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BIS Removes Canadian, Chinese, UAE Companies From Unverified List

The Bureau of Industry and Security last week removed three companies from the Unverified List after it was able to successfully complete end-use checks.

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The decision, announced in a final rule effective Jan. 19, removes Canada-based drone maker Skymount Drones, China-based electronics company Plexus (Xiamen) Co., Ltd. and United Arab Emirates-based marine supply company Delma Industrial Supply & Marine Services from the list. BIS said it was able to verify the "bona fides" of all three companies to responsibly receive U.S. export-controlled items.

The move comes after BIS in December removed four Chinese companies from the UVL after it was also able to complete end-use checks (see 2312150029). The list doesn't subject companies to additional export license requirements, but it does make them no longer eligible for license exceptions. Suppliers to those entities also must obtain a statement from the UVL party that certifies, among other things, that the party won’t use the shipment to violate export controls.

BIS officials said they have seen better cooperation from China on its end-use checks since a 2022 policy change that allowed the agency to begin moving companies from the UVL to the Entity List if it's unable to conduct an end-use check on those entities within 60 days (see 2210070006 and 2212060059).