View all text of Part 746 [§ 746.1 - § 746.10]
§ 746.10 - 'Luxury goods' sanctions against Russia and Belarus and Russian and Belarusian oligarchs and malign actors.
(a) License requirements. For purposes of paragraph (a)(1) of this section, a license is not required for any item that is listed in supplement no. 5 to this part that is also classified in an Export Control Classification Number (ECCN) on the Commerce Control List (CCL) in supplement no. 1 to part 774 of the EAR. See § 746.8 for license requirements, license exceptions, and license review policies for exports, reexports, and transfers to or within Russia or Belarus for items classified in ECCNs. (1) 'Luxury goods' license requirements for Russia and Belarus. In addition to the license requirements specified on the Commerce Control List (CCL) in supplement no. 1 to part 774 of the EAR and in other provisions of the EAR, including part 744 and §§ 746.5 and 746.8, a license is required to export, reexport, or transfer (in-country) to or within Russia or Belarus any 'luxury good' subject to the EAR, as identified in supplement no. 5 to this part.
(2) Russian and Belarusian oligarch and malign actors. The license requirements under this section for persons designated on OFAC's SDN List with the identifier [BELARUS], [BELARUS-EO14038], [RUSSIA-E.O. 14024], [UKRAINE-EO13660], [UKRAINE-EO13661], [UKRAINE-EO13662], or [UKRAINE-EO13685] were removed from this section on March 21, 2024, because a broader license requirement for all items subject to the EAR is required under § 744.8 as of March 21, 2024, which includes all 'luxury goods' under supplement no. 5 to part 746 and any other item subject to the EAR. See § 744.8 of the EAR for license requirements for persons designated on OFAC's SDN List with the identifier [BELARUS], [BELARUS-EO14038], [RUSSIA-E.O. 14024], [UKRAINE-EO13660], [UKRAINE-EO13661], [UKRAINE-EO13662], or [UKRAINE-EO13685]
(3) Exclusion from scope of U.S.-origin controlled content under paragraph (a)(1) of this section. For purposes of determining U.S.-origin controlled content under supplement no. 2 to part 734 of the EAR when making a de minimis calculation for reexports and exports from abroad to Russia or Belarus, the license requirements in paragraph (a)(1) of this section are not used to determine controlled U.S.-origin content in a foreign-made item, provided the criteria in paragraphs (a)(3)(i) and (ii) of this section are met:
(i) The U.S.-origin content is described in supplement no. 5 to this part and is not otherwise excluded from the applicable Scope column in supplement no. 3 to this part; and
(ii) The foreign made item will be reexported or exported from abroad from a country described in supplement no. 3 to this part.
Note to paragraph (For purposes of paragraphs (a)(1) and (2) of this section, a 'luxury good' means any item that is identified in supplement no. 5 to this part.
(b) Licensing policy—(1) Presumption of denial. Applications for the export, reexport, or transfer (in-country) of any item that requires a license for pursuant to the requirements of this section will be reviewed with a policy of denial, except as specified in paragraph (b)(2) of this section.
(2) Case-by-case. The following types of license applications will be reviewed on a case-by-case basis to determine whether the transaction in question would benefit the Russian or Belarusian Government or defense sector:
(i) Applications related to safety of flight;
(ii) Applications involving items to meet humanitarian needs. The case-by-case license application review policy for items to meet humanitarian needs is included to address certain `luxury goods' items that may be used in medical devices or situations in which a case-by-case analysis is needed to determine whether a license application should be approved to meet humanitarian needs while also taking into account the applicable broader U.S. national security and foreign policy concerns; and
(iii) Applications for the disposition of items by companies not headquartered in Country Group D:1, D:5, E:1 or E:2 in supplement no. 1 to part 740 of the EAR that are curtailing or closing all operations in Russia or Belarus; and replacement licenses for exports and reexports to and transfers within Russia and Belarus to add items described in Harmonized Tariff Schedule (HTS)-6 Codes that were added to the EAR after the effective validation date of the BIS license. See also § 750.7(c)(1)(xi) of the EAR for the divesture of items within Russia or Belarus or the transfer of items within Russia or Belarus for the purpose of reexporting from Russia or Belarus. For purposes of § 750.7(c)(1)(xi), divesture means the action or process of selling off subsidiary business interests or investments involving items subject to the EAR.
(c) License exceptions. No license exceptions may overcome the license requirements in paragraph (a)(1) of this section except the license exceptions identified in paragraphs (c)(1) through (3), (c)(7) and (8) of this section.
(1) License Exception TMP for items for use by the news media as set forth in § 740.9(a)(9) of the EAR.
(2) License Exception GOV (§ 740.11(b) of the EAR).
(3) License Exception TSU for software updates for civil end-users that are wholly-owned U.S. subsidiaries, branches, or sales offices, foreign subsidiaries, branches, or sales offices of U.S. companies that are joint ventures with other U.S. and companies, joint ventures of U.S. companies with companies headquartered in countries from Country Group A:5 and A:6 in supplement no. 1 to part 740 of the EAR countries, the wholly-owned subsidiaries, branches, or sales offices of companies headquartered in countries from Country Group A:5 and A:6 in supplement no. 1 to part 740, or joint ventures of companies headquartered in Country Group A:5 and A:6 with other companies headquartered in Country Groups A:5 and A:6 (§ 740.13(c) of the EAR).
(4) License Exception BAG, excluding firearms and ammunition (§ 740.14, excluding paragraph (e), of the EAR).
(5) License Exception AVS, excluding any aircraft registered in, owned or controlled by, or under charter or lease by Russia or Belarus or a national of Russia or Belarus (§ 740.15(a) and (b) of the EAR).
(6) License Exception ENC for civil end-users that are wholly-owned U.S. subsidiaries, branches, or sales offices, foreign subsidiaries, branches, or sales offices of U.S. companies that are joint ventures with other U.S. companies, joint ventures of U.S. companies with companies headquartered in countries from Country Group A:5 and A:6 in supplement no. 1 to part 740 of the EAR countries, the wholly-owned subsidiaries, branches, or sales offices of companies headquartered in countries from Country Group A:5 and A:6 in supplement no. 1 to part 740, or joint ventures of companies headquartered in Country Group A:5 and A:6 with other companies headquartered in Country Groups A:5 and A:6 (§§ 740.13(c) and 740.17 of the EAR).
(7) License Exception CCD (§ 740.19 of the EAR).
(8) License Exception MED (§ 740.23 of the EAR).