The State Department's Bureau of Nonproliferation announced on May 16, 2002 that several companies in Armenia, China, and Moldava are being partially embargoed from U.S. trade and other business activities because of shipments to Iran of controlled equipment and technology. The named Chinese entities are particularly significant because they are important customers of many U.S. exporters.
Effective May 9, 2002, the entities listed below are barred from selling any goods or services to the U.S. Government. They are also barred from receiving any assistance from the U.S. Government. No Munitions List items may be sold to them by the U.S. Government, and no new licenses for any items subject to the Export Administration Regulations shall be issued. Moreover, all existing licenses under the Export Administration Regulations are suspended.
The persons and entities named are:
Lizen Open Joint Stock Company (Armenia) and any successor, subunit, or subsidiary thereof; Armen Sargsian (Armenia); Liyang Yunlong, aka Liyang Chemical Equipment Company (China), and any successor, sub-unit, or subsidiary thereof; Zibo Chemical Equipment Plant, aka Chemet Global Ltd. (China), and any successor, sub-unit, or subsidiary thereof; China National Machinery and Electric Equipment Import and Export Company (China) and any successor, sub-unit, or subsidiary thereof; Wha Cheong Tai Company (China) and any successor, sub-unit, or subsidiary thereof; China Shipbuilding Trading Company (China) and any successor, sub-unit, or subsidiary thereof; The China Precision Machinery Import/Export Corporation (China) and any successor, sub-unit, or subsidiary thereof; The China National Aero-Technology Import And Export Corporation (China) and any successor, sub-unit, or subsidiary thereof; Q.C. Chen (China); Cuanta, SA (Moldova) and any successor, sub-unit, or subsidiary thereof; Mikhail Pavlovich Vladov (Moldova).This notice raises serious questions of interpretation. Chief among them is the question whether the suspension of Commerce licenses was meant to include the export of items under applicable license exceptions or other categories (e.g., EAR 99) for which no license is required ("NLR"). Sources at State suggest that State meant to shut down all exports to the named entities, but Commerce indicates that it has no plans to add any of these entities to the sanctioned end-user lists (EAR 744, supp. 4). Commerce sources further advise that items eligible for export under applicable license exceptions or other categories for which no license is required may be shipped. Exporters should be aware, nevertheless, that they are chargeable with knowledge that an item may have a proliferation application, and therefore may fall under General Prohibition Five (EAR 736.2(b)(5) and Part 744).
For more information, please contact:
| Joseph F. Dennin - | Washington, D.C. - (202-496-7500) |
| Matthew J. McGrath - | Washington, D.C. - (202-496-7500) |
| John R. Liebman - | Los Angeles - (213-688-1000) |