BIS Expands Foreign Direct Product Rule for Iran

On July 26, 2024, the U.S. Department of Commerce's (Commerce) Bureau of Industry and Security (BIS) published a final rule in the Federal Register "expanding the scope of the Export Administration Regulations' (EAR) Foreign Direct Product rule for Iran".

According to the rule, the changes include:

• expansion of the range of items that fall into the product scope to include certain items from Categories 3 through 9 of the Commerce Control List (CCL);
• addition of the end-user scope to include "'knowledge' that the Government of Iran is a party to any transaction involving the foreign-produced item"; and
• structural amendments to add clarity to the expanded scope.

The final rule became effective on July 23, 2024.

The final rule can be found here:
https://www.federalregister.gov/documents/2024/07/26/2024-16566/iran-foreign-direct-product-rule