US Sectoral Sanctions

What's Newest (cont'd) BIS (Commerce Dep't) - Feb. 2020 final rule tightening some Country Group designations - affecting some exports and reexports to Russia (based on missile, nuclear, and chemical & biological weapons proliferation concerns) April 2020 publication of two final rules (effective 29 June 2020) and one proposed rule (also now issued as final rule) targeting national-security-controlled exports and re-exports to Russia, China and Venezuela, as follows elimination of Civil End-Users ("CIV") license exception the CIV had allowed exports of items controlled for national security reasons to a few countries including Russia, if for civilian end use, per simple confirmation by internal due diligence this benefitted US companies in some high-tech sectors such as semiconductor, sensors, telecom, aircraft, other advanced manufacture but US exporters and enforcement officials have been finding it increasingly difficult to distinguish between military and commercial sectors in destination countries including Russia now exports previously authorized by the CIV exception will require a specific license from BIS, regardless of end use/user (unless another license exception applies) - this presumably affects the civil-use exception recognized under the two rounds of CBW Act sanctions (see slides 64-68) thus US companies may need longer lead time for such sales (and need to evaluate related technology transfer arrangements) Morgan Lewis 12

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