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Exports of EAR-Regulated Goods to Certain Mainland Chinese Entities Restricted

The Bureau of Industry and Security has issued a final rule that, effective 1 August, adds 44 entities in mainland China 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 one entry under mainland China to provide additional addresses and names for the entity at issue.

BIS is adding eight mainland Chinese entities and 36 of their subordinate institutions for acting contrary to U.S. national security or foreign policy interests. Seventeen entities are involved in the illicit procurement of commodities and technologies for unauthorised military end-use in mainland China while 27 entities present an unacceptable risk of use in, or diversion of U.S.-origin items to, military end-use activities in the mainland.

For these 44 entities there is a licence requirement for exports, re-exports or transfers (in-country) of all items subject to the EAR and a licence review policy of presumption of denial. The licence 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.

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