Regulatory intelligence for US exporters

BIS Removes Chinese Companies, Others From Unverified List

The Bureau of Industry and Security this week removed 33 entities from its Unverified List -- including Chinese technology companies and universities -- after it was able to successfully complete end-use checks. The entities include 27 based in China, two in Pakistan and one each in Indonesia, Singapore, Turkey and the United Arab Emirates. The agency also removed two Russian entities from the UVL because it placed both on the more restrictive Entity List last year.

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The announcement, effective Aug. 22, came after a BIS policy change in 2022 that allows the agency to move companies from the UVL to the Entity List if BIS is unable to conduct an end-use check on those entities within 60 days (see 2210070006). BIS said it has since seen better cooperation from China (see 2212060059), allowing BIS agents to verify the “legitimacy and reliability” of companies receiving items subject to the Export Administration Regulations (see 2306010044).

Before the policy change, "requested end-use checks in the [People’s Republic of China] had been met with lengthy scheduling delays,” the agency said in a news release. But the policy change “led directly to the scheduling of end-use checks in the PRC.” BIS added that “today’s announcement is a further reflection of the policy’s success in getting end-use checks scheduled.”

The removals include a host of Chinese companies and institutions operating in the country’s technology and research sector, such as Beijing Zhonghehangxun Technology, Jialin Precision Optics, Sino Superconductor Technology and Hunan University. The announcement shows the “concrete benefit companies receive when they or a host government cooperates with BIS to complete a successful end-use check,” said Matthew Axelrod, top export enforcement official at BIS. See the notice for a full list of removals.

BIS also removed Russia-based OAO Radiofizika and Voentelecom JSC from the UVL to reflect the agency’s decision to add both to the Entity List in June 2022 (see 2206030012). BIS listed both as Russian military end-users.