Implementation of Sanctions Against Russia Under the Export Administration Regulations (EAR), 12226-12251 [2022-04300]

Agencies

• DEPARTMENT OF COMMERCE
• Bureau of Industry and Security

[Federal Register Volume 87, Number 42 (Thursday, March 3, 2022)]
[Rules and Regulations]
[Pages 12226-12251]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-04300]



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Vol. 87

Thursday,

No. 42

March 3, 2022

Part II





Department of Commerce





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Bureau of Industry and Security





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15 CFR Parts 734, 738, 740, et al.





Implementation of Sanctions Against Russia Under the Export 
Administration Regulations (EAR); Final Rule

Federal Register / Vol. 87 , No. 42 / Thursday, March 3, 2022 / Rules 
and Regulations

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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Parts 734, 738, 740, 742, 744, 746, and 772

[Docket No. 220215-0048]
RIN 0694-AI71


Implementation of Sanctions Against Russia Under the Export 
Administration Regulations (EAR)

AGENCY: Bureau of Industry and Security, Department of Commerce.

ACTION: Final rule.

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SUMMARY: 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 license requirements and licensing policies to the 
Export Administration Regulations (EAR) to protect U.S. national 
security and foreign policy interests. These new Russia 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 EAR99, or 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 Military End-User (MEU) 
List to the 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 and revise 
two Russia entities to the Entity List. Lastly, this rule imposes 
comprehensive export, reexport and transfer (in-country) restrictions 
for the so-called Donetsk People's Republic (DNR) and Luhansk People's 
Republics (LNR) regions of Ukraine (``Covered Regions of Ukraine'') and 
makes conforming revisions to export, reexport transfer (in-country) 
restrictions for Crimea Region of Ukraine provisions.

DATES: This rule is effective February 24, 2022.

FOR FURTHER INFORMATION CONTACT: For questions on the Entity List and 
MEU List, contact the Chair, End-User Review Committee, Office of the 
Assistant Secretary, Export Administration, Bureau of Industry and 
Security, Department of Commerce, Phone: (202) 482-5991, Fax: (202) 
482-3911, Email: [email protected].
    For other questions on this final rule, contact Eileen Albanese, 
Director, Office of National Security and Technology Transfer Controls, 
Bureau of Industry and Security, Department of Commerce, Phone: (202) 
482-0092, Fax: (202) 482-3355, Email: [email protected]. For emails, 
include ``Russia'' in the subject line.

SUPPLEMENTARY INFORMATION:

I. Background

    In response to the Russian Federation's (Russia's) further invasion 
of Ukraine, the Bureau of Industry and Security (BIS) imposes extensive 
sanctions on Russia by amending the Export Administration Regulations 
(15 CFR parts 730-774) (EAR). 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, and therefore necessitates these stringent and expansive 
sanctions. 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 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 this 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 that is subject to the EAR that 
are essential inputs 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 impair 
the country's key industrial sectors.

II. Overview of New Controls

    BIS is implementing a new license requirement for Russia on items 
subject to the EAR and classified under any Export Control 
Classification Number (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 Sec.  746.8(a)(1) (Russia sanctions) in 
part 746 of the EAR (Embargoes and Other Special Controls). License 
exceptions described in Sec.  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-by-case 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, and allow 
transactions for items destined to specified Western subsidiaries and 
joint ventures, support civil telecommunications infrastructure in 
certain countries, and government-to-government activities. The case-
by-case review policy will be used to determine whether a transaction 
that meets the criteria above would benefit the Russian government or 
defense sector. Additionally, BIS is establishing two new foreign 
``direct product'' rules (FDP rules) in Sec.  734.9 of the EAR. The 
first relates to the entire country of Russia, as described in new 
Sec.  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 Sec.  746.8(a)(2) but will be 
eligible for certain license exceptions described in Sec.  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

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circumstances described further in Sec.  746.8(b).
    The second new FDP rule targets Russian `military end users,' as 
described in new Sec.  734.9(g) (the ``Russia-MEU FDP rule''). Foreign-
produced items subject to the EAR under the Russia-MEU FDP rule will be 
subject to the license requirement described in new Sec.  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 Sec.  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 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 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 Sec.  746.8(a)(4) or (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.
    BIS also is expanding the scope of the existing `military end use' 
and `military end user' control under Sec.  744.21 of the EAR for 
Russia to apply to all items ``subject to the EAR'' except food and 
medicine designated EAR99, or ECCN 5A992.c and 5D992.c unless for 
Russian ``government end users'' and Russian state-owned enterprises 
(SoEs). At the same time, 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 adds two new 
Russian entities to the Entity List under this final rule and revises 
two existing entries for Russian entities on the Entity List.

III. Amendments to the Export Administration Regulations (EAR)

A. Implementation of New Sanctions Against Russia

Addition of Expansive License Requirements, Restrictive License Review 
Policies, and Restrictions on License Exception Eligibility for Russia

    This final rule adds Sec.  746.8 to impose new sanctions against 
Russia in part 746 of the EAR (Embargoes and Other Special Controls). 
Under paragraph (a) (License Requirements) of this new section, this 
final rule imposes three distinct types of license requirements. The 
first requirement, set forth in paragraph (a)(1) is specific to the 
export, reexport and transfer (in-country) of items in categories 3, 4, 
5, 6, 7, 8 or 9 of the CCL. The second and third requirements, set 
forth in paragraphs (a)(2) and (3) are specific to reexport, export 
from abroad, and transfer (in-country) of foreign-produced ``direct 
products'' subject to the EAR under the Russia or Russia-MEU FDP rules.
1. Section 746.8(a)(1) License Requirement
    New Sec.  746.8(a)(1) (Items classified in an ECCN in CCL 
Categories 3 through 9) is supplemental to the license requirements 
found elsewhere in the EAR. Under this paragraph, a license is required 
for the export, reexport, or transfer (in-country) to or within Russia 
of any item subject to the EAR and specified in an ECCN in Categories 
3, 4, 5, 6, 7, 8, or 9 of the CCL, excluding deemed exports and deemed 
reexports. In implementing these controls, BIS imposes broad transfer 
(in-country) requirements on an entire country, reflecting the 
significance of the U.S. national security and foreign policy concerns, 
resulting from the Russian further invasion of Ukraine. These license 
requirements are intended to further restrict items to the Russian 
military and defense sector. Additionally, paragraph (a)(1) extends EAR 
license requirements to many items that did not previously require a 
license to Russia on the basis of their CCL classification alone, such 
as the parts and components used in civil aircraft controlled under 
ECCN 9A991.d. Although these items generally are controlled at a lower 
level under the EAR, they are still necessary for the functioning of 
aircraft, vessels and electronic items. As such, restrictions on these 
items can significantly limit Russia's ability to obtain items it is 
not able to produce. In addition, with these new license requirements, 
additional items will be treated as controlled U.S.-origin content for 
purposes of de minimis calculations under supplement no. 2 to part 734 
of the EAR, except as described in Sec.  746.8(a)(5). BIS estimates 
that these new controls will result in an additional 350 license 
applications being submitted to BIS annually.
2. Section 746.8(a)(2) License Requirement for the Russia FDP Rule
    New paragraph (a)(2) (Foreign-produced ``direct product'' items 
subject to the EAR under Russia FDP rule) requirements are imposed in 
conjunction with the simultaneous creation of a new foreign ``direct 
product'' rule specific to Russia (Russia FDP rule) in Sec.  734.9(f) 
of the EAR. The Russia FDP rule establishes a license requirement for 
foreign-produced items that meet certain product scope and destination 
scope requirements in Sec.  734.9(f) of the EAR. Specifically, the 
Russia FDP rule makes the ``direct product'' of a wide range of CCL 
software and technology, or items produced by a complete plant or 
`major component' of a plant that itself is the ``direct product'' of 
such U.S.-origin technology or software, when it is known that the 
foreign-produced item is destined to Russia or will be incorporated 
into or used in the ``production'' or ``development'' of any ``part,'' 
``component,'' or ``equipment'' produced in or destined to Russia. 
Notably, the product scope of the Russia FDP rule does not include 
items designated EAR99 that are produced by ``technology'' or 
``software'' as described in Sec.  734.9(f)(1)(i) or by a complete 
plant or `major component' of a plant as described in Sec.  
734.9(f)(1)(ii). The Russia FDP rule is described in greater detail 
below.
    Under paragraph (a)(2), a license is required for the reexport, 
export from abroad, or transfer (in-country) of any foreign-produced 
items subject to the EAR under the Russia FDP Rule described in Sec.  
734.9(f) of the EAR to any destination. The phrase `any destination' is 
used to address situations involving multi-step manufacturing processes 
that occur in more than one country and in which the parties involved 
have ``knowledge'' that the foreign-produced item being produced will 
ultimately be reexported or exported from abroad to Russia. The license 
requirements under paragraph (a)(2) will apply to the reexports or 
exports from abroad from manufacturing country 1 to manufacturing 
country 2 (each contributing to the production chain), when there is 
``knowledge'' that the reexport or export from abroad of the item is 
ultimately destined to Russia or incorporated into or used in the

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production or development of any part component or equipment (not 
designated EAR99) produced in or ultimately destined to Russia.
    BIS estimates new license requirements under Sec.  746.8(a)(2) will 
result in an additional 2,000 license applications being submitted to 
BIS annually.
3. Section 746.8(a)(3) License Requirement for the Russia-MEU FDP Rule
    New paragraph (a)(3) (Foreign-produced ``direct product'' items 
subject to the EAR under Russia-Military End User FDP Rule) 
requirements are imposed in conjunction with the simultaneous creation 
by this rule of a new foreign ``direct product'' rule specific to 
Russia (Russia-Military End User FDP Rule) in Sec.  734.9(g) of the 
EAR. The Russia-Military End User FDP rule establishes a license 
requirement for foreign-produced items that meet certain product scope 
and destination scope requirements in Sec.  734.9(g) of the EAR. 
Specifically, this Russia-Military End User FDP rule makes the ``direct 
product'' of a wide range of CCL software and technology (any software 
or technology in an ECCN in any category of the CCL subject to the EAR, 
or items produced by a plant or major component of a plant that itself 
is the ``direct product'' of such U.S.-origin technology or software) 
when it is known that the foreign-produced item will be incorporated 
into, or will be used in the ``production'' or ``development'' of any 
``part,'' ``component,'' or ``equipment'' produced, purchased, or 
ordered by any entity with a footnote 3 designation in the license 
requirement column of the Entity List. Notably, the product scope of 
the Russia-Military End User FDP rule includes items designated EAR99 
that are a ``direct product'' of ``technology'' or ``software'' 
described in Sec.  734.9(g)(1)(i) or produced by a complete plant or 
`major component' of a plant as described in Sec.  734.9(g)(1)(ii). The 
Russia-MEU FDP rule is described in greater detail below.
    Section 746.8(a)(3) specifies that except as described in paragraph 
(a)(4) of this section, a license is required to reexport, export from 
abroad, or transfer (in-country), to any destination, any foreign-
produced item subject to the EAR under Sec.  734.9(g) of the EAR other 
than food or medicine designated as EAR99, or ECCN 5A992.c and 5D992.c 
unless for Russian ``government end users'' and Russian state-owned 
enterprises (SoEs). Because the Russia-Military End User FDP rule 
includes ``software'' and ``technology'' in ECCNs in Categories 0, 1 
and 2 (in addition to the other 7 categories of the CCL), the 
likelihood that EAR99 food and medicine foreign direct products could 
be subject to the EAR increases. To the extent that the direct product 
of ECCN 0, 1, and 2 may encompass EAR99 food or medicine, this rule 
exempts those items from the license requirement. For the same reasons 
noted above in connection with paragraph (a)(2), this final rule also 
uses the phrase `any destination.'
4. Countries Excluded From Certain Russia License Requirements Under 
Section 746.8
    This final rule also adds a new paragraph Sec.  746.8(a)(4) 
(Exclusion from license requirements under paragraphs (a)(2) and (3)) 
to identify countries that BIS has determined are committed to 
implementing substantially similar export controls as part of their 
domestic sanctions against Russia. These countries warrant full or 
partial exclusions, as appropriate, from the requirements set forth 
under paragraphs (a)(2) and (3) as identified in supplement No. 3 to 
part 746 (Russia Exclusions List). Similarly, this final rule adds new 
paragraph (a)(5) (Exclusion from scope of U.S.-origin controlled 
content under paragraph (a)(1)) to carve out certain content from the 
scope of U.S.-origin controlled content for de minimis purposes under 
supplement No. 2 to part 734 of the EAR when making a de minimis 
calculation for Russia. New paragraph (a)(5) specifies that the license 
requirements in paragraph (a)(1) of this section are not used to 
determine controlled U.S.-origin content in a foreign-made item, 
provided that: The U.S.-origin content is described in ECCNs that 
either specify only Anti-terrorism (AT) in the reason for controls 
paragraph of the ECCN or is classified under ECCN 9A991 and is included 
in the Scope column of the Russia Exclusions List; and the foreign-made 
item will be reexported or exported to Russia from a country in the 
Russia Exclusions List.
    As a conforming change, this final rule also revises supplement No. 
2 to part 734--Guidelines for De Minimis Rules, by revising the third 
sentence of paragraph (a)(1), which specifies using the license 
requirements in part 746 for identifying U.S.-origin controlled content 
for de minimis content. This final rule adds a parenthetical phrase 
after part 746 to add the phrase ``excluding U.S.-origin content that 
meets the criteria in Sec.  746.8(a)(5).''
    Excluded countries for purposes of Sec.  746.8 are identified in 
new supplement No. 3 to part 746--Countries Excluded from Certain 
Russia License Requirements, also known as the Russia Exclusions List. 
The new supplement includes three columns, identifying: (1) The 
countries for purposes of the exclusion under Sec.  746.8(a)(4) and 
(5); (2) the scope of the exclusion; and (3) the Federal Register 
document announcing the addition of such countries to the supplement. 
This final rule adds the twenty-seven countries of the European Union, 
Australia, Canada, Japan, New Zealand, and the United Kingdom, as the 
first countries in supplement No. 3 to part 746. The introductory text 
of the Russia Exclusions List specifies that exclusions may be full or 
partial. If a partial exclusion applies, the applicable ECCNs will be 
described in the Scope column of list.
5. Licensing Policy for Applications Required Under Section 746.8
    Under new Sec.  746.8(b) (Licensing policy), applications for the 
export, reexport or transfer (in-country) of items that require a 
license under new paragraph (a)(1) and (2) will be reviewed, with 
certain limited exceptions, under a policy of denial. License 
applications for certain categories of exports, reexports, and 
transfers (in-country) will be reviewed on a case-by-case basis to 
determine whether the transaction would benefit the Russian government 
or defense sector. These categories are as follows: Applications 
related to safety of flight, maritime safety, to meet humanitarian 
needs, in support of government space cooperation, applications for 
companies headquartered in Country Groups A:5 and A:6 to support civil 
telecommunications infrastructure, or involving government-to-
government activities. In addition, applications for items destined to 
certain companies operating in Russia will be reviewed on a case-by-
case basis if the companies are: (1) Wholly-owned U.S. subsidiaries; 
(2) foreign subsidiaries of U.S. companies that are joint ventures with 
other U.S. companies, (3) joint ventures of U.S. companies with 
companies headquartered in Country Group A:5 and A:6 in supplement no. 
1 to part 740 countries, (4) wholly-owned subsidiaries of companies 
headquartered in Country Group A:5 and A:6 in supplement no. 1 to part 
740 countries, or (5) joint ventures of companies headquartered in 
Country Group A:5 and A:6 with other companies headquartered in Country 
Groups A:5 and A:6. The case-by-case review policy does not apply to 
Russian-headquartered companies. This final rule also specifies in 
paragraph (b)

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that license applications required under paragraph (a)(3) will be 
reviewed under a policy of denial in all cases.
6. License Exceptions for Section 746.8 License Requirements
    Lastly, under new paragraph (c) (License Exceptions), this final 
rule specifies that certain license exceptions apply to Sec.  
746.8(a)(1) and (2). Specifically, the license exceptions that apply 
are: Certain sections of License Exception TMP for items for use by the 
news media, Sec.  740.9(a)(9); License Exception GOV, Sec.  740.11(b); 
License Exception TSU for software updates for civil end users provided 
those civil end users are subsidiaries or joint ventures of companies 
headquartered in the United States or a country or countries from 
Country Groups A:5 or A:6, Sec.  740.13(c); License Exception BAG, 
excluding firearms and ammunition (paragraph (e)), Sec.  740.14; 
License Exception AVS, Sec.  740.15 (a) and (b); License Exception ENC, 
excluding Russian ``government end users'' and Russian state owned 
enterprises (SOEs), Sec.  740.17; and License Exception CCD, Sec.  
740.19. This final rule also specifies in paragraph (c) that no license 
exceptions may overcome the license requirements in paragraph (a)(3) 
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, which is 
consistent with the fact that entities on the Entity List are generally 
not eligible for license exceptions.

