7210; E.O. 12058, 43 FR
20947, 3 CFR, 1978 Comp., p. 179; E.O.
12851, 58 FR 33181, 3 CFR, 1993 Comp., p.
608; E.O. 12938, 59 FR 59099, 3 CFR, 1994
Comp., p. 950; E.O. 13026, 61 FR 58767, 3
CFR, 1996 Comp., p. 228; E.O. 13099, 63 FR
45167, 3 CFR, 1998 Comp., p. 208; E.O.
13222, 66 FR 44025, 3 CFR, 2001 Comp., p.
783; E.O. 13224, 66 FR 49079, 3 CFR, 2001
Comp., p. 786; Notice of September 15, 2021,
86 FR 52069 (September 17, 2021); Notice of
November 10, 2021, 86 FR 62891 (November
12, 2021).
17. Section 744.21 is revised to read
as follows:
§ 744.21 Restrictions on certain ‘military
end use’ or ‘military end user’ in Burma,
Cambodia, the People’s Republic of China,
the Russian Federation, or Venezuela.
(a) General prohibition. In addition to
the license requirements for items
specified on the Commerce Control List
(CCL) (supplement no. 1 to this part),
you may not export, reexport, or transfer
(in-country) any item subject to the EAR
listed in supplement no. 2 to this part
to Burma, Cambodia, the People’s
Republic of China (China), or
Venezuela, or any item ‘‘subject to the
EAR’’ except for food or medicine
designated as EAR99, or ECCN 5A992.c
and 5D992.c unless for Russian
‘‘government end users’’ and Russian
state-owned enterprises (SoEs) to the
Russian Federation, without a license if,
at the time of the export, reexport, or
transfer (in-country), you have
‘‘knowledge,’’ as defined in § 772.1 of
the EAR, that the item is intended,
entirely or in part, for a ‘military end
use,’ as defined in paragraph (f) of this
section, or a ‘military end user,’ as
defined in paragraph (g) of this section,
in Burma, Cambodia, China, the Russian
Federation, or Venezuela.
(b) Additional prohibition on those
informed by BIS. BIS may inform you
either individually by specific notice,
through amendment to the EAR
published in the Federal Register, or
through a separate notification
published in the Federal Register, that
a license is required for specific exports,
reexports, or transfers (in-country) of
any item because there is an
unacceptable risk of use in or diversion
to a ‘military end use’ or ‘military end
user’ in Burma, Cambodia, China, the
Russian Federation, or Venezuela.
Specific notice will be given only by, or
at the direction of, the Deputy Assistant
Secretary for Export Administration.
When such notice is provided orally, it
will be followed by written notice
within two working days signed by the
Deputy Assistant Secretary for Export
Administration or the Deputy Assistant
Secretary’s designee. The absence of BIS
notification does not excuse the
exporter from compliance with the
license requirements of paragraph (a) of
this section.
(1) ‘Military End-User’ (MEU) List and
Entity List. BIS may inform and provide
notice to the public that certain entities
are subject to the additional prohibition
described under this paragraph (b)
following a determination by the End-
User Review Committee (ERC) that a
specific entity is a ‘military end user’
pursuant to this section and therefore
any exports, reexports, or transfers (in-
country) to that entity represent an
unacceptable risk of use in or diversion
to a ‘military end use’ or ‘military end
user’ in Burma, Cambodia, China, the
Russian Federation or Venezuela. Such
entities in Burma, Cambodia, China, or
Venezuela may be added to supplement
no. 7 to this part—‘Military End-User’
(MEU) List. Such entities in the Russian
Federation may be added to supplement
No. 4 to this part—Entity List. License
requirements for listed MEU are
described in paragraph (b)(1)(ii) of this
section. The listing of entities under
supplement no. 7 or 4 to this part is not
an exhaustive listing of ‘military end
users’ for purposes of this section.
Exporters, reexporters, and transferors
are responsible for determining whether
transactions with entities not listed on
supplement no. 7 or 4 to this part are
subject to a license requirement under
paragraph (a) of this section. The
process in this paragraph (b)(1) for
placing entities on the MEU List and
Entity List is only one method BIS may
use to inform exporters, reexporters, and
transferors of license requirements
under this section.
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(i) End-User Review Committee (ERC).
The End-User Review Committee (ERC),
composed of representatives of the
Departments of Commerce (Chair),
State, Defense, Energy and, where
appropriate, the Treasury, makes all
decisions regarding additions to,
removals from, or other modifications to
the MEU List and Entity List. Decisions
by the ERC for purposes of the MEU List
and Entity List will be made following
the procedures identified in this section
and in supplement no. 5 to this part—
Procedures for End-User Review
Committee Entity List and ‘Military End
User’ (MEU) List Decisions.
(ii) License requirement for parties to
the transaction. Consistent with
paragraph (a) of this section, a license is
required for the export, reexport, or
transfer (in-country) of any item subject
to the EAR listed in supplement no. 2
to this part when an entity that is listed
on the MEU List under Burma,
Cambodia, the People’s Republic of
China (China), or Venezuela is a party
to the transaction as described in
§ 748.5(c) through (f) of the EAR.
Consistent with paragraph (a) of this
section, a license is required for the
export, reexport, or transfer (in-country)
of any item subject to the EAR except
for food or medicine designated as
EAR99, or ECCN 5A992.c and 5D992.c
unless for Russian ‘‘government end
users’’ and Russian state-owned
enterprises (SoEs) to Russia when an
entity that is listed on the Entity List
under Russia pursuant to this section is
a party to the transaction as described
in § 748.5(c) through (f) of the EAR.
(2) Requests for removal from or
modification of ‘Military End User’
(MEU) List and Entity List. Any entity
listed on the MEU List or Entity List
pursuant to this section may request
that its listing be removed or modified.
All such requests, including reasons
therefor, must be in writing and sent to:
Chair, End-User Review Committee,
Bureau of Industry and Security, U.S.
Department of Commerce, 14th Street
and Pennsylvania Avenue NW, Room
3886, Washington, DC 20230; or by
email at ERC@bis.doc.gov. In order for
an entity listed on the MEU List or the
Entity List pursuant to this section to
petition BIS for their removal or
modification, as applicable, the entity
must address why the entity is not a
‘military end user’ for purposes of this
section.
(i) Review. The ERC will review such
requests for removal or modification in
accordance with the procedures set
forth in supplement no. 5 to this part.
(ii) BIS action. The Deputy Assistant
Secretary for Export Administration will
convey the decision on the request to
the requester in writing. That decision
will be the final agency action on the
request.
(c) License exception. Despite the
prohibitions described in paragraphs (a)
and (b) of this section, you may export,
reexport, or transfer (in-country) items
subject to the EAR under the provisions
of License Exception GOV set forth in
§ 740.11(b)(2)(i) and (ii) of the EAR.
(d) License application procedure.
When submitting a license application
pursuant to this section, you must state
in the ‘‘additional information’’ block of
the application that ‘‘this application is
submitted because of the license
requirement in this section (Restrictions
on a ’Military End Use’ or ‘Military End
User’ in Burma, Cambodia, the People’s
Republic of China, the Russian
Federation, or Venezuela).’’ In addition,
either in the additional information
block of the application or in an
attachment to the application, you must
include all known information
concerning the ‘military end use’ and
‘military end user(s)’ of the item(s). If
you submit an attachment with your
license application, you must reference
the attachment in the ‘‘additional
information’’ block of the application.
