Bureau of Industry and Security (BIS) added 26 entities to the Entity List, while giving relief to one Canadian firm for substantive reforms to its business practices.
Under the destinations of the People’s Republic of China (PRC) (6), Egypt (1), Pakistan (16), and the United Arab Emirates (UAE) (3), the additions are related to alleged violations of export controls, involvement in weapons programs of concern, and evasion of U.S. sanctions and export controls on Russia and Iran.
Nine of the entities under the destination of Pakistan were added for acting as front companies and procurement agents for the Advanced Engineering Research Organization, a Pakistan-based company added to the Entity List in 2014. The remaining 7 Pakistani entities were added for contributions to Pakistan’s ballistic missile program.
Three entities under the destination of the UAE and one under the destination of Egypt were added for acquiring and attempting to acquire U.S.-origin parts to evade U.S. sanctions and export controls imposed following Russia’s full-scale invasion of Ukraine in February 2022.
Six entities under the destination of the PRC were added for
This rule also removes two entities from the Entity List following new information received and reviewed by the interagency End-User Review Committee, chaired by BIS and in which the Departments of Defense, State, and Energy participate.
Heifi, an entity listed under the destination of the PRC, has been removed following its dissolution.
Sandvine Incorporated, an entity listed under the destinations of Canada, India, Japan, Malaysia, Sweden, and the UAE, has been removed following significant reforms to address and prevent the misuse of its technology in ways that undermine democracy and abuse human rights.
The removal of Canada-based Sandvine Incorporated from the Entity List in light of changes the company has made to its corporate governance and business practices.
Sandvine was added to the Entity List in February 2024 after its products were used to conduct mass web-monitoring and censorship and target human rights activists and dissidents, including by enabling the misuse of commercial spyware. [11825]
The Company "has since taken significant steps to address the misuse of its technology that can undermine human rights," according to Commerce Department statement.
"Over the past several months, Sandvine has overhauled its corporate structure, leadership, and business model,," the statement continued.
"The company has pivoted to focus on servicing democracies committed to the protection of human rights. Sandvine’s actions include, amongst others: exiting non-democratic countries, with 32 already exited and an additional 24 countries in process; fostering deeper relationships with civil society; dedicating profits to the protection of rights; adding human rights experts to its new leadership team; vetting business decisions through the newly created Business Ethics Committee; and closely monitoring technology misuse in countries in which they plan to remain."
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“Recognizing when a company has changed its behavior to protect national security and human rights is just as critical as restricting trade with parties of concern,” said Principal Deputy Assistant Secretary of Commerce for Export Administration Matthew Borman. “Sandvine’s delisting is a clear example of how the Entity List may be used to shape corporate behavior in favor of human rights and digital safety.”
"Starting in 2025, we will operate under a new name that reflects our leadership in protecting digital rights," the company said in a statement.
"While we will not ignore what has happened in the past, we are eager for a new brand that customers and the public will come to know as a leader in the way companies can shape their business and governance to promote a free, reliable, and accessible internet."
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