On March 24, 2023, the Department of Commerce’s Bureau of Industry and Security (BIS) issued a Final Rule adding 32 persons and entities to its Unverified List (UVL). The UVL contains the names and addresses of foreign persons who are or have been parties to a transaction involving the export, reexport, or transfer (in-country) of items subject to the Export Administration Regulations (EAR), and whose bona fides could not be verified via end-use checks or post-shipment verifications (i.e., BIS could not verify the legitimate end use and end user of items subject to the EAR).
The 32 newly listed persons and entities are located in the following destinations: Bulgaria, Canada, China, Germany, Indonesia, Israel, Malaysia, Saudi Arabia, Singapore, Turkey and the United Arab Emirates. BIS’ inability to confirm the bona fides of these persons and entities “raises concerns about the suitability of such persons as participants in future exports, reexports, or transfers (in-country) of items subject to the EAR; this also indicates a risk that such items may be diverted to prohibited end uses and/or end users.” Specific details on each entity, including names and addresses, are available in the Final Rule. These additions to the Unverified List are effective as of March 24, 2023.
The use of license exceptions is suspended for transactions involving persons and entities on the UVL. Additionally, exporters, reexporters, and transferors must obtain a UVL statement from a party or parties to the transaction who are listed on the UVL before proceeding with exports, reexports, and transfers (in-country) to such persons. However, shipments to any of the new designees on the Unverified List that were en route aboard a carrier on March 24, 2023, pursuant to actual orders for export, reexport, or transfer (in-country) to or within a foreign destination, may proceed to that destination under the previous eligibility for a License Exception or export, reexport, or transfer (in-country) without a license (NLR).