Background

The Bureau of Industry and Security has issued a final rule that, effective June 1, adds eight entities in Pakistan and the United Arab Emirates to its Entity List, which lists entities restricted from receiving U.S. exports of goods controlled under the Export Administration Regulations. These entities are being added based on a determination that they are involved in proliferation to unsafeguarded nuclear activities that are contrary to U.S. national security and/or foreign policy.

For these eight entities BIS is imposing a license requirement that applies to all items subject to the EAR and a license review policy of a presumption of denial. BIS also states that no license exceptions are available for exports, reexports, or transfers (in-country) to these entities.

This rule also removes one entity in Pakistan from the Entity List and one entity in China from the military end-user list.

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 June 1 pursuant to actual orders for export, reexport, or transfer to or within a foreign destination may proceed to that destination under the previous eligibility.

For more information on restrictions on exports to persons on the Entity List or other lists, please contact attorney Kristine Pirnia via email.

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