US removes Sandvine from trade restriction list after corporate reforms

By Karen Freifeld and David Shepardson

NEW YORK/WASHINGTON (Reuters) -The United States removed Canada-based Sandvine from a trade restriction list after the networking equipment company made changes to its corporate governance and business practices to protect human rights, the U.S. Commerce Department said on Monday.

The U.S. had placed Sandvine on the list in February for supplying the Egyptian government with technology targeting human rights activists and dissidents.

Sandvine supplies what is known as deep packet inspection technology, which examines and manages network traffic.

The State Department said in February that Sandvine had supplied tools “used in mass web-monitoring and censorship to block news as well as in targeting political actors and human rights activists. This technology has been misused to inject commercial spyware into the devices of perceived critics and dissidents.”

Sandvine said on Monday that removal from the list “recognizes our commitment to transparency, ethical business practices, and the protection of digital rights,” adding that it “is transitioning to a model where its technology will only be sold in democratic countries.”

Over the past several months, the company has focused on servicing democracies committed to human rights, the Commerce Department said. It has exited 32 non-Democratic countries and is in the process of leaving 24 others. It is also monitoring the misuse of technology where it is still doing business, in addition to other reforms, Commerce said.

Once placed on the trade restriction list known as the Entity List, Sandvine could not receive U.S. goods and technology without a special license, which likely would be denied.

“Sandvine’s delisting is a clear example of how the Entity List may be used to shape corporate behavior in favor of human rights and digital safety,” Commerce official Matthew Borman said.

The department added six Chinese companies to the Entity List, including Beijing Moreget Creative Technology Co for acquiring U.S.-origin items related to aviation simulation technology in support of China’s military modernization.

Detail Technology and Shenzhen Jiachuang Weiye Technology were added for attempting to buy U.S-origin items for Iran’s weapons of mass destruction and unmanned aerial vehicle programs, the posting said.

The Chinese companies could not immediately be reached for comment.

The companies were among 26 entities added to the list, according to Monday’s posting. Besides the Chinese companies, one was added from Egypt, 16 from Pakistan and three from the United Arab Emirates.

Many of the Pakistani entities contributed to the country’s ballistic missile program, the department said. The Egyptian and UAE entities were added for acquiring U.S.-origin parts to evade U.S. restrictions on Russia after the 2022 invasion of Ukraine.