U.S. final rule imposing new export control measures on Iran
Addresses the use of Iranian unmanned aerial vehicles (UAVs) by Russia in its war against Ukraine
Addresses the use of Iranian unmanned aerial vehicles (UAVs) by Russia in its war against
The Bureau of Industry and Security (BIS) of the U.S. Commerce Department today released for publication in the Federal Register a final rule amending the Export Administrations Regulations (EAR) to impose new export control measures on Iran.
The final rule [PDF 293 KB]—effective today, February 24, 2023—addresses the use of Iranian unmanned aerial vehicles (UAVs) by Russia in its ongoing war against Ukraine.
The amendments to the EAR target Iran’s supply of UAVs to Russia and build on prior EAR amendments, including the addition of Iranian entities to the EAR entity list as Russian “military end users.” Specifically, these controls impose license requirements for a subset of EAR99 items that are destined to Iran, regardless of whether a U.S. person is involved in the transaction.
The final rule also:
- Identifies certain foreign-produced items as subject to the EAR by adding a new foreign direct product (FDP) rule specific to Iran that applies to items in certain categories of the Commerce Control List (CCL) and the EAR99 items identified in this new supplement
- Revises the EAR’s existing Russia/Belarus FDP rule to reference the EAR99 items
- Impose license requirements on additional exports from abroad and reexports to Iran, Russia, and Belarus
For more information, contact a professional with KPMG Trade & Customs services:
John L. McLoughlin
Luis (Lou) Abad
|Jenna Leigh Glass
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