On March 24, 2023, the Department of Commerce, Bureau of Industry and Security published a list of thirty-two entities located in eleven countries that have been added to the Unverified List (Supplement 6 to Part 744 of the EAR). Entities are listed on the Unverified List (UVL) when U.S. government officials conducting pre or post licensing end user/end use checks are unable to verify the bona fides (i.e., legitimacy and reliability of the end user/end use) of an item subject to the EAR that will be or has been exported to a foreign party. The listing of an entity on the UVL raises concerns about the suitability of that entity with future exports due to risks associated with possible diversion to end users/end uses that are not authorized by BIS. Given that enhanced risk, while exports to UVL entities are not prohibited, the EAR does require certain actions be taken prior to exporting to UVL entities. Specifically:
- Under Part 740.2(a)(17) of the EAR you may not use any license exception for the export, re-export or transfer of an item subject to the EAR to an entity listed on the UVL.
- Under § 744.15(b) of the EAR, there is a requirement for exporters, re-exporters, and transferors to obtain (and maintain a record of) a UVL statement from a party or parties to the transaction who are listed on the UVL before proceeding with exports, reexports, and transfers (in-country) to such persons, when the exports, reexports and transfers (in-country) are not subject to a license requirement and,
- Export of any item subject to the EAR to an entity listed on the UVL requires a pre-shipment AES/EEI filing.
Be aware of the UVL. Screen all entities to your export, re-export or in-country transfer transactions including freight forwarders and other intermediaries as well as ultimate consignees and end users! And for audit trail purposes keep records of all screens in your export files. For further information and specific guidance on exporting to entities listed on the Unverified List (UVL) contact TSI Global Consulting.
