The United States Department of Commerce’s Bureau of Industry and Security (BIS), formerly known as the Bureau of Export Administration, is responsible for administering and enforcing export controls on U.S. commercial products, software, and technology. BIS is also responsible for overseeing export controls on “dual-use” items that can be used in weapons of mass destruction applications, terrorist activities or human rights abuses.
In addition to enforcing the Export Administration Regulations (EAR), the Bureau of Industry and Security is responsible for issuing and administering restricted party lists that apply to export and re-export transactions for which the agency has jurisdiction.
In the event a company, entity or person on one of the following lists appears to match a potential party in an export transaction, additional due diligence is required before proceeding. Depending on which list the match was found, a match indicates either:
- there is a strict export prohibition
- a specific license requirement
- the presence of a “red flag”
Bureau of Industry and Security Restricted Parties Lists
1. Denied Persons List
A list of individuals and entities that have been denied export privileges for various reasons. Individuals and entities that have been denied export privileges. Any dealings with a party on this list that would violate the terms of its denial order are prohibited.
2. Unverified List
Individuals and entities the BIS has been unable to verify the end-user in prior transactions. Those on this list become a “Red Flag” and should be resolved before conducting any further business
3. Entity List
Foreign persons or entities subject to specific license requirements for the export/re-export or transfer of specified items.
Bureau of Industry and Security Mission:
Advance U.S. national security, foreign policy, and economic objectives by ensuring an effective export control and treaty compliance system and promoting continued U.S. strategic technology leadership. https://www.bis.doc.gov/index.php/2011-09-12-15-43-33
Guiding Principles of the Bureau of Industry and Security
This statement of principles represents the guiding philosophy of the Commerce Department’s Bureau of Industry and Security in approaching its activities and fulfilling its responsibilities. This statement is not intended to dictate any particular regulatory action or enforcement action.
The Bureau’s paramount concern is the security of the United States. The Bureau’s mission is to protect the security of the United States, which includes its national security, economic security, cyber security, and homeland security.
– The Bureau’s credibility – within government, with industry, and with the American people – depends upon its fidelity to this principle.
– For example, in the area of dual-use export controls, the Bureau will vigorously administer and enforce such controls to stem the proliferation of weapons of mass destruction and the means of delivering them, to halt the spread of weapons to terrorists or countries of concern, and to further important U.S. foreign policy objectives. Where there is credible evidence suggesting that the export of a dual-use item threatens U.S. security, the Bureau must act to combat that threat.
Protecting U.S. security includes not only supporting U.S. national defense, but also ensuring the health of the U.S. economy and the competitiveness of U.S. industry.
– The Bureau seeks to promote a strong and vibrant defense industrial base that can develop and provide technologies that will enable the United States to maintain its military superiority.
– The Bureau must take great care to ensure that its regulations do not impose unreasonable restrictions on legitimate international commercial activity that is necessary for the health of U.S. industry. In protecting U.S. security, the Bureau must avoid actions that compromise the international competitiveness of U.S. industry without any appreciable national security benefits.
The Bureau strives to work in partnership with the private sector. The Bureau will seek to fulfill its mission, where possible, through public-private partnerships and market-based solutions.
– U.S. security cannot be achieved without the active cooperation of the private sector, which today controls a greater share of critical U.S. resources than in the past. At the same time, the health of U.S. industry is dependent on U.S. security – of our borders, our critical infrastructures, and our computer networks.
– The symbiotic relationship between industry and security should be reflected in the formulation, application, and enforcement of Bureau rules and policies.