The Commerce Department’s Bureau of Industry and Security (BIS) added two entities to the Entity List under seven entries for activities contrary to U.S. national security and foreign policy interests monday.
A US Controlled Canadian entity was found to have been involved in supporting online censorship and surveillance to target political actors and human rights activities in Egypt. The other is being added for diversion of U.S. items to a Chinese Entity Listed party.
“Today’s additions to the Entity List demonstrate that we will not hesitate to act to ensure that powerful, commercially available technologies aren’t being used contrary to our values, which include standing against censorship, surveillance, and repression.," said Under Secretary for Industry and Security Alan F. Estevez.
Two entities are being added to the Entity List under seven entries in multiple countries.
One entity operating in multiple destinations globally is being listed due to information that it supplies deep packet inspection technology to a foreign government, where it is used in mass web-monitoring and censorship to block news as well as target political actors and human rights activists.
The ERC determined to add Sandvine Incorporated, under the destinations of Canada, India, Japan, Malaysia, Sweden, and the United Arab Emirates to the Entity List.
Waterloo, Ontario based Sandvine supplies deep packet inspection technology to the Government of Egypt, where it is used in mass web-monitoring and censorship to block news as well as target political actors and human rights activists.
Sandvine is owned by San Francisco - based Francisco Partners, which most recently bought The Weather Company from IBM.
Another entity is based in the People’s Republic of China (PRC) and is being added for acquiring and attempting to acquire U.S.-origin items on behalf of a party on the Entity List.
The ERC determined to add Chengdu Beizhan Electronics Co. Ltd., to the Entity List under the destination of China for acquiring and attempting to acquire U.S.-origin items on behalf of the University of Electronic Science and Technology, an entity on the BIS Entity List.
As a result of this rule, any transactions with these entities that involve items subject to the Export Administration Regulations (EAR) will require a license from the BIS, and applications for those licenses are likely to be denied.
The text of the rule released, which includes the list of entities, is available on the Federal Register’s website here. The effective date for the rule is February 26, 2024.
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