Rule2024-08622
Export Control Measures Under the Export Administration Regulations (EAR) To Address Iranian Aggression Against Israel and Military Support for Russia
Primary source
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Published
April 22, 2024
Effective
April 18, 2024
Issuing agencies
Commerce DepartmentIndustry and Security Bureau
Abstract
In this final rule, the Bureau of Industry and Security (BIS) makes changes to the Export Administration Regulations (EAR) to expand the scope of items that require a license for export and reexport to Iran; this rule also expands the scope of the Russia/Belarus/ Temporarily occupied Crimea region of Ukraine Foreign Direct Product (FDP) rule and the Iran FDP rule. Certain foreign-made items located outside of the United States are subject to the EAR because they meet criteria specified under one of the FDP rules under the EAR. This final rule expands the product scope of two of the FDP rules to make additional items subject to the EAR and imposes a license requirement when they are reexported or exported from abroad to Iran, Russia, Belarus, or the Temporarily occupied Crimea region of Ukraine. Prior to this rule, BIS had not controlled all foreign transactions involving items covered by this rule, but in light of recent events and the need to fully leverage EAR controls to address U.S. national security and foreign policy interests, these additional controls are now warranted under the EAR.
Full Text
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<title>Federal Register, Volume 89 Issue 78 (Monday, April 22, 2024)</title>
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[Federal Register Volume 89, Number 78 (Monday, April 22, 2024)]
[Rules and Regulations]
[Pages 29254-29257]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-08622]
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DEPARTMENT OF COMMERCE
Bureau of Industry and Security
15 CFR Part 746
[Docket No. 240417-0112]
RIN 0694-AJ61
Export Control Measures Under the Export Administration
Regulations (EAR) To Address Iranian Aggression Against Israel and
Military Support for Russia
AGENCY: Bureau of Industry and Security, Department of Commerce.
ACTION: Final rule.
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SUMMARY: In this final rule, the Bureau of Industry and Security (BIS)
makes changes to the Export Administration Regulations (EAR) to expand
the scope of items that require a license for export and reexport to
Iran; this rule also expands the scope of the Russia/Belarus/
Temporarily occupied Crimea region of Ukraine Foreign Direct Product
(FDP) rule and the Iran FDP rule. Certain foreign-made items located
outside of the United States are subject to the EAR because they meet
criteria specified under one of the FDP rules under the EAR. This final
rule expands the product scope of two of the FDP rules to make
additional items subject to the EAR and imposes a license requirement
when they are reexported or exported from abroad to Iran, Russia,
Belarus, or the Temporarily occupied Crimea region of Ukraine. Prior to
this rule, BIS had not controlled all foreign transactions involving
items covered by this rule, but in light of recent events and the need
to fully leverage EAR controls to address U.S. national security and
foreign policy interests, these additional controls are now warranted
under the EAR.
DATES: This rule is effective on April 18, 2024.
FOR FURTHER INFORMATION CONTACT: For questions on this final rule,
contact Tracy Patts, Supervisory Export Policy Analyst, Office of
Nonproliferation and Foreign Policy Controls, Bureau of Industry and
Security, Department of Commerce, Phone: 202-482-4252, Email:
<a href="/cdn-cgi/l/email-protection#aceac3dec9c5cbc282fcc3c0c5cfd5eccec5df82c8c3cf82cbc3da"><span class="__cf_email__" data-cfemail="c88ea7baada1afa6e698a7a4a1abb188aaa1bbe6aca7abe6afa7be">[email protected]</span></a>
For emails, include ``supplement no. 7'' in the subject line.
SUPPLEMENTARY INFORMATION:
I. Background
On April 13, 2024, the Islamic Republic of Iran and its proxies
conducted an unprecedented air attack on Israel. Iran's destabilizing
actions endanger the region and all its people. In addition, Iran's
military cooperation with Russia has increased Russia's capacity to
wage war against Ukraine while enabling advancements in Iran's and
Russia's military capabilities. Consistent with the U.S. Government's
commitment to restrict Iran from obtaining any item that might
contribute to its manufacture of missiles, including those used against
Israel and Ukraine, this rule amends the EAR to impose new controls
restricting Iran's access to additional low-level technology, including
items manufactured outside the United States that are produced using
U.S. technology, i.e., through the Iran FDP Rule in Sec. 734.9(j) of
the EAR.
