Effective Dec. 18, the Bureau of Industry and Security has added 77 entities in 10 countries to the Entity List, which lists entities restricted from receiving U.S. exports of goods controlled under the Export Administration Regulations. BIS has also removed one entity from Israel and three entities from the United Arab Emirates from this list.
The entities being added include Semiconductor Manufacturing International Corporation Incorporated, China’s largest semiconductor manufacturer, and ten related entities in light of evidence of activities between SMIC and entities of concern in the Chinese military-industrial complex. BIS states that this designation limits SMIC’s ability to acquire certain U.S. technology by requiring exporters, reexporters, and in-country transferors of such technology to apply for a license to sell to the company. Items uniquely required to produce semiconductors at advanced technology nodes 10 nanometers or below will be subject to a presumption of denial to prevent such technology from supporting China’s military modernization efforts.
More than 60 other Chinese entities are being added for enabling human rights abuses, supporting the militarization of and unlawful maritime claims in the South China Sea, acquiring U.S.-origin items in support of People’s Liberation Army’s programs, and engaging in the theft of U.S. trade secrets. Other entities being added include four in Bulgaria, two in France, two in Germany, one in Hong Kong, one in Italy, two in Malta, two in Pakistan, three in Russia, and two in the UAE.
For all 77 entities BIS is imposing a license requirement that applies to all items subject to the EAR. In addition, no license exceptions are available for exports, reexports, or transfers (in-country) to these entities. BIS is imposing a license review policy of presumption of denial for 60 of the entities along with varying review policies for the other 17 entities.
Shipments of items removed from license exception eligibility or for 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 Dec. 22 pursuant to actual orders for export or reexport to a foreign destination may proceed to that destination under the previous license exception eligibility or without a license.
For more information on restrictions on exports to persons on the Entity List or other lists, please contact Kristine Pirnia.
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