B. New Russia and Russia-MEU FDP Rules

    In Sec.  734.9 (Foreign-Direct Product (FDP) Rules), this final 
rule adds two new Foreign-Direct Product (FDP) rules as part of the new 
Russia sanctions. The first rule targets Russia as a destination, and 
the second targets Russian `military end users.'
1. Addition of Russia FDP Rule
    Through the Russia FDP rule set out in new paragraph (f) of Sec.  
734.9 of the EAR, this rule establishes that a foreign-produced item 
located outside the United States is subject to the EAR if it meets 
both the product scope in paragraph (f)(1) of this section and the 
destination scope in paragraph (f)(2). License requirements, license 
review policy, and license exceptions applicable to the foreign-
produced items that are subject to the EAR pursuant to this paragraph 
(f) are identified in Sec.  746.8, described above. Product scope for 
the Russia FDP rule is defined in paragraph (f)(1)(i) (``Direct 
product'' of ``technology'' or ``software'') and paragraph (f)(1)(ii) 
(``Direct product'' of a complete plant or major component of a plant).
    The criteria in paragraph (f)(1)(i) applies to a foreign-produced 
item that is not designated EAR99 and that is the ``direct product'' of 
U.S.-origin ``technology'' or ``software'' specified in any ECCN in 
product groups D or E in Categories 3, 4, 5, 6, 7, 8, or 9 of the CCL. 
The criteria in paragraph (f)(1)(ii) applies to a foreign-produced item 
that is not designated EAR99 and is produced by any plant or `major 
component' of a plant that itself is a ``direct product'' of U.S.-
origin ``technology'' or U.S.-origin ``software'' and specified in any 
ECCN in product groups D or E in Categories 3, 4, 5, 6, 7, 8, or 9 of 
the CCL. This is an expansive list of ``technology'' and ``software,'' 
which will result in many additional foreign-produced items being 
considered ``subject to the EAR'' compared to the other existing FDP 
rules that applied to Russia prior to the publication of this rule. The 
additional foreign-produced items that will be ``subject to the EAR'' 
will be subject to the new license requirements imposed through this 
rule under the Sanctions against Russia (new Sec.  746.8), as described 
above.
    For a foreign-produced item to be subject to the EAR under the 
Russia FDP rule, the criteria in new Sec.  734.9(f)(2) (Destination 
scope of the Russia FDP rule) must also be met. New paragraph (f)(2) 
specifies that a foreign-produced item meets the destination scope of 
the Russia FDP rule if there is ``knowledge'' that the foreign-produced 
item is destined to Russia, or will be incorporated into, or used in 
the ``production'' or ``development'' of any ``part,'' ``component,'' 
or ``equipment'' not designated EAR99 and produced in or destined to 
Russia.
2. Addition of Russia-Military End User (Russia-MEU) FDP Rule
    The Russia-MEU FDP rule set forth in new paragraph (g) targets 
Russian `military end users' that, as described below, previously were 
on the MEU List and are being removed from the MEU List and added to 
the Entity List in Supplement No. 4 to part 744 of the EAR in this 
final rule. To address the significant support that these `military end 
users' provide to the Russian military, a new and more expansive FDP 
rule is warranted for these identified `military end users' under the 
EAR compared to the FDP rules that apply to certain destinations under 
the EAR. This final rule adds a new paragraph (g) to impose this new 
FDP rule targeting these Russian `military end users.' A foreign-
produced item located outside the United States is subject to the EAR 
if it meets both the product scope in paragraph (g)(1) of Sec.  734.9 
and the destination scope in paragraph (g)(2). License requirements, 
license review policy, and license exceptions applicable to the 
foreign-produced items that are subject to the EAR pursuant to 
paragraph (g), which are now identified in Sec.  746.8, are described 
above.
    This final rule adds paragraph (g)(1)(i) (``Direct product'' of 
``technology'' or ``software'') and paragraph (g)(1)(ii) (``Direct 
product'' of a complete plant or major component of a plant) to define 
the product scope for the Russia-MEU FDP rule. The criteria in 
paragraph (g)(1)(i) extends to the ``direct product'' of ``technology'' 
or ``software'' subject to the EAR and specified in any ECCN in product 
groups D or E in any category of the CCL. Paragraph (g)(1)(ii) applies 
to a foreign-produced item that is produced by a plant or `major 
component' of a plant that itself is a ``direct product'' of U.S.-
origin ``technology'' or U.S.-origin ``software'' subject to the EAR 
and specified in any ECCN in product groups D or E in any category of 
the CCL, which is an expansive list of ``technology'' and ``software.'' 
This will result in many additional foreign-produced items being 
considered ``subject to the EAR'' compared to the other existing FDP 
rules that applied to these Russian `military end users' prior to the 
publication of this rule. The additional foreign-produced items that 
will be ``subject to the EAR'' will be subject to the new license 
requirements being imposed as part of the sanctions against Russia set 
forth in new Sec.  746.8.
    For a foreign-produced item to be subject to the EAR, the criteria 
in new paragraph (g)(2) (End-user scope of the Russia MEU FDP rule) 
must be met. New paragraph (g)(2) specifies that a foreign-produced 
item meets the destination scope of the Russia MEU FDP rule if there is 
``knowledge'' as specified in new paragraph (g)(2)(i) (Activities 
involving Footnote 3 designated entities) that a foreign-produced item 
will be incorporated into, or will be used in the ``production'' or 
``development'' of any ``part,'' ``component,'' or ``equipment'' 
produced, purchased, or ordered by any entity with a footnote 3 
designation in the license requirement column of the Entity List in 
supplement No. 4 to part 744 of the EAR.
    In a corresponding change, this final rule adds a new footnote 3 to 
the Entity List for each of the Russian `military end users' that are 
being removed from the MEU List and added to the Entity list as 
described below. The new footnote 3 to

[[Page 12230]]

the Entity List is a key part of the criteria for the Russia-MEU FDP 
rule and will include a cross reference back to Sec. Sec.  734.9(g), 
746.8, and 744.21. With the changes described below, forty-five 
entities on the Entity List now have a footnote 3 designation, as well 
as two additional entities being added to the Entity List and two 
existing entities that are being revised in this rule that will also 
have the footnote 3 designation, for a total of forty-nine entities 
with a footnote 3 designation. As specified in new paragraph (g)(2) of 
Sec.  734.9, any entity with a footnote 3 designation in the license 
requirement column of the Entity List is a party to any transaction 
involving the foreign-produced item, e.g., as a ``purchaser,'' 
``intermediate consignee,'' ``ultimate consignee,'' or ``end-user.'' A 
new Note 3 to paragraph (g) specifies that for purposes of paragraph 
(g), a `military end user' is any entity listed on the Entity List 
under Russia with a footnote 3 designation.

C. Conforming Changes

    Based on the foregoing changes to the EAR, this final rule also 
makes certain conforming changes to the Russia industry sector 
sanctions in Sec.  746.5(a)(1); the Commerce Country Chart in 
supplement No. 1 to part 738; the Consumer Communication Devices 
license exceptions in Sec.  740.19; and certain licensing review 
policies in part 742. In addition, this rule makes a correction to the 
Entity List FDP rule in Sec.  734.9(e).
1. Russia Industry Sector Sanctions Changes
    Under Sec.  746.5 (Russian industry sector sanctions), this final 
rule revises paragraph (a)(1) (General prohibition) to make clarifying 
edits and add a cross reference to new Sec.  746.8. As this paragraph 
specifies that there are other provisions of the EAR that apply to 
exports, reexports, and transfers (in-country) to Russia, a reference 
to the new sanctions against Russia in Sec.  746.8 is needed to remind 
exporters, reexporters, and transferors to also look at Sec.  746.8 
when determining whether a license is required. This final rule also 
revises the text to remove the reference to Section 6 of the Export 
Administration Act of 1979 as this reference is outdated with the 
passage of the Export Control Reform Act of 2018 (ECRA), and a 
statutory reference is not necessary. This final rule also corrects the 
web address referenced in supplement No. 2 to part 746--Russian 
Industry Sector Sanction List to use the current web address being used 
by the U.S. Census Bureau regarding Schedule B information.
2. Commerce Country Chart Change
    In supplement No. 1 to part 738--Commerce Country Chart, as a 
conforming change to the addition of new Sec.  746.8, this final rule 
revises footnote 6 to add a reference to Sec.  746.8, so exporters, 
reexporters, and transferors are aware of the need to also review 
license requirements in Sec.  746.8 for items listed in any ECCN in 
Categories 3, 4, 5, 6, 7, 8, or 9 of the CCL.
3. License Exception CCD Changes
    This final rule amends License Exception CCD (Sec.  740.19), which 
was previously limited to Cuba, by adding Russia as an additional 
eligible destination. While Sec.  740.1(a) specifies that any license 
exception authorizing reexports also authorizes in-country transfers, 
provided the terms and conditions for reexports under that license 
exception are met, this final rule revises Sec.  740.19 to add explicit 
references to transfers (in-country). BIS is making this clarification 
because new Sec.  746.8 imposes controls on transfers (in-country) 
within Russia.
    In Sec.  740.19(a) (Authorizations), this rule adds Russia and a 
reference to transfers (in-country). Under the introductory text of 
paragraph (b) (Eligible commodities and software), this rule adds 
Russia and a reference to transfers (in-country) and removes an 
outdated reference to Sudan. Finally, under paragraph (c)(1) 
(Organizations), this final rule revises paragraph (c)(1)(i), which 
identifies eligible end users for License Exception CCD, to add Russia 
and a reference to transfers (in-country). The revision to paragraph 
(c)(1)(i) specifies that License Exception CCD is limited to the 
export, reexport, or transfer (in-country) of eligible commodities and 
software to and for the use of independent non-governmental 
organizations in Russia. This final rule further adds the Russian 
Government to the exclusions under paragraph (c)(1)(ii) and adds a new 
paragraph (c)(1)(iii) (Ineligible Russian Government Officials) to 
exclude the specified officials from receiving commodities and software 
under License Exception CCD. Only the end users named as eligible in 
paragraph (c) may receive the commodities and software eligible under 
License Exception CCD. This rule also amends paragraph (c)(2) as a 
correction and clarification, to state that License Exception CCD 
authorizes exports, reexports and transfers (in-country) to 
individuals.
    When License Exception CCD was initially added to the EAR in 2009, 
the text of this paragraph only referenced exports. However, a reading 
of paragraph (a) of the license exception and the preamble to the rule 
that added the license exception to the EAR indicates that License 
Exception CCD was intended to authorize both exports and reexports to 
individuals. See 74 FR 45985 at 45987 (9/8/2009). The addition of 
transfer (in-country) will clarify that the authorization applies not 
only to reexports, but also to transfers (in-country).
4. Part 742 (Control Policy--CCL Based Controls) Changes
    In part 742, as conforming changes to the license review policy of 
denial added under paragraph (b) to new Sec.  746.8, this final rule 
makes changes to license review policies in five sections: 742.2 
(Proliferation of chemical and biological weapons), 742.3 (Nuclear 
nonproliferation), 742.4 (National security), 742.5 (Missile 
technology), and 742.6 (Regional stability).
    Under Sec.  742.2, this final rule revises the second sentence of 
paragraph (b)(4) to change the license review policy from presumption 
of denial to policy of denial. This final rule adds two additional 
sentences to clarify that certain items, such as items to Russia in 
support of U.S.-Russia civil space cooperation activities, are reviewed 
on a case-by-case basis as specified under Sec.  746.8(b).
    In both Sec. Sec.  742.3 and 742.5, this final rule revises the 
second sentence of paragraph (b)(4) to change the license review policy 
from presumption of denial to policy of denial. For these sections, 
this final rule also revises the third sentence to remove the reference 
to commercial space launches from the case-by-case license review 
policy, and adds a cross reference to the license review policy under 
Sec.  746.8(b).
    Under Sec.  742.4, this final rule revises the third sentence of 
paragraph (b)(7)(i) to remove the reference to Russia because the 
license review policy set forth in the paragraph will no longer apply 
to Russia. This final rule also adds a new paragraph (b)(9), which 
states that all applications for Russia will be reviewed in accordance 
with the licensing policy set forth in Sec.  746.8(b).
    Under Sec.  742.6, this final rule revises paragraph (b)(8) to 
remove the reference to Russia because the license review policy set 
forth in the paragraph will no longer apply to Russia. This final rule 
also adds a new paragraph (b)(9), specifying that all applications for 
Russia will be reviewed in accordance with the licensing policy set 
forth in Sec.  746.8(b). Finally, to establish that license 
applications for export, reexport or transfer (in-country) to or within

[[Page 12231]]

Russia will also be reviewed in accordance with the foreign policy 
interest of promoting the observance of human rights throughout the 
world and consistent with United States arms embargo policies in Sec.  
126.1 of the ITAR (22 CFR 126.1), this final rule adds text to new 
paragraph (b)(9) to carry over certain portions of the preexisting 
license review policy for Russia under paragraph (b)(8).
5. Entity List FDP Rule Correction
    On February 2, 2022, BIS published a rule in the Federal Register 
entitled ``Foreign-Direct Product Rules: Organization, Clarification, 
and Correction'' (87 FR 6022), which contained an error. In Sec.  
734.9(e), BIS unintentionally omitted the term ``U.S.-origin'' in the 
phrase `` ``direct product'' of ``technology'' or ``software'' subject 
to the EAR.'' With this final rule, BIS fixes that error by reinserting 
``U.S.-origin'' in `` ``direct product'' of ``U.S.-origin'' 
``technology'' or ``U.S.-origin'' ``software''.'' Lastly, as 
clarification for purposes of the new Russia-Military End User FDP rule 
that this rule adds to Sec.  734.9(g), as described above, BIS did not 
intend to include ``U.S.-origin'' for purposes of paragraph (g)(1)(i), 
but did intend its inclusion in paragraph (g)(1)(ii), as well as in new 
paragraphs (f)(1)(i) and (ii) for the Russia FDP rule. This final rule, 
thus, makes clarifying revisions to Sec.  734.9.

D. Changes to `Military End Use' and `End User' Controls for Russia

    This final rule revises the scope of the `military end use' and 
`military end user' controls under Sec.  744.21 of the EAR to reflect 
the expanded controls for Russia, which, with the publication of this 
final rule, apply to all items ``subject to the EAR'' instead of to the 
narrower subset of items identified in supplement no. 2 to part 744. As 
a result of the expanded controls for Russia for `military end users' 
and `military end uses,' BIS is revising the Entity List in supplement 
No. 4 to part 744 and the Military End-User (MEU) List in supplement 
no. 7 to the same part to make conforming changes. Accordingly, this 
final rule revises Sec.  744.21 paragraphs as follows to reflect the 
expanded `military end use' and `military end user' controls for 
Russia:
    In paragraph (a), this final rule revises the first sentence to 
remove Russia from the part of the sentence that specifies the 
prohibition applies to the countries listed. This final rule further 
revises that first sentence to add, after Venezuela, the phrase ``or 
any item subject to the EAR except for food or medicine designated as 
EAR99, or ECCN 5A992.c and 5D992.c unless for Russian ``government end 
users'' and Russian state-owned enterprises (SoEs) to Russia'' to 
specify that the prohibition is broader for Russia than it is for the 
other countries subject to the requirements of Sec.  744.21.
    BIS is revising paragraph (b)(1) (`Military End-User' (MEU) List) 
to provide guidance for entities on the MEU List and for Russian 
entities placed on the Entity List based on Sec.  744.21(b). Because 
the prior requirements of the MEU List were limited to items identified 
in supplement no. 2 to part 744 and the Russia-MEU restrictions now 
apply to all items subject to the EAR as a consequence of the 
publication of this rule, BIS is removing Russian entities that were 
listed on the MEU List prior to this rule and placing them instead on 
the Entity List. This change is consistent with the regulatory 
construct for these two proscribed persons lists under the EAR (i.e., 
the MEU List restrictions apply to items identified in supplement no. 2 
to part 744 and the Entity List restrictions, in most cases, apply to 
all items subject to the EAR). This final rule removes the references 
to Russia in the context of the MEU List and specifies that such 
entities may be added to supplement No. 4 of part 744--the Entity 
List--and are subject to license requirements that apply to all items 
``subject to the EAR'' except for food or medicine designated as EAR99, 
or ECCN 5A992.c and 5D992.c unless for Russian ``government end users'' 
and Russian state-owned enterprises (SoEs).
    As conforming changes regarding the End-User Review Committee (ERC) 
processes for the MEU List, this final rule revises paragraph (b)(1)(i) 
(End-User Review Committee (ERC)) to add references to the Entity List 
when the MEU List is referenced for the procedures in supplement No. 5 
to part 744--Procedures for End-User Review Committee Entity List and 
`Military End User' (MEU) List Decisions. This change is made to 
clarify that the ERC procedure for adding entities to the MEU List also 
apply to additions, modifications and removals from the Entity List for 
entities added based on Sec.  744.21 of the EAR.
    Under paragraph (b)(1)(ii) (License requirements for parties to the 
transaction), this final rule revises the paragraph to clarify that the 
license requirements for Burma, Cambodia, the People's Republic of 
China, and Venezuela continue to apply for exports, reexports, and 
transfers (in-country) of any item specified in supplement no. 2 to 
part 744 when an entity included on the MEU List or meeting the 
definition of `military end-user' as defined in Sec.  744.21(g) is a 
party to the transaction as described in Sec.  748.5(c) through (f) of 
the EAR. This final rule also revises paragraph (b)(1)(ii) to add a 
sentence to clarify that, for purposes of Russia, a license requirement 
applies to all items subject to the EAR for entities listed in 
supplement No. 4 to part 744 (the Entity List) pursuant to Sec.  744.21 
when such an entity is a party to the transaction as described in Sec.  
748.5(c) through (f) of the EAR. These changes are necessary because, 
with the publication of this final rule, the license requirements for 
Russia will now be broader than for the other four countries.
    Under paragraph (b)(2) (Requests for removal from or modification 
of `Military End User' List (MEU)), this final rule revises the heading 
to add a reference to the Entity List. This final rule also adds two 
more references to the Entity List in this paragraph to specify that 
the process for requesting removal or modification is the same for 
entities listed on the MEU List or the Entity List on the basis of 
Sec.  744.21 of the EAR.
    Under paragraph (e) (License review standards), this final rule 
revises the existing license review policy in paragraph (e)(1) to make 
it specific to Burma, Cambodia, the People's Republic of China (China), 
and Venezuela. This final rule adds a new sentence to paragraph (e)(1) 
to specify that the license review policy for application to or within 
Russia for the license requirements described in paragraph (a) will be 
a policy of denial.
    Under paragraph (g) (`Military end user'), the final rule makes a 
correction to add back the parenthetical phrase ``(excluding those 
described in Sec.  744.22(f)(2) of the EAR)'' after the term government 
intelligence or reconnaissance organizations. This text was 
inadvertently removed from the EAR in a December 9, 2021 (86 FR 70018) 
final rule.
    BIS estimates these changes to Sec.  744.21 will result in an 
additional 75 license applications being submitted to BIS annually.

E. Military End-User (MEU) List and Entity List Changes for Russian 
Entities

    Under Sec.  744.11(b) (Criteria for revising the Entity List), 
entities for which there is reasonable cause to believe, based on 
specific and articulable facts, that the entities have been involved, 
are involved, or pose a significant risk of being or becoming involved 
in activities that are contrary to the national security or foreign 
policy interests of the United States, and those acting on behalf of 
such entities, may be

[[Page 12232]]

added to the Entity List. Paragraphs (b)(1) through (5) of Sec.  744.11 
provide an illustrative list of activities that could be considered 
contrary to the national security or foreign policy interests of the 
United States. The Entity List in supplement no. 4 to part 744 
identifies the entities so designated. The EAR impose additional 
license requirements on, and limit the availability of most license 
exceptions for, exports, reexports, and transfers (in-country) when an 
entity that is listed on the Entity List is a party to the transaction 
as described in Sec.  748.5(c) through (f) of the EAR. The license 
review policy for each listed entity is identified in the ``License 
Review Policy'' column on the Entity List, and the impact on the 
availability of license exceptions is described in the relevant Federal 
Register document adding entities to the Entity List. BIS places 
entities on the Entity List pursuant to part 744 (Control Policy: End-
User and End-Use Based) and part 746 (Embargoes and Other Special 
Controls) of the EAR.
    The MEU List in supplement no. 7 to part 744 identifies entities 
that have been determined by the End-User Review Committee (ERC) to be 
`military end users' pursuant to Sec.  744.21. That section imposes 
additional license requirements on, and limits the availability of most 
license exceptions for, exports, reexports, and transfers (in-country) 
when an entity listed on the MEU List is a party to the transaction as 
described in Sec.  748.5(c) through (f) of the EAR, as specified in 
supplement no. 7 to part 744 and in Sec.  744.21. Entities are listed 
on the MEU List under the destinations of Burma, Cambodia, China, or 
Venezuela. The license review policy for each listed entity is 
identified in the introductory text of the MEU List and in Sec.  
744.21(e). The MEU List's introductory text and Sec.  744.21 also 
specify the scope of the license requirements and limitations on the 
use of EAR license exceptions.
    The ERC, composed of representatives of the Departments of Commerce 
(Chair), State, Defense, Energy and, where appropriate, the Treasury, 
makes all decisions regarding additions to, removals from, or other 
modifications to the Entity List and the MEU List. The ERC makes all 
decisions to add an entry to the Entity List or MEU List by majority 
vote and all decisions to remove or modify an entry by unanimous vote. 
Decisions on Entity or MEU List entries may also be made by higher-
level officials of agencies represented on the ERC.
1. Additions to the Entity List
    This rule implements the decision of the Departments represented on 
the ERC to add forty-seven entities to the Entity List, consisting of 
the forty-five entities being moved from the MEU List to the Entity 
List and an additional two entities that are newly listed in the EAR.
    The agencies represented on the ERC made the decision to move the 
forty-five entities identified below from the MEU List to the Entity 
List pursuant to the standards set forth in Sec. Sec.  744.11(b) and 
744.21(b) (including the revisions made in this final rule to the scope 
of the latter section) of the EAR. Under the circumstances of the 
Russia invasion of the Ukraine, there is a greater national security 
and foreign policy threat posed by entities that have previously been 
found to be supporting `military end uses' in Russia. The ERC used the 
same standards set forth in Sec. Sec.  744.11(b) and 744.21(b) to 
approve the additional two entities being added to the Entity List. 
These forty-seven entities are `military end users' under the EAR. The 
license requirements that will apply to them as a consequence of their 
addition to the Entity List will further limit their ability to obtain 
items subject to the EAR or obtain the benefit of technology or 
software subject to the EAR when supporting military activities outside 
of Russia in a manner contrary to U.S. national security or foreign 
policy interests.
    One of the forty-five entities being moved from the MEU List to the 
Entity List, described further below, is the Ministry of Defence of the 
Russian Federation, including the Armed Forces of Russia and all 
operating units wherever located. This entity was listed as the 
Ministry of Defence RF on the MEU List, but will be listed on the 
Entity List under its full name, Ministry of Defence of the Russian 
Federation, in this final rule. The entry this rule adds for the 
Ministry of Defence of the Russian Federation includes the national 
armed services (army, navy, marine, air force, or coast guard), as well 
as the national guard and national police, government intelligence or 
reconnaissance organizations of the Russian Federation. In addition, 
this entry restricts exports, reexports and transfers (in-country) to 
the national armed services (army, navy, marine, air force, or coast 
guard), as well as the national guard and national police, government 
intelligence or reconnaissance organizations of Russia wherever located 
worldwide.
    As a result of the changes to Sec.  744.21 described in this final 
rule, the license requirements for `military end users' in Russia, now 
apply to all items ``subject to the EAR,'' except for food or medicine 
designated as EAR99, or ECCN 5A992.c and 5D992.c unless for Russian 
``government end users'' and Russian state-owned enterprises (SoEs). 
Accordingly, the agencies represented on the ERC decided to add forty-
five entities to the Entity List. As part of this ERC review effort, 
the ERC also determined that the additional two entities should be 
added to the Entity List because they are `military end users.' The 
license requirements of the MEU List are limited to items identified in 
supplement no. 2 to part 744. Therefore, the agencies represented on 
the ERC determined that the MEU List was no longer the appropriate 
supplement of the EAR in which to list these forty-five `military end 
users' in Russia and that, for the additional two entities being added, 
the public would benefit from their identification on the Entity List 
as `military end users.'
    The forty-five entities being moved from the MEU List to the Entity 
List are: Admiralty Shipyard JSC; Aleksandrov Scientific Research 
Technological Institute NITI; Argut OOO; Communication Center of the 
Ministry of Defence; Federal Research Center Boreskov Institute of 
Catalysis; Federal State Budgetary Enterprise of the Administration of 
the President of Russia; Federal State Budgetary Enterprise Special 
Flight Unit Rossiya of the Administration of the President of Russia; 
Federal State Unitary Enterprise Dukhov Automatics Research Institute 
(VNIIA); Foreign Intelligence Service (SVR); Forensic Center of Nizhniy 
Novgorod Region Main Directorate of the Ministry of Interior Affairs; 
Irkut Corporation; Irkut Research and Production Corporation Public 
Joint Stock Company; Joint Stock Company Scientific Research Institute 
of Computing Machinery; JSC Central Research Institute of Machine 
Building (JSC TsNIIMash); JSC Kazan Helicopter Plant Repair Service; 
JSC Rocket and Space Centre--Progress; Kamensk-Uralsky Metallurgical 
Works J.S. Co.; Kazan Helicopter Plant PJSC; Komsomolsk-na-Amur 
Aviation Production Organization (KNAAPO); Ministry of Defence of the 
Russian Federation; Moscow Institute of Physics and Technology; NPO 
High Precision Systems JSC; NPO Splav JSC; Oboronprom OJSC; PJSC Beriev 
Aircraft Company; PJSC Irkut Corporation; PJSC Kazan Helicopters; 
POLYUS Research Institute of M.F. Stelmakh Joint Stock Company; 
Promtech-Dubna, JSC; Public Joint Stock Company United Aircraft 
Corporation; Radiotechnical and

[[Page 12233]]

Information Systems (RTI) Concern; Rapart Services LLC; Rosoboronexport 
OJSC (ROE); Rostec (Russian Technologies State Corporation); Rostekh--
Azimuth; Russian Aircraft Corporation MiG; Russian Helicopters JSC; 
Sukhoi Aviation JSC; Sukhoi Civil Aircraft; Tactical Missiles 
Corporation JSC; Tupolev JSC; UEC-Saturn; United Aircraft Corporation; 
United Engine Corporation; and United Instrument Manufacturing 
Corporation.
    The ERC decided to add two new entities to the Entity List: The 
International Center for Quantum Optics and Quantum Technologies LLC, 
and SP Kvant. Both are being added, under the destination of Russia, to 
the Entity List for acquiring and attempting to acquire U.S.-origin 
items in support of nuclear explosive activities, unsafeguarded nuclear 
activities, and safeguarded and unsafeguarded nuclear fuel-cycle 
activities for Russia. The ERC determined that these activities are 
contrary to the national security and foreign policy interests of the 
United States under Sec.  744.11(b) of the EAR. These two entities are 
considered `military end-users' for purposes of Sec.  744.21(b).
    Pursuant to Sec. Sec.  744.11(b) and 744.21(b) of the EAR, the ERC 
determined that the conduct of the above-described forty-seven entities 
raises sufficient concerns that prior review, via the imposition of a 
license requirement for exports, reexports, or transfers (in-country), 
of all items subject to the EAR, except for food or medicine designated 
as EAR99 involving these forty-seven entities is appropriate. This rule 
also excludes ECCN 5A992.c and 5D992.c from the license requirement 
involving eight of the entities being added that are not Russian 
``government end users'' and Russian state-owned enterprises (SoEs). 
The ERC also determined that the possible issuance of license denials 
or the possible imposition of license conditions on shipments to these 
entities will enhance BIS's ability to prevent violations of the EAR or 
otherwise protect U.S. national security or foreign policy interests.
    For the forty-seven entities added to the Entity List in this final 
rule, BIS imposes a license requirement that applies to all items 
subject to the EAR. BIS imposes a license review policy of denial for 
these forty-seven entities. In addition, no license exceptions are 
available for exports, reexports, or transfers (in-country) where the 
entities added to the Entity List in this rule are parties to the 
transaction as described in Sec.  748.5(c) through (f), with one 
exception. The United States Government authorization under License 
Exception GOV (Sec.  740.11(b)(2) and (e)) is available for two 
entities being added to the Entity List: JSC Central Research Institute 
of Machine Building (JSC TsNIIMash) and JSC Rocket and Space Centre--
Progress.
    Also as described above under the description of Sec.  734.9, this 
final rule adds new Footnote 3 to the Entity List for each of the 
forty-five Russian `military end users' that are being moved from the 
MEU List to the Entity list, as well as to the additional two entities 
added to the Entity List. New Entity List footnote 3 is part of the 
criteria for Russia-MEU FDP rule and will include a cross reference 
back to Sec. Sec.  734.9(g) and 746.8. More entities may be added to 
Footnote 3 in the future.
    For the reasons described above, this final rule adds the following 
forty-seven entities to the Entity List. The two new entities added to 
the Entity List that were not previously on the MEU List are designated 
with an asterisk:

RUSSIA
 Admiralty Shipyard JSC;
 Aleksandrov Scientific Research Technological Institute NITI;
 Argut OOO;
 Communication Center of the Ministry of Defence;
 Federal Research Center Boreskov Institute of Catalysis;
 Federal State Budgetary Enterprise of the Administration of 
the President of Russia;
 Federal State Budgetary Enterprise Special Flight Unit Rossiya 
of the Administration of the President of Russia;
 Federal State Unitary Enterprise Dukhov Automatics Research 
Institute (VNIIA);
 Foreign Intelligence Service (SVR);
 Forensic Center of Nizhniy Novgorod Region Main Directorate of 
the Ministry of Interior Affairs;
 *International Center for Quantum Optics and Quantum 
Technologies LLC;
 Irkut Corporation;
 Irkut Research and Production Corporation Public Joint Stock 
Company;
 Joint Stock Company Scientific Research Institute of Computing 
Machinery;
 JSC Central Research Institute of Machine Building (JSC 
TsNIIMash);
 JSC Kazan Helicopter Plant Repair Service;
 JSC Rocket and Space Centre--Progress;
 Kamensk-Uralsky Metallurgical Works J.S. Co.;
 Kazan Helicopter Plant PJSC;
    Komsomolsk-na-Amur Aviation Production Organization (KNAAPO);
 Ministry of Defence of the Russian Federation including the 
national armed services (army, navy, marine, air force, or coast 
guard), as well as the national guard and national police, government 
intelligence or reconnaissance organizations of the Russian Federation;
 Moscow Institute of Physics and Technology;
 NPO High Precision Systems JSC;
 NPO Splav JSC;
 Oboronprom OJSC;
 PJSC Beriev Aircraft Company;
 PJSC Irkut Corporation;
 PJSC Kazan Helicopters;
 POLYUS Research Institute of M.F. Stelmakh Joint Stock 
Company;
 Promtech-Dubna, JSC;
 Public Joint Stock Company United Aircraft Corporation;
 Radiotechnical and Information Systems (RTI) Concern;
 Rapart Services LLC;
 Rosoboronexport OJSC (ROE);
 Rostec (Russian Technologies State Corporation);
 Rostekh--Azimuth;
 Russian Aircraft Corporation MiG;
 Russian Helicopters JSC;
 *SP Kvant;
 Sukhoi Aviation JSC;
 Sukhoi Civil Aircraft;
 Tactical Missiles Corporation JSC;
 Tupolev JSC;
 UEC-Saturn;
 United Aircraft Corporation;
 United Engine Corporation; and
 United Instrument Manufacturing Corporation.

    The acronym ``a.k.a.,'' which is an abbreviation of ``also known 
as,'' is used in entries on the Entity List to identify aliases, 
thereby assisting exporters, reexporters, and transferors in 
identifying entities on the Entity List.
2. Revision to the Entity List
    This rule implements a modification to two existing entries for 
``Federal Security Service (FSB)'' and ``Main Intelligence 
Directorate'' that were both first added to the Entity List on January 
4, 2017 (82 FR 724). Specifically, this rule modifies the entry for 
these entities by adding a Footnote 3 designation as described above 
because these existing entities have also been determined by the ERC to 
be `military end users.'
3. Removals From the MEU List
    This rule removes the forty-five entities located in Russia that 
are described above from the MEU List. These forty-five entities were 
added to the MEU List in three final rules. One entry, for JSC Kazan 
Helicopter, was added to the MEU List on July 12, 2021

[[Page 12234]]

(86 FR 36509). One entry, for Moscow Institute of Physics and 
Technology, was added to the MEU List on November 26, 2021 (86 FR 
67323). The remaining forty-three entries were added to the MEU List on 
December 23, 2020 (85 FR 83799). As described above, the ERC determined 
to remove these forty-five entries from the MEU List and add them to 
the Entity List to reflect the new scope of the license requirements 
for military end users in Russia pursuant to Sec.  744.21, which will 
now apply to all items ``subject to the EAR'' except for food or 
medicine designated as EAR99, or ECCN 5A992.c and 5D992.c unless for 
Russian ``government end users'' and Russian state-owned enterprises 
(SoEs). The listing of entities added to the Entity List, above, 
without an asterisk is identical to the list of entities being removed 
from the MEU List.

F. Comprehensive Export Restrictions for the Covered Regions of 
Ukraine; Conforming Revisions to Crimea Region of Ukraine Provisions

1. Background on Need for These Changes
    On February 21, 2022, President Joseph Biden issued Executive Order 
(E.O.) 14065, finding that the Russian Federation (Russia)'s 
``purported recognition of the so-called Donetsk People's Republic 
(DNR) or Luhansk People's Republic (LNR) regions of Ukraine contradicts 
Russia's commitments under the Minsk agreements and further threatens 
the peace, stability, sovereignty, and territorial integrity of 
Ukraine, and thereby constitutes an unusual and extraordinary threat to 
the national security and foreign policy of the United States.'' E.O. 
14065 builds upon and expands the scope of the national emergency 
declared by President Barack Obama in E.O. 13660 of March 6, 2014 with 
respect to Russia's actions involving Ukraine. Subsequent E.O.s, 
including E.O. 13661 of March 16, 2014, E.O. 13662 of March 20, 2014, 
and E.O. 13685 of December 19, 2014, either expanded further or 
otherwise took additional steps under President Obama's declaration of 
national emergency to address Russia's destabilizing conduct.
    Section 10 of E.O. 14065 directs all executive departments and 
agencies of the United States to take all appropriate measures within 
their authority to implement the E.O. Section One of E.O. 14065 
prohibits ``the exportation, reexportation, sale, or supply, directly 
or indirectly, from the United States, or by a United States person, 
wherever located, of any goods, services, or technology to the Covered 
Regions[.]'' Consistent with and to implement this prohibition, BIS is 
expanding the restrictions in Sec.  746.6 of the EAR, to apply to 
export, reexport, and in-country transfer transactions involving the 
so-called DNR and LNR regions of Ukraine (collectively, the Covered 
Regions). BIS initially promulgated the Sec.  746.6 restrictions 
consistent with and to implement E.O. 13685 of December 19, 2014 (79 FR 
77357), to which E.O. 14065 is similar in scope, pursuant to which 
President Obama issued an export prohibition related to the Crimea 
region of the Ukraine, to address the Russian occupation of that region 
in 2014. Consistent with and to implement this prohibition, BIS imposed 
new license requirements with respect to certain export, reexport, and 
in-country transfer transactions involving the Crimea region of 
Ukraine. (80 FR 4778, Jan. 29, 2015)
    In this rule BIS amends the EAR by imposing a license requirement 
for the export and reexport to the Covered Regions of Ukraine, and the 
transfer within the Covered Regions of Ukraine, of all items subject to 
the EAR, other than food and medicine designated as EAR99 and certain 
software for internet-based personal communications. For purposes of 
this rule, and consistent with E.O. 13685 and E.O. 14065, the term 
`Covered Regions of Ukraine' includes the land territory in the DNR and 
LNR regions, as well as any maritime areas over which sovereignty, 
sovereign rights, or jurisdiction is claimed based on occupation of 
(Crimea), or purported sovereignty (DNR and LNR) over, those land 
territories. In addition to these substantive changes to Sec.  746.6 of 
the EAR, BIS is making organizational and related technical edits to 
account for these restrictions on the Covered Regions of Ukraine and to 
simplify Sec.  746.6 and facilitate compliance with the provision's 
requirements.
    This rule establishes a policy of denial for the review of 
applications involving all such exports or reexports to the Covered 
Regions of Ukraine and transfers within the Covered Regions of Ukraine, 
except with respect to items not exempt from the license requirement 
but authorized under the Department of the Treasury's Office of Foreign 
Assets Control (OFAC) Ukraine related General Licenses (discussed in 
greater detail in the next paragraph), which BIS will review on a case-
by-case basis. Certain license exceptions are available for exports or 
reexports to the Covered Regions of Ukraine or transfers within the 
Covered Regions of Ukraine, specifically, the same license exceptions 
currently available under Sec.  746.6 of the EAR to the Crimea region 
of Ukraine.
    As stated above, license applications for exports, reexports or 
transfers authorized under OFAC General Licenses will be reviewed on a 
case-by-case basis. In conjunction with the issuance of E.O. 14065, 
OFAC issued six General Licenses (Ukraine General License numbers 17-
22) to ensure that humanitarian and other related activities can 
continue in these regions. These General Licenses allow a short-term 
wind down of activities, as well as for the export to the regions of 
food, medicine, and medical devices, and ensure personal remittances 
can continue to flow. They also allow telecommunications and internet 
services to remain operational, and mail services to continue, as well 
as allow international organizations to be able to provide aid to the 
people in the Covered Regions of Ukraine.
    This final rule includes a savings clause as described below. If an 
export, reexport or transfer (in-country) does not qualify for the 
savings clause described below but falls within the scope of OFAC's 
Ukraine related General Licenses, an applicant may note this fact in 
its BIS license application either under block 24 or in a separate 
attachment. BIS will consider this fact as part of the license review 
process.
    As a reminder, the Donetsk People's Republic and Luhansk People's 
Republic are listed on the Entity List. A license applies for the 
export, reexport, and transfer (in-country) of all items subject to the 
EAR that are destined for these two entities. See 79 FR 42452 (July 22, 
2014) (``Donetsk People's Republic and Luhansk People's Republic are 
both separatist organizations that operate in eastern Ukraine.'').
2. Revisions to the EAR for the Covered Regions of Ukraine; Conforming 
Revisions to Crimea Region of Ukraine Provisions
    To implement the changes described above, this final rule revises 
Sec.  746.6 (Crimea region of Ukraine and the Covered Regions of 
Ukraine) in part 746 (Embargoes and Other Special Controls) of the EAR. 
The existing restrictions regarding Crimea are now located in paragraph 
(a)(1), and new paragraph (a)(2) imposes a license requirement for 
exports and reexports to the Covered Regions of Ukraine, and the 
transfer within the Covered Regions of Ukraine, of all items subject to 
the EAR, other than food and medicine designated as EAR99 and certain 
software that is necessary to enable the exchange of personal 
communications over the

