KUALA LUMPUR (Dec 17): The US Commerce Department’s Bureau of Industry and Security (BIS) is acting against entities operating in Malaysia, China, Georgia and Turkey for diverting or attempting to divert US items to Iran’s military programmes.

Malaysia’s Integrated Scientific Microwave Technology Sdn Bhd was on the list released by the BIS on Thursday (Dec 16).

An online search of the company showed its nature of business as "other telecommunications activities; research and development of other natural science and engineering; [as well as] export and import of a variety of goods without any particular specilisation".

However, the main target of the BIS appeared to be Chinese entities, with more than 30 named.

For the entities added to the Entity List in this final rule, the BIS imposes a licence requirement that applies to all items subject to the Export Administration Regulations (EAR).

In addition, no licence exceptions are available for exports, re-exports or transfers (in-country) to those added to the Entity List in this rule.

For all entities added to the Entity List, the BIS imposes a licence review policy of a presumption of denial.

US Secretary of Commerce Gina M Raimondo said the scientific pursuit of biotechnology and medical innovation can save lives.

"Unfortunately, China is choosing to use these technologies to pursue control over its people and its repression of members of ethnic and religious minority groups. 

"We cannot allow US commodities, technologies and software that support medical science and biotechnical innovation to be diverted towards uses contrary to US national security.

“The US will continue to stand strong against efforts by the PRC and Iran to turn tools that can help humanity prosper into implements that threaten global security and stability,” she said.

The BIS actions were taken under the authority of the Export Control Reform Act of 2018 and its implementing regulations, the EAR.

The Entity List is a tool utilised by the BIS to restrict the export, re-export and in-country transfer of items subject to the EAR to persons (individuals, organisations and companies) reasonably believed to be involved, have been involved or pose a significant risk of being or becoming involved in activities contrary to the national security or foreign policy interests of the US.