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Pakistan has a nuclear program and a missile program that are subject to end-use and end-user restrictions pursuant to Part 744 of the Export Administration Regulations (EAR) (15 C.F.R. Parts 730-774).

Accordingly, this guidance highlights:

  1. 1.The supplemental licensing requirements applicable to exports, reexports, and transfers (in-country) of items subject to the EAR that may be destined to nuclear or missile activities; and
  2. 2.Best practices for screening customers in Pakistan to prevent diversion of items subject to the EAR to unauthorized end uses and end users.

EAR Overview

Persons (both U.S. and non-U.S. persons, including individuals, entities, corporations) engaged in exports, reexports, and transfers (in-country) subject to the EAR, must determine whether a license is required prior to proceeding with such transactions. In addition to Commerce Control List (CCL)-based licensing requirements determined by the export control classification number (ECCN) of your product(s) and their destination(s), you should review Part 744 (Control Policy: End-User and End-Use Based) and Part 746 (Embargoes and Other Special Controls) of the EAR.

The supplemental licensing requirements found in Part 744 of the EAR may apply to items designated “EAR99” (i.e., subject to the EAR but not listed on the CCL), as well as to CCL items not otherwise subject to a license requirement based on the country of destination. You must also follow the “Know Your Customer” Guidance in Supplement No. 3 to Part 732 of the EAR. To facilitate your compliance with Part 744 and Supplement No. 3 to Part 732 of the EAR, BIS is publishing this guidance.

Restrictions on Exports and Reexports to Certain Nuclear- and Missile-Related Activities

In 1992, BIS imposed end-use restrictions on items not specifically listed on the CCL when destined for certain missile-related activities in certain destinations, including Pakistan.[1] In 1998, Pakistan detonated a nuclear explosive device. In response, BIS imposed supplemental licensing requirements on certain entities in Pakistan determined to have been involved in nuclear or missile activities and added such entities to the Entity List (Supplement No. 4 to Part 744 of the EAR).[2] The Entity List imposes supplemental licensing requirements on foreign entities involved in activities contrary to U.S. national security and foreign policy.

Recently, BIS has added additional entities in Pakistan to the Entity List, such as: [3]

BIS has also added entities located in other countries to the Entity List, such as: [4]

Furthermore, BIS Office of Export Enforcement (OEE) investigations have revealed schemes to export items subject to the EAR to nuclear- and missile-related entities in Pakistan listed on the Entity List without the required licenses.[5]

In addition to the restrictions set forth in Section 744.11 of the EAR that apply to entities listed on the Entity List, any item subject to the EAR, whether or not subject to a CCL-based licensing requirement, may require a license if destined to certain nuclear- or missile-related activities. These end-use-based licensing requirements apply to items designated EAR99, as well as items listed on the CCL:

Due Diligence/Best Practices

To ensure compliance with these provisions of the EAR, in addition to screening customers against the U.S. Government’s Consolidated Screening List (CSL)[6], which includes BIS’s Entity List, exporters, reexporters, and transferors (in-country) of items subject to the EAR are also advised to conduct additional due diligence to identify and resolve red flags associated with transactions potentially destined to nuclear- or missile-related activities, in accordance with the “Know Your Customer” Guidance set forth in Supplement No. 3 to Part 732 of the EAR.

  1. oA new customer places an unexpected and/or high-value order for sophisticated equipment.
  2. oThe customer is a reseller or distributor. In such cases, you should always inquire who the end user is.
  3. oThe customer has no website or social media and is not listed in online business directories.
  4. oThe customer’s address is similar to an entity listed on the CSL, or the address indicates the customer is located close to end users of concern, including co-located with an entity listed on the Entity List.
  5. oYour customer places an order ex works and makes all shipping arrangements through a freight forwarding service. In such cases, request that the freight forwarder provide you a copy of the Electronic Export Information (EEI) filing to ensure the information is accurate.

  1. oBIS has identified a number of items subject to the EAR but not listed on the CCL (EAR99 items), or listed on the CCL but controlled only for Antiterrorism reasons, which have been sought by nuclear- or missile (including UAV)-related entities, including certain:

  1. oFor example, the Entity List entry for the Pakistan Atomic Energy Commission (PAEC) extends to all nuclear reactors, including power plants. Although they are not specifically identified on the Entity List, PAEC operates two nuclear power plants that are subject to Entity List licensing requirements.

  1. oAlthough the terms of a LoC may require transportation documents, such as air waybills and bills of lading, to list the issuing financial institution in the “ship to” or “consign to” field, the financial institution should not be listed as the ultimate consignee on an EEI filing unless it is located abroad and actually receives the export.
  2. oThe party located abroad that actually receives the goods, often listed as the “notify party” under the terms of a LoC, should be reported as the ultimate consignee pursuant to 15 C.F.R. Sections 30.1(c) and 30.6(a)(3).

If you are unable to resolve any red flags identified in a prospective export, reexport, or transfer (in-country), you should either refrain from participating in the transaction, submit a license application, or submit an advisory opinion request to BIS. License applications can be filed via SNAP-R (https://snapr.bis.doc.gov) and advisory opinions can be requested by using the online form on the BIS Website (https://www.bis.doc.gov/index.php/component/rsform/form/22-contact-the-regulatory-policy-division?task=forms.edit). To report suspicious purchase inquiries to BIS, contact your local OEE Field Office (https://www.bis.doc.gov/index.php.enforcement/oee/investigations), or contact the BIS Enforcement Hotline at 1-800-424-2980 or by using the form on the BIS Website (https://www.bis.doc.gov/index.php/component/rsform/form/14-reporting-violations-form?task=forms.edit).



[1] 57 Federal Register 26773 (June 16, 1992)

[2] 63 Federal Register 64322 (November 19, 1998)

[3] 83 Federal Register 12475 (March 22, 2018)

[4] 83 Federal Register 44821 (September 4, 2018)

[5] https://www.bis.doc.gov/index.php/documents/enforcement/1005-don-t-let-this-happen-to-you-1/file

[6] https://www.export.gov/consolidated_screening_list