The U.S. Bureau of Industry and Security of the Department of Commerce (BIS) has issued a final rule effective from September 22, 2020; and added 47 new entities under 51 entities to its Entity List for engaging in activities contrary to the national security or foreign policy interests of the U.S.. The list includes six entities from China, two from Hong Kong, fifteen from Iran, six from Pakistan, two from Thailand, five from the UK, and eleven from the UAE. Furthermore, the list includes one entity from Turkey, one from Oman, one from Canada, and one from Malaysia.
Being added for a range of illegal procurement activities such as supporting for nuclear-related activities contrary to the national security or foreign policy of the U.S., contributing the unsafeguarded nuclear activities, involving in a scheme to procure Bell 412 helicopters on behalf of an Iranian end-user, and sending U.S. origin items to Iran; the entities in the List are now restricted from receiving U.S. exports of goods controlled under the Export Administration Regulations (EAR).
License Requirements and Reviews
With the final rule, BIS has imposed a license requirement on 39 of the 47 entities for all items subject to the EAR, and a license review policy of a presumption of denial. The remaining 8 entities are now also subject to the license review policy as per the section 744/2 of the EAR which applies to the nuclear-related exports, imports, and transfers. From September 22, 2020 forth, there will be no exceptions available for exports, imports, and transfers to these entities. Nevertheless, if the shipments of items, which are removed from license exception eligibility or restricted for export or import without a license after this rule comes into effect pursuant to actual orders for exports and imports to a foreign destination, were already en route aboard a carrier to a port of export or import may proceed to the pre-established destination under the previous license exception eligibility, or without a license if applicable.
Correction of Entities
Furthermore, BIS, with this final rule, corrects the Federal Register citation for four existing entities on the Entity List under the destination of China. These entities were added to the List on October 9, 2019, and June 5, 2020; and modified on July 22, 2020. BIS states that the final rule published on July 22, 2020 did not include the Federal Register citation for the four aforementioned entities.