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Commerce piles on the Entity List

The Bureau of Industry and Security subjects 17 overseas entities to stricter U.S. export licensing controls by adding them to the Entity List.

U.S. Commerce Department

The Commerce Department’s Bureau of Industry and Security has added 17 companies and individuals to the Entity List for posing a risk to U.S. national security and foreign policy interests. 

The Entity List subjects U.S. exporters to specific export licensing requirements and prohibitions when conducting business with the listed entities. Organizations or persons who violate U.S. export control rules — as defined under the Export Administration Regulations (EAR) — are subject to criminal penalties and administrative sanctions.

The newest additions to the Entity List include four entities in China, which are associated with nuclear power, and four entities from the United Arab Emirates, which are related to the metal alloys trade. Entities also were added to the list from Armenia (two), Belgium (two), Canada (one), Georgia (one), Hong Kong (one), Malaysia (one), the Netherlands (one), Russia (one) and the United Kingdom (one). 

An End-User Review Committee (ERC), which is composed of export control officials from the Commerce, State, Defense, Energy and Treasury departments, decides which entities are added to the list.

The ERC, for example, determined that the four Chinese entities had “engaged in or enabled efforts to acquire advanced U.S. nuclear technology and material for diversion to military uses in China,” BIS said in a Federal Register notice announcing the additions to the Entity List.

According to BIS, Kelvo Inc. of Canada, which was added to the Entity List, allegedly “engaged in unlawful reexports from Canada to Russia and Armenia of items subject to the EAR and controlled on the Commerce Control List (CCL) for national security reasons.” 

The agency also announced that 23 entries to the Entity List have been modified. Modifications were made to 17 China entries, four Hong Kong entries and two Russian entries. 

Under the ERC’s direction, BIS also removed three entries from the Entity List: Jereh International and Yantai Jereh Oilfield Services Group Co. Ltd. of China, added to the list on March 21, 2016, and Deira General Marketing of the U.A.E., which was placed on the list on Jan. 26, 2018. The three entities filed formal requests to be removed from the list with the Commerce Department that were approved upon review by the ERC.

Since the start of this year, BIS has added numerous entities, mostly in China, to the Entity List, including Huawei Technologies Co. Ltd. and 68 of its overseas affiliates and subsidiaries on May 21. This action was followed by the additional inclusion of five Chinese entities involved in so-called supercomputer technology development on June 24.

Chris Gillis

Located in the Washington, D.C. area, Chris Gillis primarily reports on regulatory and legislative topics that impact cross-border trade. He joined American Shipper in 1994, shortly after graduating from Mount St. Mary’s College in Emmitsburg, Md., with a degree in international business and economics.