BIS Adds Chengdu Beizhan Electronics, Sandvine to Entity List

The Bureau of Industry and Security added a Chinese electronics company and a Canada-headquartered technology software company to the Entity List for trying to illegally acquire U.S. items or for being involved in other activities that are “contrary” to U.S. national security and foreign policy, the agency said Feb. 26. It also removed one United Arab Emirates-based entity from the Entity List.

BIS added China-based Chengdu Beizhan Electronics for trying to acquire controlled U.S.-origin items on behalf of Chengdu-based University of Electronic Science and Technology, which is already on the Entity List.

The agency also added Sandvine Inc., a company with locations in Canada, India, Japan, Malaysia, Sweden and the UAE, for supplying “deep packet inspection technology” to the Egyptian government, a tool to manage and inspect online network traffic. BIS said Egypt uses the technology in “mass web-monitoring and censorship to block news” and to target political actors and human rights activists.

Thea Kendler, the BIS assistant secretary for export administration, said the technology can "be used to engage in surveillance, censorship, and the targeting of activists." She added that “BIS is working tirelessly to protect human rights, and today’s action sends a clear message that we will not hesitate to stand up for American values.”

A Sandvine spokesperson didn’t respond to a request for comment. Chengdu Beizhan Electronics couldn’t be reached.

Effective Feb. 27, the companies are subject to license requirements for all items subject to the Export Administration Regulations, and licenses will be reviewed under a presumption of denial. All exports that now require a license but were aboard a carrier to a port as of Feb. 27 may proceed to their destinations under the previous eligibility as long as the items are exported before March 28, BIS said. Any items not exported before midnight March 28 will require a license.

BIS also removed UAE-based Jazirah Aviation Club from the Entity List based on a review conducted by the interagency End User Review Committee, the group tasked with making Entity List decisions. The U.S. added Jazirah Aviation Club to the list in 2018 after accusing it of helping to illegally procure U.S. items for another entity on the list.

The agency also modified two existing entries for two Chinese-based companies: Beijing China Aviation Technology Co., Ltd. and Rayscience Optoelectronics Innovation Co., Ltd. The changes add additional aliases and address information.