United StatesEAR Entity List license requirement for listed parties
15 C.F.R. 744.11; Supp. No. 4 to part 744
In force.
An end user controls rule binding private bodies.
As of .
What it requires
- Before you export, reexport or transfer any item subject to the EAR, software included, check whether a party to the transaction is on the Entity List or uses an address the list identifies as a high diversion risk, and obtain the license the entry requires (15 C.F.R. 744.11(a); 748.5(c) to (f)).
- Do not use a license exception for a transaction with a listed party unless the Entity List entry allows it, and do not proceed with a transaction BIS has informed you needs a license because of a circumvention, agent, front or shell company risk (15 C.F.R. 744.11(a), (c)).
- Check whether a foreign entity you deal with is owned 50 percent or more by one or more listed entities; the extension in 15 C.F.R. 744.11(a)(1) is stayed until , as the eCFR's Effective Date Note records.
These lines are LexLint's reading of the law's text, as of .
If you get it wrong
Criminal exposureYes
Private right of actionNo
Criminal exposure note
A willful violation, attempt or conspiracy is punishable by a fine of up to $1,000,000 and, for an individual, imprisonment of up to 20 years, or both (50 U.S.C. 4819(b)).
Penalty structure
The statute sets the greater of $300,000 or twice the value of the transaction that is the basis of the violation; the amount coded is the inflation-adjusted maximum that Commerce publishes.
- Rule
- Per violation only
- As of
- Currency
- USD
- Per violation unit
- Violation
- Per violation amount
- 374,474
Who enforces it
Enforcement body
Department of Commerce, which imposes civil penalties through the Secretary of Commerce under 50 U.S.C. 4819(c); willful violations are criminal offenses under 50 U.S.C. 4819(b).
What it reaches
Obligation class
Prohibition, Licensing
Applicability criteria
- As of
- Combinator
- Any of
- Criteria
- A party to the transaction is an entity on the Entity List, or uses an address the list identifies as presenting a high risk of diversion.
- BIS has informed you that a license is required for the transaction because of a circumvention, agent, front or shell company risk.
- The foreign entity is owned, directly or indirectly, 50 percent or more by one or more listed entities, which 15 C.F.R. 744.11(a)(1) reaches once the stay on that paragraph ends (stayed until ).
What this law does
A license is required, to the extent the Entity List (Supplement No. 4 to part 744) specifies, to export, reexport or transfer (in-country) any item subject to the EAR, software included, when an entity on the list, or an entity using an address the list identifies as a high diversion risk, is a party to the transaction, and a license exception may be used only where the entry for that party allows it.
BIS may also inform a person that a license is required because of an unacceptable risk of circumvention of a listing or of use of an agent, front or shell company for a listed entity. The eCFR records the extension of the list to foreign entities that listed entities own, in paragraph (a)(1), as stayed until . The section's source is 87 FR 61973 of , and it has been amended since; the eCFR prints no commencement day.
When LexLint raises it
When your app profile says your app ships encryption, distributes a software product or ships a mobile app.