Background

The State Department has determined that 29 foreign entities in Burma, China, Egypt, Eritrea, Iran, North Korea, Russia, Saudi Arabia, Sudan, and the United Arab Emirates have engaged in activities that warrant the imposition of penalties for the transfer to or acquisition from Iran, Syria, or North Korea of goods, services or technology controlled under multilateral control lists or otherwise having the potential to make a material contribution to the development of weapons of mass destruction or cruise or ballistic missile systems.

As a result, effective March 21 and for two years thereafter, the following measures are being imposed against these entities and any successors, sub-units, or subsidiaries thereof: (1) no U.S. government department or agency may procure or enter into any contract for the procurement of any goods, technology, or services from these entities; (2) no U.S. government department or agency may provide any assistance to these entities and they will not be eligible to participate in any U.S. government assistance program; (3) no U.S. government sales to these entities of any item on the U.S. Munitions List are permitted and all sales to these entities of any defense articles, defense services, or design and construction services under the Arms Export Control Act are terminated; and (4) no new individual licenses will be granted for the transfer to these entities of items the export of which is controlled under the Export Administration Act of 1979 or the Export Administration Regulations, and any existing such licenses are suspended.

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