Iran is already subject to comprehensive export restrictions under
U.S. law, including licensing requirements described in Sec. 746.7 of
the EAR. This rule builds on BIS's February 2023 action that targeted
Iran's involvement in supplying Unmanned Aerial Vehicles (UAVs) in
support of Russia's war in Ukraine (see 88 FR 12150, February 24, 2023)
In that rule, BIS imposed export and reexport license requirements on a
subset of EAR99 items, i.e., items not specified on the Commerce
Control List (CCL, supplement no. 1 to part 774 of the EAR) if destined
to Iran, regardless of whether a U.S. person is involved in the
transaction. BIS also added a new Iran Foreign Direct Product rule for
items in certain categories of the CCL and for certain other items
identified by Harmonized Tariff System Codes at the six-digit level
(HTS-6 Codes) in supplement no. 7 to part 746 of the EAR in the
February 24, 2023 rule. On January 23, 2024, BIS expanded the list of
items included in supplement no. 7 to part 746 of the EAR (see 89 FR
4804, January 23, 2024).
Russia, Belarus, and certain temporarily occupied regions of
Ukraine have been subjected to increasing export controls since
Russia's full-scale invasion of Ukraine on February 24, 2022. There are
now thousands of categories of items controlled to these destinations,
including those controlled together with substantially aligned allies
and partners in the Global Export Control Coalition (GECC). Export
controls in the EAR extend to foreign produced items caught by the
Russia/Belarus/Temporarily occupied Crimea region of Ukraine FDP rule
in Sec. 734.9(f) of the EAR (Russia FDPR), ensuring that foreign items
produced with controlled software and technology are also caught by
U.S. restrictions. The continued expansion of controls on Russia,
Belarus, and the temporarily occupied regions of Ukraine meets U.S.
national security and foreign policy objectives to continue the
degradation of Russia's ability to execute its war against Ukraine.
This action is consistent with U.S. policy objectives to continue
to strengthen the impact of export control measures in response to
Iran's attack on Israel and Iran's support for Russia's war in Ukraine
by limiting Iran's and Russia's access to certain EAR99 items critical
to their weapons programs.
II. Overview of New Controls
This rule revises the EAR to enhance and strengthen existing
measures against Iran, Russia, and Belarus. Specifically, this rule
further expands the list of items included in supplement no. 7 to part
746 to include additional items that are critical to Iran and
[[Page 29255]]
Russia's weapons programs. The export control measures in this final
rule build upon the national security and foreign policy objectives of
the United States. The expansion of items included in supplement no. 7
to part 746 will enhance the effectiveness of export controls on Iran
and Russia by further limiting access to items that enable their
military capabilities.
While BIS's controls cover a vast array of items necessary to the
defense industries of Iran and Russia, certain items are more
significant to their weaponry than others. The items in supplement no.
7 to part 746 will now include the entirety of the `Common High
Priority List' (CHPL). (See <a href="https://www.bis.doc.gov/index.php/all-articles/13-policy-guidance/country-guidance/2172-russia-export-controls-list-of-common-high-priority-items">https://www.bis.doc.gov/index.php/all-articles/13-policy-guidance/country-guidance/2172-russia-export-controls-list-of-common-high-priority-items</a>) BIS, in coordination with
its partners in the European Union, Japan, and the United Kingdom,
developed the CHPL to jointly identify items used in Russian weapons
development by HTS-6 Codes. The 50 CHPL HTS-6 Codes include electronic
components such as integrated circuits and radio frequency (RF)
transceiver modules, items essential for the manufacturing and testing
of electronic components, and computer numerically controlled (CNC)
machine tools. Iran's drone program is also dependent on foreign
sources for these items. In adding 39 additional items to supplement
no. 7 to part 746, the supplement will now include all 50 Common High
Priority items.
