The Bureau of Industry and Security has issued a final rule that, effective Dec. 7, adds 28 entities in Russia, four in Cyprus, three each in Armenia and Belgium, and one each in Belarus, China, Germany, Kazakhstan, the Netherlands, and the United Arab Emirates to the Entity List.
These entities are being added for a variety of reasons, including (1) posing a risk of diversion of items subject to the Export Administration Regulations to Russia, (2) acquiring and illicitly diverting U.S.-origin electronic components on behalf of parties in China and Russia, (3) falsifying official documents to circumvent export controls and sanctions, (4) procuring and transshipping U.S.-origin avionics equipment to Russia, (5) engaging in dealings with entities on the Entity List or that are subject to U.S. sanctions, (6) procuring U.S.-origin items recovered from an Iranian drone used by Russia in Ukraine, and (7) significantly contributing to Russia’s military and/or defense industrial base in connection with the development of military-grade drones in Russia.
For these entities BIS is imposing a license requirement for exports of all items subject to the EAR and a license application review policy of denial or presumption of denial. BIS is also designating 25 entities as Russian or Belarusian military end-users, which subjects them to the associated foreign direct product rule.
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 Dec. 7 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 Jan. 8. Any such items not actually exported, reexported, or transferred before midnight on Jan. 8 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.
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