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This week, the U.S. Department of Commerce formally named 103 Chinese and Russian companies to its new Military End User (“MEU”) List. A long time in the publication and release process, the MEU List identifies entities that the U.S. Government has determined represent “an unacceptable risk of use in or diversion to a ‘military end use’ or ‘military end user’ in China, Russia, or Venezuela.” With the U.S. Government’s action this week, a license will be required to export, reexport, or transfer (in-country) designated items to entities on the MEU List.
Monday, December 28, 2020
On December 23, 2020, the U.S. Department of Commerce Bureau of Industry and Security (BIS) issued the anticipated list of designated military end users (MEU List) under Section §744.21 (MEU Rule) of the Export Administration Regulations (EAR) Restrictions (
see Federal Register notice). This MEU List provides a first tranche of over 100 designated military end users from China and Russia. Per Commerce Secretary Wilbur Ross, 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 (
see link).
Most of the Chinese entities on the MEU List are in the aerospace industry, including seven subordinate institutions of Aviation Industry Corporation of China (AVIC) and eight subordinate institutions of Aero-Engine Company of China. Despite initial press reports, the MEU List does not include Commercial Aircraft Corporation of China (COMAC). MEU L
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The 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 the 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 U.S. and global companies to combat efforts by China and Russia to divert U.S. technology for their destab
[co-author: Oscar Theblin]
On December 21, the Bureau of Industry and Security (BIS) published a Military End User (MEU) list to further implement the military end user/end use (MEU) rule defined in Section 744.21 of the Export Administration Regulations (EAR). An EAR license is required to export or reexport to the listed entities a broad range of items subject to U.S. jurisdiction.
The list, which had been the subject of public reports last month, represents a first tranche of 103 entities with 58 from China and 45 from Russia. A majority of the entities listed are in the aerospace industry, although other industries are also represented. Additional parties may be added or removed from the list as further determinations are made by the End-User Review Committee, an interagency body comprised of the Departments of Commerce, Defense, Energy, State, and Treasury. The list is not exhaustive, and exporters must still conduct due diligence on other end users to determine whether an exp
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Yesterday, the Bureau of Industry and Security (BIS) announced that it will create a new “Military End-User List” (MEU List) to help exporters comply with the recently expanded military end-use and end-user restrictions (MEU Rule) that apply to exports of certain items to China, Russia, and Venezuela. The current MEU List includes 103 entities from China and Russia, although the list is designed to be dynamic and will change over time. The MEU List will be included in a revised Supplement No. 5 to Part 744.
When the MEU Rule was implemented, it created significant due diligence burdens for the exporting community, because it was incumbent on those companies to determine whether certain entities in China, Russia and Venezuela would qualify as “military end-users.” Although the publication of the MEU List will reduce that burden somewhat, the MEU List is non-exhaustive and BIS stated that an entity’s exclusi