BIS adds UK, UAE, China and South Africa companies to entity list

The US Department of Commerce’s Bureau of Industry and Security (‘BIS’) has, in a
final rule published 3 July, announced the addition of six entities in the People’s
Republic of China (PRC), South Africa, the United Arab Emirates (UAE), and the United
Kingdom, to its Entity List, and modified entries for two existing Entity Listed parties, ‘in
order’, it says, ‘to ensure that restrictions on exports to these entities are more targeted
and effective.’

The Final Rule explains that the US government’s End-User Review Committee (‘ERC’),
‘determined to add Global Training Solutions Limited and Smartech Future Limited,
both under the destination of China, Grace Air (Pty) Ltd. under the destination of South
Africa, and Livingston Aerospace Ltd., under the destination of the United Kingdom, to
the Entity List…because of their links to the Test Flying Academy of South Africa (TFASA)
and the training of China’s military forces using Western and North Atlantic Treaty
Organization (NATO) sources.’

It said that TFASA ‘was added to the Entity List on June 12, 2023 (88 FR 38739, June 14,
2023). This activity is contrary to the national security and foreign policy interests of the
United States under § 744.11 of the EAR.’

Additionally, it said, ‘The ERC determined to add two entities, Mega Fast Cargo LLC,
and Mega Technique General Trading, both under the destination of the UAE, to the
Entity List. These additions are being made because these entities repeatedly engaged
in dilatory or evasive conduct, including the provision of false, misleading, or
incomplete information, during end-use checks. In addition, Mega Fast Cargo LLC has
engaged in shipments of U.S.-origin commodities to Russia since Russia’s further
invasion of Ukraine in February 2022.’

Assistant Secretary for Export Enforcement Matthew S. Axelrod said, ‘Preventing
American know-how from training PRC military pilots and U.S. technology from aiding
Russia enhances U.S. national security…parties that support destabilizing military
modernization and evade our controls will face the consequences
of Entity List restrictions.’

See: https://public-inspection.federalregister.gov/2024-14635.pdf