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New Restrictions on Exports to 12 Persons Added to Unverified List

Wednesday, October 07, 2015
Sandler, Travis & Rosenberg Trade Report

The Bureau of Industry and Security has issued a final rule that, effective Oct. 7, adds 12 foreign persons to the Unverified List, including one in Canada, one in the Czech Republic, one in Georgia, four in Hong Kong and five in the United Arab Emirates. As a result, license exceptions are suspended for exports, reexports and transfers (in-country) involving these persons, and exporters, reexporters and transferors of goods subject to the Export Administration Regulations but not requiring a license to these persons must obtain (and keep a record of) a UVL statement from them before proceeding with the transaction. These persons are being added because BIS could not verify their bona fides.

This rule also (a) adds addresses for four persons in Hong Kong currently listed on the UVL because BIS has determined that they are receiving U.S. exports at addresses not previously included in their UVL listings and (b) and removes two persons (one in Hong Kong and one in Pakistan) from the UVL because BIS verified their bona fides through the successful completion of end-use checks. BIS notes that this removal eliminates the restrictions described above with respect to these persons but does not remove obligations under other parts of the EAR.

The UVL contains the names and addresses of foreign persons who are or have been parties to a transaction involving the export, reexport or transfer (in-country) of items subject to the EAR whose bona fides (i.e., legitimacy and reliability relating to the end-use and end-user of items subject to the EAR) BIS has been unable to verify, either because an end-use check such as a pre-license check or post-shipment verification could not be completed satisfactorily for reasons outside the U.S. government’s control or because during an end-use check a recipient of items subject to the EAR was unable to produce those items for visual inspection or provide sufficient documentation or other evidence to confirm the disposition of those items. BIS may place a person on the UVL when there is insufficient evidence to place them on the Entity List.

Shipments (1) removed from license exception eligibility or that are now subject to requirements in § 744.15 of the EAR as a result of this rule, (2) eligible for export, reexport or transfer (in-country) without a license before this rule, and (3) on dock for loading, on lighter, laden aboard an exporting carrier or en route aboard a carrier to a port of export on Oct. 7, pursuant to actual orders, may proceed to that UVL-listed person under the previous license exception eligibility or without a license so long as they have been exported from the U.S., reexported or transferred (in-country) before Nov. 6. Any such items not actually exported, reexported or transferred (in-country) before midnight on Nov. 6 will be subject to the requirements in § 744.15 of the EAR in accordance with this rule.

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