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.
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,
This document is scheduled to be published in the
Federal Register on 04/22/2024 and available online at
https://federalregister.gov/d/2024-08622, and on
https://govinfo.gov
E-mail:
Foreign.Policy@bis.doc.gov
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 § 734.9(j) of the EAR.
Iran is already subject to comprehensive export restrictions under U.S. law, including
licensing requirements described in § 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 § 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 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
https://www.bis.doc.gov/index.php/al...priority-items) 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 § 746.6 When Destined to the Temporarily Occupied Crimea region of Ukraine,
Under § 746.7 When Destined to Iran, and Under § 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 § 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 § 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
§ 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 § 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-ap****** collections of
information subject to the PRA:
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;
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.
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
https:/www.reginfo.gov/public/do/PRAMain 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 Administration Regulations (15
CFR parts 730 through 774) is amended as follows:
PART 746 – EMBARGOES AND OTHER SPECIAL CONTROLS
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).
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 § 746.6 When Destined
to the Temporarily Occupied Crimea region of Ukraine, Under § 746.7 When Destined to
Iran, and Under § 746.8 When Destined to Russia or Belaru
