BIS Confirms: Entity List Restrictions Apply to All Parties, Including Freight Forwarders and Purchasers

On August 20, 2020, the Bureau of Industry and Security (BIS) will publish a final rule confirming that the Entity List licensing requirements apply to all transactions in which a listed party plays a role – including where the listed party is the ultimate consignee, end-user, purchaser, or intermediate consignee. The new rule formally codifies longstanding BIS policy on the scope of the Entity List’s requirements, which generally prohibit exports, reexports and in-country transfers of items subject to the Export Administration Regulations (EAR) that involve a party on the Entity List without a license.

Prohibited party screening programs should screen every party to a transaction to properly identify shipments that implicate the Entity List’s restrictive controls.