Located in XUAR and throughout China, these entities have all been implicated in the implementation of China’s campaign of repression, mass arbitrary detention, and high-technology surveillance.Pursuant to Section 744.11(b) of the EAR, the Entity List identifies persons or organizations reasonably believed to be involved, or to pose a significant risk of being or becoming involved, in activities contrary to the national security or foreign policy interests of the United States. On June 5, 2020, the US Commerce Department’s Bureau of Industry and Security (“BIS”) published: (1) a final rule adding nine Chinese entities to the Entity List (the “XUAR Designees”), and (2) a final rule adding twenty four entities located in China, Hong Kong, and the Cayman Islands to the Entity List (the “Military Designees”).. The entities include governmental and commercial organizations based in China, Hong Kong, and the Cayman Islands.The 9 entities added for their reported ties to abuses in the XUAR include the PRC Ministry of Public Security’s Institute of Forensic Science, as well as eight Chinese companies, and form the second tranche of entities listed by BIS explicitly for human rights violations.Though Ross’ statements do not specify, it seems likely the additions will impose an export licensing requirement for all items subject to the EAR to the newly listed entities, though exports to the 9 human-rights related additions will likely include the same case-by-case standard of review for licensing of specified ECCNs. On October 9, the Bureau of Industry and Security (BIS) of the Department of Commerce announced it had added to its entity list 28 Chinese government and commercial organizations that had been implicated in human rights violations against Uighur Muslims in the Xinjiang region of China. This action constricts the export of items subject to the Export Administration Regulations (EAR) to entities that have been implicated in human rights violations and abuses in China’s campaign targeting Uighurs and other predominantly Muslim ethnic minorities in the Xinjiang Uighur Autonomous Region (XUAR).“The U.S. Government and Department of Commerce cannot and will not tolerate the brutal suppression of ethnic minorities within China,” said Secretary of Commerce Wilbur Ross.
Trade law and supply chain news, insights, and commentarySecretary of Commerce Ross announced the Entity List additions on Friday, May 22, 2020, via separate press releases, citing The addition of the 24 entities apparently supplying US commodities and technologies for military end use follows BIS’ recent interim final rule amending the Export Administration Regulations (EAR) § 744.21 end user/end use requirements, and appears to arise from the same U.S. concern surrounding civil and military integration in China. This means that BIS is very unlikely to grant, without a compelling reason, any licenses requested for export, reexport, or transfer (in country) of any goods subject to the EAR to these listed entities.
The above-mentioned Chinese enterprises listed on the "Entity List" will be further restricted by the U.S. Department of Commerce on the grounds of the Export Administration Regulations to conduct business, export, import or re-export of products or services with the United States side. “This action will ensure that our technologies, fostered in an environment of individual liberty and free enterprise, are not used to repress defenseless minority populations.”The additions include the XUAR People’s Government Public Security Bureau, 19 subordinate elements, and eight commercial entities. The issuance of the Supply Chain E.O. Prior results do not guarantee a similar outcome. Export compliance continues to be complicated for companies involved in business with China. An End-User Review Committee (ERC), which is composed of export control officials from the Commerce, State, Defense, Energy and Treasury departments, decides which entities are added to the Entity List.Serving the global freight industry with the fastest and most comprehensive news insights and market data on the planet.