[[Page 12235]]

internet. Such software must either be designated EAR99 or classified 
as mass market software under Export Control Classification Number 
(ECCN) 5D992.c of the EAR and must be widely available to the public at 
no cost to the user. The license review policy for Crimea is now 
located in paragraph (b)(1), and new paragraph (b)(2) specifies that 
the license review policy for the Covered Regions of Ukraine is a 
policy of denial, except for items authorized under OFAC's Ukraine 
related General Licenses which will be reviewed on a case-by-case 
basis.
    The amendments to Sec.  746.6 of this rule do not change the 
license requirements or available license exceptions for the Crimea 
region of Ukraine. However, this rule amends the licensing policy, as 
set forth in new paragraph (b), from a presumption of denial to a 
policy of denial, to harmonize the license review policy for the Crimea 
region of Ukraine with the more restrictive policy of denial that 
applies to the Covered Regions of Ukraine given the significant 
national security and foreign policy concerns related to those areas.
    Paragraph (c) specifies the license exceptions that are available 
to overcome the license requirements set forth in this section with 
respect to either the Crimea region of Ukraine or the Covered Regions 
of Ukraine. No license exceptions other than those license exceptions 
(or paragraphs of license exceptions) listed in paragraph (c) are 
available to overcome the license requirements of Sec.  746.6 of the 
EAR. New paragraph (d) defines the terms `Covered Regions of Ukraine' 
and `software necessary to enable the exchange of personal 
communications over the internet' for purposes of this provision.
    The license requirements imposed under part 746 of the EAR are 
independent of the Commerce Control List (CCL)-based license 
requirements. However, this rule revises the cross reference to Sec.  
746.6 by revising footnote 8 to the Commerce Country Chart in 
supplement No. 1 to part 738. This footnote 8 makes persons aware of 
the additional part 746 license requirements under Sec.  746.6 that 
apply for the `Crimea region of Ukraine and the Covered Regions of 
Ukraine.' When applying for a license to the Crimea region of Ukraine 
or the Covered Regions of Ukraine, applicants should select `Crimea, 
DNR, and LNR regions' in the drop-down menu option under the country of 
Ukraine in the Simplified Network Application Processing System (SNAP-
R).
    This final rule, as a conforming change to the addition of Sec.  
746.6 and the restrictions under paragraph (c), adds `the Covered 
Regions of Ukraine' to the general restriction on the use of license 
exceptions in Sec.  740.2 of the EAR for sanctioned countries by 
revising the parenthetical phrase ``(Cuba, Iran, North Korea, Syria, 
and Crimea region).'' This final rule adds `the Covered Regions of 
Ukraine' to this parenthetical phrase because the license requirements 
under Sec.  746.6 apply to all items subject to the EAR, and the only 
license exceptions available to overcome the license requirement are 
those specified in Sec.  746.6.
    In addition to the EAR controls that this final rule is adding to 
Sec.  746.6, exporters, reexporter and transferors will also be 
required to ensure that any transaction with Crimea and `the Covered 
Regions of Ukraine' occurs in accordance with all applicable OFAC 
requirements. BIS and OFAC both exercise licensing jurisdiction for the 
Crimea region of Ukraine and for ``the Covered Regions of Ukraine,'' so 
for most exports, reexports and transfers (in-country), an 
authorization will be required from both BIS and OFAC.
    Lastly, this final rule revises the definition of ``Food'' in Sec.  
772.1 to include a reference to `the Covered Regions of Ukraine' along 
with North Korea, Syria, and Crimea that are referenced in the 
definition. BIS estimates that these new controls for the Sec.  746.6 
will result in an additional 20 license applications being submitted to 
BIS annually.

G. Russia: Amendments to Supplement No. 1 to Part 740 of the EAR 
Consistent With the ITAR Sec.  126.1

    In supplement no. 1 to part 740, this final rule updates the 
Country Group designation for Russia to reflect its identification by 
the Department of State as a country subject to a United States arms 
embargo. BIS harmonizes the arms embargo-related provisions in the EAR 
with the Directorate of Defense Trade Control's (DDTC's) regulation of 
arms embargoes in Sec.  126.1 of the International Traffic in Arms 
Regulations (ITAR) (22 CFR 126.1, Prohibited Exports, Imports, and 
Sales to or from Certain Countries). ITAR Sec.  126.1 includes 
countries subject to United Nations Security Council (UNSC) and U.S. 
arms embargoes. BIS primarily implements such controls through Country 
Group D:5 ``U.S. Arms Embargoed Countries,'' in supplement no. 1 to 
part 740 of the EAR. With this rule, BIS revises Country Group D to add 
Russia to Country Group D:5 consistent with the Department of State's 
amendments adding this country to ITAR Sec.  126.1 on March 18, 2021 
(86 FR 14802).
    Countries listed in Country Group D:5 are subject to additional 
restrictions in the EAR, including with respect to de minimis U.S. 
content, license exception availability, and licensing policy for 
certain items. For example, license applications for the export or 
reexport of items classified under 9x515 or ``600 series'' Export 
Control Classification Numbers (ECCNs) to countries in Country Group 
D:5 are reviewed consistent with the policies in Sec.  126.1 of the 
ITAR, as provided in paragraph (b)(1)(ii) of Sec.  742.4 of the EAR.
Savings Clause
    For the sanctions against Russia added under Sec.  746.8(a)(2) and 
(3), shipments of items removed from eligibility for a License 
Exception or 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 
March 26, 2022, pursuant to actual orders for 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 
reexport or transfer (in-country) without a license (NLR).
    For all other changes being made in this final rule, 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 February 24, 2022, 
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).

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. Sections 4801-4852). ECRA provides the legal 
basis for BIS's principal authorities and serves as the authority under 
which BIS issues this rule. To the extent it applies to certain 
activities that are the subject of this rule, the Trade Sanctions 
Reform and Export Enhancement Act of 2000 (TSRA) (codified, as amended, 
at 22 U.S.C.

[[Page 12236]]

Sections 7201-7211) also serves as authority for this rule. This action 
also implements measures pursuant to the International Emergency 
Economic Powers Act, 50 U.S.C. 1701 et seq., and the emergency expanded 
upon by Executive Order 14065 of February 21, 2022.

Rulemaking Requirements

    1. This final rule is not a ``significant regulatory action'' 
because it ``pertain[s]'' to a ``military or foreign affairs function 
of the United States'' under sec. 3(d)(2) of Executive Order 12866.
    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-approved collections of 
information subject to the PRA: 0694-0088, ``Multi-Purpose 
Application,'' which carries a burden hour estimate of 29.6 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. 
This rule changes the respondent burden under these control numbers by 
increasing the estimated number of submissions by 2,445. Specifically, 
BIS estimates that these new controls on Russia under the EAR will 
result in an increase of 2,445 license applications submitted annually 
to BIS. BIS estimates the burden hours associated with these 
collections would increase by 1,247 (i.e., 2,445 applications x 30.6 
minutes per response) for a total estimated cost increase of $37,410 
(i.e., 1,247 hours x $30 per hour). The $30 per hour cost estimate for 
OMB control number 0694-0088 is consistent with the salary data for 
export compliance specialists currently available through glassdoor.com 
(glassdoor.com estimates that an export compliance specialist makes 
$55,280 annually, which computes to roughly $26.58 per hour). This 
increase is expected to exceed the existing estimates currently 
associated with OMB control numbers 0694-0088, but not for 0694-0096 
and 0607-0152 which have minimal burden increases as a result of this 
rule. Consistent with 5 CFR 1320.13, BIS requested emergency clearance 
for an increase in the burden estimate under collection 0694-0088 
because of the additional license requirements imposed by this rule. 
OMB has approved the emergency collection for the increase in the total 
number of licenses.
    3. This rule does not contain policies with federalism implications 
as that term is defined in Executive Order 13132.
    4. Pursuant to section 1762 of the Export Control Reform Act of 
2018 (50 U.S.C. 4821) (ECRA), 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 a notice of proposed rulemaking and an opportunity for 
public comment are not required to be given for this rule by 5 U.S.C. 
553, or by any other law, the analytical requirements of the Regulatory 
Flexibility Act, 5 U.S.C. 601, et seq., are not applicable. 
Accordingly, no regulatory flexibility analysis is required and none 
has been prepared.

List of Subjects

15 CFR Part 734

    Administrative practice and procedure, Exports, Inventions and 
patents, Research, Science and technology.

15 CFR Parts 738 and 772

    Exports.

15 CFR Part 740

    Administrative practice and procedure, Exports, Reporting and 
recordkeeping requirements.

15 CFR Part 742

    Exports, Terrorism.

15 CFR Part 744

    Exports, Reporting and recordkeeping requirements, Terrorism.

15 CFR Part 746

    Exports, Reporting and recordkeeping requirements.

    For the reasons stated in the preamble, parts 734, 738, 740, 742, 
744, 746, and 772 of the Export Administration Regulations (15 CFR 
parts 730 through 774) are amended as follows:

PART 734--SCOPE OF THE EXPORT ADMINISTRATION REGULATIONS

0
1. The authority citation for 15 CFR part 734 continues 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.; E.O. 12938, 59 FR 59099, 3 CFR, 1994 Comp., p. 
950; E.O. 13020, 61 FR 54079, 3 CFR, 1996 Comp., p. 219; E.O. 13026, 
61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O. 13222, 66 FR 44025, 3 
CFR, 2001 Comp., p. 783; E.O. 13637, 78 FR 16129, 3 CFR, 2014 Comp., 
p. 223; Notice of November 10, 2021, 86 FR 62891 (November 12, 
2021).

0
2. Section 734.9 is amended as follows:
0
a. In paragraph (e)(1)(ii), remove the text `` ``direct product'' of 
``technology'' or ``software'' subject to the EAR'' and add, in its 
place, the text `` ``direct product'' of U.S.-origin ``technology'' or 
``software''.
0
b. Add paragraphs (f) and (g).
    The additions read as follows:


Sec.  734.9  Foreign-Direct Product (FDP) Rules.

* * * * *
    (f) Russia FDP rule. A foreign-produced item is subject to the EAR 
if it meets both the product scope in paragraph (f)(1) of this section 
and the destination scope in paragraph (f)(2) of this section. See 
Sec.  746.8 of the EAR for license requirements, license review policy, 
and license exceptions applicable to foreign-produced items that are 
subject to the EAR pursuant to this paragraph (f).
    (1) Product scope of Russia FDP rule. The product scope applies if 
a foreign-produced item meets the conditions of either paragraph 
(f)(1)(i) or (ii) of this section.
    (i) ``Direct product'' of ``technology'' or ``software.'' A 
foreign-produced item meets the product scope of this paragraph 
(f)(1)(i) if the foreign-produced item is not designated EAR99 and is a 
``direct product'' of U.S.-origin ``technology'' or ``software'' 
subject to the EAR that is specified in any ECCN in product groups D or 
E in Categories 3, 4, 5, 6, 7, 8, or 9 of the CCL; or
    (ii) ``Direct product'' of a complete plant or `major component' of 
a plant. A foreign-produced item, meets the product scope of this 
paragraph (f)(1)(ii) if the foreign-produced item is not designated 
EAR99 and is produced by any plant or `major component' of a plant that 
is located outside the United States, when the plant or `major 
component' of a plant, whether made in the United States or a foreign 
country, itself is a ``direct product'' of U.S.-origin ``technology'' 
or ``software'' subject to the EAR that is specified in any ECCN

[[Page 12237]]

in product groups D or E in Categories 3, 4, 5, 6, 7, 8, or 9 of the 
CCL.
    (2) Destination scope of the Russia FDP rule. A foreign-produced 
item meets the destination scope of this paragraph (f)(2) if there is 
``knowledge'' that the foreign-produced item is destined to Russia or 
will be incorporated into or used in the ``production'' or 
``development'' of any ``part,'' ``component,'' or ``equipment'' not 
designated EAR99 and produced in or destined to Russia.
    (g) Russia-Military End User FDP rule. A foreign-produced item is 
subject to the EAR if it meets both the product scope in paragraph 
(g)(1) of this section and the end-user scope in paragraph (g)(2) of 
this section. See Sec.  746.8 of the EAR for license requirements, 
license review policy, and license exceptions applicable to foreign-
produced items that are subject to the EAR pursuant to this paragraph 
(g).
    (1) Product Scope of Russia-Military End User FDP rule. The product 
scope applies if a foreign-produced item meets the conditions of either 
paragraph (g)(1)(i) or (ii) of this section.
    (i) ``Direct product'' of ``technology'' or ``software.'' A 
foreign-produced item meets the product scope of this paragraph 
(g)(1)(i) if the foreign-produced item is a ``direct product'' of 
``technology'' or ``software'' subject to the EAR and specified in any 
ECCN in product groups D or E in any categories of the CCL; or
    (ii) ``Direct product'' of a complete plant or `major component' of 
a plant. A foreign-produced item meets the product scope of this 
paragraph (g)(1)(ii) if the foreign-produced item is produced by any 
plant or `major component' of a plant that is located outside the 
United States, when the plant or `major component' of a plant, whether 
made in the United States or a foreign country, itself is a ``direct 
product'' of U.S.-origin ``technology'' or ``software'' subject to the 
EAR that is specified in any ECCN in product groups D or E in any 
categories of the CCL.
    (2) End-user scope of the Russia `Military End User' FDP rule. A 
foreign-produced item meets the end-user scope of this paragraph (g)(2) 
if there is ``knowledge'' that:
    (i) Activities involving footnote 3 designated entities. The 
foreign-produced item will be incorporated into, or used in the 
``production'' or ``development'' of any ``part,'' ``component,'' or 
``equipment'' produced, purchased, or ordered by any entity with a 
footnote 3 designation in the license requirement column of the Entity 
List in Supplement No. 4 to part 744 of the EAR; or
    (ii) Footnote 3 designated entities as transaction parties. Any 
entity with a footnote 3 designation in the license requirement column 
of the Entity List in Supplement No. 4 to part 744 of the EAR is a 
party to any transaction involving the foreign-produced item, e.g., as 
a ``purchaser,'' ``intermediate consignee,'' ``ultimate consignee,'' or 
``end-user.''

    Note 3 to paragraph (g). A `military end user' for purposes of 
paragraph (g) is any entity listed on the Entity List in Supplement 
No. 4 to part 744 of the EAR under Russia with a footnote 3 
designation.


0
3. Supplement No. 2 to part 734 is amended by revising the third and 
fourth sentences of paragraph (a)(1) to read as follows:

Supplement No. 2 to Part 734--Guidelines for De Minimis Rules

    (a) * * *
    (1) * * * For purposes of identifying U.S.-origin controlled 
content, you should consult the Commerce Country Chart in Supplement 
No. 1 to part 738 of the EAR and controls described in part 746 of 
the EAR (excluding U.S.-origin content that meets the criteria in 
Sec.  746.8(a)(5)). Part 744 of the EAR should not be used to 
identify controlled U.S. content for purposes of determining the 
applicability of the de minimis rules. * * *
* * * * *

PART 738--COMMERCE CONTROL LIST OVERVIEW AND THE COUNTRY CHART

0
4. The authority citation for 15 CFR part 738 continues 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.; 10 U.S.C. 8720; 10 U.S.C. 8730(e); 22 U.S.C. 
287c; 22 U.S.C. 2151 note; 22 U.S.C. 3201 et seq.; 22 U.S.C. 6004; 
42 U.S.C. 2139a; 15 U.S.C. 1824; 50 U.S.C. 4305; 22 U.S.C. 7201 et 
seq.; 22 U.S.C. 7210; E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 
228; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783.


0
5. Supplement no. 1 to part 738 is amended by revising footnotes 6 and 
8 to read as follows:

Supplement No. 1 to Part 738--Commerce Country Chart

* * * * *
    \6\ See Sec.  746.5 of the EAR for additional license 
requirements under the Russian Industry Sector Sanctions for ECCNs 
0A998, 1C992, 3A229, 3A231, 3A232, 6A991, 8A992, and 8D999 and items 
identified in Supplement No. 2 to part 746 of the EAR. See Sec.  
746.8 of the EAR for Sanctions against Russia, including additional 
license requirements for items listed in any ECCN in Categories 3, 
4, 5, 6, 7, 8, or 9 of the CCL.
* * * * *
    \8\ See Sec.  746.6 of the EAR for additional license 
requirements for exports and reexports to the Crimea region of 
Ukraine and the so-called Donetsk People's Republic (DNR) and 
Luhansk People's Republic (LNR) regions of Ukraine and transfers 
(in-country) within the Crimea, DNR, and LNR regions of Ukraine for 
all items subject to the EAR, other than food and medicine 
designated as EAR99 and certain EAR99 or ECCN 5D992.c software for 
internet-based communications.

PART 740--LICENSE EXCEPTIONS

0
6. The authority citation for 15 CFR part 740 continues 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. 7201 et seq.; E.O. 13026, 61 FR 
58767, 3 CFR, 1996 Comp., p. 228; E.O. 13222, 66 FR 44025, 3 CFR, 
2001 Comp., p. 783.


0
7. Section 740.2 is amended by revising paragraph (a)(6) to read as 
follows:


Sec.  740.2  Restrictions on all License Exceptions.

