Exports of EAR-Regulated Goods to Chinese Entities Restricted

Wednesday, August 01, 2018
Sandler, Travis & Rosenberg Trade Report

The Bureau of Industry and Security has issued a final rule that, effective Aug. 1, adds 44 entities in China 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 one entry under China to provide additional addresses and names for the entity at issue.

BIS is adding eight Chinese entities and 36 of their subordinate institutions for acting contrary to U.S. national security or foreign policy interests. Seventeen entities are involved in the illicit procurement of commodities and technologies for unauthorized military end-use in China while 27 entities present an unacceptable risk of use in, or diversion of U.S.-origin items to, military end-use activities in China.

For these 44 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.

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