Regulate Footnote License For Free

Any entity with a footnote 1 designation in the license requirement column of the Entity List in Supplement No. 4 to part 744 of the EAR is a party to any transaction involving the foreign-produced item, e.g., as a ?purchaser,? ?intermediate consignee,? ?ultimate consignee,? or ?end-user.?

Section 744.11 imposes license requirements, to the extent specified in supplement no. 4 to this part on entities listed in supplement no. 4 to this part for activities contrary to the national security or foreign policy interests of the United States.

§ 744.16 Entity List. The Entity List (supplement no. 4 to part 744) identifies persons reasonably believed to be involved, or to pose a significant risk of being or becoming involved, in activities contrary to the national security or foreign policy interests of the United States.

(ii) a footnote 1 designated entity is a party to any transaction involving the foreign- produced item, e.g., as a ?purchaser,? ?intermediate consignee,? ?ultimate consignee,? or ?end-user.?

(1) Foreign persons who are parties to an export, reexport, and transfer (in-country) subject to the EAR may be added to the Unverified List if BIS or federal officials acting on BIS's behalf cannot verify the bona fides (i.e., legitimacy and reliability relating to the end use and end user of items subject to the EAR) ...

(2) Entity List FDP rule: Footnote 4. A foreign-produced item is subject to the EAR if it meets both the product scope in paragraph (e)(2)(i) of this section and the end-user scope in paragraph (e)(2)(ii) of this section.

The Military End User List (Supplement No. 7 to part 744 of the EAR) identifies foreign parties that are prohibited from receiving items described in Supplement No. 2 of Part 744 of the EAR unless the exporter secures a license.