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General Questions
Listed Entities and Their Affiliates, Subsidiaries and Parents
Transactions Other than Exports, Reexports or Transfers (in-country) With Listed Entities
Other Lists to Check
Recent Rules
The Bureau of Industry and Security publishes the names of certain foreign persons – including businesses, research institutions, government and private organizations, individuals, and other types of legal persons - that are subject to specific license requirements for the export, reexport and/or transfer (in-country) of specified items. These persons comprise the Entity List, which is found at Supplement No. 4 to Part 744 of the Export Administration Regulations (EAR). On an entity by entity basis, the persons on the Entity List are subject to licensing requirements and policies supplemental to those found elsewhere in the EAR.
2. What is the background and purpose of the Entity List?
BIS first published the Entity List in February 1997 as part of its efforts to inform the public of entities that have engaged in activities that could result in an increased risk of the diversion of exported, reexported and transferred (in-country) items to weapons of mass destruction (WMD) programs. Since its initial publication, grounds for inclusion on the Entity List have expanded to activities sanctioned by the State Department and activities contrary to U.S. national security and/or foreign policy interests.
3. Where can I find the Entity List?
The Entity List is found in Supplement No. 4 to Part 744 of the Export Administration Regulations (EAR) (15 C.F.R. Part 744, Supp. No. 4). The most recent version of the EAR can be found here and the Entity List can be accessed here. If you would like to subscribe to BIS’s e-mail notification service that will alert you when BIS publishes rules in the Federal Register, including rules implementing changes to the Entity List, please click here.
4. Why should I check the Entity List?
You should check the Entity List because exports, reexports and/or transfers (in-country) to those persons named on the Entity List are subject to licensing requirements and policies in addition to those elsewhere in the Export Administration Regulations (EAR). Failure to adhere to the EAR’s licensing requirements is a violation of the EAR and could result in criminal and/or civil penalties. BIS recommends that exporters screen the parties to transactions against the Entity List as a standard part of pre-export due diligence activities.
5. Can a U.S. company have any dealings with a listed entity?
Yes. However, BIS considers that transactions of any nature with listed entities carry red flagand recommends that U.S. companies proceed with caution with respect to such transactions. Note that the Entity List describes license requirements and policies for the export, reexport and/or transfer (in-country) of items subject to the EAR only. Additionally, although many of the persons included on the Entity List are subject to policies of denial for the export, reexport and/or transfer (in-country) of all items subject to the EAR, some are subject to policies and requirements that are narrower in scope (i.e., not all persons included on the Entity List are subject to license requirements for all items subject to the EAR – some are subject to license requirements only for certain items on the Commerce Control List (“CCL”) – or to license policies of case-by-case review). Be sure to review the licensing policy and requirements carefully.
6. Are U.S. companies prohibited under the EAR from doing business with specific entities that are not included on the Entity List?
U.S. persons should be aware of the obligations of § 744.6 of the EAR which describe the general prohibitions placed by BIS on U.S. person activities specific to involvement in nuclear, missile and/or chemical and biological weapons programs and include but are not limited to exports, reexports and transfers (in-country) of items for use in such programs.
Additionally, BIS recommends that exporters, reexporters or persons transferring (in-country) items review the Denied Persons List (DPL), as well as other U.S. Government lists of sanctioned persons to ensure that your proposed transaction does not violate other requirements. In summary, exporters, reexporters or persons transferring (in-country) items should exercise due diligence to ensure that any dealing they have with a listed entity complies with all relevant policies and laws, including compliance with relevant licensing requirements for any listed entity. The U.S. Government’s lists of sanctioned persons, including the DPL, is found here.
7. What are the different types of license requirements for listed entities?
Each entity on the Entity List is assigned a specific licensing requirement on the basis of the foreign policy and national security considerations associated with the entity’s designation on the Entity List. Within the Entity List, the information for each Entity List designee (i.e., listed person) includes the license requirement, license review policy and Federal Register citation(s). License requirements vary from all items subject to the EAR, which includes items on the CCL and EAR99 items, to requirements specific to one or more Export Control Classification Numbers (ECCNs).
8. What is BIS’s policy for reviewing license applications that include listed entities as parties to the transaction?
BIS reviews license applications that include listed entities according to the entity’s role in the proposed transaction and the specific license review policy(ies) set forth for the entity(ies) on the Entity List. Note that while transactions outside of the scope of the license review policy for a listed entity are not prohibited, BIS considers that such transactions carry a red flag.
9. Are there any license exceptions available for listed entities?
EAR §744.1(c) prohibits the use of license exceptions for almost all exports and reexports to listed entities. If one or more license exceptions are available to a listed entity, the availability will be noted in the licensing requirements information specific to that entity.
