October 1,
1997
Entities of proliferation concern listed
in
Since February of this year, the Federal Register has published several Commerce
Department
rules which added entities to the Entity List, a listing of foreign end users involved in
proliferation activities. The Entity List is based on the Enhanced Proliferation Control Initiative
(EPCI), which has been implemented in the Export Administration Regulations. General
Prohibition Five of the EAR prohibits exports to certain end-users or end-uses without a license.
BXA maintains, in the form of Supplement 4 to the Part 744, an "Entity List" to provide notice
informing the public of certain entities subject to such licensing requirements.
These end users have been determined to present an unacceptable risk of diversion to
developing
weapons of mass destruction or the missiles used to deliver those weapons. Publishing this list
puts exporters on notice that any products sold to these end users may present concerns and will
require a license from the Bureau of Export Administration. While this list will assist exporters
in determining whether an entity poses proliferation concerns, it is not comprehensive. It does
not relieve exporters of the responsibility to determine the nature and activities of their potential
customers using BXA's
Know Your Customer
and
Red Flags guidance.
Interagency groups involved in the export control process reviewed the activities of the
published entities of concern and determined that exports to these entities would create an
unacceptable risk of use in or diversion to prohibited proliferation-related activities.
Publishing this entities list allows the U.S. government to identify for U.S. businesses some
of the organizations and companies that may be involved in proliferation activities.
The development of a list of entities of concern arises from the EPCI initiative begun in
1990
to stem the spread of missile technology as well as nuclear, chemical and biological weapons.
Under EPCI the Commerce Department can impose licensing requirements on exports and
reexports of normally uncontrolled goods and technology where there is an unacceptable risk of
use in or diversion to activities related to nuclear, chemical or biological weapons or missile
proliferation, even if the end user is not primarily weapons-related.
The Bureau of Export Administration requires an export license for otherwise uncontrolled
items subject to the Export Administration Regulations before allowing shipments to these end
users because of risk use in or diversion to prohibited proliferation activities.
The Export Administration Regulations (EAR) provide that the Bureau of Export
Administration may inform exporters, individually or through amendment to the EAR, that
a license is required for exports or reexports to certain entities. The EAR contains a list of
such entities, known as the entities list.
ENTITY LIST
This Supplement lists certain entities subject to license requirements for specified items
under
this part 744 of the EAR. This list of entities is revised and updated on a periodic basis in this
Supplement by adding new or amended notifications and deleting notifications no longer in
effect.
For questions about the list contact Cheryl Suggs 202-482-3298
Supplement No. 4 to part 744 of the
Export Administration
Regulations.
(Supplement No. 4, Part 744)
(October 1, 1997)