To update our original post on May 29, 2020 BIS Adds 33 Chinese Companies to the Entity List, the new final rules are available for public inspection and expected to be published in the Federal Register on June 5, 2020. As mentioned in our prior blog post, the Department of Commerce announced the addition of 33 Chinese companies to the Entity List through two separate press releases. The Entity List had not yet been, however, to reflect the new additions, nor the corresponding federal register notices published, as required.
On Wednesday, June 3, BIS published for public inspection the new final rules adding the 33 Chinese companies to the Entity List. As previewed in the press releases, BIS will add the companies in two tranches: first, twenty-four entities that BIS determined to either be involved in, or “pose a significant risk” of becoming involved in, procuring items and technology for military end use in China; and second, nine entities determined to have been implicated in human rights violations of minority groups in the Xinjiang Uighur Autonomous Region (XUAR).
Additionally, BIS clarified the licensing policy for the newly listed entities. For all of the entities, a license is required for all items subject to the EAR with a presumption of denial and no license exceptions are available. For the nine entities determined to be involved in human rights violations, however, BIS will review license applications on a case-by-case basis for the export, reexport, or transfer of (1) items controlled in ECCNs 1A004.c, 1A004.d, 1A995, 1A999.a, 1D003, 2A983, and 2E983, as well items designated as EAR described in the Note to 1A995; and (2) that will be used for personal protection against chemical or biological agents, or medical products.