On January 14, 2021, the Department of Commerce’s Bureau of Industry and Security (BIS) issued a Federal Register notice announcing the addition and removal of certain Chinese and Russian entities from the Entity List and the Military End-User (MEU) List.
Notably, BIS added China National Offshore Oil Corporation Ltd. to the Entity List for its involvement in China’s “efforts to assert its unlawful maritime claims in the South China Sea, as well as efforts to intimidate and coerce other South China Sea coastal states from accessing and developing offshore marine resources.” This listing affects all exports subjects to the Export Administration Regulations (EAR) except for crude oil, condensates, aromatics, natural gas liquids, hydrocarbon gas liquids, natural gas plant liquids, refined petroleum products, liquefied natural gas, natural gas, synthetic natural gas, and compressed natural gas under various Harmonized System Tariff (HTS) subheadings. All other exports are under a license review policy of a presumption of denial.
Further, BIS added Beijing Skyrizon Aviation Industry Investment Co., Ltd. to the MEU List. As a result, a license is now required for specific exports, reexports, or transfers (in-country) of certain items listed in Supplement no. 2 to 15 C.F.R. part 744 because BIS has determined that “there is an unacceptable risk of use in or diversion to a ‘military end use’ or ‘military end user’ in China.”
Finally, BIS removed Korporatsiya Vsmpo Avisma OAO (Russia) and Molot Oruzhie (Russia) from the MEU List, though Molot Oruzhie remains on the Entity List.
These updates were effective as of January 14, 2021. However, certain shipments of items that are no longer eligible for export without a license as a result of this regulatory action that were en route aboard a carrier to a port of export, reexport, or transfer (in-country) prior to January 14 may proceed to their destination under the previous eligibility.