Today, the Commerce Department’s Bureau of Industry and Security (BIS) issued a rule that adds 37 entities to the Entity List for, among other activities, contributing to Russia’s military and/or defense industrial base, supporting PRC military modernization, and facilitating or engaging in human rights abuses in Burma and in the People’s Republic of China (PRC).

“When we act to oppose military aggression in the case of Russia and PRC military modernization, and protect and advance human rights, we are putting our values into action and enhancing our shared security in the process,” said Deputy Secretary of Commerce Don Graves. “We will not hesitate to use the tools at our disposal to achieve those goals.” “We will continue to send the world a simple message—the United States will not allow diversion of peaceful trade in ways that undermine our values and weaken our security. 

That’s exactly what we are saying today,” said Under Secretary of Commerce for Industry and Security Alan F. Estevez. “When we identify entities that pose a national security or foreign policy concern for the United States, we add them to the Entity List to ensure we can scrutinize their transactions,” Assistant Secretary Thea D. Rozman Kendler. “In addition to screening against the Entity List, exporters and those transacting in items subject to our regulations need to exercise careful due diligence to determine whether such items may be diverted to prohibited end-uses or end-users.” “We cannot allow our adversaries to misuse and abuse technology to commit human rights abuses and other acts of oppression,” said Assistant Secretary of Commerce for Export Enforcement Matthew S. Axelrod.

“That’s why we’re committed to preventing bad actors from siphoning off our technology. We will take an all-tools approach to combat this threat, including through the actions announced today and the newly-formed Disruptive Technology Protection Strike Force.” The text of the rule, which includes the list of all entities, released today is available on the Federal Register’s website here: https://www.federalregister.gov/public-inspection/2023- 04558/additions-and-revisions-of-entities-to-the-entity-list. The effective date is March 2, 2023. 

Additional Information on Today’s Entity Listings: Supporting Russia’s Military and/or Defense Industrial Complex: Three entities in Russia, Belarus, and Taiwan are being added based on information that they significantly contribute to Russia’s military and/or defense industrial base. PRC Military Modernization and Support for Sanctioned Parties in Iran: Eighteen entities based in the PRC are being added to the Entity List for acquiring and attempting to acquire U.S.- origin items in support of the PRC’s military modernization efforts, and for supplying or attempting to supply a sanctioned entity in Iran. Human Rights Violations: Six entities based in the PRC and Burma are being added for violations of human rights. 

The PRC entities have been engaged in the collection and analysis of genetic data, which poses a significant risk of contributing to monitoring and surveillance by the PRC government, including the targeting, detainment, and repression of ethnic minorities in the PRC as well as diversion of such information to PRC military programs. The Burmese entities provide surveillance equipment and services to Burma’s military regime, enabling it to carry out human rights abuses through the trafficking and identification of individuals, and the military’s continued repression of Burma’s people, including through surveillance and imprisonment. Ballistic Missile and Unsafeguarded Nuclear Activities: 

Fourteen entities based in the PRC and Pakistan are being added to the Entity List for contributing to ballistic missile programs of concern, including Pakistan’s missile program, and for involvement in unsafeguarded nuclear activities. Additional Background on the Entity List Process These BIS actions were taken under the authority of the Export Control Reform Act of 2018 and its implementing regulations, the Export Administration Regulations (EAR). 

The Entity List (supplement no. 4 to part 744 of the EAR) identifies entities for which there is reasonable cause to believe, based on specific and articulable facts, that the entities—including businesses, research institutions, government and private organizations, individuals, and other types of legal persons—that have been involved, are involved, or pose a significant risk of being or becoming involved in activities contrary to the national security or foreign policy interests of the United States.

 Parties on the Entity List are subject to individual licensing requirements and policies supplemental to those found elsewhere in the EAR. Entity List additions are determined by the interagency End-User Review Committee (ERC), comprised of the Departments of Commerce (Chair), Defense, State, Energy, and where appropriate, the Treasury. The ERC makes decisions regarding additions to, removals from, or other modifications to the Entity List. The ERC makes all decisions to add an entity to the Entity List by majority vote and makes all decisions to remove or modify an entity by unanimous vote. Additional information on the Entity List is available on BIS’s website at: https://bis.doc.gov/index.php/policyguidance/faqs.

For more information, visit www.bis.doc.gov.

Original source can be found here.