The Bureau of Industry and Security has issued a final rule that, effective May 14, adds 12 foreign persons to the Entity List, which lists entities restricted from receiving U.S. exports of goods controlled under the Export Administration Regulations. This rule also modifies the listing for one entity in the United Arab Emirates and removes one entity in the UAE.
The new entries consist of six persons in China or Hong Kong (for prohibited exports of controlled technology or attempting to buy U.S.-origin goods for Iran), one person in Pakistan (for involvement in proliferation to unsafeguarded nuclear activities), and five persons in the UAE (for preventing end-user checks or obtaining U.S.-origin goods for restricted entities).
For these entities, BIS is imposing a license requirement for exports of all items subject to the EAR and a license review policy of presumption of denial. This 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.
Shipments of items removed from license exception eligibility or for export or reexport without a license (NLR) as a result of this rule that were en route aboard a carrier to a port of export or reexport on May 14 pursuant to actual orders for export or reexport to a foreign destination may proceed to that destination under the previous license exception eligibility or without a license.
The removal of the entity in the UAE 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.
For more information on restrictions on exports to persons on the Entity List or other lists, please contact export attorney Kristine Pirnia at (202) 730-4964.