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Export Restrictions Imposed on Four Mainland Chinese Entities, One Hong Kong Entity

The U.S. Department of Commerce’s Bureau of Industry and Security has issued a final rule that, effective 14 August, adds 17 foreign entities under a total of 19 entries to the Entity List, which lists entities restricted from receiving U.S. exports of goods controlled under the Export Administration Regulations. This rule also modifies the listing for 23 entities in mainland China, Hong Kong and Russia and removes two entities in mainland China and one entity in the United Arab Emirates.

The new additions consist of four entities in mainland China (China General Nuclear Power Group, China General Nuclear Power Corporation, China Nuclear Power Technology Research Institute Co. Ltd. and Suzhou Nuclear Power Research Institute Co. Ltd.), one entity in Hong Kong (Corad Technology Limited), two entities in Armenia, two entities in Belgium (one of these entities is also being listed as an entry in the Netherlands and the United Kingdom), one entity in Canada, one entity in Georgia, one entity in Malaysia, one entity in Russia and four entities in the UAE.

BIS notes that the entities in mainland China are being added for engaging or enabling efforts to acquire advanced U.S. nuclear technology and material for diversion to military uses in mainland China, while the entity in Hong Kong is being added for its involvement in the sale of U.S. technology to Iran’s military and space programmes, to front companies of North Korea, and to subordinate entities of the mainland Chinese government and its defence industry.

For these entities, BIS is imposing a licence requirement for exports of all items subject to the EAR and a licence review policy of presumption of denial. This requirement applies to any transaction in which items are to be exported, re-exported or transferred (in-country) to any of these entities or in which they act as purchaser, intermediate consignee, ultimate consignee or end-user. In addition, no licence exceptions are available for exports, re-exports or transfers (in-country) to these entities.

Shipments of items removed from licence exception eligibility or for export or re-export without a licence (NLR) as a result of this rule that were en route aboard a carrier to a port of export or re-export on 14 August pursuant to actual orders for export or re-export to a foreign destination may proceed to that destination under the previous licence exception eligibility or without a licence.

The removal of the two entities in mainland China (Jereh International and Yantai Jereh Oilfield Services Group Co. Ltd.) eliminates the existing licence requirements in supplement no. 4 to part 744 for exports, re-exports and transfers (in-country) to these entities, though other applicable regulatory provisions remain in effect. The removal is based on information BIS received pursuant to section 744.16 of the EAR and the review conducted by the End-User Review Committee in accordance with procedures described in supplement No. 5 to part 744.

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