(e) License review standards. (1)
Applications to export, reexport, or
transfer (in-country) items to or within
Burma, Cambodia, the People’s
Republic of China (China), or Venezuela
described in paragraph (a) of this
section will be reviewed with a
presumption of denial. Applications to
export, reexport, or transfer (in-country)
items to or within Russia described in
paragraph (a) of this section will be
reviewed with a policy of denial.
(2) Applications may be reviewed
under chemical and biological weapons,
nuclear nonproliferation, or missile
technology review policies, as set forth
in §§ 742.2(b)(4), 742.3(b)(4), and
742.5(b)(4) of the EAR, if the end use
may involve certain proliferation
activities.
(3) Applications for items requiring a
license for any reason that are destined
to Burma, Cambodia, China, the Russian
Federation, or Venezuela for a ‘military
end use’ or ‘military end user’ also will
be subject to the review policy stated in
paragraph (e)(1) of this section.
(f) Military end use. In this section,
’military end use’ means: Incorporation
into a military item described on the
U.S. Munitions List (USML) (22 CFR
part 121, International Traffic in Arms
Regulations); incorporation into items
classified under Export Control
Classification Numbers (ECCNs) ending
in ‘‘A018’’ or under ‘‘600 series’’ ECCNs;
or any item that supports or contributes
to the operation, installation,
maintenance, repair, overhaul,
refurbishing, ‘‘development,’’ or
‘‘production,’’ of military items
described on the USML, or items
classified under ECCNs ending in
‘‘A018’’ or under ‘‘600 series’’ ECCNs.
(g) Military end user. In this section,
the term ‘military end user’ means the
national armed services (army, navy,
marine, air force, or coast guard), as well
as the national guard and national
police, government intelligence or
reconnaissance organizations (excluding
those described in § 744.22(f)(2)), or any
person or entity whose actions or
functions are intended to support
‘military end uses’ as defined in
paragraph (f) of this section.
(h) Effects on contracts. Transactions
involving the export, reexport, or
transfer (in country) of items to or
within Venezuela are not subject to the
provisions of this section if the contracts
for such transactions were signed prior
to November 7, 2014.
18. Supplement No. 4 to part 744 is
amended:
a. Under Russia:
i. By adding in alphabetical order
entries for ‘‘Admiralty Shipyard JSC;’’
‘‘Aleksandrov Scientific Research
Technological Institute NITI;’’ ‘‘Argut
OOO;’’ ‘‘Communication Center of the
Ministry of Defence;’’ ‘‘Federal Research
Center Boreskov Institute of Catalysis;’’
ii. By revising the entry for ‘‘Federal
Security Service (FSB);’’
iii. By adding in alphabetical order
entries for ‘‘Federal State Budgetary
Enterprise of the Administration of the
President of Russia;’’ ’’ Federal State
Budgetary Enterprise Special Flight Unit
Rossiya of the Administration of the
President of Russia;’’ ‘‘Federal State
Unitary Enterprise Dukhov Automatics
Research Institute (VNIIA);’’ ‘‘Foreign
Intelligence Service (SVR);’’ ‘‘Forensic
Center of Nizhniy Novgorod Region
Main Directorate of the Ministry of
Interior Affairs;’’ ‘‘International Center
for Quantum Optics and Quantum
Technologies LLC;’’ ‘‘Irkut
Corporation;’’ ‘‘Irkut Research and
Production Corporation Public Joint
Stock Company;’’ ‘‘Joint Stock Company
Scientific Research Institute of
Computing Machinery;’’ ‘‘JSC Central
Research Institute of Machine Building
(JSC TsNIIMash);’’ ‘‘JSC Kazan
Helicopter Plant Repair Service;’’ ‘‘JSC
Rocket and Space Centre—Progress;’’
‘‘Kamensk-Uralsky Metallurgical Works
J.S. Co.;’’ ‘‘Kazan Helicopter Plant
PJSC;’’ ‘‘Komsomolsk-na-Amur Aviation
Production Organization (KNAAPO);’’
iv. By revising the entry for ‘‘Main
Intelligence Directorate;’’ and
v. By adding in alphabetical order
entries for ‘‘Ministry of Defence of the
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Russian Federation;’’ ‘‘Moscow Institute
of Physics and Technology;’’ ‘‘NPO High
Precision Systems JSC;’’ ‘‘NPO Splav
JSC;’’ ‘‘Oboronprom OJSC;’’ ‘‘PJSC
Beriev Aircraft Company;’’ ‘‘PJSC Irkut
Corporation;’’ ‘‘PJSC Kazan
Helicopters;’’ ‘‘POLYUS Research
Institute of M.F. Stelmakh Joint Stock
Company;’’ ‘‘Promtech-Dubna, JSC;’’
‘‘Public Joint Stock Company United
Aircraft Corporation;’’ ‘‘Radiotechnical
and Information Systems (RTI)
Concern;’’ ‘‘Rapart Services LLC;’’
‘‘Rosoboronexport OJSC (ROE);’’
‘‘Rostec (Russian Technologies State
Corporation);’’ ‘‘Rostekh—Azimuth;’’
‘‘Russian Aircraft Corporation MiG;’’
‘‘Russian Helicopters JSC;’’ ‘‘SP Kvant;’’
‘‘Sukhoi Aviation JSC;’’ ‘‘Sukhoi Civil
Aircraft;’’ ‘‘Tactical Missiles
Corporation JSC;’’ ‘‘Tupolev JSC;’’
‘‘UEC-Saturn;’’ ‘‘United Aircraft
Corporation;’’ ‘‘United Engine
Corporation;’’ and ‘‘United Instrument
Manufacturing Corporation’’; and
b. By adding footnote 3.
The additions read as follows:
Supplement No. 4 to Part 744—Entity
List
* * * * *
Country Entity License
requirement License
review policy Federal Register
citation
*******
RUSSIA ............ ******
Admiralty Shipyard JSC, 203, Fontanka
Emb., 190121, St. Peterburg, Russia. All items subject to the
EAR except for food or
medicine designated as
EAR99. (See
§§ 734.9(g),
3
746.8(a)(3), and
744.21(b) of the EAR)
Policy of denial. See
§§ 746.8(b) and
744.21(e).
87 FR [INSERT FR PAGE
NUMBER], 3/3/2022.
******
Aleksandrov Scientific Research Tech-
nological Institute NITI, Koporskoe
Highway, House 72, Sosnovy Bor,
Russia.
All items subject to the
EAR except for food or
medicine designated as
EAR99. (See
§§ 734.9(g),
3
746.8(a)(3), and
744.21(b) of the EAR)
Policy of denial. See
§§ 746.8(b) and
744.21(e).
87 FR [INSERT FR PAGE
NUMBER], 3/3/2022.
******
Argut OOO, 6 Mnevniki str end 6 fl,
Moscow 123308, Russia. All items subject to the
EAR except for food or
medicine designated as
EAR99, or ECCN
5A992.c and 5D992.c
unless for Russian
‘‘government end
users’’ and Russian
state-owned enterprises
(SoEs) to Russia. (See
§§ 734.9(g),
3
746.8(a)(3), and
744.21(b) of the EAR)
Policy of denial. See
§§ 746.8(b) and
744.21(e).
