Commerce Adds 95 to Entity List: Includes Companies from Canada to Kyrgyzstan
- Category: Blog - Denied Party Digest
Commerce Adds 95 to Entity List: Includes Companies from Canada to Kyrgyzstan
In two separate actions in the past week, the Department of Commerce, Bureau of Industry and Security (BIS) added ninety-five entities in 102 locations to the Entity List (89 FR 14385 and 89 FR 14403).
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.
The new members of the Entity List are located in:
- Canada (1),
- People's Republic of China (China) (9),
- India (2),
- Japan (1),
- Kyrgyzstan (2),
- Malaysia (1),
- Russia (63),
- South Korea (1),
- Sweden (1),
- Turkey (16), and
- United Arab Emirates (UAE) (5).
Rationales for inclusion in the Entity List vary, but most were related to support for Russia's military, defense industrial base, or other actual or attempted evasion of export controls on Russia. Five entities in China and forty-six in Russia were designated "Russian or Belarusian military end users" for these activities. In addition, a designations were related to diversion to Iran and one was designated for acquiring and attempting to acquire U.S.-origin items on behalf of a Chinese university on the BIS Entity List. Finally, Sandvine Incorporated, located in Canada, India, Japan, Malaysia, Sweden, and the United Arab Emirates was designated for supplying "deep packet inspection technology to the Government of Egypt, where it is used in mass web-monitoring and censorship to block news as well as target political actors and human rights activists."
BIS also published a press release on this action. While nearly two thirds of the listings targeted entities in Russia, it is notable that entities were also designated in other countries, include U.S. allies South Korea and Turkey.
The Department of Treasury's Office of Foreign Assets Control (OFAC) also published a press release summarizing additional sanctions imposed by OFAC and the Department of State on over 500 more targets to mark the second anniversary of the war in Ukraine. These designations were added to the Specially Designated Nationals And Blocked Persons List (SDN List).
While nearly two thirds of the listings targeted entities in Russia, it is notable that entities were also designated in other countries, include U.S. allies South Korea and Turkey, as well as the Canadian entity designated for activities in Egypt. This is another reminder of the importance of screening parties in all countries.