Introduction

During September 2023, the US, UK, and EU, and Japan, updated their Common High Priority Items Lists (“the List(s)“), with seven new Harmonized System (“HS“) codes. These coordinated Lists are composed of items identified as critical to Russia’s war effort, weapons systems and military development. The Lists highlight to businesses that there is a particularly high risk these sanctioned items may be the target of sanctions circumvention and possible diversion to Russia. Companies can expect that the items on the Lists will be an enforcement priority in these jurisdictions.

Listed products include electronic components, such as integrated circuits and radio frequency transceiver modules, and items that are essential for the manufacturing and testing of the electronic components and circuits.  Companies that sell and ship the Listed products should be on high alert for possible red flags indicating that the items could be diverted to Russia. 

Updated Lists

Seven new HS codes have been added to the Lists, including bearings needed for heavy vehicles or other machinery and antennae used for navigation systems. Additionally, Tier 3 has been subdivided into Tier 3A (other electrical components) and Tier 3B (mechanical components). Subsequently, the Lists are now divided into four tiers ranked according to their relative degree of criticality. Tier 1 (integrated circuits) and Tier 2 (electronic components) contain particularly sensitive items of the highest concern for Russian weapons systems. Tier 3 is divided between electrical (Tier 3A) and mechanical (Tier 3B) components, and Tier 4 pertains to manufacturing, production and quality testing equipment.

On 19 September 2023, the US Department of Commerce‚Äôs Bureau of Industry and Security (“BIS“) announced an updated List following meetings with key members of the Global Export Control Coalition (see here).

On 14 September 2023, the UK’s Foreign, Commonwealth & Development Office (“FCDO“) added these seven new HS product codes to the List (see here).

In September 2023, the EU released an updated version of its List of High Priority Battlefield Items (see here).

Japan’s existing list of products that are subject to an export ban to Russia can be found at pages 7 to 20 here.

Author

Ms. Contini focuses her practice on export controls, trade sanctions, and anti-boycott laws. This includes advising US and multinational companies on trade compliance programs, risk assessments, licensing, review of proposed transactions and enforcement matters. Ms. Contini works regularly with companies across a wide range of industries, including the pharmaceutical/medical device, oil and gas, and nuclear sectors.

Author

Junko focuses her practice on commercial and trade laws and regulations, WTO dispute settlement, civil and criminal litigation, antitrust law, bankruptcy law and general corporate law. She has extensive experience advising clients on issues involving trade remedy matters such as anti-dumping and countervailing duties, and import restrictions. She also advises on customs matters, classification and valuation issues, export control and sanctions, tariff treatment, FTA/EPA applications, public procurement, and handles antitrust compliance programs for clients.

Author