10. How often is the Entity List updated?
The Entity List undergoes continual review and revision. All changes to the Entity List are published in the Federal Register. You can subscribe to a BIS e-mail notification service that will alert you to when EAR rules are published in the Federal Register, including rules implementing changes to the Entity List, by clicking here.
11. A company that used to be on the Entity List is no longer listed. Can I ship to them now?
The removal of an entity from the Entity List removes only the additional license requirements imposed by the entity’s listing on the Entity List, and does not modify the license requirements that may be applicable under the EAR as a result of an item’s classification on the CCL and the proposed country of destination for the export, reexport or transfer (in-country) of the item. Additionally, if you know or have been informed that the item proposed for export, reexport or transfer (in-country) will be used in a weapons of mass destruction or missile delivery system program, you must seek a license pursuant to the requirements found in part 744 of the EAR. You should also check the other lists maintained by BIS and other U.S. Government agencies to determine whether other license requirements or sanctions apply. In summary, you should conduct the same due diligence as you would for any other export, reexport or transfer (in-country) of items subject to the EAR.
12. What if a company I want to export to is at the same address as (e.g., co-located with) a listed entity?
This is a red flag and the exporter must undertake sufficient due diligence to verify that the company co-located with the listed entity is not, in fact, the listed entity and does not intend to transfer (in-country) the requested items to the listed entity
13. What if the name or address of the company I want to export to is a near match to a name or address on the Entity List?
As this is a red flag, BIS recommends that detailed due diligence be undertaken. You should conduct due diligence by checking other factors to determine if the company you want to export to is the same as a listed entity. Such factors may include, but are not limited to, the company’s name, address, corporate officers, business activities, contact information, etc. You may be able to locate this information via the company’s website or through Internet search results, company affiliations.
14. Can I export to a person on the Entity List if he/she is not located at the same address as listed in the EAR?
Persons on the Entity List are subject to the licensing policy and requirements defined in their specific entries on the Entity List regardless of their location. BIS works to revise and correct the entries on the Entity List on a regular basis, in order to ensure that each entry reflects the most accurate and recent information for the person named in that entry. However, if your due diligence indicates that the person to whom you wish to export, reexport or transfer (in-country) is designated on the Entity List, then, regardless of the address listed in the Entity List entry, you should follow the licensing requirements set forth in the Entity List for that individual.
15. Are all of the persons on the Entity List included because they violated the Export Administration Regulations (EAR) by exporting, reexporting and/or transferring items subject to the EAR?
No, not all sections of Part 744 of the EAR (which defines the criteria for consideration for inclusion on the Entity List) require that a person’s alleged activity involve items subject to the EAR. Section 744.11, for example, requires that the person’s activities are contrary to U.S. national security and/or foreign policy interests but does not require that the activities involve the diversion of items subject to the EAR.
16. Is there an appeals process for listed entities? If so, how does it work?
Yes; this process was articulated in BIS’s August 2008 revision of the EAR titled “Authorization to Impose License Requirements for Exports or Reexports to Entities Acting Contrary to the National Security or Foreign Policy Interests of the United States.”
As a result of the August 2008 rule, §744.16 of the EAR defines the procedures that allow persons listed on the Entity List to submit a written request to the End-User Review Committee (ERC) that its entry be removed or modified. The party must provide a basis for the removal or modification. After a decision on the request is reached by the ERC, the BIS Deputy Assistant Secretary for Export Administration will provide the decision in a written response to the requesting party. The decision communicated to the party by the Deputy Assistant Secretary is final. BIS will publish any modifications to, or removals from, the Entity List resulting from appeals in the Federal Register. The time frame for appeals is 30 calendar days after the ERC’s receipt of the appeal (note that BIS conducts an internal review of all appeals prior to referral to the ERC).
Please note that if a party on the Entity List submits an appeal, it remains subject to the Entity List's licensing requirements while the appeal is being processed. In order for a party to be released from the additional licensing requirements imposed by being on the Entity List, two actions must occur: 1) the appeal must be approved by the ERC, and 2) a formal notice of the party's removal from the Entity List must be published in the Federal Register.
17. Does the Entity List include U.S. persons?
No, it does not.
18. Does BIS work with other U.S. Government agencies to administer the Entity List?
Yes. As set forth in Supplement No. 5 to part 744 of the EAR, proposed changes to the Entity List are reviewed and approved by the interagency End-User Review Committee (ERC). Comprised of representatives from the Departments of State, Defense and Energy, the ERC is chaired by a Commerce employee. In addition to the review of appeals, the ERC reviews the Entity List on an annual basis. Any ERC member agency may also recommend changes to the Entity List on an ad-hoc basis.
