MOFCOM Announces New Unreliable Entity List Sanctions
Source: | Author: Asia Compliance Forum | Publish time: 2024-05-20 | 805 Views | 🔊 Click to read aloud ❚❚ ▶ | Share:

Announcement of the Unreliable Entity List Working Mechanism on the Measures of the List of Unreliable Entities against Three U.S. Enterprises Including General Atomics Aeronautical Systems, Inc.


[Issued by] Security and Control Bureau

[Announcement No.] Announcement of the Unreliable Entity List Working Mechanism [2024] No. 1

[Date of Issuance] May 20, 2024

 

Unreliable Entity List Working Mechanism

Announcement

[2024] No. 1

 

1.        In order to safeguard China’s national sovereignty, security and development interests, and in accordance with the Foreign Trade Law of the People's Republic of China, the National Security Law of the People's Republic of China and other relevant laws, the Unreliable Entity List Working decides to add General Atomics Aeronautical Systems and General Dynamics Land Systems that have been involved in arms sales to the Taiwan region to the Unreliable Entity List and take the following sanction measures in accordance with Article 2, Article 8, Article 10 and other relevant provisions of the Unreliable Entity List Provisions:

 

(1)      Prohibiting the above entities from engaging in import and export activities related to China;

 

(2)      Prohibiting the above entities from making new investments in China;

 

(3)      Prohibiting the entry of senior management of the above entities;

 

(4)      Denying and revoking the work permits, stay or residence status of senior management personnel of the above entities within the territory of China.

 

2.        On February 16, 2023, the Unreliable Entity List Working Mechanism added Lockheed Martin Corporation and Raytheon Missiles & Defense on the List of Unreliable Entities and took relevant measures (for details, see the Unreliable Entity List Working Mechanism Announcement No. 1 [2023]). There is evidence that the Caplugs Company (Caplugs) has circumvented the Unreliable Entity List Provisions and other relevant regulations by transferring goods procured from China to entities on the Unreliable Entity List. In order to remind potential risk of transacting with entities desginated on the Unreliable Entity List through Caplugs, the relevant matters are announced as follows:

 

(1)     domestic enterprises conducting export business with Caplugs, must pay attention to and assess the risk of circumvention in violation of the law, perform due diligence, enhance the duty of care, strengthen the management of trade flows, and take appropriate ways to ensure that the relevant goods, technologies and/or services will not be transferred to foreign entities desginated on the Unreliable Entity List.

 

(2)     Caplugs must take measures as soon as possible to ensure that the relevant goods, technologies and services procured from China are not diverted to foreign entities on the Unreliable Entity List, and submit relevant supporting documents to the Office of the Unreliable Entity List Working Mechanism. Otherwise, the Unreliable Entity List Working Mechanism will take relevant measures against the company in accordance with the law.

 

Contact information of the Office of the Unreliable Entity List Working Mechanism:

 

Address: No. 2, East Chang'an Street, Dongcheng District, Beijing, China

Zip code: 100731

Email: agjasc@mofcom.gov.cn

 

Matters not covered in this announcement shall be addressed in accordance with the Unreliable Entity List Provisions.

 

This announcement shall be effective as of the date of publication.

 

Unreliable Entity List Working Mechanism

 

May 20, 2024



 

Announcement of the Unreliable Entity List Working Mechanism on Designation of Boeing Defense and Space & Security in the Unreliable Entity List


[Issued by] Security and Control Bureau

[Announcement No.] Announcement of the Unreliable Entity List Working Mechanism [2024] No. 2

[Date of Issuance] May 20, 2024

 

Unreliable Entity List Working Mechanism

Announcement

[2024] No. 2

 

In order to safeguard China’s national sovereignty, security and development interests, and in accordance with the Foreign Trade Law of the People's Republic of China, the National Security Law of the People's Republic of China and other relevant laws, the Unreliable Entity List Working Mechanism decides to add Boeing Defense and Space & Security, which are involved in arms sales to the Taiwan region, to the Unreliable Entity List and take the following sanction measures in accordance with Article 2, Article 8, and Article 10 of the Unreliable Entity List Provisions:

 

1.        Prohibiting the above entities from engaging in import and export activities related to China;

 

2.        Prohibiting the above entities from making new investments in China;

 

3.        Prohibiting the entry of senior management personnel of the above entities;

 

4.        Deny and revoke the work permits, stay or residence status of the senior management personnel of the above entities in China;


5.     Imposing fines that are twice the amount of the value of arms sales to Taiwan since the implementation of the Unreliable Entity List. The above entities shall pay the fine within 15 days from the date of publication of this announcement in accordance with relevant laws and regulations. If they fail to pay the fines within the above timeframe, the Unreliable Entity List Working Mechanism will take measures such as imposing additional fines in accordance with the law.

 

Matters not covered in this announcement shall be addressed in accordance with the Unreliable Entity List Provisions.

 

This announcement shall be effective from the date of publication.

 

Unreliable Entity List Working Mechanism

 

May 20, 2024