87 FR [INSERT FR PAGE
NUMBER], 3/3/2022.
******
Communication Center of the Ministry
of Defence, Bolshoi Znamenskiy per.
21, Moscow, Russia.
All items subject to the
EAR except for food or
medicine designated as
EAR99. (See
§§ 734.9(g),
3
746.8(a)(3), and
744.21(b) of the EAR)
Policy of denial. See
§§ 746.8(b) and
744.21(e).
87 FR [INSERT FR PAGE
NUMBER], 3/3/2022.
******
Federal Research Center Boreskov In-
stitute of Catalysis, pr. Lavrentieva 5,
Novosibirsk 630090, Russia.
All items subject to the
EAR except for food or
medicine designated as
EAR99. (See
§§ 734.9(g),
3
746.8(a)(3), and
744.21(b) of the EAR)
Policy of denial. See
§§ 746.8(b) and
744.21(e).
87 FR [INSERT FR PAGE
NUMBER], 3/3/2022.
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citation
Federal Security Service (FSB), a.k.a.,
the following one alias:
—Federalnaya Sluzhba Bezopasnosti.
Ulitsa Kuznetskiy Most, Dom 22, Mos-
cow 107031, Russia;
and Lubyanskaya Ploschad, Dom 2,
Moscow 107031, Russia.
All items subject to the
EAR, apart from items
that are related to trans-
actions that are author-
ized by the Department
of the Treasury’s Office
of Foreign Assets Con-
trol pursuant to General
License No. 1B of
March 2, 2021 and ex-
cept for food or medi-
cine designated as
EAR99. (See
§§ 734.9(g),
3
746.8(a)(3), and
744.21(b) of the EAR)
Presumption of denial ...... 82 FR 724, 1/4/17. 82 FR
18219, 4/18/17. 86 FR
37903, 7/19/21. 87 FR
[INSERT FR PAGE
NUMBER], 3/3/2022.
******
Federal State Budgetary Enterprise of
the Administration of the President of
Russia, 1-ya Reysovaya Street, 1,
Moscow 119027, Russia.
All items subject to the
EAR except for food or
medicine designated as
EAR99. (See
§§ 734.9(g),
3
746.8(a)(3), and
744.21(b) of the EAR)
Policy of denial. See
§§ 746.8(b) and
744.21(e).
87 FR [INSERT FR PAGE
NUMBER], 3/3/2022].
Federal State Budgetary Enterprise
Special Flight Unit Rossiya of the Ad-
ministration of the President of Rus-
sia, 1-ya Reysovaya Street, 1, Mos-
cow 119027, Russia.
All items subject to the
EAR except for food or
medicine designated as
EAR99. (See
§§ 734.9(g),
3
746.8(a)(3), and
744.21(b) of the EAR)
Policy of denial. See
§§ 746.8(b) and
744.21(e).
87 FR [INSERT FR PAGE
NUMBER], 3/3/2022.
Federal State Unitary Enterprise
Dukhov Automatics Research Insti-
tute (VNIIA), 22, Sushchevskaya UI,
Moscow 127055RU.
All items subject to the
EAR except for food or
medicine designated as
EAR99. (See
§§ 734.9(g),
3
746.8(a)(3), and
744.21(b) of the EAR)
Policy of denial. See
§§ 746.8(b) and
744.21(e).
87 FR [INSERT FR PAGE
NUMBER], 3/3/2022.
Foreign Intelligence Service (SVR),
Yasenevo 11 Kolpachny, Moscow,
0101000.
All items subject to the
EAR except for food or
medicine designated as
EAR99. (See
§§ 734.9(g),
3
746.8(a)(3), and
744.21(b) of the EAR)
Policy of denial. See
§§ 746.8(b) and
744.21(e).
87 FR [INSERT FR PAGE
NUMBER], 3/3/2022.
Forensic Center of Nizhniy Novgorod
Region Main Directorate of the Min-
istry of Interior Affairs, Gorkiy Street,
71, Nizhniy Novgorod 603950, Rus-
sia.
All items subject to the
EAR except for food or
medicine designated as
EAR99. (See
§§ 734.9(g),
3
746.8(a)(3), and
744.21(b) of the EAR)
Policy of denial. See
§§ 746.8(b) and
744.21(e).
87 FR [INSERT FR PAGE
NUMBER], 3/3/2022.
******
International Center for Quantum Op-
tics and Quantum Technologies LLC,
a.k.a. the following two aliases:
—Russian Quantum Center and
—RQC.
Business-center ‘‘Ural,’’ 100 Novaya
Street, Skolkovo, Moscow, 143025,
Russia; and
30 Bolshoy Blvd., Bldg. 1, Moscow,
121205, Russia; and
100A Novaya Street, Skolkovo,
Odintsovsky District, Moscow,
143025, Russia.
All items subject to the
EAR except for food or
medicine designated as
EAR99, or ECCN
5A992.c and 5D992.c
unless for Russian
‘‘government end
users’’ and Russian
state-owned enterprises
(SoEs) to Russia. (See
§§ 734.9(g),
3
746.8(a)(3), and
744.21(b) of the EAR)
Policy of denial. See
§§ 746.8(b) and
744.21(e).
87 FR [INSERT FR PAGE
NUMBER], 3/3/2022.
******
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requirement License
review policy Federal Register
citation
Irkut Corporation, Leningradsky Pros-
pect 68, Moscow 125315, Russia. All items subject to the
EAR except for food or
medicine designated as
EAR99. (See
§§ 734.9(g),
3
746.8(a)(3), and
744.21(b) of the EAR)
Policy of denial. See
§§ 746.8(b) and
744.21(e).
87 FR [INSERT FR PAGE
NUMBER], 3/3/2022.
Irkut Research and Production Cor-
poration Public Joint Stock Company,
68 Leningradsky Prospect, Moscow
125315, Russia.
All items subject to the
EAR except for food or
medicine designated as
EAR99. (See
§§ 734.9(g),
3
746.8(a)(3), and
744.21(b) of the EAR)
Policy of denial. See
§§ 746.8(b) and
744.21(e).
87 FR [INSERT FR PAGE
NUMBER], 3/3/2022.
******
Joint Stock Company Scientific Re-
search Institute of Computing Ma-
chinery, Melnichnaya Street, 31,
Kirov 610025, Russia.
All items subject to the
EAR except for food or
medicine designated as
EAR99. (See
§§ 734.9(g),
3
746.8(a)(3), and
744.21(b) of the EAR)
Policy of denial. See
§§ 746.8(b) and
744.21(e).
87 FR [INSERT FR PAGE
NUMBER], 3/3/2022.
******
JSC Central Research Institute of Ma-
chine Building (JSC TsNIIMash),
Pionerskaya Street, 4, korpus 22,
Moskovskaya obl., Korolov 141070,
Russia.
All items subject to the
EAR except for food or
medicine designated as
EAR99, or ECCN
5A992.c and 5D992.c
unless for Russian
‘‘government end
users’’ and Russian
state-owned enterprises
(SoEs) to Russia. (See
§§ 734.9(g),
3
746.8(a)(3), and
744.21(b) of the EAR)
This license require-
ment may be overcome
by License Exception
GOV under
§ 740.11(b)(2) and (e)
Policy of denial. See
§§ 746.8(b) and
744.21(e).
87 FR [INSERT FR PAGE
NUMBER], 3/3/2022.