    (a) * * *
    (6) The export or reexport is to a sanctioned destination (Cuba, 
Iran, North Korea, Syria, Crimea region of Ukraine, and the so-called 
Donetsk People's Republic (DNR) and Luhansk People's Republic (LNR) 
regions of Ukraine) or a license is required based on a limited 
sanction (Russia) unless a license exception or portion thereof is 
specifically listed in the license exceptions paragraph pertaining to a 
particular sanctioned country in part 746 of the EAR.
* * * * *

0
8. Section 740.19 is amended by revising paragraphs (a), (b) 
introductory text, and (c) to read as follows:


Sec.  740.19  Consumer Communications Devices (CCD).

    (a) Authorizations. This section authorizes the export, reexport, 
or transfer (in-country) of commodities and software to Cuba and Russia 
subject to the requirements stated in this section. This section does 
not authorize U.S. owned or controlled entities in third countries to 
engage in reexports of foreign produced commodities to Cuba for which 
no license would be issued by the Department of the Treasury pursuant 
to 31 CFR 515.559.
    (b) Eligible commodities and software. Commodities and software in 
paragraphs (b)(1) through (17) of this section are eligible for export, 
reexport, or transfer (in-country) under this section to and within 
Cuba and Russia.
* * * * *
    (c) Eligible and ineligible end users--(1) Organizations. (i) The 
license exception in this section may be used to export, reexport, or 
transfer (in-country) eligible commodities and software to

[[Page 12238]]

and for the use of independent non-governmental organizations in Cuba 
or Russia.
    (ii) The Cuban Government, the Cuban Communist Party, the Russian 
Government, and organizations administered or controlled by the Cuban 
Government, the Cuban Communist Party, or the Russian Government are 
not eligible end users.
    (iii) [Reserved]
    (2) Individuals. The license exception in this section may be used 
to export, reexport or transfer (in-country) eligible commodities and 
software to and for the use of individuals other than the following:
    (i) Ineligible Cuban Government officials. Ministers and Vice-
Ministers; members of the Council of State; members of the Council of 
Ministers; members and employees of the National Assembly of People's 
Power; members of any provincial assembly; local sector chiefs of the 
Committees for the Defense of the Revolution; Director Generals and 
sub-Director Generals and higher of all Cuban ministries and state 
agencies; employees of the Ministry of the Interior (MININT); employees 
of the Ministry of Defense (MINFAR); secretaries and first secretaries 
of the Confederation of Labor of Cuba (CTC) and its component unions; 
chief editors, editors and deputy editors of Cuban state-run media 
organizations and programs, including newspapers, television, and 
radio; or members and employees of the Supreme Court (Tribuno Supremo 
Nacional).
    (ii) Ineligible Cuban Communist Party officials. Members of the 
Politburo.
    (iii) Ineligible Russian Government officials. The President, Prime 
Minister, and Deputy Prime Ministers; Federal Ministers; Chairman, 
Deputy Chairman, and Secretary of the Security Council; members and 
employees of the Federal Assembly (the State Duma and the Federation 
Council); members and employees of the Supreme Court and the 
Constitutional Court; Chief and all employees of the General Staff of 
the armed forces; employees of the Ministry of Defence; Director and 
employees of the Federal Security Service, Director and employees of 
the Foreign Intelligence Service; employees of the Ministry of the 
Interior; employees of state committees, chief editors, editors and 
deputy editors of Russian state-run media organizations and programs, 
including newspapers, television, and radio; offices, services, 
agencies and other entities organized under or reporting to the federal 
government.

0
9. Supplement no. 1 to part 740 is amended by revising the entry for 
``Russia'' and footnote 1 in the Country Group D table to read as 
follows:

Supplement No. 1 to Part 740--Country Groups

* * * * *

                                                                     Country Group D
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                         [D:5] U.S. arms
                              Country                                 [D:1] National   [D:2] Nuclear    [D:3] Chemical   [D:4] Missile      embargoed
                                                                         security                        & biological      technology     countries \1\
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                      * * * * * * *
Russia.............................................................               X                X                X                X                X
 
                                                                      * * * * * * *
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ Note to Country Group D:5: Countries subject to U.S. arms embargoes are identified by the State Department through notices published in the Federal
  Register. The list of arms embargoed destinations in this table is drawn from 22 CFR 126.1 and State Department Federal Register notices related to
  arms embargoes (compiled at www.pmddtc.state.gov/embargoed_countries/) and will be amended when the State Department publishes subsequent
  notices. If there are any discrepancies between the list of countries in this table and the countries identified by the State Department as subject to
  a U.S. arms embargo (in the Federal Register), the State Department's list of countries subject to U.S. arms embargoes shall be controlling.

* * * * *

PART 742--CONTROL POLICY--CCL BASED CONTROLS

0
10. The authority citation for 15 CFR part 742 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; Sec. 1503, Pub. L. 108-11, 117 
Stat. 559; 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. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 
783; Presidential Determination 2003-23, 68 FR 26459, 3 CFR, 2004 
Comp., p. 320; Notice of November 10, 2021, 86 FR 62891 (November 
12, 2021).

0
11. Section 742.2 is amended by revising paragraph (b)(4) to read as 
follows:


Sec.  742.2  Proliferation of chemical and biological weapons.

* * * * *
    (b) * * *
    (4) License applications for items described in paragraph (a) of 
this section, when destined for the People's Republic of China will be 
reviewed in accordance with the licensing policies in both paragraph 
(b) of this section and Sec.  742.4(b)(7). When such items are destined 
to Russia, license applications will be reviewed under a policy of 
denial. However, exports and reexports of items to Russia in support of 
U.S.-Russia civil space cooperation activities will be reviewed on a 
case-by-case basis, as well as certain other certain specified 
activities specified in Sec.  746.8 of the EAR. See Sec.  746.8(b).
* * * * *

0
12. Section 742.3 is amended by revising paragraph (b)(4) to read as 
follows:


Sec.  742.3  Nuclear nonproliferation.

* * * * *
    (b) * * *
    (4) License applications for items described in paragraph (a) of 
this section, when destined for the People's Republic of China will be 
reviewed in accordance with the licensing policies in both paragraph 
(b) of this section and Sec.  742.4(b)(7). When such items are destined 
to Russia, license applications will be reviewed under a policy of 
denial. However, exports and reexports of items to Russia in support of 
U.S.-Russia civil space cooperation activities will be reviewed on a 
case-by-case basis. See Sec.  746.8(b) of the EAR.
* * * * *

0
13. Section 742.4 is amended by revising paragraph (b)(7)(i) and adding 
paragraph (b)(9) to read as follows:


Sec.  742.4  National security.

* * * * *
    (b) * * *

[[Page 12239]]

    (7)(i) For Burma, Cambodia, the People's Republic of China (China), 
and Venezuela, all applications will be reviewed to determine the risk 
of diversion to a military end user or military end use. There is a 
general policy of approval for license applications to export, 
reexport, or transfer items determined to be for civil end users for 
civil end uses. There is a presumption of denial for license 
applications to export reexport, or transfer items that would make a 
material contribution to the ``development,'' ``production,'' 
maintenance, repair, or operation of weapons systems, subsystems, and 
assemblies, such as, but not limited to, those described in supplement 
no. 7 to this part, of Burma, Cambodia, China, or Venezuela.
* * * * *
    (9) For the Russian Federation, all applications will be reviewed 
in accordance with the licensing policy set forth in Sec.  746.8(b) of 
the EAR.
* * * * *

0
14. Section 742.5 is amended by revising paragraph (b)(5) to read as 
follows:


Sec.  742.5  Missile technology.

* * * * *
    (b) * * *
    (5) License applications for items described in paragraph (a) of 
this section, when destined for the People's Republic of China, will be 
reviewed in accordance with the licensing policies in both paragraph 
(b) of this section and Sec.  742.4(b)(7). When such items are destined 
to Russia, license applications will be reviewed under a policy of 
denial. However, exports and reexports of items to Russia in support of 
U.S.-Russia civil space cooperation activities will be reviewed on a 
case-by-case basis. See Sec.  746.8(b).
* * * * *

0
15. Section 742.6 is amended by revising paragraph (b)(8) and adding 
paragraph (b)(9) to read as follows:


Sec.  742.6  Regional stability.

* * * * *
    (b) * * *
    (8) China or Venezuela. Applications to export or reexport items 
described in paragraph (a)(7) of this section to China or Venezuela 
will be reviewed on a case-by-case basis to determine whether the 
transaction is contrary to the national security or foreign policy 
interests of the United States, including the foreign policy interest 
of promoting the observance of human rights throughout the world. Such 
applications will also be reviewed consistent with United States arms 
embargo policies in Sec.  126.1 of the ITAR (22 CFR 126.1). When 
destined to China, items classified under any 9x515.y ECCN will be 
subject to a policy of denial consistent with paragraph (b)(1) of this 
section.
    (9) Russia. Applications to export or reexport items described in 
paragraph (a)(7) of this section will be reviewed pursuant to the 
licensing policy set forth in Sec.  746.8(b) of the EAR, as well as the 
foreign policy interest of promoting the observance of human rights 
throughout the world and consistent with United States arms embargo 
policies in Sec.  126.1 of the ITAR (22 CFR 126.1).
* * * * *

PART 744--END USE AND END USER CONTROLS

0
16. The authority citation for 15 CFR part 744 continues 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 15, 2021, 86 FR 52069 (September 17, 2021); Notice of 
November 10, 2021, 86 FR 62891 (November 12, 2021).

0
17. Section 744.21 is revised to read as follows:


Sec.  744.21  Restrictions on certain `military end use' or `military 
end user' in Burma, Cambodia, the People's Republic of China, the 
Russian Federation, or Venezuela.

    (a) General prohibition. In addition to the license requirements 
for items specified on the Commerce Control List (CCL) (supplement no. 
1 to this part), you may not export, reexport, or transfer (in-country) 
any item subject to the EAR listed in supplement no. 2 to this part to 
Burma, Cambodia, the People's Republic of China (China), or Venezuela, 
or any item ``subject to the EAR'' except for food or medicine 
designated as EAR99, or ECCN 5A992.c and 5D992.c unless for Russian 
``government end users'' and Russian state-owned enterprises (SoEs) to 
the Russian Federation, without a license if, at the time of the 
export, reexport, or transfer (in-country), you have ``knowledge,'' as 
defined in Sec.  772.1 of the EAR, that the item is intended, entirely 
or in part, for a `military end use,' as defined in paragraph (f) of 
this section, or a `military end user,' as defined in paragraph (g) of 
this section, in Burma, Cambodia, China, the Russian Federation, or 
Venezuela.
    (b) Additional prohibition on those informed by BIS. BIS may inform 
you either individually by specific notice, through amendment to the 
EAR published in the Federal Register, or through a separate 
notification published in the Federal Register, that a license is 
required for specific exports, reexports, or transfers (in-country) of 
any item because there is an unacceptable risk of use in or diversion 
to a `military end use' or `military end user' in Burma, Cambodia, 
China, the Russian Federation, or Venezuela. Specific notice will be 
given only by, or at the direction of, the Deputy Assistant Secretary 
for Export Administration. When such notice is provided orally, it will 
be followed by written notice within two working days signed by the 
Deputy Assistant Secretary for Export Administration or the Deputy 
Assistant Secretary's designee. The absence of BIS notification does 
not excuse the exporter from compliance with the license requirements 
of paragraph (a) of this section.
    (1) `Military End-User' (MEU) List and Entity List. BIS may inform 
and provide notice to the public that certain entities are subject to 
the additional prohibition described under this paragraph (b) following 
a determination by the End-User Review Committee (ERC) that a specific 
entity is a `military end user' pursuant to this section and therefore 
any exports, reexports, or transfers (in-country) to that entity 
represent an unacceptable risk of use in or diversion to a `military 
end use' or `military end user' in Burma, Cambodia, China, the Russian 
Federation or Venezuela. Such entities in Burma, Cambodia, China, or 
Venezuela may be added to supplement no. 7 to this part--`Military End-
User' (MEU) List. Such entities in the Russian Federation may be added 
to supplement No. 4 to this part--Entity List. License requirements for 
listed MEU are described in paragraph (b)(1)(ii) of this section. The 
listing of entities under supplement no. 7 or 4 to this part is not an 
exhaustive listing of `military end users' for purposes of this 
section. Exporters, reexporters, and transferors are responsible for 
determining whether transactions with entities not listed on supplement 
no. 7 or 4 to this part are subject to a license requirement under 
paragraph (a) of this section. The process in this paragraph (b)(1) for 
placing entities on the MEU List and Entity List is only one method BIS 
may use to inform exporters, reexporters, and transferors of license 
requirements under this section.

[[Page 12240]]

    (i) End-User Review Committee (ERC). The End-User Review Committee 
(ERC), composed of representatives of the Departments of Commerce 
(Chair), State, Defense, Energy and, where appropriate, the Treasury, 
makes all decisions regarding additions to, removals from, or other 
modifications to the MEU List and Entity List. Decisions by the ERC for 
purposes of the MEU List and Entity List will be made following the 
procedures identified in this section and in supplement no. 5 to this 
part--Procedures for End-User Review Committee Entity List and 
`Military End User' (MEU) List Decisions.
    (ii) License requirement for parties to the transaction. Consistent 
with paragraph (a) of this section, a license is required for the 
export, reexport, or transfer (in-country) of any item subject to the 
EAR listed in supplement no. 2 to this part when an entity that is 
listed on the MEU List under Burma, Cambodia, the People's Republic of 
China (China), or Venezuela is a party to the transaction as described 
in Sec.  748.5(c) through (f) of the EAR. Consistent with paragraph (a) 
of this section, a license is required for the export, reexport, or 
transfer (in-country) of any item subject to the EAR except for food or 
medicine designated as EAR99, or ECCN 5A992.c and 5D992.c unless for 
Russian ``government end users'' and Russian state-owned enterprises 
(SoEs) to Russia when an entity that is listed on the Entity List under 
Russia pursuant to this section is a party to the transaction as 
described in Sec.  748.5(c) through (f) of the EAR.
    (2) Requests for removal from or modification of `Military End 
User' (MEU) List and Entity List. Any entity listed on the MEU List or 
Entity List pursuant to this section may request that its listing be 
removed or modified. All such requests, including reasons therefor, 
must be in writing and sent to: Chair, End-User Review Committee, 
Bureau of Industry and Security, U.S. Department of Commerce, 14th 
Street and Pennsylvania Avenue NW, Room 3886, Washington, DC 20230; or 
by email at [email protected]. In order for an entity listed on the MEU 
List or the Entity List pursuant to this section to petition BIS for 
their removal or modification, as applicable, the entity must address 
why the entity is not a `military end user' for purposes of this 
section.
    (i) Review. The ERC will review such requests for removal or 
modification in accordance with the procedures set forth in supplement 
no. 5 to this part.
    (ii) BIS action. The Deputy Assistant Secretary for Export 
Administration will convey the decision on the request to the requester 
in writing. That decision will be the final agency action on the 
request.
    (c) License exception. Despite the prohibitions described in 
paragraphs (a) and (b) of this section, you may export, reexport, or 
transfer (in-country) items subject to the EAR under the provisions of 
License Exception GOV set forth in Sec.  740.11(b)(2)(i) and (ii) of 
the EAR.
    (d) License application procedure. When submitting a license 
application pursuant to this section, you must state in the 
``additional information'' block of the application that ``this 
application is submitted because of the license requirement in this 
section (Restrictions on a 'Military End Use' or `Military End User' in 
Burma, Cambodia, the People's Republic of China, the Russian 
Federation, or Venezuela).'' In addition, either in the additional 
information block of the application or in an attachment to the 
application, you must include all known information concerning the 
`military end use' and `military end user(s)' of the item(s). If you 
submit an attachment with your license application, you must reference 
the attachment in the ``additional information'' block of the 
application.
    (e) License review standards. (1) Applications to export, reexport, 
or transfer (in-country) items to or within Burma, Cambodia, the 
People's Republic of China (China), or Venezuela described in paragraph 
(a) of this section will be reviewed with a presumption of denial. 
Applications to export, reexport, or transfer (in-country) items to or 
within Russia described in paragraph (a) of this section will be 
reviewed with a policy of denial.
    (2) Applications may be reviewed under chemical and biological 
weapons, nuclear nonproliferation, or missile technology review 
policies, as set forth in Sec. Sec.  742.2(b)(4), 742.3(b)(4), and 
742.5(b)(4) of the EAR, if the end use may involve certain 
proliferation activities.
    (3) Applications for items requiring a license for any reason that 
are destined to Burma, Cambodia, China, the Russian Federation, or 
Venezuela for a `military end use' or `military end user' also will be 
subject to the review policy stated in paragraph (e)(1) of this 
section.
    (f) Military end use. In this section, 'military end use' means: 
Incorporation into a military item described on the U.S. Munitions List 
(USML) (22 CFR part 121, International Traffic in Arms Regulations); 
incorporation into items classified under Export Control Classification 
Numbers (ECCNs) ending in ``A018'' or under ``600 series'' ECCNs; or 
any item that supports or contributes to the operation, installation, 
maintenance, repair, overhaul, refurbishing, ``development,'' or 
``production,'' of military items described on the USML, or items 
classified under ECCNs ending in ``A018'' or under ``600 series'' 
ECCNs.
    (g) Military end user. In this section, the term `military end 
user' means the national armed services (army, navy, marine, air force, 
or coast guard), as well as the national guard and national police, 
government intelligence or reconnaissance organizations (excluding 
those described in Sec.  744.22(f)(2)), or any person or entity whose 
actions or functions are intended to support `military end uses' as 
defined in paragraph (f) of this section.
    (h) Effects on contracts. Transactions involving the export, 
reexport, or transfer (in country) of items to or within Venezuela are 
not subject to the provisions of this section if the contracts for such 
transactions were signed prior to November 7, 2014.

