US Department of Commerce to publish first Military End User list naming over 100 Chinese and Russian companies

The U.S. Government has determined that these companies are ‘military end-users’ for purposes of the ‘military end-user’ control in the EAR that applies to specified items for exports, reexports, or transfers (in-country) to China, Russia, and Venezuela, when such items are destined for a prohibited ‘military end-user.’

US Department of Commerce to publish first Military End User list naming over 100 Chinese and Russian companies
US Department of Commerce to publish first Military End User list naming over 100 Chinese and Russian companies

US Department of Commerce to publish first Military End User list naming over 100 Chinese and Russian companies

The United States Bureau of Industry and Security (BIS) will amend the Export Administration Regulations (EAR) by adding a new ‘Military End User’ (MEU) List, as well as the first tranche of 103 entities, which includes 58 Chinese and 45 Russian companies.

The U.S. Government has determined that these companies are ‘military end-users’ for purposes of the ‘military end-user’ control in the EAR that applies to specified items for exports, reexports, or transfers (in-country) to China, Russia, and Venezuela, when such items are destined for a prohibited ‘military end-user.’

“This action establishes a new process to designate military end-users on the MEU List to assist exporters in screening their customers for military end-users,” said Commerce Secretary Wilbur Ross. “The Department recognizes the importance of leveraging its partnerships with the U.S. and global companies to combat efforts by China and Russia to divert U.S. technology for their destabilizing military programs, including by highlighting red flag indicators such as those related to Communist Chinese military companies identified by the Department of Defense.”

The MEU List informs exporters, re-exporters, and transferors that a license will be required to export, re-export, or transfer (in-country) designated items to listed entities. The U.S. Government has determined that these entities represent an unacceptable risk of use in or diversion to a ‘military end-use’ or ‘military end-user’ in China, Russia, or Venezuela.

Commerce is taking this action, which is scheduled to go on public display at the Federal Register on December 22, to respond to requests received from the public to identify specific ‘military end-users’ by name and address in the regulations. The MEU List supports the export community by identifying military end-users known to the U.S. Government, improving the effectiveness of military end-use and military end-user controls.

Importantly, this is a non-exhaustive list and does not imply that other parties not included on the list are exempt from regulatory prohibitions. For example, parties not listed on the MEU List but included on the Department of Defense’s Section 1237 list of the National Defense Authorization Act would raise a Red Flag under the EAR and require additional due diligence by exporters, re-exporters, or transferors.

While the initial MEU list includes 103 companies, additional parties may be added or deleted from the MEU List pursuant to a determination made by the End-User Review Committee, the interagency body composed of Commerce, and the Departments of Defense, Energy, State, and, where appropriate, the Treasury.

The list of all 103 entities to be added to the MEU List can be viewed on the United States Department of Commerce website.