US Announces New Export Controls and Sanctions in Response to Iran Attack on Israel

The U.S. announced new export controls and sanctions against Iran, as well as new export controls against Russia intended to address Iran’s support for Russia’s drone program, in response to Iran’s attack on Israel on April 13.

The Bureau of Industry and Security released a final rule that takes effect April 18 and adds the 39 remaining Harmonized System codes for goods from the Common High Priority List of low-level technologies that could be used in military goods to the Export Administration Regulations. Now all 50 6-digit subheadings in the list are included in the EAR.

The addition of the additional six-digit subheadings expands “the scope of items that require a license for export and reexport to Iran,” as well as the scope of foreign direct product rules on Iran, Russia, Belarus and the occupied Crimea region of Ukraine. A savings clause says goods on the water as of April 18 may still proceed to their destinations without a license.

The Office of Foreign Assets Control concurrently designated 16 individuals and two entities that are involved in “enabling Iran’s UAV production, including engine types that power Iran’s Shahed variant UAVs, which were used in the April 13 attack.” OFAC also sanctioned “three subsidiaries of Iranian automaker Bahman Group,” as well as the Bahman Group itself, for material support for Iran’s Islamic Revolutionary Guard Corps and “other entities designated pursuant to counterterrorism authorities.”

“Concurrent with this action, the United Kingdom is imposing sanctions targeting several Iranian military organizations, individuals and entities involved in Iran’s UAV and ballistic missile industries,” OFAC said.