BIS Amends Country Groups, Increases License Restrictions for Exports to Russia, Yemen

The Bureau of Industry and Security revised the country groups for Russia and Yemen under the Export Administration Regulations (see 2001090040), BIS said in a notice. The changes increase license restrictions for both countries and are part of a larger effort within BIS that involves a “comprehensive review” of all country groups to better align with the administration's foreign policy concerns. All shipments now requiring a license as a result of this rule that were on dock for loading or aboard a carrier to a port as of Feb. 24 may proceed to their destinations under the previous eligibility, BIS said. Shipments that have not been exported, re-exported or transferred by March 25 will require a license.

The rule removes Russia from Country Groups A2 (Missile Technology Control Regime) and A4 (Nuclear Suppliers Group) while adding the country to “Country Groups of concern” D2 (Nuclear) and D4 (Missile Technology). The changes remove a “number of” license exceptions for exports to Russia and imposes a license requirement on certain goods on the Commerce Control List. BIS will also impose a policy of presumption of denial for all exports controlled under the EAR for proliferation of chemical and biological weapons, nuclear nonproliferation and missile technology. However, BIS will review other exports in support of U.S.-Russia “civil space cooperation activities or commercial space launches” -- including commodities, software and technology -- on a case-by-case basis.

BIS said the changes will address U.S. concerns about Russia’s “lack of cooperation and accountability” for U.S.-origin items and the diversion of exports to unauthorized or blocked end-users. The agency also said Russia has “not been cooperative” in allowing BIS to conduct pre-license checks or post-shipment verification for U.S.-origin goods.

The rule also removes Yemen from Country Group B and places it in the country group of concern Country Group D1 (National Security). The move removes several license exceptions for shipments of limited value (LVS), shipments to Country Group B countries (GBS) and technology and software under restriction (TSR). Yemen will also be subject to license restrictions related to temporary imports, exports, re-exports, transfers, servicing and replacement of parts and equipment, humanitarian donations, aircrafts and vessels, encryption and more. BIS said it will approve national security-controlled exports to Yemen when the agency determines, on a case-by-case basis, that the goods will be used for civilian purposes and will not contribute to Yemen’s military.

BIS also said it will impose license restrictions on exports of “certain microprocessors” to military end-uses and end-users in addition to restrictions on exports to ships and aircrafts at Yemeni ports. The agency will also expand licensing requirements for certain re-exports of foreign-produced goods containing U.S.-origin technology and software.

BIS increased restrictions on Yemen to address concerns about diversion of U.S.-origin items in Yemen, specifically for proliferation activities, end-uses and end-users. BIS also said it is concerned about the diversion of U.S.-origin goods in Yemen that are controlled for national security reasons. The agency cited the “ongoing conflict” in Yemen, which has “fostered international terrorism and instability” in the region, including weapons proliferation.