The Bureau of Industry and Security has issued a final rule confirming its policy that human rights violations can be a reason to add entities to the Entity List and placing 11 new entities on that list for such reasons.
BIS states that this rule amends the Export Administration Regulations to explicitly confirm a longstanding position that protecting human rights worldwide is a foreign policy interest considered in assessing whether the activities of an entity, and those acting on its behalf, are contrary to U.S. national security or foreign policy and whether the entity should thus should be added to the Entity List. BIS states that a 2022 decision by a U.S. appellate court affirmed its authority to add parties to the Entity List for human rights-related reasons and notes congressional support for such action as far back as 1979.
In accordance with this policy, effective March 28 this rule adds five entities in China, three in Burma, two in Russia, and one in Nicaragua to the Entity List for various reasons, including (1) selling and servicing military equipment that allows Burma’s military regime to carry out human rights abuses, (2) complicity in, or direct or indirect engagement in, serious human rights abuses in Nicaragua, and (3) involvement in human rights violations and abuses in China.
For all of these entities BIS is imposing a license requirement for exports of all items subject to the EAR and will review license applications under a presumption of denial.
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 March 28 pursuant to actual orders for export, reexport, or transfer to or within a foreign destination may proceed to that destination under the previous eligibility before April 27. Any such items not actually exported, reexported, or transferred before midnight on April 27 will require a license in accordance with this rule.
For more information on restrictions on exports to persons on the Entity List or other lists, please contact Kristine Pirnia at (202) 730-4964 or via email.
Copyright © 2023 Sandler, Travis & Rosenberg, P.A.; WorldTrade Interactive, Inc. All rights reserved.