CBC FAQs - 4. Why should I check the Entity List?
You should check the Entity List because exports, reexports, and/or transfers (in-country) to those persons named on the Entity List are subject to licensing requirements and policies in addition to those elsewhere in the EAR. Failure to adhere to EAR licensing requirements is a violation of the EAR and could result in criminal and/or civil penalties. BIS recommends that exporters screen the parties to transactions against the Entity List as a standard part of pre-transaction due diligence activities.