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Tuesday, December 22, 2020

Commerce Department Adds 77 Individuals and Companies to the Entity List

On December 18, 2020, the Commerce Department’s Bureau of Industry and Security (“BIS”) announced that it was adding 77 individuals and companies from various countries to the Entity List. The BIS explained that these parties were added to the Entity List because they have ties to China’s military, support China’s militarization of the South China Sea, are involved in human rights violations, have stolen U.S. technologies or trade secrets, and/or have committed U.S. export violations. The new controls on these entities took effect on December 18th.

The Entity List can be found in Supplement No. 4 to Part 744 of the Export Administration Regulations (15 C.F.R. Pars 730 – 774) (“EAR”). U.S. persons are prohibited from exporting, reexporting or transferring in-country all items that are subject to the EAR to the listed parties without first obtaining a license from BIS. In addition, no EAR license exceptions are available for transactions involving Entity List parties. BIS imposes the following licensing policies on the newly listed entities—

– For eleven of the entities (SMIC and related parties), BIS imposes a license review policy of presumption of denial for items that are uniquely required for the production of semiconductors at advanced technology nodes (i.e., 10 nanometers and below, including extreme ultraviolet technology). For all other items, there will be a case-by-case license review policy.

– For two of the entities (Geo Research and Link Lines (Pvt) Limited), BIS imposes the license review policy set forth in Section 744.2(d) of the EAR which relate to certain nuclear end uses.

– For four of the entities (AGCU Scientech, CNSIM, DJI, and Kuang-Chi Group), BIS imposes a case-by-case license review policy for items necessary to detect, identify and treat infectious disease, and a presumption of denial for all other items subject to the EAR.

– For the other remaining entities, BIS imposes a license review policy of a presumption of denial.

The 77 entities are as follows:

• Dimitar Milanov Dimitrov
• Mariana Marinova Gargova
• Milan Dimitrov
• Multi Technology Integration Group EOOD (MTIG)
• AGCU Scientech
• Beijing Institute of Technology
• Beijing University of Posts and Telecommunications (BUPT)
• China Communications Construction Company Ltd.
• China National Scientific Instruments and Materials (CNSIM);
• China State Shipbuilding Corporation, Limited (CSSC) 7th Research Academy
• China State Shipbuilding Corporation, Limited (CSSC) 12th Research Institute
• China State Shipbuilding Corporation, Limited (CSSC) 701st Research Institute
• China State Shipbuilding Corporation, Limited (CSSC) 702nd Research Institute
• China State Shipbuilding Corporation, Limited (CSSC) 703rd Research Institute
• China State Shipbuilding Corporation, Limited (CSSC) 704th Research Institute
• China State Shipbuilding Corporation, Limited (CSSC) 705th Research Institute
• China State Shipbuilding Corporation, Limited (CSSC) 707th Research Institute
• China State Shipbuilding Corporation, Limited (CSSC) 709th Research Institute
• China State Shipbuilding Corporation, Limited (CSSC) 710th Research Institute
• China State Shipbuilding Corporation, Limited (CSSC) 711th Research Institute
• China State Shipbuilding Corporation, Limited (CSSC) 712th Research Institute
• China State Shipbuilding Corporation, Limited (CSSC) 713th Research Institute
• China State Shipbuilding Corporation, Limited (CSSC) 714th Research Institute
• China State Shipbuilding Corporation, Limited (CSSC) 715th Research Institute
• China State Shipbuilding Corporation, Limited (CSSC) 716th Research Institute
• China State Shipbuilding Corporation, Limited (CSSC) 717th Research Institute
• China State Shipbuilding Corporation, Limited (CSSC) 718th Research Institute
• China State Shipbuilding Corporation, Limited (CSSC) 719th Research Institute
• China State Shipbuilding Corporation, Limited (CSSC) 723rd Research Institute
• China State Shipbuilding Corporation, Limited (CSSC) 724th Research Institute
• China State Shipbuilding Corporation, Limited (CSSC) 725th Research Institute
• China State Shipbuilding Corporation, Limited (CSSC) 726th Research Institute
• China State Shipbuilding Corporation, Limited (CSSC) 750th Test Center
• China State Shipbuilding Corporation, Limited (CSSC) 760th Research Institute
• Chongqing Chuandong Shipbuilding Industry Co Ltd.
• Chong Zhou
• CSSC Huangpu Wenchong Shipbuilding Co., Ltd.
• DJI
• Guangxin Shipbuilding and Heavy Industry Co., Ltd.
• Guangzhou Taicheng Shipbuilding Industry Co., Ltd.
• Huisui Zhang
• Jiangsu Hengxiang Science and Education Equipment Co., Ltd.
• Jinping Chen
• Kuang-Chi Group
• Nanjing Asset Management Co., Ltd.
• Nanjing University of Aeronautics and Astronautics
• Nanjing University of Science and Technology
• Ningbo Semiconductor International Corporation (NSI)
• ROFS Microsystems
• Semiconductor Manufacturing International (Beijing) Corporation
• Semiconductor Manufacturing International Corporation (SMIC)
• Semiconductor Manufacturing International (Shenzhen) Corporation
• Semiconductor Manufacturing International (Tianjin) Corporation
• Semiconductor Manufacturing South China Corporation
• SJ Semiconductor
• SMIC Holdings Limited
• SMIC Northern Integrated Circuit Manufacturing (Beijing) Co., Ltd.
• SMIC Semiconductor Manufacturing (Shanghai) Co., Ltd.
• Tianjin Micro Nano Manufacturing (MNMT)
• Tianjin University
• Tongfang NucTech Technology Ltd.
• Wei Pang
• Zhao Gang
• France Tech Services
• Satori Corporation
• Maintenance Services International (MSI) GmbH
• MRS GmbH
• SMIC Hong Kong International Company Limited
• Zigma Aviation
• Feroz Ahmed Akbar
• Sparx Air Ltd.
• Geo Research
• Link Lines (Pvt.) Limited
• Cosmos Complect
• Ilias Kharesovich Sabirov
• OOO Sovtest Comp
• Satori Corporation
• Sky Float Aviation FZE.

As noted above, the new Entity List restrictions took effect on December 18, 2020; however, shipments that are on board a carrier to a port as of December 22, 2020, will be allowed to proceed to their destinations under the previous eligibility.

For further details, see 85 Federal Register 83416 (December 22, 2020).

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Please contact us should you have any questions about these recent developments or other international trade issues.

Melissa M. Proctor
President and CEO
Peggy Chaplin Louie
Senior Attorney
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