Background

The Bureau of Industry and Security has issued a final rule adding 26 foreign persons to the Unverified List because an end-use check could not be completed satisfactorily for reasons outside the U.S. government’s control. BIS is also removing 40 persons from the Unverified List.

The new entries consist of three persons in Armenia, two in Finland, three in Germany, five in Hong Kong, three in Pakistan, two in Turkey, six in the United Arab Emirates, and one each in China and Mexico. This rule suspends license exceptions for exports, reexports, and transfers (in-country) involving these persons. In addition, exporters, reexporters, and transferors of goods subject to the Export Administration Regulations but not requiring a license to these persons must obtain (and keep a record of) a UVL statement from them before proceeding with the transaction.

Those being removed from the UVL include 16 in China, 22 in Hong Kong, one in Indonesia, and one in the UAE. BIS states that it has determined that these companies are no longer registered to do business in the listed country and are no longer involved in U.S. exports.

The UVL contains the names and addresses of foreign persons who are or have been parties to a transaction involving the export, reexport, or transfer (in-country) of items subject to the EAR whose bona fides (i.e., legitimacy and reliability relating to the end-use and end-user of items subject to the EAR) BIS has been unable to verify through an end-use check; e.g., the foreign party cannot be located at the address indicated on export documents, or during a check a recipient of items subject to the EAR is unable to produce them for visual inspection or provide sufficient documentation or other evidence to confirm their disposition. BIS may also place persons on the UVL when there is insufficient evidence to place them on the Entity List.

Shipments (1) removed from license exception eligibility or that are now subject to requirements in §744.15 of the EAR as a result of this rule and (2) on dock for loading, on lighter, laden aboard an exporting carrier, or en route aboard a carrier to a port of export on Oct. 9, pursuant to actual orders, may proceed to that UVL-listed person under the previous license exception eligibility or without a license so long as they have been exported from the U.S., reexported, or transferred (in-country) before Nov. 9. Any such items not actually exported, reexported. or transferred (in-country) before midnight on Nov. 9 will be subject to the requirements in §744.15 of the EAR in accordance with this rule.

For more information on restrictions on exports to persons on the Unverified List or other lists, please contact Kristine Pirnia.

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