On December 15, 2022, the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) announced that it is adding 36 primarily Chinese entities, including Chinese memory chip maker Yangtze Memory Technologies and surveillance technology firm Tiandy Technologies, as well as nine Russian entities to its Entity List for their involvement, or significant risk of involvement, in activities contrary to the national security and foreign policy of the United States. The moves are being made in concert with BIS’s new policy cracking down on foreign governments that prevent end-use checks used to ensure compliance with the Export Administration Regulations (EAR). Notably, and consistent with the new end-use check policy, BIS is also removing 27 entities from its Unverified List (UVL) after verifying their bona fides.
BIS’s New End-Use Check Policy
BIS conducts end-use checks to verify the legitimacy and reliability of the use and/or end user of items subject to the EAR. In October 2022, BIS announced a new two-step policy to address instances where a foreign government prevents the agency from carrying out an end-use check. Under the new policy, BIS generally will initiate the process to add foreign parties to the Unverified List 60 days after checks are requested but host government inaction prevents their completion. If after 60 more days BIS is still unable to conduct an end-use check due to continued host government inaction, the entity will be added to the Entity List....
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