The Bureau of Industry and Security has issued a final rule that, effective Oct. 9, adds 28 Chinese entities to the Entity List and thereby restricts them from receiving U.S. exports of goods controlled under the Export Administration Regulations.
BIS states that 20 of these entities have been implicated in “human rights violations and abuses in the implementation of China’s campaign of repression, mass arbitrary detention, and high-technology surveillance against Uighurs, Kazakhs, and other members of Muslim minority groups in the Xinjiang Uighur Autonomous Region.” BIS is also adding eight commercial entities, including large manufacturers of video surveillance equipment, for related reasons.
For these 28 entities BIS is imposing a license requirement for exports of all items subject to the EAR and a license review policy of case-by-case review for (a) Export Control Classification Numbers 1A004.c, 1A004.d, 1A995, 1A999.a, 1D003, 2A983, 2D983, and 2E983 and (b) items designated as EAR99 that are described in the note to ECCN 1A995, specifically, items for protection against chemical or biological agents that are consumer goods, packaged for retail sale or personal use, or medical products. For all other items subject to the EAR, BIS is adopting a license review policy of presumption of denial.
These requirements apply 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 Oct. 9 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.
For more information on restrictions on exports to persons on the Entity List or other lists, please contact export attorney Kristine Pirnia.