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Commerce Adds 43 to Entity List: Includes Companies in the UK, Africa, Asia

On June 14, 2023 the Department of Commerce, Bureau of Industry and Security (BIS) added forty-three  entities in fifty locations to the Entity List (88 FR 38739).

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:

  • China (31),
  • Kenya (1),
  • Laos (1),
  • Malaysia (1),
  • Pakistan (4),
  • Singapore (1),
  • South Africa (3),
  • Thailand (1),
  • United Arab Emirates (5), and
  • United Kingdom (2).

Rationales for inclusion in the Entity List vary, all relating to activities contrary to U.S. national security and foreign policy interests.  Entities were designated for:

  • Providing support to the Chinese military training and modernization, and hypersonics research;
  • Enabling human rights abuses against individuals in China; and
  • Contributions to Pakistan's ballistic missile program, advanced conventional weapons and strategic weapons capabilities.

BIS also published a press release on this action.

Because the listings were based on policies toward China and Pakistan, it is notable that nearly a third of the locations were outside of those two countries, including the UK, Kenya, South Africa, and multiple countries across Asia.  This is another reminder of the importance of screening parties in all countries.