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List of Entities Restricted from Receiving Exports of Dual-Use Goods Updated

Thursday, June 26, 2014
Sandler, Travis & Rosenberg Trade Report

The Bureau of Industry and Security has issued a final rule that, effective June 26, adds four entities to and removes one entity from the Entity List. Three entities from China and one from Hong Kong are being added based on their attempts to supply items to China’s army and/or export items to destinations sanctioned by the U.S. One entity in Jordan is being removed at its request.

For the four entities being added there will be a license requirement for all items subject to the Export Administration Regulations and a license review policy of presumption of denial. These license requirements apply to any transaction in which items are to be exported, reexported or transferred (in-country) to any of these four 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.

The removal of the entity in Jordan eliminates the related license requirements for exports, reexports and transfers (in-country) to that entity. However, it does not relieve persons of their obligations under General Prohibition 5 in § 736.2(b)(5) of the EAR, which provides that “you may not, without a license, knowingly export or reexport any item subject to the EAR to an end-user or end-use that is prohibited by part 744 of the EAR.” It also does not relieve persons of their obligation to apply for export, reexport or in-country transfer licenses required by other provisions of the EAR.

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 June 26 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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