******
JSC Kazan Helicopter Plant Repair
Service, a.k.a., the following two
aliases:
—Kazanski Vertoletny Zavod
Remservis; and
—KVZ Remservis.
Ulitsa Tetsevskaya 14, Kazan, Russia.
All items subject to the
EAR except for food or
medicine designated as
EAR99. (See
§§ 734.9(g),
3
746.8(a)(3), and
744.21(b) of the EAR)
Policy of denial. See
§§ 746.8(b) and
744.21(e).
87 FR [INSERT FR PAGE
NUMBER], 3/3/2022.
JSC Rocket and Space Centre—
Progress, Zemetsa Street 18,
Samarskaya Oblast, Samara 443009,
Russia.
All items subject to the
EAR except for food or
medicine designated as
EAR99. (See
§§ 734.9(g),
3
746.8(a)(3), and
744.21(b) of the EAR)
This license require-
ment may be overcome
by License Exception
GOV under
§ 740.11(b)(2) and (e)
Policy of denial. See
§§ 746.8(b) and
744.21(e).
87 FR [INSERT FR PAGE
NUMBER], 3/3/2022.
******
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citation
Kamensk-Uralsky Metallurgical Works
J.S. Co., 5 Zavodskaya St., Kamensk
Uralsky, 623405 Sverdlovsk region,
Russia.
All items subject to the
EAR except for food or
medicine designated as
EAR99, or ECCN
5A992.c and 5D992.c
unless for Russian
‘‘government end
users’’ and Russian
state-owned enterprises
(SoEs) to Russia. (See
§§ 734.9(g),
3
746.8(a)(3), and
744.21(b) of the EAR)
Policy of denial. See
§§ 746.8(b) and
744.21(e).
87 FR [INSERT FR PAGE
NUMBER], 3/3/2022.
******
Kazan Helicopter Plant PJSC,
Tetsevskaya St, Kazan 420085, Rus-
sia.
All items subject to the
EAR except for food or
medicine designated as
EAR99. (See
§§ 734.9(g),
3
746.8(a)(3), and
744.21(b) of the EAR)
Policy of denial. See
§§ 746.8(b) and
744.21(e).
87 FR [INSERT FR PAGE
NUMBER], 3/3/2022.
******
Komsomolsk-na-Amur Aviation Produc-
tion Organization (KNAAPO), 1
Sovetskaya Street, Komsomolsk-on-
Amur, Khabarovsky Krai, Russia
618018.
All items subject to the
EAR except for food or
medicine designated as
EAR99. (See
§§ 734.9(g),
3
746.8(a)(3), and
744.21(b) of the EAR)
Policy of denial. See
§§ 746.8(b) and
744.21(e).
87 FR [INSERT FR PAGE
NUMBER], 3/3/2022.
******
Main Intelligence Directorate, a.k.a., the
following three aliases
—Glavnoe Razvedyvatel’noe
Upravlenie;
—GRU; and
—Main Intelligence Department.
Khoroshevskoye Shosse 76, Khodinka,
Moscow, Russia; and Ministry of
Defence of the Russian Federation,
Frunzenskaya nab., 22/2, Moscow
119160, Russia.
All items subject to the
EAR except for food or
medicine designated as
EAR99. (See
§§ 734.9(g),
3
746.8(a)(3), and
744.21(b) of the EAR)
Presumption of denial ...... 82 FR 724, 1/4/17. 87 FR
[INSERT FR PAGE
NUMBER], 3/3/2022.
******
Ministry of Defence of the Russian
Federation, including the Armed
Forces of Russia and all operating
units wherever located. This includes
the national armed services (army,
navy, marine, air force, or coast
guard), as well as the national guard
and national police, government intel-
ligence or reconnaissance organiza-
tions of the Russian Federation. All
address located in Russia.
All items subject to the
EAR except for food or
medicine designated as
EAR99. (See
§§ 734.9(g),
3
746.8(a)(3), and
744.21(b) of the EAR)
The license require-
ments under this entry
also extend to any ex-
port, reexport and trans-
fer (in-country) to the
entity wherever located
worldwide.
Policy of denial. See
§§ 746.8(b) and
744.21(e).
87 FR [INSERT FR PAGE
NUMBER], 3/3/2022.
******
Moscow Institute of Physics and Tech-
nology, a.k.a., the following two
aliases:
—MIPT; and
—MFTI.
Dolgoprudny Campus: 9 Institutskiy
per., Dolgoprudny, Moscow Region
141701, Russia; and
Zhukovsky Campus: Ulitsa Gagarina
16, Zhukovsky, Moscow Region
140180, Russia; and
Moscow Campus 1 Stroyeniye 1,
Klimentovsky Pereulok, Moscow Re-
gion 115184, Russia.
All items subject to the
EAR except for food or
medicine designated as
EAR99. (See
§§ 734.9(g),
3
746.8(a)(3), and
744.21(b) of the EAR)
Policy of denial. See
§§ 746.8(b) and
744.21(e).
87 FR [INSERT FR PAGE
NUMBER], 3/3/2022.
******
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NPO High Precision Systems JSC,
Kievskaya Street 7, Moscow, Russia. All items subject to the
EAR except for food or
medicine designated as
EAR99. (See
§§ 734.9(g),
3
746.8(a)(3), and
744.21(b) of the EAR)
Policy of denial. See
§§ 746.8(b) and
744.21(e).
87 FR [INSERT FR PAGE
NUMBER], 3/3/2022.
NPO Splav JSC, 33 ul. Shcheglov
Kaya Zaseka Tula, 300004 Russia. All items subject to the
EAR except for food or
medicine designated as
EAR99. (See
§§ 734.9(g),
3
746.8(a)(3), and
744.21(b) of the EAR)
Policy of denial. See
§§ 746.8(b) and
744.21(e).
87 FR [INSERT FR PAGE
NUMBER], 3/3/2022.
******
Oboronprom OJSC, 29/141 Vereiskaya
Street, Moscow, 121357 Russia. All items subject to the
EAR except for food or
medicine designated as
EAR99, or ECCN
5A992.c and 5D992.c
unless for Russian
‘‘government end
users’’ and Russian
state-owned enterprises
(SoEs) to Russia. (See
§§ 734.9(g),
3
746.8(a)(3), and
744.21(b) of the EAR)
Policy of denial. See
§§ 746.8(b) and
744.21(e).
87 FR [INSERT FR PAGE
NUMBER], 3/3/2022.
******
PJSC Beriev Aircraft Company, 1
Aviatorov Square, Taganrog 347923,
Russia.
All items subject to the
EAR except for food or
medicine designated as
EAR99. (See
§§ 734.9(g),
3
746.8(a)(3), and
744.21(b) of the EAR)
Policy of denial. See
§§ 746.8(b) and
744.21(e).
87 FR [INSERT FR PAGE
NUMBER], 3/3/2022.
PJSC Irkut Corporation, Regional Air-
craft 26 Leninskaya Sloboda, Mos-
cow 115280, Russia.
All items subject to the
EAR except for food or
medicine designated as
EAR99. (See
§§ 734.9(g),
3
746.8(a)(3), and
744.21(b) of the EAR)
Policy of denial. See
§§ 746.8(b) and
744.21(e).
87 FR [INSERT FR PAGE
NUMBER], 3/3/2022.
