WASHINGTON – The US Department of Commerce (DoC) has put seven Pakistanicompanies on a list of foreign entities for their alleged involvement inthe nuclear trade.
The Pakistani firms are among the 23 companies added to the Entity List ofthe Export Administration Regulations (EAR) which is prepared by Bureau ofIndustry and Security.
The list says the sanctioned companies are “reasonably believed to beinvolved or to pose a significant risk of being or becoming involved, inactivities contrary to the national security or foreign policy interests ofthe United States”
A Singaporean company, which is affiliated to a Pakistani company, and 15entities from South Sudan are among the additions, which were published inthe Federal Register on Thursday.
With this step, the companies are now subject to stringent export controlmeasures, which could bar them from taking part in international trade.
Three of the Pakistani firms have been sanctioned for “their involvement inthe proliferation of unsafeguarded nuclear activities that are contraryto the national security and/or foreign policy interests of the UnitedStates”.
The US department has accused two firms of purchasing supplies fornuclear-related entities already put on the list, whiletwo remaining companies have been sanctioned for allegedly acting as frontsfor listed entities.
These step would undermine Pakistan’s desire to become a member ofthe Nuclear Suppliers Group (NSG), a group of countries that can tradefissile materials and nuclear technologies. One of the main objectives ofthe NSG was to bar other countries form carrying out nuclear tests.
Pakistan applied for the NSG membership on May 19, 2016, after Indiastepped up efforts to get the position with the support of the UnitedStates and other western countries.
Pakistan, who has the support of China, Turkey and other countries, saysNSG should take non-discriminatory decisions to induct new members.
Besides supporting Pakistan, China and Turkey cited procedural issues ininducting new members which delayed India’s inclusion to the club.
Mushko Logistics Pvt. Ltd., Singapore, and Mushko Electronics Pvt. Ltd.,Pakistan, will be put on the list for procuring supplies for alreadysanctioned entities.
Solutions Engineering, Pakistan to be added to the list for violating USnational security and foreign policy interests.
Three of the Pakistani entities, Akhtar & Munir, Proficient Engineers andPervaiz Commercial Trading Co. (PCTC), be added based on their involvementin the proliferation of unsafeguarded nuclear activities.
One of the firm, Marine Systems Pvt. Ltd. to be listed for helpingPakistani entities in circumventing US-imposed restrictions. Remainingone company, Engineering and Commercial Services (ECS), to be put on thelist for its allegedly providing supplies to the Pakistan-basednuclear-related entity.
US Department of Commerce asserted that the imposition of sanctions wouldhelp prevent the violation of Export Administration Regulations (EAR) rules.
The placement on the list imposes a licence requirement for all itemssubject to the EAR and a licence review policy of presumption of denial.
The licence requirements apply to any transaction in which items are to beexported, re-exported, or transferred (in-country) to any of the entitiesor in which such entities act as purchaser, intermediate consignee,ultimate consignee, or end-user thus putting the hurdle in free operationof such entities.