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The U.S. Department of Commerce plans to add five Chinese entities to the entity list

iconJun 24, 2021 09:35
Source:SMM

(BIS) of the US Department of Commerce's Industrial Security Bureau plans to issue the final rules in the Federal Gazette on June 24, 2021, local time, adding the following five Chinese entities to the entity list (Chinese names are for reference only):

Hoshine Silicon Industry (Shanshan) Co., Ltd.

(Hesheng Silicon Industry (Shanshan) Co., Ltd.)

Xinjiang Daqo New Energy, Co. Ltd

(Xinjiang Daquan New Energy Co., Ltd.)

Xinjiang East Hope Nonferrous Metals Co. Ltd.

Xinjiang Oriental Hope Nonferrous Metals Co., Ltd.

Xinjiang GCL New Energy Material Technology, Co. Ltd

Xinjiang Xiexin New Energy material Technology Co., Ltd.

Xinjiang Production and Construction Corps

Xinjiang production and Construction Corps.

Reasons for inclusion in the list

On the grounds of so-called "alleged human rights violations such as repression, mass detention, forced labor and high-tech surveillance of members of ethnic minorities", BIS found that the above five entities engaged in or promoted activities that violated the interests of US foreign policy, and added them to the list of entities.

License review policies and license exceptions

The export, re-export or transfer (within the territory) of items subject to EAR jurisdiction to these five entities requires a prior application for a license, and no licensing exceptions apply.

Specifically, the "case-by-case review" (case-by-case) policy will apply to BIS for the following items:

ECCN is encoded as items of 1A004.c, 1A004.d, 1A995, 1A999.a, 1D003, 2A983, 2D983 and 2E983.

ECCN 1A995 Notes EAR99 items described in (Note) (personal consumer goods or medical products used to protect biochemical agents, such as protective clothing, foot covers, masks, etc.);

Items under the jurisdiction of EAR that are necessary for the detection, diagnosis and treatment of infectious diseases.

For other items subject to EAR, BIS will apply the license review policy of "presumptive refusal" (presumption of denial).

Exclusion clause

Items that have been disqualified from licensing exceptions as a result of this measure, or items that can be exported or re-exported without a license may continue to be delivered to a foreign destination on the basis of an actual order for export, re-export or transfer (within) to a foreign destination on a means of transport en route to an export, re-export or transfer (domestic) port as at the date of promulgation of these final rules.

Effective date

These final rules will enter into force on the date of publication of the Federal Gazette.

Prompt

BIS's move is likely to be a discriminatory restriction on interference in China's internal affairs covered by Article 3 of the Anti-Foreign sanctions Law. The relevant enterprises should pay attention to the provisions of Article 12 of the Anti-Foreign sanctions Law that they shall not implement or assist in the implementation of foreign discriminatory restrictions.

For queries, please contact Lemon Zhao at lemonzhao@smm.cn

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