Commerce Blacklists Flight Schools for China Ties

The Commerce Department’s Bureau of Industry and Security (BIS)  added six companies to the Entity list Tuesday, four for their involvement in training Chinese military pilots in NATO tactics.

Global Training Solutions Limited and Smartech Future Limited, both of China, Grace Air (Pty) Ltd of South Africa, and Livingston Aerospace Ltd of the United Kingdom, were listed because of their links to the Test Flying Academy of South Africa, which was added to the Entity List on June 12, 2023.

The CEO of Livingstone Aerospace claims RAF experience in Lightning, Hawk, F-15, Hunter, Tornado & Typhoon platforms on his LinkedIn profile.

“Preventing American know-how from training PRC military pilots and U.S. technology from aiding Russia enhances U.S. national security,” said Assistant Secretary for Export Enforcement Matthew S. Axelrod.

BIS also added two entities, Mega Fast Cargo LLC, and Mega Technique General Trading, both under the destination of the UAE, to the Entity List because they repeatedly engaged in “dilatory or evasive conduct, including the provision of false, misleading, or incomplete information, during end-use checks.”   In addition, Mega Fast Cargo LLC has engaged in shipments of U.S.-origin commodities to Russia since Russia’s further invasion of Ukraine in February 2022.

A license requirement for all items subject to the EAR that are to be exported, re-exported, or transferred is now imposed on each of these entities. BIS will review license applications for these entities with a presumption of denial.

Also Adds 13 to Unverified List

BIS is also adding 13 persons to the Unverified List (UVL), under the following destinations: China, Peoples’ Republic of (China) (8), Cyprus (1), Kyrgyzstan (1), Türkiye (2), and the United Arab Emirates (UAE) (1).

The UVL contains the names and addresses of foreign persons who are or have been parties to a transaction, as described in § 748.5 of the EAR, involving the export, reexport, or transfer (in- country) of items subject to the EAR. These foreign persons are added to the UVL because BIS or Federal officials acting on BIS’s behalf were unable to verify their bona fides (i.e., legitimacy and reliability relating to the end use and end user of items subject to the EAR) through the completion of an end-use check.

This rule removes seven persons from the UVL because BIS was able to verify their bona fides.