III. Amendments to the EAR
This rule expands the list of items in supplement no. 7 to part 746
(Items That Require a License Under Sec. 746.6 When Destined to the
Temporarily Occupied Crimea region of Ukraine, Under Sec. 746.7 When
Destined to Iran, and Under Sec. 746.8 When Destined to Russia or
Belarus) by adding 39 additional HTS-6 Code entries (845710, 845811,
845891, 845961, 846693, 847180, 848210, 848220, 848230, 848250, 848610,
848620, 848640, 850440, 851769, 852589, 852990, 853400, 853669, 853690,
854110, 854121, 854129, 854130, 854149, 854151, 854159, 854160, 854320,
880730, 901310, 901380, 901420, 901480, 902750, 903020, 903032, 903039,
and 903082).
All items subject to the EAR that are classified under these HTS-6
entries already require a license for export, reexport, or transfer
(in-country) to Russia and Belarus under Sec. 746.5 of the EAR. In
addition, CCL and U.S.-origin EAR99 items classified under these HTS-6
entries are prohibited for export or reexport to Iran under Sec.
746.7(e) of the EAR. By adding these items to supplement no. 7 to part
746, BIS jurisdiction over foreign produced items in these categories
will be expanded, which will in turn expand license requirements for
Russia and Belarus under Sec. 746.8(a)(2). The addition of these codes
to supplement no. 7 to part 746 will also expand EAR restrictions over
foreign transactions with Iran under Sec. 746.7(a). The restrictions
on these items are intended to further undermine the ability of Iran
and Russia to support the production of missiles, drones, and other
military items for use against Israel and Ukraine.
Savings Clause
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
April 18, 2024, 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), provided the export, reexport, or transfer (in-country)
is completed no later than on May 20, 2024.
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. 4801-4852). ECRA provides the legal basis for
BIS's principal authorities and serves as the authority under which BIS
issues this rule.
Rulemaking Requirements
1. BIS has examined the impact of this rule as required by
Executive Orders 12866, 13563, and 14094, which direct agencies to
assess all costs and benefits of available regulatory alternatives and,
if regulation is necessary, to select regulatory approaches that
maximize net benefits (e.g., potential economic, environmental, public,
health, and safety effects, distributive impacts, and equity). Pursuant
to E.O. 12866, as amended, this final rule is not a ``significant
regulatory action.''
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:
<bullet> 0694-0088, ``Simple Network Application Process and
Multipurpose Application Form,'' which carries a burden hour estimate
of 29.4 minutes for a manual or electronic submission;
<bullet> 0694-0096 ``Five Year Records Retention Period,'' which
carries a burden hour estimate of less than 1 minute; and
<bullet> 0607-0152 ``Automated Export System (AES) Program,'' which
carries a burden hour estimate of 3 minutes per electronic submission.
BIS estimates that these new controls on Iran under the EAR will
result in an increase of five license applications submitted annually
to BIS. However, the additional burden falls within the existing
estimates currently associated with these control numbers. Additional
information regarding these collections of information--including all
background materials--can be found at <a href="https://www.reginfo.gov/public/do/PRAMain">https://www.reginfo.gov/public/do/PRAMain</a> by using the search function to enter either the title of
the collection or the OMB Control Number.
3. This rule does not contain policies with federalism implications
as that term is defined in E.O. 13132.
4. Pursuant to section 1762 of ECRA (50 U.S.C. 4821), 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 neither the Administrative Procedure Act nor any other
law requires that notice of proposed rulemaking and an opportunity for
public comment be given for this rule, the analytical requirements of
the Regulatory Flexibility Act (5 U.S.C. 601 et seq.) are not
applicable. Accordingly, no Final Regulatory Flexibility Analysis is
required and none has been prepared.
List of Subjects in 15 CFR Part 746
Exports, Reporting and recordkeeping requirements.
For the reasons stated in the preamble, part 746 of the Export
[[Page 29256]]
Administration Regulations (15 CFR parts 730 through 774) is amended as
follows:
PART 746--EMBARGOES AND OTHER SPECIAL CONTROLS
0
1. 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. 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 19, 2022, 87 FR 57569 (September 21, 202); Notice of
November 8, 2022, 87 FR 68015, 3 CFR, 2022 Comp., p. 563; Notice of
September 7, 2023, 88 FR 62439 (September 11, 2023).
