The Bureau of Industry and Security has issued a final rule that, effective Jan. 29, adds four entities in Bulgaria, one in China, two in Kazakhstan, two in Russia, two in Syria, and 12 in the United Arab Emirates 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) removes one entity from Taiwan and two entities from the UAE and (b) modifies one entry under China and one entry under Pakistan to provide additional or modified names and/or addresses.
BIS is adding the 21 entities because there is reasonable cause to believe that they have been involved in the procurement of items for an entity on the Entity list in circumvention of established licensing requirements (11 entities), have been involved in transshipping items to a person in China on the Entity List for an unauthorized military end use (one entity), unlawfully conspired to procure and divert controlled aircraft parts to a restricted entity (seven entities), and procured U.S.-origin items and transferred them to entities of the Russian military and parties on the Entity List without the necessary licenses (two entities).
For these 21 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 three entities eliminates the existing license requirements in supplement no. 4 to part 744 for exports, reexports, and transfers (in-country) to these entities, though other applicable regulatory provisions remain in effect.