The Bureau of Industry and Security has issued a final rule adding eight individuals and companies from China, Iran, Taiwan and Turkey to its list of entities restricted from receiving exports of dual-use goods from the United States.
One Chinese company is being added after being indicted for transshipping U.S.-origin items to Iran through China. In addition, seven individuals or companies from Iran, Taiwan and Turkey are being added for receiving, transshipping or otherwise facilitating illegal exports to Iran of high-tech microelectronics, uninterruptible power supplies and other commodities that are frequently used in a wide range of military systems, including surface-to-air and cruise missiles. BIS is adding these entities in connection with the recent indictment of four companies and five individuals for committing such activities in violation of the International Emergency Economic Powers Act.
For those being added to the Entity List there will be a license requirement for exports of all items subject to the Export Administration Regulations and a license review policy of presumption of denial. The license requirements apply to any transaction in which items are to be exported, reexported or transferred (in-country) to any of these entities or in which such entities 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 entities.
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 the date this rule is published in the Federal Register 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.