Expect More Russia Entity List Actions, BIS Official Says
Companies should expect the Commerce Department to add more entities to the Entity List for aiding Russia amid its war in Ukraine, said Thea Kendler, the agency’s assistant secretary for export administration. Commerce has so far added more than 100 entities to the list for supporting the Russian and Belarusian militaries (see 2204040006). Kendler, speaking during a May 12 Materials and Equipment Technical Advisory Committee meeting, said the agency is looking at entities in both Russia and Belarus "that may be contributing to the military industrial complex."
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Kendler also said the agency may impose additional controls on items classified as EAR99 -- goods listed in the Export Administration Regulations that generally don’t require export licenses. The Bureau of Industry and Security earlier this week expanded export controls to cover a broader range of commercial and industrial items, including items that previously didn’t require a license for most exports to Russia (see 2205090042).
“The situation on the ground in Ukraine is dire, and we want to do everything we can to protect the Ukrainian people. So hopefully we will find ways to do that effectively and efficiently," Kendler said. “I certainly can't preclude adding other EAR99 items to our controls as we go forward."
Kendler also briefly addressed licensing delays. One industry official during the meeting told Kendler that their company has lost “a significant amount of business” because their license applications have been “sitting for quite some time” with BIS. The person said foreign governments may be processing applications faster, which has allowed competitors to secure business deals before some American companies. The agency is specifically facing a backlog of license applications under its military end-user rule (see 2205110042).
Although BIS has been busy crafting and implementing Russia-related export controls, “that doesn't mean that we can't also do our regular functions, and that we shouldn't be able to do it in a timely basis in a way that doesn't disadvantage your company,” Kendler said. She asked the person to send her a letter with information about the pending licenses. “Timely processing and issuance of licenses” is a “priority for export administration,” Kendler said.