Denied Party Digest

Valuable information about denied party screening

Companies in Canada, South Korea, and UK included in Entity List Update

On Monday, July 12, 2021, the U.S. Department of Commerce, Bureau of Industry and Security (BIS) added thirty-four entities to the Entity List. Most were added based on their role in enabling the People's Republic of China's "campaign of repression, mass detention, and high-technology surveillance against Uyghurs, Kazakhs, and members of other Muslim minority groups in the Xinjiang Uyghur Autonomous Regions of China (XUAR)" as well as "supporting PRC’s military modernization programs related to lasers and C4ISR programs." Others were added based on their efforts to facilitate unauthorized exports to Iran, Russian military programs, and other unauthorized uses.

The notice also included a handful of removals, revisions, and an additional Russian entity on the Military End-user (MEU) List.

For the new additions, inclusion on the Entity List creates a license requirement for exports and reexports of all items subject to the EAR (including EAR99). With some exceptions, these are subject to a policy of denial.  The full list is available in the Federal Register Notice (86 FR 36496) and Supplement No. 4 to Part 744 - Entity List.

The entities are located in:

  • Canada
  • People's Republic of China (China)
  • Iran
  • Lebanon
  • The Netherlands
  • Pakistan
  • Russia
  • Singapore
  • South Korea
  • Taiwan
  • Turkey
  • United Arab Emirates (UAE)
  • United Kingdom

The majority of those countries are neither subject to comprehensive sanctions nor other significant trade restrictions. (Only China, Iran, Lebanon, and Russia, for example, are included on the ITAR section 126.1 prohibited destination list. Only Iran, Lebanon, and Russia are the subjects of country-specific OFAC sanctions.) As a result, some countries may not be flagged for review as countries of concern. This serves as an important reminder that not only is the Entity List subject to change, but screening only when a country of concern comes up is not enough to maintain export compliance. Sanctions directed at one country frequently affect entities located in other countries.

For more information, visit the Commerce Department press release.