0
18. Supplement No. 4 to part 744 is amended:
0
a. Under Russia:
0
i. By adding in alphabetical order entries for ``Admiralty Shipyard 
JSC;'' ``Aleksandrov Scientific Research Technological Institute 
NITI;'' ``Argut OOO;'' ``Communication Center of the Ministry of 
Defence;'' ``Federal Research Center Boreskov Institute of Catalysis;''
0
ii. By revising the entry for ``Federal Security Service (FSB);''
0
iii. By adding in alphabetical order entries for ``Federal State 
Budgetary Enterprise of the Administration of the President of 
Russia;'' '' Federal State Budgetary Enterprise Special Flight Unit 
Rossiya of the Administration of the President of Russia;'' ``Federal 
State Unitary Enterprise Dukhov Automatics Research Institute 
(VNIIA);'' ``Foreign Intelligence Service (SVR);'' ``Forensic Center of 
Nizhniy Novgorod Region Main Directorate of the Ministry of Interior 
Affairs;'' ``International Center for Quantum Optics and Quantum 
Technologies LLC;'' ``Irkut Corporation;'' ``Irkut Research and 
Production Corporation Public Joint Stock Company;'' ``Joint Stock 
Company Scientific Research Institute of Computing Machinery;'' ``JSC 
Central Research Institute of Machine Building (JSC TsNIIMash);'' ``JSC 
Kazan Helicopter Plant Repair Service;'' ``JSC Rocket and Space 
Centre--Progress;'' ``Kamensk-Uralsky Metallurgical Works J.S. Co.;'' 
``Kazan Helicopter Plant PJSC;'' ``Komsomolsk-na-Amur Aviation 
Production Organization (KNAAPO);''
0
iv. By revising the entry for ``Main Intelligence Directorate;'' and
0
v. By adding in alphabetical order entries for ``Ministry of Defence of 
the

[[Page 12241]]

Russian Federation;'' ``Moscow Institute of Physics and Technology;'' 
``NPO High Precision Systems JSC;'' ``NPO Splav JSC;'' ``Oboronprom 
OJSC;'' ``PJSC Beriev Aircraft Company;'' ``PJSC Irkut Corporation;'' 
``PJSC Kazan Helicopters;'' ``POLYUS Research Institute of M.F. 
Stelmakh Joint Stock Company;'' ``Promtech-Dubna, JSC;'' ``Public Joint 
Stock Company United Aircraft Corporation;'' ``Radiotechnical and 
Information Systems (RTI) Concern;'' ``Rapart Services LLC;'' 
``Rosoboronexport OJSC (ROE);'' ``Rostec (Russian Technologies State 
Corporation);'' ``Rostekh--Azimuth;'' ``Russian Aircraft Corporation 
MiG;'' ``Russian Helicopters JSC;'' ``SP Kvant;'' ``Sukhoi Aviation 
JSC;'' ``Sukhoi Civil Aircraft;'' ``Tactical Missiles Corporation 
JSC;'' ``Tupolev JSC;'' ``UEC-Saturn;'' ``United Aircraft 
Corporation;'' ``United Engine Corporation;'' and ``United Instrument 
Manufacturing Corporation''; and
0
b. By adding footnote 3.
    The additions read as follows:

Supplement No. 4 to Part 744--Entity List

* * * * *

----------------------------------------------------------------------------------------------------------------
                                                                              License review    Federal Register
        Country                     Entity             License requirement        policy            citation
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------
RUSSIA.................                                         * * * * * *
                         Admiralty Shipyard JSC, 203,  All items subject    Policy of denial.  87 FR [INSERT FR
                          Fontanka Emb., 190121, St.    to the EAR except    See Sec.  Sec.     PAGE NUMBER], 3/
                          Peterburg, Russia.            for food or          746.8(b) and       3/2022.
                                                        medicine             744.21(e).
                                                        designated as
                                                        EAR99. (See Sec.
                                                        Sec.
                                                        734.9(g),\3\
                                                        746.8(a)(3), and
                                                        744.21(b) of the
                                                        EAR)
                                                                * * * * * *
                         Aleksandrov Scientific        All items subject    Policy of denial.  87 FR [INSERT FR
                          Research Technological        to the EAR except    See Sec.  Sec.     PAGE NUMBER], 3/
                          Institute NITI, Koporskoe     for food or          746.8(b) and       3/2022.
                          Highway, House 72, Sosnovy    medicine             744.21(e).
                          Bor, Russia.                  designated as
                                                        EAR99. (See Sec.
                                                        Sec.
                                                        734.9(g),\3\
                                                        746.8(a)(3), and
                                                        744.21(b) of the
                                                        EAR)
                                                                * * * * * *
                         Argut OOO, 6 Mnevniki str     All items subject    Policy of denial.  87 FR [INSERT FR
                          end 6 fl, Moscow 123308,      to the EAR except    See Sec.  Sec.     PAGE NUMBER], 3/
                          Russia.                       for food or          746.8(b) and       3/2022.
                                                        medicine             744.21(e).
                                                        designated as
                                                        EAR99, or ECCN
                                                        5A992.c and
                                                        5D992.c unless for
                                                        Russian
                                                        ``government end
                                                        users'' and
                                                        Russian state-
                                                        owned enterprises
                                                        (SoEs) to Russia.
                                                        (See Sec.  Sec.
                                                        734.9(g),\3\
                                                        746.8(a)(3), and
                                                        744.21(b) of the
                                                        EAR)
                                                                * * * * * *
                         Communication Center of the   All items subject    Policy of denial.  87 FR [INSERT FR
                          Ministry of Defence,          to the EAR except    See Sec.  Sec.     PAGE NUMBER], 3/
                          Bolshoi Znamenskiy per. 21,   for food or          746.8(b) and       3/2022.
                          Moscow, Russia.               medicine             744.21(e).
                                                        designated as
                                                        EAR99. (See Sec.
                                                        Sec.
                                                        734.9(g),\3\
                                                        746.8(a)(3), and
                                                        744.21(b) of the
                                                        EAR)
                                                                * * * * * *
                         Federal Research Center       All items subject    Policy of denial.  87 FR [INSERT FR
                          Boreskov Institute of         to the EAR except    See Sec.  Sec.     PAGE NUMBER], 3/
                          Catalysis, pr. Lavrentieva    for food or          746.8(b) and       3/2022.
                          5, Novosibirsk 630090,        medicine             744.21(e).
                          Russia.                       designated as
                                                        EAR99. (See Sec.
                                                        Sec.
                                                        734.9(g),\3\
                                                        746.8(a)(3), and
                                                        744.21(b) of the
                                                        EAR)

[[Page 12242]]

 
                         Federal Security Service      All items subject    Presumption of     82 FR 724, 1/4/
                          (FSB), a.k.a., the            to the EAR, apart    denial.            17. 82 FR 18219,
                          following one alias:          from items that                         4/18/17. 86 FR
                         --Federalnaya Sluzhba          are related to                          37903, 7/19/21.
                          Bezopasnosti.                 transactions that                       87 FR [INSERT FR
                         Ulitsa Kuznetskiy Most, Dom    are authorized by                       PAGE NUMBER], 3/
                          22, Moscow 107031, Russia;    the Department of                       3/2022.
                          and Lubyanskaya Ploschad,     the Treasury's
                          Dom 2, Moscow 107031,         Office of Foreign
                          Russia.                       Assets Control
                                                        pursuant to
                                                        General License
                                                        No. 1B of March 2,
                                                        2021 and except
                                                        for food or
                                                        medicine
                                                        designated as
                                                        EAR99. (See Sec.
                                                        Sec.
                                                        734.9(g),\3\
                                                        746.8(a)(3), and
                                                        744.21(b) of the
                                                        EAR)
                                                                * * * * * *
                         Federal State Budgetary       All items subject    Policy of denial.  87 FR [INSERT FR
                          Enterprise of the             to the EAR except    See Sec.  Sec.     PAGE NUMBER], 3/
                          Administration of the         for food or          746.8(b) and       3/2022].
                          President of Russia, 1-ya     medicine             744.21(e).
                          Reysovaya Street, 1, Moscow   designated as
                          119027, Russia.               EAR99. (See Sec.
                                                        Sec.
                                                        734.9(g),\3\
                                                        746.8(a)(3), and
                                                        744.21(b) of the
                                                        EAR)
                         Federal State Budgetary       All items subject    Policy of denial.  87 FR [INSERT FR
                          Enterprise Special Flight     to the EAR except    See Sec.  Sec.     PAGE NUMBER], 3/
                          Unit Rossiya of the           for food or          746.8(b) and       3/2022.
                          Administration of the         medicine             744.21(e).
                          President of Russia, 1-ya     designated as
                          Reysovaya Street, 1, Moscow   EAR99. (See Sec.
                          119027, Russia.               Sec.
                                                        734.9(g),\3\
                                                        746.8(a)(3), and
                                                        744.21(b) of the
                                                        EAR)
                         Federal State Unitary         All items subject    Policy of denial.  87 FR [INSERT FR
                          Enterprise Dukhov             to the EAR except    See Sec.  Sec.     PAGE NUMBER], 3/
                          Automatics Research           for food or          746.8(b) and       3/2022.
                          Institute (VNIIA), 22,        medicine             744.21(e).
                          Sushchevskaya UI, Moscow      designated as
                          127055RU.                     EAR99. (See Sec.
                                                        Sec.
                                                        734.9(g),\3\
                                                        746.8(a)(3), and
                                                        744.21(b) of the
                                                        EAR)
                         Foreign Intelligence Service  All items subject    Policy of denial.  87 FR [INSERT FR
                          (SVR), Yasenevo 11            to the EAR except    See Sec.  Sec.     PAGE NUMBER], 3/
                          Kolpachny, Moscow, 0101000.   for food or          746.8(b) and       3/2022.
                                                        medicine             744.21(e).
                                                        designated as
                                                        EAR99. (See Sec.
                                                        Sec.
                                                        734.9(g),\3\
                                                        746.8(a)(3), and
                                                        744.21(b) of the
                                                        EAR)
                         Forensic Center of Nizhniy    All items subject    Policy of denial.  87 FR [INSERT FR
                          Novgorod Region Main          to the EAR except    See Sec.  Sec.     PAGE NUMBER], 3/
                          Directorate of the Ministry   for food or          746.8(b) and       3/2022.
                          of Interior Affairs, Gorkiy   medicine             744.21(e).
                          Street, 71, Nizhniy           designated as
                          Novgorod 603950, Russia.      EAR99. (See Sec.
                                                        Sec.
                                                        734.9(g),\3\
                                                        746.8(a)(3), and
                                                        744.21(b) of the
                                                        EAR)
                                                                * * * * * *
                         International Center for      All items subject    Policy of denial.  87 FR [INSERT FR
                          Quantum Optics and Quantum    to the EAR except    See Sec.  Sec.     PAGE NUMBER], 3/
                          Technologies LLC, a.k.a.      for food or          746.8(b) and       3/2022.
                          the following two aliases:    medicine             744.21(e).
                         --Russian Quantum Center and   designated as
                         --RQC.                         EAR99, or ECCN
                         Business-center ``Ural,''      5A992.c and
                          100 Novaya Street,            5D992.c unless for
                          Skolkovo, Moscow, 143025,     Russian
                          Russia; and                   ``government end
                         30 Bolshoy Blvd., Bldg. 1,     users'' and
                          Moscow, 121205, Russia; and   Russian state-
                         100A Novaya Street,            owned enterprises
                          Skolkovo, Odintsovsky         (SoEs) to Russia.
                          District, Moscow, 143025,     (See Sec.  Sec.
                          Russia.                       734.9(g),\3\
                                                        746.8(a)(3), and
                                                        744.21(b) of the
                                                        EAR)
                                                                * * * * * *

[[Page 12243]]

 
                         Irkut Corporation,            All items subject    Policy of denial.  87 FR [INSERT FR
                          Leningradsky Prospect 68,     to the EAR except    See Sec.  Sec.     PAGE NUMBER], 3/
                          Moscow 125315, Russia.        for food or          746.8(b) and       3/2022.
                                                        medicine             744.21(e).
                                                        designated as
                                                        EAR99. (See Sec.
                                                        Sec.
                                                        734.9(g),\3\
                                                        746.8(a)(3), and
                                                        744.21(b) of the
                                                        EAR)
                         Irkut Research and            All items subject    Policy of denial.  87 FR [INSERT FR
                          Production Corporation        to the EAR except    See Sec.  Sec.     PAGE NUMBER], 3/
                          Public Joint Stock Company,   for food or          746.8(b) and       3/2022.
                          68 Leningradsky Prospect,     medicine             744.21(e).
                          Moscow 125315, Russia.        designated as
                                                        EAR99. (See Sec.
                                                        Sec.
                                                        734.9(g),\3\
                                                        746.8(a)(3), and
                                                        744.21(b) of the
                                                        EAR)
                                                                * * * * * *
                         Joint Stock Company           All items subject    Policy of denial.  87 FR [INSERT FR
                          Scientific Research           to the EAR except    See Sec.  Sec.     PAGE NUMBER], 3/
                          Institute of Computing        for food or          746.8(b) and       3/2022.
                          Machinery, Melnichnaya        medicine             744.21(e).
                          Street, 31, Kirov 610025,     designated as
                          Russia.                       EAR99. (See Sec.
                                                        Sec.
                                                        734.9(g),\3\
                                                        746.8(a)(3), and
                                                        744.21(b) of the
                                                        EAR)
                                                                * * * * * *
                         JSC Central Research          All items subject    Policy of denial.  87 FR [INSERT FR
                          Institute of Machine          to the EAR except    See Sec.  Sec.     PAGE NUMBER], 3/
                          Building (JSC TsNIIMash),     for food or          746.8(b) and       3/2022.
                          Pionerskaya Street, 4,        medicine             744.21(e).
                          korpus 22, Moskovskaya        designated as
                          obl., Korolov 141070,         EAR99, or ECCN
                          Russia.                       5A992.c and
                                                        5D992.c unless for
                                                        Russian
                                                        ``government end
                                                        users'' and
                                                        Russian state-
                                                        owned enterprises
                                                        (SoEs) to Russia.
                                                        (See Sec.  Sec.
                                                        734.9(g),\3\
                                                        746.8(a)(3), and
                                                        744.21(b) of the
                                                        EAR) This license
                                                        requirement may be
                                                        overcome by
                                                        License Exception
                                                        GOV under Sec.
                                                        740.11(b)(2) and
                                                        (e)
                                                                * * * * * *
                         JSC Kazan Helicopter Plant    All items subject    Policy of denial.  87 FR [INSERT FR
                          Repair Service, a.k.a., the   to the EAR except    See Sec.  Sec.     PAGE NUMBER], 3/
                          following two aliases:        for food or          746.8(b) and       3/2022.
                         --Kazanski Vertoletny Zavod    medicine             744.21(e).
                          Remservis; and                designated as
                         --KVZ Remservis.               EAR99. (See Sec.
                         Ulitsa Tetsevskaya 14,         Sec.
                          Kazan, Russia.                734.9(g),\3\
                                                        746.8(a)(3), and
                                                        744.21(b) of the
                                                        EAR)
                         JSC Rocket and Space Centre-- All items subject    Policy of denial.  87 FR [INSERT FR
                          Progress, Zemetsa Street      to the EAR except    See Sec.  Sec.     PAGE NUMBER], 3/
                          18, Samarskaya Oblast,        for food or          746.8(b) and       3/2022.
                          Samara 443009, Russia.        medicine             744.21(e).
                                                        designated as
                                                        EAR99. (See Sec.
                                                        Sec.
                                                        734.9(g),\3\
                                                        746.8(a)(3), and
                                                        744.21(b) of the
                                                        EAR) This license
                                                        requirement may be
                                                        overcome by
                                                        License Exception
                                                        GOV under Sec.
                                                        740.11(b)(2) and
                                                        (e)
                                                                * * * * * *

[[Page 12244]]

 
                         Kamensk-Uralsky               All items subject    Policy of denial.  87 FR [INSERT FR
                          Metallurgical Works J.S.      to the EAR except    See Sec.  Sec.     PAGE NUMBER], 3/
                          Co., 5 Zavodskaya St.,        for food or          746.8(b) and       3/2022.
                          Kamensk Uralsky, 623405       medicine             744.21(e).
                          Sverdlovsk region, Russia.    designated as
                                                        EAR99, or ECCN
                                                        5A992.c and
                                                        5D992.c unless for
                                                        Russian
                                                        ``government end
                                                        users'' and
                                                        Russian state-
                                                        owned enterprises
                                                        (SoEs) to Russia.
                                                        (See Sec.  Sec.
                                                        734.9(g),\3\
                                                        746.8(a)(3), and
                                                        744.21(b) of the
                                                        EAR)
                                                                * * * * * *
                         Kazan Helicopter Plant PJSC,  All items subject    Policy of denial.  87 FR [INSERT FR
                          Tetsevskaya St, Kazan         to the EAR except    See Sec.  Sec.     PAGE NUMBER], 3/
                          420085, Russia.               for food or          746.8(b) and       3/2022.
                                                        medicine             744.21(e).
                                                        designated as
                                                        EAR99. (See Sec.
                                                        Sec.
                                                        734.9(g),\3\
                                                        746.8(a)(3), and
                                                        744.21(b) of the
                                                        EAR)
                                                                * * * * * *
                         Komsomolsk-na-Amur Aviation   All items subject    Policy of denial.  87 FR [INSERT FR
                          Production Organization       to the EAR except    See Sec.  Sec.     PAGE NUMBER], 3/
                          (KNAAPO), 1 Sovetskaya        for food or          746.8(b) and       3/2022.
                          Street, Komsomolsk-on-Amur,   medicine             744.21(e).
                          Khabarovsky Krai, Russia      designated as
                          618018.                       EAR99. (See Sec.
                                                        Sec.
                                                        734.9(g),\3\
                                                        746.8(a)(3), and
                                                        744.21(b) of the
                                                        EAR)
                                                                * * * * * *
                         Main Intelligence             All items subject    Presumption of     82 FR 724, 1/4/
                          Directorate, a.k.a., the      to the EAR except    denial.            17. 87 FR
                          following three aliases       for food or                             [INSERT FR PAGE
                         --Glavnoe Razvedyvatel'noe     medicine                                NUMBER], 3/3/
                          Upravlenie;                   designated as                           2022.
                         --GRU; and                     EAR99. (See Sec.
                         --Main Intelligence            Sec.
                          Department.                   734.9(g),\3\
                         Khoroshevskoye Shosse 76,      746.8(a)(3), and
                          Khodinka, Moscow, Russia;     744.21(b) of the
                          and Ministry of Defence of    EAR)
                          the Russian Federation,
                          Frunzenskaya nab., 22/2,
                          Moscow 119160, Russia.
                                                                * * * * * *
                         Ministry of Defence of the    All items subject    Policy of denial.  87 FR [INSERT FR
                          Russian Federation,           to the EAR except    See Sec.  Sec.     PAGE NUMBER], 3/
                          including the Armed Forces    for food or          746.8(b) and       3/2022.
                          of Russia and all operating   medicine             744.21(e).
                          units wherever located.       designated as
                          This includes the national    EAR99. (See Sec.
                          armed services (army, navy,   Sec.
                          marine, air force, or coast   734.9(g),\3\
                          guard), as well as the        746.8(a)(3), and
                          national guard and national   744.21(b) of the
                          police, government            EAR) The license
                          intelligence or               requirements under
                          reconnaissance                this entry also
                          organizations of the          extend to any
                          Russian Federation. All       export, reexport
                          address located in Russia.    and transfer (in-
                                                        country) to the
                                                        entity wherever
                                                        located worldwide.
                                                                * * * * * *
                         Moscow Institute of Physics   All items subject    Policy of denial.  87 FR [INSERT FR
                          and Technology, a.k.a., the   to the EAR except    See Sec.  Sec.     PAGE NUMBER], 3/
                          following two aliases:        for food or          746.8(b) and       3/2022.
                         --MIPT; and                    medicine             744.21(e).
                         --MFTI.                        designated as
                         Dolgoprudny Campus: 9          EAR99. (See Sec.
                          Institutskiy per.,            Sec.
                          Dolgoprudny, Moscow Region    734.9(g),\3\
                          141701, Russia; and           746.8(a)(3), and
                         Zhukovsky Campus: Ulitsa       744.21(b) of the
                          Gagarina 16, Zhukovsky,       EAR)
                          Moscow Region 140180,
                          Russia; and
                         Moscow Campus 1 Stroyeniye
                          1, Klimentovsky Pereulok,
                          Moscow Region 115184,
                          Russia.
                                                                * * * * * *

