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BIS Adds Twenty-Six to Entity List, Removes Two

Category: Blog - Denied Party Digest

BIS Adds Twenty-Six to Entity List, Removes Two

On October 21, 2024, the Department of Commerce, Bureau of Industry and Security (BIS) published a rule (89 FR 84460) adding twenty-six entries to the Entity List. The new additions are located in:

  • People's Republic of China (China) (6)
  • Egypt (1)
  • Pakistan (16)
  • United Arab Emirates (UAE) (3)

BIS also published a press release on these additions.  Reasons for addition to the Entity List were based on "violations of export controls, involvement in weapons programs of concern, and evasion of U.S. sanctions and export controls on Russia and Iran."

The Entity List, found at Supplement No. 4 to Part 744 of the Export Administration Regulations (EAR), restricts exports of U.S.-origin goods and technology to listed parties. For these additions, the restrictions create a license requirement with a presumption of denial for all exports, reexports, or transfers subject to the EAR. This includes items classified as EAR99 or other items that would otherwise be shipped No License Required, or NLR.

BIS also took the less common step of removing two companies from the Entity List:

  • Sandvine Incorporated (Canada, India, Japan, Malaysia, Sweden, and the UAE)
  • Hefei Bitland Information Technology Co. Ltd. (China)

A press release on the Sandvine removal cited corporate reforms to protect human rights:

Sandvine was added to the Entity List in February 2024 after its products were used to conduct mass web-monitoring and censorship and target human rights activists and dissidents, including by enabling the misuse of commercial spyware. It has since taken significant steps to address the misuse of its technology that can undermine human rights.

Over the past several months, Sandvine has overhauled its corporate structure, leadership, and business model. The company has pivoted to focus on servicing democracies committed to the protection of human rights. Sandvine’s actions include, amongst others: exiting non-democratic countries, with 32 already exited and an additional 24 countries in process; fostering deeper relationships with civil society; dedicating profits to the protection of rights; adding human rights experts to its new leadership team; vetting business decisions through the newly created Business Ethics Committee; and closely monitoring technology misuse in countries in which they plan to remain.