On January 15, 2025, the Department of Commerce’s Bureau of Industry and Security (BIS) issued two Final Rules adding 27 companies to the Entity List.
In the first Final Rule, BIS added 16 entities under the destinations of China (14) and Singapore (2). These entities are being added to the Entity List due to their involvement in supporting or directly contributing to the development of advanced computing integrated circuits (ICs) that further China’s development of advanced weapons systems, weapons of mass destruction, and high-tech surveillance applications, and because these entities supply Chinese public security end users and pose a risk of diversion to Huawei, an entity on BIS’ Entity List.
In the second Final Rule, BIS added 11 entities under the destination of China. According to BIS, these entities were added since they advance China’s military modernization through the development and integration of advanced artificial intelligence research. In a press release, BIS specifically stated that, one of these entities “was added for its involvement in development of lithography technology for advanced-node fabrication facilities in China. This technology will enable indigenous production in China of advanced integrated circuits for military end-use.”
Both rules are effective as of January 16, 2025. The Entity List identifies entities for which there is reasonable cause to believe that the entities present a high diversion risk, have been involved, are involved, or pose a significant risk of being or becoming involved in activities contrary to the national security or foreign policy interests of the United States. The Entity List specifies the license requirements that BIS imposes on each listed entity. Such license requirements are independent of, and in addition to, license requirements imposed elsewhere in the EAR. For these 16 entities, a license is required from BIS for all items subject to the Export Administration Regulations (EAR). License applications will be reviewed under a presumption of denial.
For the changes being made in this Final Rule, 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 this regulatory action that were en route aboard a carrier to a port of export, reexport, or transfer (in-country), on January 16, 2025, 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) before February 15, 2025. Any such items not actually exported, reexported or transferred (in-country) before midnight, on February 15, 2025, require a license in accordance with this Final Rule.