Industry News

BIS Makes Additions to Entity List and MEU List

Dec. 7. 2021


The Bureau of Industry and Security (BIS) recently added twenty-seven entities to the Entity List. These entities were added because the U.S. government believes they are involved in sales or support to Iran’s military program, North Korea, Pakistan’s nuclear and ballistic missile programs, or the Chinese government and military program.

The Entity List, found at Supplement No. 4 to Part 744 of the Export Administration Regulations (EAR), is a list published by BIS with the names of certain persons – including businesses, research institutions, government and private organizations, and individuals. The persons on the Entity List are subject to individual licensing requirements and policies supplemental to those found elsewhere in the EAR. The Entity List is a tool utilized by BIS to restrict the export, reexport, and in-country transfer of items subject to the EAR to persons reasonably believed to be involved in activities contrary to the national security or foreign policy interests of the United States.

The End-User Review Committee (ERC), composed of representatives of the Departments of Commerce (Chair), State, Defense, Energy and, where appropriate, the Treasury, makes all decisions regarding additions to, removals from, or other modifications to the Entity List. For the twenty-seven newly added entities, the ERC determined that their conduct raised sufficient concerns that a license requirement for exports, reexports, or transfers (in-country) of all items subject to the EAR, is appropriate. As a result of these entities being placed on the Entity List, BIS will impose a license requirement that applies to all items subject to the EAR. In addition, for these entities no license exceptions are available for exports, reexports, or transfers (in-country). BIS also imposes a license review policy with a presumption of denial for all twenty-seven entities.

The Moscow Institute of Physics and Technology was also added to the MEU List. The MEU List (supplement no. 7 to part 744 of the EAR) identifies entities that have been determined by ERC to be `military end users' pursuant to § 744.21 of the EAR. The institute is now subject to specific license requirements with a review policy of presumption of denial. Only License Exception GOV (governments, international organizations, international inspections under the Chemical Weapons Convention and the International Space Station) is available for this entity.

The entities subject to the new Entity List and MEU List are:


China

  • Corad Technology (Shenzhen) Ltd.
  • Hangzhou Zhongke Microelectronics Co., Ltd.
  • Hefei National Laboratory for Physical Sciences at Microscale
  • Hunan Goke Microelectronics
  • New H3C Semiconductor Technologies Co., Ltd.
  • Peaktek Company Ltd.
  • Poly Asia Pacific Ltd., (PAPL)
  • QuantumCTek Co., Ltd.
  • Shaanxi Zhi En Electromechanical Technology Co., Ltd.
  • Shanghai QuantumCTek Co., Ltd.
  • Xi’an Aerospace Huaxun Technology
  • Yunchip Microelectronics

 
Japan

  • Corad Technology Japan K.K.

 
Pakistan

  • Al-Qertas
  • Asay Trade & Supplies
  • Broad Engineering (Pakistan)
  • Global Tech Engineers
  • Jade Machinery Pvt. Ltd.
  • Jiuding Refrigeration & Air-conditioning Equipment Co (Pvt) Ltd.
  • K-Soft Enterprises
  • Muhammad Ashraf
  • Muhammad Farrukh
  • Prime Tech
  • Q&N Traders
  • Seljuk Traders (SMC-Private) Limited
  • U.H.L. Company

 

Singapore

  • Corad Technology Pte Ltd.

 

MEU List Under Russia

  •  
  • Moscow Institute of Physics and Technology

China has rebuffed these additions, with respect to the addition of Chinese entities. Zhao Lijian, spokesperson for the Ministry of Foreign Affairs of People's Republic of China, stated that China firmly opposes the additions and that the country would take necessary counter measures.

If you have questions or concerns about how these additions to the Entity List or the MEU List may impact your organization, please contact an attorney at Barnes, Richardson & Colburn LLP.