PJSC Kazan Helicopters, Tetsevskaya
Street, 14, Kazan, Tatarstan Repub-
lic 420085, Russia.
All items subject to the
EAR except for food or
medicine designated as
EAR99. (See
§§ 734.9(g),
3
746.8(a)(3), and
744.21(b) of the EAR)
Policy of denial. See
§§ 746.8(b) and
744.21(e).
87 FR [INSERT FR PAGE
NUMBER], 3/3/2022.
******
POLYUS Research Institute of M.F.
Stelmakh Joint Stock Company,
Building 1, 3 Vvedenskogo Street,
Moscow, 117342, Russia.
All items subject to the
EAR except for food or
medicine designated as
EAR99. (See
§§ 734.9(g),
3
746.8(a)(3), and
744.21(b) of the EAR)
Policy of denial.
§§ 746.8(b) and
744.21(e).
87 FR [INSERT FR PAGE
NUMBER], 3/3/2022.
******
Promtech-Dubna, JSC, Programmistov
St., 4, Room 364, Dubna, Moscow
141983, Russia.
All items subject to the
EAR except for food or
medicine designated as
EAR99, or ECCN
5A992.c and 5D992.c
unless for Russian
‘‘government end
users’’ and Russian
state-owned enterprises
(SoEs) to Russia. (See
§§ 734.9(g),
3
746.8(a)(3), and
744.21(b) of the EAR)
Policy of denial. See
§§ 746.8(b) and
744.21(e).
87 FR [INSERT FR PAGE
NUMBER], 3/3/2022.
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******
Public Joint Stock Company United Air-
craft Corporation, Bolshaya
Pionerskaya, Moscow 115054, Rus-
sia.
All items subject to the
EAR except for food or
medicine designated as
EAR99. (See
§§ 734.9(g),
3
746.8(a)(3), and
744.21(b) of the EAR)
Policy of denial. See
§§ 746.8(b) and
744.21(e).
87 FR [INSERT FR PAGE
NUMBER], 3/3/2022.
******
Radiotechnical and Information Sys-
tems (RTI) Concern, 127083, Mos-
cow, 8 marta, 10/1 Russia.
All items subject to the
EAR except for food or
medicine designated as
EAR99, or ECCN
5A992.c and 5D992.c
unless for Russian
‘‘government end
users’’ and Russian
state-owned enterprises
(SoEs) to Russia. (See
§§ 734.9(g),
3
746.8(a)(3), and
744.21(b) of the EAR)
Policy of denial. See
§§ 746.8(b) and
744.21(e).
87 FR [INSERT FR PAGE
NUMBER], 3/3/2022.
******
Rapart Services LLC, Aeroportovskaya
Str. 6/2, Solnechnogorskiy Region,
Dubrobki 141580, Russia.
All items subject to the
EAR except for food or
medicine designated as
EAR99. (See
§§ 734.9(g),
3
746.8(a)(3), and
744.21(b) of the EAR)
Policy of denial. See
§§ 746.8(b) and
744.21(e).
87 FR [INSERT FR PAGE
NUMBER], 3/3/2022.
******
Rosoboronexport OJSC (ROE), Strada
Strominka 27, Moscow, 107076 Rus-
sia.
All items subject to the
EAR except for food or
medicine designated as
EAR99. (See
§§ 734.9(g),
3
746.8(a)(3), and
744.21(b) of the EAR)
Policy of denial. See
§§ 746.8(b) and
744.21(e).
87 FR [INSERT FR PAGE
NUMBER], 3/3/2022.
******
Rostec (Russian Technologies State
Corporation), 24 Usacheva Street,
Moscow, Russia 119048.
All items subject to the
EAR except for food or
medicine designated as
EAR99. (See
§§ 734.9(g),
3
746.8(a)(3), and
744.21(b) of the EAR)
Policy of denial. See
§§ 746.8(b) and
744.21(e).
87 FR [INSERT FR PAGE
NUMBER], 3/3/2022.
Rostekh—Azimuth, Building 2, 5 Suite
X, Room 15, Floor 2, Narishkinskaya
Alleya, Moscow 125167, Russia.
All items subject to the
EAR except for food or
medicine designated as
EAR99. (See
§§ 734.9(g),
3
746.8(a)(3), and
744.21(b) of the EAR)
Policy of denial. See
§§ 746.8(b) and
744.21(e).
87 FR [INSERT FR PAGE
NUMBER], 3/3/2022.
Russian Aircraft Corporation MiG,
Leningradskoe Highway, 6, Building
1, Moscow, 125171, Russia.
All items subject to the
EAR except for food or
medicine designated as
EAR99. (See
§§ 734.9(g),
3
746.8(a)(3), and
744.21(b) of the EAR)
Policy of denial. See
§§ 746.8(b) and
744.21(e).
87 FR [INSERT FR PAGE
NUMBER], 3/3/2022.
Russian Helicopters JSC, Bolshaya
Pionerskaya, 1, Moscow, 123610,
Russia.
All items subject to the
EAR except for food or
medicine designated as
EAR99. (See
§§ 734.9(g),
3
746.8(a)(3), and
744.21(b) of the EAR)
Policy of denial. See
§§ 746.8(b) and
744.21(e).
87 FR [INSERT FR PAGE
NUMBER], 3/3/2022.
******
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requirement License
review policy Federal Register
citation
SP Kvant, a.k.a., the follow three
aliases:
—Kvant LLC;
—Limited Liability Company Joint Ven-
ture Quantum Technologies; and
—Joint Venture Quantum.
D. 46, Etazh 6, pom. 600K, Shosse
Varshavskoe, Moscow, 115230, Rus-
sia.
All items subject to the
EAR except for food or
medicine designated as
EAR99, or ECCN
5A992.c and 5D992.c
unless for Russian
‘‘government end
users’’ and Russian
state-owned enterprises
(SoEs) to Russia. (See
§§ 734.9(g),
3
746.8(a)(3), and
744.21(b) of the EAR)
Policy of denial. See
§§ 746.8(b) and
744.21(e).
87 FR [INSERT FR PAGE
NUMBER], 3/3/2022.
******
Sukhoi Aviation JSC, Polikarpov Str.,
23B, Moscow, 125284, Russia. All items subject to the
EAR except for food or
medicine designated as
EAR99. (See
§§ 734.9(g),
3
746.8(a)(3), and
744.21(b) of the EAR)
Policy of denial. See
§§ 746.8(b) and
744.21(e).
87 FR [INSERT FR PAGE
NUMBER], 3/3/2022.
Sukhoi Civil Aircraft, 1 Sovetskaya
Street, Komsomolsk-On-Amur
681018, Russia; and 15 Tupoleva
Street, OP JSC SCA, Zukhovskiy
140180, Russia; and 23b Bld. 2
Polikarpova St., Moscow 125824,
Russia; and
26, Bld. 5, Leninskaya Sloboda Street,
Moscow, 115280, Russia; and
Antonova Avenue 1, Ulianovsk 432072,
Russia; and
Leningradskaya Street 80/4A,
Komsomolsk-On-Amur 681007, Rus-
sia.
All items subject to the
EAR except for food or
medicine designated as
EAR99. (See
§§ 734.9(g),
3
746.8(a)(3), and
744.21(b) of the EAR)
Policy of denial. See
§§ 746.8(b) and
744.21(e).
