On June 28, 2022, the Department of Commerce’s Bureau of Industry and Security (BIS) issued a Final Rule placing 36 entities on the Entity List for engaging in activities contrary to the national security or foreign policy interests of the United States. These entities will be listed on the BIS Entity List under the destinations of: (i) the People’s Republic of China (China), (ii) Lithuania, (iii) Pakistan, (iv) the Russian Federation (Russia), (v) Singapore, (vi) the United Arab Emirates (UAE), (vii) the United Kingdom, (viii) Uzbekistan, and (ix) Vietnam. This Final Rule also revises 11 existing entries under the destinations of Belarus, China, Russia, and Slovakia and corrects one existing entry on the Entity List under the destination of Pakistan.
Six entities have been added to the Entity List due to providing support to Russia’s military and/or defense industrial base. Twelve Chinese entities have been added due to deceptive practices to supply Iran with U.S.-origin electronics that would ultimately provide support to Iran’s military. Eight entities have been added due to their efforts to acquire U.S.-origin items in support of military applications. Four additional Russian entities have been added for activities contrary to the national security or foreign policy interests of the United States. Four UAE entities have been placed on the Entity List for posing an unacceptable risk of using or diverting items to certain nuclear end-uses and certain rocket systems and unmanned aerial vehicles end-uses. Two additional UAE entities have been added for either providing false or misleading information and for circumventing BIS export licensing requirements.
Their addition to the Entity List means these entities are subject to a license requirement – currently under a policy or presumption of denial, or a case-by-case review – with no license exceptions available, for the export, reexport, export from abroad, or transfers (in-country) of all items subject to the EAR destined to these entities.
The rule is effective as of June 28, 2022. BIS has stated that shipments of items subject to the Final Rule that, pursuant to actual orders were en route aboard a carrier to a port of export, reexport, or transfer (in-country) on June 28, 2022, may proceed to that destination under the previous export eligibility without a license (NLR).