1. (a) License requirements. For purposes of paragraphs (a)(1) of this section, commodities and software classified under ECCNs 5A992 or 5D992 that have been 'classified in accordance with § 740.17' do not require a license to or within Russia or Belarus 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, 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, branches, or sales offices of companies headquartered in Country Group A:5 and A:6 with other companies headquartered in Country Groups A:5 and A:6. In addition, for purposes of paragraphs (a)(1) and (2), transfers within Russia or Belarus for reexports (i.e., return) to the United States or a country in Country Group A:5 or A:6 of any item, provided the owner retains title to and control of the item at all times, do not require a license. If a license is required for a reexport to a Country Group A:5 or A:6 country from Russia or Belarus, a separate EAR authorization is required to authorize the reexport.

   1. (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. (2) Worldwide license requirement for 'luxury goods' for Russian and Belarusian oligarch and malign actors. 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) worldwide any 'luxury good' subject to the EAR, as identified in supplement no. 5 to this part, to any Russian or Belarusian oligarch or malign actor, regardless of location, who are designated on the Department of the Treasury, Office of Foreign Assets Control's (OFAC) List of Specially Designated Nationals and Blocked Persons (SDN List) with any of the following designations: [RUSSIA-EO14024], [UKRAINE-EO13660], [UKRAINE-EO13661], [UKRAINE-EO13662], [UKRAINE-EO13685], [BELARUS], and [BELARUS-EO14038] or in situations in which any such Russian or Belarusian oligarch or malign actor is a party to the transaction as described in § 748.5(c) through (f). For purposes of this paragraph (a)(2), an 'oligarch or malign actor' is any natural person that is designated on the SDN List with any of the designations referenced in this paragraph (a)(2).
2. (b) Licensing policy. 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. 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: applications involving items to meet humanitarian needs and 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 that are curtailing or closing all operations in Russia or Belarus. 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.

3. (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) of this section. No license exceptions may overcome the license requirements in paragraph (a)(2) of this section.

   1. (1) License Exception BAG, excluding firearms and ammunition (§ 740.14, excluding paragraph (e), of the EAR).
   2. (2) License Exception AVS for saloon stores and supplies, excluding any saloon stores and supplies for 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(b)(3)(v) of the EAR).
   3. (3) License Exception CCD (§ 740.19 of the EAR).

Note to paragraph (a): 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.

[87 FR 14788, Mar. 16, 2022, as amended at 87 FR 57086, Sept. 16, 2022; 88 FR 12182, Feb. 27, 2023]