87 FR [INSERT FR PAGE
NUMBER], 3/3/2022.
******
Tactical Missiles Corporation JSC,
KorolevIlyicha Street, 7, 141080,
Russia.
All items subject to the
EAR except for food or
medicine designated as
EAR99. (See
§§ 734.9(g),
3
746.8(a)(3), and
744.21(b) of the EAR)
Policy of denial. See
§§ 746.8(b) and
744.21(e).
87 FR [INSERT FR PAGE
NUMBER], 3/3/2022.
******
Tupolev JSC, Academician Tupolev
Embankment 17, Moscow, 105005,
Russia.
All items subject to the
EAR except for food or
medicine designated as
EAR99. (See
§§ 734.9(g),
3
746.8(a)(3), and
744.21(b) of the EAR)
Policy of denial. See
§§ 746.8(b) and
744.21(e).
87 FR [INSERT FR PAGE
NUMBER], 3/3/2022.
UEC-Saturn, 163 Lenin Avenue,
Rybinsk 152903, Yavoslavl Region,
Russia.
All items subject to the
EAR except for food or
medicine designated as
EAR99. (See
§§ 734.9(g),
3
746.8(a)(3), and
744.21(b) of the EAR)
Policy of denial. See
§§ 746.8(b) and
744.21(e).
87 FR [INSERT FR PAGE
NUMBER], 3/3/2022.
******
United Aircraft Corporation, Bolshaya
Pionerskaya Str., 1, Moscow,
115054, Russia.
All items subject to the
EAR except for food or
medicine designated as
EAR99. (See
§§ 734.9(g),
3
746.8(a)(3), and
744.21(b) of the EAR)
Policy of denial. See
§§ 746.8(b) and
744.21(e).
87 FR [INSERT FR PAGE
NUMBER], 3/3/2022.
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citation
United Engine Corporation, 16,
Budyonny Avenue, Moscow, 105118
Russia.
All items subject to the
EAR except for food or
medicine designated as
EAR99. (See
§§ 734.9(g),
3
746.8(a)(3), and
744.21(b) of the EAR)
Policy of denial. See
§§ 746.8(b) and
744.21(e).
87 FR [INSERT FR PAGE
NUMBER], 3/3/2022.
United Instrument Manufacturing Cor-
poration, Vereiskaya 29, str. 141,
Moscow, Russia.
All items subject to the
EAR except for food or
medicine designated as
EAR99. (See
§§ 734.9(g),
3
746.8(a)(3), and
744.21(b) of the EAR)
Policy of denial. See
§§ 746.8(b) and
744.21(e).
87 FR [INSERT FR PAGE
NUMBER], 3/3/2022.
******
*******
*******
3
For this entity, ‘‘items subject to the EAR’’ includes foreign-produced items that are subject to the EAR under § 734.9(g) of the EAR. See
§§ 746.8 and 744.21 of the EAR for related license requirements, license review policy, and restrictions on license exceptions.
Supplement No. 7 to Part 744
[Amended]
19. Supplement No. 7 to part 744 is
amended by removing RUSSIA and all
the Russian entries.
PART 746—EMBARGOES AND OTHER
SPECIAL CONTROLS
20. The authority citation for 15 CFR
part 746 is revised to read as follows:
Authority: 50 U.S.C. 4801–4852; 50 U.S.C.
4601 et seq.; 50 U.S.C. 1701 et seq.; 22 U.S.C.
287c; Sec 1503, Pub. L. 108–11, 117 Stat. 559;
22 U.S.C. 2151 note; 22 U.S.C. 6004; 22
U.S.C. 7201 et seq.; 22 U.S.C. 7210; E.O.
12854, 58 FR 36587, 3 CFR, 1993 Comp., p.
614; E.O. 12918, 59 FR 28205, 3 CFR, 1994
Comp., p. 899; E.O. 13222, 66 FR 44025, 3
CFR, 2001 Comp., p. 783; E.O. 13338, 69 FR
26751, 3 CFR, 2004 Comp., p 168;
Presidential Determination 2003–23, 68 FR
26459, 3 CFR, 2004 Comp., p. 320;
Presidential Determination 2007–7, 72 FR
1899, 3 CFR, 2006 Comp., p. 325; Notice of
May 6, 2021, 86 FR 26793 (May 10, 2021).
21. Section 746.5 is amended by
revising paragraph (a)(1) to read as
follows:
§ 746.5 Russian industry sector sanctions.
(a) * * *
(1) General prohibition. (i) A license
is required to export, reexport or
transfer (in-country) any item subject to
the Export Administration Regulations
(EAR) listed in supplement No. 2 to this
part and items specified in ECCNs
0A998, 1C992, 3A229, 3A231, 3A232,
6A991, 8A992, and 8D999 when you
know that the item will be used directly
or indirectly in exploration for, or
production of, oil or gas in Russian
deepwater (greater than 500 feet) or
Arctic offshore locations or shale
formations in Russia, or are unable to
determine whether the item will be used
in such projects. Such items include,
but are not limited to, drilling rigs, parts
for horizontal drilling, drilling and
completion equipment, subsea
processing equipment, Arctic-capable
marine equipment, wireline and down
hole motors and equipment, drill pipe
and casing, software for hydraulic
fracturing, high pressure pumps,
seismic acquisition equipment, remotely
operated vehicles, compressors,
expanders, valves, and risers.
(ii) You should be aware that other
provisions of the EAR, including parts
742 and 744 and § 746.8, also apply to
exports and reexports to Russia. License
applications submitted to BIS under this
section may include the phrase ‘‘section
746.5’’ or in Block 9 (Special Purpose)
as described in Supplement No. 1 to
part 748 of the EAR.
* * * * *
22. Section 746.6 is revised to read as
follows:
§ 746.6 Crimea Region of Ukraine and
Covered Regions of Ukraine.
(a) License requirements—(1) General
prohibition—Crimea. A license is
required to export or reexport to or
transfer within the Crimea region of
Ukraine any item subject to the EAR
other than food and medicine
designated as EAR99, or ‘software
necessary to enable the exchange of
personal communications over the
internet’.
(2) General prohibition—Donetsk
People’s Republic (DNR) and Luhansk
People’s Republic (LNR). A license is
required to export or reexport to, or
transfer within, the so-called DNR or
LNR regions of Ukraine any item subject
to the EAR other than: Food and
medicine designated as EAR99, or
‘software necessary to enable the
exchange of personal communications
over the internet’.
(3) Deemed exports or reexports. For
purposes of applying the EAR deemed
export and deemed reexport
requirements pursuant to the general
prohibitions described in this paragraph
(a)(3), the nationality of the foreign
national (as determined by accepted
methods, such as looking to the passport
or other nationality document(s)
recognized by the United States
Government) is what is used for
purposes of determining whether a
license is required for a deemed export
or deemed reexport.
(b) License review policy.
Applications will be reviewed with a
policy of denial, except for applications
for transactions authorized under OFAC
Ukraine-Related General Licenses,
which will be reviewed on a case-by-
case basis.
(c) License exceptions. You may
export, reexport or transfer (in-country)
without a license if your transaction
meets all the applicable terms and
conditions of any of the license
exception paragraphs specified in this
paragraph (c). To determine scope and
eligibility requirements, you will need
to refer to the sections or specific
paragraphs of part 740 (License
Exceptions) of the EAR, as well as
§ 740.2 license exception restrictions.
