The Bass, Berry & Sims international trade team is actively monitoring the situation in Russia and Ukraine and providing real-time advice to clients on managing the situation. This post summarizes new U.S. sanctions and export restrictions as of April 1. This post supplements our previous summaries, which are available by following the links at the bottom of this page.

Commerce Department Updates List of Tainted U.S.-Origin Aircraft

On March 30, the U.S. Commerce Department, Bureau of Industry & Security (BIS) issued a press release to update the restrictions and prohibitions it announced on March 18 pertaining to U.S.-origin aircraft operated in violation of the Export Administration Regulations (EAR). Please see our blog post here for more details on that March 18 notice.

As was the case with the aircraft listed by BIS on March 18, the 73 aircraft identified on March 30 are subject to extensive restrictions. Thus, without authorization from BIS, no person, regardless of location or nationality, is permitted to engage in service, maintenance, repair, operation, or virtually any other transaction involving one of these designated aircraft.

Note that BIS announced that 12 planes were removed from the list announced on March 18. BIS explained that:

BIS’s March 18 aircraft listing led to several companies submitting voluntary disclosures regarding concerns over possible EAR violations and requesting permission to engage in activities that may otherwise be prohibited. BIS granted these authorizations in order to allow these aircraft to leave Russia, thereby preventing the Russian government from maintaining operational control over the aircraft.

This statement lays out what BIS views as the process for potentially obtaining de-listing of an aircraft. Namely, there is a two-step process involving:

  1. A voluntary disclosure to BIS of the violation, and
  2. A request for authorization, which appears to be a reference to a request for a waiver under section 764.5(f) of the EAR.

We expect BIS to continue to update the list of designated aircraft, including removals of aircraft from the list as needed, periodically. BIS also has emphasized that other aircraft owned, chartered, or operated by a Russian party are also subject to the restrictions under General Prohibition 10, even if the aircraft is not on the list, if the aircraft was flown into Russia after March 2.

If you have any questions or need assistance related to this evolving situation or other international trade matters, please contact the authors. To read our previous coverage concerning the Russia-Ukraine situation, click the links below:

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Photo of Mi-Yong Kim Mi-Yong Kim

Mi-Yong Kim has nearly 25 years of experience related to export controls and national security. Based on her extensive government service, she is uniquely well equipped to provide advice to help clients navigate the complex regulations related to export controls and national security…

Mi-Yong Kim has nearly 25 years of experience related to export controls and national security. Based on her extensive government service, she is uniquely well equipped to provide advice to help clients navigate the complex regulations related to export controls and national security, including matters related to compliance with the Export Administration Regulations (EAR); the International Traffic in Arms Regulations (ITAR); the Committee on Foreign Investment in the United States (CFIUS); and foreign ownership, control, or influence (FOCI) mitigation by the Defense Security Service. Mi-Yong is also an Adjunct Professor at the National Chengchi University (NCCU) in Taipei, Taiwan. She teaches a graduate-level class on export controls and related topics at the College of International Affairs of NCCU.

Photo of Thad McBride Thad McBride

Thad McBride advises public and private companies on the legal considerations essential to successful business operations in a global marketplace. He focuses his practice on counseling clients on compliance with U.S. export regulations (ITAR and EAR), economic sanctions and embargoes, import controls (CBP)…

Thad McBride advises public and private companies on the legal considerations essential to successful business operations in a global marketplace. He focuses his practice on counseling clients on compliance with U.S. export regulations (ITAR and EAR), economic sanctions and embargoes, import controls (CBP), and the Foreign Corrupt Practices Act (FCPA). He also advises clients on anti-boycott controls, and assists companies with matters involving the Committee on Foreign Investment in the United States (CFIUS). Thad supports international companies across a range of industries, including aviation, automotive, defense, energy, financial services, manufacturing, medical devices, oilfield services, professional services, research and development, retail, and technology. Beyond advising on day-to-day compliance matters, Thad regularly assists clients in investigations and enforcement actions brought by government agencies, including the U.S. Department of Justice (DOJ), the U.S. Treasury Department Office of Foreign Assets Control (OFAC), the U.S. State Department Directorate of Defense Trade Controls (DDTC), Customs and Border Protection (CBP), the U.S. Commerce Department Bureau of Industry & Security (BIS), and the Securities & Exchange Commission.

Photo of Sylvia Yi Sylvia Yi

Sylvia Yi represents businesses across a broad range of sectors as they move through the contracting process with federal, state and local governments, and when they engage in international transactions. Sylvia counsels public and private companies on day to day compliance challenges, and…

Sylvia Yi represents businesses across a broad range of sectors as they move through the contracting process with federal, state and local governments, and when they engage in international transactions. Sylvia counsels public and private companies on day to day compliance challenges, and supports clients in responding to criminal and government investigations. She is a regular contributor to the firm’s Government Contracts & International Trade Blog, where she provides insight on the demanding and ever-changing regulatory environment.