U.S. Bureau of Industry and Security Updates Unverified List

May 21, 2018 Advisory

On May 17, 2018, the U.S. Bureau of Industry and Security (BIS) updated the Export Administration Regulations (EAR) Unverified List (UVL), adding thirty-three entities and adding a new address for one individual currently on the list. The newly listed entities, which are listed below, include aircraft manufacturers, electronics manufacturers, universities, and logistics companies located in Canada, China, Estonia, Finland, Pakistan, Russia, and UAE. The entities were added on the basis that BIS could not verify their bona fides (i.e., legitimacy and reliability relating to the end use and end user of items subject to the EAR) through an end-use check. The BIS notice regarding the updates to the UVL can be found in 83 FR 22842 (May 17, 2018); the full UVL can be found in Supplement No. 6 to Part 744 of the EAR.

U.S. companies are not prohibited from engaging in export transactions with entities on the UVL, however, they must take extra caution when doing so. Specifically, for transactions involving parties on the UVL, the EAR (i) prohibits the use of license exceptions, and (ii) requires exporters to obtain a signed end use statement.

Companies should immediately confirm that their denied party screening software is programmed to detect the newly listed entities. Further, companies that intend to engage in transactions with any entity on the UVL should first implement processes to ensure compliance with the UVL restrictions and requirements set forth in Section 744.15 of the EAR. Failure to comply with these requirements, such as improperly using a license exception for a transaction with a listed entity or failing to obtain a UVL statement, is a violation of the EAR, and is subject to administrative sanctions including monetary penalties and denial of export privileges. Knowing violations are subject to criminal sanctions.

Wiggin and Dana's international trade compliance group has significant experience counseling clients on a variety of sanctions issues, including denied party screening and implementing safeguards for transactions involving parties listed on the UVL.

Entities added to the UVL on May 17, 2018:

Canada

Laval Electronics, Laval, QC, Canada
Services GP Tek, a.k.a. Nouvelle Option Montreal, QC, Canada

China

Changhe Aircraft Industries Group. Jingdezhen City, Jiangxi Province, China
Dandong Center for Food Control, Dandong, China
Institute of Geology, Chinese Academy of Geological, Beijing, China
Jiangxi Hongdu Aviation Ind. Group, Yaohu Nanchang, China
Jiujiang Jinxin Nonferrous Metals Co, Ltd., Jiujiang City, China
Liupanshui Normal University, Guizhou, China
Nanchang University, Nanchang, China
Shanxi Hemu Industrial Co., Ltd., Shanxi, China
Sino Superconductor Technology Company, a.k.a. Zongyi Superconductor Technologies Co. Ltd., a.k.a. SinoHTS, Beijing, China

Xinjiang East Hope New Energy Company Ltd, XinJiang, China

Yantai Salvage Bureau, No. 100 Zhifudao East Road, Zhifu, Shandong, China

Estonia

Simms Marine Group OU, Sergey Ivanov, Tallinn, Estonia

Finland

Net Logistics JVM OY, a.k.a. Net Logistic JVM OY, Helsinki, Finland; Kotka, Finland 48310

Pakistan

Andleeb Associates, Rawalpindi, Pakistan

Russia

Alliance EG Ltd., Saint Petersburg, Russia

Eltech Ltd., Saint Petersburg, Russia
Intercom Ltd., Saint Petersburg, Russia

MT Systems, Saint Petersburg, Russia
Radiofizika OAO, Moscow Russia.

Romona Inc., Yuzhno-Sakhalinsk, Russia

FSUE Rosmorport Far Eastern Basin Branch, Vladivostok, Russia
Sakhalin Energy Investment Company Ltd., Yuzhno-Sakhalinsk, Russia
SIC Dipaul, Saint Petersburg, Russia
Tavrida Microelectronics, Moscow, Russia
VIP Technology Ltd., Saint Petersburg, Russia

UAE

Alsaroud General Trading, a.k.a. Alsaroud Ground Trading Company, a.k.a. Alsarroud General Trading LLC, Sharjah, UAE
Chepstow FZE, Sharjah, UAE

GenX Middle East FZE, a.k.a. GenX Systems LLC, Dubai, UAE
Roudah Al Hayat General Trading FZE, a.k.a. Rudha Al Hayat General Trading, a.k.a. Rouda Al Hayat General Trading, a.k.a. JSB Logistics, Dubai, UAE

TEM International FZC, Dubai, UAE