Read each license exception carefully,
as the provisions available for countries
subject to sanctions are generally
narrow.
(1) TMP for items for use by the news
media as set forth in § 740.9(a)(9) of the
EAR.
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(2) GOV for items for personal or
official use by personnel and agencies of
the U.S. Government, the International
Atomic Energy Agency (IAEA), or the
European Atomic Energy Community
(Euratom) as set forth in § 740.11(a) and
(b)(2) of the EAR.
(3) GFT for gift parcels and
humanitarian donations as set forth in
§ 740.12 of the EAR.
(4) TSU for operation technology and
software for lawfully exported
commodities as set forth in § 740.13(a)
and sales technology as set forth in
§ 740.13 (b) of the EAR.
(5) BAG for exports of items by
individuals leaving the United States as
personal baggage as set forth in
§ 740.14(a) through (d) of the EAR.
(6) AVS for civil aircraft and vessels
as set forth in § 740.15(a)(4) and (d) of
the EAR.
(d) Definitions. For purpose of this
section, use the following definitions of
terms:
(1) ‘Crimea region of Ukraine’
includes the land territory in that region
as well as any maritime area over which
sovereignty, sovereign rights, or
jurisdiction is claimed based on
occupation of that land territory.
(2) ‘Donetsk People’s Republic (DNR)
region’ or ‘Luhansk People’s Republic
(LNR) region’ include the land territory
in those regions as well as any maritime
area over which sovereignty, sovereign
rights, or jurisdiction is claimed based
on purported sovereignty over that land
territory or area.
(3) ‘Software necessary to enable the
exchange of personal communications
over the internet’ includes only software
(such as software for instant messaging,
chat and email, social networking,
sharing of photos and movies, Web
browsing, and blogging), designated
EAR99 or classified as mass market
software under Export Control
Classification Number (ECCN) 5D992.c
of the EAR, provided that such software
is widely available to the public at no
cost to the user.
23. Section 746.8 is added to read as
follows:
§ 746.8 Sanctions against Russia.
(a) License requirements—(1) Items
classified in any ECCN in CCL
Categories 3 to 9. In addition to license
requirements specified on the
Commerce Control List (CCL) in
Supplement No. 1 to part 774 of the
EAR and in other provisions of the EAR,
including part 744 and § 746.5, a license
is required, excluding deemed exports
and deemed reexports, to export,
reexport, or transfer (in-country) to or
within Russia any item subject to the
EAR and specified in any Export
Control Classification Number (ECCN)
in Categories 3, 4, 5, 6, 7, 8, or 9 of the
CCL.
(2) Foreign-produced ‘‘direct product’’
items subject to the EAR under Russia
foreign ‘‘direct product’’ (FDP) rule.
Except as described in paragraph (a)(4)
of this section, a license is required to
reexport, export from abroad, or transfer
(in-country) to any destination any
foreign-produced item subject to the
EAR under the Russia FDP Rule
described in § 734.9(f) of the EAR.
(3) Foreign-produced ‘‘direct product’’
items subject to the EAR under Russia-
Military End User FDP rule. Except as
described in paragraph (a)(4) of this
section, a license is required to reexport,
export from abroad, or transfer (in-
country) to or within any destination
any foreign-produced item subject to the
EAR under § 734.9(g) of the EAR other
than food or medicine designated as
EAR99, or ECCN 5A992.c and 5D992.c
unless for Russian ‘‘government end
users’’ and Russian state-owned
enterprises (SoEs).
(4) Exclusion from license
requirements under paragraphs (a)(2)
and (3) of this section. The countries
listed in supplement No. 3 to this part
have committed to implementing
substantially similar export controls on
Russia under their domestic laws.
Therefore, exports or reexports from the
countries described in this supplement
No. 3 to this part or transfers (in-
country) within the countries described
in this supplement are not subject to the
license requirements described in
paragraphs (a)(2) and (3) of this section,
unless a limit to the exclusion is
described in the Scope column in
supplement No. 3 to this part.
(5) Exclusion from scope of U.S.-
origin controlled content under
paragraph (a)(1) of this section. For
purposes of determining U.S.-origin
controlled content under supplement
No. 2 to part 734 of the EAR, paragraph
(a)(1) of this section when making a de
minimis calculation for reexports and
exports from abroad to Russia, the
license requirements in paragraph (a)(1)
of this section are not used to determine
controlled U.S.-origin content in a
foreign-made item, provided the criteria
in paragraphs (a)(5)(i) and (ii) of this
section are met:
(i) The U.S.-origin content is
described in an Anti-Terrorism (AT)-
only ECCN and is not otherwise
excluded from the applicable Scope
column in supplement No. 3 to this
part. For purposes of this paragraph
(a)(5), AT-only items means any ECCN
that only specifies either only AT in the
reason for control paragraph of the
ECCN or is classified under ECCN
9A991; and
(ii) The foreign made item will be
reexported or exported from abroad
from a country described in supplement
No. 3 to this part.
Note 1 to paragraph (a). A ‘military end
user’ for purposes of paragraph (a)(3) and (4)
of this section is any entity listed on the
Entity List in supplement No. 4 to part 744
of the EAR under Russia with a footnote 3
designation.
(b) Licensing policy. With limited
exceptions, applications for the export,
reexport or transfer (in-country) of any
item that requires a license for export or
reexport to or transfer pursuant to the
requirements of this section will be
reviewed with a policy of denial. The
following types of license applications
for licenses required under paragraphs
(a)(1) and (2) of this section will be
reviewed on a case-by-case basis to
determine whether the transaction in
question would benefit the Russian
government or defense sector:
Applications related to safety of flight;
applications related to maritime safety;
applications to meet humanitarian
needs; applications that support
government space cooperation;
applications for items destined to
wholly-owned U.S. subsidiaries, foreign
subsidiaries of U.S. companies that are
joint ventures with other U.S.
companies, joint ventures of U.S.
companies with companies
headquartered in countries from
Country Group A:5 and A:6 in
supplement no. 1 to part 740 of the EAR
countries, the wholly-owned
subsidiaries of companies
headquartered in countries from
Country Group A:5 and A:6 in
supplement no. 1 to part 740, joint
ventures of companies headquartered in
Country Groups A:5 and A:6 with other
companies headquartered in Country
Groups A:5 and A:6; applications for
companies headquartered in Country
Groups A:5 and A:6 to support civil
telecommunications infrastructure; and
government-to-government activities.
License applications required under
paragraph (a)(3) of this section will be
reviewed under a policy of denial in all
cases.
(c) License exceptions. No license
exceptions may overcome the license
requirements in paragraph (a)(3) of this
section, except as specified in the Entity
List entry for a Footnote 3 entity on the
Entity List in supplement no. 4 to part
744 of the EAR. No license exceptions
may overcome the license requirements
in paragraphs (a)(1) and (2) of this
section except the following license
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exceptions identified in paragraphs
(c)(1) through (7) of this section.
(1) License Exception TMP for items
for use by the news media as set forth
in § 740.9(a)(9) of the EAR.
(2) License Exception GOV
(§ 740.11(b) of the EAR).
