On November 26, 2021, the Bureau of Industry and Security (BIS) published a Final Rule amending the Export Administration Regulations (EAR) by adding 27 new entries to the Entity List, effective immediately. The U.S. Government determined that these entities, located in China, Japan, Pakistan, and Singapore, are acting contrary to the United States’ national security and foreign policy interests. Specifically, according to a Commerce Department press release, eight Chinese technology entities were added in furtherance of the United States’ efforts to prevent U.S. emerging technologies from being used for China’s quantum computing efforts that support military applications. Additional entities operating in Pakistan and China were added based on their contributions to Pakistan’s unsafeguarded nuclear activities and ballistic missile program. Further, the rule adds an entity in Russia to the Military End-User (MEU) list. Finally, the rule makes some minor revisions to existing entity entities by adding additional addresses for one entity and clarifying the name of an alias for another entity.

Entity List Additions

By adding the following entities and individuals to the Entity List, BIS restricts the export, reexport, and transfer (in-country) of items subject to the EAR to these persons. The EAR imposes license requirements on, and limits the availability of most licenses exceptions for, exports, reexports, and transfers (in-country) to these 27 entities. All 27 additions are subject to a license review policy of a presumption of denial.

The Final Rule adds the following individuals and entities to the Entity List:

• Three affiliates of Corad Technology Limited, an Entity List entity since August 14, 2019, due to their involvement in sales of technology from the United States to Iran’s military and space programs, North Korean front companies, and Chinese government and defence industry subordinate entities

  • Corad Technology (Shenzhen) Ltd., listed under destination of China,

  • Corad Technology Pte Ltd., listed under destination of Singapore, and

  • Corad Technology Japan K.K., listed under destination of Japan

• Five entities due to their support for the military modernization of the People’s Liberation Army, all listed under destination of China

  • Hangzhou Zhongke Microelectronics Co., Ltd.,

  • Hunan Goke Microelectronics,

  • New H3C Semiconductor Technologies Co., Ltd.,

  • Xi’an Aerospace Huaxun Technology, and

  • Yunchip Microelectronics

• Three entities for acquiring and attempting to acquiring U.S.-origin items in support of military applications, all listed under destination of China

  • Hefei National Laboratory for Physical Sciences at Microscale,

  • QuantumCTek Co., and

  • Shanghai QuantumCTeck Co., Ltd.

• Three entities due to their contributions to Pakistan’s unsafeguarded nuclear activities, all listed under destination of China

  • Shaanxi Zhi En Electromechanical Technology Co., Ltd.,

  • Poly Asia Pacific Ltd. (PAPL), and

  • Peaktek Company Ltd.

• Eight entities due to their contributions to Pakistan’s unsafeguarded nuclear activities, all listed under destination of Pakistan

  • Q&N Traders,

  • U.H.L. Company,

  • Jiuding Refrigeration & Air-conditioning Equipment Co (Pvt) Ltd,

  • K–SOFT Enterprises,

  • Seljuk Traders (SMC-Private) Limited,

  • Global Tech Engineers,

  • Asay Trade & Supplies,

  • Jade Machinery Pvt. Ltd., and

  • Al-Qertas

• An entity due to its contributions to Pakistan’s ballistic missile program, listed under destination of Pakistan

  • Broad Engineering (Pakistan)

• An entity and two of its employees for procuring items subject to the EAR on behalf of Techlinks, an Entity List entity since September 2018, without acquiring the required licenses, all listed under destination of Pakistan

  • Prime Tech

  • Muhammad Ashraf

  • Muhammad Farrukh

Military End-User Additions

The MEU List identifies entities that have been determined to be military end users under Section 744.21 of the EAR. A license is required for exports, reexports, and transfers (in-country) to the MEU List entities of items subject to the EAR listed in supplement no. 2 to part 744, and BIS will review those licenses with a presumption of denial. No license exceptions are available for exports, reexports, or transfers to these entities of items subject to the EAR listed in supplement no. 2 to part 744, except for License Exception GOV.

The End-User Review Committee (ERC) added the Moscow Institute of Physics and Technology to the MEU List under the destination of Russia due to its production of military end-use products for a military end-user.

Entity List Revisions

The ERC added addresses under the entry for Corad Technology Limited to direct the public to the Corad Taiwan Representative Office’s addresses in Taiwan. Further, the ERC added a reference to the Corad Taiwan Representative office and its addresses under the destination of Taiwan.

Additionally, the ERC modified the entry for entity “Shenzhen Cobber Information Technology Com., Ltd.” The modification removes a semi-colon from one of the entities’ aliases to clarify its name should read “Shenzhen Kehao Information Technology Co., Ltd.”

Savings Clause

The Final Rule includes a Savings Clause that covers shipments that were en route aboard a carrier to a port of export, reexport, or transfer (in-country) pursuant to actual orders for export, reexport, or transfer (in-country) to or within a foreign destination on November 26, 2021. These shipments may proceed to their destination under the previous eligibility for a License Exception or export or reexport without a license (NLR).