U.S. Adds More Chinese Companies to Economic Naughty List
Published Date: 1/16/2025
Rule
Summary
The U.S. government just added 11 companies from China and updated one from India to a special watchlist called the Entity List because they might threaten national security. This means businesses now need special permission to trade with these entities, starting January 16, 2025. If you work with exports, get ready for tighter rules and possible delays or extra costs.
Analyzed Economic Effects
4 provisions identified: 2 benefits, 2 costs, 0 mixed.
11 Chinese Firms Added to Entity List
The Bureau of Industry and Security added 11 named companies located in China to the Entity List effective January 16, 2025. Exports, reexports, or transfers of any items subject to the Export Administration Regulations to these listed entities now require a license and the license review policy is a presumption of denial.
Three Indian Entities Removed from Entry
The Department of Atomic Energy entities 'Indian Rare Earths,' 'Indira Gandhi Atomic Research Center (IGCAR),' and 'Bhabha Atomic Research Center (BARC)' were removed from that Entity List entry effective January 16, 2025. As a result, a license is no longer required for exports to those three entities unless the export's end use is one of the activities listed in Section 744.2 of the EAR.
Exports to India Still Restricted for Nuclear End Uses
Even after removal of the three Indian entities, exporters must seek a license if they know or have reason to know the exported item will be used in the nuclear proliferation activities listed in Section 744.2 of the EAR. Because India is not in supplement no. 3 to part 744, these end-use restrictions apply to all end-users in India irrespective of Entity List status.
Grace Period for Shipments in Transit
Shipments that were en route aboard a carrier to a port of export, reexport, or transfer on January 16, 2025, may continue under the previous eligibility for License Exceptions or 'no license required' status if they are actually exported before February 18, 2025. Any such items not exported, reexported, or transferred by midnight on February 18, 2025, will require a license under this final rule.
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