US Sectoral Sanctions
US Sectoral Sanctions - BIS (cont'd)
Export / Reexport Restrictions (cont'd)
What is "subject to the EAR" (including all EAR99 items)?
-
All items in moving in transit through the US
-
All US-origin items, wherever located
And
•
foreign-made goods that incorporate controlled
US-origin goods
•
foreign-made software that is comingled with
controlled US-origin software
•
foreign-made goods that are "bundled" with
controlled US-origin software
•
foreign-made technology that is comingled with
controlled US-origin technology
in quantities exceeding the de minimis levels for applicable items (see 15 CFR §734)
currently 25% for Russia
but there are also intricate rules re what items "count" here, beyond encryption technology
Certain foreign-made direct products of US-origin technology or software
Certain commodities, produced by any plant or major component thereof outside the US,
that are direct product of US-origin technology or software
Note: includes even in-country transfers between entities (e.g., within Russia)
And BIS also has discretion to apply these sanctions more broadly (i.e., without direct
deepwater, Arctic offshore or shale status), for any Russian users, if there is perceived
unacceptable risk of diversion etc. (per 15 CFR §746.5(a)(2) etc. - see slide 21)
Morgan Lewis
30
30View entire presentation