DDTC Issues Guidance, FAQs for Increased Russia Export Restrictions
The State Department’s Directorate of Defense Trade Controls issued new guidance and frequently asked questions for the increased export controls against Russia announced in March (see 2103170022). The April 12 guidance provides a summary of the changes to the International Traffic in Arms Regulations and answers common questions about impacts to export licenses, license reviews and which activities are caught by the restrictions.
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DDTC stressed it will likely deny license applications to export defense items or technical data to Russia, unless the items fall into one of the agency’s carve-outs. The policy of denial also applies to license applications “in furtherance” of previously approved agreements and to amendments to previously approved agreements. The agency said it is assessing all applications involving Russia “to determine that country’s role in the transaction,” and if the license application qualifies for a carve-out, it will be subject to a case-by-case review.
DDTC said its policy of denial applies to licenses even if they “do not contain Russia” but “where the overarching Technical Assistance Agreement” does contain Russia. License applications related to temporary imports, however, will continue to be assessed case by case, and DDTC said existing license applications are not “automatically void” as a result of the restrictions. “DDTC will contact you in the event that your existing license or other approval is terminated, suspended, or otherwise revoked,” the agency said, but added that “no new export licenses or other approvals that identify Russia and do not satisfy one of the carve-outs will be issued.”
One of the exceptions includes a waiver for exports that support “commercial space launch activities.” Although the waiver is valid until Sept. 1, DDTC said companies should submit license applications that qualify for the waiver “far enough in advance to enable DDTC to complete its case-by-case review of the application” before Sept. 1. It said average license processing times are averaging 35 to 45 days, but application reviews for commercial space-related exports to Russia usually take longer.
DDTC added that NASA won’t determine whether an export qualifies for the space cooperation exception, and all questions about the exception should be directed to DDTC. It said exporters should be careful about shipping goods to the Baikonur Cosmodrome spaceport, which is leased by the Kazakh government to Russia until 2050. “Applicants should consider whether it is possible to conduct exports to Baikonur without exporting any defense articles, including technical data, to Russian persons,” DDTC said.
DDTC said the restrictions don’t “have an expiration date.” Law firms said the controls could have significant implications for exporters doing business in Russia, including potential impacts on disclosure and reporting requirements (see 2103230008).