19. Who should I contact if I have more questions about the Entity List?
You should call the Office of Exporter Services at 202-482-4811 or email them a question at the website http://bis.doc.gov/forms/askacounselor.html. Pursuant to the guidance in §748.3 of the Export Administration Regulations (EAR), you may also submit an advisory opinion request.
20. What are the different types of license requirements for listed entities?
If the branch location is directly subordinate to the listed entity (i.e., is not a distinct company itself), the Entity List’s licensing requirements and policies are as applicable to the branch location as to its company headquarters. BIS considers branches and field offices that are not legally distinct from the company that is the listed entity to be integral parts of that company.
By contrast, separately incorporated subsidiaries are not considered part of the listed parent entity and are therefore usually not covered by the Entity List’s prohibitions. BIS recommends an extra level of due diligence to ensure that the subsidiary is not engaging in the activities that resulted in its parent’s inclusion on the Entity List and is a bona fide organization that is separate and distinct from its parent (i.e., is not merely a front or shell company for the parent). considers that there is a red flag on any transaction involving a listed entity. BIS recommends that exporters clarify the relationship between the subsidiary/affiliate that will receive the exported, reexported or transferred (in-country) item and the listed entity, as well as conduct other due diligence procedures before engaging in business activities with such persons.
21. 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 List’s 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 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 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.
22. Do the license requirements and policies in the Entity List also apply to the parent company if a subsidiary is a listed entity?
In most cases, Entity List license requirements apply only to the specific companies listed. The Entity List license requirements generally do not extend to parent or sister companies unless specified, although all of the other license requirements set forth in the EAR, including the end-use based restrictions in part 744 of the EAR, continue to apply. BIS recommends that the U.S. company conduct more detailed due diligence to clarify the nature of the parent/subsidiary relationship as well as the end-use of the requested items. Note that BIS considers that there is a red flag on transactions involving companies owned by listed entities and recommends that exporters undertake detailed due diligence.
23. Can I use a company that is a listed entity as a freight forwarder? Can I use a listed entity as the freight carrier transporting my shipment?
The licensing policies and requirements cited on the Entity List extend to the export, reexport and transfer (in-country) of items subject to the EAR to the persons included on the Entity List. Therefore, a transaction that does not extend to an export, reexport or transfer (in-country) is not covered by the Entity List’s policies and requirements. However, BIS considers that a transaction such as the use of a listed entity as a freight forwarder or freight carrier carries a red flag red flag and suggests that you exercise caution and strong oversight if you opt to engage a listed entity for these services. Although the freight forwarder or freight carrier may not be the end-user of the good you are exporting, reexporting or transferring (in-country), the freight forwarder/carrier will likely have access to the product being exported, reexported and/or transferred (in-country), thereby increasing the chance that the item you are shipping will be diverted. Further, BIS recommends checking the other lists other lists of sanctioned persons maintained by the U.S. Government to ensure that your use of the listed entity as a freight forwarder/carrier does not violate sanctions or restrictions administered by other U.S. Government agencies.
24. If a person on the Entity List enters the United States, can I do business with that person?
BIS does not prohibit the sale or transfer of commodities subject to the EAR to persons on the Entity List if those persons are in the United States. However, the release of software source code or technology in the United States to a person on the Entity List or a person employed by or representing an organization on the Entity List may require a license as a “deemed export.” Should such a person depart the United States, a license will be required for the export of items consistent with the entity’s listing on the Entity List. In addition, if at the time of the domestic sale or transfer in the United States, if the transferor or seller had “knowledge” that the person on the Entity List or a person employed by or representing an organization on the Entity List intended to export the item out of the United States without obtaining BIS authorization, that may be a violation of the EAR under §736.1(b)(10) (General Prohibition 10) and §764.2(e). BIS recommends that exporters exercise a high level of due diligence prior to entering into a transaction with any person on the Entity List, regardless of where that person is located. Note also that the release outside of the United States of software source code or technology subject to the EAR to a person on the Entity List or a person employed by or representing an organization on the Entity List may require a license or other EAR authorization prior to the “deemed reexport” of that software source code or technology.
25. Can a U.S. company import items from listed entities?
BIS does not have jurisdiction over the import of items into the United States. However, you should check other lists maintained by the U.S. Government as sanctions or other restrictions may apply to import transactions with the particular listed entity or from that particular country of import.
