I want to export, reexport or transfer (in-country) to a company that I know is partially owned by a listed entity. Do the Entity Lists licensing requirements and policies apply?
If you know or are informed that a company to which you want to export, reexport or transfer (in-country) is partially owned by a company on the Entity List, either by way of a joint venture or a direct equity stake, BIS recommends that you clarify the relationship between the entity and the company that the listed entity partially owns. If the listed entity controls the company as a result of its level of ownership and/or its involvement in the companys business activities, the Entity Lists licensing requirements and policies specific to the listed entity apply to the company. If you are unable to ascertain the listed entitys level of control, you have the option of requesting an advisory opinion from BIS pursuant to 748.3 of the Export Administration Regulations (EAR). Regardless of the level of control, BIS considers that there is a red flag on transactions involving companies owned by listed entities and recommends that exporters undertake detailed due diligence.
If you know or are informed that a company to which you want to export, reexport, or transfer (in-country) is partially owned by a company on the Entity List, either by way of a joint venture or a direct equity stake, BIS recommends that you clarify the relationship between the entity and the company that the listed entity partially owns. If the listed entity controls the company as a result of its level of ownership and/or its involvement in the company’s business activities, the Entity List’s licensing requirements and policies specific to the listed entity apply to the company. If you are unable to ascertain the listed entity’s level of control, you have the option of requesting an advisory opinion from BIS, pursuant to §748.3 of the EAR. Regardless of the level of control, BIS considers that there is a “red flag” on transactions involving companies owned by listed entities and recommends that exporters undertake detailed due diligence.
Related Questions
- Which U.S. Government agency should I consult with if I want to export or reexport dual-use items to Iraq, or transfer such items within Iraq?
- Are there export controls on EAR items sent from a US company to its own subsidiary in a foreign country?
- What if a company I want to export to is at the same address as (e.g., co-located with) a listed entity?
