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

Thursday, September 18, 2014
Sandler, Travis & Rosenberg Trade Report

The Bureau of Industry and Security has issued a final rule that, effective Sept. 18, revises its list of entities restricted from receiving exports of dual-use goods from the United States.

Additions. This rule adds 28 persons under 34 entries to the Entity List.

- one in Australia, one in China, one in Hong Kong, six in Pakistan and one in Singapore for their involvement in the procurement of sensitive U.S. technology in support of Pakistan’s development of its missile and strategic unmanned aerial vehicle programs

- four in Hong Kong for purchasing items subject to the Export Administration Regulations with the intention of reselling them to end-users in China without proper authorization

- one in Afghanistan for engaging in activities in support of persons designated as a foreign terrorist organization

- one in Armenia, one in India, one in Ireland, one in Pakistan, one in the United Kingdom, two in Greece and four in the United Arab Emirates for their involvement in activities in support of the Syrian regime

- one in the UAE for attempting to export to Iran a lathe machine used in the production of high-grade steel for automobile and aircraft parts

- one in Pakistan for procuring U.S.-origin items for or on behalf of a Pakistani entity already on the Entity List

For 27 of the 28 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. For the remaining person there will be a license requirement for such items and a license review policy of case-by-case for all items listed on the Commerce Control List and a presumption of approval for EAR99 items. 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 these additions that were en route aboard a carrier to a port of export or reexport on Sept. 18 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.

Removals. This rule also removes Bruce Lam, Creative Electronics and United Sources Industrial Enterprises, all located in Hong Kong, from the Entity List because they have reached agreements with BIS that include measures protecting U.S. national security and foreign policy interests.

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