Government Contracts EAR Rule Changes Country Group Designations for Russia, Yemen
Wednesday, March 18, 2020

EAR Rule Changes Country Group Designations for Russia, Yemen

By Government Contracts Editorial Staff

The Bureau of Industry and Security has amended the Export Administration Regulations to revise the Country Group designations for the Russian Federation and Yemen. The Commerce Control List (Supplement No. 1 to EAR Part 774) and the Country Chart (Supplement No. 1 to EAR Part 738) allow an exporter to determine whether a license is required for the export or reexport of an item on the CCL to the destinations on the Country Chart, unless otherwise specified in the particular Export Control Classification Numbers entry on the CCL. The Country Groups lists (A, B, D, and E) (Supplement No. 1 to EAR Part 740) set out countries with respect to relative risk and record of like-minded export controls as a basis for the availability of exceptions from Supplement No. 1 to EAR Part 740 license requirements, provided the conditions for the use of the exception are met. Country Groups may also be used when describing license review policy.

Stricter Licensing Requirements. The rule amends the Country Chart, the Country Groups, and EAR 742.2, EAR 742.3, and EAR 742.5 to remove Russia from more favorable treatment under Country Groups A:2 and A:4, and add it to Country Groups D:2 and D:4 based on nuclear and missile technology proliferation concerns. The rule also amends the licensing policy for related items to reflect a presumption of denial consistent with the Country Group changes. Further, the rule removes Yemen from more favorable treatment under Country Group B and adds it to Country Group D:1 to reflect national security concerns. As a result of these changes, certain license exceptions are no longer available for Russia and Yemen, and licenses are now required for those destinations in connection with exports, reexports, and transfers (in-country) of certain controlled items. Certain transactions may be subject to more stringent licensing review policies or additional prohibitions as outlined in other parts of the EAR. BIS is currently undertaking a comprehensive review of all Country Groups to ensure that they appropriately reflect current U.S. national security and foreign policy, including nonproliferation interests. The effective date of the rule is February 24, 2020. For the text of the rule, see ¶72,750.469.

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