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Restrictions on Exports of EAR-Regulated Goods Added, Revised, Removed

Wednesday, September 26, 2018
Sandler, Travis & Rosenberg Trade Report

The Bureau of Industry and Security has issued a final rule that, effective Sept. 26, adds 14 entities in Belarus, Iran, Russia, and Singapore to the Entity List, which lists entities restricted from receiving U.S. exports of goods controlled under the Export Administration Regulations. This rule also modifies one entry under the United Arab Emirates to specify two aliases and removes one entity under Hong Kong.

BIS is adding the affected entities for actions that include providing material support to Iranian missile programs, enabling the actions of malicious Russian cyber actors, providing equipment and support to the Russian navy, supporting Russian military aerospace production activities, and aiding the proliferation of unsafeguarded nuclear activities.

For 13 of these 14 entities there is a license requirement for exports, reexports, or transfers (in-country) of all items subject to the EAR and a license review policy of presumption of denial. For the other entity there is also a license requirement but BIS will exercise the license review policy set forth in subpart (d) of EAR § 744.2, a nuclear end-user and end-use based provision.

For all 14 entities 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.

The removal of the entity under Hong Kong eliminates the existing license requirements in supplement no. 4 to part 744 for exports, reexports, and transfers (in-country) to this entity, though other applicable regulatory provisions remain in effect.

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