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BIS Adds 13 Chinese Companies to Unverified List

December 20, 2023 by Ian Cohen|Top News

The Bureau of Industry and Security this week added 13 Chinese companies to its Unverified List after it was unable to verify the “legitimacy and reliability” of the entities through end-use checks, including their ability to responsibly receive controlled U.S. exports. If BIS is unable to complete an end-use check on those companies within 60 days, it can move them to the more restrictive Entity List.

The additions, outlined in a final rule effective Dec. 19, include various technology and logistics companies in Beijing, Tianjin, Guangzhou, Xiamen, Jiangsu and elsewhere in China. Some are involved in the manufacture or development of electronics or advanced technologies, such as Plexus Co. and Beijing Jin Sheng Bo Yue Technology, while at least one -- Ningbo MOOF Trading Co. -- is a freight transportation firm.

The companies and parties aren’t subject to additional export license requirements but are no longer eligible for license exceptions, and all current exceptions will be suspended. Suppliers to those entities must also obtain a statement from the UVL party that certifies, among other things, that the party won’t use the shipment for any activity prohibited by the Export Administration Regulations. Exporters must also file Electronic Export Information in the Automated Export System for all exports of “tangible items” subject to the EAR if the transactions involve parties on the UVL.

All exports that no longer qualify for a license exception as a result of this rule and that were aboard a carrier to a port as of Dec. 19 may proceed to their destinations under the previous eligibility as long as the items have been exported before Jan. 18, BIS said. Any items not exported before midnight Jan. 18 will be subject to UVL-related restrictions.

The UVL additions come a little more than a year after BIS announced a policy change that allows it to move a company from the UVL to the more restrictive Entity List if the agency can’t complete an end-use check within two months (see 2211170069 and 2210070006). BIS has since said China has been more receptive to U.S. end-use checks on Chinese entities (see 2212060059).

The new UVL companies are: