News

Commerce Adds 43 to Entity List: Includes Companies in the UK, Africa, Asia

On June 14, 2023 the Department of Commerce, Bureau of Industry and Security (BIS) added forty-three  entities in fifty locations to the Entity List (88 FR 38739).

The Entity List, found at Supplement No. 4 to Part 744 of the Export Administration Regulations (EAR), restricts exports of U.S.-origin goods and technology to listed parties. For these additions, the restrictions create a license requirement with a presumption of denial for all exports, reexports, or transfers subject to the EAR. This includes items classified as EAR99 or other items that would otherwise be shipped No License Required, or NLR.

The new members of the Entity List are located in:

  • China (31),
  • Kenya (1),
  • Laos (1),
  • Malaysia (1),
  • Pakistan (4),
  • Singapore (1),
  • South Africa (3),
  • Thailand (1),
  • United Arab Emirates (5), and
  • United Kingdom (2).

Rationales for inclusion in the Entity List vary, all relating to activities contrary to U.S. national security and foreign policy interests.  Entities were designated for:

  • Providing support to the Chinese military training and modernization, and hypersonics research;
  • Enabling human rights abuses against individuals in China; and
  • Contributions to Pakistan's ballistic missile program, advanced conventional weapons and strategic weapons capabilities.

BIS also published a press release on this action.

Because the listings were based on policies toward China and Pakistan, it is notable that nearly a third of the locations were outside of those two countries, including the UK, Kenya, South Africa, and multiple countries across Asia.  This is another reminder of the importance of screening parties in all countries.

Commerce Adds 13 to Entity List: Includes Canadian and European Entities Designated as Russian Military End Users

On February 27, 2023, the Department of Commerce, Bureau of Industry and Security (BIS) added ten companies in thirteen locations to the Entity List (88 FR 12170).

The Entity List, found at Supplement No. 4 to Part 744 of the Export Administration Regulations (EAR), restricts exports of U.S.-origin goods and technology to listed parties. For these additions, the restrictions create a license requirement with a presumption of denial for all exports, reexports, or transfers subject to the EAR. This includes items classified as EAR99 or other items that would otherwise be shipped No License Required, or NLR.

The companies, located in Canada, China, France, Luxembourg, Netherlands, and Russia, were added to the Entity List due to their contributions to Russia's military and/or defense industrial base.  Notably, they are also designated as Russian "military end users" subject to the Russia/Belarus-Military End User Foreign Direct Product (FDP) rule (EAR § 734.9(g)).

The new members of the Entity List are:

  • CPUNTO Inc. (Canada)
  • Electronic Network Inc. (Canada)
  • AOOK Technology Ltd. (China)
  • Beijing Ti-Tech Science and Technology Development Co. (China)
  • Beijing Yunze Technology Co., Ltd. (China)
  • China HEAD Aerospace Technology Co. (China)
  • Spacety Co. Ltd. (China)
  • China HEAD Aerospace Technology Co. (France)
  • Spacety Co., Ltd. (Luxembourg)
  • China HEAD Aerospace Technology Co. (Netherlands)
  • Dexias Industrial Products and Trade Limited Company (Russia)
  • Innovation and Technologies LLC (Russia)
  • Promtekhkomplekt JSC (Russia)

BIS also published a press release on this action and related sanctions.

With entities listed in countries outside of Russia (and especially close NATO and EU trading partners), this is a crucial reminder of the importance of screening parties in all countries.

Six Chinese Companies Added to Entity List After Spy Balloon Incident

On February 14, 2023, the Department of Commerce's Bureau of Industry and Security (BIS) published a rule (88 FR 9389) adding six companies in China to the Entity List.

The Entity List, found at Supplement No. 4 to Part 744 of the Export Administration Regulations (EAR), restricts exports of U.S.-origin goods and technology to listed parties. For these additions, the restrictions create a license requirement with a presumption of denial for all exports, reexports, or transfers subject to the EAR. This includes items classified as EAR99 or other items that would otherwise be shipped No License Required, or NLR.

The new members of the Entity List are:

  • Beijing Nanjiang Aerospace Technology Co., Ltd.;
  • China Electronics Technology Group Corporation 48th Research Institute;
  • Dongguan Lingkong Remote Sensing Technology Co., Ltd.;
  • Eagles Men Aviation Science and Technology Group Co., Ltd. (EMAST);
  • Guangzhou Tian-Hai-Xiang Aviation Technology Co., Ltd.; and
  • Shanxi Eagles Men Aviation Science and Technology Group Co., Ltd.

The companies were added to the Entity List because of their support for Chinese military modernization efforts, particularly People's Liberation Army (PLA) High Altitude Balloons used for intelligence and reconnaissance activities.

BIS also published a press release on the new additions to the Entity List.  This action is a reminder that sanctions lists are subject to daily change and sanctions programs often reach beyond the borders of the targeted country. Keep up with these and other changes with ECScreening.