U.S. Commerce Department Removes 33 Parties from Unverified List
On August 21, 2023, the U.S. Commerce Department’s Bureau of Industry and Security (BIS) announced that 33 parties will be removed from the Unverified List, 27 of which are based in the People’s Republic of China (PRC). The removals become effective upon publication on August 22, 2023. This move comes after the successful completion of meticulous end-use checks, a crucial process aimed at ensuring that sensitive goods are not diverted to unauthorized destinations or purposes.
As mentioned above, the Unverified List comprises parties for which the government has been unable to verify the legitimacy of transactions involving controlled items. These items, often with national security implications, require stringent monitoring to prevent misuse. The end-use checks, which involve thorough investigations into the actual destinations and intended purposes of controlled items, were carried out by the BIS in collaboration with various international partners.
BIS is taking this action because it was able to establish the bona fides – i.e., legitimacy and reliability relating to the end use or end user of items subject to the Export Administration Regulations (EAR) – of these parties through the successful completion of end-use checks. The entities' removal from the Unverified List also paves the way for smoother trade operations.
