The Bureau of Industry and Security has issued a final rule that, effective May 9, adds 37 entities in China to the Entity List.
These entities are being added for (1) their support of, or their connections to companies that support, a high-altitude balloon that overflew the U.S. in February 2023, (2) acquiring U.S.-origin items applicable to unmanned aerial vehicles to be used by Chinese military entities, (3) acquiring U.S.-origin items in support of advancing China’s quantum technology capabilities, and (4) their involvement in the shipment of controlled items to Russia.
For the listed entities BIS is imposing a license requirement for exports of all items subject to the Export Administration Regulations and a license application review policy of presumption of denial.
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 May 9 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 June 10. Any such items not actually exported, reexported, or transferred before midnight on June 10 will require a license in accordance with this rule.
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