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Restrictions on Exports of Dual-Use Goods to Foreign Entities Modified

Monday, March 21, 2016
Sandler, Travis & Rosenberg Trade Report

The Bureau of Industry and Security has issued a final rule that, effective March 21, adds 44 persons under 49 entries in China, Germany, Hong Kong, India, Iran, Malaysia, the Netherlands, Singapore, Switzerland and the United Arab Emirates to the list of entities restricted from receiving exports of dual-use goods from the United States. BIS has determined that 23 of these entities have made attempts to procure items, including U.S.-origin items, for activities contrary to U.S. national security and foreign policy interests.

For these 44 entities under 49 entries there will be a license requirement for all items subject to the Export Administration Regulations and a license review policy of presumption of denial. The license requirement applies to any transaction in which items are to be exported, reexported or transferred (in-country) to any of these entities or in which they 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 these entities.

This rule also removes five entities in Ukraine and the UAE from the Entity List and modifies two existing entries from China to reflect additional aliases and 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 en route aboard a carrier to a port of export or reexport on March 11 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.

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