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BIS Amends List of Entities Restricted from Receiving Exports of Dual-Use Goods

Friday, December 13, 2013
Sandler, Travis & Rosenberg Trade Report

The Bureau of Industry and Security has issued a final rule that, effective Dec. 12, adds 36 persons under 46 entries to the Entity List for acting contrary to U.S. national security or foreign policy interests. This rule also revises three existing entries and removes one entry.

- The entities being added include one in Armenia, two in Canada, four in China, one in Germany, two in Greece, five in Hong Kong, five in Iran, four in Malaysia, four in Thailand, 11 in Turkey and seven in the United Arab Emirates. Violative actions include exporting controlled items to Iran via virtual offices and freight forwarders in Hong Kong and Malaysia, facilitating shipments of controlled items to Chinese entities on the Entity List, providing false information concerning the final destination of shipments, and engaging in an “aggressive procurement scheme” that has directly supported the operation of an airline on the Entity List.

- One existing entry under Sweden is being corrected by providing an address for the listed person in Estonia.

- Two entries in Canada are revised, one by removing two addresses and the other by updating an address.

- One person in Russia is being removed.

Certain exports, reexports and transfers (in-country) of items subject to the Export Administration Regulations to entities identified on the Entity List require licenses from BIS but are usually subject to a policy of denial because BIS considers such entities to present significant risks of diversion to weapons of mass destruction programs, terrorism or other activities that are contrary to U.S. national security or foreign policy interests. This 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 such transactions.

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 Dec. 12 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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