The Russia (Sanctions) (EU Exit) (Amendment) (No. 4) Regulations 2023

Amendment and insertion of Schedules

22.—(1) Schedule 2A (critical-industry goods and critical-industry technology) is amended in accordance with paragraphs (2) to (8).

(2) In Part 1A, at the end of the table insert—

“Tungsten, tungsten carbide and alloys, not controlled by 1C117 or 1C226 of Annex 1 of the Dual-Use Regulation, containing more than 90 % tungsten by weight. Note 1: For the purpose of this control, wire is excluded. Note 2: For the purpose of this control, surgical or medical instruments are excluded.”

(3) Part 2 is amended in accordance with paragraphs (4) to (8).

(4) At the end of entry 3A991, insert—

“p. Ceramic frequency filters;

q. Cermet trimmers.”.

(5) After entry 3B992 insert—

“3B993 Equipment for the manufacture of Printed Circuit Boards (PCBs) and specially designed components and accessories therefor, as follows:

a. Film processing equipment;

b. Solder mask coating equipment;

c. Photo plotter equipment;

d. Plating or electroplating deposition equipment;

e. Vacuum chambers and presses;

f. Roll laminators;

g. Alignment equipment;

h. Etching equipment.

3B994 Automated optical inspection equipment for testing Printed Circuit Boards (PCBs), based on optical or electrical sensors, and capable to detect any of the following quality defects:

a. Spacing, area, volume or height;

b. Bill boarding;

c. Components (presence, absence, flipped, offset, polarity, or skew);

d. Solder (bridging, insufficient solder joints);

e. Leads (insufficient paste, lifting);

f. Tombstoning; or

g. Electrical (shorts, opens, resistance, capacitance, power, grid performance).”.

(6) After entry 3C992 insert—

“3C993 Chemicals and materials of the type used in the production of Printed Circuit Boards (PCBs), as follows:

a. PCB composite substrates made of glass fibre or cotton (e.g. FR-4, FR-2, FR-6, CEM-1,G-10, etc.);

b. Multilayer PCB substrates, containing at least one layer of any of the following materials:

b.1. Aluminium;

b.2. Polytetrafluoroethylene (PTFE); or

b.3. Ceramic materials (e.g. alumina, titanium oxide, etc.);

c. Etchant chemicals;

c.1. Ferric chloride (7705-08-0);

c.2. Cupric chloride (7447-39-4);

c.3. Ammonium persulphate (7727-54-0);

c.4. Sodium persulphate (7775-27-1);

c.5. Chemical preparations specially designed for etching and containing any of the chemicals included in c.1 to c.4.

Note: 3C993.c. does not control “chemical mixtures” containing one or more of the chemicals specified in entry c. in which no individually specified chemical constitutes more than 10 % by the weight of the mixture.

d. Copper foil with a minimum purity 95 % and of a thickness less than 100 μm;

e. Polymeric substances and films thereof of less than 0.5 mm of thickness, as follows:

e.1. Aromatic polyimides;

e.2. Parylenes;

e.3. Benzocyclobutenes (BCBs);

e.4. Polybenzoxazoles.”

(7) After entry 3D991 insert—

“3D992 “Software” specially designed for the test, “development” or “production” of Printed Circuit Boards (PCBs).”.

(8) After entry 3E991 insert—

“3E992 “Technology” for the “development”, “production” or “use” of Printed Circuit Boards (PCBs).”.

(9) In Schedule 3A (luxury goods)—

(a) in paragraph 17, insert in the appropriate place in the table—

“8527 12 00

Pocket-size radio cassette”;

(b) in paragraph 18, insert in the appropriate places in the table—

“8703 21	Motor cars and other motor vehicles principally designed for the transport of <10 persons, including station wagons and racing cars, with only spark-ignition internal combustion reciprocating piston engine of a cylinder capacity <=1,000 cm³
8703 22	Motor cars and other motor vehicles principally designed for the transport of <10 persons, including station wagons and racing cars, with only spark-ignition internal combustion reciprocating piston engine of a cylinder capacity >1,000 cm³ but <=1,500 cm³
8703 31	Motor cars and other motor vehicles principally designed for the transport of <10 persons, including station wagons and racing cars, with only diesel engine of a cylinder capacity <=1,500 cm³”.

(10) In Schedule 3B (iron and steel products)—

(a) in the heading to Part 2, for “Part 3” substitute “Part 2”;

(b) after Part 3, insert the Part 4 which is set out in Schedule 1 to these Regulations.

(11) After Schedule 3B insert the Schedule 3BA which is set out in Schedule 2 to these Regulations.

(12) Schedule 3C (defence and security goods and defence and security technology) is amended in accordance with paragraphs (13) to (16).

(13) In Part 3, after paragraph 3 insert—

“Other related goods

3A.— (1) Any goods within commodity codes 9303 and 9304 not covered by paragraphs 1 to 3 above.

(2) Paragraph 1 of Schedule 3 applies for the purposes of interpreting sub-paragraph (1).”.

(14) Part 4 is amended in accordance with paragraphs (15) and (16).

