Background

The Bureau of Industry and Security has issued a final rule that, effective April 8, added seven supercomputing entities in China to its Entity List, which lists entities restricted from receiving U.S. exports of goods controlled under the Export Administration Regulations. These entities are being added based on their involvement in activities that support China’s military actors, its military modernization efforts, and/or its weapons of mass destruction programs.  

For these seven entities BIS is imposing a license requirement that applies to all items subject to the EAR and a license review policy of a presumption of denial. BIS also states that no license exceptions are available for exports, reexports, or transfers (in-country) to these entities.

Shipments of items removed from eligibility for a license exception or for export, reexport, or transfer (in-country) without a license (NLR) as a result of this rule that were en route aboard a carrier to a port of export, reexport, or transfer on April 8 pursuant to actual orders for export, reexport, or transfer to or within a foreign destination may proceed to that destination under the previous eligibility.

For more information on restrictions on exports to persons on the Entity List or other lists, please contact attorney Kristine Pirnia via email.

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