(3) License Exception TSU for
software updates for civil end-users that
are wholly-owned U.S. subsidiaries,
foreign subsidiaries of U.S. companies
that are joint ventures with other U.S.
and companies, joint ventures of U.S.
companies with companies
headquartered in countries from
Country Group A:5 and A:6 in
supplement no. 1 to part 740 of the EAR
countries, the wholly-owned
subsidiaries of companies
headquartered in countries from
Country Group A:5 and A:6 in
supplement no. 1 to part 740, or joint
ventures of companies headquartered in
Country Group A:5 and A:6 with other
companies headquartered in Country
Groups A:5 and A:6 (§ 740.13(c) of the
EAR).
(4) License Exception BAG, excluding
firearms and ammunition (§ 740.14,
excluding paragraph (e), of the EAR).
(5) License Exception AVS
(§ 740.15(a) and (b) of the EAR).
(6) License Exception ENC excluding
Russian ‘‘government end users’’ and
Russian state-owned enterprises (SoEs)
(§ 740.17 of the EAR).
(7) License Exception CCD (§ 740.19
of the EAR).
24. Supplement No. 2 to part 746 is
amended by revising the introductory
text of the supplement to read as
follows:
Supplement No. 2 to Part 746—Russian
Industry Sector Sanction List
The source for the Schedule B numbers
and descriptions in this list comes from the
Bureau of the Census’s Schedule B
concordance of exports 2022. Census’s
Schedule B List 2022 can be found at
www.census.gov/foreign-trade/aes/
documentlibrary/#concordance. The
Introduction Chapter of the Schedule B
provides important information about
classifying products and interpretations of
the Schedule B, e.g., NESOI means Not
Elsewhere Specified or Included. In addition,
important information about products within
a particular chapter may be found at the
beginning of chapters.
* * * * *
25. Add Supplement No. 3 to part 746
to read as follows:
Supplement No. 3 to Part 746—
Countries Excluded From Certain
License Requirements of § 746.8
Countries listed in this supplement No. 3
have committed to implementing
substantially similar export controls on
Russia under their domestic laws and are
consequently excluded from certain
requirements in § 746.8 of the EAR, as
described in § 746.8(a)(4) and (5). The Scope
column of the following table identifies
whether the country receives a full or partial
exclusion. For countries with partial
exclusions, the items for which such
exclusions apply are listed in the Scope
column.
Country Scope Federal Register citation
Australia ........................................................ Full ............................................................... 87 FR [INSERT FR PAGE NUMBER], 3/3/2022.
Austria .......................................................... Full ............................................................... 87 FR [INSERT FR PAGE NUMBER], 3/3/2022.
Belgium ......................................................... Full ............................................................... 87 FR [INSERT FR PAGE NUMBER], 3/3/2022.
Bulgaria ........................................................ Full ............................................................... 87 FR [INSERT FR PAGE NUMBER], 3/3/2022.
Canada ......................................................... Full ............................................................... 87 FR [INSERT FR PAGE NUMBER], 3/3/2022.
Croatia .......................................................... Full ............................................................... 87 FR [INSERT FR PAGE NUMBER], 3/3/2022.
Cyprus .......................................................... Full ............................................................... 87 FR [INSERT FR PAGE NUMBER], 3/3/2022.
Czech Republic ............................................ Full ............................................................... 87 FR [INSERT FR PAGE NUMBER], 3/3/2022.
Denmark ....................................................... Full ............................................................... 87 FR [INSERT FR PAGE NUMBER], 3/3/2022.
Estonia .......................................................... Full ............................................................... 87 FR [INSERT FR PAGE NUMBER], 3/3/2022.
Finland .......................................................... Full ............................................................... 87 FR [INSERT FR PAGE NUMBER], 3/3/2022.
France .......................................................... Full ............................................................... 87 FR [INSERT FR PAGE NUMBER], 3/3/2022.
Germany ....................................................... Full ............................................................... 87 FR [INSERT FR PAGE NUMBER], 3/3/2022.
Greece .......................................................... Full ............................................................... 87 FR [INSERT FR PAGE NUMBER], 3/3/2022.
Hungary ........................................................ Full ............................................................... 87 FR [INSERT FR PAGE NUMBER], 3/3/2022.
Ireland ........................................................... Full ............................................................... 87 FR [INSERT FR PAGE NUMBER], 3/3/2022.
Italy ............................................................... Full ............................................................... 87 FR [INSERT FR PAGE NUMBER], 3/3/2022.
Japan ............................................................ Full ............................................................... 87 FR [INSERT FR PAGE NUMBER], 3/3/2022.
Latvia ............................................................ Full ............................................................... 87 FR [INSERT FR PAGE NUMBER], 3/3/2022.
Lithuania ....................................................... Full ............................................................... 87 FR [INSERT FR PAGE NUMBER], 3/3/2022.
Luxembourg .................................................. Full ............................................................... 87 FR [INSERT FR PAGE NUMBER], 3/3/2022.
Malta ............................................................. Full ............................................................... 87 FR [INSERT FR PAGE NUMBER], 3/3/2022.
Netherlands .................................................. Full ............................................................... 87 FR [INSERT FR PAGE NUMBER], 3/3/2022.
New Zealand ................................................ Full ............................................................... 87 FR [INSERT FR PAGE NUMBER], 3/3/2022.
Poland .......................................................... Full ............................................................... 87 FR [INSERT FR PAGE NUMBER], 3/3/2022.
Portugal ........................................................ Full ............................................................... 87 FR [INSERT FR PAGE NUMBER], 3/3/2022.
Romania ....................................................... Full ............................................................... 87 FR [INSERT FR PAGE NUMBER], 3/3/2022.
Slovakia ........................................................ Full ............................................................... 87 FR [INSERT FR PAGE NUMBER], 3/3/2022.
Slovenia ........................................................ Full ............................................................... 87 FR [INSERT FR PAGE NUMBER], 3/3/2022.
Spain ............................................................ Full ............................................................... 87 FR [INSERT FR PAGE NUMBER], 3/3/2022.
Sweden ......................................................... Full ............................................................... 87 FR [INSERT FR PAGE NUMBER], 3/3/2022.
United Kingdom ............................................ Full ............................................................... 87 FR [INSERT FR PAGE NUMBER], 3/3/2022.
PART 772—[AMENDED]
26. The authority citation for 15 CFR
part 772 continues to read as follows:
Authority: 50 U.S.C. 4801–4852; 50 U.S.C.
4601 et seq.; 50 U.S.C. 1701 et seq.; E.O.
13222, 66 FR 44025, 3 CFR, 2001 Comp., p.
783.
27. Section 772.1 is amended by
revising the definition of ‘‘Food’’ to read
as follows:
§ 772.1 Definitions of terms as used in the
Export Administration Regulations (EAR).
* * * * *
Food. Specific to exports and
reexports to North Korea, Syria, Crimea
region of Ukraine, and the so-called
Donetsk People’s Republic and Luhansk
People’s Republic regions of Ukraine,
food means items that are consumed by
and provide nutrition to humans and
animals, and seeds, with the exception
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Federal Register / Vol. 87, No. 42 / Thursday, March 3, 2022 / Rules and Regulations
of castor bean seeds, that germinate into
items that will be consumed by and
provide nutrition to humans and
animals. (Food does not include
alcoholic beverages.)
* * * * *
Thea D. Rozman Kendler,
Assistant Secretary for Export
Administration.
[FR Doc. 2022–04300 Filed 2–24–22; 3:10 pm]
BILLING CODE 3510–33–P
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