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BIS Adds 7 Iranian Drone Producers to Entity List for Aiding Russia

February 1, 2023 by Ian Cohen|Top News

The Bureau of Industry and Security added seven Iranian entities to the Entity List this week for their involvement in drone transfers to Russia, the agency said in a final rule. The entities are Iranian producers of unmanned aerial vehicles, top BIS export enforcement official, Matthew Axelrod, said during a Toronto conference this week, adding that Russia is using the drones to “attack civilian infrastructure” in Ukraine.

The final rule applies some of the "most severe [BIS] export restrictions on these entities, effectively cutting them off from legally accessing items made subject to U.S. jurisdiction," the agency said in an emailed news release. "Today’s action serves to further U.S. efforts to cut the Russian military off from the items and sources of support it needs to sustain its unjust and illegal war against Ukraine."

Each of the entities will be subject to the Russia/Belarus-Military End User Foreign Direct Product rule, which imposes strict licensing requirements on certain foreign-made items destined to those entities if they contain or were made with certain U.S.-origin items. The entities will also require a license for all items subject to the Export Administration Regulations, and BIS will review license applications under a policy of denial except for food and medicine designated as EAR99, which will be reviewed on a case-by-case basis. No license exceptions will be available.

All exports that now require a license as a result of the changes that were aboard a carrier to a port as of Jan. 31 may proceed to their destinations under the previous eligibility without a license before March 3, BIS said. Any items not exported by March 3 will require a license.

The new Entity List additions are:

Iran