US BIS charges Coastal PVA over unlicensed Entity List exports
Export teams must license EAR99 sales involving Entity List parties
BIS
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US BIS charged Coastal PVA Technology with 18 alleged EAR violations for unlicensed exports to Entity List parties in China.
Why it matters
Entity List restrictions apply to any item subject to the EAR, including EAR99 goods. BIS alleges Coastal used China-based distributors while knowing the brushes were destined for listed semiconductor entities.
Implications
- — US exporters must screen end users behind distributor sales — EAR99 classification does not remove BIS licence obligations for Entity List transactions.
- — Export compliance teams must block China sales involving SMIC-linked Entity List parties unless BIS authorizes them — unlicensed shipments risk civil penalties and denial of export privileges.
- — Legal teams handling BIS charging letters must answer within 30 days of service — non-response can trigger default findings without a hearing.
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