26. Can a listed entity act as my company’s sales agent?
Yes, if you can ensure that the entity acting as your agent does not have access to the items prohibited by the Entity List’s licensing requirements and policies. Note that BIS recommends that, as a red flag is associated with such transactions, you exercise caution and strong oversight if you opt to engage a sales agent that is, or is owned by, a listed entity. Note that the licensing requirements specified on the Entity List will apply if the sales agent has access to the restricted item being exported, reexported or transferred (in-country), including items that the sales agent would, in the normal course of business, use for product demonstrations. Further, you should check other lists maintained by the U.S. Government as sanctions or other restrictions may apply to transactions with the particular listed entity.
27. What is the relationship of the Entity List to other lists maintained by the U.S. Government?
The Departments of Commerce, State and the Treasury maintain separate lists for the purposes of the programs each administers because these programs have different purposes and are regulated under different authorities.
BIS maintains three lists: the Denied Persons List (DPL); the Unverified List; and the Entity List. The Entity List is described in detail in these FAQs and can be found here.
The DPL lists persons that have been denied export privileges; any dealings with persons listed on the DPL that violate the terms of their denial order would be a violation of the EAR. The DPL can be found here.
The Unverified List is a list of parties that have not cooperated with BIS during post-shipment verification checks. The presence of a party on the Unverified List in a transaction is a “red flag” that must be resolved before proceeding with the transaction. The Unverified List can be found here.
The Departments of the Treasury and State maintain other lists that should be checked before exporting, reexporting or transferring goods. These lists include the Specially Designated Nationals List (SDN), the Debarred List, and the lists of persons subject to Nonproliferation Sanctions. You can find links to these lists here.
28. What does it mean when BIS incorporates entities into the Entity List by reference?
The Entity List includes restrictions on exports, reexports, or transfers (in-country) to certain persons by reference, meaning that the EAR defines the licensing policy and requirements specific to such persons but does not necessarily include them as individual entries on the Entity List. These persons were designated in or pursuant to Executive Orders or other legal mechanisms. Examples of such persons include but are not limited to Specially Designated Global Terrorists (SDGTs), as referenced in § 744.12 of the EAR, and Specially Designated Terrorists (SDTs), as referenced in § 744.13 of the EAR.
In incorporating the lists maintained by other U.S. Government agencies by reference, BIS is clarifying the EAR licensing requirements and policies applicable to the entities on the other USG lists. BIS recommends that exporters, reexporters or transferers in-country check the other lists maintained by the U.S. Government when exporting, reexporting and/or transferring (in-country) items. To avoid duplication, exporters, reexporters or persons transferring in-country, in many cases, will not be required to also seek separate authorization from BIS, but persons should note that in some cases an EAR authorization may be required. See §§ 744.8, 744.12, 744.13, 744.14, 744.18, and 744.22 of the EAR for additional details. In other words, these EAR license requirements supplement those of the other U.S. Government agencies.
29. Is the Entity list the same as the Specially Designated Nationals and Blocked Persons (SDN) List?
No. The SDN List is published by the U.S. Department of the Treasury, Office of Foreign Assets Control (OFAC). The SDN list has different foreign policy objectives and legal requirements than the Entity List.
30. Is the Entity List the same as the Denied Persons List?
No. Although both the Denied Persons List (DPL) and the Entity List are administered by the Department of Commerce, they are separate lists. The DPL includes parties that have been denied export and reexport privileges. In contrast, the Entity List imposes specific license requirements for the export, reexport and transfer (in-country) of specified items to the persons named on it.
31. What were the highlights of BIS’s August 2008 rule “Authorization to Impose License Requirements for Exports or Reexports to Entities Acting Contrary to the National Security or Foreign Policy Interests of the United States”?
This rule, published on August 21, 2008, expanded the eligibility criteria for the addition of persons to the Entity List. This rule also explicitly stated that a party listed on the Entity List has the right to request that its listing be removed or modified, and set the procedures for such requests. (Additional information on the Entity List appeal process is found in Section 744.16 of the EAR.
The August 2008 rule allowed BIS to focus its export control efforts more closely on problematic recipients of items that are subject to the EAR, when those recipients do not meet the alternative criteria for inclusion on the Entity List (as defined in §§744.2, 744.3, 744.4, 744.6, 744.10, 744.17, 744.20 or 744.22 of the EAR). As a result of the rule, BIS and its interagency partners are able to conduct prior review and make appropriate licensing decisions regarding proposed exports, reexports, transfers (in-country) to such persons to the degree necessary to protect U.S. national security and foreign policy interests. Further, BIS is able to tailor license requirements and the availability of license exceptions for such persons without imposing additional license requirements that apply broadly to entire destinations or items. The rule also simplified the EAR by reducing the need to issue general orders that impose license requirements on specific parties, thereby reducing the number of EAR provisions that the public is required to review to determine license requirements under the EAR.