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Dual-Use Goods Export Restrictions Revised

Monday, November 21, 2011
Sandler, Travis & Rosenberg Trade Report

The Bureau of Industry and Security has issued a final rule that, effective Nov. 21, makes several changes to the Entity List.

First, BIS is adding 14 persons under 21 entries: 11 in Afghanistan, eight in Pakistan, one in China and one in Hong Kong. The 13 persons in Afghanistan and Pakistan are being added for providing material support to persons engaged against U.S. and coalition forces in Afghanistan. The person in China, who will also be listed under an alternate address in Hong Kong, is being added for obtaining items subject to the Export Administration Regulations without the required authorizations.

For all of the persons being added to the Entity List, this rule specifies a license requirement for all items subject to the EAR and establishes a license application review policy of a presumption of denial. The license requirement applies to any transaction in which items are to be exported, reexported or transferred (in-country) to such persons or in which such persons act as purchaser, intermediate consignee, ultimate consignee or end-user. In addition, no license exceptions are available for exports, reexports or transfers (in-country) to those persons being added to the Entity List.

Second, this rule implements the results of the annual review of the Entity List for entities located in Canada. Specifically, BIS is amending two entries currently on the Entity List by adding alternate addresses.

Shipments of items removed from eligibility for a license exception or export or reexport without a license (NLR) as a result of this rule that were on dock for loading, on lighter, laden aboard an exporting or reexporting carrier, or en route aboard a carrier to a port of export or reexport on Nov. 21 pursuant to actual orders for export or reexport to a foreign destination may proceed to that destination under the previous eligibility for a license exception or NLR so long as they are exported or reexported before Dec. 6. Any such items not actually exported or reexported before midnight on Dec. 6 will require a license in accordance with the EAR.

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