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16 Added to List of Entities Restricted from Receiving Exports of Dual-Use Goods

Friday, August 01, 2014
Sandler, Travis & Rosenberg Trade Report

The Bureau of Industry and Security has issued a final rule that, effective Aug. 1, adds 16 persons under the following 19 entries to the Entity List.

- five in the United Arab Emirates and Iran for their involvement in the attempted export of a lathe machine subject to the Export Administration Regulations, which may be used in the production of “bright steel” that, in turn, may be used in the manufacture or automobile and aircraft parts

- five in Afghanistan for engaging in activities in support of persons designated as foreign terrorist organizations

- five in China for their involvement in the illicit procurement of commodities and technologies for unauthorized military end use in China

- two each in China and Hong Kong for their involvement in the unauthorized exploitation of computer systems of U.S. companies and Department of Defense contractors to illicitly obtain and export information, including controlled technology related to military projects

For all 16 persons being added there will be a license requirement for all items subject to the EAR 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 the persons being added 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 persons.

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 Aug. 1 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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