0
2. Supplement no. 7 to part 746 is amended by adding in numerical order
the following entries to the table: 845710, 845811, 845891, 845961,
846693, 847180, 848210, 848220, 848230, 848250, 848610, 848620, 848640,
850440, 851769, 852589, 852990, 853400, 853669, 853690, 854110, 854121,
854129, 854130, 854149, 854151, 854159, 854160, 854320, 880730, 901310,
901380, 901420, 901480, 902750, 903020, 903032, 903039, and 903082.
Supplement No. 7 to Part 746--Items That Require a License Under Sec.
746.6 When Destined to the Temporarily Occupied Crimea Region of
Ukraine, Under Sec. 746.7 When Destined to Iran, and Under Sec. 746.8
When Destined to Russia or Belarus
* * * * *
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HTS-6 codes HTS description
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* * * * * * *
845710................... Machining centers for working metal.
845811................... Horizontal lathes for removing metal,
numerically controlled.
845891................... Lathes, excluding horizontal, for removing
metal, numerically controlled.
845961................... Milling machines, not knee type, for removing
metal, numerically controlled.
846693................... Parts and accessories for machine tools, for
laser operation, metalworking machining
centers, lathes and drilling machines, etc.,
NESOI.
* * * * * * *
847180................... Automatic data processing units, NESOI.
848210................... Ball bearings.
848220................... Tapered roller bearings, including cone and
tapered roller assemblies.
848230................... Spherical roller bearings.
848250................... Cylindrical roller bearings NESOI.
848610................... Machines and apparatus for the manufacture of
boules or wafers.
848620................... Machines and apparatus for the manufacture of
semiconductor devices or of electronic
integrated circuits.
848640................... Machines and apparatus for the manufacture or
repair of masks and reticles; for assembling
semiconductors devices; for lifting,
handling, loading or unloading of semi-
conductor devices.
850440................... Electrical static converters; power supplies
for ADP machines or units of 8471.
* * * * * * *
851769................... Apparatus for the transmission or reception
of voice, images or other data, including
switching and routing apparatus, NESOI.
852589................... Television cameras, digital cameras and video
camera recorders.
* * * * * * *
852990................... Parts (except antennas and reflectors) sfor
use with radio transmission, radar, radio
navigational aid, reception and television
apparatus, NESOI.
* * * * * * *
853400................... Printed circuits.
853669................... Electric plugs and sockets for a voltage not
exceeding 1,000 V.
853690................... Electrical apparatus for switching,
protecting or making connections to or in
electrical circuits, for a voltage not
exceeding 1,000 V, NESOI.
854110................... Diodes, other than photosensitive or light-
emitting diodes.
854121................... Transistors, other than photosensitive, with
a dissipation rate of less than 1W.
854129................... Transistors, other than photosensitive,
NESOI.
854130................... Thyristors, diacs and triacs, other than
photosensitive devices.
854149................... Photosensitive semiconductor devices,
excluding photovoltaic generators and cells.
854151................... Semiconductor-based transducers, NESOI.
854159................... Semiconductor devices NESOI.
854160................... Mounted piezoelectric crystals.
* * * * * * *
854320................... Electrical signal generators.
* * * * * * *
880730................... Other parts of airplanes, helicopters or
unmanned aircraft.
901310................... Telescopic sights for fitting to arms;
periscopes; telescopes designed to form
parts of machines, appliances, instruments
or apparatus of this chapter or Section XVI.
901380................... Other optical devices, appliances and
instruments not elsewhere specified.
901420................... Instruments and appliances for aeronautical
or space navigation (other than compasses).
901480................... Other navigational instruments and
appliances.
902750................... Other instruments and apparatus using optical
radiations (ultraviolet, visible, infrared).
903020................... Oscilloscopes and oscillographs.
903032................... Multimeters with recording device.
[[Page 29257]]
903039................... Instruments and apparatus for measuring or
checking voltage, current, resistance or
electrical power, with recording device.
903082................... Oscilloscopes, spectrum analyzers and other
instruments and apparatus for measuring or
checking electrical quantities, for
measuring or checking semiconductor wafers
or devices.
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Thea D. Rozman Kendler,
Assistant Secretary for Export Administration.
[FR Doc. 2024-08622 Filed 4-18-24; 11:15 am]
BILLING CODE 3510-JT-P
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