The Bureau of Industry and Security (BIS) has announced that it is issuing a Final Rule with a new list of 102 entities that the U.S. government believes are military end users (MEUs) for purposes of the military end use/user controls on exports, reexports, and in-country transfers to China, Russia, and Venezuela in 15 C.F.R. § 744.21. A pre-publication draft of the Final Rule is available and is scheduled for publication in the December 23 Federal Register. The Final Rule takes effect upon its publication.
Fifty-seven of these entities are in China and forty-five are in Russia. The new MEU List includes some recognized Chinese and Russian aerospace companies - such as AVIC, Harbin, Shenyang, Xi’an, MiG, Sukhoi, Tupolev, and United Aircraft Corporation – and some less well-known companies. It is anticipated that more entities will be added to the list over time. Exports to entities on the MEU List have additional license requirements and limited use of most license exceptions. Entities on the MEU List are not subject to a complete export ban, but they are subject to a “presumption of denial” license review policy.
Clients should note that the MEU List is not an exhaustive list. Any export that has or appears to have a military end use is a "red flag" and additional reviews need to be made before exportation. As an example, exports or sales to any company appearing on the Department of Defense’s Section 1237 list of the National Defense Authorization Act, should be treated as a "red flag."