[[Page 12245]]

 
                         NPO High Precision Systems    All items subject    Policy of denial.  87 FR [INSERT FR
                          JSC, Kievskaya Street 7,      to the EAR except    See Sec.  Sec.     PAGE NUMBER], 3/
                          Moscow, Russia.               for food or          746.8(b) and       3/2022.
                                                        medicine             744.21(e).
                                                        designated as
                                                        EAR99. (See Sec.
                                                        Sec.
                                                        734.9(g),\3\
                                                        746.8(a)(3), and
                                                        744.21(b) of the
                                                        EAR)
                         NPO Splav JSC, 33 ul.         All items subject    Policy of denial.  87 FR [INSERT FR
                          Shcheglov Kaya Zaseka Tula,   to the EAR except    See Sec.  Sec.     PAGE NUMBER], 3/
                          300004 Russia.                for food or          746.8(b) and       3/2022.
                                                        medicine             744.21(e).
                                                        designated as
                                                        EAR99. (See Sec.
                                                        Sec.
                                                        734.9(g),\3\
                                                        746.8(a)(3), and
                                                        744.21(b) of the
                                                        EAR)
                                                                * * * * * *
                         Oboronprom OJSC, 29/141       All items subject    Policy of denial.  87 FR [INSERT FR
                          Vereiskaya Street, Moscow,    to the EAR except    See Sec.  Sec.     PAGE NUMBER], 3/
                          121357 Russia.                for food or          746.8(b) and       3/2022.
                                                        medicine             744.21(e).
                                                        designated as
                                                        EAR99, or ECCN
                                                        5A992.c and
                                                        5D992.c unless for
                                                        Russian
                                                        ``government end
                                                        users'' and
                                                        Russian state-
                                                        owned enterprises
                                                        (SoEs) to Russia.
                                                        (See Sec.  Sec.
                                                        734.9(g),\3\
                                                        746.8(a)(3), and
                                                        744.21(b) of the
                                                        EAR)
                                                                * * * * * *
                         PJSC Beriev Aircraft          All items subject    Policy of denial.  87 FR [INSERT FR
                          Company, 1 Aviatorov          to the EAR except    See Sec.  Sec.     PAGE NUMBER], 3/
                          Square, Taganrog 347923,      for food or          746.8(b) and       3/2022.
                          Russia.                       medicine             744.21(e).
                                                        designated as
                                                        EAR99. (See Sec.
                                                        Sec.
                                                        734.9(g),\3\
                                                        746.8(a)(3), and
                                                        744.21(b) of the
                                                        EAR)
                         PJSC Irkut Corporation,       All items subject    Policy of denial.  87 FR [INSERT FR
                          Regional Aircraft 26          to the EAR except    See Sec.  Sec.     PAGE NUMBER], 3/
                          Leninskaya Sloboda, Moscow    for food or          746.8(b) and       3/2022.
                          115280, Russia.               medicine             744.21(e).
                                                        designated as
                                                        EAR99. (See Sec.
                                                        Sec.
                                                        734.9(g),\3\
                                                        746.8(a)(3), and
                                                        744.21(b) of the
                                                        EAR)
                         PJSC Kazan Helicopters,       All items subject    Policy of denial.  87 FR [INSERT FR
                          Tetsevskaya Street, 14,       to the EAR except    See Sec.  Sec.     PAGE NUMBER], 3/
                          Kazan, Tatarstan Republic     for food or          746.8(b) and       3/2022.
                          420085, Russia.               medicine             744.21(e).
                                                        designated as
                                                        EAR99. (See Sec.
                                                        Sec.
                                                        734.9(g),\3\
                                                        746.8(a)(3), and
                                                        744.21(b) of the
                                                        EAR)
                                                                * * * * * *
                         POLYUS Research Institute of  All items subject    Policy of denial.  87 FR [INSERT FR
                          M.F. Stelmakh Joint Stock     to the EAR except    Sec.  Sec.         PAGE NUMBER], 3/
                          Company, Building 1, 3        for food or          746.8(b) and       3/2022.
                          Vvedenskogo Street, Moscow,   medicine             744.21(e).
                          117342, Russia.               designated as
                                                        EAR99. (See Sec.
                                                        Sec.
                                                        734.9(g),\3\
                                                        746.8(a)(3), and
                                                        744.21(b) of the
                                                        EAR)
                                                                * * * * * *
                         Promtech-Dubna, JSC,          All items subject    Policy of denial.  87 FR [INSERT FR
                          Programmistov St., 4, Room    to the EAR except    See Sec.  Sec.     PAGE NUMBER], 3/
                          364, Dubna, Moscow 141983,    for food or          746.8(b) and       3/2022.
                          Russia.                       medicine             744.21(e).
                                                        designated as
                                                        EAR99, or ECCN
                                                        5A992.c and
                                                        5D992.c unless for
                                                        Russian
                                                        ``government end
                                                        users'' and
                                                        Russian state-
                                                        owned enterprises
                                                        (SoEs) to Russia.
                                                        (See Sec.  Sec.
                                                        734.9(g),\3\
                                                        746.8(a)(3), and
                                                        744.21(b) of the
                                                        EAR)

[[Page 12246]]

 
                                                                * * * * * *
                         Public Joint Stock Company    All items subject    Policy of denial.  87 FR [INSERT FR
                          United Aircraft               to the EAR except    See Sec.  Sec.     PAGE NUMBER], 3/
                          Corporation, Bolshaya         for food or          746.8(b) and       3/2022.
                          Pionerskaya, Moscow 115054,   medicine             744.21(e).
                          Russia.                       designated as
                                                        EAR99. (See Sec.
                                                        Sec.
                                                        734.9(g),\3\
                                                        746.8(a)(3), and
                                                        744.21(b) of the
                                                        EAR)
                                                                * * * * * *
                         Radiotechnical and            All items subject    Policy of denial.  87 FR [INSERT FR
                          Information Systems (RTI)     to the EAR except    See Sec.  Sec.     PAGE NUMBER], 3/
                          Concern, 127083, Moscow, 8    for food or          746.8(b) and       3/2022.
                          marta, 10/1 Russia.           medicine             744.21(e).
                                                        designated as
                                                        EAR99, or ECCN
                                                        5A992.c and
                                                        5D992.c unless for
                                                        Russian
                                                        ``government end
                                                        users'' and
                                                        Russian state-
                                                        owned enterprises
                                                        (SoEs) to Russia.
                                                        (See Sec.  Sec.
                                                        734.9(g),\3\
                                                        746.8(a)(3), and
                                                        744.21(b) of the
                                                        EAR)
                                                                * * * * * *
                         Rapart Services LLC,          All items subject    Policy of denial.  87 FR [INSERT FR
                          Aeroportovskaya Str. 6/2,     to the EAR except    See Sec.  Sec.     PAGE NUMBER], 3/
                          Solnechnogorskiy Region,      for food or          746.8(b) and       3/2022.
                          Dubrobki 141580, Russia.      medicine             744.21(e).
                                                        designated as
                                                        EAR99. (See Sec.
                                                        Sec.
                                                        734.9(g),\3\
                                                        746.8(a)(3), and
                                                        744.21(b) of the
                                                        EAR)
                                                                * * * * * *
                         Rosoboronexport OJSC (ROE),   All items subject    Policy of denial.  87 FR [INSERT FR
                          Strada Strominka 27,          to the EAR except    See Sec.  Sec.     PAGE NUMBER], 3/
                          Moscow, 107076 Russia.        for food or          746.8(b) and       3/2022.
                                                        medicine             744.21(e).
                                                        designated as
                                                        EAR99. (See Sec.
                                                        Sec.
                                                        734.9(g),\3\
                                                        746.8(a)(3), and
                                                        744.21(b) of the
                                                        EAR)
                                                                * * * * * *
                         Rostec (Russian Technologies  All items subject    Policy of denial.  87 FR [INSERT FR
                          State Corporation), 24        to the EAR except    See Sec.  Sec.     PAGE NUMBER], 3/
                          Usacheva Street, Moscow,      for food or          746.8(b) and       3/2022.
                          Russia 119048.                medicine             744.21(e).
                                                        designated as
                                                        EAR99. (See Sec.
                                                        Sec.
                                                        734.9(g),\3\
                                                        746.8(a)(3), and
                                                        744.21(b) of the
                                                        EAR)
                         Rostekh--Azimuth, Building    All items subject    Policy of denial.  87 FR [INSERT FR
                          2, 5 Suite X, Room 15,        to the EAR except    See Sec.  Sec.     PAGE NUMBER], 3/
                          Floor 2, Narishkinskaya       for food or          746.8(b) and       3/2022.
                          Alleya, Moscow 125167,        medicine             744.21(e).
                          Russia.                       designated as
                                                        EAR99. (See Sec.
                                                        Sec.
                                                        734.9(g),\3\
                                                        746.8(a)(3), and
                                                        744.21(b) of the
                                                        EAR)
                         Russian Aircraft Corporation  All items subject    Policy of denial.  87 FR [INSERT FR
                          MiG, Leningradskoe Highway,   to the EAR except    See Sec.  Sec.     PAGE NUMBER], 3/
                          6, Building 1, Moscow,        for food or          746.8(b) and       3/2022.
                          125171, Russia.               medicine             744.21(e).
                                                        designated as
                                                        EAR99. (See Sec.
                                                        Sec.
                                                        734.9(g),\3\
                                                        746.8(a)(3), and
                                                        744.21(b) of the
                                                        EAR)
                         Russian Helicopters JSC,      All items subject    Policy of denial.  87 FR [INSERT FR
                          Bolshaya Pionerskaya, 1,      to the EAR except    See Sec.  Sec.     PAGE NUMBER], 3/
                          Moscow, 123610, Russia.       for food or          746.8(b) and       3/2022.
                                                        medicine             744.21(e).
                                                        designated as
                                                        EAR99. (See Sec.
                                                        Sec.
                                                        734.9(g),\3\
                                                        746.8(a)(3), and
                                                        744.21(b) of the
                                                        EAR)
                                                                * * * * * *

[[Page 12247]]

 
                         SP Kvant, a.k.a., the follow  All items subject    Policy of denial.  87 FR [INSERT FR
                          three aliases:                to the EAR except    See Sec.  Sec.     PAGE NUMBER], 3/
                         --Kvant LLC;                   for food or          746.8(b) and       3/2022.
                         --Limited Liability Company    medicine             744.21(e).
                          Joint Venture Quantum         designated as
                          Technologies; and             EAR99, or ECCN
                         --Joint Venture Quantum.       5A992.c and
                         D. 46, Etazh 6, pom. 600K,     5D992.c unless for
                          Shosse Varshavskoe, Moscow,   Russian
                          115230, Russia.               ``government end
                                                        users'' and
                                                        Russian state-
                                                        owned enterprises
                                                        (SoEs) to Russia.
                                                        (See Sec.  Sec.
                                                        734.9(g),\3\
                                                        746.8(a)(3), and
                                                        744.21(b) of the
                                                        EAR)
                                                                * * * * * *
                         Sukhoi Aviation JSC,          All items subject    Policy of denial.  87 FR [INSERT FR
                          Polikarpov Str., 23B,         to the EAR except    See Sec.  Sec.     PAGE NUMBER], 3/
                          Moscow, 125284, Russia.       for food or          746.8(b) and       3/2022.
                                                        medicine             744.21(e).
                                                        designated as
                                                        EAR99. (See Sec.
                                                        Sec.
                                                        734.9(g),\3\
                                                        746.8(a)(3), and
                                                        744.21(b) of the
                                                        EAR)
                         Sukhoi Civil Aircraft, 1      All items subject    Policy of denial.  87 FR [INSERT FR
                          Sovetskaya Street,            to the EAR except    See Sec.  Sec.     PAGE NUMBER], 3/
                          Komsomolsk-On-Amur 681018,    for food or          746.8(b) and       3/2022.
                          Russia; and 15 Tupoleva       medicine             744.21(e).
                          Street, OP JSC SCA,           designated as
                          Zukhovskiy 140180, Russia;    EAR99. (See Sec.
                          and 23b Bld. 2 Polikarpova    Sec.
                          St., Moscow 125824, Russia;   734.9(g),\3\
                          and                           746.8(a)(3), and
                         26, Bld. 5, Leninskaya         744.21(b) of the
                          Sloboda Street, Moscow,       EAR)
                          115280, Russia; and
                         Antonova Avenue 1, Ulianovsk
                          432072, Russia; and
                         Leningradskaya Street 80/4A,
                          Komsomolsk-On-Amur 681007,
                          Russia.
                                                                * * * * * *
                         Tactical Missiles             All items subject    Policy of denial.  87 FR [INSERT FR
                          Corporation JSC,              to the EAR except    See Sec.  Sec.     PAGE NUMBER], 3/
                          KorolevIlyicha Street, 7,     for food or          746.8(b) and       3/2022.
                          141080, Russia.               medicine             744.21(e).
                                                        designated as
                                                        EAR99. (See Sec.
                                                        Sec.
                                                        734.9(g),\3\
                                                        746.8(a)(3), and
                                                        744.21(b) of the
                                                        EAR)
                                                                * * * * * *
                         Tupolev JSC, Academician      All items subject    Policy of denial.  87 FR [INSERT FR
                          Tupolev Embankment 17,        to the EAR except    See Sec.  Sec.     PAGE NUMBER], 3/
                          Moscow, 105005, Russia.       for food or          746.8(b) and       3/2022.
                                                        medicine             744.21(e).
                                                        designated as
                                                        EAR99. (See Sec.
                                                        Sec.
                                                        734.9(g),\3\
                                                        746.8(a)(3), and
                                                        744.21(b) of the
                                                        EAR)
                         UEC-Saturn, 163 Lenin         All items subject    Policy of denial.  87 FR [INSERT FR
                          Avenue, Rybinsk 152903,       to the EAR except    See Sec.  Sec.     PAGE NUMBER], 3/
                          Yavoslavl Region, Russia.     for food or          746.8(b) and       3/2022.
                                                        medicine             744.21(e).
                                                        designated as
                                                        EAR99. (See Sec.
                                                        Sec.
                                                        734.9(g),\3\
                                                        746.8(a)(3), and
                                                        744.21(b) of the
                                                        EAR)
                                                                * * * * * *
                         United Aircraft Corporation,  All items subject    Policy of denial.  87 FR [INSERT FR
                          Bolshaya Pionerskaya Str.,    to the EAR except    See Sec.  Sec.     PAGE NUMBER], 3/
                          1, Moscow, 115054, Russia.    for food or          746.8(b) and       3/2022.
                                                        medicine             744.21(e).
                                                        designated as
                                                        EAR99. (See Sec.
                                                        Sec.
                                                        734.9(g),\3\
                                                        746.8(a)(3), and
                                                        744.21(b) of the
                                                        EAR)

[[Page 12248]]

 
                         United Engine Corporation,    All items subject    Policy of denial.  87 FR [INSERT FR
                          16, Budyonny Avenue,          to the EAR except    See Sec.  Sec.     PAGE NUMBER], 3/
                          Moscow, 105118 Russia.        for food or          746.8(b) and       3/2022.
                                                        medicine             744.21(e).
                                                        designated as
                                                        EAR99. (See Sec.
                                                        Sec.
                                                        734.9(g),\3\
                                                        746.8(a)(3), and
                                                        744.21(b) of the
                                                        EAR)
                         United Instrument             All items subject    Policy of denial.  87 FR [INSERT FR
                          Manufacturing Corporation,    to the EAR except    See Sec.  Sec.     PAGE NUMBER], 3/
                          Vereiskaya 29, str. 141,      for food or          746.8(b) and       3/2022.
                          Moscow, Russia.               medicine             744.21(e).
                                                        designated as
                                                        EAR99. (See Sec.
                                                        Sec.
                                                        734.9(g),\3\
                                                        746.8(a)(3), and
                                                        744.21(b) of the
                                                        EAR)
                                                                * * * * * *
 
----------------------------------------------------------------------------------------------------------------
                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------
 * * * * * * *
\3\ For this entity, ``items subject to the EAR'' includes foreign-produced items that are subject to the EAR
  under Sec.   734.9(g) of the EAR. See Sec.  Sec.   746.8 and 744.21 of the EAR for related license
  requirements, license review policy, and restrictions on license exceptions.

Supplement No. 7 to Part 744 [Amended]

0
19. Supplement No. 7 to part 744 is amended by removing RUSSIA and all 
the Russian entries.

