Menu Home

CCMC General License 1 extended & clarified, plus 2 new FAQs

Communist Chinese Military Companies General License 1A replaces General License 1. It extends the deadline for being able to skip over non-exact matches until May 27th, and keeps the fact that you have to match the names in the NS-CCMC list – and even explicitly names the 4 names that are actually subsidiaries and shouldn’t really be there (CNOOC Limited, China Unicom, China Mobile, China Telecom, China Unicom) – at least according to public sources, they are subsidiaries, not trade names. Why OFAC doesn’t just designate them is beyond me…

Also, 2 new Frequently Asked Questions (FAQs):

878. What does General License 1A (GL 1A) authorize?

Answer

During the period that GL 1A is in effect, U.S. persons may, subject to the conditions in the general license, engage in transactions otherwise prohibited by E.O. 13959 involving covered securities of entities whose names closely match, but do not exactly match, the name of a Communist Chinese military company (CCMC) as defined by section 4(a) of E.O. 13959.  

GL 1A does not authorize transactions in covered securities of entities identified on OFAC’s Non-SDN Communist Chinese Military Companies List (NS-CCMC) List or otherwise identified by the Department of Defense pursuant to E.O. 13959.  

879. Does GL 1A authorize transactions with entities identified as subsidiaries of a Communist Chinese military company (CCMC)?

Answer

No.  GL 1A does not authorize any transactions involving covered securities of entities listed on OFAC’s Non-SDN Communist Chinese Military Companies List (NS-CCMC List) pursuant to section 4(a)(iii) of E.O. 13959 as a subsidiary of a person already determined to be a CCMC, including entities added to the NS-CCMC List on January 8, 2021 (i.e., CNOOC Limited, China Mobile Limited, China Telecom Corporation Limited, China Unicom (Hong Kong) Limited).  Pursuant to section 1(a)(ii) of E.O. 13959, prohibitions relevant to entities listed on the NS-CCMC List pursuant to section 4(a)(iii) take effect beginning 9:30 a.m. eastern time on the date that is 60 days after such listing.  Accordingly, the relevant prohibitions with respect to such entities added to the NS-CCMC List on January 8, 2021 (i.e., CNOOC Limited, China Mobile Limited, China Telecom Corporation Limited, China Unicom (Hong Kong) Limited) begin on March 9, 2021. 

Links:

OFAC Notice

General License 1A

FAQ 878, 879

Categories: Chinese Military Companies sanctions Frequently Asked Questions (FAQ) Guidance Licenses OFAC Updates

eric9to5

2 replies

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: