Emergency Approval request letter for OMB

UNITED STATES DEPARTMENT OF COMMERCE
Bureau of Industry and Security
1401 Constitution Avenue, Suite 3896
Washington, DC 20230

February 24, 2022
MEMORANDUM FOR:

FROM:
SUBJECT:

Dominic Mancini
Deputy Director, Office of Information and
Regulatory Affairs
Office of Management and Budget
Digitally signed by

KAREN
KAREN NIES-VOGEL
Karen Nies-Vogel
Date: 2022.02.24
Director, Office of Exporter Services NIES-VOGEL 12:44:10 -05'00'
Request for OMB Emergency Review and Approval of
Information Collections for Implementation of Sanctions
Against Russia Under the Export Administration Regulations
(EAR)

On behalf of the Bureau of Industry and Security (BIS), I am seeking approval for emergency
Paperwork Reduction Act (PRA) clearance to allow the Department of Commerce (DOC), as
represented by BIS, to publish a Federal Register Notice (FRN) announcing the
Implementation of Sanctions Against Russia Under the Export Administration Regulations
(EAR).
BACKGROUND
In response to the Russian Federation’s (Russia’s) further invasion of Ukraine, with this final
rule, the Department of Commerce is adding new Russia-related license requirements and
licensing policies to the Export Administration Regulations (15 CFR parts 730 – 774) (EAR)
to protect U.S. national security and foreign policy interests. These new Russia-related
measures impose new Commerce Control List (CCL)-based license requirements for Russia;
add two new foreign “direct product” rules (FDP rules) specific to Russia and Russian
‘military end users;’ specify a license review policy of denial applicable to all of the license
requirements being added in this rule, with certain limited exceptions; significantly restrict the
use of EAR license exceptions; expand the existing Russia ‘military end use’ and ‘military
end user’ control scope to all items “subject to the EAR” other than food and medicine
designated as EAR99, or controlled under Export Control Classification Number (ECCN)
5A992.c and 5D992.c, unless for Russian “government end users” and Russian state-owned
enterprises (SoEs); transfer forty-five Russian entities from the EAR’s Military End-User
(MEU) List to its Entity List with an expanded license requirement of all items subject to the
EAR (including foreign-produced items subject to the Russia-MEU FDP rules); and add two
new Russia entities to and revise two existing Russia entities on the Entity List. Lastly, this
rule imposes comprehensive export and reexport restrictions for the so-called Donetsk
People’s Republic (DNR) and Luhansk People’s Republic (LNR) regions of Ukraine
(“Covered Regions of Ukraine”) and makes conforming revisions to export and reexport
restrictions for Crimea Region of Ukraine provisions.

JUSTIFICATION
The collection of information is needed prior to the expiration of the time period normally
associated with a routine submission for review under the provisions of the Paperwork
Reduction Act in order to respond fully to Russia’s further invasion of Ukraine. BIS is
imposing extensive sanctions on Russia by amending the EAR because Russia’s invasion of
Ukraine flagrantly violates international law, is contrary to U.S. national security and foreign
policy interests, and undermines global order, peace and security. The Commerce
Department’s sanctions are one aspect of the broad U.S. Government response to Russia’s
unprovoked aggression and are being imposed in coordination with international allies and
partners.
In response to Russia’s 2014 invasion of Ukraine and occupation of the Crimean region, the
U.S. Government, in coordination with its partners and allies, imposed restrictions on Russia,
including asset-blocking measures, licensing requirements applicable to exports, reexports,
and transfers (in-country) of items subject to the EAR destined for certain Russian entities,
and special controls on items subject to the EAR intended for use in specified Russian
industry sectors. Leading up to Russia’s further invasion of Ukraine, the U.S. Government
announced that should Russia encroach further on Ukraine’s territory, it would impose
additional, comprehensive sanctions with significant consequences.
The export control measures implemented in BIS’s final rule protect U.S. national security
and foreign policy interests by restricting Russia’s access to items that it needs to project
power and fulfill its strategic ambitions. These items include sophisticated technologies
designed and produced in the United States, as well as certain foreign-produced items that
contain or are based on U.S.-origin technology subject to the EAR or other technology subject
to the EAR that is an essential input to Russia’s key technology and other sectors. BIS is
primarily targeting the Russian defense, aerospace, and maritime sectors with these new
export controls. These export controls include controls on the export from abroad of certain
foreign-produced items that are subject to the EAR. Given the global dominance of U.S.origin software, technology, and equipment (including tooling), these new controls,
implemented in parallel with similarly stringent measures by partner and allied countries, will
cover a broad scope of items that Russia seeks to advance its strategic ambitions and,
consequently, will impair the country’s key industrial sectors.
BIS is implementing a new license requirement for Russia on items subject to the EAR and
classified under any ECCN in Categories 3 through 9 of the Commerce Control List, Supp.
No. 1 to part 774 of the EAR (CCL). The new license requirement is added under new §
746.8(a)(1) (Russia sanctions) in part 746 of the EAR (Embargoes and Other Special
Controls). License exceptions described in § 746.8(c)(1)-(7) may be used to overcome the
license requirement. When a license application is required, applications for such items will
be subject to a policy of denial. However, to minimize unintended consequences, a case-bycase review policy applies to applications to export, reexport, or transfer (in-country) items
that ensure safety of flight, maritime safety, meet humanitarian needs, enable government
space cooperation, allow transactions for items destined to specified Western subsidiaries and
joint ventures, support civil telecommunications infrastructure in certain countries, and allow

or support government-to-government activities. The case-by-case review policy will be used
to determine whether a transaction that meets the any of the listed criteria would benefit the
Russian government or defense sector.
Additionally, BIS is establishing two new foreign “direct product” rules (FDP rules) in
§ 734.9 of the EAR. The first relates to the entire country of Russia, as described in new §
734.9(f) (the “Russia FDP rule”). Foreign-produced items subject to the EAR under the
Russia FDP rule will be subject to the license requirement described in new § 746.8(a)(2) but
will be eligible for certain license exceptions described in § 746.8(c)(1)-(7). When a license
application is required, such applications will be subject to a general policy of denial but will
be subject to case-by-case review for certain circumstances described in § 746.8(b).
The second new FDP rule targets Russian ‘military end users,’ as described in new § 734.9(g)
(the “Russia-MEU FDP rule”). Foreign-produced items subject to the EAR under the RussiaMEU FDP rule will be subject to the license requirement described in new § 746.8(a)(3). No
license exceptions are available to overcome this license requirement, except as specified in
the Entity List entry for a Footnote 3 entity on the Entity List in supplement no. 4 to part 744
of the EAR, and such items will be subject to a policy of denial for all license applications, as
described in § 746.8(b).
BIS has determined that certain countries are committed to implementing substantially similar
export controls as part of their domestic sanctions against Russia. These countries are
identified in Supplement No. 3 to part 746 (Russia Exclusions List). They are excluded from
the requirements of the Russia and Russia-MEU FDP rules and the de minimis provisions
under Supplement No. 2 to part 734 of the EAR with respect to ECCNs that either specify
only Anti-terrorism (AT) in the reason for controls paragraph of the ECCN or are classified
under ECCN 9A991. This exclusion from requirements may be full or partial, as noted in the
Scope column of the Russia Exclusions List and may only apply when the criteria specified in
§ 746.8(a)(4) or (a)(5) are met. In addition, the Russia Exclusions List includes certain
countries that have committed to implementing substantially similar controls under their
domestic laws but have not yet implemented them. A “pending” designation applies to these
countries.
BIS also is expanding the scope of the existing ‘military end use’ and ‘military end user’
controls under § 744.21 of the EAR for Russia to apply to all items “subject to the EAR”
except food and medicine designated EAR99 or items controlled under ECCNs 5A992.c or
5D992.c unless the items are for Russian “government end users” and Russian state-owned
enterprises (SoEs). In conjunction with this change, this rule removes forty-five Russian
entities from the Military End-User (MEU) List in Supplement No. 7 to part 744 and adds
them to the Entity List with an expanded license requirement for the export, reexport, and
transfer (in-country) of all items “subject to the EAR,” including those items subject to the
Russia-MEU FDP rule for ‘military end users’ in Russia. Finally, BIS is adding two new
Russian entities to the Entity List under this final rule and revising two existing Russian
entries on the Entity List.