PART 746--EMBARGOES AND OTHER SPECIAL CONTROLS

0
20. 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. 287c; Sec 1503, Pub. L. 108-11, 117 
Stat. 559; 22 U.S.C. 2151 note; 22 U.S.C. 6004; 22 U.S.C. 7201 et 
seq.; 22 U.S.C. 7210; E.O. 12854, 58 FR 36587, 3 CFR, 1993 Comp., p. 
614; E.O. 12918, 59 FR 28205, 3 CFR, 1994 Comp., p. 899; E.O. 13222, 
66 FR 44025, 3 CFR, 2001 Comp., p. 783; E.O. 13338, 69 FR 26751, 3 
CFR, 2004 Comp., p 168; Presidential Determination 2003-23, 68 FR 
26459, 3 CFR, 2004 Comp., p. 320; Presidential Determination 2007-7, 
72 FR 1899, 3 CFR, 2006 Comp., p. 325; Notice of May 6, 2021, 86 FR 
26793 (May 10, 2021).


0
21. Section 746.5 is amended by revising paragraph (a)(1) to read as 
follows:


Sec.  746.5   Russian industry sector sanctions.

    (a) * * *
    (1) General prohibition. (i) A license is required to export, 
reexport or transfer (in-country) any item subject to the Export 
Administration Regulations (EAR) listed in supplement No. 2 to this 
part and items specified in ECCNs 0A998, 1C992, 3A229, 3A231, 3A232, 
6A991, 8A992, and 8D999 when you know that the item will be used 
directly or indirectly in exploration for, or production of, oil or gas 
in Russian deepwater (greater than 500 feet) or Arctic offshore 
locations or shale formations in Russia, or are unable to determine 
whether the item will be used in such projects. Such items include, but 
are not limited to, drilling rigs, parts for horizontal drilling, 
drilling and completion equipment, subsea processing equipment, Arctic-
capable marine equipment, wireline and down hole motors and equipment, 
drill pipe and casing, software for hydraulic fracturing, high pressure 
pumps, seismic acquisition equipment, remotely operated vehicles, 
compressors, expanders, valves, and risers.
    (ii) You should be aware that other provisions of the EAR, 
including parts 742 and 744 and Sec.  746.8, also apply to exports and 
reexports to Russia. License applications submitted to BIS under this 
section may include the phrase ``section 746.5'' or in Block 9 (Special 
Purpose) as described in Supplement No. 1 to part 748 of the EAR.
* * * * *

0
22. Section 746.6 is revised to read as follows:


Sec.  746.6  Crimea Region of Ukraine and Covered Regions of Ukraine.

    (a) License requirements--(1) General prohibition--Crimea. A 
license is required to export or reexport to or transfer within the 
Crimea region of Ukraine any item subject to the EAR other than food 
and medicine designated as EAR99, or `software necessary to enable the 
exchange of personal communications over the internet'.
    (2) General prohibition--Donetsk People's Republic (DNR) and 
Luhansk People's Republic (LNR). A license is required to export or 
reexport to, or transfer within, the so-called DNR or LNR regions of 
Ukraine any item subject to the EAR other than: Food and medicine 
designated as EAR99, or `software necessary to enable the exchange of 
personal communications over the internet'.
    (3) Deemed exports or reexports. For purposes of applying the EAR 
deemed export and deemed reexport requirements pursuant to the general 
prohibitions described in this paragraph (a)(3), the nationality of the 
foreign national (as determined by accepted methods, such as looking to 
the passport or other nationality document(s) recognized by the United 
States Government) is what is used for purposes of determining whether 
a license is required for a deemed export or deemed reexport.
    (b) License review policy. Applications will be reviewed with a 
policy of denial, except for applications for transactions authorized 
under OFAC Ukraine-Related General Licenses, which will be reviewed on 
a case-by-case basis.
    (c) License exceptions. You may export, reexport or transfer (in-
country) without a license if your transaction meets all the applicable 
terms and conditions of any of the license exception paragraphs 
specified in this paragraph (c). To determine scope and eligibility 
requirements, you will need to refer to the sections or specific 
paragraphs of part 740 (License Exceptions) of the EAR, as well as 
Sec.  740.2 license exception restrictions. Read each license exception 
carefully, as the provisions available for countries subject to 
sanctions are generally narrow.
    (1) TMP for items for use by the news media as set forth in Sec.  
740.9(a)(9) of the EAR.

[[Page 12249]]

    (2) GOV for items for personal or official use by personnel and 
agencies of the U.S. Government, the International Atomic Energy Agency 
(IAEA), or the European Atomic Energy Community (Euratom) as set forth 
in Sec.  740.11(a) and (b)(2) of the EAR.
    (3) GFT for gift parcels and humanitarian donations as set forth in 
Sec.  740.12 of the EAR.
    (4) TSU for operation technology and software for lawfully exported 
commodities as set forth in Sec.  740.13(a) and sales technology as set 
forth in Sec.  740.13 (b) of the EAR.
    (5) BAG for exports of items by individuals leaving the United 
States as personal baggage as set forth in Sec.  740.14(a) through (d) 
of the EAR.
    (6) AVS for civil aircraft and vessels as set forth in Sec.  
740.15(a)(4) and (d) of the EAR.
    (d) Definitions. For purpose of this section, use the following 
definitions of terms:
    (1) `Crimea region of Ukraine' includes the land territory in that 
region as well as any maritime area over which sovereignty, sovereign 
rights, or jurisdiction is claimed based on occupation of that land 
territory.
    (2) `Donetsk People's Republic (DNR) region' or `Luhansk People's 
Republic (LNR) region' include the land territory in those regions as 
well as any maritime area over which sovereignty, sovereign rights, or 
jurisdiction is claimed based on purported sovereignty over that land 
territory or area.
    (3) `Software necessary to enable the exchange of personal 
communications over the internet' includes only software (such as 
software for instant messaging, chat and email, social networking, 
sharing of photos and movies, Web browsing, and blogging), designated 
EAR99 or classified as mass market software under Export Control 
Classification Number (ECCN) 5D992.c of the EAR, provided that such 
software is widely available to the public at no cost to the user.

0
23. Section 746.8 is added to read as follows:


Sec.  746.8   Sanctions against Russia.

    (a) License requirements--(1) Items classified in any ECCN in CCL 
Categories 3 to 9. In addition to license requirements specified on the 
Commerce Control List (CCL) in Supplement No. 1 to part 774 of the EAR 
and in other provisions of the EAR, including part 744 and Sec.  746.5, 
a license is required, excluding deemed exports and deemed reexports, 
to export, reexport, or transfer (in-country) to or within Russia any 
item subject to the EAR and specified in any Export Control 
Classification Number (ECCN) in Categories 3, 4, 5, 6, 7, 8, or 9 of 
the CCL.
    (2) Foreign-produced ``direct product'' items subject to the EAR 
under Russia foreign ``direct product'' (FDP) rule. Except as described 
in paragraph (a)(4) of this section, a license is required to reexport, 
export from abroad, or transfer (in-country) to any destination any 
foreign-produced item subject to the EAR under the Russia FDP Rule 
described in Sec.  734.9(f) of the EAR.
    (3) Foreign-produced ``direct product'' items subject to the EAR 
under Russia-Military End User FDP rule. Except as described in 
paragraph (a)(4) of this section, a license is required to reexport, 
export from abroad, or transfer (in-country) to or within any 
destination any foreign-produced item subject to the EAR under Sec.  
734.9(g) of the EAR other than food or medicine designated as EAR99, or 
ECCN 5A992.c and 5D992.c unless for Russian ``government end users'' 
and Russian state-owned enterprises (SoEs).
    (4) Exclusion from license requirements under paragraphs (a)(2) and 
(3) of this section. The countries listed in supplement No. 3 to this 
part have committed to implementing substantially similar export 
controls on Russia under their domestic laws. Therefore, exports or 
reexports from the countries described in this supplement No. 3 to this 
part or transfers (in-country) within the countries described in this 
supplement are not subject to the license requirements described in 
paragraphs (a)(2) and (3) of this section, unless a limit to the 
exclusion is described in the Scope column in supplement No. 3 to this 
part.
    (5) Exclusion from scope of U.S.-origin controlled content under 
paragraph (a)(1) of this section. For purposes of determining U.S.-
origin controlled content under supplement No. 2 to part 734 of the 
EAR, paragraph (a)(1) of this section when making a de minimis 
calculation for reexports and exports from abroad to Russia, the 
license requirements in paragraph (a)(1) of this section are not used 
to determine controlled U.S.-origin content in a foreign-made item, 
provided the criteria in paragraphs (a)(5)(i) and (ii) of this section 
are met:
    (i) The U.S.-origin content is described in an Anti-Terrorism (AT)-
only ECCN and is not otherwise excluded from the applicable Scope 
column in supplement No. 3 to this part. For purposes of this paragraph 
(a)(5), AT-only items means any ECCN that only specifies either only AT 
in the reason for control paragraph of the ECCN or is classified under 
ECCN 9A991; and
    (ii) The foreign made item will be reexported or exported from 
abroad from a country described in supplement No. 3 to this part.

    Note 1 to paragraph (a). A `military end user' for purposes of 
paragraph (a)(3) and (4) of this section is any entity listed on the 
Entity List in supplement No. 4 to part 744 of the EAR under Russia 
with a footnote 3 designation.

    (b) Licensing policy. With limited exceptions, applications for the 
export, reexport or transfer (in-country) of any item that requires a 
license for export or reexport to or transfer pursuant to the 
requirements of this section will be reviewed with a policy of denial. 
The following types of license applications for licenses required under 
paragraphs (a)(1) and (2) of this section will be reviewed on a case-
by-case basis to determine whether the transaction in question would 
benefit the Russian government or defense sector: Applications related 
to safety of flight; applications related to maritime safety; 
applications to meet humanitarian needs; applications that support 
government space cooperation; applications for items destined to 
wholly-owned U.S. subsidiaries, foreign subsidiaries of U.S. companies 
that are joint ventures with other U.S. companies, joint ventures of 
U.S. companies with companies headquartered in countries from Country 
Group A:5 and A:6 in supplement no. 1 to part 740 of the EAR countries, 
the wholly-owned subsidiaries of companies headquartered in countries 
from Country Group A:5 and A:6 in supplement no. 1 to part 740, joint 
ventures of companies headquartered in Country Groups A:5 and A:6 with 
other companies headquartered in Country Groups A:5 and A:6; 
applications for companies headquartered in Country Groups A:5 and A:6 
to support civil telecommunications infrastructure; and government-to-
government activities. License applications required under paragraph 
(a)(3) of this section will be reviewed under a policy of denial in all 
cases.
    (c) License exceptions. No license exceptions may overcome the 
license requirements in paragraph (a)(3) of this section, 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. No license 
exceptions may overcome the license requirements in paragraphs (a)(1) 
and (2) of this section except the following license

[[Page 12250]]

exceptions identified in paragraphs (c)(1) through (7) of this section.
    (1) License Exception TMP for items for use by the news media as 
set forth in Sec.  740.9(a)(9) of the EAR.
    (2) License Exception GOV (Sec.  740.11(b) of the EAR).
    (3) License Exception TSU for software updates for civil end-users 
that are wholly-owned U.S. subsidiaries, foreign subsidiaries of U.S. 
companies that are joint ventures with other U.S. and companies, joint 
ventures of U.S. companies with companies headquartered in countries 
from Country Group A:5 and A:6 in supplement no. 1 to part 740 of the 
EAR countries, the wholly-owned subsidiaries of companies headquartered 
in countries from Country Group A:5 and A:6 in supplement no. 1 to part 
740, or joint ventures of companies headquartered in Country Group A:5 
and A:6 with other companies headquartered in Country Groups A:5 and 
A:6 (Sec.  740.13(c) of the EAR).
    (4) License Exception BAG, excluding firearms and ammunition (Sec.  
740.14, excluding paragraph (e), of the EAR).
    (5) License Exception AVS (Sec.  740.15(a) and (b) of the EAR).
    (6) License Exception ENC excluding Russian ``government end 
users'' and Russian state-owned enterprises (SoEs) (Sec.  740.17 of the 
EAR).
    (7) License Exception CCD (Sec.  740.19 of the EAR).

0
24. Supplement No. 2 to part 746 is amended by revising the 
introductory text of the supplement to read as follows:

Supplement No. 2 to Part 746--Russian Industry Sector Sanction List

    The source for the Schedule B numbers and descriptions in this 
list comes from the Bureau of the Census's Schedule B concordance of 
exports 2022. Census's Schedule B List 2022 can be found at 
www.census.gov/foreign-trade/aes/documentlibrary/#concordance. The 
Introduction Chapter of the Schedule B provides important 
information about classifying products and interpretations of the 
Schedule B, e.g., NESOI means Not Elsewhere Specified or Included. 
In addition, important information about products within a 
particular chapter may be found at the beginning of chapters.
* * * * *

0
25. Add Supplement No. 3 to part 746 to read as follows:

Supplement No. 3 to Part 746--Countries Excluded From Certain License 
Requirements of Sec.  746.8

    Countries listed in this supplement No. 3 have committed to 
implementing substantially similar export controls on Russia under 
their domestic laws and are consequently excluded from certain 
requirements in Sec.  746.8 of the EAR, as described in Sec.  
746.8(a)(4) and (5). The Scope column of the following table 
identifies whether the country receives a full or partial exclusion. 
For countries with partial exclusions, the items for which such 
exclusions apply are listed in the Scope column.

------------------------------------------------------------------------
                                                       Federal Register
             Country                     Scope             citation
------------------------------------------------------------------------
Australia.......................  Full..............  87 FR [INSERT FR
                                                       PAGE NUMBER], 3/3/
                                                       2022.
Austria.........................  Full..............  87 FR [INSERT FR
                                                       PAGE NUMBER], 3/3/
                                                       2022.
Belgium.........................  Full..............  87 FR [INSERT FR
                                                       PAGE NUMBER], 3/3/
                                                       2022.
Bulgaria........................  Full..............  87 FR [INSERT FR
                                                       PAGE NUMBER], 3/3/
                                                       2022.
Canada..........................  Full..............  87 FR [INSERT FR
                                                       PAGE NUMBER], 3/3/
                                                       2022.
Croatia.........................  Full..............  87 FR [INSERT FR
                                                       PAGE NUMBER], 3/3/
                                                       2022.
Cyprus..........................  Full..............  87 FR [INSERT FR
                                                       PAGE NUMBER], 3/3/
                                                       2022.
Czech Republic..................  Full..............  87 FR [INSERT FR
                                                       PAGE NUMBER], 3/3/
                                                       2022.
Denmark.........................  Full..............  87 FR [INSERT FR
                                                       PAGE NUMBER], 3/3/
                                                       2022.
Estonia.........................  Full..............  87 FR [INSERT FR
                                                       PAGE NUMBER], 3/3/
                                                       2022.
Finland.........................  Full..............  87 FR [INSERT FR
                                                       PAGE NUMBER], 3/3/
                                                       2022.
France..........................  Full..............  87 FR [INSERT FR
                                                       PAGE NUMBER], 3/3/
                                                       2022.
Germany.........................  Full..............  87 FR [INSERT FR
                                                       PAGE NUMBER], 3/3/
                                                       2022.
Greece..........................  Full..............  87 FR [INSERT FR
                                                       PAGE NUMBER], 3/3/
                                                       2022.
Hungary.........................  Full..............  87 FR [INSERT FR
                                                       PAGE NUMBER], 3/3/
                                                       2022.
Ireland.........................  Full..............  87 FR [INSERT FR
                                                       PAGE NUMBER], 3/3/
                                                       2022.
Italy...........................  Full..............  87 FR [INSERT FR
                                                       PAGE NUMBER], 3/3/
                                                       2022.
Japan...........................  Full..............  87 FR [INSERT FR
                                                       PAGE NUMBER], 3/3/
                                                       2022.
Latvia..........................  Full..............  87 FR [INSERT FR
                                                       PAGE NUMBER], 3/3/
                                                       2022.
Lithuania.......................  Full..............  87 FR [INSERT FR
                                                       PAGE NUMBER], 3/3/
                                                       2022.
Luxembourg......................  Full..............  87 FR [INSERT FR
                                                       PAGE NUMBER], 3/3/
                                                       2022.
Malta...........................  Full..............  87 FR [INSERT FR
                                                       PAGE NUMBER], 3/3/
                                                       2022.
Netherlands.....................  Full..............  87 FR [INSERT FR
                                                       PAGE NUMBER], 3/3/
                                                       2022.
New Zealand.....................  Full..............  87 FR [INSERT FR
                                                       PAGE NUMBER], 3/3/
                                                       2022.
Poland..........................  Full..............  87 FR [INSERT FR
                                                       PAGE NUMBER], 3/3/
                                                       2022.
Portugal........................  Full..............  87 FR [INSERT FR
                                                       PAGE NUMBER], 3/3/
                                                       2022.
Romania.........................  Full..............  87 FR [INSERT FR
                                                       PAGE NUMBER], 3/3/
                                                       2022.
Slovakia........................  Full..............  87 FR [INSERT FR
                                                       PAGE NUMBER], 3/3/
                                                       2022.
Slovenia........................  Full..............  87 FR [INSERT FR
                                                       PAGE NUMBER], 3/3/
                                                       2022.
Spain...........................  Full..............  87 FR [INSERT FR
                                                       PAGE NUMBER], 3/3/
                                                       2022.
Sweden..........................  Full..............  87 FR [INSERT FR
                                                       PAGE NUMBER], 3/3/
                                                       2022.
United Kingdom..................  Full..............  87 FR [INSERT FR
                                                       PAGE NUMBER], 3/3/
                                                       2022.
------------------------------------------------------------------------

PART 772--[AMENDED]

0
26. The authority citation for 15 CFR part 772 continues 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.; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 
783.

0
27. Section 772.1 is amended by revising the definition of ``Food'' to 
read as follows:


Sec.  772.1  Definitions of terms as used in the Export Administration 
Regulations (EAR).

* * * * *
    Food. Specific to exports and reexports to North Korea, Syria, 
Crimea region of Ukraine, and the so-called Donetsk People's Republic 
and Luhansk People's Republic regions of Ukraine, food means items that 
are consumed by and provide nutrition to humans and animals, and seeds, 
with the exception

[[Page 12251]]

of castor bean seeds, that germinate into items that will be consumed 
by and provide nutrition to humans and animals. (Food does not include 
alcoholic beverages.)
* * * * *

Thea D. Rozman Kendler,
Assistant Secretary for Export Administration.
[FR Doc. 2022-04300 Filed 2-24-22; 3:10 pm]
BILLING CODE 3510-33-P