The Bureau of Industry and Security has issued a final rule that, effective Sept. 4, adds 15 entities in China, Hong Kong, Pakistan, Russia, Saudi Arabia, Turkey, the United Arab Emirates, and the United Kingdom to the Entity List, which lists entities restricted from receiving U.S. exports of goods controlled under the Export Administration Regulations. This rule also (a) modifies one entry under Hong Kong and one entry under Russia and (b) removes one entity under Greece.
BIS is adding the affected entities for actions that include unlawfully procuring and diverting U.S.-origin armored vehicles to North Korea, procuring U.S.-origin items for reexport to entities in China and other countries without obtaining the necessary license, transshipping U.S.-origin items to sanctioned destinations without the required authorizations, supplying items subject to the EAR to nuclear and missile-related Entity List parties in Pakistan without the required license, attempting to acquire U.S.-origin commodities ultimately destined for Pakistan’s nuclear program, providing false and misleading information to BIS during an end-use check, transferring U.S.-origin aircraft engines to an Iranian customer without the required authorizations, and operating as the de facto research and development branch of another listed entity.
For these 15 entities there is a license requirement for exports, reexports, or transfers (in-country) of all items subject to the EAR and a license review policy of presumption of denial. The license requirement applies to any transaction in which items are to be exported, reexported, or transferred (in-country) to any of these entities or in which they 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.
The removal of the entity under Greece eliminates the existing license requirements in supplement no. 4 to part 744 for exports, reexports, and transfers (in-country) to this entity, though other applicable regulatory provisions remain in effect.