The Bureau of Industry and Security (BIS) announced today that 33 companies have been added to the Unverified List (UVL) [see Supplement 6 to Part 744 of the EAR]. The new additions include twelve companies in Russia, eleven in China, five in the United Arab Emirates, two in Canada and one each in Estonia, Pakistan, and Finland. As noted in previous blog postings, BIS adds persons to the UVL when they are unable to verify the bona fides of an entity through a pre-licensing or end use check. BIS often uses commercial officers in US embassies and Consulates as well as other US government officials to visit foreign entities that receive commodities, software, and technology subject to the EAR in order to confirm use of such items is in accordance and consistent with licensing terms and general EAR requirements. When such confirmation cannot be obtained, but no evidence exists of a violation that entity is typically listed on the UVL. US exporters do not have to completely cut off trade with firms listed on the UVL. However, such a listing should be viewed as a red flag requiring additional “beyond the normal level” of due diligence prior to proceeding with a transaction. In addition, transfers, exports or re-exports of items subject to the EAR to UVL listed entities are NOT eligible for use of any license exceptions (see Part 740 and 742 of the EAR). And for any transfers, exports or re-exports to UVL listed persons that are No License Required (NLR) transactions, the shipper/exporter must obtain a special signed UVL statement prior to transfer, export or re-export. Please contact TSI Global Consulting for further guidance on the required format for the UVL Signed Statement and general advice on how to conduct international business with UVL listed entities .
