BIS Adds Seven to Entity List for Support to Chinese Military Modernization
On August 24, 2022, the Department of Commerce, Bureau of Industry and Security published a rule (87 FR 51786) adding seven entries to the Entity List. The August 24th additions are:
- China Aerospace Science and Technology Corporation (CASC) 9th Academy 771
Research Institute; - China Aerospace Science and Technology Corporation (CASC) 9th Academy 772
Research Institute; - China Academy of Space Technology 502 Research Institute;
- China Academy of Space Technology 513 Research Institute;
- China Electronics Technology Group Corporation 43 Research Institute;
- China Electronics Technology Group Corporation 58 Research Institute; and
- Zhuhai Orbita Control Systems.
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 restructions 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 published a press release on these additions.
The Entity List now includes around 600 Chinese entities, plus Chinese-linked entities worldwide. Support for Chinese military modernization is one of many foreign policy concerns addressed by the Entity List. Screening Chinese parties is a particular concern, but it should always be noted that parties in any country can end up on a sanctions list.