On October 6, 2023, the Department of Commerce’s Bureau of Industry and Security (BIS) added 49 entities from China, Estonia, Finland, Germany, India, Turkey, United Arab Emirates (UAE), and the United Kingdom to the Entity List after determining that these companies were “acting contrary to the national security or foreign policy interests of the United States.” These entities were added to the Entity List for providing support to Russia’s military; specifically, for supplying Russian consignees connected to the Russian defense sector with U.S.-origin integrated circuits. Such U.S.-origin items require a license under the Export Administration Regulations (EAR) when destined to Russia or Belarus. For additional identifying details on these newly designated entities, the Federal Register notice is available here.
As a result, going forward, transactions with these entities have a license requirement for all items subject to the EAR, with a license review policy of denial. Shipments of items removed from eligibility for a License Exception or export, reexport, or transfer (in-country) without a license (NLR) as a result of these Entity List designations that were en route aboard a carrier to a port of export, reexport, or transfer (in-country), on October 6, 2023, pursuant to actual orders, may proceed to that destination under the previous eligibility for a License Exception or export, reexport, or transfer (in-country) without a license (NLR) before November 6, 2023. Any such items not actually exported, reexported or transferred (in-country) before midnight on October 6, 2023, will require a license from BIS.