(15) In entry 1C991—

(a) in c.1—

(i) for “1C351.d.3” substitute “1C351.d.1”;

(ii) for “1C351.d.6” substitute “1C351.d.3”;

(b) in c.2—

(i) for “1C351.d.3” substitute “1C351.d.1”;

(ii) for “1C351.d.6” substitute “1C351.d.3”;

(c) in d.1, for “1C351.d.3” substitute “1C351.d.1”;

(d) in d.2, for “1C351.d.6” substitute “1C351.d.3”;

(e) in d.3—

(i) for “1C351.d.3” substitute “1C351.d.1”;

(ii) for “1C351.d.6” substitute “1C351.d.3”.

(16) In entry 1C995—

(a) in a.1, for “10” substitute “30”;

(b) in a.2, for “less than 30 per cent.” substitute “30 per cent. or less”;

(c) in the table in a.2.b, after “Ammonium hydrogen fluoride” insert “or ammonium bifluoride”;

(d) in b.1, for “the following concentrations of CWC Schedule 2” substitute “30 per cent. or less, by weight, of any single CWC Schedule 2”;

(e) omit b.1.a and b.1.b;

(f) in b.2, for “less than 30 per cent.” substitute “30 per cent. or less”;

(g) in c., for “precursor chemicals controlled by the following” substitute “the following precursor chemicals”;

(h) in the table in c.—

(i) after “Ammonium hydrogen fluoride” insert “or ammonium bifluoride”;

(ii) insert in the appropriate places the precursor chemicals specified in Schedule 3 to these Regulations.

(17) Schedule 3E (G7 dependency and further goods) is amended in accordance with paragraphs (18) to (20).

(18) In Part 2—

(a) in paragraph 2, for “Any” substitute “Subject to paragraph 2A, any”;

(b) after paragraph 2 but before the table insert—

“2A.   Goods coming within commodity codes 8703 23, 8703 24, 8703 32 and 8703 33 do not include ambulances.”;

(c) in the table, insert in the appropriate places the commodity codes and goods which are set out in Schedule 4 to these Regulations.

(19) In Part 3, insert in the appropriate places the commodity codes and goods which are set out in Schedule 5 to these Regulations.

(20) After Part 3, insert the Part 4 which is set out in Schedule 6 to these Regulations.

(21) Schedule 5 (Treasury licences: purposes) is amended in accordance with paragraphs (22) and (23).

(22) After Part 1 insert—

“PART 1ZA Divestment etc.

Interpretation of Part 1ZA

9DA.   In this Part—

“designated person”, “frozen account” and “relevant institution” have the respective meanings given in regulation 58(7);

“Government of Russia” has the same meaning as in regulation 6;

“non-UK country” means a country that is not the United Kingdom;

“non-UK credit or financial institution” has the same meaning as in regulation 17A;

“person concerned” means the Government of Russia or, as the case may be, a designated person;

“UK entity” means a person, other than an individual, incorporated or constituted under the law of any part of the United Kingdom.

Divestment

9DB.— (1) To enable anything to be done by a UK entity to enable that entity to undertake a relevant transfer.

(2) In sub-paragraph (1), a “relevant transfer” means a transfer of funds or economic resources located in Russia and owned, held or controlled by the UK entity, to a person concerned in order to enable that entity to divest itself, either wholly or partially, of those funds or economic resources.

(3) Where sub-paragraph (4) applies, to enable anything to be done by a UK entity in order to allow that entity to acquire from a person concerned an interest in that entity held by that person.

(4) This sub-paragraph applies where—

(a) the sole consideration for that acquisition is a transfer of funds from the UK entity to the person concerned;

(b) such funds are credited to—

(i) a frozen account held by a relevant institution; or

(ii) an account held by a non-UK credit or financial institution in a non-UK country; and

(c) where paragraph (b)(ii) applies, the law of that non-UK country—

(i) contains relevant and appropriate—

(aa) prohibitions corresponding to those in Part 3 of these Regulations; and

(bb) exceptions corresponding to those in Part 7 of these Regulations; and

(ii) where relevant or appropriate, allows for licences to be granted on grounds corresponding to those in this Schedule.

Enabling others to divest themselves of funds or economic resources

9DC.— (1) To enable anything to be done by a UK entity in order to enable another person (“B”) to undertake a relevant transfer.

(2) In sub-paragraph (1), a “relevant transfer” means a transfer of funds or economic resources located in Russia and owned, held or controlled by B, to a person concerned, in order to enable B to divest itself, either wholly or partially, of those funds or economic resources.

(3) Where sub-paragraph (4) applies, to enable anything to be done by a UK entity in order to enable B to acquire from a person concerned an interest in B held by the person concerned.

(4) This sub-paragraph applies where—

(a) the sole consideration for that acquisition is a transfer of funds from B to the person concerned;

(b) such funds are credited to—

(i) a frozen account held by a relevant institution; or

(ii) an account held by a non-UK credit or financial institution in a non-UK country; and

(c) where paragraph (b)(ii) applies, the law of that non-UK country—

(i) contains relevant and appropriate—

(aa) prohibitions corresponding to those in Part 3 of these Regulations; and

(bb) exceptions corresponding to those in Part 7 of these Regulations; and

(ii) where relevant or appropriate, allows for licences to be granted on grounds corresponding to those in this Schedule.”.

(23) In Part 1C—

(a) for the heading substitute “Processing payments”;

(b) after paragraph 9T insert—

“Other licensing purposes

9TA.   To enable anything to be done in connection with a licence which the Treasury has decided to issue for another purpose specified in this Schedule.”.

(24) Schedule 7 omits commodity codes and the descriptions of items associated with those codes.