U.S. Bureau Of Industry And Security Updates Unverified List
- May 30, 2018
- Posted by: Tahlia Townsend | Matthew E. Cvercko | Sean C. Koehle
- Category: Blog
Tahlia Townsend, Matthew E. Cvercko and Sean C. Koehler are attorneys in the International Trade Compliance practice at Wiggin and Dana LLP.
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.
Entities added to the UVL on May 17, 2018:
Laval Electronics, Laval, QC, Canada
Changhe Aircraft Industries Group. Jingdezhen City, Jiangxi Province, China
Xinjiang East Hope New Energy Company Ltd, XinJiang, China
Yantai Salvage Bureau, No. 100 Zhifudao East Road, Zhifu, Shandong, China
Simms Marine Group OU, Sergey Ivanov, Tallinn, Estonia
Net Logistics JVM OY, a.k.a. Net Logistic JVM OY, Helsinki, Finland; Kotka, Finland 48310
Andleeb Associates, Rawalpindi, Pakistan
Alliance EG Ltd., Saint Petersburg, Russia
Eltech Ltd., Saint Petersburg, Russia
MT Systems, Saint Petersburg, Russia
Romona Inc., Yuzhno-Sakhalinsk, Russia
FSUE Rosmorport Far Eastern Basin Branch, Vladivostok, Russia
Alsaroud General Trading, a.k.a. Alsaroud Ground Trading Company, a.k.a. Alsarroud General Trading LLC, Sharjah, UAE
GenX Middle East FZE, a.k.a. GenX Systems LLC, Dubai, UAE
TEM International FZC, Dubai, UAE